Hardworking Americans are doing everything they can to prepare for retirement and to achieve that, they cannot gamble with their savings. You need a solid and diversified retirement plan, one that will last throughout your retirement and leave something for your family.
Young investors can afford to gamble with riskier investment strategies, but as they come closer to retirement age, secure investments should be prioritized. Historically, cash savings have been destroyed by inflation, and several leading economists agree the stock market is long overdue for a crash. The markets have seen an unsustainable amount of growth and volatility in the last few years – the same thing that happened before the 2008 Financial Crisis, the Dot-Com Crash of 2000, and even the Great Depression in 1929. After the 2000 crash, the market took 8 years to recover, which was immediately followed by another crash which took it over 6 years to recover from.
Most financial experts agree that the safest investments are bonds, real estate, and precious metals like gold, silver, and platinum. Diversity is important, but of these three, we believe precious metals provide the best balance between liquidity and asset performance.
Gold is a unique asset that has stood the test of time. It has held value since the Ancient Egyptians, over 5,000 years ago. It has outlasted countless empires and currencies. Today, its value lies in the fact that it is a mainstream asset - it is an essential component of electronics and jewelry produced around the world. Its value is not simply based on speculation.
Gold may be the perfect way to safeguard your wealth. It is an excellent diversifier. This is because the price of gold has historically had an inverse relationship with the U.S. dollar. Normally, when the paper-dollar-backed-stock market crashes and the government prints more money, the price of gold goes up. Adding gold to your investment portfolio can as much as double your risk-adjusted returns.
Gold is highly liquid. Other investments with relatively low risk, like bonds, CDs, and real estate are notoriously illiquid. This means if you need your money quickly you could end up paying a significant portion of it in fees if you can even get it at all. Gold is one of the most traded assets in the world and historically it has been quick and easy to exchange gold for cash.
Finally, central banks and governments all around the world are invested in gold. Alan Greenspan, the former Federal Reserve Chairman has said, “Gold still represents the ultimate form of payment in the world. Fiat money in extremis is accepted by nobody. Gold is always accepted.“ Why would you not invest in gold?
Precious Metals IRAs are now available and make it easier than ever for you to diversify your savings and help safeguard your retirement portfolio.
Savings and investment mistakes that individuals make end up having an adverse effect on their retirement goals. It’s important that investors, regardless of their age, have an investment plan aimed towards retirement, and it’s vital to reach out to a financial expert or investment broker who can professionally create an investment portfolio. For instance, considering the fluctuating value of the dollar and the condition of a cyclical economy, converting a portion of a 401k or a typical IRA into a Precious Metals IRA is an excellent retirement strategy. For many years now, gold has been considered more stable and reliable than investing in the dollar. Therefore, it’s wise to be prudent and consider investing a specific part of your portfolio in gold and other precious metals to have a reliable financial future.
Not only is gold a tangible and liquid asset with a value that has no counter party or credit risk, but gold has also been a store of wealth for thousands of years. Gold can protect you against inflation and currency devaluation.
As a globally recognized currency, gold can be readily converted into cash. Gold’s value has been viewed as a way to pass on and preserve wealth from generation to generation.
By adding physical precious metals to your IRA, you lower your overall portfolio risk by diversifying your assets. Gold offers protection from future market corrections as well as opportunity for gains in the face of inflation and a depreciating US dollar.