How to Plan for Retirement with Gold Investing

19 Jun
plan for retirement with gold investing

How to Plan for Retirement with Gold Investing

You’ve probably heard the old adage, “Don’t put all your eggs in one basket.” Its meaning is simple but universally true: Putting all of your resources into one place can be disastrous.

This advice is especially true for retirement, where your post-career livelihood depends on what you stow away today. In 2008, the nation lost almost $3 trillion in IRAs and 401k accounts in the wake of the housing market collapse and ensuing financial crisis. Many of these accounts never fully recovered the losses.

Some financial experts are predicting a coming financial crisis in 2020. As national debt continues to soar, and the budget deficit approaches all-time highs, there is no easy remedy in sight.

Gold as Wealth Insurance – The Importance of a Diverse Portfolio

Instead of staying glued to each and every uptick and downtick of the market, preparing for a rainy day is the best defense against a retirement disaster. That’s why investors are diversifying their portfolios with gold and silver as a form of wealth insurance.

History proves that gold has been an effective hedge against inflation. As a general trend, rising gold prices are correlated with market crashes and bubble bursts. For this reason, gold is a powerful asset for your retirement portfolio.

If an investor put $1000 into physical gold in the year 2000, he’d get 3.7 ounces. Today, that gold would be worth somewhere around $4,720. If that same investor put $1000 into a standard portfolio on the stock market, he would have somewhere around $1,107, with a 10.7% return on investment.

During the Dot-Com Bubble and the Great Recession of 2008, the value of gold shot up, while the market yielded meager returns. The markets can be unpredictable, and gold in your diversified portfolios allows you to stave off financial catastrophe.

Audit your Financial Situation

Retirement is more expensive than you think. Some financial advisors recommend allocating 70% of your income before retirement to maintain your standard of living, while others say that may not be enough.

These days, depending on a pension or social security for your retirement just doesn’t cut it. You need to look over the complete picture of your finances and perform an audit to accurately plan for retirement. A few things to consider:

  • Health care costs are increasing. The average annual healthcare cost per person in 2017 is $10,739,  compared to $146 per person in 1960.
  • Life expectancy is increasing. The current average lifespan for men and women is 76 and 81, respectively. The life expectancy for men and women in 1960 was 66 and 73, respectively. This means you spend more years in retirement and need a bigger nest egg.
  • Around 60% of American adults have an expensive, chronic condition, such as diabetes or heart disease.

When you perform an audit of your financial situation, factor in as many variables as you possibly can. This includes:

  • Expected Social Security payments
  • Money in your IRA/401k
  • Projected cost of living
  • Debt (Medical, credit cards, loans, etc.)
  • Savings account
  • Whether or not you plan to downsize in retirement
  • All sources of active and passive income

If the auditing step of your retirement planning is a bit of a wakeup call, you’re not alone. 42% of Americans have less than $10,000 saved for retirement, which is certainly a bleak outlook. If you have more money than that, consider the possibility of a market crash, or a global downturn.

A crisis may decimate the value of your traditional investments, and gold may be the ultimate contingency. Gold and precious metals have survived and thrived during numerous financial emergencies. Wise investors diversify their portfolios to protect their nest egg from a volatile market and a chaotic world.

Invest in gold and precious metals for your retirement

There are two different types of gold coins that investors can diversify a portfolio with: bullion or investment-grade. Bullion coins, which are available in denominations as small as 1/10 of an ounce, can be conveniently stored privately or by a third-party.

Investment-grade certified coins share bullion’s storage and denominational flexibility, but investment-grade gold coins are traded on an additional market than those fixed solely to the spot price of gold.

Make your IRA or 401k eligible for gold

A gold or silver IRA is one method many investors take as a means of diversifying a portfolio. However not every IRA or 401k is eligible for transfer of gold or precious metals. In fact, many traditional IRAs don’t allow investment of gold or precious metals. Please reach out to us to see if your retirement account qualifies, and advice for moving forward.

Are you prepared for a crisis?

Is your retirement protected against the unpredictable risks of the market and volatile currency?

If you haven’t yet planned for your retirement, or have no contingencies built into your portfolio for an economic catastrophe, it’s never too late to start.

Gold and precious metals provide peace of mind for retirees. As the financial outlook grows increasingly precarious, investors are putting more money into precious metals as a form of wealth insurance, and a hedge against inflation. If you’re looking to protect your money and retirement, there may be no better choice than gold in your IRA. For advice on investing in gold and precious metals, and to see if your current IRA or 401k qualifies for gold investment, reach out to us today. Republic Monetary Exchange can help you strategize a strong retirement for troubled times.