Retirement planning is a complex process, and there isn’t one single, right strategy for guaranteed retirement success. Gold is an attractive asset to throw into the mix, and the closer you get to retirement, the more important having a hard asset with gold’s qualities will be.
There is a wide range of opinions when it comes to how much gold you should own by retirement. Between 5 to 20% of your portfolio could reasonably be invested in precious metals, depending on its size, your growth needs, your age, and how close to your retirement you are. There are some great reasons why gold should absolutely be part of your retirement savings, and if it isn’t already, find out where to buy gold online and make it part of your portfolio now.
High Liquidity
For an investment asset, it is highly liquid, possibly second only to cash. No commodity, besides maybe silver, enjoys the liquidity of gold. One of the problems with over-exposure to stocks or real estate is trying to sell it. If the market is bad, you may have to wait a long time to sell or you may be forced to sell at a steep loss. By comparison, gold is as close to money as you can get without taking on the risk of paper currency. There’s always a market for bullion.
Low-Risk Funds
The closer you get to retirement, the lower your risk tolerance. Stocks are some of the highest-risk investments you can get. They provide the highest growth rates, but could correct or crash at any time. When you want to retire, you need your assets to be worth what you were planning them to be worth. Gold provides stability of value, allowing you to draw on your assets when you need them.
Protect Against Inflation
If low-risk and high liquidity are important, why not keep your retirement savings in cash? Inflation will erode the purchasing power of your savings. Your retirement could last 20-30 years or even longer. At an average 2% inflation per year, your savings would lose 54% of their purchasing power over 20 years.
Gold prices rise against inflation. Investors regularly use the metal to avoid the erosion of value of paper currency, without taking on the risks of the stock market.
Leave an Inheritance
Many parents don’t just want to retire comfortably, they also want to leave something to their children and grandchildren. An inheritance may not be something you want to risk on the stock markets or committed in bonds, especially since they will have to pay an inheritance tax, even if you bought the investments as part of a retirement savings plan.
Leaving gold coins allows your family to decide what’s best for them. When you inherit gold, you may want to keep it or sell it, depending on whether you:
- Already have retirement savings and want to keep bullion
- Want to re-invest the money in stocks and more diverse investments
- Use the proceeds to become debt-free
- Use the proceeds to create an emergency fund
Gold coins and bars can help you retire comfortably and confidently. Prepare today with bullion investments.
Leave a Reply