When most people start to invest for their retirement, they go straight to a financial advisor. This usually ends up with their entire portfolio in both stocks & bonds, and US dollar-based assets. The issue with this is, both of these asset classes are heavily tied to the current government climate as well as stock volatility, leaving no room for diversification into more stable asset classes. The biggest problem, though, is that even if their investments are headed downhill, the financial advisor who the client trusts is most likely not going to fill them in on this. Why? Because if they do, the client will be educated enough to take their money out of the advisor’s control, and into something else that will provide them with a bigger benefit. Below we dive deeper into what precious metal investments and Gold Investment Companies offer that traditional investments don’t.
As noted above, most people don’t diversify their portfolio with precious metals, even though they are the oldest holder of value. Even the US dollar was once backed by gold, but since the government needed more money and didn’t have enough gold to back it, they decided to part ways with the best thing that happened to our currency system- the gold standard. Gold, silver, and palladium all hold their value and are a great way to diversify what was once a portfolio completely dependent on the state of the country. You can do this with a company like American Hartford Gold that offers both physical metals and gold IRAs. We recommend diversifying with both precious metals as well as real estate if possible; both of these options with Gold Investment Companies will be a great way to save the value of your money.
Hedge Against Inflation- Gold Investment Companies
15 years ago, none of us could have imagined how much out-of-control money printing would be going on in this day and age. The debt our country has decided to take on affects us all, but most heavily affects those looking to retire in the coming years. No matter your political lean, it’s clear we don’t want debt, and it’s clear it’s going to heavily affect the money we hold in our retirement accounts. If you want to stray from this disaster currently being placed on US citizens, you need a solid hedge against inflation. Getting some of your assets out of fiat currency and into something that holds real value is the best way to do so. This way, when other countries realize our dollar is worth nothing, you’ll have real wealth stored in the form of precious metals, like gold.
Separation From Political Climate
This one goes hand in hand with the point above, but it’s clear that the political climate of our country is extremely shaky. Laws attempting to get passed left and right to increase the country’s debt, taking on other country’s problems, and doing everything besides looking out for our own citizens seems to be the forefront goal of the politicians in power. Adding separation between your retirement and the mess being created by the people in power is a smart move – how can you do this you ask? By turning towards the longest-standing asset class of all time: gold. There is only a finite amount of gold in the world, and no printing machine can change that.
Guard Against Stock Volatility
If you look back to 2008, the soon-to-be retirees were in shambles. $15k of their IRA lost in days; do you think their financial advisors warned them of this or was it sprung on them by surprise? Unfortunately, it was the latter. Regardless of the money you’re making now, if the volatility of the stock market wakes up again, your retirement stored in a traditional IRA or 401k is going to be at stake.
In conclusion, there has never been a better time than now to protect your retirement against the evils of inflation, lack of diversification, and stock market volatility. If you’re looking for a good hedge to save the value of your hard work, precious metals such as gold is a great place to start. Whether you’re turning towards physical gold or a gold IRA, do your own research and make a note of why exactly you feel compelled to make this decision. You need to educate yourself on this because no one else has your best interests in mind as much as you do.