Building Your Retirement Safety Net

It is typical for younger investors to hold riskier portfolios than older investors because the young typically rely more on income and less on financial wealth to support their consumption. During the accumulation stage of the portfolio, investors tend to take on riskier asset classes for the profit potential. 

However, portfolio planning needs to account for the future consumption needs of the individual, taking into account not just their current consumption and income, but also to accommodate for how their lifestyle needs will change as they age.

As you transition your portfolio in preparation of retirement, a.k.a. the “consumption stage”, the emphasis shifts to more secure asset classes.  Towards early middle age, asset holdings tend to increase rapidly as investors save for retirement, while current labor income flattens out. To prepare for your retirement lifestyle, the key is to organize your portfolio in favor of risk-adjusted returns.

You can help to build your retirement safety net by including tangible investment assets like precious metals.

To learn more about opening a precious metals IRA, please give us a call at 1-800-831-0007 or email us.

Diversifying your portfolio with time-tested investments like gold and silver is actually a very simple process.

By allocating a share of your retirement savings to physical metals, you can enhance financial resilience and better safeguard your purchasing power as you move toward retirement.

Why Gold is Especially Prescient for Retirement
Gold, when combined with other asset classes, can be a valuable component of a diversified retirement portfolio.

However, it is recommended as a supplemental asset (typically about 10% of net worth), since gold does not tend to be a large income generator. Although, Morgan Stanley recently updated their asset allocation recommendations to 60% stocks/20% bonds/20% gold based on gold's tremendous market performance in recent years.

Right now, during a bull market, is a great time to take advantage of the profit potential in gold. However, long term—as in over the course of decades—gold is best utilized as a store of value.

What gold does best in a portfolio is offer protection to the wealth you have accumulated:

• Inflation hedge - Gold's price often rises when the value of paper currency drops, helping to preserve purchasing power.
• Diversification - Gold and silver prices tend to move independently (low correlation) of stocks and bonds, which helps balance risk and can stabilize a portfolio during economic downturns.
• Safe haven - During geopolitical turmoil or financial crises, investors often flock to gold as a tangible, safe-haven asset, which can help protect wealth.
• Liquidity - Gold is a globally accepted and highly liquid asset, meaning it can generally be converted to cash relatively easily when needed.

Ready to Get Started?
Whether your retirement years are quickly approaching or decades away, it’s never too late or too early to build the safety net of precious metals with your retirement portfolio.

One way to do this is with a self-directed IRA.

Since the financial crisis of 2008, gold IRAs have become more common. At the time, faith in traditional retirement plans was shaken. Rather than putting all of their eggs in one basket, more American investors wanted to find ways to diversify their holdings so a stock market crash or real estate bubble bursting won't decimate their savings.

Gold's shining performance in the last bull market resulted in a boom of brokerage firms more willing to specialize in helping investors utilize alternative assets to meet their retirement savings goals.

With so many great options from which to choose for the management of your precious metals IRA, there’s nothing standing in the way of getting exactly what you want from your IRA.

Building a financially protected future starts now...

To learn more about opening a precious metals IRA, please give us a call at 1-800-831-0007 or email us.

P.S. If you have an IRA, don't forget to take your RMD! We're here to help, but clients who need to take RMD's must start the process immediately to complete by year-end!