How to Risk-Adjust Your Retirement Portfolio

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 secure your IRA by including tangible investment assets like precious metals. Diversifying your portfolio with time-tested investments like gold and silver is actually a very simple process. As one of the most unique precious metals investment products on the market, the PMC Ounce™ has gotten a lot of attention. But were you aware that it could also be added to a self-directed IRA?

The PMC Ounce™ is a diversified, weighted, and patented physical precious metals investment asset. Each PMC Ounce™ consists of a fixed fractional quantity of gold, silver, platinum, and palladium backed 100% by physical bullion. 

One requirement of storing precious metals in an IRA is that assets have to be stored, and the bullion backing every PMC Ounce™ is IRA-approved and consists entirely of LBMA-approved bars.

Gains for the PMC Ounce™ have shown to be better than the gains of gold and silver alone.

Furthermore, there are no derivatives or securitized instruments either within the vaulted and insured inventory for the PMC Ounce™ or between the individual investor and the underlying assets. Therefore, it is free of the counter-party risk associated with exchange traded products or funds (ETPs or ETFs). 

Here are some of the benefits of this investment…

1. Weighted and Diversified: Each PMC Ounce™ provides a turn-key, diversified physical precious metal “portfolio” that is logically weighted based on the specific attributes associated with each metal type.
2. Blended Return: The price movement of the PMC Ounce™ is directly correlated to the live market price changes of its component metals, thereby delivering a blended return in real-time. The composition of the PMC Ounce™ eliminates the need to attempt to market-time the trading of a broad precious metals portfolio.
3. Volatility Control: Gold, silver, platinum, and palladium do not move in lock-step. Therefore, the diversified and blended return for the PMC Ounce™ tempers the higher volatility associated with investment positions consisting of just one or two bullion types.
4. Secure and Insured Storage: The inventory for the PMC Ounce™ is secured with the insured vaults of a non-bank bullion depository.
5. Real-time Trading: The PMC Ounce™ trades in real-time, and its price is directly calculated by the real-time price of each of the component metals.
6. Liquid Asset: The PMC Ounce™ is liquid, meaning that investors in this dynamic asset are just a phone call away from executing a buy or sell order.
7. Convertible for Delivery: The PMC Ounce™ offers a simple and easy convertibility and delivery option.

While not every self-directed IRA custodian is able to include the PMC Ounce™, leading IRA administrators Camaplan and New Direction Trust Company have both partnered with the creator of the PMC Ounce™. There’s no better time than now to start thinking about your future and structuring your IRA to provide risk-adjusted returns for a long, happy, and healthy retirement.