Investing In Gold As Part Of Retirement Plan

It has been hundreds of years since people have realized the importance, and value of gold around the world. As it is a component in several industries, the demand for gold has actually increased with the passage of time. Now it is also considered a good store of value with more, and more investors opting for gold. This option is worth considering for anyone who is retiring.

The recession and economic downturn have de-motivated the investors; everyone is doubtful about making any investment. However, gold has maintained and even increased its value during this recession period. It is the least affected, and recession-proof investment for retired people, who can maintain a stable, and wealthy living conditions in their old age.

The stock market did collapse, and many big investors dropped from billions to pennies. Any person, near to retirement, is now frightened to make any investment in the stock market. On the other hand, the prices of commodities are rising day by day, and inflation rates are likely to go higher.

Gold is the wisest investment now for the people, especially for retired people who do not have many options to try. Any quantity of gold can contribute to a good saving at the end of the year. Gold bullion value rarely depreciates and makes it an ideal choice for the masses.

All precious metals, including gold, are very smart choices of investment, as they bring a measure of stability to the investment of an individual, or retirement plan. It brings a degree of security to the plan. Other avenues of investment like mutual funds, stocks, and bank deposits are not recommended, as they may deteriorate in value with the changing rates of interest. This is the reason why gold is considered valuable by all as it only increases in its worth with time.

The security, protection, stability, and profitable value of gold cannot be challenged by anyone, even today when prices are increasing. Currencies such as the US Dollar and Pound Sterling may depreciate, but gold never does. Investment into gold is a part of the contingency plan of many investors, and especially those looking forward to retirement.

Different ways by which, you can add gold to your retirement investments are as follows; Gold coins and bullion can be bought from a dealer, but for this, you must have an arrangement of a safe place. You can buy shares of an exchange-traded fund, or you can own individual gold mining stocks. Investing in precious metals mutual or exchange-traded funds is also an option for investing gold. Finally, you can invest in commodities funds, as part of your overall asset allocation strategy.

Those people who invest in gold do not turn all of their wealth or life savings into gold stocks; they simply do it as part of their plan to safeguard their assets to have a lucrative income in the future. This can only be accomplished if a sensible retirement plan has been designed. The fluctuations in the market can never be predicted. Whenever the market looks to be in a position where the demand would increase, the smart investors start to invest. In simple terms, investment in gold is a secure move that is likely to get for you a steady flow of profits in the future.

College Savings vs. Retirement Savings

If you’re like most families and have limited financial resources, should you put your money toward your child’s college education or your retirement savings?

Although it can be nerve-racking to make that choice, while you can borrow money for college, you’re on your own when it comes to retirement. Here are a few reasons why parents should consider saving for retirement before saving for their children’s college costs:

  • Parents have to think of college and retirement as two competing needs for their money. You can’t think about one without the other.
  • Saving for college is optional, but saving for retirement is not. There is no such thing as a college loan for retirement. You can borrow for college—your kid can borrow for college—and they have a whole life to pay it off.
  • Talk to your kids early on so they know what their responsibilities are. No one likes surprises.
  • If you’ve already promised your child a college education, revisit the conversation. Explain the things they can do to help out, including earning scholarship-worthy grades or going to a state school instead of a private one. Also, young adults would probably prefer to finance their college education themselves rather than having to support you during your retirement.
  • People value things more when they pay for them — so you’re doing your children a favor by giving them the responsibility of paying for college. You are teaching them responsibility and the value of that education and a dollar.
  • If you still can’t wrap your mind around it or feel too guilty not paying for college, save for retirement while your children are young. Then, when they reach college age, put the brakes on for a bit and start giving them some money.

Now, we are not saying that you should not give your kids any money. Grades are important, and you want them to worry more about reaching for a high GPA then making minimum wage at Burger Barn. If you have a good retirement savings plan, then you can probably help them out during college years without sacrificing your golden years. Just use some common sense.

Retirement Savings Planning

Most people look forward to retirement. After years of hard work, you’ll finally have time to take that cruise or those golf lessons. You can travel across the country or volunteer for a cause that interests you. Of course, these things cost money.

Here are some vital steps you need to take to secure your financial future:

  • Invest in tax-deferred vehicles, like a Roth IRA, traditional IRA, or 401k. Keep in mind that this is just an account—you then have to take that money and invest it in the market.
  • We recommend something we call the 15 percent solution. You ought to be saving at least 15 percent of your salary every year. Don’t let that scare you, though, as the 15 percent includes employer matches. Depending on how much your employer contributes to your 401k, you could be pulling as little as 7 percent out of your pocket.
  • Take into consideration when you started saving. If you start saving when you’re ten years away from retirement and can put in more than 15 percent of your salary, do so to play catch-up.
  • Look into life-cycle funds, which will take your money and make investments based on how much time you have left before retirement. The closer you get to that date, the less risky your investments will be.
  • Look at online calculators to help you come up with your magic numbers.
  • The key to making your money last is the amount you withdraw the first year. Set yourself up so that in the year you start withdrawing, you take out 4 percent. Then, every year after, multiply the previous year’s withdrawal by 1.03 to keep up with inflation.