“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” —Suze Orman, American financial advisor, and author
You lived through disco. You lived through shoulder pads. You lived through AOL, Y2K, and 5G.
In short, you have been there and done that. With those years comes wisdom. After all, you got to where you are by being smart, making good decisions—and even learning from the not-so-good decisions. (What were we thinking when we bought that ThighMaster?)
Now that retirement is on the horizon, it’s important to look at your accounts and consider the opportunities that exist to maximize their value. By investing in precious metals, you can make your retirement life your best life.
Owning physical precious metals inside an IRA is an excellent way to preserve and potentially even grow your retirement wealth. There are many ways to build your portfolio, and the dividends not only will help you maintain your lifestyle, but you can create a financial legacy to pass on after you pass on.
Precious metals are a wise—and profitable—way to diversify. Best of all, because you can determine what kinds of metals you want to invest in, you will have complete control and can create the outcome—and future—you’ve envisioned.
“Doing the best at this moment puts you in the best place for the next moment.” —Oprah Winfrey
Learn more about the different types of metals and how they add up—and how they can maximize your portfolio.
When it comes to precious metal investing, gold is almost a no-brainer. It’s the best-known precious metal and has a storied history of holding significant value. Gold not only tends to be a good hedge against economic downturns, but it also holds its value well even during bull markets. While gold can rise and fall, as history has shown, it’s proven to be quite stable. As mentioned, gold’s all-time high of $1,913 was in 2011, and even now, it’s hovering close to $1,650.
Like gold, silver has been used as currency throughout history. Although it’s widely used in the jewelry industry, silver is present in many other industries. Silver is used extensively in electronics and is a key component in producing solar energy, which is a rapidly growing industry today. This means, then, that, unlike gold, for the most part, silver is a consumable metal in addition to being an investment metal.
Platinum is a beautiful metal, widely used in jewelry and in the automotive industry in the manufacturing of catalytic converters. While platinum has been historically more expensive than gold, it hasn’t quite out-performed gold in recent years, making it more affordable to buy into these days. Platinum isn’t quite as popular as an investment metal as gold or silver, which has an interesting benefit in that platinum’s prices tend to be more stable under any economic conditions. It still fluctuates and it’s still a great way to grow a portfolio, yet it can also be a great way to preserve wealth in a very stable and long-term asset.
Very similar to platinum, palladium is used in the automotive industry as well as in jewelry. The demand for palladium is growing beyond the market’s ability to keep up. In 2017, the total palladium supply was calculated to be about 9.2 million ounces. The demand last year was estimated to be 9.4 million ounces. This is a great position to be in as an investor. Many precious metals investors buy this metal as a way to further diversify their metals portfolio.
“I believe in the American dream.” —Jeanine Pirro, American television host, and author
Looking back, it’s easy to say, “I should have invested more over the years.” However, it’s never too late to invest in precious metals! Whatever your financial situation or current work and life issues, there is never a bad time to begin more actively investing for your financial future.
Consider the following scenarios:
In May 2009, at age 50, Joan had a self-directed IRA (SDIRA)—with a value of $250,000. She converted $75,000 to silver at $15/ounce and each month continued to contribute $750 to her SDIRA.
Within five years, the price of silver had shot up to $45, bringing the silver value to $225,000 and the value of her SDIRA to $314,000. She wisely sold off her silver and added that back to the SDIRA for a total value of $540,000. She kept contributing just as before and will continue to do so until 2029.
By the time she is 70, just from this one move, her SDIRA has a potential value of more than $2 million! Just because she started where she was and made smart decisions to increase her investing allotment and to become an active investor when the opportunity presented itself.
Mike and Madeline are 50. They have an SDIRA worth $125,000 and 20 years left to let it grow before the required minimum distributions begin. They will continue to add $1,200 every year, but they also need something that can make large leaps in value over a short time frame but also provide them with some security.
One solution is for them to buy $5,000 in metals. The best outcome would exceed more than $1 million, assuming there is a positive stock market gain each year. If gold or silver prices continue to appreciate 20% per year, that alone would contribute $192,000 – far exceeding that initial amount they began within the IRA twenty years earlier.
A self-directed IRA (SDIRA) is a retirement account that can hold a variety of individual investments normally prohibited by regular IRAs.
A Gold IRA can help protect you against inflation, taxes, and economic uncertainty.
In fact, if you already have a 401(k) or IRA, it’s easy to convert it into physical gold and silver without any tax consequences.
To help you understand how this process works — and the potential financial benefits — we’ve put together #1 Playbook: Strategies For Protecting Your Wealth
Inside you’ll discover:
This article was sponsored by Red Rock Secured. The investments and services discussed in this article may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor.