What Is Retirement Like Nowadays?
If you think about it, retirement is a blessing in a place like the United States of America. Income inequality is so vast that people are often working until they are much older than the oft-advertised retirement age of 65. In fact, more young people are living at home for much longer (well into their 40s) and therefore they are relying on their parents for income and support. Therefore, when you retire, investing your money wisely is going to be a critical decision to make as you get older.
Is our potential Social Security check drying up in America? There has been a lot of fierce debate about the possibility of future generations not having access to any of the money that people have paid into since the 1940s. If you are wondering if there is any real security remaining in Social Security, then you might want to think about possibly investing your 401K in such a way that you enjoy the dividends and earnings from your investment over the course of the rest of your lifetime. Click here to learn more about the various forms of investing that exist in general.
Many Americans in younger generations have put off having children because the cost of child-rearing is prohibitive in a country with such vast income inequality. Thus, for our birth rate to not decline completely, the solution is not to ban a woman’s right to choose, but it should be to make sure childcare is affordable. If we focus on our finances, we can take the path to financial freedom through entrepreneurship by investing our 401k accounts wisely. If you do not consider this a method of entrepreneurship, you should consider the fact that investing your own money is going to take some of your own agency and ingenuity.
A traditional IRA used to be enough. In fact, when the Roth IRA was introduced (named for the Congressman who got it through the red tape of the United States government), it was considered a massive step forward for the average investor. Nowadays, however, with minimum wage not budging for over three decades, investors are forced to take their 401K money into their own hands to make calculated and considered decisions about where they want their retirement funds to go. It is no longer enough to simply hand your money over to a professional investor and hope that they will handle your portfolio with care and consideration.
Therefore, one might carefully ponder a variety of investment vehicles for retirement. And because so many people are delaying retirement these days, you will likely have more time on the clock to achieve your goals than you initially realized. Before you cash in your last few paychecks and take great risks with your money, stop yourself and imagine a life full of investment success. Some may argue that such a successful lifestyle can only be achieved by cashing in your pension and taking the first flight to Las Vegas, and gambling to achieve financial freedom. Please do not take that risk and instead consider investing your 401K into precious metals!
Why Do People Love Gold?
Gold is a precious metal that many people are already invested in. As a child, you likely got a pair of earrings or a bracelet that began your journey with gold without even realizing it. And why gold over other forms of currency or specie? Well, silver does not always retain its value due to more volatile market fluctuations. Platinum is prohibitively expensive in many markets, as it is often laden with precious gems embedded into its bands. Palladium is primarily going to be used in industrial operations, and therefore it is very difficult to get access to the palladium market as a regular investor behind a computer screen.
Gold is the most accessible of these metals, and therefore when we think about the opportunity to engage in a 401k rollover to gold, it is worth our mindful consideration. Your grandmother and great-grandmother were likely to have retained much of their wealth in gold over the years. In fact, you should trust the investments your grandmother would have trusted. Have you ever heard the saying, “If your great-grandmother would not recognize an item as food, you probably should not eat it?” Many people stick to a similar theory when searching for investment products, which is why lots of retirees end up focusing on increasing their holdings in gold.
Gold is an alloy that is recognized across cultures and countries. The euro and the American dollar and the British pound may or may not retain their value and may not be accepted everywhere. Gold, however, is a strong market to place your 401k investments into. This is because since every world culture knows and accepts gold as valuable specie, you can easily convert the alloy to any currency you can possibly imagine. When you arrive at your well-deserved retirement, there is a strong likelihood that you will be proud of yourself for maintaining your 401k well enough to invest in physical gold when you get the chance.
Many people are quite agnostic to their beliefs that their local currency will always remain in their lives. Be that as it may, currencies sometimes completely fail. Just because we have not experienced the bottom falling out of currencies in some of the wealthier countries on earth does not mean that they will always remain in relative positions of financial power. You can ask people from various countries like Italy, Greece and Mali that were once financial powerhouses recognized the world over. Some people sweat profusely at the mere thought of their currencies going the way of older specie that did not retain its value in the twentieth century.
Why Should You Consider Gold?
Some investors liken their inability to move towards new types of investment products to a form of sleep paralysis, with their bodies almost mummified and unable to move away from investing in currencies instead of physical precious metals. This happens because they are spooked by television advertisements arguing that the price of gold is fixed or static, depending on what some companies are trying to achieve with their holdings. When we reexamine the behavior of some of the strongest individual investors in the world, however, we find that they diversified their holdings such that physical specie always retains a place in their portfolios.
Some are deeply intimidated by the idea of investing in a physical metal, precious or otherwise. They might think, how do I know I can trust that this item is authentic? Where do I get my items authenticated properly so I know I am investing sensibly? This is why it is key to retain a strong relationship with someone who has rich, deep knowledge of not just gold but the history of the ore itself so that they can authenticate the physical items you procure. What if you purchase something that looks like a diamond-encrusted gold tiara, but it is actually cubic zirconia? Additionally, do you place more or less value on gilded items that are embedded with mined diamonds, or do you prefer synthetic diamonds in your gold?
These are questions that will come after you make your initial (well researched) investment in gold. Furthermore, gold will provide you with the opportunity to constantly be educating and re-educating yourself well into retirement. Part of a successful retirement is maintaining brain activity at a strong and consistent level so that you do not end up in a nursing home. If you are wise enough, you will see that rolling over your 401K into precious metals gives you the chance to constantly be learning about the state of expensive alloys, as the market is always adjusting and moving to respond to the needs of customers, artisans and miners.
Sometimes, there are fee structures that make investing in precious metals prohibitively expensive. But several precious metals dealers have flat fees that can provide you with the kind of security to know that your fees will not shock you as time goes by. A flat fee gives you the opportunity perhaps earn more money as the broker you are working with to invest in precious metals will not be contractually able to shock you with their take of your earnings. In this way, the volatility of the market that you might perceive before getting involved at all may be successfully minimized at the behest of a fee structure that contains no surprises and hidden fees.
One of the great reasons to consider converting your 401K to gold is that it does not always require a large investment. You can offer a gold broker a minimal piece of your portfolio to begin with, and you might learn that you have a greater talent for recognizing a strong piece that will provide you with great returns. You likely have a better instinct for buying physical gold than you realize, because you might know the difference between ten carats, fourteen carats and gold-plated nickel. Just existing in the world with the jewelry you are already surrounded by, you can likely trust yourself to purchase physical gold with a keen eye.