How to Invest in Gold to Crash-Proof Your Retirement Savings

Stock Market - Arrow Graph Going Down on Blue Display

Investing is not without risk. However, when it comes to your retirement, how much risk is too much? The importance of retirement savings cannot be understated — you will eventually either want or need to stop working and you will need income on which to live. Whether you struggle to survive or live well during your retirement years depends largely upon the investment decisions you make now.

Potential Risks When Saving for Retirement

When allocating your retirement investments, it is important to clearly define the amount of risk you’re willing to take. For example, you may want to allocate a small amount of your retirement savings to stock-based investments if:

  • The margin between your living expenses and retirement income is small
  • You’ve already had to sell stocks due to a declining market
  • The idea of a significant decline in your savings due to a market crash causes you anxiety
  • You aren’t in a position to ride out a market decline

There are numerous other factors to consider when it comes to deciding upon your level of risk. An investor in their 60s or 70s, for example, could potentially afford more risk than an investor who is 80 years of age or older. If your retirement savings is substantially higher than your living expenses, you may decide to take on more stock market risk.

For most investors, a crash-proof investment is the most appealing option. You don’t have to take major risks with your money to reap the rewards. All you need is an investment vehicle that offers global value, high liquidity, and is impervious to the volatility of fiat currencies. All you need is gold.

Why Gold is the Solution

A fiat currency is one that is not backed by anything of value; the only backing is the government’s promise that the currency is legal tender. Currently, all world currencies are fiat currencies. What does this mean for investors? One potential outcome is the collapse of such currency, with nothing to cushion investors against dramatic portfolio loss.

Gold, on the other hand, is globally valuable and has a long history of maintaining its value. It is also highly liquid, which means it’s easy to convert gold investments into cash. There is a rapidly growing demand for gold, which is an excellent hedge against the weakness of the U.S. dollar.

Gold IRAs — Insulated Against Tax Risks

While there are advantages to IRAs, there are also risks. Two potential risks to your savings in an IRA are inflation and devaluation. If the dollar crashes, your IRA could dramatically decrease in value. However, a gold IRA is virtually immune to such risks. A gold IRA gives you the tax-deferred benefits of an IRA account with all the advantages of a gold investment.

How to Start Investing in Gold

There are numerous ways to begin investing in gold. You could allocate some of your retirement savings to a gold IRA, which is a collection of physical precious metal products. If you prefer owning physical gold, consider buying coins and gold bullion. If you’re seeking a retirement investment you can depend on, there is no better place to start than with a self-directed gold IRA. Although the sooner you start investing in gold the better, it is never too late to start!