Using Gold to Help Avoid Common Retirement Planning Mistakes


There are many different variables that can threaten your retirement funds, and it is imperative to take these variables into consideration as much as possible when planning your retirement. U.S. News & World Report published an article by Kelly Campbell listing five common mistakes people make in their retirement planning which points out such variables as interest rates, healthcare costs, market volatility, and inflation. For our purposes, we will pay attention to numbers 4 and 5.

“Not guarding against a market decline.” Campbell warns: “If you’re nearing retirement and not thinking about how to protect your portfolio, you’re making a dangerous mistake.” The market is unpredictable by nature, so it is important to manage how much financial risk you are taking with your portfolio investments. Not having enough income or savings coming from your portfolio to recover from a market downturn can take years to fix. Campbell recommends having a well-diversified portfolio of non-correlated asset classes, or an “evacuation strategy to go to cash”. And what fits both of these strategies? Gold. Gold is a non-correlated asset when grouped with stocks and bonds, as it tends to go up when the other two go down, and vice versa. Gold is also one of the most liquid assets, so when you suddenly need cash for an emergency or any other reason, your gold will be waiting there for you to sell. 

“The four key personal economic factors.” Rate of return on investments, inflation rates, tax rates, and personal expenditures are the four items that Campbell lists, and only the last one of them is in your control. She recommends controlling your personal expenditures as much as possible in order to compensate for the other three uncontrollable factors. However, gold is one investment that has a proven track record of keeping its value despite such factors, even over several decades. Amid out-of-control inflation, market crashes, unsustainable national debt, war, etc., gold will always be there, have intrinsic value, and be ready to liquidate while paper assets may falter.

To protect yourself from these common retirement planning mistakes, it is permissible by the IRS to keep physical gold and other precious metals in your retirement account with a self-directed Gold IRA. You may roll over an old or current 401(k), IRA, or other qualified retirement plan to a precious metals backed IRA, tax-free and hassle-free. Call American Bullion today at 1-800-326-9598 and one of our specialists will answer any Gold IRA investing questions you may have.