Setting and achieving financial goals can go a long way towards helping you live the life you want. For example, you might have the goal of saving for a new car, new home, or luxurious vacation. Or, you might have the goal to establish an emergency savings account containing six months’ worth of income. While these are certainly financial goals that may indeed improve your quality of life, saving for retirement should be first and foremost on your priority list. Here’s why:
You’ll Need More than Your Parents Did
There’s plenty of time to save for retirement, right? Wrong. Whether you’re in your 20s, 30s, 40s, or beyond, you may not have enough time to accumulate the amount of money you’ll need to live comfortably. You’ll definitely need more money on which to retire than your parents did. Not only does it cost more to live well than it did 30 years ago, you’re likely to live longer and travel more. The sooner you begin saving for retirement, the more likely you’ll be to live without financial worry in your non-working years.
You Can’t Depend on a Pension
Pensions are quickly becoming a thing of the past. Currently, only 20 percent of Americans work for an employer who offers a pension plan. Even if your company does give a pension, it likely won’t be enough to live on. One reason for this is because of the frequency with which people change jobs these days, another is the issue of inflation. Most pensions aren’t adjusted for inflation and the average annual pension amount is less than $10,000.
Social Security Isn’t Enough
In 2014, the average monthly Social Security retirement benefit was $2642. However, with the growing number of Baby Boomers retiring, its likely benefits will be reduced by the time you are ready to retire. Either that, or taxes will be raised. Both potential outcomes mean less retirement money for you in the long run. By establishing a strong retirement savings apart from Social Security, you can guard against the effects of potential Social Security benefit cutbacks.
The Advantages of a Gold IRA
In addition to starting a retirement savings account as early as possible, another savings strategy you can implement is a gold-backed IRA. Every IRA offers tax-deferred benefits, however, not every IRA has the stability of gold as its backer. Traditional IRAs are backed by the U.S. dollar, meaning if the dollar loses its value, so does your retirement account.
Here’s why you should opt for a self-directed gold IRA:
- Gold is an effective hedge against market crashes
- Gold is highly liquid
- Gold is globally valuable
- Gold has a long history of maintaining its value
A gold IRA should be your primary retirement savings vehicle, especially if you require an investment that’s stable and low-risk yet offers substantial rewards. To diversify your investments even further, select from gold coins and bars. A gold-backed portfolio can be an excellent strategy when it comes to a well-funded retirement.
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.