Americans between the ages of 40 and 70 that are worried about how long their retirement will last should be looking at gold and precious metals. There’s a crisis looming on America and the rest of the world that is already affecting 401k accounts and all types of retirement accounts.
The inflation that is being experienced at the gas pumps and the grocery store are indicators of what’s to come in the near future. The stock market is plummeting and many of the top stocks are down 50-70%.
In the Eighties and Nineties, stocks were pushed heavily because they were easy to sell and there was a lot of money to be made in it. Now money can certainly be made in the stock market, but the average American doesn’t make more than 3% yearly returns.
Inflation has normally been targeted at 2% but just this year the government is reporting inflation at 8%. Now the government is the same institution that created the inflation problem by printing money and they claimed it wouldn’t cause inflation. So there’s no reason to trust the 8% figure they claim.
They actually go by CPI which is an index created to figure out what the average cost of living is, however it’s not truly accurate. When you compare actual costs it’s more like 20% inflation.
Even if it was 8%, that means you need your retirement investments to increase by 8% just to break even, or more if you want your money to grow for you.
The Point of Retirement Accounts
The point of investing in retirement accounts is primarily tax advantages. But you could also earn a lot of money by retirement because of the power of compound interest.
That compound interest is being stolen by inflation. By printing money, it’s causing the money you have in retirement to be worth less because there’s more supply. But also, the prices of goods have skyrocketed as well.
So if you’re close to retirement or already retired, you’re probably worried about how long your retirement will last because it’s losing value every year, and your cost of living is increasing every year substantially, but you can’t make up for it with active income from working.
The only solution to this problem is precious metals. Precious metals have been a safe haven asset for thousands of years and has been a bartering tool from the beginning of trade.
Gold and other precious metals have inherent value because they have properties that can be used to produce things. Fiat currency has no inherent value, because it’s no longer backed by gold or anything of value. It’s backed by promises to pay back owners of U.S. treasury bonds.
The scary thing is that the United States can’t afford to pay the interest on all of the debt it owes. The national debt is the highest it’s ever been and the Federal Reserve needs to raise interest rates to battle inflation.
Well, when the interest rates rise, the interest on the bonds that the U.S. sold goes higher too. If the interest rate goes too high, the country will default on the loans and the US dollar will no longer be the reserve currency.
We’ll have no choice but to go back to a gold standard or something similar. The prices of all assets will increase inherently because dollars will be worth so much less, so people will need many more dollars to buy things.
So if you own valuable assets that have inherent valuable properties, you’ll be safe.
Ways to Invest in Gold
There are many ways to invest in gold and other precious metals, but right now with a 401k crisis looming, there’s one way that is best. That’s with a gold IRA. Now, you can purchase more than gold and hold it in a self-directed IRA like silver, platinum and palladium.
Certain minted coins are required by the IRS and approved to be in IRA accounts that allow for tax advantages without penalty. What a gold IRA does is allows you to have the tax advantages of an IRA but not be tied to stocks that are tanking.
Every time there’s been a recession, gold and silver have kept their value or increased in value. In times of war, the same has been true.
We’re currently faced with all of the economic uncertainties every investor fears. Inflation, currency devaluation, war, and government seizure.
By owning physical gold in an IRA and stored by an IRS approved IRA custodian, your metals will be stored in secure depository vaults and you can access them whenever you need.
The benefit of having them in an IRA are that when you withdraw, you’ll be taxed at your current tax bracket. If you’re retired, then you’ll be in a lower tax bracket because you’re not earning income from a job.
So get in contact with a gold IRA provider, and save your retirement before it’s too late.