Embrace MORE Risk to Meet Retirement Investment Goals??
Posted By | October 21, 2017
An article at USAToday.com informs individuals that if they want to “retire in comfort,” they should assume greater risk in their choices when it comes to investing for retirement. This excerpt makes clear what’s at stake:
“Unfortunately, by taking the safe road, you could cost yourself the chance at financial security. If you aren't willing to take risks -- especially when you're younger and have time to weather market downturns -- your investments could earn so little it becomes virtually impossible to build a solid nest egg unless you invest a fortune.”
It’s not the first time we’ve heard this. And the risk-reward balance, as it pertains to retirement investing, has become even trickier to manage now that people are living longer than ever. Nowadays, the concerns about outliving one’s savings are very real.
But is the key to investing for a secure retirement really limited to striking a delicate balance between more aggressive assets, such as stocks, and those that move at the pace of a tortoise, such as bank certificates of deposit (CDs)?
Might there be a third option?
Living Longer Means Greater Types of Investment Challenges
First, some background. In the “old days,” once a person reached so-called retirement age, still generally thought of as 65, the broad recommendation was to get very conservative with investments. Any stock-market-based investments were to be greatly reduced, if not outright eliminated, and replaced with conservative instruments such as short-term bond funds and certificates of deposit.
One of the reasons that approach worked fine many years ago is that people were not expected to live many years after they stopped working altogether. For example, in 1960, the average life expectancy of Americans was around 70. Now, it’s close to 80.
Think about what that difference means in terms of the burden on a retirement portfolio. Sixty years ago – and assuming a retirement age of 65 – a person’s total resources, including savings, any pensions, and Social Security, might have to last around five years once they stopped working. Now, it’s closer to 15 years, and that’s just an average. With all of the advancements made in wellness and medicine over recent decades, a retiree blessed with historically good health and devoted to clean living may now well live for decades past age 65.
As a result, “seasoned citizens” must now give more thought than ever before to just how they will survive their Golden Years financially. For some, that means working longer than they originally planned. For others, it means taking on more investment risk than they would otherwise care to assume.
Gold and Silver Bullion Investing – A Third Asset Option for Your Portfolio
On the subject of risk, one of the problems with the referenced article is that it limits the types of investment choices to those assets we think of as being traditional – stocks, bonds, and bank vehicles, such as certificates of deposit (CDs). This seems to create an either/or narrative that leaves individuals thinking they can be invested only in assets subject to significant volatility, such as equities, or in those that are extremely low risk and offer a low return.
As mentioned, there is a third option, but it’s not one you’ll typically hear about from your financial advisor: precious metals, in the form of gold and silver bullion. A portfolio partly allocated in precious metals offers investors, including those relying directly on their retirement investment assets, the opportunity to achieve greater effective diversification than we believe can be typically realized through other instruments.
The growing challenges to retiring well mean individuals must be intelligently invested. Intelligent investing includes, in part, purchasing assets that may be able to not only help stabilize a portfolio when equities are weak, but create opportunities for capital appreciation in their own right – assets such as physical gold and silver.
If you’re concerned the risk profile of your portfolio may be too great right now, then you owe it to yourself – and your family – to do something about it. Consider taking a little time to consult with people, such as the team of professionals available at Augusta Precious Metals, who have superior knowledge in the area of helping investors achieve true diversification with gold and silver. Give them a call, toll-free, at 855-242-4121, to learn more about how owning gold and silver bullion may be able to help you mitigate the very risk so many “experts” are now declaring must be a part of your retirement portfolio.
Your Future and Your Legacy!
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