Gold is an age-old currency that has stood the test of time. No matter how many millennia pass, you’re always guaranteed to have one thing remain the same: Gold will always have value. The stock market will rise and fall and then rise again, but gold, though its value might go down, remains a valuable commodity that is sought after globally. That’s the main reason why converting some of your money to gold as a retirement plan is one of best retirement plans. That’s not the only reason though. Below are five reasons why you should consider converting some of your assets to gold for retirement purposes
Advantages of Investing in Gold as a retirement plan.
Gold hedges against inflation
Gold can weather the economic storm is basically what this means. Yes, everything fluctuates, but not quite like gold. In its down moments it remains more valuable then any other currencies. If you convert your money to Gold, you’re guaranteed to still get a lot of it when you liquidate your gold. It might be less if the stock markets have fallen, but it will still be a stable amount. There are currencies that can fall to zero when the stock market takes a hit, but gold will never be one of them.
Gold diversifies your investment portfolio
You usually don’t get diversification with stock, bonds or mutual funds, one way to diversify your investment portfolio is to invest in gold. Bonds and stock tend to loose value when there’s a financial crisis, but gold remains stable in the event of economic crisis.
Gold has tax Benefits
Gold investments that are considered non-equity products are taxed at lower rates, some don’t get taxed at all. After investing for more than a year, the tax benefits and long term gain is worth the investment in gold.
Investing in Gold has no maintenance fees
Unlike investing in real estates, gold has no upkeep requirements. You buy and store gold for years. Gold does not deteriorate over time, it does not depreciate due to old age unlike real estate property
Gold is portable and has high liquidity
You can move around with gold (risk of theft aside) and liquidate it on command within minutes, because it can also be in a digital format. Moreover you can do this in any country in the world (except the few countries where gold is burned). Try travelling to another country with the house that you rent out, nothing of the sort has ever been heard of. You have to rent it out from a distance. Yes the beauty of technology and all, but those who pay cash will live you at their mercy, unless you don’t travel. Just as well, you cannot sell real estate property on command. You have to list it and wait to get a buyer, which can take months or even years. So, gold has high liquidity making investing in it a necessity.
Disadvantages of Investing in gold as a retirement plan.
Gold is good to invest in, but that doesn’t mean there are no disadvantages to investing in gold currency. Only invest a portion of your assets into gold, for the following reasons:
Investing in gold has no monthly dividends
When you invest in gold, the benefits you get don’t include monthly dividends. So far only equity based gold ETF’s give monthly dividends because the stock companies they invest in are tied to the gold industry. Outside of that, buying gold does not have the benefit of monthly dividends. That is a disadvantage if the aim of investing in gold is to get monthly revenue.
Short term investment in Gold is risky
Gold is always fluctuating, so investing short term is likely to lead to making a loss. To reap the benefits of investing in gold, it’s suitable to invest long term, for example buying gold that you will only liquidate when you retire 10 years into the future.
Investing in Gold requires storage and insurance cost
While digital gold offers a more flexible and easy way of storing gold, physical gold requires that you invest in a safe storage and get the gold insured. Which is of course not free. You can of course just resort to buying digital gold (which is my recommendation). It is a slightly notable though (”slightly notable” being the key phrase) that there are cyber risks such as hacking and fraud, but it is uncommon, thereby rendering it negligible.
Conclusion: Who should invest in Gold?
With all that said, it’s only logical to ask one’s self, should I or should I not invest in Gold? You should invest in gold if:
- You want to put away money for retirement.
- You want another backup plan for your retirement assets.
- You want your retirement savings to whether the economic storm.
- You don’t want your retirement eggs in one basket.
- You want the flexibility of quick monetary access to your assets.
Should you invest in gold? Yes, absolutely. Should you put all your eggs in the Gold busket, definately not. Do not ignore the benefits of investing in gold, but also, only invest a portion of your money into gold. If you’re convinced enough to invest in gold, find the Most Recommended, Reputable and Trustworthy Site to Buy Gold. Let us know your opinions in the comments section.
