An individual spends what seems to be a
lifetime and works hard to earn money. During that time many are told to put
money aside to prepare for retirement so that after 30 or 40 years you will
have enough saved to live well during the golden years.
Sadly the Golden Years become more years of
the same hard work.
Many have accumulated 401k’s and IRA’s that
are invested in the stock market. To me that is a lot like going to Vegas and
betting your rent money. The concept of putting ones entire life savings and
letting it ride in the stock market in the hopes that it will forever go up is
tantamount to gambling.
The difference between saving and investing
is as simple as understanding that savings is an action that tries to minimize
risk and preserve something…
While Investing is an action that risks
something to get more..
Years ago people realized that because of
inflation and the low interest rates from banks that a person could save enough
money to allow them to retire and maintain their standard of living.
The stock market was only for the wealthy
who could afford to risk their money.
But somehow today the idea of planning for
retirement means risking your hard earned money.
It doesn’t have to be like that anymore…
There is a way to save to preserve wealth
and build it so you can overcome the effects of inflation and grow your wealth.
Serious players in the world of finance are
acquiring enormous sums of physical gold. In Q3 2018, central banks added 148
metric tons of physical gold to their reserves. Why
would there be such a drastic change to their policies?
One reason is that they learned an important
lesson from the last financial crisis when Lehman Brothers nearly caused a
global financial meltdown, forced a rethink in how assets held on an
institution’s balance sheet are to be valued.
Counter-party risk became extremely important
again. In short, when trust between SIFIs fails, liquidity dries up as lending
ceases due to solvency fears. The need for liquidity was a key change in the
creation of the new standards, and it shone a spotlight on an asset that had
largely been ignored for this purpose – physical gold.
Long story short The Basel Committee on Banking
Standards (BCBS) scrapped the old Basel II framework and put in place a plan
that will be fully realized by all SIFIs by 2019.
This meant that an institution that held
gold reserves on its balance sheet could only apply half of its market value
towards its solvency requirements.
But under Basel III, monetary gold now
qualifies as a Tier 1 asset, and is 100% valued for the purposes of banking
Essentially, monetary gold is now considered risk free. This significant
development remains relatively unknown – for now.
So how can the common everyday person take
advantage of this zero risk investment and protect their hard earned wealth
instead of leaving it all in a volatile stock market?
One of the best and major players in this
arena that I recommend is Goldco. Goldco
is a great gold ira company. There are a
lot of options available and they will show you how to invest in gold.
One of my preferred options is the gold ira
rollover that allows a person to transfer a portion of their retirement plan
into a secure gold backed IRA without having to come up with new capital
investment and without incurring any penalties.
If this sounds like something you would
like to learn more about you can get a free investors kit here you can also use
the toll free number to speak with someone in person.
One of the best features I enjoy is the
ability to roll over from an existing plan without having to come up with brand
new money to fund it.
Investments in IRA metals will not only
secure your retirement life, but it will also save on your taxes too!