Those who fail to prepare for the future will likely wind up with little saved for retirement. Setting up a 401(k) with your employer or an IRA that you manage individually are both good options for investing in your future. The more you save today, the better off you’ll be when it comes time to retire.
COVID-19 And The Market
Once the COVID-19 crisis began to spread throughout the United States and abroad, financial markets took a hit. The Dow Jones Industrial Average dropped by more than a third. The same could be said for most of the leading international market indexes. This caused many people to lose quite a bit, at least on paper. Those who held onto their investments recouped a large percentage of their losses within a couple of months.
Ways To Invest
As noted above, many people choose to save money through various retirement plans. These usually involve investing money into stock and bond mutual funds. Savings accounts, and certificates of deposit are also options for making a bit of a return on your money.
Real estate can be a great option for earning passive income over the long run. Real estate comes with the added benefit of having other people pay off your mortgage loans. Some people will choose to stash some cash or gold under a mattress. This is not really an investment, but it can come in handy if banks were to close down for a few days in a major crisis.
Gold IRAs
Another option that you might want to look into is to buy physical gold with 401k. An IRA is a vehicle that you can use to store your investments. To invest in physical gold, you’ll need to open up a self-directed IRA. This gives you more options than a regular IRA through a bank or brokerage.
You can invest in physical real estate, collectible vehicles or precious metals like gold in an IRA you control yourself. You can invest in gold funds or physical gold coins in a self-directed IRA.
Why Is Gold A Safe Investment?
Gold can be a safe investment, and it can make sense to have at least part of your portfolio in gold. When the stock market first crashed in the wake of COVID-19, gold performed quite well. The precious metal can provide stability when other investment options are volatile. Gold has been a source of value for thousands of years, and it still has a market today. It can also act as a hedge against inflation. When prices go up, the value of gold will tend to go up as well.
How To Get Started
Opening a self-directed IRA is the first step to investing in physical gold. It’s also important to understand that any gold you purchase needs to be pure. Gold Co states, “Purity is the most important factor to consider besides the daily gold price.” Making periodic purchases of high-quality gold can be a way to build your wealth over time.
Investing for the future is a necessity if you’re looking to retire comfortably. By making gold a portion of your IRA investments, you will likely improve your returns during the COVID-19 crisis.
