Five Unique Investment Strategies For Your Retirement

At some point in our lives, the time comes when we're going to leave the workforce. Ideally, we have a nice nest egg built up and ready to go to help us through our years of no longer working.

Planning for retirement is paramount to success in this regard. Although there are many established methods that can get the job done, sometimes you need to get a little creative. Leveraging gold investments to prepare for retirement is a unique concept worth exploring more in-depth. Here are five unique investment strategies for retirement, with some of them exploring gold as an option. 

Prepare For After-Tax Expenses

Remember that old saying that “there are two things guaranteed in this world, death and taxes?” While it’s a bit grim, it’s true. Everyone should be paying their fair share of taxes. And with any retirement income or investments, there may be after-tax expenses that must be addressed. Understanding your retirement spending is pretty important. You’ll need to figure out how you’re spending is going to change, what your tax obligation is going to be, and allow for any unexpected expenses that may come up. Estimate the tax you’ll need to pay on your retirement income then figure everything else from there. If you already know what you’re walking into, you’ll be better prepared for enjoying your retirement and addressing anything unexpected that may come up.

401K

The old standby for retirement accounts, the 401K, is a fundamental part of retirement planning. Remember those pesky taxes from before? Your 401K can help you reduce that tax burden as you save for retirement. A 401K is typically a combination retirement/saving/investment plan that is offered by your employer. With an annual contribution limit of $19,500, it’s possible to save quite a bit each year in your 401K plan. Some employers also offer a match for the plan where they will put in an amount equal to your contribution up to a certain percentage. Often, 401K contributions are pre-tax meaning that the tax will come out after the contribution is made. So you’re actually saving money on taxes there. Some plans give you a tax break when you have a dispersal, but there is an age limit on pulling money from the retirement account. Some penalties may be levied if funds are withdrawn before the age of 59. Ultimately, a 401k is a great investment that comes with a modicum of free money if your employer offers a match. It’s worth getting for the passive nature of saving and the tax benefits alone.

Gold Stocks

Investing in Precious Metals is a pretty hot topic these days. Silver, palladium, platinum, copper, and gold are all viable options in this area, but gold tends to be a popular choice. While there are many ways to invest in gold, gold stocks are an easy, low impact way to do so. Resources like The Motley Fool often espouse the virtues of investing in gold stocks. And they’re not off the mark at all. Whether you’re looking to get into gold mining futures, exchange-traded funds, royalty/streaming companies, gold stocks offer a decent ROI and the benefits of gold without having to physically have the gold. Future stocks in particular also give you some insight into how the market might perform down the line or into the liquidity of buying/selling gold or gold stocks. Stocks can be a tough nut to crack, however, so it’s best to seek a financial advisor and do plenty of research before plunging into this exciting world of investments.

Gold IRA

Anyone looking to invest in retirement accounts has probably heard of the ira. The individual retirement account is a popular choice for planning/investing for the future. Traditional and Roth IRA’s are the most popular choices, but you may not have realised a gold IRA is an option. A gold IRA is a retirement account where physical gold is used to back up the account. Instead of contributing money or funds to the account, you instead contribute gold bullion, bars, coins, or other physical gold assets. Silver, palladium, and platinum can also be held in such accounts. Distributions and taxes work very much the same as traditional IRA. The IRS requires that the precious metals must be left in the care of the account custodian or caretaker.

Physical Gold

Gold barsWhile we’re still on the subject of gold investments, physical gold is another often overlooked option for investing in precious metals. If you decide to get a gold IRA, then you already invest in physical precious metals. If you haven’t gotten that far yet, then you might want to consider picking up a one-Troy oz gold bar or two. These bars are compact, valuable, and retain their value during inflation. Moreover, they are easily bought and sold or stored in a safe space within your home. These types of gold bars are finely made, mostly pure, and usually have certificates of authenticity to show they are a fantastic value. If gold bars don’t pique your interest, then you might consider investing in gold bullion, coins, or even jewellery. Either way, physical gold can represent a wonderful investment option and help you prepare better for your retirement.

Comments are closed.