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Given today’s economic uncertainty, it’s no wonder more investors are beginning to take an interest in gold.
Historically, gold has been seen as a safe haven and a store of value for investors. If you’re nearing retirement age, gold can be a smart way to diversify against volatility your investments in other markets may experience. Diversifying can help reduce your overall risk no matter the future brings, including economic downturn or high inflation.
But for seniors who may soon rely on their portfolio as an income source, it may be more important than ever to make sure you understand how you can benefit — and what risks you could take on — with a gold investment.
If you’re considering gold, one of the first steps you can take is knowing your options. Read on to learn more about three ways seniors can invest in gold.
Start exploring your gold investment options now with a free information kit.
3 ways seniors can invest in gold
Here are three ways you can invest in gold as a senior.
Gold IRA
Gold IRAs are a form of self-directed individual retirement account which you can use to hold certain qualifying physical gold assets. Like regular IRAs, these accounts come with tax advantages for retirement savings and have annual contribution limits.
You can open a gold IRA by working with a gold investment company. These companies can help you make a gold purchase that suits IRS requirements and find an IRS-approved custodian to store your gold.
For seniors, investing in a gold IRA can be a good way to diversify the amount you have saved for retirement. Keep in mind the rules related to your age to make sure you’re getting the most from your account. While there is no age limit for making regular contributions to your IRA as long as you make some form of earned income, you must begin taking required minimum distributions at age 72.
Learn more about how you can use a gold IRA today with a free investors kit.
Physical gold
Physical gold, including gold bars and gold coins, may be the gold investment type you’re most familiar with. Owning physical gold can be appealing for seniors looking to benefit directly from a rise in gold’s value.
There are plenty of ways to buy physical gold, including online and from local dealers. Just make sure you understand current prices and the fees you’re being charged before you buy.
Another thing to note with this type of gold is that you’ll still need to find a secure way to store it. If you only own a small amount, this may not be difficult. But for larger amounts of gold, it’s important to find a safe storage facility and explore insurance options.
Gold stocks
If you’re unsure about investing in gold directly, gold stocks can make a great alternative. Rather than holding physical gold, you can invest in funds or individual stocks of companies indirectly tied to gold’s value, like mining or refining businesses.
If you’re a long-time investor who is used to investing in the market via ETFs or mutual funds, this could be a good way to diversify and gain exposure to gold using the brokerage you already invest with.
Wondering if gold is right for you? Consider speaking with an expert about your gold investment options today.
The bottom line
Gold may be a good way for any investor to diversify. It can protect your portfolio against volatility and preserve your purchasing power when the economy is uncertain. But seniors approaching retirement may need to be a bit more cautious with their investment decisions.
If you’re thinking about investing in gold today, make sure you keep your allocation to around 5% or even less. And choose the right investment type for you — whether you’d like the retirement benefits of a gold IRA, the security of physical gold or the flexibility of an indirect investment with gold stocks.
Before you buy in, consider speaking with a trusted financial advisor about how you might benefit from gold, and learn more about all your options with a free investment guide today.