When the time comes for you to retire, how can a pension fund help you? For many people, the entire pension fund processing process is entrusted to pension companies to manage on their behalf, with an annual report to assess their investment performance. Most of the funds are highly inclined towards equity and property funds, if only then it does not have adequate diversification.
Gold is one of the most viable diversification opportunities to be considered and although prices have fallen in recent times, its value has outperformed deposit and stock exchange rates over the last 10 years. The analysis examines the constant performance of a monthly gold investment for ten years, after deducting costs and adjusting for inflation.
Many investors are looking for effective ways to manage their economic and macroeconomic and geopolitical financial risks in their retirement portfolios. By investing in gold you have diversified your pension fund and got the benefits of some of the following risks:
- Gold has outperformed most asset classes over the past decade due to global economic uncertainties as well as key assets such as stocks, bonds and property.
- Gold bars and pensions are a powerful combination. Retirement is an efficient structure of tax-based investment that has been neglected by the general public for a long time even though it is very easy to do. Gold is a form of financial insurance that hedges value and reduces long-term risk of investment strategy.
In the past usually someone will remain in one job in the same company for the whole of his career. The current work environment is very different and it is not uncommon for professionals to have more than one pension scheme that reflects their career to date, having worked in different positions with different companies, people will have different pension schemes.
In America, the decision to divide retirement savings into gold and other precious metals is due to an increase in the number of US citizens who understand that the value of the US dollar is secretly eroded by inflation. Whereas with age, the real inflation rate is much higher because major expenditures such as health insurance, home heating and foodstuffs are much higher than the official rate of inflation.
Keep in mind and be careful of investing in gold paper because it is very different and has a higher risk than investing in physical gold. Gold paper includes gold futures, gold futures options, gold ETFs, unallocated gold ownership, pool accounts, contracts for differences (CFDs), spread betting contracts, gold stocks and gold options.
An autonomous pension scheme with gold and precious metal allocation is a powerful pension planning tool and considering the financial crisis continues to affect the world with an increasingly difficult cycle to predict.