fbpx
Allegiance Gold BlogGold InvestmentsInvestingIRARetirement Planning

Retirement Mistakes Without Portfolio Diversification

By August 10, 2020 No Comments
portfolio-diversification-retirement

Common Retirement Mistakes Without Portfolio Diversification

It is so hard to believe that we are living in a reality where the future of our retirement, now has a looming financial impact on us.  What is predicted for the near future of most Americans retiring, will feel unsettling for those who want to be comfortable in retirement. 

Whether you were in a position where you have been planning on the time to retire, or you are thinking about it for the first time, we at Allegiance Gold, want to educate you on some mistakes that most retirees are making today.  There are a few items such as investing in precious metals and portfolio diversification that are recommended in contemplating retirement.  But here are some mistakes that are commonly made with diversifying your portfolio before retirement.

Retirement Fund To Debt Ratio

Interest rates have become a marvelous expenditure when it comes to living a normal life where we can all have what we want and pay for them within the limits of our stipend salary.  As we move along in life and think about bigger financial decisions, the amount we have left owed can go against ourselves when it comes to budgeting for retirement. 

The average American today has accrued more debt in their lifetime than any other person from any country.  The amount of borrowed money offered to the average person in America is exponential.  And we are all guilty of maximizing on the amount of borrowed money due to the fact we can always pay it off later.  When thinking about retirement comes around, “paying debt off later” becomes as soon as possible.  No one wants to be paying off debt on a fixed income in retirement.  When mortgage payments, car loans, and credit card payments factor into your monthly finances – you don’t want to be stuck paying off your debt especially with high-interest rates.

Most financial advisors will advise you on investing your retirement funds into accounts that will barely grow.  The average range of growth can vary from 2-5% every year.  The rate of growth that your advisor bases this off of is the fluctuation of the market.  If the market performs poorly, you might end up losing money that you are saving for your retirement.  As your retirement funds either grow or depreciate throughout the year, your interest in debt will continue to grow.  The most efficient method is to pay off any debt before retirement, but if you were to carry debt into your retirement, it may be difficult to support yourself and your family.  It is important to recognize what your retirement fund to debt ratio is when deciding on retirement.  Most retirees forget this very important aspect.

No Planning, While Making Financial Decisions

When you head into retirement, there is no doubt that you want to be able to live your life in the best way possible – you earned it!  There are so many possibilities that you want to do now, but make sure you plan for this part of your life.

Let’s play a scenario – you want to head into retirement in a new place where you want to live.  That’s great!  The state or city you pick is easy for you to live in, as well as, for your family to come visit you during the holidays and family events.  What the biggest factors to consider in a decision like this is moving expenses and new home fees.  The majority of Americans want to go live in different and cheaper parts of the country in retirement.  What most retirees forget about doing is actually going through their existing home for accrued belongings to store and move.  Other factors to consider are storage fees, moving expenses, and new mortgage or renters fees (depending on what type of place you settle for).  A new home or apartment may be cheaper, but make sure that all the fees are laid out so you know what is expected before making a final decision.

This is a very common mistake among retirees.  Always evaluate your expenses and financial decisions and plan ahead!

Spend Wisely With Fewer Liabilities

Most retirees in America have grown significantly, both professionally and personally with their own families.  While you have been able to climb the corporate ladder in your professional life, you might have started your own family as well.  Now that your family has grown, there may be little grandchildren that you want to contribute towards for their savings.  While this is a heartfelt gesture, you have to prepare in advance when deciding to give your family money from your retirement.

How you spend your money in retirement has to come down to how much of a stipend you will be living off.  If you decide to move, most of the expenses will be greater than what you were used to.  If you want to help out your family, it can also be an issue.  Most retirees spend money without thinking of the liabilities that they have around them.  Where you live is obviously the biggest, with family coming right after.  For most retirees heading into retirement, it is always advised to visit a financial advisor to help break down your new fixed income; and how it can be divided into all aspects of your life.

Any advisor that truly looks into your best interests will tell you the best thing to do with your retirement is to diversify your portfolio.  Sure, you can grow your money in a typical account that grows 2-5% per year, but do more than just that.  Make your money work for you!  Diversify your portfolio into gold or other precious metals.  If you want to have a certain lifestyle going into retirement, think about what type of gold IRA rollovers you set up for yourself.  And it is never too late to rollover.

Diversify Your Hard Earned Money

You’re in the final stretch of your career, you’re starting to look ahead at retirement, and you notice that your retirement investment account has only been giving you back an average of less than 1% over the past 20 years.  In this scenario, your money barely worked for you and you lost out on HUGE opportunities to grow your assets.  If you were to have diversified your retirement fund 20 years ago, you would have added more value to your retirement fund, and maybe had a larger monthly stipend than your regular salary when you were working.  The time is now to act on portfolio diversification and maximize on your hard-earned money.

Most retirees relate to portfolio diversification of just investing in different stocks and bonds.  What it actually represents is spreading your portfolio across all different types of investment options which are not that revealing in any part of the market.  What most investors resort to for portfolio diversification, is by investing in gold.  With the historic and sudden rise in the price of gold, gold itself and other precious metals are becoming lucrative investments. Gold has the capability of becoming more valuable over an extended period of time.  Given gold’s proven track record, investors who are looking for a long-term investment that has the lowest risk possible, always resort to gold.  It’s also the best solution as a hedge against inflation and other affiliated risks that may arise from the stock market.  When it comes to portfolio diversification, do not look past investing in gold.  With the price of gold rising, an investment today can lead to your future for retirement, well-secured.

After reading this information, you may be wondering if you have missed out on investing in gold and diversifying your portfolio.  Worry not, as rolling over your current retirement funds into a gold IRA is absolutely a solution you can seek.  The great thing about that is, Allegiance Gold can walk you through every step of the way.  The added bonus is that we can share with you our FREE investment guide.  Make sure you download your copy below today!  Another attribute to investing in a gold IRA is that you can actually receive physical gold coins if you choose to do so.  Feel free to contact us today with any questions that you may have about portfolio diversification or investing in gold.  There is a lot of existing research and ongoing research we have done in regards to the price of gold.  We are here to benefit you and secure your retirement wealth, and give you the retirement growth you deserve.

 

    Leave a Reply