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Allegiance Gold BlogInvestingRetirement Planning

Retirement Is Going To Be Difficult In The Future

By July 27, 2020 No Comments

Retirement Is Going To Be Difficult In The Future

When we think about retirement, most of the population have general goals which are common amongst all individuals.  The added stresses of life are finally gone!  No more meetings, no more sitting in traffic, and definitely no more daily life work drama.  Now you have the freedom to do what you desire.  If you want to wake up at 11 am, like you are a teenager, by all means, you have the power to do so.  By this time when you achieve this amount of freedom, you’ve have most likely saved money and contributed to your retirement fund.

The basic, American retirement blueprint has been to work for decades and retire at the appropriate time when retirement and savings funds are estimated to last you for your life after the workplace.  Most of the population either invest in 401k retirement plans or traditional IRA plans.  That blueprint is rapidly becoming an item of the past as most Americans today will not be able to achieve the retirement hopes and dreams they want.  We know that the generations before us, are somewhat comfortable in the income they receive from retirement.  And in order to live a life like there’s when it comes to our time to retire, we have to adjust accordingly.

Over the past half-century, our government has no doubt but helped boost our economy and stock markets.  Now, all the work our government did have resulted in us going into an economic debt, and all the government debts are going to be paid by the current generation.  With that being stated, our retirement is definitely going to be more difficult, versus what our parents and grandparents experienced.  It is best practice to start thinking now about diversifying your portfolio with investing in gold or safer precious metals investments to secure your future.

1. Much Higher Prices

Inflation has grown to a certain extent in America due to the high demand of printing excessive amounts of unbacked currency.  Unbacked currency, also known as fiat currency, is a huge contributing factor to us having to pay more in higher prices to help our debt situation.

Our dollar currency used to be back gold which was held in the Federal Reserve bank.  Our U.S. Government completely tarnished the relationship that our dollar had with gold.  The result of this led to gold sky-rocketing in prices.  With the Federal Reserve issuing more and more money that was unbacked, it has now created a trillion-dollar debt that we will have to pay for. 

What you can take away from this point is that deciding on retirement today will see higher pricing models on all aspects of our life.  With inflation rates considered to be low at an average of 2%, pieces may and will rise to up to 50% over the next 2 decades.  With inflation rates on the rise, all of the daily living expenses can see a rise of double or triple the amount of the original price.  Retiring now will be worse than ever before as those who retire will have an expensive retirement life.

2. Cost of Healthcare

The most essential necessity that we all need in life and especially when it comes to retiring is our health.  Our health care system has seen a significant rise in prices and costs will continue to soar even higher.  Even with health insurance in place, prices will reach an all-time high sooner than later.

The majority of the population that utilizes healthcare are Americans that are close to retirement or are in retirement.  The reality of it is, is that when it comes to retiring, healthcare costs will not be same over the course into your retirement life.  Can you firmly say that you have enough money saved or enough in your retirement plan to survive the health hardships that may arise later in your life?

3. Volatile Market

In the past 20 years, we have come a long way.  We have seen stocks rise an average of 20% from the 80’s to the ’00s, which actually gave increased the value of retirement accounts.  The new development in tech media and the world wide web was also an advancement.  But the low periods of time hit us the most with the Great Recession and the abysmal 2008 stock market crash.

Now more than ever, bonds and stocks are definitely not a safe investment anymore.  Experts are emphasizing that having a diverse portfolio is imperative today.  Investing in precious metals and investing in gold especially are great alternatives to increase your wealth for the future.  A gold 401k is a resort that most Americans looking to retire have been investing in.

4. Unpredictable Finance

When it comes to planning for retirement now, the financial markets alone are not just what is unpredictable, but the uncertainty of being able to sustain with the constant increase in prices.  Retirement and pension plans that companies have offered to those who were employed 20-30 years ago have been underfunded which have left those depending on their pensions and retirement plans at risk.

Years from now, Social Security will most likely be a thing of the past.  Experts have predicted that within the next 10-15 years, most Social Security recipients will lose almost 80% of their intended benefits.  If a person is solely dependent on Social Security and retirement plans, this will leave you not being able to pay for their finances come retirement due to the overall economic loss that we are currently experiencing.

Prepare To Prepare

With the uncertain future quickly approaching, investors need to realize that if there is not enough saved in allocated assets or in retirement plans – the time is now to start diversifying your portfolio.  What this means is that it is not just about investing in gold or establishing a gold 401k, it is about making the safest and most secure investments to benefit your future.

If going back in time were an option, what would be some investments you would put your hard-earned money into?  What most investors alike proceed to do was invest their money into stocks and bonds.  With stocks, there are high risks and higher rewards when investing in commodities; as well as, with most bonds having a fixed and variable interest rate.  But with the unpredictability of the financial future and what we have seen to both stocks and bonds crashing, the future of investing relies on investing in gold.

Although at the start of this century gold was rather at a  lower rate of return than stocks and bonds, we have seen a significant rise in the price of gold.  In the next 1-2 decades, the price of gold will continue to rise due to how it has survived during all the financial hardships we have seen the economy face.  The most common mistake that Americans make in preparing for retirement, is by “watching the stock market”.  By doing this, yes, one does become knowledgable, but at the same time, time is being wasted waiting for that right investment to either give you a small or large return. Why not make an investment in gold?  In the year 2020, gold has risen to extreme heights so far and will continue to climb.  It has stood the test of time and continues to become more valuable as the days and weeks go by.  The question that needs to be asked is will you make an investment in gold to secure your financial future?

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