Author: Joe

Retirement Advisors Look to Gold and Silver IRAs for Clients

Posted on by Joe

A hedge against inflation in 2022 starts by considering alternative investments and making a decision to diversify your portfolio in an investment known to be a hedge against inflation which is buying physical gold.

Financial Advisors and Planners are now doing what’s best for their clients by stabilizing portfolios through the purchase of physical gold and silver.

Over the past decade, financial advisors have persuaded clients from buying physical precious metals as an investment. Starting in 2012, we have seen a strengthening economy, strong job growth, and favorable spending habits by consumers. As the recession was starting to be in our rearview mirror stocks and mutual funds were an excellent investment choice.  The markets were strong over the last 10 years and diversified investment options like physical gold didn’t have a good return on the investment. Speculative gold mining companies did well over the past several years as they are mining for gold. Buyers of Gold and Silver have even seen little upside appreciation over the past 5 years as the price of gold and silver has been relatively consistent in price per ounce.

Now with inflation on the rise and most investors seeing a 25-35 percent decline in their portfolios over the past several months, many advisors are looking to diversify their client’s portfolios by purchasing physical gold.

Investment in Gold and Silver may see strong returns over the next few years and investors looking to keep their principal and who are not as bullish in the current stock market will look to buy precious metals.

When diversifying a portfolio with physical precious metals, one should consider the options.

  • Purchase with Cash –
  • Purchase within an IRA –

How does one decide which gold or silver IRA company to buy from? Reading reviews on gold IRA companies is a good place to start. We reviewed The Plug’s 5 Best Gold IRA Companies page and they provided insights and shared information that would take hours to find and review. Having a source that puts the best options in one place and let investors know which companies have good reviews and which companies are accredited by the Better Business Bureau saves time.

Precious Metals IRA companies are not all the same. Made more popular in the last 15 years these companies can walk an investor through the paperwork to get the IRA opened, funded, and you buying gold in a short period of time. If you choose to make your IRA a LLC then there is more paperwork and tax recording, but having the ability to control your physical gold or silver investments allows you to control your future.

When you own physical gold you own an asset. When you own a physical asset you determine the safest method of storage. If you have a secure safe or safety deposit box then you can choose to be your asset with CASH and secure it yourself.

If you are rolling over a retirement account into a precious metals IRA you cannot take possession of the physical gold yourself. You must place the gold in a secured storage facility.  In addition, when you purchase within your IRA there are specific gold or silver assets you can buy. The IRS has a list of the specific approved items on their website or you can work with a representative with one of the recommended IRA companies. These companies have specific knowledge of the assets they sell that would be approved for your IRA.

Tighten up on your retirement account and diversify your portfolio. Get onboard with the financial planners and advisors who are recommending diversification of investments for the immediate future.

 

 

 

A Budget Is My Friend

Posted on by Joe
This article was revived from the old budgetwisefinancial.com website with the help of archive.org. This information was repurposed for those looking for the old website.

As I was preparing this article on budgeting for the Women’s Money Week 2012, I thought what more can be said about this subject.  Over the last year or two, it has been the most talked about subject for personal money management.   I know that budgets are not sexy.  I am not going to tell you how to budget or why budget.  I wrote about these not too long ago.

Instead, I am going to try to paint a rosy picture.  Budgeting is not straining your dollars just to pay bills or to put the handcuff on you.    The process gives you the freedom to live the life you want to live.   Without a plan, money tends to shift to the area of least resistance.  That’s the hole in your purse.  The short term immediate gratification will win every time.  You will not make the hard decision.   I am not going to say that the budget makes everything perfect. There is more to successful personal money management than budgeting.   But, you will feel better knowing that you have a plan for your spending.

Instead of focusing on the short term discomfort starting a budget may cause, think of what you will gain.   Let’s do a little exercise.  What do you really want to do that is fun?  If I asked you what you want to accomplish, you will probably feel obligated to give me a grown up, financially responsible answer, like get out of debt or save for retirement.  These are cool, but not always fun.  Life is to be lived and enjoyed, as well.

So instead, if money was not an object and you could be, do, or have whatever you want in 2013, what would it be?  Get that picture in your mind. Write it down with a date when you will possess it. Begin planning and saving for it, even if it is $10.  Now start moving: call and get prices or go out and touch and see it, if is a physical product.   Instead of doing the obvious, like whipping out a credit card or asking someone to get it for you, think about how you will obtain it creatively.

Now when you spend money frivolously, think about that goal. By default, you are changing your behavior to think and plan ahead.  You have identified a more rewarding reason in the future to curtail your spending in the present.   If you really desire X, over time, that desire should override the impulsive purchases.   When you buy something that you shouldn’t, an internal alarm will sound. That is your subconscious mind trying to help you.  Don’t ignore it, listen to it.  Before long, you will find yourself enjoying more of the things you really want to be, do or have.

This post is part of Women’s Money Week 2012. For more posts about budgeting see Budgeting Roundup.

Samirian Hill, “The MoneyWise Teacher” is founder and president of BudgetWise Financial Solutions, LLC, where they teach people to manage money wisely. She is a financial educator, contributing writer and blogger. She enjoys golfing, cooking, and reading.