Making Your Retirement Plan While Keeping the Economy in Mind
When most of us make retirement plans, we think of many things: the comfort level we aspire to post-retirement, the necessities we’d need on a monthly basis, medical bills, etc. But the one thing that many people forego when making retirement plans is economic uncertainty.
The economy changes faster and more drastically than a chameleon. Not taking it into consideration can cause big problems for you further down the line.
The right time to start thinking about economic uncertainty and how to hedge against it in your retirement plan is now.
Understanding What Goes Up and What Doesn’t
Every day, around 10,000 people turn 65. That’s the age of retirement, and the age prior to which all your retirement plans should have been made. One of the elements of these plans is knowing how prices work.
Money, we know, has been going up. So it might sound like a good idea to save thousands of dollars now because they’ll cost more ten, twenty years from now, right? Wrong.
Because when you’re thinking of money going up, you’re not taking inflation rates into account. With the increase in the dollar’s value, you’ll also be looking at higher everything: from living costs to medical bills. It’s a directly proportional equation, and you’re actually looking at devaluation.
What to Do Then?
Paper (or digital) money isn’t the answer. It will just sit in your bank accounts and devalue.
This is one of the reasons people are so keen on investments, and why economists encourage using money instead of hoarding it. For someone looking at viable retirement options, nothing works better than precious metals.
Between 2001 and 2011, the price of gold went up by 700%. Of course, these weren’t very calm periods in history: we had banks collapsing right and left, and currency devaluing at an unprecedented rate.
But then again, what times in history are not turbulent? Besides, how do you know that the future won’t be similarly turbulent?
Why Precious Metals are a Great Retirement Idea
They’re great because they won’t devalue overtime. They might not get you as great a premium as you’re hoping, but they will never devalue, as opposed to paper money. Besides, physical metal is always a safe bet, because the collapsing of banks won’t affect them.