Should You Invest In Gold?
As the national economy continues its struggles, gold has suddenly become a trendy investment option. The value of this precious metal has continued to rise even as other investment options have continued to struggle.
This makes investing in gold an easy choice, right?
No, not necessarily.
That’s because gold, for all its glamor, is, at its heart, a high-risk/high-reward investment, not much different than the stock market. While gold may be the perfect investment for some investors, it doesn’t work for everyone.
If you have a low tolerance for risk, gold isn’t for you. If you are retiring soon, gold is not the safest investment. If you’re a young investor, or if you have a long time before hitting retirement, then gold might be a good choice.
Gold prices can rise and fall suddenly. This is exciting when prices rise, but not so much fun when they fall. It also means that you can’t consider gold a guaranteed winner, despite what some of the ads you might hear on late-night television promise.
A smart bet, though, is for investors with a tolerance for risk to include some gold in their portfolios. Some financial experts recommend that investors dedicate 10 percent of their portfolios to this investment.
This makes sound financial sense. The most successful investment portfolios are usually those with a large amount of diversity. Gold can certainly add to this diversity, and offer a bit of protection in case other investments falter during down times.
It’s important, though, for consumers to never fall in love with one investment type. And gold, unfortunately, often has that effect on people. Maybe it’s all the hype surrounding the precious metal, or the long fascination that people have had with this glittery product, but gold simply makes the heart flutter. And it’s never wise to lead with your heart when you’re putting together an investment portfolio.
Instead, treat gold as you would any other type of investment vehicle. Do your research. Analyze your existing portfolio. Examine your own tolerance of risk. You might find that gold does make a solid addition to your investing strategy. Or you might discover that gold, despite all the attention its recently received, isn’t right for you.
The key is to analyze gold with an objective eye and to make the right decision for you. Doing anything else can lead you to a costly mistake.
Should You Work With A Financial Planner?
You’ve managed to save a nice nest egg for yourself. But you’re getting older, and your retirement years are nearing. This can’t help but make you a bit nervous. Do you have enough money available for retirement? Will you outlive your savings?
These aren’t easy questions to ask, but they are important ones. They are also ones that you answer more completely if you work with a licensed financial planner.
Financial planners are trained to help you make the most out of your money. Their goals are to help you meet your goals. If you find the right financial planner, you will have gained an important ally in your quest to enjoy a comfortable, stress-free retirement.
The key, though, lies in finding that right financial planner, a professional who is not only skilled but also has a personality that meshes well with your own. After all, it does little good to find a planner who may be a numbers whiz but whom you hate doing business with.
The first step, then, in finding the right financial planner for you is to interview as many as possible. This is tedious and time-consuming. But it’s an important step. Only by sitting down with planners and talking with them will you be able to learn whether they are good fits for you and your financial situation.
Some financial planners are more aggressive, hoping to invest your money in vehicle that promise high rewards for a bit of extra risk. Others are more conservative, preferring instead to grow your money slowly but steadily over a period of time. No one approach is right or wrong. But you will be most comfortable with one of these strategies. Work with the planner who follows the strategy that feels best to you.
Make sure, too, to ask any financial planner with whom you’re considering working for references. Then call these references. Ask them if the planner provided good advice, if the planner worked with clients to reach their goals and if the planner quickly returned phone calls or answered e-mailed questions.
A financial planner can help you decide if you’re financially ready for retirement. If you’re not, this planner can help you get ready. But for this business relationship to truly blossom, you’ll need to work with a planner with whom you have trust and confidence both. It doesn’t hurt to truly like the planner, either.