Recent events in the global economic market have made investing more confusing and riskier than ever before. Once upon a time, putting money into a company’s 401k plan, buying real estate or investing in the stock market were bankable investments that people made great dividends on. In today’s world, those investments are not the tried and true standbys they once were and people who rely on them for their investment strategies are coming up short when it is time to cash them in.
Company 401k plans have taken huge hits and most plans have plummeted in value over the last few years. Tied to stocks of ill performing companies or companies embroiled in legal problems, many employer backed plans simply do not have enough value to meet the investment needs of most people. Whether for retirement, funding college educations or buying a new home, 401k plans are failing investors and losing more value than ever before.
Real estate is more volatile than ever. Finance news has reported repeatedly on the housing market crisis. Many people who invested in properties before 2007 were able to sell their properties for a profit. However, buyers from 2008 and beyond are finding it very difficult to sell their properties at a profit and many are underwater on their mortgages, meaning they owe more than the property is now worth. Home mortgages are harder than ever to qualify for and many lenders are tightening the restrictions so much that home ownership is simply out of reach for most people, so buyers are scarce. Dishonest lending and appraising practices have crippled the once thriving housing market and it could take several years before the market levels out again. Once a solid investment strategy, buying real estate is no longer a clear cut way to increase your net worth.
With the global nature of the stock market, stocks are riskier than ever before. Political turmoil, natural disasters, wars and other unpredictable factors can dramatically effect the stock market. Stocks can gain and loose value in a matter of minutes and do not make a reliable investment strategy.
In light of the unreliable nature of these commodities, smart investors are looking for safer, more secure ways to invest their money and build their wealth. One of the easiest ways is to invest your money in the metals market. Metals such as gold, silver and platinum are giving investors greater returns than traditional commodities and are tangible assets that can be cashed in when you need to liquidate.
Owning gold bullion, bars or coins is a smart and stable way to invest your money. For the last several years, finance news has been full of reports on the increase in value and the rising price of gold. In demand and marketable in every global marketplace, you can buy and sell gold anywhere in the world. The global appeal of gold allows you to shop and sell at the best possible price, not merely what your local market bears.
Additionally, for investors in the United States, there can be some tax breaks for investing in metals. Some gold backed IRA plans and select gold coins are eligible for tax deductions when purchased as part of a retirement investing strategy. With a gold backed IRA, the value of your IRA is backed by gold rather than the unpredictable stocks, paper money and other intangible assets most 401k plans are reliant upon for their value. Speak with your financial planner to see how investing in gold and metals commodities can help you save for the future while saving on taxes today.
Recent economic events and trends have clearly shown that today’s investors need to be savvy, informed and to fully scrutinize the performance, worth and value of the commodities they buy and sell. While nothing can ever be certain in economics, there are some commodities that perennially outperform their counterparts and precious metals consistently fall within the outperforming category of investments.
Building your wealth and creating an investing strategy that will help you retire, fund an education or fulfill other goals will not happen by chance. It takes dedication, determination and planning an investing strategy that will withstand the ebbs and flows of the market. Gold and precious metals can withstand the changes in marketplaces and give you a great return on your investment. If you are interested in putting your investment money into the metals market, talk with your financial adviser and request information from online gold and metals brokers to see how quick, easy and profitable metals commodities can be.