Monday, March 29, 2010

GOLD: To Buy or Not to Buy, That Is the Question

GOLD: To Buy or Not to Buy, That Is the Question
As a retirement planning firm, we are used to being asked about the hottest investments of the season, but lately those requests have skyrocketed. On an almost daily basis, we get inquiries ranging from whether they should or should not buy gold, silver, options, no-load mutual funds, bonds, annuities, you name it. And just so we are clear, these queries are coming in from new callers, NOT from our existing clients.

I have always been a proponent of having a comprehensive retirement plan – one that is based on your actual information, as well as proven, time-tested strategies that actually work – and then reviewing it at least annually without fail so that you can make any necessary adjustments. I still hold fast to this position, because over the years it has worked and is still working perfectly for all of our clients.

The Real Problem

Far too many investors have allowed the financial media to turn them into what I call “financial jellyfish.” In essence, these investors have no sense of direction of their own; they simply willingly go whichever direction the media tells them to. The thing is, no one can or ever will achieve meaningful financial well-being if they don’t know with crystal clarity where they are headed and why, notwithstanding the myriad options and choices which have always been and will likely continue to be available to them well into the foreseeable future.

 Specifically, the Gold Rush

One thing I feel compelled to point out is that the individuals making these inquiries always have one thing in common: their portfolio lost money when the stock market declined. It’s natural and rational that when you are losing money and someone points to the fact that gold is gaining, you’ll want to switch. But that’s exactly the problem, and my point: Those who do not have a realistic plan that is based on proven, common-sense, time-tested strategies will always experience instability when reality happens. NONE of Laser FG’s clients made a change to their strategies during the recent market upheaval, for two reasons:
  1. Their expected retirement income did not change.
  2. The market’s decline did not threaten their retirement goals.
That’s correct: not a single Laser FG client lost a dime of their portfolio’s values, so they are not looking to gold or anything else to rescue their retirement. They are actually calling and sending tons of referrals our way, and we very much appreciate them for such positive feedback.

Gold marketers know that the absolutely best time to pick up “financial jellyfish” is when the stock market dips, and that’s exactly what they are doing now. And there’s nothing wrong with that.

But have you wondered at all why these gold marketers want you to invest only 10 percent of your total portfolio in gold? Our clients usually want to maximize their wealth and will aggressively go for the kill on anything they believe will tremendously increase their wealth. Why would anyone go only 10 percent in on something that is going to make them wealthy?

The Cure

Be mindful of the fact that we live in a very noisy financial environment. Here’s the best advice I can offer you, and all the random callers of late: Get a real plan. And by that, I mean one that is developed exclusively for you, a plan you’ve discussed extensively, a plan with realistic assumptions that keeps your expectations in mind.

Call us at 301/949-4449 today or visit our site to set up your complimentary, no-obligation consultation with an expert strategist who will help you determine how to best leverage all the financial tools at your disposal.

1 comment:

  1. Thank you for your information about Gold. I though it was a good opportunity to invest in that kind metal. Your 10% question open my mind, but I didn´t understand clearly why is such top percentage. Of course I am not an expert in investmentes only a 400 pound gorilla.


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