What is true financial security? We all invariably have different definitions of it. For the longest time, most baby boomers equated financial stability with their job, or perhaps their career. We believed that if we worked hard enough for long enough, our employer would reward us with a solid retirement that would allow us to enjoy our golden years.
But although this model seems to have served our parent’s generation fairly well, it didn’t work too well for us. We found out early on that working for the same company for several decades was no longer a viable approach. We changed jobs, and often over the years, changed careers. Even those folks who were lucky enough to start out with a company that employed them all the way to retirement often saw their solid retirement plans collapse as companies used pension funds for other things, or got rid of them entirely.
For other Boomers, financial security came in the form of a retirement portfolio, made up of stocks and bonds. Some of us got greedy during the go-go years of the early Internet craze, only to lose untold thousands of dollars in the dot com bust. But we persisted, believing that ultimately the stock market would come through, so we kept investing. And by 2008, we had all been burned again as the market tumbled and trillions of dollars of value were lost. Good luck finding financial security there.
Some Boomers took comfort in the value of their homes, which over the years kept on increasing steadily, until they were finally living in houses worth many times what they paid for them. These people were sure that they would be able to cash in the equity locked in their home, and that equity would provide the basis for a very comfortable retirement, particularly if it was going to augment a well rounded retirement portfolio, and perhaps a pension to boot.
And then wham, the Great Recession hit. Stocks plummeted, home values were decimated, and many Boomers, on the verge of retirement, found themselves in dire financial straits. Unfortunately, many of them still do.
With all of this in mind, maybe it’s time to seek out true financial security. A place where more and more people are looking to find this is in precious metals, primarily gold.
Had you purchased gold when the dot com collapse happened, you would have paid less than $300 an ounce for it. Today, that ounce of gold would be worth more than $1,500. Neither the dot com bust, the Great Recession, the real estate melt down or the collapse of giant global banks had any impact whatsoever on the price of gold—except perhaps to drive it up.
The bottom line is that when it comes to true financial security, nothing even comes close to gold. Trusting your economic future to manmade assets that exist only on paper – or worse, electronically – makes no sense whatsoever, especially today. As you set about to rebuild your financial future, make sure you secure it in the process. Acquire assets that will be around – and grow in value – forever.