Getting older is nothing to be afraid of, even if it may seem like it. If we prepare for our retirement, it is a time of joy and relaxation. Think about the benefits of having savings to fall back on, to serve as a supplement to any social security benefits that you can collect on.
Getting there, though, is the tricky part. How can we best prepare? Well, there are a few ways that we can do this. The most important part is to diversify our assets and invest wisely.
If you’re unsure how to do that, or don’t know where to start, just keep reading. Hopefully, this article can help you figure out at least some sort of a plan!
Making Investments – Where to Start
I think that one of the most difficult parts of looking into the future is figuring out what to invest in and why we should invest in the first place. We’ve all heard of the stock market. There’s a misconception that it is the only option available to us.
Of course, putting some of our money into it is not a bad idea. You can learn more about the stock market here on this page if you are curious. However, I would like to touch upon some alternative assets.
Real estate is one possibility. You could investigate becoming a landlord, for example. Or, if you don’t mind do-it-yourself projects, house flipping is an opportunity. You purchase a property at a low price, renovate it, and list it again at a higher price.
However, what I would really like to focus on today are commodities. You’ve probably heard the term before. In the economics space, they are usually raw materials that can be used to create other products. They are traded in the raw form.
Now, there are many different categories of commodities. One example is agriculture. In this space, many farmers sell either edible or non-edible plants or crops. Some of the edibles might be wheat or cacao. Fruits and vegetables also count.
As far as non-edibles go, one of the most well-known crops is tobacco. However, hemp, linseed, fiber, and cotton are also examples of this. Anything in the agricultural space that isn’t eaten falls into this category.
Next, there is the energy section of commodities. This includes fossil fuels and alternative sources of energy that we use. The first thing that comes to mind might be solar power, as far as the latter goes. Still, there is also hydropower, geothermal, wind, and even biomass from plant matter.
For the former category, probably the most widely used today is oil or petroleum. Crude oil is a big part of the energy sector of commodities. Coal and natural gas are also a part of this. You can read more about that here: https://www.eia.gov/energyexplained/what-is-energy/sources-of-energy.php.
Not sure how this is relevant? Well, I understand. What you should keep in mind here is that you can invest in all these forms of commodities. Be that by purchasing physical products or stocks for companies involved in them, it all counts. However, I’ve saved perhaps the best for last.
Precious metals are hardly a recent craze or fad like cryptocurrency. In fact, they have been popular all throughout human history. Think about the jewelry you own.
It’s probably made of silver or gold or at least plated with it. It could even be imitating these materials (typically found in costume jewelry). They make for beautiful products.
Did you know that you can actually invest in gold, silver, platinum, or palladium? You can! If you are intrigued by this prospect and want to learn more, something like Lear Capital can help you explore the options out there.
One method is to directly purchase the bars of your metal of choice, typically called bullion. While we might picture very large gold bars like those seen in movies and on television, nowadays they are usually stored in more compact ways.
You could also get involved in the stocks for companies involved with precious metals. Either way, you’re in this market. It’s great for diversifying.
Okay – but What’s the Relevance to Retirement?
I’m sure you’ve been wondering this the whole time. Allow me to explain. If you have an IRA account (individual retirement arrangement), the traditional options do not allow you to deposit alternative assets like commodities.
However, there are opportunities out there such as self-directed IRAs. There are even specialized precious metals or gold IRAs out there now. Once you find a custodian of your choice and can store your bullion, you are all set.
These commodities are a good idea for your retirement fund for a few reasons. Primarily, they can serve as a hedge against inflation. They add further security to your future. Whatever you decide, just start preparing. Don’t procrastinate!