Diversifying your retirement portfolio

Recent years were very dynamic when it comes to economy. We have seen numerous shifts when it comes to resources, industries, financial instruments and even retirement funds. Global investors have reacted according to crisis as they try to find new ways of making money. As a result, commodities have risen as the most desirable resource. This shouldn’t surprise us. It is logical that things such as gold, oil, silver will be so highly ranked. In the end, these are all resources that will be depleted and due to this, it is normal that their prices will only rise. Experts from Regal Assets remind investors that the price of gold has increased by 700 % in last 7 years.

Another big change that we have seen is recent years is that to retirement funds. Due to crisis, many companies went under. Subsequently, numerous developed counties have issues with unemployment. Simply put, there are less people to pay taxes and finance public retirement funds. Have in mind that high unemployment leads to another issue: government needs to give money to those without job. Because of this, countries such as Australia have decided to cancel retirement. This sounds very one sided given that people have put money into that fund for years and years and are expecting some compensation for it.

All of this forced individuals to think for themselves. Nowadays, we have an option of making our own retirement fund. This account can hold various resources and instruments, not only money. Because of this, person can not only get his pension (without thinking about legal issues) but he can also make a hefty profit while doing it.

Most of future pensioners will prefer paper money. This is a safe choice and it allows you to get your assets back in the same form. However, some people are more willing to take a chance and put their resources in something else. As previously mentioned, commodity market has seen an enormous rise in last couple of years. Suddenly, various companies popped up, such as those for gold, silver, platinum and palladium IRA (individual retirement account). When person puts money into such an account, instead of receiving money in future, he is getting things such as gold and silver coins. Presumption is that prices of these commodities will rise in future. Anyway you put it; experts do not believe that they will fall. This makes retirement fund safe and potentially profitable.

Besides commodities, you are also able to put your money into financial instruments. This is more like an investment, but it still beats any pension that you may receive in plain money. Have in mind that almost any, well diversified portfolio, can bring you much more money than simple pension can. Anyway, it is best if you consult with your broker beforehand. This approach is not for everyone. Simply put, retirement should provide you with some security. No matter what you think about safety of your portfolio, there is always something that can go wrong. But, certain strong currencies have also exhibited volatility as of late so, financial instruments may not be as bad of a choice.