Although stocks have shown some signs of trouble in recent sessions, the market has been quite resilient in recent months. Volatility remains at subdued levels, and while there may be whiff of selling in the air, the bears have yet to really show their teeth.
The aging bull market will at some point make its final high-if it hasn’t done so already. Not only that, but the economy is likely to slow significantly in the quarters ahead, and the next major recession could be seen in the next year or two. This next great global slowdown could have significant effects on those nearing retirement. Indeed, it could very well cause a major crisis.
It was recently announced that the U.S. Government would be dipping into trust funds to pay social security benefits to recipients. As if that is not problematic enough, the government is also being forced to dip into Medicare’s reserves to cover current costs associated with that program. It has been estimated that both programs will run out of funds in the next decade or two.
Lawmakers may have no choice but to cut benefits, raise taxes or a combination of both. They could also potentially raise the eligibility age, forcing retiring boomers to stay in the workforce longer. Either way, it could potentially be a major disaster.
Retirees may be forced to rely even more on their own savings if government benefits decline. Many of these people, however, could see a significant, financially ruinous decline in their savings when the next recession and bear market hits. Ask anyone who was looking to retire around the financial crisis of 2008/2009.
Such a scenario could not only affect retirees, but the economy in general. Increasing foreclosures and credit defaults could be seen, fueling a decline in property value and thus overall wealth. Many will require financial assistance, will could also drain disposable incomes. In short, crisis may be putting the potential effects mildly.
Right now may be the ideal time to consider added diversification with alternative asset classes. Stocks have had a great run over the last decade, but when the music stops you do not want to find yourself without a chair. Now may be the time to add diversity, and look into asset classes that can potentially hold or increase in value during a recession and/or bear market. Now may be the time to consider an allocation in physical gold or to add to current gold holdings.
Adding this key asset class to your portfolio has never been easier than it is today. Not only does gold have tremendous upside appreciation potential, but it may also potentially provide a meaningful hedge against rising inflation, a weaker dollar and other economic/geopolitical issues.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can even show you how to diversify with gold using your IRA account.
Don’t wait for the next major recession to take hold or for the next major stock market crash before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: bull market, gold, government benefits, retirement crisis, Stocks