Articles
Gold & Your Portfolio
by Safe Gold Buy Gold Online IndiaThere’s NO SINGLE RIGHT WAY to build your wealth!
There’s just the right way for you.
Each person’s needs, wants, expectations, family
requirements, etc. are different. This means there’s no magic pill you can take
on the road to financial freedom and success! There is however, a series of
smart decisions you can make in how you approach your wealth-building strategy.
Optimizing your asset allocation is an unavoidable
buzzword, so today we’ll jump in right there and look at the best ways to plan
for the present and the future!
Step 1: Foundations
You can’t build anything valuable, if you don’t have
strong foundations and something that takes care of your needs first.
This is where your first tier of assets come into the
equation. You need to be able to stash this all away for the future or a rainy
day. These are assets you should not mess around with! You should strongly
consider protecting these investments as well!
1)
Your Home
a.
Protect with Insurance
2)
Some amount of cash
a.
Plan ahead with long-term wealth planning
3)
Medical Expense Planning
a.
Protect with Insurance
This takes care of your core needs. You’re securing
your home, your health and hedging against unforeseen circumstances and any
immediate emergency. It’s not flashy, but this is the perfect first move!
This is where Gold comes in. Take a peek at gold
appreciation over time right here (more on this later).
Step 2: How do you make your wealth grow?
Think long-term. Think of the biggest drivers of your
financial stability and freedom! Think education and skill set development and
think long-term equity investments. With these investments, you should expose
yourself to unavoidable market risks and consider taking calculated risks only.
It’s this step right here that sets you up for a happy retirement!
1)
Education
a.
Invest in yourself + Invest in your family
2)
Long-Term Equity Investments
a.
Invest in companies with strong fundamentals
b.
Consider investing in SIPs
This takes care of your long-term wealth generation
prospects. Forward thinking and a strong belief in the power of compounding can
take you a long way. People who appreciate that little drops of water make the
mighty ocean, will truly appreciate the importance of this step right here.
Step 3: Get Rich: Keep Trying, Don’t Keep Crying
This is where you plan for riches and all the luxury
items you ever wanted. Do you want to start a business? Maybe you want to take
that dream trip you’ve always wanted? Perhaps you want to invest in a slightly
high-risk, high-reward stock you’ve been doing some due diligence on. This is
where you shoot for the stars and get into activities that give you joy or have
a really good chance of making you a pot of money!
Remember: If this
doesn’t work out, you still have your foundation and your long-term investments
intact! That doesn’t mean you should make rash decisions, but it does mean
every now and then you can trust your gut or simply indulge yourself!
1)
Slightly Higher Risk, Higher Reward
a.
Trust your research and consider different
financial investments
2)
Start your own Business
a.
Invest in yourself and your own idea if you have
the commitment and the drive to succeed in a competitive space
3)
Indulge Yourself
a.
Take a dream holiday with your family
b.
Buy something you’ve always wanted but didn’t
have the heart to do before
Step 4: Retirement is approaching!
Once you’re here, start converting parts of your
savings from Step 2 & Step 3 into income-generating assets. This gives you
a steady income when you’re nearing (or you’ve already reached that point)
where you’re not actively working anymore. If you’ve done a good job with all
the previous steps, you could be quite comfortable here!
So, where does Gold fit in?
Gold belongs in your foundation, just like insurance.
In essence, that’s what it is to your financial planning goals! It’s a reliable
support investment that always holds its value – something
you can rely on in a time of need.
Whatever you decide this amount should be, it should
include a component of gold – say 5-10%. Here, you can invest in physical gold,
digital gold, Sovereign Gold Bonds and Gold ETFs!
Remember: Investing in
gold has always served as insurance for investors at a time of financial,
political, economic and even ecological crises. It still holds true in 2019, as
investors can benefit from the increasing value of gold by treating it as a
hedge against other investments.
·
Gold is less volatile than the market, and hence
when you adjust for volatility, it acts as a great hedge.
·
Gold pricing data supports this idea over the
last 30-40 year period
·
Gold is essentially a dollar investment (since
gold prices are internationally benchmarked), it's also a good safeguard
against rupee depreciation.
·
The most efficient allocation is often suggested
to be between 5-10% of your foundation portfolio according to many financial
advisors.
A thumb rule on gold investing is keeping an expectation
for a 7-8% annualised return (taking in a 15-20 year range) in INR terms.
That beats your Fixed Deposits, while also diversifies
your anchor investment.
See? There’s a lot to love about gold, apart from the
gold itself!
To sum things up:
-
Plan for your base and foundation
o
Take care of your needs first – home, gold,
insurance, cash deposits
-
Plan for your long-term investments
o
Take care of your wealth-building goals next –
stocks, mutual funds, SIPs
-
Plan for your ‘level up’ attempts
o
Take care of your wants and use this amount to
aim high – new ventures, personal development and gratification purchases
-
Plan for retirement
o
Convert assets into income-generators and
maintain your standard of living even after you stop working
For more information on how digital gold can help you
achieve your financial goals, look no further than www.safegold.com!
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About Safe Gold 
Buy Gold Online India
4 connections, 0 recommendations, 26 honor points.Joined APSense since, October 10th, 2019, From Mumbai, India.
Created on Nov 22nd 2019 00:53. Viewed 536 times.
