Tuesday, 13 November 2012

Retirement: Hard Assets Versus Pension and Personal Savings

In most developed nations, retirees depended upon an approach that is known as the three-legged stool. This strategy for retirement includes a pension, social security and personal savings. However, people are beginning to see that their stool actually has only one leg ... their personal savings.

In regards to the safety or security of a pension, most companies and governments have easy access to the retirement funds. For example, the Treasury and the European Stabilization Mechanism (ESM) have full access to  pension money, and can use it as a source of raising capital. Furthermore, the United States' social security is on the brink of insolvency, and its days are numbered; as well. With that being said, it is understandable why these actions would create uncertainty in most people, who are desperately trying to save for their retirement. But that's not all ...

In a credit-induced community, their isn't much hope for personal savings either. The Employee Benefit Research Institute reported in March 2012, that 60 percent of American workers revealed that the total value of their savings and investments, is less than $25,000. The three pillars of retirement income for citizens in developed economies – Social Security, private pensions and savings, appear to be on shaky ground and quickly becoming a growing concern for hard-working people and apprehensive investors all over the world; who are actively seeking alternatives to common investments and traditional investing.

One of the first things individuals must do immediately to strengthen their retirement system, is to invest their money in hard assets. Usually, hard assets are non-perishable real (tangible) assets and include real estate and commodity-related assets, such as energy (oil and gas), precious metals (gold and silver), industrial metals (aluminum and copper) or timber; and often function as a  key part of most people's retirement strategy. As simple as it may sound, investing in hard assets is not like investing in stocks or bonds, and there are many alternatives for confused investors; each with its own benefits and rewards.


  1. It’s a good thing there are alternative options in the market that are still performing strong. If the only “alternative” for investors was the traditional strategies then many wouldn’t even have one leg left to stand on when it came to their retirements.

  2. It is a most concerning time for many people when they have to think about their retirement years and what they will be like. Particularly if they have little savings and no private pension. They will have to rely on little government social security checks to keep a roof over their heads and food in their stomachs. No wonder so many are worried.

  3. Far too many people lost their investments during the western financial meltdown in the last five years. Millions were tied to the old traditional strategies of the past and as a result they lost their futures.

    1. If they had invested in hard-asset alternatives that wouldn’t have happened to them. Hind-sight is 20-20 but the knowledge gained can be applied to their future investments.

  4. For many people, investing money for their retirement, can be challenging, to say the least. It is perhaps one of the most important decisions they will have to make in their life. After all, if they lose their retirement investment they lose their future hopes and dreams.

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