Tuesday, 13 November 2012
Retirement: Hard Assets Versus Pension and 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.