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Smart estate planning means setting priorities to effectively inherit wealth. Before making an estate plan, think about who will inherit and their needs and values. If you leave your money and assets in the right way according to your situation, you can definitely protect your loved ones. With proper planning, you can ensure your legacy is safe for your heirs.
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Precious metals such as gold and silver have been valued as stores of money and wealth for thousands of years. Are they still an effective way to inherit wealth? We spoke to two experts who insisted that’s the case, if properly allocated as part of a real estate diversification plan.
Peter J. Klein, Founder and Chief Investment Officer of ALINE Wealth, and Frank Giustra, Co-Founder and Strategic Advisor of Aris Mining Corporation, believe that purchasing physical gold and silver will continue for generations. is one of the best ways to build and maintain wealth.
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Gold as a means of portfolio diversification
Gold and silver also provide portfolio diversification and protection during stock market turbulence. When stocks and other risky assets fall, the price of gold and silver often rises. For example, during the Great Recession of 2008-2009, the S&P 500 plummeted by more than 50%, and gold prices almost doubled. Precious metals help smooth out returns over a sufficient period of time. And unlike paper assets, gold and silver cannot go to zero.
“Gold, unlike traditional stocks and bonds, acts independently and provides a hedge against market fluctuations,” said Peter J. Klein.
Many investment experts recommend holding gold as part of a diversified portfolio. Gold and silver have unique properties that make them attractive assets for managing long-term wealth across generations.
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This means that gold and silver should not be used for short-term speculation.
“You don’t buy gold to get rich,” says Frank Giustra. “It’s a long-term store of value. At least 10% of your portfolio should be gold. If you want higher returns from investing in gold, you can take more risk and buy gold mining stocks. Please. Compared to the price of gold, gold miners are the cheapest I’ve ever seen. There’s great value there.”
Giustra added: “Gold has been one of the best-performing asset classes over the past 50 years, if not the best. Between 1971 and 2022, gold had an average annual return of 7.78%; This was just behind the average annual return of 8.3% for the commodity. Between 2000 and 2022, investing in gold returned more than 500%, compared to 300% for the S&P. I would have.”
safe haven in crisis
Geopolitical instability causes market turmoil and increases investor uncertainty. Gold and silver have historically served as a safe haven in situations like this. Throughout history, precious metals have always maintained their purchasing power, but stocks, bonds, and cash can lose value during times of high inflation.
“Historically, wars and geopolitical tensions have driven investors towards gold because its intrinsic value remains intact even in turbulent times,” Klein said.
The intrinsic value of gold and silver is maintained even in times of war, conflict, and crisis that cause fear and insecurity. By allocating a portion of your long-term investments to gold, you can achieve your goal of passing on lasting wealth across generations, as it allows you to preserve your wealth even in turbulent times.
“Gold is a good inflation hedge over the long term,” Giustra said. “But when a currency starts to depreciate, it really outperforms. In North America, we’re used to the price of gold in U.S. dollar terms. But the currencies of countries suffering from high inflation and monetary policy failures… If you look at gold in denominations, its performance is quite impressive.Other asset classes considered necessary during periods of inflation include silver, most commodities, agricultural land, and art, but monetary The only asset class is gold. Some investors prefer Bitcoin, but Bitcoin has never been tested in a crisis. It aims to be “digital gold” but remains volatile and speculative. is very high. ”
Benefits for generational wealth
When it comes to passing on wealth to future generations, physical assets like gold and silver have unique benefits. These are stores of value that can be easily transferred without the need for account documentation.
“Small gold allotments can be easily passed down and held over generations,” Klein said. “By incorporating gold into a comprehensive wealth management plan, families can not only protect their financial legacy, but also equip future generations with the knowledge and resources to maintain it.”
Gold and silver are easy to physically inherit and remain in families for generations. For example, physical precious metals, unlike real estate, can be stored discreetly in a home safe, whereas assets held in accounts or trusts can be difficult to access due to decades of changes in laws and access. There is a possibility. This makes gold and silver ideal for passing on wealth from grandparents to parents, children, and grandchildren.
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This article originally appeared on GOBankingRates.com: I’m an investment expert: Here’s why buying gold and silver is the best way to build generational wealth
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