Paper Gains Can Lead to Paper Pains

The comments below are an edited and abridged synopsis of an article by Birch Gold Group

Investment gains look good, on paper. Especially in your retirement saving accounts.

Paper Gains Can Lead to Paper Pains - BullionBuzz - Nick's Top Six
Miniature people looking future with stack coin about financial and money savings concept.

But things can change quickly in the markets, and those gains can disappear quickly.

While things are going well, and market optimists are enjoying the party, it can provide retirement savers a false sense of security. “Everything is great!” the optimists shout at the top of their lungs, right up until the markets implode.

Up for discussion: Stock market bubble triggers a wave of early retirements; your retirement could be sabotaged; and consider locking in your gains (while you still can).

We can’t know when the stock market bubble will finally pop. Hindsight is always 20/20, and by then the damage will have been done.

We do know that every speculative bubble in history comes to an end at some point. With that in mind, it might be a good idea to secure your gains now, because a month early is probably a whole lot better than a day late.

Unfortunately, today’s 30-year-high inflation means that most conservative, risk-averse investments like bonds, CDs and savings accounts actually lose money over time. That makes today a good time to consider assets that aren’t valued-based on stock market mania, like physical gold and silver. Hard assets with intrinsic value like precious metals are about as far from paper profits as you can get.

If you’re concerned about where the market’s going, and you don’t want to take a chance on a 50% market drop wiping out your retirement savings, today might be your opportunity to lock in your gains and keep them safe from the ups and downs of the stock market.

Whatever you do, make sure you’re building your retirement plan on a solid foundation. Volatility isn’t just frightening; a year or two of plunging stock prices can completely rewrite your future. Don’t take that chance.

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