Investing in our golden years has never come easy, even for the savviest of investors among us. Yet, one commodity remains appealing to older Americans that remember the wild price swings that eventually led to the inflationary era of the 1970s. As a retiree who wants to find investment strategies that appeal to older Americans, gold remains a viable investment option for several reasons. The best part is you don’t have to buy dozens of gold rings or invest in gold bars to benefit from the timeless investment commodity.
Yes, the investment landscape has changed, which means you can earn money by investing in gold through a brokerage, and also receive a healthy financial bonus for making the profitable leap into gold.
Why Many Seniors Are Switching to Gold ETFs
Older investors require investments to deliver a steady income, which is why many financial experts recommend older Americans move cash into safer investment vehicles like CDs and short-term bonds. To protect against inflation and put all your financial eggs into the equities basket, gold makes perfect sense as an investment strategy for older Americans.
The best part is you don’t have to risk as much by investing in the purchase of physical gold. An exchange-traded fund (ETF), which is a form of mutual fund that holds physical assets, trades the same way that stock shares trade. An ETF for gold mirrors the value of the asset that is priced by traders working at a commodities exchange.
How to Buy Gold ETFs
Owning a physical asset carries with it several disadvantages. You have to pay extra for transaction fees, as well as the cost of storage and insurance. On the other hand, a gold ETF is an investment that delivers both value and security. You do not invest in a physical asset that you have to insure and store, and you do not deal with as wide of price swings that you deal with when buying a gold bar.
As one of oldest and most reliable gold ETFs, SDPR Gold Shares (GLD) trade on the venerable New York Stock Exchange. As with any type of stock, bond, or fund, you can buy and sell GLD shares at any time during a trading day. Each share of this popular ETF is 1/10th of an ounce of gold bullion. If an ounce of gold trades for $1,000 on a commodities exchange, then one share of a GLD is worth $100. GLD shares trade based directly on the price of gold, which gives investors exposure to price fluctuations, but not the hassle of having to store and insure the precious metal.
As opposed to gold bullion, GLD shares do not carry as much investment risk, with offering older investors the opportunity to make money because of share appreciation.
How to Get a Signup Bonus to Invest in Gold
You have two ways to receive a bonus for investing in a gold-based ETF. A standard account balance rewards investors that open gold ETF accounts. Standard account bonuses vary in size, but one positive attribute remains the same for all investors: You receive the bonus upfront on the day you open a gold ETF, such as a GLD. The primary reason for handing out account bonuses is because investors in gold ETFs tend to keep the accounts open for longer periods than the average time other fund accounts remain open.
As a recent innovation in the financial services industry, an IRA rollover bonus offers financial benefits that include transfer fee reimbursements to cash bonuses that can run into the thousands of dollars. The reason for the generous financial incentives for rolling over IRAs is because of the intense competition of IRA plans within the financial services industry. Transfer reimbursement plans typically range between $100 and $200.
If you are considering moving an IRA account that invests in a gold ETF to another brokerage house, then the time is ideal to make the savvy financial move.
Here are five brokerage companies that reward new customers that rollover IRAs into an account managed by the brokerage:
Search for Gold Bonus Investments Today
If you are a senior contemplating your financial strategy during retirement or an older American that has decided to assume more risk in return for a higher investment income, putting your money into a gold ETF like a GLD makes financial sense. As Steve Brown says, simply investing in physical gold represents a sound investment. The 60 year old Texan holds about 10 percent of his investments in gold coins, which have appreciated in value since he bought his first coins in 2011.
As a financial planner with Barnett Capital Advisors in Miami, Florida, Andrew Carrillo advises retirees to keep anywhere from five to 15 percent of their investment portfolio in a gold ETF. “Their biggest risk is not running out of money,” Carrillo said. “The biggest risk is their money running out of purchasing power.”
Not only does a gold ETF help you maintain a healthy retirement portfolio, you can also benefit financially from a generous bonus.