Easy ways to invest in gold for retirees

When you reach retirement, your investment focus shifts from wealth generation to wealth preservation. You want to protect the money you've saved up so you can maintain financial stability throughout your golden years.

For many retirees, this means investing in gold. Gold is a low-risk investment that's been proven to provide steady, reliable returns in any economy, shielding investors' money from inflation and market turmoil. This can give you valuable peace of mind as you enter this next phase of your life.

There are many ways to invest in gold, but some are better suited to retirees' needs than others.

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Easiest ways to invest in gold for retirees

Retirees may want to consider the following gold investment options.

Gold mutual funds

Gold mutual funds allow you to invest in gold without actually owning physical gold. Mutual funds pool investors' money to purchase assets such as gold stocks or bonds. These funds track the performance of gold mining companies rather than tracking the price of the metal itself. Because these funds contain a mix of assets, they can help diversify your portfolio and reduce your overall investment risk.

Mutual funds are managed by professionals, which can be beneficial for retirees who are less experienced with investing or want a more hands-off approach. However, that means they come with management fees, which you must factor into your investment costs.

Gold exchange-traded funds (ETFs)

Gold exchange-traded funds (ETFs) are also pooled investment funds, but they track gold prices rather than gold mining companies' performance. As the name suggests, ETFs can be traded on stock exchanges. They tend to have lower investment minimums than mutual funds and lower fees as they are passively managed.

Physical gold

The most traditional way to invest in gold is by buying physical gold (also known as bullion) in the form of bars and coins. These are easy to buy, easy to sell and give investors a tangible asset they can hold in their hands.

However, physical gold must be insured and stored securely, which can be a hassle and adds to your costs. You also must find a reputable dealer, understand current gold prices and know what to look for to ensure you're getting a fair deal.

Gold stocks

When you buy gold stocks, you're buying a share in companies in the gold industry, including gold mining companies and streaming companies. Because gold is always in demand, that means these stocks can be less volatile than stocks in companies in other industries.

Investing in gold stocks can be less expensive than investing in physical gold, which is sold at a premium. Some stocks also pay dividends, which can provide you with an income stream in retirement. 

However, it's important to note that while gold stocks have higher growth potential, they also have higher loss potential. So, be sure to consider how they fit into your investment plan and risk tolerance level.

Learn more about gold investing with this free investors kit.

The bottom line

Investing in gold is an excellent way for retirees to diversify their portfolios and protect their retirement funds from economic turbulence. The easiest ways for them to invest in gold are gold mutual funds and ETFs, physical gold and gold stocks. 

Each option has its own advantages and disadvantages, so it's important to research and compare them to determine the one that best suits your risk appetite and investment goals. A financial advisor can help you create an investment plan customized to your financial situation.