How much should seniors invest in gold?

You've worked hard to save up money for your senior years, and you want to ensure you keep that money safe so you can enjoy long-term financial security once you stop working. Investing in gold can be a good way to do this. 

Gold is a relatively low-risk asset that provides steady returns and long-term value despite periods of economic turmoil. It can protect your wealth from inflation and counterbalance losses from more-volatile assets, such as stocks. If you're seeking a way to safeguard your retirement nest egg, gold is worth considering.

But to get the most from this asset, it's important to understand how much to invest in it.

Learn more about investing in gold with a free information kit.

How much should seniors invest in gold?

The general rule of thumb is to keep 5% to 10% of your investment in gold. However, it can be wise to adjust this percentage to better suit your changing goals as you age.

And as you near (or enter) retirement, it's crucial to keep your money safe. To do so, experts recommend adjusting your portfolio allocation — how much of your investments you keep in certain assets — to focus more shielding money rather than growing it.

When you're younger, an aggressive investment strategy can help you grow your portfolio faster. You have a long time horizon and can afford to take on greater risk for the potential of greater returns. So, investing a larger amount of your portfolio in assets like stocks makes sense. (The rule of thumb is to invest 100 minus your age.) At this time, it can make sense to keep only 3% to 5% of your portfolio in gold.

By the time you've reached your 50s and 60s, your focus should be less on growth and more on wealth preservation. Gold is a great way to do this because it has historically provided steady, reliable returns while protecting against losses from more volatile assets like stocks.

While you still don't want to invest too much in gold, you may want to consider aiming for closer to 10% of your portfolio (if not slightly more). This will allow you to reduce your risk and increase your chances of achieving stable returns.

Of course, as with any investment decision, you should consult a financial advisor for guidance customized to your unique situation.

Request a free investors kit today to learn how you can add gold to your portfolio.

Benefits of gold investing for seniors

Gold offers many benefits for seniors. For instance:

• It's a store of wealth: Gold has been a valuable asset for thousands of years and has stood the test of time. It can't be devalued like paper currency can, it's a hedge against inflation and it's been proven to weather economic downturns. This makes it a great way to protect the wealth you've built up over the years.
• Gold diversifies your portfolio: A diversified portfolio is essential for seniors, who should take a more conservative investment outlook. Gold has an inverse relationship with the stock market — in other words, when stocks are falling, gold tends to be worth more. You'll still want to keep some stocks in your portfolio (again, aim for 100 minus your age), but gold can help offset any losses from these and other volatile assets. 
• It's a safe haven: You don't want to take risks with your investments in your senior years because you don't have the time to make up any losses. You need to hold onto as much of your money as you can so you can live off it when you stop working. Gold has long been considered a safe-haven asset, making it a great way to do just that.

The bottom line

Investing in gold can be a great way to achieve financial stability during retirement years. It's a safe investment that offers reliable returns while protecting your portfolio from losses and safeguarding your money from the ups and downs of the market.

While financial experts recommend keeping 5% to 10% of your portfolio in gold, seniors who are close to retirement or already retired might consider a higher percentage as part of a more conservative investing strategy.

It's important to assess your individual circumstances, risk tolerance level and overall investment goals to determine the best allocation for you. With careful planning and analysis, you can make the most of your gold investments to enjoy a comfortable retirement.

Get a free gold investment guide now to learn more.