April 19th, 2009
Good lord, how on earth can you do any retirement planning in 2009. You really should remain focused on your previous path. If you’re moving into the wealth preservation, however, I strongly recommend considering converting assets into gold. There are many ways you can do this, with some even offering free storage. The reason for this is simple: inflation. Inflation is about to go through the roof, especially if your assets are in US dollars. This will hit the lower class and the saver class the hardest and first. It would not take long for a $1,000,000 nest egg to get cut in half. In fact, the Federal Reserve Board says its inflation goal is 2%. That means any asset in US dollars will be cut in half within a generation.
Tags: gold, inflation, retirement planning, wealth preservation
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July 31st, 2008
Many people are beginning to look at exchange traded funds (ETFs) as a retirement investment alternative to mutual funds. It is entirely possible, though not easy, to manage your own diversified basket of ETFs in your IRA or 401k. You have a variety of options here, including picking some all stock market ETFs or adding Health, Energy, Technology, and other sectors to get a diversified basket. You can browse the different ETFs that are out there at places like Instant ETF. Again, this is a more difficult approach to retirement planning, but not necessarily a bad one.
The preferred method of ETF investing is to take advantage of the long-term target ETFs offered: TDAX Independence 2010 ETF (TDD), TDAX Independence 2020 ETF (TDH), TDAX Independence 2030 ETF (TDN) and TDAX Independence 2040 ETF (TDV) and TDAX In-Target ETF (TDX). The ETFs automatically roll over your portfolio into risk positions that are inline with your current stage in life. Each offers an expense ratio of 0.65% compared with 1.3% expenses for comparable mutual funds. If you’re unsure if that is worth it see how much an extra 0.65% compounded annually can effect your portfolio – you may be surprised.
You do want to keep an eye on your ETFs and make sure that they remain solvent. ETFs are a relatively new addition to retirement planning and are somewhat untested over time. We have seen some funds be liquidated which often has tax repercussions for the long term investor. Just a few things to keep in mind before considering added exchange traded funds to your retirement planning.
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July 31st, 2008
If you are looking to gain commodity exposure in your self-directed retirement plan, consider using one of a burgeoning number of possibilities that exchange traded funds (ETFs) offer. Head over to Instant ETF and browse by sector to find what you’re looking for. One of the most popular commodities right now is the Natural Gas ETF (AMEX: UNP). There are a lot of other options, including broader based ETFs and ETNs that cover a basket of commodities, including ones that do not just focus on energy. London has been somewhat ahead of New York in offering commodity plays, but there is an increasing number of commodities ETFs in the United States, primarily because of the strong bull market right now. If you’re looking at adding commodities futures contracts themselves, take a look at Commodities Futures Charts.
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