Cut Risks And Guarantee Gains: Why Real Gold Is Attractive

Published on: 21 June 2018 Last Updated on: 15 October 2020

What is paper gold? When investors talk about paper gold, they’re not referring to a gold leaf, which is real gold hammered into a thin, paper-like sheet that’s used in gilding, stretching gold out for decoration in jewelry, architecture, book-making, and mosaics. They’re talking about gold contracts and derivatives that have been created to make gold trading more mainstream, faster, and profitable for traders who want to go short instead of long.

Paper Gold vs. Gold Bullion :

What’s the difference between paper gold and real gold bullion? Paper gold is a contract for the future delivery of gold. However, most people who trade in paper gold don’t ever actually want to receive gold bullion. Not only are the contracts rarely ever delivered upon, but there’s also a lot of speculation that they never could be delivered on. That’s because there’s more paper gold out there than real gold bullion. The situation is even more pronounced with silver.

Paper gold exists so that gold traders can profit from gold prices going down. When they “go short” on gold, they essentially rent a gold stock from someone who already owns it, sells it at the price of gold today, then buy another gold stock and return it. If the price of gold has gone down, they’ve made a tidy profit. Many believe that the paper gold market is artificially keeping gold prices down, both by inflating the real quantity of gold that can be traded and allowing this type of short-selling.

Is Gold Bullion Better?

It depends on what kind of investor you are, but if you’re looking into gold because you are risk-averse and you need a conservative asset, yes, gold is better. While many criticize the expense of keeping gold, saying insurance and storage are expensive. But there are also management fees involved in a gold ETF. Plus, you face the counter-party risk of trusting your investment with a fund. When you buy gold bullion from a dealer like Silver Gold Bull, you’re putting your trust in the value of gold. When you buy into a gold ETF, you’re putting your trust in the fund’s management as much as anything.

As any investor knows, there’s never such thing as a guaranteed gain. But real gold bullion is about as close to it as you can get. Since modern gold trading began, it’s kept up with inflation in the long term (and done much better than either currency or equities over certain periods). For centuries before then, gold was the preferred way to store wealth. Physical gold bullion is one of the most durable materials on the planet. Thanks to safe and insured online gold buying from online gold companies like Silver Gold Bull, it’s never been safer to save on gold by going online. The risks of holding gold bullion are far lower than paper gold or gold mining stocks in the end. Trust your money in real gold bullion, not paper gold.

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Investors Agree: Gold And Silver Is The Way To Go

Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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Understanding Ideal Retirement Age Planning: Strategies For Timely Financial Freedom

When approaching retirement planning, it is widely recognized that starting early is a cornerstone of ensuring a secure and comfortable retirement. The notion of an ideal retirement age may vary individually, but there are certain age-related milestones that can guide individuals in maximizing their retirement benefits and minimizing penalties. Consistent saving from the beginning of one's career, coupled with a clear understanding of these milestones, is essential in laying a strong foundation for the future. Retirement planning is not a one-size-fits-all process; it involves a series of strategic decisions tailored to an individual's life stages and financial situation. Assessing how much do I need to retire on $100,000 a year in retirement is another critical component of the process. This involves not only saving but also making informed choices about retirement accounts and investments to ensure that the funds will grow adequately over time. Individuals must also be mindful of specific age benchmarks that impact retirement planning. For example, being aware of when they are eligible for certain government programs and the implications of withdrawing retirement funds at various ages can help in avoiding unnecessary fees and optimizing benefits. This strategic management of timing in relation to age is a key aspect of effective retirement planning. Determining Your Retirement Goals When planning for retirement, individuals must carefully assess their financial needs and health factors to establish a clear and realistic set of goals. Assessing Financial Needs A critical step in retirement planning is determining the amount of savings required to sustain one's desired lifestyle. Retirement calculators can be instrumental in estimating the necessary nest egg. These calculators assess current income, savings, and anticipated retirement age to provide a personalized savings goal. To tailor these estimates, individuals should consider: The proportion of current income they aim to replace during retirement is often recommended to be around 70-80%. Expected major expenses, such as housing and leisure activities. Potential sources of retirement income, including Social Security benefits, pensions, and annuities, which can reduce the reliance on personal savings. Evaluating Health and Life Expectancy Individuals' health status and life expectancy play a significant role in retirement planning. Those in good health may require a larger nest egg to support a potentially longer retirement period. Key considerations include: Life expectancy data to inform the duration of retirement savings should last. The cost of health care, generally rises as one ages, necessitates a larger reserve in the retirement fund. Long-term care insurance can mitigate the risk of high unexpected health-related expenses. By focusing on these aspects, individuals can establish a retirement plan that aligns with their unique circumstances and supports a financially secure and healthy retirement. Retirement Savings Strategies Optimal retirement savings strategies are centered on maximizing contributions to retirement accounts, understanding the significant effects of compounding over time, and balancing risk with investment choices. Maximizing 401(k) and IRA Contributions Individuals should aim to contribute the maximum allowed amounts to their 401(k) and IRA accounts each year. For 2024, the contribution limit for 401(k) plans is $20,500, with an additional $6,500 in catch-up contributions permitted for those aged 50 and over. IRAs offer a lower threshold, with a contribution limit of $6,000 and a $1,000 catch-up contribution. Taking advantage of these limits can significantly enhance one's retirement savings, especially when employers match a portion of 401(k) contributions. Understanding the Impact of Compounding The power of compounding cannot be overstated in the context of long-term investment. When returns are reinvested, they generate additional earnings over time. This effect is particularly potent for those who start investing early. For instance, investing just $100 a month starting at age 20 could lead to a substantial accumulation by retirement age, assuming a modest annual return. Balancing Risk and Investment A well-balanced investment portfolio blends various asset classes, such as stocks, bonds, and possibly other investments, to align with one's risk tolerance. Typically, stocks offer higher growth potential but come with increased risk, whereas bonds traditionally provide more stable, but often lower, returns. As individuals approach retirement age, they may consider shifting their investment focus towards more conservative options to preserve capital. Additionally, the use of a Roth IRA can be beneficial for tax-free growth and withdrawals in retirement, depending on an individual's tax situation. Navigating Government Benefits Government benefits for retirees hinge on correct timing and a thorough understanding of eligibility requirements. This section guides through Social Security and Medicare, two pivotal components of retirement planning. Optimizing Social Security Benefits To maximize Social Security benefits, individuals must consider their full retirement age (FRA), which varies from 65 to 67 depending on their birth year. Claiming benefits at the FRA ensures the full monthly benefit amount. However, one can begin receiving Social Security payments as early as age 62, but this results in permanently reduced benefits. Before FRA: Reduced benefits At FRA: Full benefits After FRA: Delayed retirement credits Strategically, delaying Social Security benefits beyond the FRA can increase the monthly payment by a certain percentage until the age of 70, offering one of the simplest ways to enhance one's retirement income. Planning for Medicare Eligibility Medicare eligibility begins at age 65, regardless of one's FRA for Social Security. Enrolling in Medicare on time is critical as late enrollment can result in penalties and gaps in coverage. Medicare includes several parts: Part A: Hospital insurance, usually premium-free if one has paid Medicare taxes for a sufficient number of years. Part B: Medical insurance, covering doctor's visits and outpatient services, which requires a monthly premium. Part D: Prescription drug coverage. Understanding the interplay between Medicare and other health benefits is also important, as it might affect decisions regarding employment benefits or Marketplace coverage. Individuals should review their options within the IEP or Initial Enrollment Period (IEP). It begins three months right before the month of their 65th birthday whereas it ends after three months. Conclusion: Preparing for the Unexpected In retirement planning, addressing potential risks and preparing for unforeseen healthcare expenses are crucial. They often advise individuals on incorporating health insurance and long-term care into their financial strategy and emphasizing the importance of an emergency fund and insurance options. Incorporating Health Insurance and Long-Term Care One must assess the risk of healthcare expenses and the necessity for long-term care. Health insurance is vital for managing costs associated with medical care during early retirement, especially prior to Medicare eligibility at age 65. Long-term care insurance can safeguard one's finances by covering expenses that traditional health insurance does not, such as in-home care or assisted living facilities. Assess Early Retirement Needs: Individuals retiring before age 65 should plan for their health insurance coverage to bridge the gap until Medicare. Long-Term Care Costs: Evaluate the potential need for long-term care services, which can quickly deplete retirement savings. Building an Emergency Fund and Considering Insurance Options An emergency fund is a backbone of financial security, acting as a buffer against unexpected expenses. They also stress considering various insurance options, such as life insurance, to mitigate financial risks to dependents. Furthermore, understanding penalty-free withdrawals from retirement accounts can provide greater financial flexibility in case of emergencies. Emergency Fund Size: Aim to save at least three to six months' worth of living expenses in an easily accessible account. Insurance as a Safety Net: Life Insurance: Provides financial support to beneficiaries in the event of the policyholder's death. Flexibility with Retirement Funds: Familiarize with conditions under which penalty-free withdrawals from retirement accounts are allowed, to avoid unnecessary financial strain during emergencies. Read Also: Smart Ways to Invest in Gold How To Start Your Investor Journey: 5 Credible Options To Explore What Investors Should Know about Investment in Gold and Silver Assets

10 Ways a Low Credit Score Can Negatively Impact Your Life

In 1989, the current credit system was created, and the world of finance was forever changed. Usually ranging from low scores of 300 to a perfect 850, the higher your number is, the more creditworthy lenders will consider you to be. That is why a low credit score can negatively impact your life. Here’s how. Rental Problems Property management organizations will review your credit before renting your home or apartment. If they find you have poor credit, they may refuse your application or ask you for an outrageous security deposit. Your credit score is tied to how trustworthy companies believe you are. Personal Loans The personal loan lender will run your credit report whether you are taking out a new loan or refinancing an already existing one. This will allow them to see your income to debt ratio. If you have a great score, you may get offers to consolidate your loans, or the lender could give you a loan with low rates. If your score is low, they can refuse your loan. Buying Cars Modern car loans are commitments for at least four years, and that means your ability to make monthly payments is critical to the company lenders. That is why auto lenders check credit scores before assigning interest rates that determine your total payback amount and monthly payments. Costly Utilities When you move to a new residence, your utility company will check your score when they open your account. If your numbers are low or your payment history is spotty, you will be asked to pay a hefty security deposit. If you miss payments, the deposit may be used to catch up. Credit Cards The interest rate issued on your credit card is often based on your FICO score. Although that may seem unfair, the card issuers have a scoring model that creates a report based on your numbers that allows them to determine your “pay-back” history. The higher your credit numbers are, the better your interest rate will be. House Buying Credit unions and banks take note of your credit score when you apply for a house loan. The lenders want to know you will pay back the money on time, so they look for scores equal to or greater than 500. However, if you want a low mortgage interest rate, you need a score higher than 750. Insurance Rates Most people don’t realize that insurance premiums are often based on credit scores. Although the insurance scores are different than FICO-based numbers, they are based on your ability to pay bills on time. Phone Expenses Unless you pay cash when you purchase your phone, you can expect the carrier to run your credit before you buy. They want to know you have sufficient income to make monthly payments and a credit history of paying your bills on time. Finding Work Yes, even employers are looking for individuals they believe are financially responsible, and that means they will often run a credit check before offering you employment. Some companies even look at credit standings before recommending promotions or raises. Self-Worth Credit is a double-edged sword in modern society. With all this pressure to maintain high credit numbers, failure to get scores over 700 can negatively impact your feelings of self-worth and cost you more money in interest every month. That means you will have less money to pay your bills. No wonder self-worth is sometimes tied to low credit scores. As you can see, the numbers associated with your credit are important in almost every part of your life. If your scores aren’t where you want them to be, check out one of the internet sites that explain how to raise that score. It is easier to raise your credit score than you think. Read Also: How to Dispute an Error on Your Credit Report Why Would I Need A Business Credit Report? Using Short-Term Loans to Help Rebuild Your Credit Score Revolving Debt Vs Installment Debt – Which Impacts your Credit Score

Here’s Why The Airtel Axis Credit Card Is The Perfect Credit Card For You!

Airtel Axis Credit Card has been gaining immense popularity lately, mainly due to its attractive features, such as welcome benefits, cashback offers, and so on. With these features, it has undoubtedly become an irresistible choice for many people. Let us understand its key elements in detail below: Read it and know what this is a best buy credit card. 1. Cashback Benefits Well, this has to be the best. Airtel Axis Credit cards provide several cashback benefits to its customers. They are as follows: No.SpendsCashback1For regular utility bill payments, for instance, electricity, gas, and so on through Airtel Thanks10%2Airtel mobile with broadband facilities, DTH, wifi bill payments via Airtel Thanks25%3Preferred merchants10%4Other spends and merchants1% Note: Cashback will not be applicable on fuel spends, EMI transactions, wallet loading transitions, purchases converted to EMI, jewelry purchases, rental payments, and so on. 2. Welcome Benefits It includes an Amazon voucher worth Rs. 500. Claim the welcome benefit by following the instructions mentioned below: Head straight to www. amazon.in/addgiftcardSubmit the code of the gift cardPress ‘Add to Your Balance’ With these steps, one can quite easily add the gift card amount to their account. In addition to this, you need to keep the following terms and conditions in mind as well: Every customer needs to make the first transaction within 30 daysIf a user ends up canceling, refunding, or choosing a cash transaction, they will not be eligible to receive the welcome benefits of Airtel Thanks Axis Credit cardsThe welcome voucher will be applicable for cards that have been charged with a joining fee of Rs. 500 and taxes on their Airtel Axis Bank Credit cardThe voucher will be sent to the registered mobile number or email ID within the first 30 days of meeting the requirements. Related: 5 Smart Ways to Boost your Credit Score 3. Complimentary Lounge Access The Airtel Axis Bank Lounge Access Program is based on the following entry types (rules of the program): Entry Type 1: The eligible cardholder does not have to pay any fee (exceptional than just a nominal swipe with the fee of Rs. 2 for the Visa facility and Rs. 25 for Mastercard options). Entry Type 2: The eligible cardholders need to pay a particular amount that will be displayed at the Participating Airport Lounge. The eligible cards have to be authenticated at the entry point by simply swiping a transaction for a small fee.The lounge access program will be applicable only till 31st August 2025. 4. Fuel Surcharge Waiver Another great thing about having an Airtel Axis Credit Card is the fuel surcharge waiver. So, come, let’s find out more about them in detail below: 1% fuel surcharge waiver on the purchase of fuel at every fuel station across our countryIt is valid on transactions between Rs. 400 and Rs. 4,000. However, the maximum benefit will be offered up to Rs. 500 per statementThe users will not receive a refund on GST charges on fuel surcharges. These key features make an Airtel Axis Credit card an exciting option for everyone. So, what are you waiting for? Get the card in these few steps mentioned below: Step one: Open the Airtel Thanks app and head straight to the ‘Shop’ section. Step two: Click on the ‘Airtel Axis Bank’ option. In doing so, you will be able to view a screen showing the benefits of your smartphone Step three: Scroll down below to tick the checkbox of ‘Terms and Conditions’ Step four: Once done, select ‘Check eligibility’ Step five: Then, follow the instructions as shown on the screen and submit your PAN Card details in the app Step six: Fill out your basic information Step seven: Enter the data about your employment Step eight: Enter your residential details Step nine: Complete the verification process, To sum up, an Airtel Axis Credit card is a great option for everybody. So, get one today and make the most of its attractive features. Also, install the Airtel Thanks App through the Android Play store or iOs app store, as it is one of the best recharge and bill payment apps that enable simplified online payments within minutes. Conclusion: When you are planning to have a credit card, there are certain types of things that you must analyze first? What are the credit limit and the security aspects of the cards? Usually, credit cards are always giving a better financial advantage. That means you will get the privilege of paying after actually buying the products. But my suggestion is when you get any credit cards, always go for the security options. As secure credit cards give you better safety and security even when you are facing card thefts. And Airtel axis credit cards are among the best, most secure cards. Additionals Ultimate Guide On Green Card RenewalHow to Dispute an Error on Your Credit ReportHow To Replace Your Social Security Card OnlineUsing Short-Term Loans to Help Rebuild Your Credit Score

Cut Risks And Guarantee Gains: Why Real Gold Is Attractive

Paper Gold vs. Gold Bullion :

Is Gold Bullion Better?

Tips For Reducing Car Insurance Costs

Your Simple Guide to GAP Insurance

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Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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Understanding Ideal Retirement Age Planning: Strategies For Timely Financial Freedom

10 Ways a Low Credit Score Can Negatively Impact Your Life

Here’s Why The Airtel Axis Credit Card Is The Perfect Credit Card For You!

Cut Risks And Guarantee Gains: Why Real Gold Is Attractive

Paper Gold vs. Gold Bullion :

Is Gold Bullion Better?

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Tips For Reducing Car Insurance Costs

Your Simple Guide to GAP Insurance

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I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

Leave a Reply Cancel reply

Popular

Follow Us

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