As I write this, millions of Americans are heading out to the polls to vote in the 2022 midterm elections. As I continue to watch headlines regarding the possible economic impact of this year’s election, I get thinking about the future—specifically, the future I want to help create for my loved ones.
When we have nowhere else to turn, we have family. When we want to celebrate our victories and successes, we want our family there with us. And when we’re being driven up a wall…well, our family is likely behind that, too. The point is that family is important—for many of us, the most important thing in our lives. That’s why it’s so important to ensure that we’re doing all we can to protect the futures of those we love. And while many recent ads and headlines have been saying this from a political standpoint, I mean it in a strict financial sense.
The financial legacy we leave behind could shape the futures of our children and grandchildren.
Being a parent is an incredible responsibility. We work to shape the lives, ideals, and motivations of our children, all while having to accept our own fallibility and the mistakes we make along the way. But while none of us is perfect, I truly believe that what we do now can mean everything for future generations. Even a small financial legacy—paired with a good work ethic and the right knowledge to empower smart decisions—can become something much greater in time, especially if that legacy is well-diversified.
For example, one of the most popular forms of generational wealth is real estate. The equity we build in our homes can often be a great financial boon to our children when we pass on, retire and move, or simply hand over the keys when the time is right. But on November 7, 2022, CNBC reported that since the “historic run-up in home prices” that took place during the last few years, home equity has peaked and is now quickly receding. Since May 2022, according to CNBC, “The average borrower has lost $30,000 in equity,” with a total loss of around $1.5 trillion.
That’s not to say real estate doesn’t still present a viable and important option when it comes to creating a financial legacy—it simply means that real estate alone exposes that legacy to the risks associated with the ups and downs of a single market. That’s where diversification comes into play.
A well-diversified portfolio can mean the difference between a financial legacy and a financial legacy that lasts.
Our mission here at U.S. Money Reserve is to provide our clients with the tools and knowledge that may help them diversify their unique portfolios well enough to reach their desired level of risk exposure. Specifically, we provide them with knowledge of the precious metals industry and information about the benefits of owning physical precious metals or holding them within precious metals IRAs, and then we provide assistance in building a unique precious metals portfolio through the sale of government-issued gold, silver, platinum, and palladium.
By doing this, we’ve helped hundreds of thousands of clients across the country take steps toward creating a lasting financial legacy. Diversification is all about risk management: reducing overall risk exposure by spreading wealth across multiple assets and asset classes so that a shock in any one sector of the markets doesn’t mean financial ruin. And furthermore, diversification is a long-term strategy aimed at preserving and growing wealth over years, decades, and lifetimes—an important element in the continuation of generational wealth.
Stocks have had a turbulent year so far in 2022, with the S&P 500 Index dropping by more than 25% between its highest point on January 3 and its lowest point on October 12. And while it has bounced back somewhat, as of November 8, 2022, the Index remains down more than 20%, and many analysts are still predicting a recession for 2023.
Meanwhile, gold had dropped less than 5% so far in 2022 as of November 8, nearly reached its all-time high price in March of this year, and is expected to increase in 2023 by a double-digit percentage, according to a new forecast from Swiss bank UBS.
By balancing out our portfolios with assets that may respond differently to the same market factors, we may be able to provide our personal wealth—and thus the future wealth of our loved ones—with additional levels of protection.
Now is the time to start thinking about the future.
When it comes to building a better future for my loved ones, I hate to play the waiting game. Because it’s not a game to me—it’s everything I work and strive for every single day. The future isn’t just something that happens to us; it’s also something that we help create through our actions. That’s why I believe it’s so important to be proactive in diversifying my portfolio and building a financial legacy that I hope will stand the test of time.
I always try to remember that tomorrow is inevitable. Whether we want it to or not, tomorrow always comes, so it’s up to us to ensure that we’re prepared for whatever may happen. For me, gold is an important part of financial preparation. If you think precious metals might be a good fit for your own unique diversification strategy, I encourage you to give us a call to learn more today.
To learn more about the benefits of precious metals, CLICK HERE to request a FREE copy of our Gold Information Kit.