Your retirement account is most likely the most important investment account you’ll ever have. The reality is that we work incredibly hard to retire; spending the vast majority of our lives working and saving so that we can enjoy our golden years. However, in times of geopolitical risk, unrest, and war, several people lose everything they’ve worked for; forcing them to work long into their retirement years.
The threat that geopolitical risk and unrest is becoming to retirement investments and how converting your 401k retirement plan and other qualified retirement accounts to gold can help protect everything you’ve worked for.
Is Geopolitical Risk A Danger To Your Retirement?
Russia vs. Ukraine
The first geopolitical issue on the chopping block today is the conflict between Russia and the Ukraine over the Crimea Peninsula. The Crimea Peninsula is property of Ukraine.
However, Russia claims that they have legal rights to the strategic land. As a result, months ago, Russia brought troops to the Crimea Peninsula. Since this move, we’ve seen military action from rebels and Russia and corresponding responses from Ukraine.
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In an effort to end the crisis, the western countries have imposed sanctions on Russia for their aggression toward Ukraine. In response, Russia refused to trade many food products with western countries; ultimately leading to more financial troubles for the Eurozone.
In the beginning of this conflict, it was a major part of the stories we heard in the news. While news coverage has died down a bit, the conflict between the two countries is very much alive.
Terrorist Organizations In The Middle East
Most of you reading this will remember the financial devastation brought on by the beginning of the “War on Terrorism”.
Unfortunately, terrorists are becoming more and more active. Every day when I watch the news or read the newspaper, I’m seeing more and more stories about the threat of ISIS and other major terrorist organizations.
These organizations, known for imposing their will through violence, plundering natural resources, and more are so active that President Barak Obama has given the signal to send 1,500 more American troops to Iraq. In my opinion, that’s a sign that even more political intervention is on its way soon.
Saudi Arabia and Oil Production Countries
In an effort to put pressure on United States energy producers and other oil production countries, Saudi Arabia has greatly reduced the price the country charges per barrel of oil.
As a result, oil prices are lower than we’ve seen in decades, which are costing the OPEC greatly every day. To combat the falling oil prices, Iran is expected to ask the OPEC to reduce Saudi Arabia’s oil production capabilities.
How To Protect Your Retirement from Geopolitical Risk
In times of geopolitical uncertainty, we generally see drastic drops in prices in the stock market. History also tells us that during these times the value of gold tends to skyrocket.
Therefore by converting your 401k to gold, you can hedge against market losses and even realize gains during bearish markets. The key here is to do so before geopolitical tensions reach a boiling point!
What about you? Are you worried about geopolitical risk to your retirement? What are you doing to combat geopolitical risk?