Turnkey Retirement Vol. 20

Turnkey Retirement Newsletter: Volume 20

Precious Metals

Typically considered the most common safe haven from stock market volatility, fiat currency devaluation, etc., gold and silver are foundational to money all over the world. There are many reasons why someone would consider more exposure to metals in times like this, but here are a few.

• Gold and silver are considered safe-haven assets. During economic instability, investors often flock to these metals as they tend to retain their value, unlike stocks or fiat currencies, which can be highly volatile.

• Precious metals historically serve as a hedge against inflation. When the value of currency decreases, the price of gold and silver typically rises, preserving purchasing power.

• Unlike stocks or bonds, physical gold and silver are tangible assets. This tangibility provides a sense of security, as the metals cannot be hacked, erased, or defaulted on.

• Holding physical bullion diversifies an investment portfolio. Diversification reduces risk, as precious metals often perform well when other investments falter.

• Gold and silver are highly liquid assets. They can be easily bought or sold in most markets around the world, providing quick access to cash when needed.

• The demand for gold and silver is global, encompassing uses in jewelry, industry, and as investment. This widespread demand supports their value during economic downturns.

• Physical gold and silver do not carry counterparty risk, meaning their value does not depend on any entity's ability to fulfill a contractual obligation, unlike paper assets such as stocks or bonds.

Self-Storage

Self-storage funds may be a quality option to consider during recessions due to their resilience and stability in economic downturns. Several specific reasons drive increased demand for self-storage during recessions. 

• Individuals facing financial difficulties often downsize their living spaces to reduce costs, creating a need to store excess belongings. 

• Businesses may also downsize or close offices, requiring storage for equipment, inventory, and documents. 

• Higher rates of unemployment and job relocations lead people to move in with family or friends, necessitating storage solutions for their possessions. 

• During economic uncertainty, people tend to hold onto their belongings rather than sell them at a loss, further boosting the need for storage. 

This consistent and even heightened demand for storage space ensures a steady revenue stream for self-storage facilities during recessions.

Treasury Direct

Maybe you think that Warren Buffett is a pretty smart guy and his recent move to liquidate BILLIONS and move to a treasury-heavy position is one you want to model. 

So you go onto your preferred broker-dealer platform and… Oh No!!… they’ve suspended (I mean “coincidentally are experiencing major technical difficulties for”) retail investor’s accounts. Don’t say it can’t happen because it literally did this morning. 

Lucky for you, you can go straight to the source and purchase treasuries on your own. This eliminates one more step in the process and another middleman between you and your money, which the traditional system loves to put in place. 

There’s something different about investing your money into something that holds tangible value.

A piece of land, an ounce of gold, ownership of a company that really improves your local community…

There are many different strategies out there, and a time and place for everything, but wealth made much more sense to me when I began looking at it in terms of actual assets, not just numbers on a screen.