See why WHEN you get returns matters as much as the returns themselves. The same average return can lead to vastly different outcomes.
Both scenarios have this exact same average return
Good returns early, bad returns later
Bad returns early, good returns later
Gold's low correlation to stocks means it often rises when stocks fall. During the 2008 crisis, gold gained 5.5% while stocks lost 37%. A 10-15% gold allocation can protect your portfolio from devastating early losses that compound over decades.
This "portfolio insurance" is particularly valuable in early retirement when sequence of returns risk is highest.
Sequence of returns risk is one of the most misunderstood threats to retirement security. It demonstrates that when you receive investment returns matters just as much as the returns themselves.
Strong returns early grow your portfolio significantly. Even when bad years come later, you're withdrawing from a much larger base. Your wealth survives.
Poor returns early shrink your portfolio while you're still withdrawing. By the time good years arrive, you're growing a much smaller base. Your wealth suffers.
Two retirees with identical portfolios and identical 30-year average returns can end up with vastly different outcomes. One might have $2 million left; the other might run out of money in year 20. The only difference? When the good and bad years occurred.
Gold often moves opposite to stocks during crashes, providing a buffer against early sequence risk.
Maintain enough cash to avoid selling stocks during downturns.
Reduce withdrawals by 10-20% during market downturns to preserve capital.
Guaranteed income from bonds can cover essential expenses regardless of stock performance.
Starting at 3.5% instead of 4% provides a significant buffer against poor early returns.
Even modest income in early retirement reduces reliance on portfolio withdrawals.
A Gold IRA provides crucial protection during the vulnerable early years of retirement. When stocks crash, gold typically holds its value or rises, giving you a stable asset to draw from instead of selling stocks at a loss.
Protect your retirement from devastating early losses. Augusta Precious Metals can help you add gold to your IRA as insurance against sequence of returns risk.