Mattson Financial Services - March 2018

F I N A N C I A L S E R V I C E S , L L C


March 2018

What toWatch for When Diversifying Your Portfolio A Solid-Gold Strategy

It’s no secret that a diversified portfolio is an important part of preparing for and living in retirement. As part of the process of diversification, you may be considering commodities like silver and gold. There’s a lot of information out there on holding gold. During inflationary times, it can be a great commodity to have. When inflation is down, gold tends to see mediocre returns. Like any other area of the market, there’s a certain amount of back-and-forth. Regardless of this, many companies want you to incorporate gold into your portfolio. When done correctly, this can be a relatively safe option, but some companies out there don’t do it in a secure way. They may actually be committing fraud, doing you and your portfolio a major disservice. What do I mean by this? Recently, there’s been a big push to get people to include gold in their IRAs. You may have seen the advertisements on TV or heard them on the radio. As a result, a lot of people have been turning some of their assets over into gold. The problem is, there are

some companies advertising “gold IRAs” that don’t actually have gold in any way, shape, or form. They aren’t really converting your assets into gold holdings. If you are thinking about converting some assets to gold — or you currently have gold in your IRA — verify the status of your account’s holdings with the third-party administrator (the person/company managing your IRA). Make sure your accounts are in order. It’s critical to do your homework to ensure the company you’re working with actually has gold. To avoid potential scams, always do business with a credible advisor who has insurance to protect you from fraud and other sketchy transactions that could harm your portfolio. I’ve said it many times before: We don’t know which company will come out as the next Enron or which company will fall into the trap of short-term thinking. We don’t know which company is currently falsifying their books to make themselves look better than they really are. We don’t know if a commodities trader is running a scam until victims come forward.

This is where the importance of a diversified portfolio comes into play. Whether you want to incorporate gold or other commodities into your portfolio, diversifying your holdings will mitigate the risk of losing your entire investment in one fell swoop. At Mattson Financial Services, we always have one party serving as custodian, another party serving as portfolio manager, and yet another party serving as your registered financial advisor. We have our own checks and balances in place to facilitate proper investing, to watch for risks, and to help you navigate the financial world. All you have to worry about is enjoying a happy, healthy retirement. If you have further questions about commodities and your portfolio, don’t hesitate to give us a call. We’re happy to answer those questions and make sure your financial future is on the right track. –Gary Mattson

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