Let me share with you briefly the retirement story of a dear client of mine. Her husband tragically died at age 53. He was a successful businessman, growing a company from the ground up with three partners. His former partners agreed to buy out his widow for $1,350 per month (a fair market price at the time) for 25 years starting in 1989.

In 1989, $1,350 per month was more than adequate to meet all of her needs and expenses. But over the years, the U.S. Treasury helped inflation to do what inflation does, and by 2007, $1,350 was no longer adequate to satisfy her basic needs. The knee-jerk reaction would be to suggest that they underpaid her for the buyout. However back in 1989, this truly was a fair price. The difficulty is that the dollar did not fulfill its purpose of being a store of value or its purpose as real money. Instead, the purchasing value dropped like a stone falling in water.

Unfortunately, our dollar is not a store of value and is proven to lose  with every day that passes.

What if the three partners had agreed to pay her the equivalent $1,350 per month in silver? That would have amounted to approximately 250 ounces at that time. Over the years, her monthly payment would have fluctuated between $1,350 – $9,500 per month (averaging $4,200 monthly). The amount she would have received in silver would have kept stride with the $1,350 purchasing power in 1989.

The expectation of the original agreement was that she would be set for life financially. And if she would have been paid in silver, this expectation would have been met, since the purchasing power of her monthly payment would have been protected.

Unfortunately, her money, and your money, is backed by nothing. If you are on a fixed income or looking to retire on a fixed income, you may see yourself in deep trouble, just like my client was. Where can you get that stable income that you will need for retirement? Inflation-adjusted annuities can be part of the solution, but tend to be costly. Our advice is allocating, at minimum, 10% of assets into physical gold and silver.

A Gold and Silver Backed Retirement Plan:

Many retirees are fixated upon their goal of X dollars inside their portfolio to retire upon.  Rather than focusing on an amount, focus on a fixed amount of purchasing power. It is extremely imperative that you start putting physical gold and silver aside that will retain its current purchasing power, and therefore, continue to meet your needs no matter what the future holds.

Social Security, (that is, if it is still around) will cover a small portion of your future obligations. However, just like the story of my sweet client, that purchasing power lessens with every monthly check you will receive. If you are planning on retiring for 20 years, that is 240 months that must be accounted for. The question is asked: how much guaranteed purchasing power do you want to store away for those future months?

Maybe you are already in retirement. How many more years do you plan on being around for?

Are you “banking” on a pension plan and planning for it as a viable option? Ask yourself this question, “How can my former employer pay a retired employee 20-30 years past their retirement date?” The answer is that they cannot unless they have the option that the U.S. Treasury has. Your former employer cannot simply print more dollars, but our government is able to pay its former employees by doing just that — simply printing more money. That immediately brings us back to the purchasing power story.

Notice I am not talking about “Armageddon” or “Chicken Little.” I am talking about a serious and predictable issue that must be addressed. If “Doomsday” does happen, that will present other issues. Our purchasing power decreasing month by month and day by day is a real issue that needs to be addressed.

Consider the founding fathers of our great nation. They actually included gold backing into our Constitution. What did they know that we know longer can see? They were not near-sighted when they constructed the United States of America. Instead, they were far-sighted in their attempt to avoid monetary collapse, which is now a reality.

Here is where we stand with our U.S. dollar:

1)    Our purchasing power is less every minute.

2)    Our national debt exceeds our GDP. With current government spending and shortfalls, within six years, we only have the ability to pay for the interest.

3)    Our U.S. dollar is fiat – meaning it is backed by nothing.

The solution for your retirement:

Determine how much you would like to supplement monthly and multiply that over your expected years of retirement. For example, if you want to supplement $1,000 per month for the next 20 years, you would need to own $240,000 in physical gold and silver. Remember, by purchasing all $240,000 in gold and silver in today’s terms, that would allow your supplement to keep up with dissolving purchasing power.

Consider taking our recommendation to invest into our private, non-reported pre-1933 silver dollars. They enable easy liquidation in small, monthly amounts just like our fractional (1/4 ounce) pre-1933 gold coins.

You need to view gold and silver as wealth insurance, or in this case, “retirement insurance.” Do not try to time markets or prices. It simply does not matter. Silver is currently 65% off of the all-time highs set six years ago. I would rather be a day or two early to the party than a day or two late.

In any case, the bottom line is that you take these steps to secure the purchasing power that will protect your wealth and ensure your needs are always met.