Chris Hall says that he hopes his investment portfolio will help him maintain his current living standards when he retires at 60.
Hall is due to receive an income from various company pensions at this age, but it will be significantly below his current salary. To help make up the shortfall, Hall has built up a diverse investment portfolio, part of which is directly invested in precious metals such as gold and silver.
“Despite working for 40 years with government and blue-chip companies, retirement at 60 will mean a 30% drop in my income,” he explained.
At age 67 Hall will be eligible for the State Pension which at current levels is worth £155 a week. Hall – who works as an infrastructure architect – says: “We enjoy a good lifestyle currently, with plenty of travel. A drop in income will impact these luxuries at the very time when we will have the free time to enjoy them.”
Although the price of gold is significantly below its 2011 peak, gold investors have seen strong gains over the past 15 years. In 2001 gold was around $355 per ounce, today it is valued at around $1,215 an ounce. Hall is hoping this long-term gain can help boost his income after he reduces his working hours.
Direct Gold Holdings
At the moment he invests directly in gold bullion, rather than buying ETFs, or funds which invest in gold mining shares.
“I invest directly through companies like BullionVault. They have made it easier and more cost effective for investors like me to buy gold and other metals directly,” he explained.
“I also invest to a lesser degree in silver, but this does not really offer the potential returns of gold unless we get another spike to $40-plus per ounce.”
Although it’s possible to now invest directly in gold through a SIPP, Hall says he does not use his pension, or ISA to invest in precious metals.