The Role of Gold in a Portfolio According to Graves

John Graves, ChFC, CLU, an independent financial advisorJohn Graves is the founder of The Renaissance Group, independent financial planners and Registered Investment Advisors in Ventura, CA. He is also the author of The 7% Solution: You Can Afford a Comfortable Retirement.

Appearing on the New York Markets Live show, Graves explains how he believes gold should comprise 5-8% of a typical portfolio. Because “nobody can predict the future…and if there is a catastrophic event and the stock market dives gold will go through the roof. Gold is the ultimate portfolio insurance tool. I don’t know if things will be wonderful or horrible. If things go horrible I know that gold will increase significantly in value.”
Graves’ 3 step rule to plan for a comfortable retirement is simple:
  1. Pay yourself first. Make contributions to your retirement account, get matching funds from your employer if you can. With the tax BullionVault's New York Markets Livebenefits of a retirement account, you’re getting a 45-47% return before it’s even invested, says Graves;
  2. Eliminate debt. Don’t incur debt. If you have debt, pay it off;
  3. Give back to your community. There are no monetary rewards but, says Graves, giving back to the community enriches you in other ways and it is inherent in the fiber of society.
John Graves also talks about the screen he uses to identify stocks to buy. He looks for low debt-to-equity (70%), a consistent dividend yield of 5% or more, price-to-book of 1.5, average trading volume of more than 50,000 for liquidity. He places a 10% stop loss on stock trades.

Popular Business Internet Radio with New York Markets Live on BlogTalkRadio