That may be my all-time favorite exchange from a movie, and it's appropriate since I've had gold on the brain lately as we've researched a number of articles on alternative investments.
As we dug deeper on the topic it got me thinking about a particular question: What would you do if your client wants you to put some of their money in gold?
Little did we know that we'd be deluged with responses from industry insiders and advisors. The following are some of the highlights from their answers.
Gold is definitely something right now that is a buzzword. It's gone up so much in the recent past that many people are looking to incorporate it into their portfolio. I tell people, "Yeah, if you want to include that as a portion of diversification, go ahead." However, I encourage them to heed caution, as gold is like any other non-guaranteed investment vehicle: it's not 100 percent safe.
~Chuck Layman, Growsecure
I'm not a "gold bug." I have never invested in it and, personally, I would not advise a client on it. However, I would encourage anyone thinking of this to do their homework first and foremost. Find a professional who has years of experience investing in gold…not just investing (there is a difference). These pros are in it every day and can offer sage advice on when and when not to enter a position.
~Al Atha, Distribution Options, LLC
My answer is… "Why are you thinking of investing in gold? Have you invested in gold before? How much do you know about investing in gold?" Have a real conversation. Then based on their responses, help them in any way you can. I'm a great believer in having a team of experts (I trust) to help me and my clients.
~Lew Nason, Insurance Pro Shop
Less than 30 percent of our guys are securities licensed so we stay focused on safety. I believe most of our agents would inform the client it's not 100 percent safe so they don't recommend it.
~ Sam Kavitsky, president, The Revolution
I have told people that if this market and economy really does go off a cliff, then the odds are neither you nor I could possibly invest enough in any metal to make it last the rest of our life. A (little) investment for the average client will not possibly save us from that cliff. That is why I use strong insurance products from strong companies. Those insurance companies have outlasted depressions, world wars, recessions, investment scandals, etc. It's setting the insurance products right that is the key to make [income] last the rest of your life.
~ Mark Pruitt, CEO, President, Founder, Strategic Estate Planning Services, Inc.
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