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3 times seniors should invest in gold (and 3 times they shouldn’t)

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Global finance
As a senior, it can make a lot of sense to add gold to your portfolio — but it won’t always be the right move.

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While inflation has shown signs of cooling in recent months, as of the latest report, it was still 1% higher than the Federal Reserve’s 2% target rate. As a result, the Fed has kept its benchmark rate locked at a 22-year high. This, in turn, has kept the cost of borrowing elevated at a time when the price of consumer goods also remains high.  

Amid the current economic environment, many seniors are turning to gold to help hedge against the repercussions of high inflation. But while gold can help seniors protect their wealth while offering other unique benefits, a gold investment isn’t always the right solution. Depending on your circumstances and investing goals, there are times in which it makes sense for seniors to invest in gold — and other times when it may not make much sense. 

So when is investing in gold as a senior a smart move — and when should you avoid doing so? Here’s what you should know.

Ready to add gold to your retirement portfolio? Compare your options and get started here.

3 times seniors should invest in gold

Here’s when experts say you may want to consider investing in gold as a senior.

1. When you want to hedge against inflation

Investing in gold as a senior can be a smart way to hedge against high inflation.

“Gold is generally a hedge against very high inflation or a major credit event like we saw in 2007 and 2008,” says Doug Carey, certified financial analyst and president of WealthTrace, a retirement planning software solution. 

Seniors who want to protect against the pitfalls of these types of events might consider adding gold to their portfolio as insurance, Carey says.

Learn more about the benefits of gold investing online now.

2. When you want to diversify your investment portfolios

Investing in gold can also reduce the risk of your portfolio, according to Carey. 

“Gold typically has a low correlation with other asset classes like stocks and bonds, meaning its price usually does not move along with those of traditional financial assets,”  says Carey. In turn, he thinks this diversification [adding some gold to your portfolio] can help reduce overall volatility and losses in times of crisis.

That said, you generally shouldn’t put all of your retirement portfolio into gold. 

“I recommend no more than 5% for seniors since gold can be risky and produces no income,” Carey says. 

Rick Miller, a financial planner and investment advisor at Miller Investment Management, agrees. 

“As a diversification from an equity-heavy portfolio, gold has merit,” says Miller. That’s because, according to him, gold doesn’t move as the stock markets do. As a result, he thinks purchasing gold can help smooth out the overall return of an investment portfolio.  

3. When you want to hedge against market declines

Gold and other precious metals can also help protect your portfolio against market declines, experts say. That, in turn, could have utility as a means of exchange in severe economic conditions.

If hedging against market declines is your goal, Miller recommends 1-ounce gold bars as the asset to invest in. 

“They are small, easy to store, and function as a means of exchange,” says Miller. 

That makes these small gold bars the vehicle of choice when investing in gold for this purpose, according to Miller.

3 times seniors shouldn’t invest in gold

While purchasing gold as a senior can be beneficial, there are times you should avoid investing in this yellow metal, experts say. This includes:

1. When you need liquidity

While gold is considered a liquid asset in certain regards, investing in gold may not be the best option if you’re a senior who wants to invest in a highly liquid asset — meaning that you want to easily sell your investment for cash.

“Gold is not a liquid asset like cash or certain stocks, and converting it to cash quickly might mean getting a lower price for it than they can get later if they take more time,” Carey says.

That said, there are types of gold assets that offer more liquidity than others. For example, if you’re looking for liquidity and want some exposure to gold, you may want to consider purchasing gold stocks. In general, gold stocks may be more easily converted to cash, especially compared to certain types of physical gold.

2. When you have a small portfolio

Investing in gold may only make sense as a senior if you have a large investment portfolio, some experts say.

“Having a position in gold is probably most suitable for investors with a reasonably substantial portfolio since gold has not matched stock indexes for growth over time,” says Miller. 

3. When you need regular income

When you need income from your investments, there may be better investing options than gold, experts say. 

“Unlike dividend-paying stocks or interest-bearing bonds, gold doesn’t produce regular income,” Carey says.

Benjamin Hooper, certified financial planner, founder and wealth manager at Comal Wealth Management, has a similar perspective. 

“While gold is traditionally viewed as an inflation hedge, its effectiveness is often overstated compared to stocks. Unlike stocks, which benefit from economic growth and innovation, gold does not generate income or dividends,” Hooper says.

Gold prices can also be volatile, especially in the short term, Hooper says, because they can be influenced by factors unrelated to inflation. In turn, this could pose a risk for seniors who need reliable income during retirement.

The bottom line

Investing in gold as a senior could be a smart move if you want to hedge against inflation or diversify your portfolio to lower your risks, experts say. If you need regular income during retirement, though, you may want to consider investing more in other assets, like dividend stocks or bonds. 

“Keep in mind that gold does not perform as well as the stock market, so understand your objectives and act accordingly,” says Miller. 

If you need help figuring out whether adding a small percentage of gold to your portfolio makes sense, it could benefit you to consult a financial professional who can make recommendations based on your complete financial picture.



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EPA finalizes stricter rules limiting kids’ exposure to lead paint

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Washington — Two weeks after setting a nationwide deadline for removal of lead pipes, the Biden administration is imposing strict new limits on dust from lead-based paint in older homes and child-care facilities.

A final rule announced Thursday by the Environmental Protection Agency sets limits on lead dust on floors and window sills in pre-1978 residences and child-care facilities to levels so low they can’t be detected.

Paint that contains lead was banned in 1978, but more than 30 million American homes are believed to still contain it, including nearly 4 million homes where children under the age of 6 live. Lead paint can chip off when it deteriorates or is disturbed, especially during home remodeling or renovation.

“There is no safe level of lead,” said Michal Freedhoff, EPA’s assistant administrator for chemical safety and pollution prevention. The new rule will bring the United States “closer to eradicating lead-based paint hazards from homes and child care facilities once and for all,” she said.

The EPA estimates the new rule will reduce the lead exposures of up to 1.2 million people per year, including 178,000 to 326,000 children under age 6.

Lead is a neurotoxin that can irreversibly harm brain development in children, lower IQ, cause behavioral problems and lead to lifelong health effects. It also affects other organs, including the liver and kidneys.

The new rule, which takes effect early next year, targets levels of lead dust generated by paint. Currently, 10 micrograms per square foot is considered hazardous on floors, and a concentration 10 times that high is considered hazardous on window sills. The new rule brings both of those levels down to no detectable lead.

The proposed rule also would reduce what level is allowed when a lead-abatement contractor finishes work on a property where lead has been identified as a problem. These levels would be 5 micrograms per square foot on the floor and 40 micrograms per square foot for sills.

Individuals and firms that perform abatement work must be certified and follow specific work practices. Testing is required afterward to ensure dust-lead levels are below the new standards.

Environmental justice and public health experts called the EPA rule long overdue, noting that lead poisoning disproportionately affects low-income communities and communities of color.

“We can all breathe a little easier now that the EPA has significantly lowered its dust lead standard to protect children,” said Peggy Shepard, co-founder and executive director of WE ACT for Environmental Justice, a New York-based advocacy group.

Shepard, who serves on the White House Environmental Justice Advisory Council, said public health experts have long understood there is no safe level of lead in a child’s blood, yet New York state leads the nation in cases of children with elevated blood levels. Black children in Harlem living below the poverty line are twice as likely to suffer from lead poisoning as poor white children, she said.

The U.S. government has gradually been reducing the standard for what counts as poisonous levels of lead in children’s blood, with the most recent change occurring in 2021. But the EPA rule marks an effort to take more proactive action.

“When you are relying on the blood lead level in children to indicate whether there is lead in the environment, we are basically using the children as canaries in the mine,” said Dr. Philip Landrigan, a Boston College biology professor who directs the school’s Program for Global Public Health and the Common Good.

The National Child Care Association said when the lead rule was proposed last year that it could hurt many financially struggling child-care centers – especially those in low-income neighborhoods, where the facilities tend to be older. Without appropriate federal funding, the rule could push small, local child-care centers to close, the group said.

Earlier this month, the federal Department of Housing and Urban Development announced $420 million in grants to remove lead hazards from homes, including HUD-assisted homes. Additional HUD grants will continue to be available to help with lead paint removal, the White House said.



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Indiana man gets life in prison for 1975 killing of teen who “fought for her life”

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An Indiana man has been sentenced to life in prison for the 1975 killing of a 17-year-old girl who was found dead in a river after she failed to return home from her job at a church camp.

A Noble County judge sentenced Fred Bandy Jr., 69, on Tuesday to a life term with the possibility of parole in Laurel Jean Mitchell’s August 1975 death. The Goshen man was convicted of first-degree murder this month following a bench trial.

A message was left seeking comment from Bandy’s attorney Wednesday.

He was charged along with John Wayne Lehman, 69, of Auburn, Indiana, last year in Mitchell’s killing. Lehman was sentenced to eight years in prison this month after pleading guilty to conspiracy to commit murder.

Mitchell was found drowned in the Elkhart River on Aug. 7, 1975, the morning after she failed to return home in North Webster, about 140 miles northeast of Indianapolis.

laurel-jean-mitchell-screenshot-2024-10-24-062940.jpg
Laurel Jean Mitchell

WTTV


Although Mitchell’s cause of death was ruled as drowning, police say the autopsy report suggested that she “had fought for her life,” so police initiated a murder investigation.

Prosecutors charged Bandy and Lehman in Mitchell’s killing in February 2023, nearly a half-century later.

Lehman said in an August deposition that Bandy raped Mitchell and drowned her. Lehman denied participating in the rape or the murder and said his fear of Bandy kept him from trying to stop the crimes, The News-Sun of Kendallville reported.

According to a probable cause affidavit, investigators said they believed Bandy and Lehman “forcibly, deliberately drowned” Mitchell after taking her to the river in Bandy’s car.

A DNA profile was obtained in recent years through testing on Mitchell’s clothing, which was saved along with other evidence collected in 1975. According to the affidavit, Bandy voluntarily provided a DNA sample in December 2022 to state police, and testing determined he was 13 billion times “more likely to be the contributor of the DNA in Laurel J. Mitchell’s clothing than any other unknown person.”

The DNA testing came after three people who were teens at the time of Mitchell’s killing tied Bandy and Lehman to the crime based on incriminating comments they had made about her death, the affidavit states.

CBS affiliate WTTV reported that because Bandy had to be sentenced by 1975 standards, the potential outcomes were either life with the possibility of parole or the death sentence, prosecutors said. The state’s death penalty as of 1975 was later declared unconstitutional, ruling out that option.



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New Zealand airport with 3-minute cap on farewell hugs “surprised how much global interest” there’s been

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Wellington — A New Zealand airport has imposed a three-minute limit on farewell hugs, sparking a worldwide debate over how long to cling on for a cuddle. Bosses at the international airport in the southern city of Dunedin say they were surprised by the viral response to their new rule in the car drop-off zone.

“To keep things moving smoothly, we’ve installed new signage, including the ‘Max hug time 3 minutes’ sign,” said airport chief executive Daniel De Bono. “It’s our way of being a little quirky and reminding people that the drop-off zone is for quick farewells.”

“And don’t worry,” added De Bono, “just a 20-second hug is enough to release oxytocin and serotonin, the happy hormones that boost well-being, so three minutes is plenty of time to say goodbye and get your dose of happiness.”

New Zealand Airport Hugs
A sign informing of a time limit for visitors to the passenger drop-off area outside Dunedin International Airport, in Momona, New Zealand, Oct. 8, 2024.

Sarah Soper/AP


People who want a longer hug can use the parking lot, where the first 15 minutes are free, he added.

The hug restriction made headlines worldwide — and prompted a divided online response.

“I’m just glad there’s no minimum hug time. A ‘see ya soon’ suffices,” one woman commented on the airport’s Facebook page.

“Hug Police!? This is just weird! Hugs are proven to have many benefits not to mention mental health,” said another poster.

The small airport, which was used by fewer than 1 million passengers last year, said it had imposed the hug time limit in September, with little initial reaction.

“We have just been surprised how much global interest there has been,” said the airport’s marketing and communications executive, Sarah Soper.



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