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Should seniors add gold to their retirement accounts this May?
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As more investors seek out ways to protect their portfolios against persistent inflation, precious metal investing has been in high demand, sending gold prices on an accelerated upward trajectory recently. For example, gold’s spot price hovered near $1,800 an ounce in early 2023, but the price of gold had grown to about $2,100 per ounce by March 2024. And, it has continued that upward climb in the time since, with the price of gold now hovering near $2,360 an ounce.
This sustained price surge, coupled with today’s economic challenges, has helped to attract a new wave of investors to gold. After all, gold has traditionally been viewed as an effective inflation hedge since its prices tend to rise when the cost of living increases. And, with inflation still stubbornly high despite the Federal Reserve’s efforts to temper it, more investors are now turning to gold as a store of value.
However, while gold investing does offer unique benefits, it isn’t right for every type of investor. And seniors, in particular, need to be more conservative about the investments they make before or during retirement in order to protect their hard-earned nest eggs. So does it make sense for seniors to add gold to their retirement portfolios this May? Let’s find out.
Discover the benefits of adding gold to your retirement portfolio here.
Should seniors add gold to their retirement accounts this May?
As seniors approach or enter retirement, managing their investment portfolios becomes increasingly crucial. In turn, there are a few important things for seniors to weigh when it comes to investing in gold this May.
The first is today’s inflationary environment. The current inflation rate is 3.5%, which is well above the Federal Reserve’s target of 2%, so seniors on fixed incomes may find their purchasing power diminished. But gold has traditionally helped protect investors’ portfolios against inflation, and can be especially useful in preserving the value of retirement savings over the long run. So, adding an appropriate allocation to gold could help protect seniors’ nest eggs from the corrosive effects of persistent inflation.
During periods of economic uncertainty, such as what we’re experiencing in the current environment, gold has historically maintained its value better than paper assets. This crisis insurance can provide peace of mind for retirees who are fully reliant on their investment portfolios for income. And, gold generally has low correlation with other asset classes like stocks and bonds, which can help reduce overall portfolio risk through diversification benefits.
But while gold can be an effective diversifier and inflation hedge, it typically does not generate income in the way that stocks, bonds or real estate can. It primarily tracks inflation over long periods. So, seniors seeking to enhance their retirement income may want to consider other income-generating investments alongside gold.
And while gold prices have historically grown over time, the price of gold can also experience significant short-term swings, exposing investors to volatility risk. This could be a concern for seniors with shorter investment horizons. There are also costs associated with buying, storing and insuring physical gold, which should be factored into the decision-making process.
Learn more about how gold could be a good addition to your asset mix now.
Why seniors should add gold to their retirement accounts now
While the invest-in-gold debate has merits on both sides, there are a few reasons seniors may want to consider adding gold to their portfolios this May:
Inflation protection
With inflation still running hot, every dollar of seniors’ nest eggs matters. Adding a 5% to 10% allocation to gold to their portfolios could allow seniors to better maintain their purchasing power over time versus just holding paper assets. The inflation hedge rationale becomes even stronger if you expect price pressures to persist.
Asset diversification
Senior investors are generally advised to take less risk as they get older in order to protect their retirement savings. Adding a small gold allocation to a stock/bond portfolio could improve overall risk-adjusted returns without dramatically increasing volatility. After all, an asset mix with low correlations across its holdings can produce higher risk-adjusted performance over full market cycles.
Wealth preservation
Gold’s status as “real money” makes it an ideal asset for preserving wealth across generations. Unlike paper currencies, which can lose value over time, gold has maintained its purchasing power for centuries. And, for seniors looking to leave an inheritance, gold could be an attractive way to pass on a portion of their retirement savings in a hard asset that can’t be inflated away.
Liquidity
Gold is one of the most liquid asset classes, enabling investors to buy and sell quickly at transparent prices. This liquidity provides flexibility for seniors who may need to access funds in a pinch for healthcare or other purposes.
The bottom line
While gold may not be an essential holding for all senior investors, it can potentially play a useful role for those seeking inflation protection, crisis insurance and improved portfolio diversification. With gold near historic highs and economic risks elevated, this could be an opportune time for seniors to initiate a small allocation to precious metals within their retirement accounts.
Of course, investors of any age need to carefully evaluate their financial situation, risk tolerance and time horizon before buying gold. But for retirees concerned about maintaining their lifestyle through turbulent times, gold may certainly be worth a look this May.
A new Barbie has joined Mattel’s lineup of inclusive dolls. The first “Diwali doll” was announced by the toymaker on Friday, a few weeks shy of the Hindu holiday of Diwali, also known as the festival of lights.
The festival, which lasts for five days, is marked on Western calendars to begin on Nov. 1, but some celebrations start on Oct. 31.
The doll, created in collaboration with fashion designer Anita Dongre, features traditional elements including the lehenga skirt, floral print and golden shoes, according to Mattel’s website. The doll is available at major retailers for $40.
“The look is infused with beauty and symbolism to rejoice in victory of light over darkness with contemporary silhouettes,” the description reads for the Diwali doll.
Lalit Agarwal, country manager for Mattel India, said in a news release that through the Diwali doll, the brand is hoping to showcase “India’s vibrant cultural heritage on a global stage while continuing to celebrate the power and beauty of diversity.”
Earlier this year, Mattel announced the first-ever blind Barbie doll and a Black Barbie with Down syndrome.
In addition, to celebrate International Women’s Day on March 8 and Barbie’s 65th birthday on March 9, the doll brand announced it was adding new dolls to its Role Models collection, based on real-life singers and actresses from around the world. They’re not for sale – a one-of-a-kind doll was made for each of the honored women.
The dolls are meant to introduce “girls to remarkable women’s stories to show them you can be anything,” according to Mattel.
Hollywood actor Keanu Reeves made his professional auto racing debut on Saturday at the famed Indianapolis Motor Speedway.
“The Matrix” star, who qualified 31st out of 35 cars, ran as high as 21st before a single-car crash a little more than halfway through the 45-minute race briefly stopped him in his tracks.
Darron Cummings / AP
The 60-year-old spun into the grass without a collision on the exit of Turn 9 when he had about 21 minutes of racing left. He re-entered the course and continued driving, signaling he was uninjured.
Reeves finished 25th.
The actor is competing at Indianapolis in the Toyota GR Cup, a Toyota spec-racing series and a support series for this weekend’s Indy 8 Hour sports car event. He has a second race on Sunday.
Darron Cummings / AP
He is driving the No. 92 BRZRKR car, which is promoting his graphic novel “The Book of Elsewhere.” He is teammates with Cody Jones from “Dude Perfect.”
Reeves has previous racing experience as a former participant in the Toyota Grand Prix of Long Beach in the celebrity race. Reeves won the event in 2009.
A passenger successfully landed a small plane on Friday after the pilot had a medical emergency, the Federal Aviation Administration said.
The twin-engine Beechcraft King Air 90 was traveling from Henderson Executive Airport in Las Vegas, Nevada to Monterey Regional Airport in California, with a pilot and one other person on board, the FAA said.
The pilot suffered an unspecified medical emergency while flying, the FAA said, forcing the passenger to take the controls and make an emergency landing at Meadows Field Airport in Bakersfield, California.
The Kern Fire Department told CBS News affiliate KBAX that firefighters were called to a report of a medical emergency on the plane. The pilot was reported to be “incapacitated,” the fire department said. Firefighters saw the plane approach and land safely, then “chased” the plane down the runway in emergency vehicles to meet it.
The FAA did not release the passenger or pilot’s identities nor give an update on the pilot’s condition. The pilot was taken to an area hospital by ambulance. The passenger did not report any injuries.
The FAA and the National Transportation Security Board will investigate the incident, the FAA said.
