Why Gold is STILL an Inferior Investment Choice, Ep #82

<p>One of my listeners completely disagreed with what I said in episode #41, “<a href= "https://retirementmadeeasypodcast.com/thinking-about-investing-in-gold-think-again-ep-41/" target="_blank" rel="noopener">Thinking of Investing in Gold? Think Again</a>.” He was risk-averse and viewed gold to be a good hedge against inflation. He brought up the declining value of the dollar and how gold would react to that. In this episode of Retirement Made Easy, I’ll share the research I provided to this gentleman and why I STILL don’t believe gold belongs in your retirement portfolio. </p> <p> <<<<<<<<<<<<<<<PLAYER CODE GOES HERE>>>>>>>>>>>>>>>></p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[5:22] A conversation about gold</li> <li>[6:43] The average return on gold</li> <li>[12:08] Most 401ks don’t include gold</li> <li>[17:30] Pensions: lump sum or annuity?</li> </ul> <h2>The average length of retirement</h2> <p>The average age an American retires is 62. How long are people usually retired? Life expectancy tables of 62-year-old non-smoking couples show a joint life expectancy of age 92. That’s just the <em>average</em>. With that data in mind, you have to plan for a 30-year retirement. </p> <h2>The average returns on gold</h2> <p>Of all the possible 30-year rolling periods, how has gold performed against bonds and stocks? The article, “<a href= "https://seekingalpha.com/article/4297590-rolling-returns-gold-vs-stocks-and-bonds" target="_blank" rel="noopener">Rolling Returns: Gold Vs. Stocks And Bonds</a>,” found that since 1973 there wasn’t a single 30-year period where gold outperformed stocks or bonds. But what about a 40-year period? </p> <p>Kiplinger’s article, “<a href= "https://www.kiplinger.com/slideshow/investing/t026-s001-investing-in-gold-10-facts-you-need-to-know/index.html" target="_blank" rel="noopener">Investing in Gold: 10 Facts You Need to Know</a>,” found that from March 1980 through March of 2021, the S&P 500 returned 12.1% annualized. A 10-year treasury note delivere