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Let's face it. Those people lucky enough to reach the age of 90 and have a need for investing guidance are the lucky ones among us. In fact, they face a win-win situation in that they have little need for long-term returns AND can enjoy their retirement lifestyle to the max.
But what about those nonagenarians who want to get the most bang for their buck in terms of interest, potential yield, capital growth, a hedge against inflation, and financially sound investing? Fortunately, there are several excellent choices for older folks who desire all those things.
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Finding the Best of the Best
Our team combed through the dozens of options available to 90-year-old investors, evaluating each one based on multiple criteria. People in this age category have a unique set of needs, as noted above. That's why three investments stood out, with precious metals taking the top spot. Bank CDs and dividend stocks, particularly the "aristocrats," rounded out the top three investments for 90-year-olds.
Rankings With Pros & Cons
Consider the following breakdown for the top three, in which we give a bit more data about the number one choice, precious metals, but delineate the basic facts, pros, cons, and conclusions for each item on the list.
Top 3 Investments for People Age 90 and Over
#1. Precious Metals
The four precious metals represent a unique opportunity for older investors who want to protect their capital, have access to excellent returns in a short period of time, have a powerful hedge against inflation, and diversify their entire portfolios with hard assets that are not susceptible to the ups and downs of the stock market.
For so many who choose gold, silver, platinum, palladium, or a combination of the four, PMs are a true safe haven investment when the economy is not performing well. This is a relevant point in the 2020s as equities markets are on edge, and even the most reliable corporations are showing signs of financial weakness. Many older citizens who choose this tangible asset are attracted to it for its historical reputation as a reliable store of value.
Why do people over ninety seek out gold, silver, and other PMs to protect their wealth? Here's a representative listing of reasons, along with a couple of possible downsides of precious metals:
These are our Top3 Precious Metals Companies:
#2. Certificates of Deposit (CDs)
CDs are issued by banks and have a long history of being a go-to parking place for older people who want the security of knowing the exact interest rate, time period, and size of their investment. For example, people in all age categories use CDs to earn a fixed amount of interest for various time intervals, usually six months, a year, or longer, on a specific amount of money. Of course, there's a trade-off in terms of certainty vs. ROI (return on investment). The general pros and cons of CDs for adults who are ninety years of age and older include the following:
#3. Stocks That Pay Dividends
For decades, people past middle age have turned to dividend-paying shares for cash flow and regular income on their retirement capital. Among these stocks, the so-called aristocrats have a long, stable history of paying regular dividends, making them the preferred choice among those who want to park at least some of the money in the stock market.
The major downside of dividend shares is that, no matter what their history, the corporations could decide to stop the payouts at any time and for any reason. Plus, when share prices decline, as they often do, the dividends also go down because they are based on a percentage of the share price. A quick look at the good and bad points of these instruments offers a clear picture.
Final Thoughts: Recent Events Make PMs Look Even Better
On the whole, precious metals outshine other possible investment vehicles for people who are well past retirement age, especially those in their nineties. But nothing happens in isolation, even decisions about money. Recent events in the financial world have made gold, silver, platinum, and palladium even more attractive to people of all ages.
For example, recent disruptions in the cryptocurrency sector have given many people a reason to wait until the crisis passes before considering crypto as a possible short-term play. Likewise, the U.S. government's attempts to install a digital dollar are wreaking havoc on bond and currency markets. And the volatile stock market doesn't seem to be on the road to recovery, which makes any equity shares something of a gamble in 2022/23.
Finally, the real estate market is in turmoil, removing one of the only remaining areas in which older investors felt confident. Given all those facts, along with the low returns on CDs and uncertainty of the securities markets, precious metals stand apart from all other asset classes for 90-year-olds and many other groups of investors.