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10 unexpected alternative investments in luxury goods

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2 months ago

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Masterworks.io compiled a list of 10 unexpected luxury goods that are also used by investors as alternatives to traditional investments, according to sources such as Forbes and Harvard Business School.
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Take a note from financial advisers—don’t work for money, get your money working for you.

Investments in property are typical, as is purchasing hedge fund assets or even helping fund a startup venture that could become the next unicorn tech company. For many investors, once they’ve ticked off these boxes, they may be ready to look outside the box—or the stock market ticker, in this case—and consider some novel ways to diversify their portfolios and grow those three-comma-laden fortunes.

Masterworks.io compiled a list of 10 alternative investments in luxury goods, from different sources such as Forbes, Harvard Business School, Investopedia, and Investor Junkie. For the well-off, having an enviable collection of jewelry, vintage cars, and limited-edition toys and fashion accessories may just come with the lifestyle; but for investors, these top-dollar purchases can also be a smart investment when chosen wisely. 

Close up of vintage wine bottles.

l i g h t p o e t // Shutterstock

Vintage wine

A good bottle of wine is synonymous with the finer things in life, but it could also be a valuable avenue to more riches. If an investor knows their grapes, they could end up with a cellar of tasty investments—one bottle recently sold at a fundraising auction for a record $1 million.

Wine is notoriously difficult to appreciate for the uninitiated, and if you’re more likely to notice the “nose” and “legs” on a person than a glass of wine, you may wonder how you’ll navigate the wine world.

There are wine exchanges where the well-heeled can follow and invest in certain wines, online auctions, and more exotic options like buying wine before it is even sold, something called buying “en primeur.”

A cellar full of top-quality vintages will undoubtedly draw admirers of exquisite taste, but remember, actually tasting these investments will drastically lower their value.

Leather Gucci brand handbag on display.

yu_photo // Shutterstock

Handbags

Designer handbags convey status and have the benefit, to those of a certain class, of being expensive. Sotheby’s reports the average auction prices for new Birkin bags in 2022 ranged from $12,000 to $23,000. If it’s hard to believe that one purse could be so expensive, consider that the smallest bags can be the most expensive bags.

For some, it may be arguable whether buying a fashionably expensive accessory is “an investment” or just an excuse to elicit the envy of other high-fashion devotees. In this case, though, that handbag may be worth the trouble. A report from Credit Suisse and Deloitte found that the financial return on Chanel bags was an 11.8% increase in 2021, and 38% for Birkin bags.

A display of Star Wars action figures: R2-D2, Hans Solo and C-3PO.

Krikkiat // Shutterstock

Mint-condition toys

Many people have childhood memories of being given that toy they’d been dreaming about, or the crushing disappointment of finding out they weren’t actually going to get it. Now that those children have gotten older, some finally have the resources to collect the toys they had dreamed about it as a child. Nostalgia pulls in many collectors as they finally get ahold of a toy they couldn’t quite get their hands on in younger years, or rediscover a beloved childhood toy that was long lost.

The money can be pretty substantial, too: An original Barbie sold for $27,450, an Obi-Wan Kenobi action figure from “Star Wars” was won at auction for $76,700, and a Super Mario Bros. NES cartridge sold for $660,000.

Be warned, though: Not all that brings joy is valuable. If you’re still holding on to that so-called “ultra-rare” Princess Diana Beanie Baby in hopes of funding a new private jet, you should know one recently sold for only $9.

Still life of flowers in a vase by Jan van Kessel held by Sotheby’s attendant.

Tristan Fewings // Getty Images for Sotheby’s

Fine art

The wealthy have stored value in fancy art for millennia, and recent years are no exception. Wealthy people spent an average of $242,000 on art and antiques in the first half of 2021, according to Forbes.

Also, if you believe elegance is about condensing value into a small space, fine art is a fantastic option. “When Will You Marry,” a 40-by-30-inch work painted by Paul Gauguin in 1892, sold for nearly $300 million, or about $250,000 per square inch.

This sort of fine art purchase isn’t just for aesthetics. If you ship that artwork to your home, you could be facing millions in taxes, so an investor will likely ship it to a tax-free storage site to avoid that tax burden and keep those dollars safely in their bank account.

White glove presentation of luxury watches.

sutsaiy // Shutterstock

Jewelry and watches

The arrival of the pandemic coincided with a spike in the value of vintage watches, according to GQ. New watches have pulled in serious modern-day dollars as well, like this watch from Jacob the Jeweler that lists for $620,000.

For those who sneer at the hoi polloi snatching up wrist candy, maybe rare jewels are more their speed. A pink diamond called the CTF Pink Star sold for over $71 million and a blue diamond sold for over $57 million.

Unlike wine or artwork, these are items you can actually use on a regular basis. If new money shouts and old money whispers, there’s no better way to broadcast your recent largesse than these sparkling acquisitions.

Cropped close up of a black Rolls Royce.

PHOTOCREO Michal Bednarek // Shutterstock

Classic cars

What if you could combine the graceful lines of fine art with the fun of toys? If that experiential portmanteau is what you seek, then look no further than classic cars.

Classic cars rev up the nostalgia and envy of others, and they can have serious value. A rare 1955 Mercedes 300 SLR sold for over $143 million in 2022 and a vintage red 1962 Ferrari 250 GTO sold for $48 million.

Leave it to the common folk to show off their fancy new cars on the internet, like this Pagani Roadster, which sells for a paltry $4 million. You know the journey to make all your Champagne wishes and caviar dreams really come true starts with the throaty purr of a classic engine.

A collection of vintage baseball cards.

Abigail McCann // Shutterstock

Trading cards

The company Verified Market Research says the sports card trading market was worth over $7.8 billion in 2021.

Investing in trading cards can be risky, as they don’t have the same intrinsic value of something like a car—which, even if valueless on the market, could still provide transportation—and so their values can fluctuate more. But you needn’t worry about such trivialities, as the stakes are small compared to other options: according to Yahoo, only two trading cards have ever sold for more than $6 million each.

Comic books on display at a retail store.

Eudaimonic Traveler // Shutterstock

Comic books

Even the moderately deep-pocketed can invest in comic books.

The record price for a comic book was a trifling $5.3 million in January 2022 for “Superman #1.” But the returns can be handsome. “Amazing Fantasy 15,” the comic book with the first appearance of Spider-man, sold in 2011 for $110,000 and sold 10 years later for $3.6 million, which is more than 31 times than the original investment.

Pair of Air Jordan sneakers with black background.

phil_berry r // Shutterstock

Sneakers

While children from earlier generations may have been enamored with Superman, the younger set shifted their idolatry from figures of fantasy to heroes on the parquet floors of basketball courts.

Perhaps, you think, instead of chasing collectibles deemed valuable in the past, you could look to where future interest may lie. And a growing category of collectibles is sneakers.

Michael Jordan, a fellow member of the three-comma club, not only became an international superstar, but also helped usher in today’s fascination with sneakers. So, it is fitting that the most expensive sneakers ever sold were his, a $615,000 pair from the first-ever Air Jordan line, released after his rookie season.

A digital display showing Bored Ape NFTs on $100 dollar bills.

mundissima // Shutterstock

Digital art, also known as non-fungible tokens or NFTs

Long gone are ideas of money being valuable because it is tied to a commodity like gold. Today we live in a world where money has value because someone says it does.

What better way to wrangle growth in your portfolio than by taking the concept of value to a further extreme: taking a digital file and giving it value because a record somewhere says you own it. Welcome to the world of NFTs, or non-fungible tokens.

While NFTs are tied with the cryptocurrency market, and 2022 has seen some rocky times in crypto, you can be sure that you’ll be joined by your fellow fiscally elite. According to Gadgets360, as of 2021, nearly 80% of all NFTs are owned by just a few investors.

This material is provided for educational purposes only. It is not investment advice and should not be the basis of an investment decision.

This story originally appeared on Masterworks.io and was produced and
distributed in partnership with Stacker Studio.

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23 of 2023’s most gas-guzzling cars

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7 hours ago

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March 22, 2023

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Some cars cost more to fuel up. Stacker used data from the Department of Energy's fuel economy database to rank the 23 most gas-guzzling cars of 2023.
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Fluctuating gas prices have many feeling pain at the pump—but owners of gas-guzzling cars feel it more acutely.

Stacker used data from the Department of Energy’s fuel economy database to rank the 23 most gas-guzzling cars of 2023. Duplicate models of the same car line were excluded from this analysis: For example, the data includes information on the Rolls-Royce Ghost, Ghost Black Badge, and Ghost Extended, but this analysis only includes information for the base model, Ghost. Only 2023 model cars were considered, and those included here were released between May 2022 and February 2023.

Gas prices rise due to higher demand and higher costs for crude oil and they typically vary by season. In June 2022, the average price for a gallon of gas was over $5 in many states but fell as demand and crude oil prices sank.

New fuel efficiency standards may help your wallet when gas prices rise. In 2022, the National Highway Traffic Safety Administration released new standards that require manufacturers to have a fuel efficiency rating of 49 miles per gallon averaged across all of their models by 2026 and for every model by 2029.

Owning a gas guzzler won’t just cost you more at the pump—cars that get less than 22.5 miles per gallon also incur a “gas-guzzler tax,” which starts at $1,000 but climbs to $7,700 for cars that get less than 12.5 mpg. The tax is usually paid by the manufacturer or importer but is no doubt passed on to the customer in the purchase price.

Read on to see which new cars are the least fuel-efficient for 2023.

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The Aston Martin V12 Vantage at Goodwood Festival of Speed 2022 on June 23, 2022, in Chichester, England.

Martyn Lucy // Getty Images

Aston Martin Lagonda Ltd V12 Vantage

– Combined fuel economy: 16 miles per gallon
– Highway fuel economy: 22 mpg
– City fuel economy: 14 mpg
– Manufacturer: Aston Martin
– Engine size: 5.2 liters
– Cylinders: 12
– Transmission: Automatic (A8)

Mercedes-AMG SL 63 4MATIC+ Roadster V8 Biturbo at Brussels Expo on January 13, 2023, in Brussels, Belgium.

Sjoerd van der Wal // Getty Images

Mercedes-Benz AMG SL 63 4MATIC+

– Combined fuel economy: 16 miles per gallon
– Highway fuel economy: 22 mpg
– City fuel economy: 14 mpg
– Manufacturer: Mercedes-Benz
– Engine size: 4 liters
– Cylinders: 8
– Transmission: Automatic (A9)

The Audi R8 at the Sharnbrook Hotel in Bedfordshire.

Martyn Lucy // Getty Images

Audi R8 Coupe quattro

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 18 mpg
– City fuel economy: 13 mpg
– Manufacturer: Volkswagen
– Engine size: 5.2 liters
– Cylinders: 10
– Transmission: Automated Manual – Selectable (e.g., Automated Manual with paddles) (AM-S7)

An Audi R8 Spyder V10 quattro supercar in Milton Keynes, Bucks, United Kingdom.

Sue Thatcher // Shutterstock

Audi R8 Spyder quattro

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 18 mpg
– City fuel economy: 13 mpg
– Manufacturer: Volkswagen
– Engine size: 5.2 liters
– Cylinders: 10
– Transmission: Automated Manual – Selectable (e.g., Automated Manual with paddles) (AM-S7)

A 2017 Lamborghini Huracan Coupe at the 109th Annual Chicago Auto Show at McCormick Place in Chicago, Illinois, USA, on February 12, 2017.

Anadolu Agency // Getty Images

Lamborghini Huracan Coupe

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 18 mpg
– City fuel economy: 13 mpg
– Manufacturer: Volkswagen
– Engine size: 5.2 liters
– Cylinders: 10
– Transmission: Automated Manual – Selectable (e.g., Automated Manual with paddles) (AM-S7)

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The Lamborghini Huracan Evo Spyder in Knightsbridge, London.

Martyn Lucy // Getty Images

Lamborghini Huracan Spyder

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 18 mpg
– City fuel economy: 13 mpg
– Manufacturer: Volkswagen
– Engine size: 5.2 liters
– Cylinders: 10
– Transmission: Automated Manual – Selectable (e.g., Automated Manual with paddles) (AM-S7)

A Bentley Flying Spur driving on a road in Romania.

GabrielPreda.ro // Shutterstock

Bentley Flying Spur

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 19 mpg
– City fuel economy: 12 mpg
– Manufacturer: Volkswagen
– Engine size: 6 liters
– Cylinders: 12
– Transmission: Automated Manual – Selectable (e.g., Automated Manual with paddles) (AM-S8)

Chairman and Chief Executive of Bentley Motors Wolfgang Duerheimer presenting the Bentley Continental GT Speed model car during a preview of German carmaker Volkwagen Group on March 2, 2015.

FABRICE COFFRINI // Getty Images

Bentley Continental GT Speed

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 20 mpg
– City fuel economy: 12 mpg
– Manufacturer: Volkswagen
– Engine size: 6 liters
– Cylinders: 12
– Transmission: Automated Manual – Selectable (e.g., Automated Manual with paddles) (AM-S8)

A blue Chevrolet Corvette Z06 SUPER CHARGE P sports car parked in a garage.

Shang Saal // Shutterstock

Chevrolet Corvette Z06

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 21 mpg
– City fuel economy: 12 mpg
– Manufacturer: General Motors
– Engine size: 5.5 liters
– Cylinders: 8
– Transmission: Semi-Automatic (S8)

A Dodge Charger SRT Hellcat Widebody on display at the 112th Annual Chicago Auto Show at McCormick Place in Chicago, Illinois, on February 6, 2020.

Raymond Boyd // Getty Images

Dodge Charger SRT Widebody

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 21 mpg
– City fuel economy: 12 mpg
– Manufacturer: FCA US LLC (Chrysler)
– Engine size: 6.2 liters
– Cylinders: 8
– Transmission: Automatic (A8)

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The 2020 Cadillac CT5-V on display at the Houston Auto Show.

Floopin Photography // Shutterstock

Cadillac CT5 V

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 21 mpg
– City fuel economy: 13 mpg
– Manufacturer: General Motors
– Engine size: 6.2 liters
– Cylinders: 8
– Transmission: Manual (M6)

A red Dodge Challenger SRT Widebody standing on a secluded road by a field and forest.

JDzacovsky // Shutterstock

Dodge Challenger SRT Widebody

– Combined fuel economy: 15 miles per gallon
– Highway fuel economy: 21 mpg
– City fuel economy: 13 mpg
– Manufacturer: FCA US LLC (Chrysler)
– Engine size: 6.2 liters
– Cylinders: 8
– Transmission: Automatic (A8)

The Ferrari 812 Compitizione seen at Goodwood Festival of Speed 2022 on June 23, 2022, in Chichester, England.

Martyn Lucy // Getty Images

Ferrari North America Inc. 812 Competizione

– Combined fuel economy: 14 miles per gallon
– Highway fuel economy: 16 mpg
– City fuel economy: 12 mpg
– Manufacturer: Ferrari
– Engine size: 6.5 liters
– Cylinders: 12
– Transmission: Automated Manual (AM7)

A 2016 Bentley Continental GT Speed Convertible at the 108th Annual Chicago Auto Show at McCormick Place in Chicago, Illinois, on February 12, 2016.

Raymond Boyd // Getty Images

Bentley Continental GT Convertible Speed

– Combined fuel economy: 14 miles per gallon
– Highway fuel economy: 18 mpg
– City fuel economy: 12 mpg
– Manufacturer: Volkswagen
– Engine size: 6 liters
– Cylinders: 12
– Transmission: Automated Manual – Selectable (e.g., Automated Manual with paddles) (AM-S8)

The Rolls-Royce Phantom unveiled at the company's manufacturing plant and head office at Goodwood in West Sussex, UK.

Tim Ockenden – PA Images // Getty Images

Rolls-Royce Motor Cars Limited Phantom

– Combined fuel economy: 14 miles per gallon
– Highway fuel economy: 18 mpg
– City fuel economy: 12 mpg
– Manufacturer: Rolls-Royce
– Engine size: 6.7 liters
– Cylinders: 12
– Transmission: Semi-Automatic (S8)

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A white Chevrolet Corvette C06 Z06 Carbon 65 at AutoZürich car show.

Kaukola Photography // Shutterstock

Chevrolet Corvette Z06 Carbon Aero

– Combined fuel economy: 14 miles per gallon
– Highway fuel economy: 19 mpg
– City fuel economy: 12 mpg
– Manufacturer: General Motors
– Engine size: 5.5 liters
– Cylinders: 8
– Transmission: Semi-Automatic (S8)

A Rolls-Royce Ghost in a hotel parking lot.

Tricky_Shark // Shutterstock

Rolls-Royce Motor Cars Limited Ghost

– Combined fuel economy: 14 miles per gallon
– Highway fuel economy: 19 mpg
– City fuel economy: 12 mpg
– Manufacturer: Rolls-Royce
– Engine size: 6.7 liters
– Cylinders: 12
– Transmission: Semi-Automatic (S8)

A Rolls-Royce Cullinan in a desert in Dubai.

Camerasandcoffee // Shutterstock

Rolls-Royce Motor Cars Limited Cullinan

– Combined fuel economy: 14 miles per gallon
– Highway fuel economy: 19 mpg
– City fuel economy: 12 mpg
– Manufacturer: Rolls-Royce
– Engine size: 6.7 liters
– Cylinders: 12
– Transmission: Semi-Automatic (S8)

A Mercedes-Maybach S680 luxury sedan on display at Brussels Expo on January 13, 2023, in Brussels, Belgium.

Sjoerd van der Wal // Getty Images

Mercedes-Benz Maybach S 680 4Matic

– Combined fuel economy: 14 miles per gallon
– Highway fuel economy: 20 mpg
– City fuel economy: 12 mpg
– Manufacturer: Mercedes-Benz
– Engine size: 6 liters
– Cylinders: 12
– Transmission: Automatic (A9)

A Ferrari 812 GTS driving down a road in Italy during a parade.

Mau47 // Shutterstock

Ferrari North America Inc. 812 GTS

– Combined fuel economy: 13 miles per gallon
– Highway fuel economy: 15 mpg
– City fuel economy: 12 mpg
– Manufacturer: Ferrari
– Engine size: 6.5 liters
– Cylinders: 12
– Transmission: Automated Manual (AM7)

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A 2022 Ferrari Monza SP1 during the Concours of Elegance at Hampton Court Palace on September 2, 2022, in London, England.

John Keeble // Getty Images

Ferrari North America Inc. Ferrari Monza SP1

– Combined fuel economy: 13 miles per gallon
– Highway fuel economy: 15 mpg
– City fuel economy: 12 mpg
– Manufacturer: Ferrari
– Engine size: 6.5 liters
– Cylinders: 12
– Transmission: Automated Manual (AM7)

The Ferrari Daytona SP3 at Goodwood Festival of Speed 2022 on June 23, 2022, in Chichester, England.

Martyn Lucy // Getty Images

Ferrari North America Inc. Ferrari Daytona SP3

– Combined fuel economy: 13 miles per gallon
– Highway fuel economy: 16 mpg
– City fuel economy: 12 mpg
– Manufacturer: Ferrari
– Engine size: 6.5 liters
– Cylinders: 12
– Transmission: Automated Manual (AM7)

A Bugatti Chiron Sport at Brussels Motor Show in 2020.

Grzegorz Czapski // Shutterstock

Bugatti Chiron

– Combined fuel economy: 11 miles per gallon
– Highway fuel economy: 14 mpg
– City fuel economy: 9 mpg
– Manufacturer: Volkswagen
– Engine size: 8 liters
– Cylinders: 16
– Transmission: Automated Manual – Selectable (e.g., Automated Manual with paddles) (AM-S7)

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What questions should companies ask before going all-in on AI?

Problem-solving, data sets, and the consequences of getting it wrong.

Published

9 hours ago

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March 22, 2023

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From chatbots that answer our questions to emails that write themselves, AI is increasingly present in our lives — and the advent of startlingly sophisticated and headline-making tools like ChatGPT suggest that presence is likely to grow.

As it stands, the technologies are advancing at a seemingly breakneck pace, impacting sectors as diverse as public health and transportation. Given the spread, it’s easy to assume AI could be used by just about any company — and there are plenty of adoptees. 

The 2022 McKinsey Global Survey on AI reported in December that although it has stabilized in recent years, the proportion of organizations adopting AI in at least one business area has more than doubled since 2017.

Furthermore, “the average number of AI capabilities that organizations use has also doubled — from 1.9 in 2018 to 3.8 in 2022,” the report found.

But what are companies actually using AI for? And, what are some critical questions experts say companies should ask themselves before going all-in?

Let’s take a closer look.

Why AI is becoming increasingly useful

One reason AI is becoming especially useful is because by definition, it is the ability of machines to learn and make decisions based on data and analytics. And it should come as no surprise that companies now have access to more data than ever before. 

How much more? Well, Gil Press — a senior contributor with Forbes — reported toward the end of 2020 that in the 10 years that came before, “the amount of data created, captured, copied, and consumed in the world increased from 1.2 trillion gigabytes to 59 trillion gigabytes.”

That’s almost 5,000 per cent growth, Press said.

And with the help of emerging technologies like AI, the University of Pennsylvania’s Wharton Online explained, companies are now able to capture user data that can help them make informed business decisions.

“AI is no longer an experimental technology only used by select brands,” it said. “For many companies around the world, it has become a core part of their operations.”

AI: What is it used for?

So, how is AI being used by companies and organizations?

Common applications cited by Business News Daily include the detection of cyberattacks and threats, digital personal assistants that manage calendars, and customer service chatbots.

The latter is also where some companies are using ChatGPT. Bloomberg reported on March 1 that the technology has already found a home on apps for Instacart, where customers will be able to ask it questions about recipes; Shopify, where it will offer suggestions; and Quizlet Inc., where it will provide users with a “tutoring experience.”

In more specialized fields like healthcare, AI’s uses include helping to make potentially life-saving cancer diagnoses. The New York Times reported on March 5 that AI known as “computer-assisted detection” is helping to detect breast cancer missed by mammograms.

More generally, some popular uses for AI include service operations optimization, contact centre automation, customer service analytics, sales and demand forecasting, and risk modeling and analytics, according to the 2022 McKinsey Global Survey on AI.

And when it comes to deciding how to apply AI, Wharton Online reported that companies often focus on driving growth. 

That growth, according to Entrepreneur’s Auria Moore, is focused on three central areas: 

  • AI-powered analytics, which can allow businesses to gather information about users for better product creation.
  • Customer service satisfaction, where AI chatbots can provide answers to users faster.
  • Targeted digital marketing campaigns, which has AI granting marketers the ability to “enhance personalization at an individual level.”

Meanwhile, supply-chain management is where the highest-reported cost benefits from AI were identified in the McKinsey survey — while “the biggest reported revenue effects are found in marketing and sales, product and service development, and strategy and corporate finance.”

“The bottom-line value realized from AI remains strong and largely consistent,” the report said.

“About a quarter of respondents report this year that at least 5 percent of their organizations’ [earnings before interest and taxes] was attributable to AI in 2021, in line with findings from the previous two years.”

What to consider before going all-in

Given its vast possibilities for application and seemingly limitless potential, investing in AI could seem like a no-brainer for businesses. But some experts warn that it shouldn’t be.

“The first question to ask yourself when considering AI is what problems might be solved with the technology,” Inc.’s Ben Sherry reported last May.

While some companies would find AI genuinely useful — for example, Sherry said, an e-commerce company could use it to market specific products to customers based on data — others could wind up with an unnecessary expense.

“Ask yourself if automating part of your business has an easily identifiable benefit, or whether you have routine tasks that could easily be automated,” he suggested.

AI’s algorithms also need a lot of high-quality data to deliver valuable insights, Open Data Science (ODSC) explained in November 2021, and machine learning needs varied data to build its intelligence.

So before investing in AI, ODSC said, it’s critical to make sure your company has access to a sufficient amount of high-quality data sets.

“Without data and specifically, high-quality data, your AI investment is useless,” ODSC said. 

“It’s essentially like purchasing an expensive car with an incredibly powerful motor without any access to a fuel source.”

Finally, some experts say a critically important question for companies considering AI to ask themselves is: what are the consequences if it fails?

“AI models work through very sophisticated algorithms and statistical correlations, but there is always a margin of error. Does the company want to implement AI in a process with high variability and a low accuracy rate, or the opposite? What risks and how much investment would be lost if it didn’t work out?” industrial IoT company Nexus Integra asked in a blog post.

“Depending on which systems and data are available, the company must evaluate whether the accuracy of these models is expected to be high enough to proceed.”

And Ricardo Baeza-Yates, director of research at the Institute for Experiential AI at Northeastern University, wrote in an August 2021 piece for Forbes that “as the usage of AI grows exponentially, so have the number of AI incidents.”

As such, Baeza-Yates said companies looking to use AI should first ask themselves if they have deeply considered the direct, and indirect, impact of their product or service.

“Here, the accuracy of your model is irrelevant. What matters is the impact of the mistakes you make, even if they are few,” he wrote.“In cases where people were falsely accused by facial recognition systems, killed by driverless cars or unethically targeted for fraud, the damage was severe and lasting.”

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States with the most adults of retirement age still working

Published

1 day ago

on

March 21, 2023

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Stacker used 2021 data from the Bureau of Labor Statistics and the Census Bureau to find what share of each state's 65-and-over set still has a job.  
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For many Americans, the typical life plan has long been school, work, retirement at 65, and living comfortably. But not as many people are traveling that path anymore.

Nearly 19% of people of retirement age—65 years or older—remain in the workforce. In fact, Americans over 55 are the only age group that increased its labor force participation rate from 2001 to 2021. Projections expect that trend to continue into the next decade.

Many simply don’t want to retire because they enjoy what they do and don’t want to slow down. Some find that retirement doesn’t suit them and return to work to add meaning to their lives.

Others work because they can’t afford retirement. According to the Economic Policy Institute, roughly one-third of workers aged 55 to 64 don’t have access to a retirement savings plan. Those who rely solely on Social Security benefits may find they don’t cover all of their living expenses. Major unplanned expenses like medical bills can also keep people in the workforce.

Stacker used 2021 data from the Bureau of Labor Statistics and the Census Bureau to find what share of each state’s retirement-age population, those 65 and older, still participate in the labor force. Labor force statistics are calculated based on the civilian noninstitutional population, meaning those adults who are not incarcerated or in long-term medical facilities. It’s helpful to note that age 65 is the typical age for retirement, as it’s the age to qualify for Medicare.

Continue reading to find out whether your state has the most adults of retirement age still at work.

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Downtown Charleston street view.

Susanne Pommer // Shutterstock

#51. South Carolina

– Labor force participation among ages 65+: 14% (142,000 people)
– Population ages 65+: 18.6% (967,223 people)

Charleston skyline on the Kanawha River.

Sean Pavone // Shutterstock

#50. West Virginia

– Labor force participation among ages 65+: 14.8% (56,000 people)
– Population ages 65+: 20.7% (368,775 people)

Biloxi Lighthouse on a clear day.

Sean Pavone // Shutterstock

#49. Mississippi

– Labor force participation among ages 65+: 14.9% (73,000 people)
– Population ages 65+: 16.8% (496,945 people)

Tempe lake and downtown.

Tim Roberts Photography // Shutterstock

#48. Arizona

– Labor force participation among ages 65+: 15.1% (195,000 people)
– Population ages 65+: 18.3% (1.33 million people)

Birmingham skyline at dusk.

Sean Pavone // Shutterstock

#47. Alabama

– Labor force participation among ages 65+: 15.8% (137,000 people)
– Population ages 65+: 17.6% (885,809 people)

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Downtown Nashville in autumn.

Brian Wilson Photography // Shutterstock

#46. Tennessee

– Labor force participation among ages 65+: 16% (194,000 people)
– Population ages 65+: 17.0% (1.19 million people)

Downtown Louisville buildings and bridge.

f11photo // Shutterstock

#45. Kentucky

– Labor force participation among ages 65+: 16.1% (123,000 people)
– Population ages 65+: 17.0% (768,416 people)

Albuquerque residential suburbs.

turtix // Shutterstock

#44. New Mexico

– Labor force participation among ages 65+: 16.3% (65,000 people)
– Population ages 65+: 18.5% (391,797 people)

Little Rock skyline in afternoon.

Eduardo Medrano // Shutterstock

#43. Arkansas

– Labor force participation among ages 65+: 16.6% (91,000 people)
– Population ages 65+: 17.4% (525,153 people)

Seafront beach promenade in Fort Lauderdale.

mariakray // Shutterstock

#42. Florida

– Labor force participation among ages 65+: 16.7% (744,000 people)
– Population ages 65+: 21.1% (4.60 million people)

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Aerial view with early morning light in downtown Wilmington.

Real Window Creative // Shutterstock

#41. Delaware

– Labor force participation among ages 65+: 17.1% (35,000 people)
– Population ages 65+: 20.1% (201,551 people)

Pedestrians walking in downtown Ann Arbor.

Paul Brady Photography // Shutterstock

#39. Michigan (tie)

– Labor force participation among ages 65+: 17.2% (319,000 people)
– Population ages 65+: 18.1% (1.82 million people)

Cincinnati downtown skyline and bridge.

photo.ua // Shutterstock

#39. Ohio (tie)

– Labor force participation among ages 65+: 17.2% (373,000 people)
– Population ages 65+: 17.8% (2.10 million people)

Aerial view of Atlanta metro and highways.

Brett Barnhill // Shutterstock

#37. Georgia (tie)

– Labor force participation among ages 65+: 17.4% (279,000 people)
– Population ages 65+: 14.7% (1.59 million people)

Skyline of downtown Boise.

Charles Knowles // Shutterstock

#37. Idaho (tie)

– Labor force participation among ages 65+: 17.4% (56,000 people)
– Population ages 65+: 16.5% (314,010 people)

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Elevated view of Seattle Space Needle and downtown.

kan_khampanya // Shutterstock

#35. Washington (tie)

– Labor force participation among ages 65+: 17.8% (213,000 people)
– Population ages 65+: 16.2% (1.25 million people)

Chicago neighborhood buildings and city skyline on sunny autumn day.

marchello74 // Shutterstock

#35. Illinois (tie)

– Labor force participation among ages 65+: 17.8% (373,000 people)
– Population ages 65+: 16.6% (2.10 million people)

Portland cityscape from Pittock Mansion.

Josemaria Toscano // Shutterstock

#34. Oregon

– Labor force participation among ages 65+: 18% (148,000 people)
– Population ages 65+: 18.6% (789,896 people)

Pittsburg cityscape over the Allegheny River.

ESB Professional // Shutterstock

#33. Pennsylvania

– Labor force participation among ages 65+: 18.3% (466,000 people)
– Population ages 65+: 19.0% (2.46 million people)

Aerial view of The Gateway Arch and riverfront in downtown St. Louis.

Joe Hendrickson // Shutterstock

#32. Missouri

– Labor force participation among ages 65+: 18.6% (203,000 people)
– Population ages 65+: 17.6% (1.08 million people)

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Crowds of people walk across 3rd Avenue in Manhattan.

Ryan DeBerardinis // Shutterstock

#31. New York

– Labor force participation among ages 65+: 18.9% (669,000 people)
– Population ages 65+: 17.5% (3.48 million people)

Asheville skyline in the fall.

Derek Olson Photography // Shutterstock

#30. North Carolina

– Labor force participation among ages 65+: 19.1% (367,000 people)
– Population ages 65+: 17.0% (1.80 million people)

Canal Street streetcar in downtown New Orleans.

TFoxFoto // Shutterstock

#29. Louisiana

– Labor force participation among ages 65+: 19.3% (147,000 people)
– Population ages 65+: 16.6% (766,330 people)

Indianapolis skyline seen from canal walkway.

KYPhua // Shutterstock

#27. Indiana (tie)

– Labor force participation among ages 65+: 19.5% (219,000 people)
– Population ages 65+: 16.4% (1.12 million people)

Aerial view of the Bay Bridge in San Francisco.

TierneyMJ // Shutterstock

#27. California (tie)

– Labor force participation among ages 65+: 19.5% (1.18 million people)
– Population ages 65+: 15.2% (5.96 million people)

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People walk along the oceanfront boardwalk and resort area in Virginia Beach.

Sherry V Smith // Shutterstock

#26. Virginia

– Labor force participation among ages 65+: 19.6% (277,000 people)
– Population ages 65+: 16.3% (1.41 million people)

Oklahoma City downtown skyline in the late afternoon.

Sean Pavone // Shutterstock

#25. Oklahoma

– Labor force participation among ages 65+: 19.7% (126,000 people)
– Population ages 65+: 16.2% (645,174 people)

Aerial view of Austin skyline.

Canva

#24. Texas

– Labor force participation among ages 65+: 19.9% (788,000 people)
– Population ages 65+: 13.2% (3.89 million people)

Milwaukee cityscape with Art Museum with the Northwestern Mutual building.

Tony Savino // Shutterstock

#21. Wisconsin (tie)

– Labor force participation among ages 65+: 20.1% (205,000 people)
– Population ages 65+: 17.9% (1.05 million people)

Portland Head Lighthouse and coastline.

Joseph Sohm // Shutterstock

#21. Maine (tie)

– Labor force participation among ages 65+: 20.1% (63,000 people)
– Population ages 65+: 21.7% (297,101 people)

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Aerial view of Carson City skyline and capitol building.

Jacob Boomsma // Shutterstock

#21. Nevada (tie)

– Labor force participation among ages 65+: 20.1% (114,000 people)
– Population ages 65+: 16.5% (519,568 people)

Salt Lake City downtown street.

Canva

#20. Utah

– Labor force participation among ages 65+: 20.9% (79,000 people)
– Population ages 65+: 11.6% (388,120 people)

Elevated view of Grand Junction and the Colorado River.

Paul Gana // Shutterstock

#18. Colorado (tie)

– Labor force participation among ages 65+: 21% (182,000 people)
– Population ages 65+: 15.1% (880,167 people)

Aerial view of Jersey CIty at sunset.

f11photo // Shutterstock

#18. New Jersey (tie)

– Labor force participation among ages 65+: 21% (341,000 people)
– Population ages 65+: 16.9% (1.56 million people)

View of Missoula from Mount Sentinel.

Jon Bilous // Shutterstock

#17. Montana

– Labor force participation among ages 65+: 21.1% (49,000 people)
– Population ages 65+: 19.7% (217,298 people)

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Aerial view of Market Square and North Church in Portsmouth.

Wangkun Jia // Shutterstock

#16. New Hampshire

– Labor force participation among ages 65+: 22% (65,000 people)
– Population ages 65+: 19.3% (267,741 people)

Honolulu waterfront and cityscape.

MNStudio // Shutterstock

#13. Hawaii (tie)

– Labor force participation among ages 65+: 22.1% (62,000 people)
– Population ages 65+: 19.6% (282,567 people)

City of Jackson Hole and surrounding landscape.

C Model // Shutterstock

#13. Wyoming (tie)

– Labor force participation among ages 65+: 22.1% (23,000 people)
– Population ages 65+: 17.9% (103,822 people)

Cape Cod seashore viewed from Pilgrim Monument.

Wangkun Jia // Shutterstock

#13. Massachusetts (tie)

– Labor force participation among ages 65+: 22.1% (271,000 people)
– Population ages 65+: 17.4% (1.22 million people)

Aerial view of Grand Forks.

Jacob Boomsma // Shutterstock

#12. North Dakota

– Labor force participation among ages 65+: 22.7% (29,000 people)
– Population ages 65+: 16.0% (123,840 people)

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The Manchester Street Power Station smokestacks and Providence skyline.

Big Joe // Shutterstock

#11. Rhode Island

– Labor force participation among ages 65+: 22.9% (48,000 people)
– Population ages 65+: 18.3% (200,201 people)

Des Moines cityscape and sculpture park.

Grindstone Media Group // Shutterstock

#10. Iowa

– Labor force participation among ages 65+: 23.3% (130,000 people)
– Population ages 65+: 17.8% (567,581 people)

Aerial view of Annapolis and Statehouse.

Real Window Creative // Shutterstock

#9. Maryland

– Labor force participation among ages 65+: 23.4% (234,000 people)
– Population ages 65+: 16.3% (1.00 million people)

Downtown Minneapolis overlooking Mississippi River

ostreetphotography // Shutterstock

#7. Minnesota (tie)

– Labor force participation among ages 65+: 23.5% (215,000 people)
– Population ages 65+: 16.8% (959,272 people)

Pennsylvania Avenue and US Capitol.

Orhan Cam // Shutterstock

#7. Washington D.C. (tie)

– Labor force participation among ages 65+: 23.5% (20,000 people)
– Population ages 65+: 12.8% (85,615 people)

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River and Keeper of the Plains statue near downtown Wichita.

Sean Pavone // Shutterstock

#6. Kansas

– Labor force participation among ages 65+: 23.8% (116,000 people)
– Population ages 65+: 16.7% (489,676 people)

Skyline of downtown Hartford from above Charter Oak Landing.

Sean Pavone // Shutterstock

#5. Connecticut

– Labor force participation among ages 65+: 24.3% (164,000 people)
– Population ages 65+: 18.0% (649,172 people)

Mount Juneau and the city of Juneau.

Mary Swift // Shutterstock

#4. Alaska

– Labor force participation among ages 65+: 24.7% (24,000 people)
– Population ages 65+: 13.4% (98,410 people)

Aerial view of Lincoln in autumn.

Jacob Boomsma // Shutterstock

#2. Nebraska (tie)

– Labor force participation among ages 65+: 25% (77,000 people)
– Population ages 65+: 16.4% (322,833 people)

Montpelier city skyline.

haveseen // Shutterstock

#2. Vermont (tie)

– Labor force participation among ages 65+: 25% (36,000 people)
– Population ages 65+: 20.6% (133,173 people)

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Tourists visit Falls Park in Sioux Falls.

Steven Frame // Shutterstock

#1. South Dakota

– Labor force participation among ages 65+: 26.7% (Estimated 42,000)
– Population ages 65+: 17.6% (157,883 people)

Note: Labor force participation data for South Dakota seniors was not available from BLS, so Stacker used data from a South Dakota Department of Labor report. Stacker estimated the state’s 65+ labor force based on available Census Bureau data. Since the data comes from two sources, there may be some discrepancies in actual values and comparisons.

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