Boomers refusing to divest of stocks despite market pivot.

Boomers refusing to divest of stocks despite market pivot.
Nearly two thirds of US adults age 65 and older own equities versus about 50% before the 2008 financial crisis.
It’s commonly held that investors should pivot towards bonds as they get older.
For almost a decade, the stock market has been the only place to get good returns because interest rates were near zero.
The S&P 500 has returned more than 700% since it bottomed in March 2009 versus the Bloomberg US Aggregate Bond index’s return of 46% over that same period.
Now, interest rates have risen dramatically which makes bonds a more attractive investment.
It shouldn’t be surprising that individuals that have seen high stock market returns report higher financial risk tolerance and are more likely to invest in the stock market.
Many baby boomers started investing during the rise of index funds which provided diversified, passive investment options. The Vanguard 500 launched in 1976 and was the first index mutual fund. The first exchange traded fund was the SPDR S&P 500 ETF which launched in 1993.
Employer funded pensions began to decline in the 1980s and the focus shifted towards self directed investments.
Most baby boomers didn’t get a defined benefit plan and were responsible for their own retirement.
Tags:
retirement, retirement planning, retirement stocks, dividend stocks, retirement income, best dividend stocks for retirement, retirement dividend stocks, best stocks for retirement, dividend stocks for retirement, stock market, best retirement stocks to buy now, stocks, retirement stock portfolio, early retirement, dividend stocks to buy for retirement income, retirement savings, best dividend stocks, retirement investing, investing in retirement