The extra risk in people’s retirement accounts might not have ended up there on purpose, Murphy said.
The S&P 500 index rose more than 200 percent over the last decade. As a result, stocks have taken on a greater role in many portfolios. “People love to see the market go up,” Murphy said, “but you need to watch your equity exposure, too.”
That diligence might be especially required of baby boomers, who are more likely to be “do-it-yourself” investors, Murphy said.
Indeed, baby boomers are the generation least likely to store their money in target-based funds, which automatically shift from aggressive to conservative investments as the person inches closer to retirement. Nearly 70 percent of millennials are invested in them, compared with 36 percent of baby boomers, according to Fidelity.
Be the first to comment