: More than one-third of baby boomers have too much stock-market exposure. What’s the right amount?

by | Aug 12, 2023 | Stock Market

As baby boomers enter retirement, it might be time to pump the brakes a bit on stockholdings. Currently, 37% of baby boomers have more equity holdings than Fidelity Investments would recommend for their stage in life, said Mike Shamrell, vice president of thought leadership at Fidelity. Baby boomers are those born between 1946 and 1964 and are nearing or in retirement.

The average percentage of equity baby boomers have in their Fidelity retirement accounts is 65.8% as of the second quarter. This number is within the suggested range of equity between 47% to 67%, according to Fidelity. However, the note of caution goes to the 37% of baby boomers with heavier equities exposure. They may need to rebalance after recent gains in the market, Shamrell said. The S&P 500 is up about 17% so far this year. Derek Pszenny, co-founder of Carolina Wealth Management, said retirees need to weigh all the risks such as the longevity risk of outliving your money, inflation, and what’s a sustainable amount of money to withdraw from your retirement account.  “Investing is time-dependent, not necessarily age-dependent,” Pszenny said. “The more you withdraw, the more equity exposure you need to have.”  The amount of equity …

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