No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, October 2, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Financial Planning

How extra stock exposure helps older Americans in retirement

by TheAdviserMagazine
3 weeks ago
in Financial Planning
Reading Time: 4 mins read
A A
How extra stock exposure helps older Americans in retirement
Share on FacebookShare on TwitterShare on LInkedIn



Older Americans hold a bigger share of stocks than they’d like, according to the Center for Retirement Research — but that could work in their favor.

Researchers say older Americans tend to be more pessimistic about the stock market than historical data suggests they should be. In surveys conducted by the University of Michigan Health and Retirement Study, which tracks roughly 20,000 Americans over time, about 60% of respondents on average expect the market to rise. Historically, however, the market has increased around 75% of the time.

That view of the market extends into investors’ desired stock allocations. In a CRR analysis of Americans ages 50 to 78 with $100,000 or more in investible assets, investors say they want to allocate 37% of their portfolio to stocks, on average.

READ MORE:Most advisors admit they don’t fully understand — or manage — cryptoWhy older Americans are stuffing their IRAs right nowThe big changes to HSAs and what they mean for planningMeet Financial Planning’s 10 Rising Stars of 2025

In practice, however, their actual allocations are higher. Other research on a comparable group of investors shows that 43% to 48% of their portfolios are invested in stocks, well above their stated preference.

Researchers at the Center for Retirement Research say that dissonance could be driven by the growing popularity of target date funds.

“The low level of desired holdings is consistent with households’ overly pessimistic views of stock returns, and the higher level of actual holdings likely reflects the default allocations in 401(k) plans — namely target date funds,” the researchers wrote. “In short, people seem to be holding more equities than they want, but that pattern is probably good for them.”

Financial advisors tend to agree with that view.

“If they held what they preferred, they probably wouldn’t get very far,” said Ed Snyder, co-founder of Oaktree Financial Advisors in Carmel, Indiana. “This is why they need an advisor. To guide them to what they should be doing because the client doesn’t really know what they should do.”

Weighing performance over preferences

With living expenses and life expectancy on the rise, advisors say allocating more of a portfolio to equities is essential for near-retirees and retirees alike.

That approach represents a distinct departure from previous norms, in which retirees largely moved their portfolios over to fixed income products with the goal of preserving their nest egg, according to Crystal McKeon, the chief compliance officer at TSA Wealth Management in Houston.

“One of the problems with this mentality is the extension of the life of humans over the last few decades,” McKeon said. “The average lifespan has extended from the high 60s in the 1950s to almost 80 years of age today. With those changes, retirees will have to live on that money over a decade longer than previous generations. This means that adding some stocks can help investors keep their money growing so that they don’t outlive their money.”

When working with a client, creating that allocation isn’t as simple as moving money around in an account, advisors say.

Charles Kyle Harper, founder of Harper Financial Planning in West Columbia, South Carolina, said that when he recommends a certain stock allocation for a client, he first spends the time educating them on why he’s recommending that particular approach.

“I’ve found that the apprehension to owning equities as investors age comes down to mostly a lack of education and not necessarily an opposition to risk,” Harper said.

Still, if a client isn’t comfortable with a heavier stock allocation, Harper said he won’t force a plan on anyone.

“If they are still resistant, a plan the client is comfortable with and will stick to is better than an amazing plan they won’t,” Harper said. “This is where the art of financial planning bests the science of financial planning. Having open and honest conversations with clients about whether or not they are comfortable is key to designing a long-term, durable plan.”

When the ‘best’ plan isn’t the best plan

While researchers suggest that holding more stocks than preferred could benefit older Americans, advisors working directly with clients say the reality isn’t so simple.

Hardik Patel, founder of Trusted Path Wealth Management in Santa Rosa, California, said that no matter how good a plan is on paper, it only works if the client can stick to it.

“A key part of investing is ensuring that a portfolio aligns with an investor’s risk tolerance and capacity through proper asset allocation,” Patel said. “If an investor takes on more risk than they are comfortable with, there’s a real chance they could panic and sell during a downturn, which can have serious consequences.”

Intentionality, in other words, is everything.

While vehicles like target date funds may do a better job of stock allocation than investors would on their own, their “autopilot” approach to investing is far from ideal, according to Patrick Huey, founder of Victory Independent Planning in Camas, Washington.

“Asset allocation shouldn’t be left to chance or inertia,” Huey said. “Every client’s mix of stocks and bonds should be the result of a thoughtful plan based on real numbers: spending needs, longevity risk and personal circumstances — not just a gut feeling or a default setting.”



Source link

Tags: AmericansExposureExtrahelpsOlderretirementstock
ShareTweetShare
Previous Post

Communitarian Anarcho-Capitalism | Mises Institute

Next Post

Investors in mad rush commit Rs 1.2 lakh crore for 3 IPOs seeking just Rs 2,400 crore

Related Posts

edit post
What ‘Jobs’ Have You Given Money (That Shape How You Give Advice)?: Kitces & Carl Ep 174

What ‘Jobs’ Have You Given Money (That Shape How You Give Advice)?: Kitces & Carl Ep 174

by TheAdviserMagazine
October 2, 2025
0

The profession of financial advice often centers on the logistical, logical outcomes of financial planning – spending down retirement assets,...

edit post
6 Halloween Destinations to Treat Yourself

6 Halloween Destinations to Treat Yourself

by TheAdviserMagazine
October 1, 2025
0

Halloween isn't just about neighborhood trick-or-treating these days. It's also becoming a popular time to travel, with people heading to...

edit post
Judge nixes ex-Well Fargo broker’s tax write-off claim

Judge nixes ex-Well Fargo broker’s tax write-off claim

by TheAdviserMagazine
October 1, 2025
0

When Francisco Gil was an advisor at Wells Fargo, he twice used a tax form for independent contractors to try...

edit post
Quad-A gets record attendance, despite DEI pushback

Quad-A gets record attendance, despite DEI pushback

by TheAdviserMagazine
October 1, 2025
0

Hundreds of Black financial advisors, wealth management professionals and students attended the Association of African American Financial Advisors Vision Conference...

edit post
Advisor guide: navigating the government shutdown

Advisor guide: navigating the government shutdown

by TheAdviserMagazine
October 1, 2025
0

A standoff between President Trump and congressional Democrats over federal spending has forced a government shutdown, disrupting services and rattling...

edit post
Ten Grocery Items You Can Get for Less than  shipped!

Ten Grocery Items You Can Get for Less than $2 shipped!

by TheAdviserMagazine
October 1, 2025
0

Looking for amazing deals on grocery items? We’ve got our top 10 favorite that are currently under $2 shipped right...

Next Post
edit post
Investors in mad rush commit Rs 1.2 lakh crore for 3 IPOs seeking just Rs 2,400 crore

Investors in mad rush commit Rs 1.2 lakh crore for 3 IPOs seeking just Rs 2,400 crore

edit post
Could Joint Ownership Cost Your Heirs More Than Probate?

Could Joint Ownership Cost Your Heirs More Than Probate?

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Axis Securities gives Nifty target of 25,500, names Bharti Airtel and Lupin among top 15 picks

Axis Securities gives Nifty target of 25,500, names Bharti Airtel and Lupin among top 15 picks

0
edit post
Jimmy Kimmel suspension hurts brand

Jimmy Kimmel suspension hurts brand

0
edit post
What’s New at Canopy: Fall 2025

What’s New at Canopy: Fall 2025

0
edit post
Financial Selection and Investor Herding: Lessons from Evolutionary Biology

Financial Selection and Investor Herding: Lessons from Evolutionary Biology

0
edit post
Nuclear fusion was always 30 years away—now it’s a matter of when, not if, fusion comes online to power AI

Nuclear fusion was always 30 years away—now it’s a matter of when, not if, fusion comes online to power AI

0
edit post
Axos ONE Review – Best High-Yield Checking & Savings Bundle?

Axos ONE Review – Best High-Yield Checking & Savings Bundle?

0
edit post
Nuclear fusion was always 30 years away—now it’s a matter of when, not if, fusion comes online to power AI

Nuclear fusion was always 30 years away—now it’s a matter of when, not if, fusion comes online to power AI

October 2, 2025
edit post
Expert breaks down the 2025 tax changes retirees should know

Expert breaks down the 2025 tax changes retirees should know

October 2, 2025
edit post
Jimmy Kimmel suspension hurts brand

Jimmy Kimmel suspension hurts brand

October 2, 2025
edit post
Stay Out of the Doghouse: 9 Lessons for Smarter Finances

Stay Out of the Doghouse: 9 Lessons for Smarter Finances

October 2, 2025
edit post
Can BNB, Solana, and Dogecoin Prices Continue Climbing in October?

Can BNB, Solana, and Dogecoin Prices Continue Climbing in October?

October 2, 2025
edit post
Maximizing Your Savings Account Interest Rate: Top Strategies

Maximizing Your Savings Account Interest Rate: Top Strategies

October 2, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Nuclear fusion was always 30 years away—now it’s a matter of when, not if, fusion comes online to power AI
  • Expert breaks down the 2025 tax changes retirees should know
  • Jimmy Kimmel suspension hurts brand
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.