Tag Archives: Young
Young People Are Loading Up on Stocks
NEW YORK (TheStreet) — After suffering through a decade of volatile markets, many young people have soured on stocks. Investors who were born from 1970 through 1979 have less than 40% of their assets in stocks, according to a study by Investment Company Institute. In contrast, investors who were born from 1950 through 1959 retain faith in stocks, keeping more than 50% of assets in equities.
Seeing the data, pundits have worried that a generation may have abandoned the stock market. But that assessment is too bleak. While some investors have undoubtedly turned away from trading, young people have been increasing the stock allocations in their 401(k) plans. The transition to equities has occurred steadily in recent years — even during the financial crisis. According to a study by Vanguard Group, participants in their early 20s had 41% of 401(k) assets in equities in 2003. By 2010, savers in their early 20s had 85% of assets in stocks.
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Young People Better at Retirement Planning
NEW YORK (MainStreet) — When it comes to socking away money for retirement, young Americans are putting their parents and grandparents to shame.
That’s the conclusion of a survey by brokerage firm TD Ameritrade, which asked Americans young and old what they are doing to fund their retirement. The good news is that most of us are at least saving something for retirement: A solid 85% of Americans have either a 401(k) or an IRA, and 36% have both.
A survey finds that the offspring of baby boomers are better at saving money for retirement than their elders.
But when it comes to actually taking advantage of the full range of retirement options out there, there’s a big generational divide at work — and for once it’s young Americans who are proving to be more responsible than their elders. Just 16% of working baby boomers are funding both an IRA and a 401(k), compared with 25% of members of Generation Y and 23% of Gen Xers. “Mature” Americans (defined as those born between 1930 and 1945) fared even worse, with just 9% saying they funded both accounts.
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