Community Conversation: Stock-Loving Boomers and the ‘Wealth Paradox’

Financial Advisors


“What I do is say, ‘With your financial plan, you need $25,000 a month to live,'” said Eric Sweeney, wealth manager at Steward Partners. rice field. Now, since you are retired and your portfolio is declining and you need to write down the principal, what if that amount is cut in half?” You can’t build a CD ladder with 5% or more returns. ” Readers were enthusiastic in their comments. Below is an excerpt from the comments section of the article.

Mickey Kashen: “For the purposes of this article, overholding stocks means that you do not have enough secure funds to meet your spending needs, including possible emergencies, cars, travel, and other anticipated expenses. There’s no clear distinction between being limited.Personally, I have more retirement income than I spend, I have a home without a mortgage, and I have no debt.I have my next car ready for emergencies I have a small cushion plus enough in absolutely safe bonds and CDs for my purchases for the next few big holidays the rest is stocks and the stock market has now dropped in half Even so, it’s still better than if you hadn’t had money in stocks in the last 10 years.”

Alan Nathanson “All of this illustrates the reality that each person’s financial life is unique and there is no one-size-fits-all solution.”

George Simment He added, “I’m glad to see they’re not focusing on wood percentages. The top priority is income, which may not be a priority for young people at all, but is very important for older people.” Important, once income is secured, equities diversification with a bit more exposure to commodities and (horrible) bitcoin makes sense, so it could be 60-40 or 10-90 I can’t take the risk of being one percent wrong when it comes to the income I want.”

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Morris Armstrong: “Baby boomers are experiencing ups and downs, fast and slow recoveries, so they may be holding onto larger equity allocations. M and Z (millennials and Gen Z) have different experiences. Imagine you made your first investment in 1999, then the dot-com crash, and when things turned around, the Great Recession was in full swing. As we did, it’s easy to swear an irrational fear of stocks and banks.”

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Who is richer? Schwab study highlights US ‘wealth paradox’. ” People who consider themselves wealthy define the term at a much lower number than when asked about others.

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Norman Schlossberg: “According to various surveys, I am considered wealthy because I have worked for many years and have been lucky in business. I used to live very comfortably.I now consider being wealthy to be healthy at 82. I had an ablation 10 years ago with good results. I’m happy that I haven’t had a financial problem since I was about 32. If I wake up every morning feeling good and can wash, dress, and eat by myself, I feel wealthy.My goal is to take 10,000 steps every day. I do fun things.My wife and children love me.I still have some close friends, even though some are dead and sick.I feel lucky and that do not take it for granted.

Kevin Crichton: “For me, true wealth entails true financial and social independence. If you are comfortable, healthy, happy, and financially secure, you should consider yourself wealthy. In terms of numbers, I would say that having a liquid net worth of $10 million or more would give you financial independence, less stress, and peace of mind. “

Chris E, Nashville: “Based on my experience as a financial planner, wealth, happiness, and net worth have a lot more to do with spending than how much you save. With a net worth of $10 million he seems like a dream scenario for most people, but with $1 million in annual spending, it’s not much. Conversely, someone with $1 million may have a very wealthy and comfortable retirement if they pay off everything, including their home, along with modest spending of about $40,000 or less per year. Getting a relatively risk-free rate on Treasuries would be more than enough to cover your spending needs. “

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You can see how serious the shortage of financial advisors is. Serli estimates that the number of U.S. financial advisers increased by just 2,579 last year. Last year, he had 18,207 new trainees enter the business, but 13,169 trainees were rejected, resulting in what Ceruri describes as a “rookie adviser rejection rate” of 72%. reached. Meanwhile, an estimated 2,459 advisors will retire in 2022. Broker-dealers and RIAs “must find new avenues to connect with potential candidates and spread awareness about the profession,” said Serulli research analyst Stephen Caruso.

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Avshalom Gad: “It’s a tough business to get into and stay in. If the industry wants to attract more young people and help them stay, it needs to offer a longer period of support before they leave. I’ve been in business for 20 years and I have to keep my head up to the game every day to stay on the air.I love what I do so nothing can replace it. But it took a lot of guts, and if the industry needs advisors who can actually give you advice, you can help them stay, learn and grow on their own, instead of fighting to survive from the moment they walk in. We need to encourage them to do so.”

larry walker answered: “very well said. Established individual advisors can encourage, train, mentor, and support runways for long enough, but large corporations are too impatient and have asset collectors/salespeople who collect assets well. We are looking for a representative. But if you don’t learn much about valuations, industry groups, companies, cycles, portfolio management, and stock selection, you won’t add enough value to attract customers in a competitive environment. Especially now with the bull market in equities and the $40 market, the year-plus bull market in bonds is over. ”

peter withenberg“They are looking for the ability to bring in wealth, not the ability to give wise advice.”

George Clement I answered. It’s all about collecting assets and selling index ETF “models” that, honestly, allow individuals to invest directly and save 100bps. “



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