Displaying items by tag: baby boomers

We’re in the middle of the largest generational wealth transfer of all time. The Baby Boomers, previously the largest living generation, are expected to pass down roughly $68 trillion over the next 25 years to the Millennials...see more on our partner's site

Published in Alternatives
Monday, 27 September 2021 08:26

Annuities are Entering a New Golden Age

(New York)

Annuities have a long and complicated past that ultimately created a less-than-stellar reputation. However, over the last few years, the asset class has undergone a transformation of newer and better products, combined with better sales practices. Now, two big elements are creating a major tailwind for the product: growing demand from retirement plan inclusion, and aging demographics. According to TIAA, TIAA “nearly nine in 10 plan sponsors who do not offer in-plan guaranteed lifetime income annuities are at least somewhat interested in offering them” (from ThinkAdvisor).


FINSUM: Baby boomers are in peak retirement years and many don’t have as much saved as they would like, so annuities have a role. Further, Gen X is aging and likes annuities more than the Boomers, so they are presenting a very fertile market as well. Accordingly, many firms are seeking more annuities participation.

Published in Wealth Management
Friday, 23 April 2021 15:31

Why This is the Perfect Time for Annuities

(New York)

There are a number of forces propelling annuities forward at the moment. Not only is their component of tax deferral getting more and more valuable given the new administration’s tax plans, but the need and desire to lock-in guaranteed income has grown over the last year. The single biggest force, however, is the US demographic trend. An astonishing 10,000 people per day are turning 65, and 16.5% of the population is now 65 or older. By 2030 all Baby Boomers will be over 65. That means this gigantic cohort is moving out of their wealth accumulating years and into their drawdown years. Many need guaranteed income.


FINSUM: A lot of advisors have an automatically negative reaction to annuities, but the market has improved a great deal in recent years, and for any clients they are a good option.

Published in Wealth Management

(New York)

Millennials are the largest generation in the US and are primed to start entering their peak earning and spending years in the next decade. The oldest of the group is now 38, and thus entering prime home buying and spending time. Consumers usually see their spending peak in their 30s and 40s and taper in their 50s. With that in mind, here are some stocks (2 niche plays, 3 big companies) that could really gain from Millennial spending growth: Zuora (cloud based subscription payments provider), Lovesac (specialist furniture maker), Home Depot, Nike, and Farfetch (online luxury clothes retailer).


FINSUM: Boomers’ spending is fading, and Gen X is smaller, so Millennial spending is what is going to drive the consumer space.

Published in Eq: Total Market
Monday, 07 January 2019 08:35

Why this Rally Isn’t Going Anywhere

(New York)

Investors may have gotten excited on Friday. Accommodative language from the Fed has a way of doing that. However, there is no reason to get to exhilarated, as this rally doesn’t seem to have legs. One of the big worries is about the largest group of shareholders in the country—Baby Boomers. Because this generation is retiring, they are likely to sell into any rally as they don’t have time left to wait for a big recovery. Accordingly, any rally will likely lose momentum quickly. As evidence, redemptions over the last four weeks have totaled $164 bn, or more than 1% of money in all stock and bond funds.


FINSUM: This is an interesting argument and one we tend to take seriously given the size of the Baby Boomer population and their large shareholdings. That said, we do not think it is large enough to affect the fundamentals of the market, just alter the amplitude.

Published in Eq: Total Market
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