Fidelity report warns boomers to ease up on stocks

Fidelity report warns boomers to ease up on stocks
More than a third had crossed Fidelity's 70% threshold for those 10 years from retirement.
NOV 14, 2019
Hey, baby boomers: lay off the stocks. That's the message from Fidelity Investments in its third-quarter retirement report. Boomers, or the generation born between 1944 and 1964, have been riding a 10-year bull market into retirement, steadily upping bets on stocks to boost 401(k) returns and exposing them to unnecessary risk. [More: One retirement risk few people talk about] More than a third of the generation had crossed over Fidelity's recommended allocation to stocks, which is 70% for those 10 years from retirement. Almost one-tenth of boomers were entirely in equities during the quarter, running the risk of serious losses in a market meltdown. By comparison, almost a quarter of all savers had too much devoted to stocks. [Recommended video:​ Mary Beth Franklin: Good news on Medicare surcharges ] Other highlights from the report: Average 401(k) account balance dropped to $105,200, less than a 1% dip from the prior quarter, due to market conditions For long-term savers who have been invested in their 401(k)s for 10 straight years, the average balance reached a record $306,500 More than 1 million workers contributed to a Roth account, almost a 10-fold increase from a decade ago. Our final Women Adviser Summit of 2019 will be held in New York City. Register now.

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