Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Portfolio > Asset Managers

Deer in the Headlights: IRA Asset Allocations, 2008

X
Your article was successfully shared with the contacts you provided.

A new analysis of 2008 individual retirement account (IRA) asset allocations shows that older workers and retirees were not much better prepared for market downturns than younger workers.

Investment experts traditionally have argued that older retirement savers should have a higher percentage of their assets in cash and in investment instruments offering a fixed return because they have less time to compensate for the investment losses that might occur during market downturns.

Craig Copeland, an analyst at the Employee Benefit Research Institute (EBRI), Washington, has analyzed IRA asset allocations and found that the allocations were only somewhat more conservative than the allocations of younger retirement savers.

Savers younger than 25 had about 21% of their assets in money market mutual funds, certificates of deposits or similar instruments, and they had 5.1% of their assets in bonds.

Savers ages 70 and older had about 18% of their assets in bonds and about 22% in cash.

Savers ages 70 and older still had about 33% of their assets in stocks or stock funds; savers younger than 25 had about 49% of their assets in stocks or stock funds.

Other EBRI coverage from National Underwriter Life & Health:


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.