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Putnam Investments CEO Bob Reynolds on how investors should adjust their retirement portfolios to protect them from market risks and volatility.
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1007 to 2009 bear market US households saw their retirement plans shrank.
By more than three trillion dollars as the world economy continues to suffer many people are worrying really very much now about their retirement accounts once again.
All were calling in one of the top names in retirement investments joining us out of Fox Business exclusive as Bob Reynolds he is CEO.
-- Putnam Investments which has more than 121.
Billion dollars.
Under manager Bob this is the day when we need your most one of the worst things you can do course of the day like today is panic.
Get into your 401K move everything around but.
-- once the dust settles a little bit maybe before the end of the week.
How should I reconfigure my 401K how should the folks out there -- do it so that they're safe.
-- it all comes down two years.
-- -- the long year time horizon obviously.
The more real issue should take about a however.
Today we're in a period of America's history where we have some 1000 baby -- return every day so.
Those people.
Should.
Look at where they are obviously they shouldn't have a larger exposure to equity they should look at low volatility type investments.
And really buttoned down the hatches -- just point.
I know you probably it's it's very hard for you to do what you do because you just said it it's always dependent upon the time horizon you've got people who are in their twenties you've got.
People like like us David night who'd been tried to save for the college retirement although.
David the Smart enough -- got everything organized and his daughters now happily ensconced in college but.
For -- I have 529 plants from my little ones -- and I'm looking at this and thinking not again I saw them plummet in 20072.
I have to go through this again.
Well I I again I think it all comes on your time horizon and what a lot of people don't realize is a sequence of return determines.
Where you end up in if you have a bad period earlier and your savings period you have a chance recover.
If you have a bad market it near the end you don't have a -- -- so that's why.
If you have -- time horizon ten years or less you really gotta watch your equity position.
Were.
Bullish long term on equities benefit due to this sequence of returns.
It's something everyone should be aware of and then the polish New York to the end -- whether it be college savings.
Retirement.
You should be concerned about your equity position okay.
-- Bob with as much specificity.
-- you possibly can what kind of funds offer its downside protection.
Well absolute return funds.
Fixed income funds.
Whether they be corporate bond expect sorrow -- Any type of low volatility -- Coupled with you still want some equity exposure and we recommend people.
What we recommend to people once or in retirement are getting post retirement should be somewhere around 40% in equities.
But.
There's certainly a place for low volatility investments especially absolute return type investments -- -- Attempting to provide you a premium over inflation every year.
Bob thank you for joining us we we hope that your words of -- some people today but the bullish long term on equities and and certainly always providing a little downside risks -- thank you for coming on we appreciate it.
Well it's my pleasure to offices -- bought the CEO of Putnam investment.
