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You've got to be and it to win it but new research shows -- -- investors have missed out on much of the bull market run.
If they got out of stocks and their long term retirement accounts we are joined by spectrum group managing director Catherine but -- with new research.
So it says here your research shows that right now our average retirement account.
Of it is in stocks despite the fact that stock prices have more than doubled since the 09 low.
This is a bad thing.
It probably is for these investors because if you think about it they haven't been able to recover.
Like they needed to be additionally you know most people don't feel like they have enough money saved for retirement so the fact that they've missed out has been a problem.
But arguably I would also say these are retirement -- so people wanna look -- for the long term and they don't want to lose any more than they -- lost.
Yet now it would have been a really bad idea for me to sell out of my retirement -- -- timer account.
In 09 when the market was at bottom right because I have ten or twenty or however many years to retirement to make it back up why did people move out of stocks is too much fear.
To most feared she was solitaire utility.
If you look at our information you'll see that in like 2009 about 40% of their assets -- moved into stable value funds or you money market funds.
And today they still -- like 20% of their overall account sitting there.
Earning almost nothing -- -- bought stocks continued to climb.
-- -- 36% and stocks you know I I love that old rule that I've always followed you did you know when you watch a percentage of your retirement -- take a 110 minus your age.
But that -- be as it for all 74 years old what would you like that 36% number to be instead.
I think right now it needs to be a little bit higher especially for those people.
Our research shows that people that are between the ages of 55 and 64.
It's just over a third of them think they have enough to retire upon -- in the markets and relatively stable at least maybe they should be looking a little higher asset allocation -- and they haven't passed okay by the same token it's still -- retirement account so they don't wanna lose anything either so it's really delicate balance for the.
Most people have been but our fear of loss it is is -- -- mean we're missing out on the upside and in the general market outside return to catch you get the feeling that the fear of missing on the upside is now begin to drive a stock prices -- -- -- 640%.
Vs 36% now on stocks.
Of our retirement on average was in our own company stock -- down to 13% now.
I always thought it's a really bad idea for me to put even more of my risk into my company when my company get to my paycheck what he said.
It depends upon your own feelings about your own company we've seen especially since the whole Enron disaster in earlier and I guess it was last decade.
People started to withdraw from the company stock to begin with.
And company's stock tends to be more volatile enough you work for Billy stable company that's doing really great.
Great for you and invest in the company stock but I don't.
I put on a -- eggs in the same exact old basket.
Now if I'm under accruing and stocks I want to get my 401K up there.
I've moved money out of something all of ones are just kind of make it changes start doing it gradually an average of -- -- seeing is people gradually changing you know that might -- best.
Wait for people to do especially with the retirement plans you know you don't -- -- like move it all too fast and then see the market crash again there's really -- -- by investors who we do our resource that.
Another crash deaths on the other hand imagine if in March 09 to -- 6800.
He was decided that whole bunch of money at a cash your body gets thrown into -- but.
That would be wrong -- do it that way -- had his gradually.
Gradually -- to -- -- most people all right nice job thanks for being with us -- appreciated.
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