Should Baby Boomers be in the stock market?

Everyone is really nervous right now about the stock market. And Baby Boomers are particularly nervous, because they have a lot of money in the market and they are concerned about losing their retirement funds at a point where they won’t be able to generate income to replace it. And we all know not to count on Social Insecurity.

Boomers are the biggest single demographic group in the market right now. With our IRA’s, 401k’s, 403b’s, and pension plans, we make up a huge part of the market. As a matter of fact, the stock market should be more worried about losing the baby boomers than the baby boomers should be worried about the market crashing.

Even though baby boomers will be retiring, they can still think long-term. Here’s what I mean:

The only thing that “counts” is if you have to have to cash in your retirement funds. The longer you can avoid taking any money out, the better your chances of having your money grow. Historically, from 1929 (that’s including the Depression!) through the present, the stock market has grown on average, 11% annually. That means, if you can leave your money in the market, in a diversified portfolio, you will have a better chance of coming out ahead over the long term.

If having all of your funds in the market still makes you nervous, put some of (not all) your money in an annuity that guarantees you will not outlive your funds. Learn more about the subject of annuities from Miranda Marquit at Yielding Wealth.

**Disclaimer: I’m not a financial advisor. Talk to a financial advisor who does not have a conflict of interest (that is, someone who isn’t selling annuities or other specific retirement savings vehicles).

This post for Talk Stock Trading was written by guest Jean Murray. Jean writes for Small Business Boomers.