Younger Investors Still Afraid Of The Market...But Their Cash Holdings Are Building Up Hot

ScottMartinScottMartin  
 
 
0.0 (0)
Write Review

 

Despite all the age-based allocation advice, members of Generation X and Y hold 27% of their liquid assets in cash, according to the latest generational numbers from MFS.

 

That indicates a vast amount of money on what many advisors would consider "the sidelines."

 

And the percentage gets bigger as investors get younger, indicating that members of Generation Y in particular were deeply scarred by the 2008-9 credit crisis.

 

These investors might easily have 20 to 30 years ahead of them before they reach tradititional retirement age, so in theory there is plenty of time for their portfolios to overcome a few bad years in the stock market now and then. 

 

If not, then we are in a "new normal" environment and a lot of the core assumptions that financial planning is built on need to be reworked anyway.

 

So the long-term challenge is getting younger investors to realize that stocks and even bonds still make sense for their time horizon.

 

That means simulations, Monte Carlo, and hard reminders that if stocks and bonds both fail over the next 30 years, your clients -- and the rest of us -- will have a lot to worry about even if their cash is in FDIC accounts yielding nothing.

 

But it also means coming up with new products and new marketing angles to allow you to work with their risk aversion until they come around, if they ever do.

 

These clients actually look a lot like the Boomers in terms of risk aversion. They might be able to handle a bad run in the market, but they are terrified of that happening and are convinced that it will. Respect that.

 

They like the idea of reliable income products. Respect with that and work with it.

 

Think of them as near-retirees with extremely long time horizons and willingness to keep working another 20, 30 or 50 years. Retirement has changed, and not just on the older end of the country.

 

 

This Website Is For Financial Professionals Only


User reviews

There are no user reviews for this listing.
Already have an account? or Create an account

A Strategically Focused CE Curriculum

With classes approved for over a decade by the CFP Board, IWI, and NASBA, Advisors4Advisors CE classes are an optimal knowledge stream for CFP®, CIMA®, CPA, CPA/PFS®, CFA®, and other practitioners. It's not a grab bag of speakers willing to sponsor CE content. Nor is it a one-man CE course. It's a group of subject matter experts with amazing communication skills and a history of thought leadership that, together, give advisors a well-rounded knowledge system for running a professional practice ethically and intelligently.

CE Since October 2008

A4A CE classes for financial professionals began in October 2008, the week Lehman Bros. collapsed. Initially billed as “The Financial Crisis Webinar Series,” A4A connects advisors with authoritative sources on investing, tax, and financial planning, chosen by A4A Editor Andrew Gluck, a veteran financial reporter. A4A members get a stream of CE classes for an advisor who: 

  • holds a CFP®, CIMA®, CPA, CPA/PFS, CFA or other designation requiring CE annually 
  • values monthly CE classes by Fritz Meyer, Craig Israelsen, Frank Murtha, or Andrew Gluck
  • diversifies a core of client portfolios in low-expense funds
  • invests based on MPT and economic fundamentals
  • advises on tax and financial planning as well as investing
  • needs financial counseling skills
  • wants the Certified Financial Counselor™ designation 
  • is building a brand as a thought leader locally or in a niche
  • wants the facts when bad news breaks
  • wants CE aligned with a content marketing system
  • wants 24/7 access to CE on-demand
  • insists on objective evidenced-based tax and investment planning analysis

 

MEMBER REVIEWS 
William Desormeau, Jr.  
It is not possible for me to overstate the cumulative value that Craig and Fritz have added for over 10 years to my investment advisory practice, as well as for personal and family financial planning. A4A gets my highest recommendation
Lynn Najman, CFP®
I’ve subscribed to A4A since its inception, and always find it intellectually stimulating and on point. It’s one of the few CE solutions out there that doesn’t waste my time by pushing product or talking down to me.

PeteDeacon-CPA-CFP
Pete Deacon, CPA, CFP®
A4A has had a profound effect on my business. Since 2009, I’ve relied on the consistent messaging and updates to run my business successfully. Being able to present the information from Fritz, and Craig's ongoing CE webinars has been a significant benefit.

fredericMayersen-phd-cfp
Fredric Mayerson, MBA, PhD, CFP®
I've been a financial professional and professor of finance for 35 years and find Fritz Meyer to be among the most engaging, incredibly knowledgeable, and experienced presenters I’ve encountered. They deliver an extraordinary amount of information in an extremely interesting way — sequentially and developmentally, utilizing pedagogical tools and techniques that few possess.  A4A to is the most consistently excellent CE program available.  
Ron Roge, MS, CFP®
I’ve been attending A4A many years because the CE classes are outstanding, and my time is valuable. Though I have over 35 years of experience, I’m always learning something new on A4A. I attend fewer conferences now because the CE is generally not advanced. If you want to learn from the best, in a faster, easier, and less expensive way, I highly recommend A4A.

John R. Day, CPA/PFS®

I’ve been a member since 2011 and never miss the monthly webinars with Fritz Meyer. I appreciate Fritz’s independent views on the economy keeps me updated on excellent  planning ideas. A4A is a great value!
NormanPolitzinerCFP

Norman Politziner, CFP

I wouldn't miss a Fritz Meyer webinar unless my pants were on fire. I've relied on Andrew Gluck's knowledge systems --client communications and CE -- for two decades. It's simply the best solution for tax, financial, investment, and risk-management professionals.®   

Dan Hawley, CFP® 

A4A, for over a decade, has been a great resource for useful and accurate information and CE. A4A and Advisor Products are bargains for an advisory practice. 

KevinBrosious-CFP-CPA-PFS

Kevin Brosious, MBA, CFP®, CPA/PFS®

I get CPA CE credit and CFP credit for the webinars.  But not only that, the A4A content is terrific