Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Younger investors risk-averse

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Donna Gehrke-White
Sun Sentinel
Published:
The stock market has recently been back on a roller-coaster -- again -- with the S&P 500 losing almost 4 percent in the past month. That has made many workers worried about their 401(K)s, IRAs and other retirement accounts.
In Charles Schwab's latest nationwide quarterly retirement study, younger workers are especially nervous: 29 percent of those between 18 to 34 plan to pull money out of the market, with only 11 percent of older Americans saying they would do so.
"Most of my friends aren't thinking about (investing) in stocks," said Dan Tobias, 30, an associate financial planner in Plantation, Fla.
They don't have much spare cash to invest in retirement or brokerage accounts, he said. They also don't want to risk losing what they do have while they save for a wedding or a first house, Tobias said.
Jenny Rothstein, a Fort Lauderdale-based financial consultant for Charles Schwab, suggested that younger investors are becoming more risk-averse as many have seen their own parents' retirement savings take hard hits in the past four years.
They have experienced "very volatile times." and not the boom times of the 1990s when stocks rapidly climbed in value, she said. But in the past 10 years, the S&P 500 has only increased about 2 percent.
Young workers also could want to pull out money out of their retirement accounts because they want to buy a house or need the money to pay bills after losing their jobs, Rothstein added.
Overall, the national Schwab study found Americans concerned about protecting their retirement accounts: 35 percent consider that more important than growing their retirement assets. Only 8 percent consider growing their retirement savings more important, the survey found.
Even experienced investors are becoming wary of the plummeting stock market, with the S&P 500 down about 7 percent from its height in April.
"Investors are particularly frustrated that the European debt situation keeps popping up like dandelions," said Deerfield Beach, Fla., financial advisor Charles Nichols in an email.
Still, associate financial planner Tobias thinks he has time on his side and is investing in stocks. "They can sit 30 to 40 years and grow," he said.
Story tags » Stock MarketPersonal Finance

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup