In July of 2019, the House passed a new bill titled the “Setting Every Community Up for Retirement Enhancement Act,” or SECURE Act.1 The Senate approved the bill on December 19, 2019, and it was signed into law on December 20 by President Donald Trump. This sweeping bill offers several adjustments to our current laws surrounding saving and preparing for retirement.
This month’s piece is the first of a two-part look at risk. Not just “portfolio risk” in the traditional financial sense but risk more generally, though we will address how investors should think about risk.
Last month we began a discussion about risk. Most of what we discussed was basic, which isn’t to say unimportant, and certainly uncontroversial. This month we take a deeper dive into “risk” and the conclusions might be more “unsettling”. Let’s think about risk in the big picture.
Millennials (those born between 1981-1996)* are facing tremendous headwinds when it comes to saving enough money for retirement. A generation which entered the workforce just in time to witness two major economic recessions in 2000 and again in 2008, has been met with stagnant wages paired with rising living expenses, healthcare costs, and extraordinary growth in student debt.
With recent record market highs, many investors have paid little attention to the asset allocation of their 401(k) accounts.
Sometimes the more things change the more they stay the same. But other times, like today in the retirement industry...