Larry Zimpleman, Principal Financial Croup Chairman and CEO spoke to CNBC this morning about the impending retirement boom of baby boomers. His firm has $285 billion in assets under management.
What’s interesting about this interview is that it identifies what is going to be a long-term trend for retirees: the need for growth even after retirement. There is, according to Zimpleman, going to be a renewed emphasis on equities for individuals who are already retired, rather than just holding fixed-income to maintain financial stability.
- 0:45 People now understand that retirement is there own responsibility, and that they can’t rely on their employer or the government.
- 2:00 Life cycle funds are in high demand, and they target retirement date. There are also others which target risk.
- 3:30 People are realising that they need to keep investing in equities after 65 as they will be retired for 30 years and be in need of that growth.
- 4:30 People get that well diversified is what is needed for retirement.
- 5:00 Dodged question about how to get the 8% expected for retirement funds, but suggested emerging markets investments to solve that problem.
Business Insider Emails & Alerts
Site highlights each day to your inbox.