Adding Stability in Volatile Times
The share of Americans who reported feeling very confident that they will be able to afford a comfortable retirement fell to 18% this year, down from 27% in 2007. The last time that a mere 18% of American workers felt very confident in their retirement outlooks was in 1993. Given current economic and market conditions, this type of sentiment is not surprising. Although financial markets routinely endure bouts with volatility, not all portfolios react the same way to volatile conditions. Individuals with shorter time horizons or low risk tolerances need to be more wary than the average accumulator. One strategy…