Boomer investment shift coming
Boomers are reaching retirement age. What happens to the $10 trillion they control?
Boomers will soon move from accumulation to "decumulation," said one executive at asset manager BlackRock, according to Reuters.
Instead of building a nest egg, the focus will turn to how to make that nest egg last.
This is all very normal, of course, but what's got financial managers worried is how their business will change as this large demographic heads to retirement. Where will this $10 trillion go?
BlackRock has found that retirement-age clients are perfectly happy to move their money to firms with more expertise in managing retirees' money. This area is more complex than normal asset accumulation, said the executive, Frank Porcelli.
"This is the equivalent of financial brain surgery," he said.
So now, don't be surprised to see many firms suddenly become experts in post-retirement money management in an effort to hold on to their clients.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Despite its size, the IPO will create just two new members of the 10-figure club from its executive ranks. A few others could net hundreds of millions.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.