For financial advisors who are targeting the 79 million individuals born between the years of 1946-1964 (How can you “target” 79 million people, by the way?), otherwise known as Baby Boomers, I wanted to recommend a really interesting new study, “Understanding the Accidental Investor: Baby Boomers on Retirement.” Published by Financial Engines, the organization co-founded by Bill Sharpe, “Understanding the Accidental Investor” explores the emotions, behaviors and needs of Baby Boomers entering retirement.
The observations in this report are based upon a three-year long study of Baby Boomers on the verge of retirement, and reveal a population that is rife with distress, fear, mistrust, and overall investment angst.
Reaching Accidental Investors
In addition to highlighting the emotions and corresponding behaviors of near-retirees and retirees, this white paper identified five common needs that, if met, could potentially help Baby Boomers overcome the strong emotional barriers that hinder their investment thinking.
Those needs include:
As a card-carrying member of the Baby Boomer contingent myself (i.e. my driver's license), I can readily identify with many of the observations of this study. However, I think it's also kinda tricky to paint an entire generation of 79 million people with sweeping broad-brush generalizations.
As Mark Twain said, "All generalizations are false...including this one."
Even still, this study provides many valuable insights...and is worth a close look by investment professionals who desire to connect with Baby Boomers.