The deep declines in the U.S. stock market over the last three weeks has left a ...
NEW YORK - The deep declines in the U.S. stock market over the last three weeks has left a dent in retirement portfolios and brokerage accounts, costing on average each person in the United States around $16,000 as of Monday’s close before a rebound Tuesday erased some of those losses.
The U.S. retirement system no longer relies on defined benefit pension plans - which pay out a guaranteed amount until death. That means that people are mostly in charge of their own retirement, investing via 401 pension plans. Around 42% of the working-age population with a full-time job has a 401 or similar plan, and those funds are overwhelmingly invested in stocks, according to U.S. Census data.
That is greater than the 8.3% annual return on bonds over the same time according to Morningstar. Bonds, meanwhile, are unlikely to post the same returns in the future because yields, which move lower as prices rise, are at historic lows.Overall, individual stock ownership in the United States appears to be declining as more members of the outsized Baby Boom generation retire or shift their portfolio to a more conservative stance in preparation for retirement.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump faces huge leadership crisis over coronavirus and the economyCoronavirus fears and a fight over oil prices drove markets to a disastrous start to the week as the Trump administration continues to grapple with responding to the coronavirus outbreak.
Read more »
Coronavirus will likely cause a massive hiring slowdown - Business InsiderThough the US added more than 270,000 jobs in February, staffing firms lost about 20% in value weeks afterward as markets reflected coronavirus fears.
Read more »
Cruise Industry Hit Hard By Coronavirus Outbreak EffectsThousands of people who booked vacation cruises are considering canceling. The federal government has taken the unusual step of advising people not to take a cruise given the coronavirus outbreak.
Read more »
Google tells more than 100,000 North American employees to stay home amid coronavirus fearsIt's the most extreme measure the company has taken to mobilize its workforce amid the COVID-19 outbreak.
Read more »
Pearl Jam Postpones North American Tour Due to Coronavirus
Read more »
U.S. stocks dive more than 7% as oil war and coronavirus fears slam marketsA collapse in oil prices is the latest fallout from the coronavirus oubreak and adds to the gloomy financial and economic outlook.
Read more »