Bear Market Scares Generation Xers From Stocks BestWeek (07/14/03) p.1; Panko, Ron
A new survey by a subsidiary of New York Life Insurance indicates that Generation Xers, having suffered losses during the three-year bear market, have become such conservative investors that they may not be able to reach their retirement goals. New York Life Investment Management's Retail Markets Managing Director Beverly Moore says that investors in the age bracket have become so risk-averse that they may not be able to amass enough money to retire at age 61, given their 85-to-89-years-old life expectancy. According to the survey, only 59 percent of participants have nonretirement assets and almost a third do not trust Wall Street, with 11 percent of Gen Xers ceasing to invest over the last year. They are more interested in insurance and real estate products, with 75 percent of respondents buying insurance. Their risk aversion has also affected their choices in employer-sponsored retirement plans.