The financial services industry is in a period of substantial change. Low interest rates, new regulations and additional scrutiny are changing the landscape. Perhaps the biggest change is the transition of the first wave of Baby Boomers from working to retirement. Not only is this generation huge, but its also the first “401(k)” generation. The introduction of self-directed retirement accounts, such as 401(k) plans, coincided with the “Baby Boomer Generation” (people born between 1946 and 1964) entering their peak saving years.
Beyond the 401(k)
The 401(k) plan was first introduced in 1980. In 1980, the oldest Boomers were 34 years old and entering the age range at which people really start to save. Not surprisingly, the financial services industry created a multitude of new financial products to pitch to these people. Thus began the era of the mutual fund. Continue reading