Austin Frye Interviewed for Bloomberg Businessweek

December 1, 2017 | posted in: Blog, Financial Insights, In The News | by
Stock Wealth Surges for the Oldest Americans While the Young Miss Out

“Many households reduced their equity investments from 2007 to 2016. Those headed by people 75 and over loaded up.” Interviewed by Jordan Yadoo and Ben Steverman, Austin shared his perspective on why baby boomers’ portfolios are “booming” while younger investors’ may not be.

 

“Financial advisers say there’s also a particular reason some retirees are choosing stocks now. “There’s a lack of alternatives out there,” says Austin Frye, a financial planner at FryeFinancial Center in Aventura, Fla. Yields on bonds are at near-record lows, while the most generous banks pay savers rates of barely 1 percent per year. As a result, dividend-paying stocks have become popular among seniors because they generate income.

Older investors don’t necessarily deserve their reputation for being cautious and risk-averse, says John Grable, a professor of financial planning at the University of Georgia who studies risk tolerance. They “often have more knowledge, experience, and a wider perspective than others,” he says. Almost all investors remember the tech bubble and the financial crisis. Seniors also remember the roaring bull markets of the ’80s and ’90s. Frye says his older clients are “very comfortable with stocks because they’ve been investing in them for a lifetime.”

 

Read the full article here.