The Rock On Baby Boomer comprises the smallest, youngest and least wealthy segment of the Boomer population
There is nothing typical about the “typical’ Baby Boomer investor. There are 74.9 million Baby Boomers ages 51 to 69. A new Spectrem Group demographic study, “Baby Boomer Investment Personas,” which focuses on affluent Boomer-aged investors with a net worth of at least $1 million, not including primary residence, finds five primary character traits that run the gamut from independent to advisor dependent. In part four of our series, we consider the Rock On Baby Boomer.
As Baby Boomers go, the Rock On Baby Boomer comprises the smallest segment of the Boomer population (11) percent. They are also the youngest, with 5 percent under the age of 65, as well as the least wealthy compared to their older cohorts. As noted by AARP, “these Boomers came along too late to join civil rights marches, fight or protest the Vietnam War, exercise their flower power, build geodesic domes out of peach crates, or even feel terrible when the Beatles broke up… Do the Last Boomers feel as if they're at the end of the high school cafeteria line with nothing left but cold pizza muffins?
This might explain, in part, why the Rock On Baby Boomer is not brimming with optimism about the future. Nearly half (48 percent) indicate their asset value with be the same or worse over the next year, while roughly three-fourths forecast that their income will also be the same or worse.
Nearly half of the Rock on Baby Boomers are either working (32 percent) or are semi-retired (15 percent), An overwhelming majority identify their risk tolerance as moderate (65 percent), while 17 percent indicate they are more conservative (17 percent). If they had a financial windfall, nearly half (47 percent) said they would invest that money in a safe account.
Six-in-ten of this Baby Boomer segment do consider themselves “fairly knowledgeable” about investing and financial products, while 29 percent perceive themselves to be “very knowledgeable.” As is characteristic of the confident, pioneering Baby Boomer, a scant few (3 percent) use a financial advisor and instead credit their own investment acumen for their wealth status,
Though at the youngest end of the Baby Boomer age spectrum, these investors are laying the foundation for a secure financial future. Respondents report having 41 percent of their assets in retirement accounts to ensure they can keep rockin’ in their retirement years.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.