History reflects that scorchingly hot summers and a major water shortage saw the advent of a new age in investments, as the birth of the very first passive fund in 1976 launched a $3.3 trillion evolution over the next 40 years.
We adapt and survive, recognizing that the complementary strengths of active asset allocation, within a passive / active combined investment theme, can offer a much wider bandwidth of investment capabilities for a full range of investment requirements.
When it comes to retirement, millennials have some lofty goals. According to a recent JPMorgan Chase & Co. study, today's 20- and 30-somethings are aiming to retire by age 60, nearly a decade sooner than their baby boomer counterparts. A Bankrate study published earlier this year found that just one third of 18 to 35-year-olds play the market. Among the top reasons for avoiding stocks? Millennials say they're too risky and they don't know enough about them to feel comfortable diving in. Steering away from actively trading individual stocks can minimize risk but retirement savings may suffer in the process. Investing passively, on the other hand, presents a middle ground for younger investors who don't want to shortchange their nest eggs.