|Boomers Stand to Inherit Trillions|
|News Releases - Business, Economy & Finance|
|Written by Ginny Grimsley|
|Tuesday, 10 April 2012 12:03|
Expert Says Closed-End Funds a Good Investment Option
Baby boomers stand to inherit $10 trillion in the next few years and women will get the bulk of it, according to a Cornell University study, because they outlive men an average of seven years.
“Women already control 60 percent of the nation’s personal wealth – they outnumber men and they are traditionally the shoppers,” says financial expert Scott T. Schultz, author of Scott Schultz’s Guide to Closed-End Funds (www.closedendfundguru.com).
“It’s sad that, despite the fact that nearly a third make more money than their husbands and they’re starting businesses at twice the rate men are, 38 percent of women ages 30 to 55 worry they’ll eventually live in poverty because they can’t adequately save for retirement,” he says.
With the first of the boomers hitting 65 this year, the nation will see an even greater number of retirement-aged women holding the country’s purse strings.
“Many will inherit money and property from their parents and/or their husbands, and many will live another 30 to 40 years,” Schultz says, citing the Cornell study. “They’ll need to invest their money to ensure they have enough to avoid that impoverished retirement they fear, but they – and the nation – have lost confidence in the stock market; April 2011 saw the lowest number of investors since 1999.”
What brokers don’t tell clients about, he says, is closed-end funds. Schultz, ranked the No. 1 Separate Account Money Manager for three consecutive years by USA Today, says he earned that national honor by relying almost solely on these limited-issue stocks. Because they’re available only in finite numbers and because watchful brokers can find them “on sale,” they’re a better bet as an investment for those who are willing to sit on them awhile.
Why is the American public so in the dark about closed-end funds? Noting his book is the first written on the topic in more than 20 years, Schultz says there are a few reasons:
About Scott T. Schultz
Scott T. Schultz began his career in 1983 at E.F. Hutton and was ranked the nation’s No. 1 Separate Account Money Manager by USA Today for three consecutive years using GIPS verified/audited performance numbers supplied by Morningstar, Inc. Schultz was a GOP nominee for U.S. Congress in 1988, and met with Presidents Ronald Reagan and George H.W. Bush at the White House. He graduated from Michigan State University with a degree in journalism.
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