Master Investor Larry Fink Thinks Saving Cash is killing You
THE MARKETS ON FIRE, TOO MUCH CASH IN HAND
The markets are on the rise, that’s no secret. In the U.S. in particular investment accounts are booming. BlackRock Chief Executive Officer Larry Fink is worried that too many people are sitting out the stock rally. He sees cash as a detriment to worldwide investing: “There’s more money sitting on the sideline than we have ever seen at this moment,”
FRANCE A SPECIFIC EXAMPLE. OUI, OUI!
French investors easily overly weighted in cash. “France has a specific problem, 72% of French savings is in a bank account,” Fink said. He sees investing in stocks as a boost to the economy as well as a personal financial investment.
FINK THINK PEOPLE SCARED OF TECH, THE FUTURE
Fink sees fear of the future and issues such as the impact of technology as holding people back. “A truck driver and you read all about autonomous trucks you say.: ‘well, oh my gosh, what will happen to me if indeed we do have driverless trucks?’” he said.
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LACK OF EDUCATION LEADS TO POOR INVESTING
Individuals are responsible to manage their own retirement plans without the skills and education to do it. “We need to focus on financial literacy. We need to have more of the population understanding their needs. As we moved away from the defined benefit plans to a defined contribution, we put all the responsibility on the individual and we haven’t given them the tools to properly navigate that, and to me that’s a big social problem in the United States and worldwide,” Fink said.
TECH CAN SAVE THE DAY, BUT EDUCATION FIRST
But Fink sees technology as helping investors improve their financial planning skills. “We believe we can use technology to improve financial literacy and help people navigate the huge obligation of saving for retirement,” Fink said.
