A lot of money managers haven't been around that long. I wonder how they'll do. Mr. Hudson, one who was around, remembers watching the Dow soar from 450 to 1000, only to retreat to 540. But the experience of 36 years tells him that markets do come back, and over the long run outperform bonds or money market funds. James Navone, a financial planner with American Express Financial Advisors Inc. in Seattle, believes the recent bull market has actually helped educate new investors about the realities of markets.
People have to make their own decisions.
They're taking the time to learn. They do understand that markets don't go straight up or straight down. It's up to professional planners to emphasize those points, says Seattle financial planner James Bray, who says his job is as much about managing clients' expectations as it is about managing money. Interestingly the demographic cohort behind the baby boomers may be more serious about saving for the future, and starting earlier. The baby boomers haven't done a lot of savings.