Tags: Fink | Living | Longer | save

Larry Fink: Living Longer, Americans Must Save More

Friday, 02 March 2012 07:44 AM

Joining the call of money managers and investing gurus such as Warren Buffett and Jeremy Siegel, BlackRock CEO Laurence Fink says Americans must save much more and invest it, pronto.

"We’re all going to live longer. . . and in the U.S. especially we’re not even prepared financially to finance the lifestyle we’re looking for," Fink told CNBC.

BlackRock feels “a responsibility to speak to this giant savings gap. We’re not thinking about the financial aspects of living longer," Fink said.

Editor's Note: Use This Single Loophole to Pay Zero Taxes in 2012

Investors in their 40s not putting money to work now will pay the price later, when they realize they have lost the necessary time it takes for investments to grow through compounding. The risk is not market ups and downs, but investing far too conservatively, he said. "There's a cost to owning cash," Fink said.

The latest figures from the Centers for Disease Control estimate that a male American can expect to live to just over 76 and a female is likely to top 81 years of age. At the turn of the previous century, men were living to about 46 and women to 48.

However, even that simple number can be misleading. If you make it to 65, the CDC figures you could tack on more than 18 more years of life, taking an average of men and women, irrespective of race.

If you arrive at 75, nearly 12 more years is possible. Simply put, if you are healthy enough to reach a traditional retirement age, you should expect to live longer in that retirement, perhaps two decades longer.

Whether your money makes it that long is another question entirely.

Editor's Note: Use This Single Loophole to Pay Zero Taxes in 2012

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