2010 should be the year to reform retirement in Washington, said Robert Reynolds, CEO and president of Putnam Investments. He shared his insights with investors.
“There’s still some nervousness out there,” Reynolds told CNBC. “A lot of it has to do with the uncertainties with Washington and in the market itself.”
According to a recent survey, Reynolds said 75 percent of Americans covered by 401(k) accounts think that the market did not have a dramatic impact on their retirement. Reynolds attributed the finding to last year’s robust market rally. Meanwhile, two-thirds surveyed said they would like to be in equities and have stocks as a part of their investment portfolios.
“2009 was a terrific year for fixed income and equity markets, but most of retail flows went into fixed income,” said Reynolds.
“This year, we’ve seen people trickle back into equities, but again, confidence coming out from Washington is going to affect the investor…Another important thing is that there's still $11 trillion sitting on the sidelines waiting to be invested.”
Reynolds said the government should make retirement available to all Americans by enhancing the system.
“The discussion that’s going on in Washington about simplified 401(k) or universal IRA should be acted upon,” he said. “It’s no cost to the government, but it would make retirement available to all Americans.”
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No immediate information was available for Reynolds or his firm.