It’s really not callous. If a boomer’s 401(k) is still heavy on stocks they’re being greedy! De-risk, people. I don’t want to let inflation tank my economy to protect a generation of greedy grandparents.
Generally 401(k) plan ratios are not managed individually. Most will have target date funds[0] that automatically transition in to progressively less-risky investments as you get closer to retirement.
The problem is... almost no financial instruments outside of stocks can provide a meaningful return any more, so even the target date funds are almost all stock.
I noted your other "time in the market beats timing the market" comment, which suggests you are an active investor. That's great! But very few Americans are active investors, and expecting them to become so is unrealistic.
Its a problem of realpolitik, which is why, going back to my original comment, you should still care, if only for how it will affect you.
[0]: Here is an example prospectus of a 2055 target date fund. Note the graph showing the changing allocation of stocks/bonds/money-market funds (or CDs). By retirement, nearly half the portfolio is still stocks. https://prospectus-express.broadridge.com/summary.asp?client...
Half stocks is a great example of diversification. If there’s a huge correction (say 20%) they’ll lose 10% — hardly something that would drop you from prosperous to poverty stricken.
If they are one of the lucky few with a defined benefit public pension, like my parents have, having your RRSP (401(k) in Canada) biased towards stocks is a sounds investment policy.
