Who the heck is TINA? TINA is an acronym that stands for “There Is No Alternative” to stocks. And for most retirement-minded investors, TINA is their money manager. As you can see, 71% of 401(k) account balances were allocated to stocks in 2022. People in their 60s had slightly less allocated to stocks, while participants in their 20s were almost exclusively in equities. |
It's difficult to argue against the strategy, especially for someone in their 20s. Since 1957, the Standard & Poor’s 500 index has delivered an annual return of more than 10%. But patience, focus, and commitment are required. The path since 1957 has been anything but smooth, with recessions, global crises, and geopolitical events. For people who are approaching retirement, should TINA be managing their money? It’s possible, but there are many other factors to consider when a person stops accumulating assets and starts spending assets they have spent a lifetime accumulating. Not to mention how Social Security factors into the equation. When we created your strategy, we allocated your assets based on your goals and timeline to pursue those goals. We also considered your risk tolerance. So TINA was part of the conversation, but certainly not the only voice in the room. |
Finance.Yahoo.com, June 16, 2025, Finance.Yahoo.com, June 16, 2025, “The Stock Market's Secret Weapon: Insatiable Demand from American Retirement Accounts” Investopedia.com, May 16, 2025, Investopedia.com, May 16, 2025, “S&P 500 Average Returns and Historical Performance” |
The S&P 500 Composite Index is an unmanaged index that is considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.
Once you reach age 73, you must begin taking required minimum distributions (RMDs) from your 401(k) or any other defined contribution plan in most circumstances. Withdrawals from your 401(k) or any other defined contribution plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.