2. Personal Experience: In an enduring bull market since 1982, many equity investors have seen steady growth and little long-term declines. Those experiences have formed a belief that market downturns are temporary and that stocks will rebound and make new highs.

3. Weak Competition: Declining yields on bonds and cash payouts over the past decades have left stocks as the best investment option. Few alternatives remain, so investors are turning to the stock market for growth potential first and foremost.

4. Excess Assets: The average wealth of Americans—especially the investor class—is unprecedented. Even though most retirees lack large portfolios, the exceptions are increasing. This increasing affluence lets retirees take stock market risks because they can live moderately without relying on investment returns.

Additional Factors:

Beyond the reasons just given above, two other factors contribute to an evolving investment landscape:

Incomplete Rebalancing: Even retirement-age investors rarely rebalance their portfolios. This inertia and frequent adjustments have increased equity allocations. And 401(k) accounts—owned by mostly less active investors—have seen little trading in the past as well.

Failing Hedges: Lacking acceptable alternatives to stocks also has fueled retirees' enthusiasm for the market. Classical diversification options like bonds and cash haven't delivered good returns in recent years. Such investments as gold bullion and hedging funds have shown little growth or protection against market downturns, so stocks remain the best bet for potential returns.

The popularity of the stock market raises concerns from a contrarian perspective, but you need to look at the wider investment landscape. Other investor groups are following suit: Fortune 1000 pension plans have cut exposure to U.S. stocks. In addition, U.S. equities seem comparatively well priced on the surface. The current price/earnings ratio is moderately above the long-term average but not alarming enough to immediately panic.

Changing investment patterns and factors influencing them are important as people approach retirement. Realizing the changing landscape and assessing individual risk profiles allows retirees to make sound investment decisions and preserve financial stability with potential for growth in years to come.

Note: This is an updated article that has been rewritten to better serve the interests and needs of Phillips 66 workers and retirees without directly targeting them as the audience.

Research suggests that older investors—especially those nearing retirement—have grown accustomed to aggressive strategies. A study by the Employee Benefit Research Institute in found 60% of respondents age 60 and older had a higher risk tolerance than 10 years ago. Such a turn of attitude suggests a desire for greater potential returns and suggests that retirees should assess their risk tolerance and seek professional advice when investing.

But in the ocean of investment choices, the winds of change are blowing and retirees are sailing into more dangerous waters. Like experienced captains, they've steered away from the safe havens of conservative investments and charted a course as rough as young adventurers'. As seasoned mountaineers scale higher peaks, so are older investors scaling the equity mountain determinedly. While others warn against this risky ascent, like scaling unknown summits, these retirees see it as an exciting way to unlock new heights of potential returns. With experience and financial stability, they've gone skydiving, as the sun sets on their careers. But can those seasoned sailors weather the stormy market tides or are they tossed into the storm of volatility? Time will tell whether their explorer's spirit brings treasure or trepidation.

A Roth IRA conversion decision hinges on your full tax picture, including the employer benefits Phillips 66 provides. According to publicly available information, Phillips 66 maintains a cash balance pension plan, which defines your retirement benefit as a hypothetical account balance that grows over your career through pay credits and interest credits. Under ERISA, cash balance plan benefits vest on a three-year cliff schedule. Phillips 66 also offers retiree healthcare benefits to eligible employees. Because the specifics of your cash balance account balance, vesting status, and benefit options depend on your individual employment history and plan documents, We encourage you to review your Summary Plan Description (SPD) or speak with Phillips 66's HR or benefits team for the most current details.

Sources:

1. Backman, Maurie. 'Here’s the 1 Big Reason Millions of Retirees Secretly Struggle in America.'  Moneywise ,  moneywise.com .

2. 'Should Retirees Continue to Invest? Yes, and Here’s How.'  Kiplinger ,  kiplinger.com .

3. 'Do Retirees Invest Like 30-Year Olds?'  Advisor Perspectives ,  advisorperspectives.com .

4. 'America’s Retirees Are Investing More Like 30-Year-Olds.'  City-Data Forum ,  city-data.com .

5. 'Do Retirees Have Too Much Risk, And Whose Fault Is That?'  Forbes ,  forbes.com .