BlackRock Is on Your Side for Secure Retirement

Read this if you’re afraid of investing.

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BlackRock is a controversial company.

Some have never heard anything nice about it. Others are in awe of the trillion-dollar boys and girls.

BlackRock CEO Larry Fink flexes muscles by “forcing behaviors” (his exact words). But the letter to investors he published in March 2024 sounded unexpectedly personal and compassionate. 

He knows the exact financial problem many of us have - retirement savings. Even Mr. Fink’s parents had to build a nest egg by working simple jobs. You should too.

If you’re not nodding yet, here’s why BlackRock is your best friend for a secure retirement.

Your wage alone won’t cut it

The problem with the world is wealth isn’t distributed equally.

My friend Vladimir is a digital nomad who traveled to eleven countries last year. He makes $1,000+ a day by helping people transfer money. 

He put in an effort to generate this income stream. Setting up his business was an investment that’s paying his bills and plane tickets.

Perhaps more money goes into his bank account than yours. You can grow your income too but without running a business. Invest in public companies to divert part of their profits into your bank or retirement account.

This seems unimportant in your active years when you have a regular paycheck. People forget about their retirement like it’s a million years away. Failing to plan is planning to fail.

We want to live longer and invest in research to improve nutrition, medicine, and lifestyle. But there’s hardly any incentive to secure our financial well-being in old age.

Retirement systems across the world are under strain. Developed countries have an issue with birth rates. State-sponsored pensions are disappearing faster than snacks at a party.

You must take care of your retirement. But investing frightens the hell out of people. Your capital is at the market’s mercy. There’re no government officials with their comforting voices

“Don’t worry, pal, we’re looking over your money.”

This is so bad people keep their savings in checking accounts. My friend Nina says she’s afraid of getting wiped out financially if a crash happens. I don’t sugarcoat the harsh reality for her. My response was “A crash will happen”.

But it’s the wrong focus. Financial markets are driven by odds, not certainties. The odds are against you if you don’t begin investing here and now. Price fluctuations and bear markets are a fee for building wealth.

If you know this, you can avoid financial trouble. You won’t wake up one day and realize you’re not on track with less than a decade before retirement. You won’t run the risk of being poor in your golden years.

You don’t need a miracle to be set for retirement. You need a consistent habit of saving and investing part of your income.

Let me tell you about inflation if the risk of losing money in the stock market scares you. The US dollar has lost 47% of its purchasing power since 2000. You still lose the money you don’t invest. It’s just the numbers in your bank account don’t change.

All asset prices fluctuate, even your property. You just don’t call a real estate agent to evaluate your house every day.

Stop checking your retirement fund if the price changes drive you mad. You’re not more wealthy today than yesterday. Give yourself a few years.

Automate your monthly contributions and keep in mind you’re here for the long term.

You have options, you just need to start

Here’s the good news.

If someone can keep an eye on your money, it’s asset management companies like BlackRock. They’re not governments involved in wars, elections, and fiscal deficits. 

Their focus is on helping you manage savings. And they do amazing work. Mr. Fink says in the letter

“Our core business is retirement.”

More than half the assets (north of $5 trillion) BlackRock manages are for retirement.

You may think the asset manager has a little too much power. To the point of telling corporations how to run their business. True.

You own Apple stock either directly or by holding an index fund. It’s your right to have a say in the company’s dividend payments and executives’ compensation. But hardly any retail investor votes.

BlackRock and other index fund providers act on your behalf. They don’t want to kill Apple. The goal is to make sure its stock price is stable enough to let the company run its operations, create new jobs, and keep your retirement on track.

Nobody’s interested in making the population poor. Nobody wants the stock market to crash. BlackRock wants to help you manage your money for a decent living.

Good things are already happening to tackle the retirement problem.

A new federal law will kick in next year that sets up 401(k) plans to auto-enroll new employees. Countries like Germany introduce new retirement models helping you build your nest egg in capital markets with minimal risk.

You can also invest on your own. Just about anyone can open a brokerage and make their first investment.

My girlfriend is in her 30s. She invested her first 100 EUR ($110) last month. She won’t get rich but she took the first step, the hardest step. I’m so proud of her.

Asset managers can’t save you from corrections and crashes. But they can make sure the negative events are as short and as soft as possible.

With the big players on your side, you have little to lose and a lot to gain.

The bottom line

Don’t postpone planning your retirement whether you’re in your 20s or 60s. Save and invest even if your goals aren’t clear yet. You can fine-tune them later.

Money won’t land in your account out of nowhere if you don’t give compound interest enough time. Begin planning your golden years early.

The big boys managing trillions of dollars are on your side.

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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.

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