Aussie Investing Icon Burt Malkiel, 92, Says Work Longer & Why Trump Still Worries Him
At 92 years young, legendary investor Burt Malkiel continues to share his wisdom, and he's got a strong message for Australians about retirement. In an exclusive interview, the man who penned the classic 'A Random Walk Down Wall Street' (and remains a key advisor to Wealthfront) explains why delaying retirement might be the smartest financial move you can make, and why he's still concerned about the lingering impact of Donald Trump’s policies.
Malkiel, a professor emeritus at Princeton University, has spent decades studying market behaviour and advocating for a passive investing strategy. His insights are highly sought after, and this latest commentary offers a particularly relevant perspective for Australians navigating an uncertain economic landscape.
Why Delay Retirement? The Unexpected Benefits
“Life is unpredictable,” Malkiel told Business Insider. “And that’s a good thing! It means there are opportunities we can’t foresee. But it also means we need to be flexible and prepared.” He argues that people should seriously consider working longer, not just for the financial security it provides, but also for the continued engagement and sense of purpose it offers.
“Retirement can be a wonderful thing, but it can also be isolating and monotonous for some. Staying active, whether through paid work or volunteer activities, keeps your mind sharp and your spirit alive.” He emphasized that the increasing longevity of Australians means people can realistically expect to enjoy a longer, more active retirement – and working a few extra years can significantly bolster those plans.
From a financial perspective, Malkiel points out that delaying retirement allows individuals to continue saving and investing, while simultaneously reducing the number of years they’ll need to draw from their retirement savings. This compounding effect can be substantial.
Trump's Legacy: Lingering Economic Concerns
Despite the passage of time, Malkiel remains concerned about the long-term economic consequences of the Trump administration’s policies. “The disregard for facts and expertise was deeply troubling,” he stated. “The trade wars, the accumulation of debt, and the general instability created a climate of uncertainty that continues to affect markets today.”
He highlighted the importance of sound fiscal policy and international cooperation, arguing that these are essential for sustained economic growth. While the Biden administration has made efforts to address some of these issues, Malkiel believes that the global economy still faces significant challenges.
Malkiel's Investment Advice: Keep it Simple
As always, Malkiel advocates for a simple, low-cost investment strategy. “Diversify, diversify, diversify,” he repeated. “Index funds and ETFs are the best way to achieve broad market exposure at a low cost.” He cautions against chasing hot stocks or trying to time the market, arguing that these strategies are likely to lead to disappointment.
His advice is particularly relevant for Australians, who are facing rising inflation and interest rates. By sticking to a disciplined investment approach, Malkiel believes, investors can navigate these challenges and achieve their long-term financial goals.
Key Takeaway: Burt Malkiel’s enduring wisdom reminds us that adaptability, a long-term perspective, and a simple investment strategy are the keys to financial success – and a fulfilling life, regardless of age.
