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Thread: The boomer bust

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    The boomer bust

    So...Mrs. M. retired 6 weeks ago (at 53, no less!), I'm already winding down, and just waiting for our long term goals to be set. Met with my broker last week who tells me that for every person turning 21, 3 are turning 65. His concern is that there won't be enough working people in 15 years to support us old folks, and that there won't be a market for all of the equities in peoples retirement funds.

    With pension plans drying up, RSP's (401K's) becomming less liquid, a dropping dollar, increasing interest rates, an about-to-burst housing bubble, and inflation about to make a comeback...what kind of plans should we be making for our "golden years"?

    I've got no intention of working into my 80's, but "the times are a-changin" and its beginning to look like a lot of things that worked in the past, may no longer be operative strategies.

    Any thoughts?

    http://money.cnn.com/2006/06/13/maga...tune/index.htm

    [SIZE="4"]The boomer bust[/SIZE]

    [SIZE="2"]Will aging boomers pull their money out of the market and cause an asset meltdown on their way to retirement?[/SIZE]

    (FORTUNE Magazine) - Bob Dylan, bard of the baby-boomers, turned 65 a few weeks ago. The milestone passed without much fanfare, but it was an unmistakable reminder that the generation that had hoped to stay forever young is nearing retirement age.

    Dylan is slightly ahead of the crowd, but the first of the boomers hit 60 this year, with nearly 8,000 Americans reaching the mark every day. Talk about times a-changin'.

    That aging is bound to be unsettling - and not just for boomers. The graying of such a massive cohort will strain programs such as Social Security and Medicare. But it will also have a broader economic impact, potentially affecting private investments as much as public entitlements. A number of market experts warn that the population shifts ahead may spark an asset meltdown that could weaken equity returns - if not devastate them - for a decade or more.

    Among those sounding the alarm is the unlikeliest of Chicken Littles: Jeremy Siegel, the Wharton finance professor and author of the bullish investing bible "Stocks for the Long Run."

    "The demographic trends of the past have just not been strong enough to offset all the other influences on the stock market," Siegel says. "But this is the granddaddy of all demographic shifts. We have never witnessed anything like this, and I am convinced it is going to be a determinant of asset prices going forward." Stocks and other assets, he warns, could plunge by as much as 50 percent.

  2. #2
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    given their age, I'd say that the Boomers have a sagging bust. of course, plastic surgery has been known to perform some bizarre "miracles".

    DOH!

    but as to this statement...

    So...Mrs. M. retired 6 weeks ago (at 53, no less!), I'm already winding down, and just waiting for our long term goals to be set. Met with my broker last week who tells me that for every person turning 21, 3 are turning 65. His concern is that there won't be enough working people in 15 years to support us old folks, and that there won't be a market for all of the equities in peoples retirement funds.
    I had a anthropology professor in college, circa 1981, who told our class that we should be prepared for that very problem, not only in private retirement funds, but also in Social Security.

    of course, the foolish plan their futures in reliance on others.

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    Quote Originally Posted by gonzostrike
    of course, the foolish plan their futures in reliance on others.
    there's no getting away from this...anyone investing in stocks relys on the company's continued success and growth, bonds...you rely on the underwriters ability to pay interest and return the capital, real estate depends on being able to sell or rent it to others.

    That the problem here...the people that you were able to rely on in the past will no longer be there...just ask the people that invested in Enron, have their pensions with airlines or car companies.

    The governments are not being of much help, usually managing the short term finacial strategies, and the corporate world no longer looking after their employees as they did in the past.

    ...Do you think that those Wal-Mart greeters really want to be there?

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    Quote Originally Posted by JM01
    So...Mrs. M. retired 6 weeks ago (at 53, no less!), I'm already winding down, and just waiting for our long term goals to be set. Met with my broker last week who tells me that for every person turning 21, 3 are turning 65. His concern is that there won't be enough working people in 15 years to support us old folks, and that there won't be a market for all of the equities in peoples retirement funds.
    My thoughts:

    We are maybe ten years behind you, and are not looking to "retire" ever.

    That does not mean we plan to work at the counter of ther local drugstore when we are seventy.

    We didn't feel comfortable with a traditional pension style of investment, and have few expectations of being looked after by the government for more than bread and water.

    So our investmets are going into our own cottage industries. We will have to keep working, but at "jobs" of our choosing, most probably 'till we drop dead (:
    [SIZE=-1]Experience is like a comb that life gives you when you are bald[/SIZE]

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    Quote Originally Posted by leximog
    My thoughts:

    We are maybe ten years behind you, and are not looking to "retire" ever.

    That does not mean we plan to work at the counter of ther local drugstore when we are seventy.

    We didn't feel comfortable with a traditional pension style of investment, and have few expectations of being looked after by the government for more than bread and water.

    So our investmets are going into our own cottage industries. We will have to keep working, but at "jobs" of our choosing, most probably 'till we drop dead (:
    more or less my plan...i retired out of corporate at 45, took a few years off, and having been helping out a group of consultants for the last 7 years. I turn 56 in a few weeks and am planning on doing the same thing, but from house outside the city. Mrs. M. has no plans, other than to take a year or two off, then we keep busy doing something of interest that may pay for the day-to-day expenses, and still give us time to do what we want to do.

    nice to be a little older sometimes, but it would have been tough without those "windfall years" in the 70's and 80's.

    Looking at my little kid, she'll be hardpressed to do the same (probably why she keeps such close tabs on her inheritance...no more bikes for me, she asks)

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    Quote Originally Posted by leximog
    So our investmets are going into our own cottage industries. We will have to keep working, but at "jobs" of our choosing, most probably 'till we drop dead (:
    leximog knows what's up! good planning. well done.

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