What will the effect of the boomer retirement have on the stock market?
Posted by Dolores
poet1b asked:
Right now, boomers are preparing for retirement. Most are earning in their peak years or near their peak income levels. They are pumping more money than ever into the market to pay for their retirements.
Right now, boomers are preparing for retirement. Most are earning in their peak years or near their peak income levels. They are pumping more money than ever into the market to pay for their retirements.
The ratio of people pulling money out of the market to fund their retirements in comparison with the people putting money into the market to save for their future retirements is better than it will be for at least the next three generations, most likely more.
In the next five to fifteen years, the ratio of people paying into the market to save for their retirements in comparison to the people taking out of the market to pay for their retirements is going to change drastically. The draw on the market will increases drastically over the savings rate to finance retirement. This will be a historical first for the stock market.
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May 14th, 2009 at 4:50 am
Kansieo.com
Perhaps invest in retirement homes or products of that nature!
May 15th, 2009 at 3:15 pm
Create a video blog
To pull large amounts of money from the market would mean paying huge capital gains taxes…I don’t think it will effect the markets at all…
May 19th, 2009 at 12:48 am
Website content
Not to mention the amount that will be filing for social security.
Has there been a worse time in history to be in your 20’s?
May 19th, 2009 at 1:59 pm
retirement
No - this is what is called a myth - the number of money that is projected to be put into the stock market over the next 5 to 15 years is expected to increase not decrease as a larger percentage of Americans and foreign investors invest in the US Markets as they become more global in their nature. Also - since people are living longer people are going to need more growth in their portfolios. That is why the best place to put your money right now are US Multinations that increase their dividends annually like GE, Exxon-Mobil, and Pepsico. What baby boomers want is continued growth and income and you should be investing in such stocks as these.
Good Luck!!!
for the record I have holdings in GE, XOM, and PEP.