As Baby Boomers Spend Their Savings, Will the Stock Market Decline?

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There is a huge misconception as per how, where and when to invest.

The general public that do not deal with stocks and other dozens of way to invest in the market are confused and they get mostly wrong information or get information from people that has something to gain.

Dr. Eva Mor in her new book-"Making the Golden Years Golden" devoted a chapter that explain in simple terms what one should and shouldn't do and a precise plan to gain interest for life.

more info, on the author and the book-

www.goldenyearsgolden.com

Gabi of NY 7:22AM January 18, 2010

While overall demand for stocks may decrease, the retirees' spending money will increase demand for certain sectors of the economy. This demand will be driven by increased earnings in the areas that retirees are spending their money ie, healthcare.

Justin of TX 4:46PM October 07, 2009

We retired boomers aren't about to dump all our equities. Even following Jack Bogle's "age in bonds" maxim, we should trim our equity asset allocation by only 1%/year (i.e., at age 60, one might have 60% in bonds, 40% in equities; at age 61, one would re-balance by selling some equities and swapping into bonds to achieve a 61/39 allocation, and so on). This hardly portends a vast sell-off.

Even target retirement funds, which are "supposed" to follow a glide path, keep a major chunk in equities as one approaches age 65.

I think a larger issue is inflation. If we encounter hyper-inflation (in my judgment, anything over 10%, such as we saw in the late 70s - early 80s), many boomers will have to dump their ports just to pay the bills. Can anyone say "TIPS"?

John of CA 9:46PM September 21, 2009

To say that the stock market won't decline when boomers retire is to be blind at what is happening in the stock market right now. Do we really need to hold up a candle to see the sun?

http://www.longwavepress.com/Baby_Boomers_Generation_X_SCv1a.pdf

Bob of NY 8:10AM September 16, 2009

But there is a chance that the stock market will be flat to down for a decade or so if the incoming generations cannot buy stocks as much as their parents did. We do know that they have more debt and worse jobs. Right?

Muser of NM 9:06PM September 14, 2009

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