Interesting perspective, but does explain some of the behaviour I already see. With zero rate interest rates and a zero rate economy, people are already selling stocks to make ends meet as even the dividends are too low.
DaveAof WI6:02PM December 23, 2011
This was one of the main themes of my book "What If Boomers Can't Retire? How to Build Real Security, Not Phantom Wealth" which was published about ten years ago. It is a shame (or scandal) that so few in the financial services industry were willing to think seriously about how they were misguiding individuals and retirement plans while selling very bad advice.
Thornton Parker
Thornton Parkerof VA2:23PM September 02, 2011
More than half of boomers have less than 50k in the market, one quarter have none and the final quarter have 250k plus and are long term investors. Those in the middle category probably will take out half in a lump sum to fix a roof or pay for a wedding. The ones with 250k plus will take it out at 4% and will earn enough to replace whats removed. This will be x and y gen inheritance. Hopefully the ants will not be taxed to pay for grasshoppers folly with means testing of SS/medicare. I have family members who sold a business netting a couple million and receive less than 40k in interest from t-bills. Not exactly a miilionaire lifestyle, social security is the base for their retirement.
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DaveA of WI 6:02PM December 23, 2011
Thornton Parker of VA 2:23PM September 02, 2011
Foxlor of CA 12:22PM August 25, 2011