Why Retirement Spending Is More Art Than Science

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This is not overblown nor unstated, America's largest population in it's history has been robbed by the Congress' of the United States of North America - for decades, swindled by Wall Streeters - time and time again, and now abandoned by there live at home children - who do not want to work to support their aging parents. Those few who have remained solvent are now looking elsewhere for shelter and protection for there assets. IRS are close on their heels, with threats and coercive methods to governments of off shore countries. We as a nation have sold our birth rights, for cheap good made in other places. America's manufacturing base is gone and must be restored to assure any real recovery in the near future. Those who toiled in the fields, mines, factories, and offices, of the past, and paid their bills and unfair share of taxes; have also lost by robbery their work earned right to some years of peace and security; because they believed the lies of the conservative politicians, and there own invisibility as North American Citizens. September 11, chatter that too. Michael Milken helped to wake up a few more, and Maddoff scared the hell out the rest, and their Junks Bonds went floating down the toilet, not to mention a few Saving and Loan closings that we may be still paying off, because they liked Telecommunications so much; and just as we reached the golden parachute year – a world wide financial Real-estate inspired collapse. No, this is not overblown, it was just predictable, most of the wealth of our nation was stolen from us and many will have to work and pay more taxes; until, the day they die.

Mar Chand of CA 9:57PM September 22, 2009

I am 56 and my wife is 57. We both retired in 2009.
We have downsized our house and our stock holdings. We started 2009 at 80% stocks 5% cash and 15% bonds. This week we realocated our money. We are now 45% stock 45% bonds and 10% cash.
So I think there may be a lot of boomers that will sell stocks when they retire and buy bonds instead. There of course will be a lot that do not change a thing or go to all cash because of the bad market we are just coming out of.
For those that know something about financial planning or use a financial planner bonds will be a much larger % of their holdings than while they were working.
When you quit saving because you have retired you realize how important capital preservation is and bonds do a better job at that than stocks. Bonds will be more important in the next couple decades than they have in the past.

Gary of TX 12:18PM September 16, 2009

I don't know why this issue of the post-war boom generation retiring is so overblown. People will worry about anything given the opportunity. These people are working, paying taxes, buying stocks, and saving retirement funds. This will continue for the next 10 years. The global economy has massive numbers of people. It's illogical to think one generation or Americans dwarfs all others. I compare this to the Y2K drama. Nothing happened. I see nothing significant happening here either. Have some faith in people under 55.

Woodie of GA 11:33AM September 16, 2009

Articles like this fail to discuss the most important aspect of this subject. It is NOT if Boomers will sell stocks, it IS that they will quit BUYING stocks. When people retire, they no longer contribute to 401K's and other retirement accounts. This reduction in demand will obviously lower the price of stocks. Normally this would cause a price decline to start in late 2010, but because many people are staying in their jobs longer due to the economy (and still contributing to 401K's) the decline will probably be delayed by a couple years. You can send me your comments at ConsequencesTheBook.com I would love to know if you disagree and why.

John of GA 10:11AM September 16, 2009

Beware the sonic boom when Boomers start to sell their stocks, and sell they will. They are a huge demographic. When they start to unload even 4-5% a year, the downdraft will be huge, and if they need more money, because the market is down, then they will sell an even greater percentage of their holdings. As this article suggests, the 4-5% annual sale does not account for large sales of stock for life's emergencies, and those sales will increase as the Boomers become more enfeebled. Finally, who will buy when the Boomers sell? China and India depend on U.S. consumers to fund their financial health, and Boomers are not going to be the big consumers they have been during their middle age. Other countries will simply not have the wherewithal to snap up the Boomers stock sales. Caveat Boomers!

Boomerscoutofamerica of OR 3:06AM September 16, 2009

As senior citizens , now both retired for 15 years, I have found that we can live frugally on our combined Social Security, in our own home. Sudden health emergencies is a constant and growing threat to our small savings. However, home maintenance and upkeep, along with transportation (car, fuel, insurance, maintenance, etc.) are also becoming significant.

Helen Rockwell of OH 9:34AM September 12, 2009

Most people hoard their retirement monies out of fear they might outlive their assets. The uncertainty of life expectancy is a wild card we don't have control over, thus the reluctance to spend down our retirement accounts. To do otherwise would be irrational.

Jim of CO 6:01PM September 11, 2009