|
| | home | mature market news | contact us | community links | |
| ||||||||||
| ||||||||||
|
|
|
 Marketing Effectiveness |
Impact Presenters Change Your Thinking Change Your Results Or be left behind. . . |
|
|
||||
| Mature Market News - Thought Leaders and Noteworthy Events |
|
Boomer Retirement and Investment Markets If the baby boomer generation is going to revolutionize retirement, its turning 65 might not mean the same things for financial markets as some analysts are predicting. Here, an examination of latter life financial planning from a boomer's perspective. With the oldest baby boomers on the verge of retirement, disquiet has spread regarding the possible impact such massive workforce shifts could have on investment markets. On retirement, many workers in recent years have sold out of stock shares and attempted to generate a flow of current income with low-risk bonds and certificates of deposit. Some analysts and commentators see these trends continuing apace as baby boomers become the retirees of tomorrow, in which case a raging bear market might be inevitable. However, this forecast fails to recognize the changing timeline and nature of retirement transitions. While getting out of the stock market may have been advisable for seniors in the past, increased longevity is one reason why baby boomers might make alternative plans. With a good chance of living to 80, 90 or beyond, retiring boomers will want to protect their investments against inflation. In this respect, stocks make more sense than a glut of bonds. And, to the extent that retirees do pull money from the stock market, they will want to pace themselves. Most investors withdraw precious investment money slowly, with a view to making their stores last longer. A cogent argument can be made for a stock price slump, of course. When demand for stock rises, companies can create extra shares to provide buyers with what they're looking for. When demand falls, these additional shares remain in existence, driving prices down even further. Some analysts maintain that even if baby boomers modestly decrease their demand for stock in coming years, the market will feel the slackening keenly.However, extrapolations are not always as simple as they may seem. In the 1980s, remember, some Harvard economists predicted that real estate prices would drop as baby boomer home ownership reached saturation point. They did not, in part because boomers continued upgrading their property holdings and buying investment real estate. On the whole, prices continued to rise in defiance of apparently sensible predictions. The point, if you haven't already figured it out, is that smart money is refraining from any hasty predictions about the fallout from baby boomer retirement. How and when it happens, financial analysts and market players will be watching intently. A few surprises will certainly come our way. Back To Mature Market News → Go To The GenerationTarget.com Mature Market Bookstore → |
| COMPANY INFORMATION | MARKETING BOOKSTORE | TRAINING AND EDUCATION | PRESENTERS AND SPEAKERS | |
|
|
©2005 . All Rights Reserved. home | essential books and reports | mature market news | generation x market news | contact us | community links |
