Post by jeffolie on Sept 20, 2012 15:52:26 GMT -6
20% of US by 2030: boomers over 65 money, voting
For a real world example of an aging society, look at today's Japan.
" ... by 2030, the number of Americans older than 65 will have expanded 75% to 69 million, making 20% of the population older than 65. With that in mind, there is growing concern on what will happen when the nearly 80 million baby boomers retire and liquidate their assets.
I did moderately agree with the stock outlook, but the next long term bottom might be as far away as 2016 in my opinion if the Dollar crisis plays out as I predict STARTING in 2014 and/or beyond. If the interest rates rise from a Dollar crisis, then mortgages will be difficult to afford if median incomes continue to lag...making REITS OR FIXED income investments bad when and if the rates rise.
PS I did NOT POST THE INVESTMENT RECOMMENDATIONS because I found them to be poorly thoughtout in my humble opinion.
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Where Boomers Should be Putting their Money Now
September 20, 2012
Over the last 40 years most baby boomers have worked hard, saved and invested for their retirement. But then in 2008 the financial crisis hit and wiped out many of their nest eggs—forcing many to reconsider their after-work plans and stay in the labor market longer.
There is no denying that America’s population is graying. Statistics show that by 2030, the number of Americans older than 65 will have expanded 75% to 69 million, making 20% of the population older than 65. With that in mind, there is growing concern on what will happen when the nearly 80 million baby boomers retire and liquidate their assets. The Federal Reserve recently cautioned that this act could sink the stock market over the next few decades. So where should boomers be putting their money right now?
I had a chance to speak with James Poe, chairman and founder of Texas Retirement Specialists to discuss the tough environment boomers are facing when it comes to saving for retirement and how to protect our nest eggs. Here is what he had to say:
Boomer: Where is the best place for baby boomers to put their money right now?
Poe: First, we would avoid the most obvious recommendations that are likely to come out of your local wire-house broker, which would be some combination of stocks and bonds, with the primary decision being what ratio to use, such as 60/40 or 50/50, or any other ratio--none of that will work for investors right now.
Bond interest rates have been depressed for several years, with the Fed promising to hold them at record lows past 2015. If you agree with the axiom that "when interest rates rise bond prices fall" be very careful with bonds. The downside space for interest rates is being squeezed to zero--rates have no where to go but up. When rates start to rise, bond prices will start to fall, with a very ugly result for bond owners. The longer the term of the bonds, the more dramatic the price drop.
Stocks are peaking at this time. We do not see the fundamental support for a stock market rally in an economy with protracted high unemployment rates and a zombie residential real estate market. We believe that our country is in a secular bear market that has 10 or more years left to run. Within past secular bear markets, there have been rallies and crashes for as long as 25 years, with the overall market going almost nowhere. These are described as "sideways" markets. But there is a lot of motion (volatility) within the market, and most individual investors do not know how to make money in such a market.
Read more: www.foxbusiness.com/personal-finance/2012/09/20/where-boomers-should-be-putting-their-money-now/#ixzz27359vr12
For a real world example of an aging society, look at today's Japan.
" ... by 2030, the number of Americans older than 65 will have expanded 75% to 69 million, making 20% of the population older than 65. With that in mind, there is growing concern on what will happen when the nearly 80 million baby boomers retire and liquidate their assets.
I did moderately agree with the stock outlook, but the next long term bottom might be as far away as 2016 in my opinion if the Dollar crisis plays out as I predict STARTING in 2014 and/or beyond. If the interest rates rise from a Dollar crisis, then mortgages will be difficult to afford if median incomes continue to lag...making REITS OR FIXED income investments bad when and if the rates rise.
PS I did NOT POST THE INVESTMENT RECOMMENDATIONS because I found them to be poorly thoughtout in my humble opinion.
==========================
Where Boomers Should be Putting their Money Now
September 20, 2012
Over the last 40 years most baby boomers have worked hard, saved and invested for their retirement. But then in 2008 the financial crisis hit and wiped out many of their nest eggs—forcing many to reconsider their after-work plans and stay in the labor market longer.
There is no denying that America’s population is graying. Statistics show that by 2030, the number of Americans older than 65 will have expanded 75% to 69 million, making 20% of the population older than 65. With that in mind, there is growing concern on what will happen when the nearly 80 million baby boomers retire and liquidate their assets. The Federal Reserve recently cautioned that this act could sink the stock market over the next few decades. So where should boomers be putting their money right now?
I had a chance to speak with James Poe, chairman and founder of Texas Retirement Specialists to discuss the tough environment boomers are facing when it comes to saving for retirement and how to protect our nest eggs. Here is what he had to say:
Boomer: Where is the best place for baby boomers to put their money right now?
Poe: First, we would avoid the most obvious recommendations that are likely to come out of your local wire-house broker, which would be some combination of stocks and bonds, with the primary decision being what ratio to use, such as 60/40 or 50/50, or any other ratio--none of that will work for investors right now.
Bond interest rates have been depressed for several years, with the Fed promising to hold them at record lows past 2015. If you agree with the axiom that "when interest rates rise bond prices fall" be very careful with bonds. The downside space for interest rates is being squeezed to zero--rates have no where to go but up. When rates start to rise, bond prices will start to fall, with a very ugly result for bond owners. The longer the term of the bonds, the more dramatic the price drop.
Stocks are peaking at this time. We do not see the fundamental support for a stock market rally in an economy with protracted high unemployment rates and a zombie residential real estate market. We believe that our country is in a secular bear market that has 10 or more years left to run. Within past secular bear markets, there have been rallies and crashes for as long as 25 years, with the overall market going almost nowhere. These are described as "sideways" markets. But there is a lot of motion (volatility) within the market, and most individual investors do not know how to make money in such a market.
Read more: www.foxbusiness.com/personal-finance/2012/09/20/where-boomers-should-be-putting-their-money-now/#ixzz27359vr12