Okay, so baby boomers begin to retire in 2006, midpoint of the "peak" is around 2015. What will we/they be doing with all their assets? Will they take them out of the market and bury them in the back yard.
I don't know what the projected amount boomers will have (as sum total) in the market, but if they take out 7% per year, that along with other retirement funds (SSI, pension, 401K, 403B etc) it sounds to me like there is going to be a whole lot of spending going on.
That spending may run the spectrum from wildly frivolous (which may be a necessity to me)spending, to just maintaining themselves with health care, health care insurance and so forth. One might expect housing to be in a slump around that time as there will be a number of boomers who don't live past 60, I could imagine real estate prices dropping. Also, fewer workers to do the tasks all the boomers were accomplishing before they retired; strong labor market, good wages. There should be a fantastic sum of dollars purchasing goods and services, (McDonalds may be a career move in 15-20 years-ha ha) which could make for a very strong economy. Relatively inexpensive housing, people spending money, good salaries.
Am I being too optimistic?? I am waiting for the hammer of reality to slam down on me. Lets hear it! (Do I dare mention Congress??) |
