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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: Psycho-Social who wrote (42103)3/20/2002 7:06:09 AM
From: ChrisJP  Read Replies (2) | Respond to of 99280
 
Aging baby boomers will have to redeem stock to pay for their kids college educations before they retire.

Back in 1998 -- before "the bubble", I predicted the markets would peak around 2004. That's based on:

MIDDLE of the Baby Boom year (not the start of the baby boom, which is a stupid year to use) = 1956

plus 30 years = typical age to start having kids

plus 18 years = kids start college

1956 + 48 = 2004

And of course, while redemptions to pay for college is peaking (for about 10 years, from about 2004 - 2014), baby boomer redemptions for retirement will be ramping up.

The wild card will be Gen-X (1966 - 1986) and Gen-11 (1986 - present) contributions into equity markets. I don't think their inflows will compensate for Baby Boomer outflows, but that's just a hunch. Only your actuary knows for sure, lol.

Regards,
Chris