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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (54385)	2/21/2006 12:03:18 PM
From: GraceZ	Respond to of 110194

Most older boomers appear to be in great shape IMHO. I wouldn't waste much time worrying about 30 somethings with big mortgages, they still have time to grow out of it. It's 50 year olds with big mortgage debt with another 25 years left on it who are in trouble. They may have tons of equity in their houses and some have tons of savings in tax deferred vehicles but I would say most Boomers carry more mortgage debt than they did ten to twenty years ago (even though the ratio of debt to equity is better). Their parents otoh mostly bought one house and stayed in it for many years paying it off and living in it mortgage free for the next 30 years or more. But then its not the homeowners who are in the worst shape it is renters. Right now, half of all those eligible for early payout on SS take it because they need it. Half of those who reach retirement age have no other income aside from SS and few assets. No one expects the Boomers to differ from this model. Mostly it is single or divorced older women who are in trouble, they have lower assets and have accumulated little in the way of savings and they will live longer. What those of us who did save all their lives will find out is that the burden of caring for these women will fall on us. Let's hope most of them have a close relationship with their children.