Are you afraid? You should be!

[GTaudiophile]

My GF and I were talking about this yesterday. This year marks the first year that Baby Boomers will start retiring. More and more will retire over the next 10-20 years. As they do, they will suck up more and more of the resources of this country. They will start shifting their investments from growth to income-producing investments. This means the economy will shift in some significant way.

And guess who will get the burden of all this? We will!

Are these issues you all have started thinking about? We're not talking long-term here either. We're talking right around the corner! It's gonna be a sh!t storm.

If you're young and in debt now, barely making it paycheck to paycheck, you ain't seen nothin yet!

 

[gigapet]

There is a sh1t ton of money to be made with this market. What services and products will these people be seeking in mass quantity. Answer that questions and you'll be set.

 

[leftyman]

good thing im retiring in 15 years :thumbsup:

 

[GTaudiophile]

Originally posted by: gigapet
There is a sh1t ton of money to be made with this market. What services and products will these people be seeking in mass quantity. Answer that questions and you'll be set.

I am well aware of that. Lucikly I am not in debt, don't live paycheck to paycheck, and can invest on a yearly basis. I am not extremely worried about me. I am worried about the other 75% of the people with a negative savings rate...and I worry about how these masses will affect me.

 

[Mallow]

you and your girl friend actually sit around talking about this kind of stuff ^_^

 

[chambersc]

i'll just move. if i'm going to go into extraordinary debt just to appease baby-boomers....i'll honestly move out of the country.

 

[tfinch2]

I don't see how this is going to drag you further into debt.

 

[Martin]

its against my nature to worry about much, if anything. I don't think much will change with when BBs retire. we'll see some jobs open up, a bit more strain on the public finances, but nothing extreme.

 

[badmouse]

Originally posted by: GTaudiophile
My GF and I were talking about this yesterday. This year marks the first year that Baby Boomers will start retiring. More and more will retire over the next 10-20 years. As they do, they will suck up more and more of the resources of this country. They will start shifting their investments from growth to income-producing investments. This means the economy will shift in some significant way.

And guess who will get the burden of all this? We will!

Are these issues you all have started thinking about? We're not talking long-term here either. We're talking right around the corner! It's gonna be a sh!t storm.

If you're young and in debt now, barely making it paycheck to paycheck, you ain't seen nothin yet!

How do you think us Baby Boomers feel? I've been paying MAX into Social Security since I started working at age 15, 40 years ago, and it's all gone to the previous generation who paid a tiny fraction of what we did, they're milking the system for all they can get, and there isn't going to be a cent left for my older years. I don't know ANYBODY my age who thinks they'll see a penny from the system for their own retirement.

Yeah, I respect the elderly and yeah, your generation is my kids and I care about you too.

The system is broken.

 

[J Heartless Slick]

Originally posted by: GTaudiophile
My GF and I were talking about this yesterday. This year marks the first year that Baby Boomers will start retiring. More and more will retire over the next 10-20 years. As they do, they will suck up more and more of the resources of this country. They will start shifting their investments from growth to income-producing investments. This means the economy will shift in some significant way.

And guess who will get the burden of all this? We will!

Are these issues you all have started thinking about? We're not talking long-term here either. We're talking right around the corner! It's gonna be a sh!t storm.

If you're young and in debt now, barely making it paycheck to paycheck, you ain't seen nothin yet!

The positive side of the boomers retiring is that there will be more jobs and promotions available.

 

[gigapet]

yeah im also confused how this equals more debt?

I see it as a tremendous business opportunity nothing more.

 

[chambersc]

Originally posted by: gigapet
yeah im also confused how this equals more debt?

I see it as a tremendous business opportunity nothing more.

it will equal more debt because they will suck more than the income is. as it is now, i believe the ratio is 16:1 (bb to payers) and the ratio will grow (i predict) to around 60:1. thus, more leeching of resources with no capital coming into the system.

 

[gigapet]

Originally posted by: chambersc

Originally posted by: gigapet
yeah im also confused how this equals more debt?

I see it as a tremendous business opportunity nothing more.

it will equal more debt because they will suck more than the income is. as it is now, i believe the ratio is 16:1 (bb to payers) and the ratio will grow (i predict) to around 60:1. thus, more leeching of resources with no capital coming into the system.

oh i thuoght you were talking about personal debt. Your talking about Social security. Im not too worried about it. The world in 35 years from now will be a very very very very different place. They will likely raise the retiring age once we are able to extend our lifespans to 150 years and beyond.

EDIT: In theory it is entirely possible the concept of retirement and social security could be phased out entirely.

 

[FoBoT]

my debt is low
seems to me there may be a shortage of workers, so we won't be unemployed

give more details on the bad part of this

 

[Ultralight]

So how do you figure the Baby Boomers swill "suck the system dry" when it has been the Baby Boomers who have put more into the "system" than any generation to this point. And, yes, there are those Boomers who are retiring, but for the next 20 years there will be Boomers still paying into the system.

The problem is a great deal of the "system" is based on a 1935 model and here it is 2006. Broken? You bet, but every time a politician tries to come up with a different way to handle retirement the Fear Hounds come out and beat it down. Why? Because it gets coveted votes.

An example: When Bush tried to move from Social Security to privatization of retirement where individuals could determine where they would place their money, a fire storm ensued, so much so that it was crushed. Here is the thing: Bush wasn't thinking so much of the Boomers as he was the next two generations. The thing is the very next generation couldn't and wouldn't understand it and followed suit in supporting what has always been. If you don't believe me, just check out the news archives in the last 2 years. The Fear Hounds did a very good job -- sadly.

 

[runzwithsizorz]

I am retired, and will only be able to receive a FRACTION of what the mrs., and I were forced to contribute,(i.e.,SS). Us, a burden on you??, bah! WE worked, saved, planned, invested,
did without, for over 40 years, and if your smart, so will you!!
Speaking only for myself mind you, I have heard there are some slackers out there.

 

[GuitarDaddy]

Social Security is the governments dirty little secret. If left alone as it was designed there would be plenty of money to fund the BB's retirement, but our government has used social security as their own private cookie jar for 50+ years. Instead of investing the surplus (payers>recivers) they have been using social security to fund the general fund to the point where SS funds have been the largest source of funds for domestic spending for decades. In effect they have turned SS in to an additional income tax.

The problem is two fold, not only will SS not be able to fund all the retiring baby boomers, but as the rolls of payers decreases it will also leave a massive domestic spending deficit.

The only answer is clear, but so horribly politically incorrect that politiciations avoid it like the plague. To fix the problem would take a combination of the following three
1. Massive tax increase
2. Massive reductions in government spending
3. Severe cuts in SS benifiets

And if we want SS to be a viable program for future generations we would have to develop a plan to begin to repay the SS fund some of the funds that have been syphoned off over the past decades. And inact legislation that would secure SS funds and prevent them from being used for general spending.

I too am in the group who has paid in for over 30yrs and will likely not see a dime of benifiets unless some drastic changes are made

 

[GTaudiophile]

Originally posted by: GuitarDaddy
Social Security is the governments dirty little secret. If left alone as it was designed there would be plenty of money to fund the BB's retirement, but our government has used social security as their own private cookie jar for 50+ years. Instead of investing the surplus (payers>recivers) they have been using social security to fund the general fund to the point where SS funds have been the largest source of funds for domestic spending for decades. In effect they have turned SS in to an additional income tax.

The problem is two fold, not only will SS not be able to fund all the retiring baby boomers, but as the rolls of payers decreases it will also leave a massive domestic spending deficit.

The only answer is clear, but so horribly politically incorrect that politiciations avoid it like the plague. To fix the problem would take a combination of the following three
1. Massive tax increase
2. Massive reductions in government spending
3. Severe cuts in SS benifiets

And if we want SS to be a viable program for future generations we would have to develop a plan to begin to repay the SS fund some of the funds that have been syphoned off over the past decades. And inact legislation that would secure SS funds and prevent them from being used for general spending.

I too am in the group who has paid in for over 30yrs and will likely not see a dime of benifiets unless some drastic changes are made

#1 is just one reason why we're screwed.

 

[aircooled]

Looks like it's time to start my business project: Senior Butt Wiping, Inc. Now I just need a price list and some moist towlettes. I'm gonna be rich!

 

[GuitarDaddy]

Yep, and the really sad part is our current administration seems content to suck all they can out of the system while driving full speed ahead into the oncoming crisis. Increasing spending and cutting taxes, creating the largest deficits in our countrys history and spending billions on the so called "War on Terror"

 

[GTaudiophile]

Originally posted by: GuitarDaddy
Yep, and the really sad part is our current administration seems content to suck all they can out of the system while driving full speed ahead into the oncoming crisis. Increasing spending and cutting taxes, creating the largest deficits in our countrys history and spending billions on the so called "War on Terror"

Sorry, but I believe this war exists. Cartoons just being one example.

It's the spending for everything else besides the WoT that concerns me. After all, a military is at least Constitutionally mandated unlike the other 75% of government services. Billions for Katrian Aid (aka re-building a city under sea level) being an even better example of federal government waste.

 

[Queasy]

Originally posted by: GuitarDaddy
Yep, and the really sad part is our current administration seems content to suck all they can out of the system while driving full speed ahead into the oncoming crisis. Increasing spending and cutting taxes, creating the largest deficits in our countrys history and spending billions on the so called "War on Terror"

Actually, the tax cuts were a good thing (helped stimulate the economy at a time when the economy needed it). It is the increase in spending on social programs and pork projects that is the problem.

We all share in part of the blame though as we've allowed Social Security to become the "3rd rail" in politics. This means that nothing will be done to fix it until it is too late. Even with both the House and the Senate being controlled by the Republicans, just Bush suggesting a modest Social Security reform program caused a huge uproar and resulted in the reform program dieing on the vine.

 

[GTaudiophile]

Originally posted by: Queasy

Originally posted by: GuitarDaddy
Yep, and the really sad part is our current administration seems content to suck all they can out of the system while driving full speed ahead into the oncoming crisis. Increasing spending and cutting taxes, creating the largest deficits in our countrys history and spending billions on the so called "War on Terror"

Actually, the tax cuts were a good thing (helped stimulate the economy at a time when the economy needed it). It is the increase in spending on social programs and pork projects that is the problem.

We all share in part of the blame though as we've allowed Social Security to become the "3rd rail" in politics. This means that nothing will be done to fix it until it is too late. Even with both the House and the Senate being controlled by the Republicans, just Bush suggesting a modest Social Security reform program caused a huge uproar and resulted in the reform program dieing on the vine.

You and I know damn well that the Dems would NEVER allow a Republican government to fix their baby. I bet Hillary will come in, propose something along similar lines, and be proclaimed a hero!

 

[GuitarDaddy]

I also believe there is a WOT, I just don't believe we are fighting it the right way.

I don't believe the 5yrs, hundreds of thousands of troops, and billions of dollars we have invested in Iraq have made any difference in the WOT. If anything we are worse off now than before we invaded Irag.

But I'm getting way to P&N here

 

[crystal]

Originally posted by: GuitarDaddy
Social Security is the governments dirty little secret. If left alone as it was designed there would be plenty of money to fund the BB's retirement, but our government has used social security as their own private cookie jar for 50+ years. Instead of investing the surplus (payers>recivers) they have been using social security to fund the general fund to the point where SS funds have been the largest source of funds for domestic spending for decades. In effect they have turned SS in to an additional income tax.

The problem is two fold, not only will SS not be able to fund all the retiring baby boomers, but as the rolls of payers decreases it will also leave a massive domestic spending deficit.

The only answer is clear, but so horribly politically incorrect that politiciations avoid it like the plague. To fix the problem would take a combination of the following three
1. Massive tax increase
2. Massive reductions in government spending
3. Severe cuts in SS benifiets

And if we want SS to be a viable program for future generations we would have to develop a plan to begin to repay the SS fund some of the funds that have been syphoned off over the past decades. And inact legislation that would secure SS funds and prevent them from being used for general spending.

I too am in the group who has paid in for over 30yrs and will likely not see a dime of benifiets unless some drastic changes are made

How about we massively wipe out SS System? Let the invidual handle their retirement. BTW, I see option 1 & 3 as happening. As for option 2, not likely.