What do you guys think it will be like "When Boomers Cashout"

[getbush]

Here is a link to one article that discusses the topic. I wonder about this sometimes and I just want to know what others' thoughts on it are. I'm going to look at in the future so that I can decide how to adjust accordingly. I'm 23, so I'll be around before during and after it happens with any luck.

 

[LegendKiller]

Admittedly I didn't read the whole thing. However, the ideas of impending doom are unfounded. Boomers will sell assets, cashout, but also spend and spend a lot. Furthermore, tax revenue generated not only by the spending but also by capital gains and dividend earnings will offset losses. Lastly, a huge vacuum will be left in the workforce, pushing more younger people up into those slots, many of which are very lucrative.

Place yourself correctly and when the boomers retire you can get sucked in by the vacuum and profit.

 

[waggy]

Originally posted by: LegendKiller
Admittedly I didn't read the whole thing. However, the ideas of impending doom are unfounded. Boomers will sell assets, cashout, but also spend and spend a lot. Furthermore, tax revenue generated not only by the spending but also by capital gains and dividend earnings will offset losses. Lastly, a huge vacuum will be left in the workforce, pushing more younger people up into those slots, many of which are very lucrative.

Place yourself correctly and when the boomers retire you can get sucked in by the vacuum and profit.

I don't think boomer's will spend as much as you think. but it still does not matter. tis going to end up with eh kids who's generation is going to spend like mad.

 

[getbush]

The article does contains a worse-case scenario, and calls it a worse case scenario right in the article. The situation will be somewhere in between, but there will be some kind of situation when you have that many people leaving the workforce and retiring at once.

Will the demand for those lost jobs remain?

I'm already in position for them to be old and decrepit. I have two more years left of pharmacy school.

 

[Mermaidman]

Wouldn't it be worse if the Boomers don't cashout? If they stay in the workforce . . .

 

[getbush]

Originally posted by: LegendKiller
Admittedly I didn't read the whole thing. However, the ideas of impending doom are unfounded. Boomers will sell assets, cashout, but also spend and spend a lot. Furthermore, tax revenue generated not only by the spending but also by capital gains and dividend earnings will offset losses. Lastly, a huge vacuum will be left in the workforce, pushing more younger people up into those slots, many of which are very lucrative.

Place yourself correctly and when the boomers retire you can get sucked in by the vacuum and profit.

Yes, they will sell assets, collectively, a lot of assets. The price they get for them will decrease significantly, as the supply will outpace the demand. When they dump those assets on the market, the prices will fall. That is what is implied in a selloff. If they can't get teh prices for their assets, they can't spend a lot, because they won't have a lot. Tax revenue from capital gains will shrink, while demands will increase with the increased healthcare costs of an aging population, and the drag on social security.

 

[LegendKiller]

Originally posted by: getbush

Originally posted by: LegendKiller
Admittedly I didn't read the whole thing. However, the ideas of impending doom are unfounded. Boomers will sell assets, cashout, but also spend and spend a lot. Furthermore, tax revenue generated not only by the spending but also by capital gains and dividend earnings will offset losses. Lastly, a huge vacuum will be left in the workforce, pushing more younger people up into those slots, many of which are very lucrative.

Place yourself correctly and when the boomers retire you can get sucked in by the vacuum and profit.

Yes, they will sell assets, collectively, a lot of assets. The price they get for them will decrease significantly, as the supply will outpace the demand. When they dump those assets on the market, the prices will fall. That is what is implied in a selloff. If they can't get teh prices for their assets, they can't spend a lot, because they won't have a lot. Tax revenue from capital gains will shrink, while demands will increase with the increased healthcare costs of an aging population, and the drag on social security.

Yes, they will sell, but the impact is going to be much less than you think. There is plenty of people to absorb the assets and that population is growing. Furthermore, they aren't going to sell off in one massive swing, it's going to take 20 years and even then there will be plenty of assets left over that will be gifted to future generations.

As their assets decreases and their spending on goods and services increase it will have a balancing effect on everything. The money just doesn't disappear and go into a black hole, companies get it and perform well, thus their stocks look attractive. If prices of capital assets go down while the companies perform well, then they will make an attractive investment, reaping profits for those who do invest. As the investment is made and arbitrage profit is found, the prices will stabilize to the correct levels.

Supply and demand is only one function of the capital markets.

 

[jlbenedict]

Originally posted by: Mermaidman
Wouldn't it be worse if the Boomers don't cashout? If they stay in the workforce . . .

I think some of that will happen as well. If someone is well off, and making good money, I believe they become greedy. There is this contractor here where I work that claims he brings in over $5k monthly (retirement, real estate, etc), yet he came back to work as a contractor (retired from the govt). I think to myself, "Are you that goddamn miserable and bored with your life that you come back to work!"
And he was only hired part time (Tues, Wed & Thursday), so WTF? Alot of people claim they are bored, so they choose to continue work. BS
Put me in your shoes; I can always find something to do in my spare time and never become bored.

 

[Red]

They are coming to Florida to enjoy a comfortable retirement. That's why I'm here to sell them new, affordable homes!

 

[j00fek]

it'll happen all in stride, nothing BIG will come out of it i don't think. people leave the workforce everyday.