I wanted to start a thread about the boomers and keep it strictly on topic. All other threads regarding the baby boomers seem hodgepodged; this one I'd like to keep specific and open to all ideas::: What current trends do you guys see happening in our financial markets that'll be important in this age group?? E.g. what do you guys see as market trends that affect the older crowd heading out of the work force into retirement?? I know it's an extremely broad question, but I'd like to invite all types of answers, all types of opinions.
G-Boa, Good topic. Here's a couple of sites that may have some relevance: http://bullnotbull.com/archive/dow13k-1.html http://www.suntimes.com/business/sa...0&order_by=searchdate desc&query=baby+boomers http://www.amazon.com/exec/obidos/ASIN/0262612089/bullnotbull-20 Tom
I think as boomers retire at some point you'll have a lot more people needing to cash out of things than wanting to invest, and a lot of consumers trying to live on skimpy fixed incomes no longer able to spend like before, and inflation from dollar devaluation and increase in the percentage of retired population wanting goods/services but not producing. I think Japan and Europe have been going thru this the past few years because they still had the older generation, but no boom generation behind it to pay for it. Not sure if that is correct, but both have had very slow growth internally the past decade or so, finally starting to pick up now.
boomers need to face the fact that they'll be asked to pick up the tab for their own healthcare and SS which will have to be means tested... gen X and Y are not likely to pony up the cash needed to retain our socialist approach to old age just pray that China, Japan and Asia keep lending us back the money that we're printing.............
Real Estate Development, Health Care, Are the two top investments that target the BOOMERS. The land I deal with www.Tapatio.com, All clients that we have developed the community for, build homes are coming in from West Coast and East Coast. Most boomers are buying in Cash. Our development and others like it have created a need for High End Health Care and such business's are poping up all around our community. The insurge of BOOMERS (all be it the wealther ones) and the new Health Care industries "Hospitals" poping up, creates other clients. These are 30ish and older, buying partly in Cash and 3rd party financing for the rest. Our Absorbtion Rate has trippled and BOOMERS are the reason. We are developing more land and trying to keep up with the influx. But this is a report on a Micro-economy, the MACRO I don't know about nor care about. E
Spot on. And it's no surprise they are buying in cash -- they're the recipients of the largest transfer of generational wealth ever - plus this part of the boomers - around 60 years of age - has all the power in EVERYTHING and are at peak earnings. I know this because I've been competing with them all my life - they get 2$ and I get 1.25$. This part of the boomers - - what I call the Assbag Generation -- is spending to beat the band because they have it and they now fear their death. They precipitated the second home bubble and the massive nation wide construction build out related to health care for example - that avoided a collapse in commercial real estate in the 01 recession in my view e.g. - look at all those crappy malls that now house health care or benefits management related vendors of some type. EMR, here's what I find interesting - - what will people my age do with the money? Will we be the same way? My group, what I call the Silent Ones, are the bigger part of the boomers. We know that the most people ever born were right at 1956-57 (so 50 now) and I think an even bigger birth year was 1961. I am not at all sure that we will copy the Ass Bag people because we're a little different. A tale - recently, I chided one of my former partners who is 61 about his home and an inn he owns that he'd love to sell so he can go live in his second home and live out his years at a ski area- told him nobody my age would pay what he wants for it because there aren't enough of us with the money to afford it because you guys got all the money and anyway, why would we buy his bag, his wanderlust? His kids don't want his real estate - they want their own lifestyles which are decidedly different. He didn't like hearing that.
"What current trends do you guys see happening in our financial markets that'll be important in this age group??" Just yakking, but say we assume the boomers hadn't planned too well for retirement and got in late in the game. They went through the stock market bust of 2000, um, bad taste in mouth re; the market. Then the next big shift of retirement investment dollars heads off to real estate. Now we are in the state of housing bust. Naw, this may not work out as well as planned the boomer thinks. So what else is there? What if, the next financial investment road to retirement riches has not yet been invented/designed? The teetor totter from stocks to real estate? It is unlikely to be a path of "more work" after retirement via a small business. My gut leads me to believe it'll be a return to the city/urban life style. A cash out hunker down mentality where no one will, mow another lawn, park there car in an underground garage in a condo/apt and expect to make a phone call and have it all done for them.
assuming boomers own their houses, the reverse motgage biz might pick up since boomers will likely get squeezed as benefits get cut, taxes rise and the dollar devalues........... false teeth and joint replacement companies deserve a look, if you can find your glasses
Laughed my ass off at this post. Thanks. Unfortunately my folks had a lot of their money wiped out by some health problems....luckily I talked them into selling their LA area house in late 2005 so they have some money I've doubled for them in the market in the last year or so. But too many others will be eating kibble...sad.