Comments on: Will the Boomers take the Boom with them? http://www.investorgeeks.com/articles/2006/06/02/will-the-boomers-take-the-boom-with-them/ Learning and sharing investment knowledge. Mon, 08 Sep 2008 10:54:33 +0000 http://wordpress.org/?v=2.0.4 by: Michael Patzer http://www.investorgeeks.com/articles/2006/06/02/will-the-boomers-take-the-boom-with-them/#comment-1050 Sun, 04 Jun 2006 18:22:13 +0000 http://www.investorgeeks.com/articles/2006/06/02/will-the-boomers-take-the-boom-with-them/#comment-1050 In "The Future for Investors" by Jeremy Siegel, he postulates that because individuals in some developing countries (China, India, etc.) are seeing increases in their wealth, they will likely provide the investment in our economy to prevent a depression or recession. This means foreign investors may take controlling stakes in US companies, which may be opposed by protectionist US lawmakers. In “The Future for Investors” by Jeremy Siegel, he postulates that because individuals in some developing countries (China, India, etc.) are seeing increases in their wealth, they will likely provide the investment in our economy to prevent a depression or recession. This means foreign investors may take controlling stakes in US companies, which may be opposed by protectionist US lawmakers.

]]> by: Trenet http://www.investorgeeks.com/articles/2006/06/02/will-the-boomers-take-the-boom-with-them/#comment-1025 Fri, 02 Jun 2006 23:51:27 +0000 http://www.investorgeeks.com/articles/2006/06/02/will-the-boomers-take-the-boom-with-them/#comment-1025 Have you checked out the savings rate lately? Boomers as a whole aren't doing much investing. Chances are they will work well past 65, improving the outlook for social security in the process. Since they are also expected to live longer, what money they do save will need to be spread over many more years than is typically planned for, which may mute the stock market effects. Have you checked out the savings rate lately? Boomers as a whole aren’t doing much investing. Chances are they will work well past 65, improving the outlook for social security in the process. Since they are also expected to live longer, what money they do save will need to be spread over many more years than is typically planned for, which may mute the stock market effects.

]]> by: Brian http://www.investorgeeks.com/articles/2006/06/02/will-the-boomers-take-the-boom-with-them/#comment-1024 Fri, 02 Jun 2006 22:01:14 +0000 http://www.investorgeeks.com/articles/2006/06/02/will-the-boomers-take-the-boom-with-them/#comment-1024 This is obviously not meant to be exhaustive but I would imagine that boomers with fair sized retirement accounts lined with stock would be "not-poor" people and I think it's fairly well ccepted that the "not-poor" people of the world typically have longer life expectancies. If I was 57-63 right now looking to retire withing the next 5-10 years I would expect to live for a long time after retirement and would there fore value a little more risk in my portfolio to generate gains throughout retirement. I don't think I'd be investing in emeging markets but I'd keep my money in dividend paying stocks. The 5-10 years before retirement plus the first 5-10 years or so worth of retirement would be plenty of time to minimize volatility and realize stock appriciation while earning dividend income, whether that income is reinvested or not. My assumption is that most boomers would see that their money will be around for another 30 years and would not pull out of stocks but merely move their portfolios into more mature companies with long histories of paying dividends. These companies are less volatile and provide consistant income year after year. If I were a betting man I would bet that these people would put money into large-cap dividend paying companies and force these stock prices up slowly over the next 10 years while pulling out of small-cap stocks and holding there stock prices down. I think the boomer shift will cause the stock market to act slightly differently over the next decade but not for the worse. I think small-caps will continue to experience the same volatility but l will lose some of it's 10-year pace of gowth while large-cap value plays will maintain their diminished volatility compared to small-caps but will increase their 10-year pace of growth. In 10-15 years once the entire boomer shift has taken place I thnk things will revert back to the way stocks perform right now. This is obviously not meant to be exhaustive but I would imagine that boomers with fair sized retirement accounts lined with stock would be “not-poor” people and I think it’s fairly well ccepted that the “not-poor” people of the world typically have longer life expectancies. If I was 57-63 right now looking to retire withing the next 5-10 years I would expect to live for a long time after retirement and would there fore value a little more risk in my portfolio to generate gains throughout retirement. I don’t think I’d be investing in emeging markets but I’d keep my money in dividend paying stocks.

The 5-10 years before retirement plus the first 5-10 years or so worth of retirement would be plenty of time to minimize volatility and realize stock appriciation while earning dividend income, whether that income is reinvested or not.

My assumption is that most boomers would see that their money will be around for another 30 years and would not pull out of stocks but merely move their portfolios into more mature companies with long histories of paying dividends. These companies are less volatile and provide consistant income year after year.

If I were a betting man I would bet that these people would put money into large-cap dividend paying companies and force these stock prices up slowly over the next 10 years while pulling out of small-cap stocks and holding there stock prices down. I think the boomer shift will cause the stock market to act slightly differently over the next decade but not for the worse. I think small-caps will continue to experience the same volatility but l will lose some of it’s 10-year pace of gowth while large-cap value plays will maintain their diminished volatility compared to small-caps but will increase their 10-year pace of growth.

In 10-15 years once the entire boomer shift has taken place I thnk things will revert back to the way stocks perform right now.

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