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Withdrawals from 401(k) retirement plans exceed new contributions, a shift that could shake up U.S.
Well, I don't have a subscription but I hope their analysis accounted for Roth conversions, RMDs, roll-overs, and similar withdrawals that may result in reinvestment after tax elsewhere.
Isn't the point of saving to provide the opportunity to spend at some later point in time? Get use to the fact that 1/3 of the US will be spending down their hard earned savings.
Seems stimulative to the economy to me.
I dare say, fewer AUM due to redemptions and spending might ruffle a few manager's feathers with respect to the growth of fees, but there will be new savers.
One persons spending is another persons income. This acquired income will partly be saved for another future retirement.
bee, that's a good point. Boomers retiring and drawing down their savings, may hurt stock returns for a period of time (maybe even a long period of time), however that money filters out into the economy and is passed in the form of wages to the younger generations.
Isn't the point of saving to provide the opportunity to spend at some later point in time? Get use to the fact that 1/3 of the US will be spending down their hard earned savings.
Seems stimulative to the economy to me.
I dare say, fewer AUM due to redemptions and spending might ruffle a few manager's feathers with respect to the growth of fees, but there will be new savers.
One persons spending is another persons income. This acquired income will partly be saved for another future retirement.
The passing of the baton if you will.
When yo take into account the other factors e.g. lack of savings for retirement, wages stagnant since the '70s - it isn't a good data point.
I am seriously thinking about buying a second home in the mountains of western NC. I would think at some point Baby Boomers like myself are going to unleash that which they have wrought over a lifetime of saving. Agree with bee that will be stimulative and a big boost to parts of the economy. Reading the obits is getting scarier and scarier as I get older making me realize you can't take it with you. Then again, according to the MFO sage's comments below I will be buying that second home with artificial money from my fertile imagination.
>>>>But your Two Million Dollar Man is likely an artificial, unrealistic strawman who mostly exists in your fertile imagination........."<<<<
Sometimes it take some encouragement to get seniors to spend. This list is a bit long, but I like getting a 10% raise at my age.
Dunkin Donuts gives free coffee to people over 55 . If you're paying for a cup every day, you might want to start getting it for FREE. YOU must ASK for your discount !
Other discounts for seniors as young as 50 years young:
Comments
Seems stimulative to the economy to me.
I dare say, fewer AUM due to redemptions and spending might ruffle a few manager's feathers with respect to the growth of fees, but there will be new savers.
One persons spending is another persons income. This acquired income will partly be saved for another future retirement.
The passing of the baton if you will.
>>>>But your Two Million Dollar Man is likely an artificial, unrealistic strawman who mostly exists in your fertile imagination........."<<<<
Dunkin Donuts gives free coffee to people over 55 . If you're paying for a cup every day, you might want to start getting it for FREE. YOU must ASK for your discount !
Other discounts for seniors as young as 50 years young:
List 1
List 2
List 3
List 4
NOW, go out there and claim your discounts - - and remember -- YOU must ASK for discount ---- no ask, no discount.