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I wonder if there will be an steady increase in net outflow over the coming decade due to more and more retirees "out-flowing" their investments to pay their monthly bills.
Social security payments to retiree are probably just "printed money"...not a redemption (outflow) of equities. These increased "printed" electronic payments to retirees should have an overall devaluing effect on the dollar and an inflationary effect on real assets.
Monthly Pension pay outs are little more complex. There are all kinds of dynamics going on here. State and city pensions would still have in-flows from active worker contributions as well as (state/local) taxes directed at the funding of these pensions. I have also notice bonding being done to meet pension obligations. The printing press of the US Treasury is always there as a backstop to sates and cities so again, I see this as having a devaluing effect on the dollar and an inflationary effect on real assets.
Finally, retirees will try to find additional monthly income from individual investment accounts, annuities, and part time work.
Buying stocks when they are cheap and unloved seems like a good long term strategy...I like to think of outflows as "garage sales or tag sales".
Hi bee, I don't have an idea as to how all of the data (in/outs) are matched against various acct. types; but another consideration (of whatever size) is that some who place monies into 401k's and related, only do so up to and including a company match.........and then no further contributions are made by the employee for the remainder of the year. I know this is fairly common among many I know who have 401k's and 403b's. Another point as to 403b's, is the large teacher population; and they are not likely making any contributions at this time of the year. One may presume both of the above circumstances relate to a fairly large amount of dollars. Take care, Catch
Comments
Social security payments to retiree are probably just "printed money"...not a redemption (outflow) of equities. These increased "printed" electronic payments to retirees should have an overall devaluing effect on the dollar and an inflationary effect on real assets.
Monthly Pension pay outs are little more complex. There are all kinds of dynamics going on here. State and city pensions would still have in-flows from active worker contributions as well as (state/local) taxes directed at the funding of these pensions. I have also notice bonding being done to meet pension obligations. The printing press of the US Treasury is always there as a backstop to sates and cities so again, I see this as having a devaluing effect on the dollar and an inflationary effect on real assets.
Finally, retirees will try to find additional monthly income from individual investment accounts, annuities, and part time work.
Buying stocks when they are cheap and unloved seems like a good long term strategy...I like to think of outflows as "garage sales or tag sales".
I don't have an idea as to how all of the data (in/outs) are matched against various acct. types; but another consideration (of whatever size) is that some who place monies into 401k's and related, only do so up to and including a company match.........and then no further contributions are made by the employee for the remainder of the year. I know this is fairly common among many I know who have 401k's and 403b's.
Another point as to 403b's, is the large teacher population; and they are not likely making any contributions at this time of the year.
One may presume both of the above circumstances relate to a fairly large amount of dollars.
Take care,
Catch