This is an interesting article. I remember reading Rich Dad Poor Dad a while back, and it pretty much predicted a decline in the stock market due to these demographics.
- The Baby boomer population retires, and converts its 401ks etc into annuities.
- This massive cashing out of the stock market creates downward pressure on prices and stock market collapse.
- Will last 10 years. With the population at the end of the bubble being impacted most.
This may compound the sentiments around a potential lost decade economically.
(on similar lines, Boom Bust and Echo is also a good book)
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Through a combination of procrastination and bad timing, many baby boomers are facing a personal finance disaster just as they’re hoping to retire. Starting in January, more than 10,000 baby boomers a day will turn 65, a pattern that will continue for the next 19 years.