Saturday, September 29, 2007

What If Boomers Can't Retire?



How to Build Real Security, Not Phantom Wealth

According to the author Thornton Parker, three trends are on a collision course once the baby boomer generation starts to retire. An ageing population in developed countries, over inflated corporate stock prices that create the illusion of real wealth, and the growing reliance of baby boomers on this wealth for retirement.

In other words, too many retirees selling their stocks to fund their retirements + too little younger people available to buy them = financial catastrophe where trillions of dollars worth of paper value may be wiped out as the decades go by. In fact, the author predicts a massive financial collapse and depression in the near future unless something is being done to tweak the system.

While the doomsday predictions may be a little too far-fetched, the author has presented a real issue that we have yet to find the answer. With a dwindling population in most of the developed countries, who will buy the stocks that hordes of baby boomers will unload onto the stock market once they start to retire and cash out? The developing countries are already listing a record number of equities, following down this abysmal path with no clear end in sight.

What If Boomers Can't Retire? shows you why the stock market is not a quick fix to retirement and what the baby boomers with the generations that come after them will have to do so that they can retire in peace without passing on a major financial catastrophe onto their children.

But most importantly, the 255-page hard cover gives insightful perspectives on channeling away capital from wasteful speculation and towards sustainable long term investments that will be able to meet our needs in the decades to come after retirement.

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