Kamala Trump
Verified User
I know this will not be the most popular post on here as many love their 401(k)s but at least take an open mind to this.
A lot of the growth in the stock market over the past 30 years can be attributed to this investment vehicle. Pensions purchased stocks but by law were required to have a higher diversification with bonds as well as cash. Americans putting their retirement money into the financial markets has resulted in a boom for Wall Street.
I used to work in Financial Services, and in the beginning of my career baby boomers were the big topic of discussion and how to help them manage their assets as they go into retirement. I would always ask the smart guys and the big wigs what was going to happen to the market values as these people start liquidating assets. Their response is that the assets would be bought by younger employees investing in their 401(k). Knowing that there were more baby boomers than my generation, I always kind of questioned that. I was patted on my head for my inquiry and told not to worry about it. With the economic situation as it is today I question it even further under a different premise.
What if the generation that comes up behind you simply isn't as wealthy as the generation that proceeded it. What happens to these retirement account values than. If everything is truly based on supply and demand and there are less workers to buy the assets of the retiring class, doesn't it mean that the retiring workers assets will be reduced in value?
We saw a myth that home values always appreciate go up in smoke this year. Is the next myth the the savings in 401(k)s are somewhat safe over time. That the market always goes up? What happens when as someone is enjoying retirement, their assets continue to decline not rise with time as they withdrawal money?
We saw a massive amount of wealth on paper disapear overnight in this country. Are we truly wealthy or is are wealth simply on paper only and when people go for their assets the true value of those assets will be realized.
Time will only tell.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6645061
A lot of the growth in the stock market over the past 30 years can be attributed to this investment vehicle. Pensions purchased stocks but by law were required to have a higher diversification with bonds as well as cash. Americans putting their retirement money into the financial markets has resulted in a boom for Wall Street.
I used to work in Financial Services, and in the beginning of my career baby boomers were the big topic of discussion and how to help them manage their assets as they go into retirement. I would always ask the smart guys and the big wigs what was going to happen to the market values as these people start liquidating assets. Their response is that the assets would be bought by younger employees investing in their 401(k). Knowing that there were more baby boomers than my generation, I always kind of questioned that. I was patted on my head for my inquiry and told not to worry about it. With the economic situation as it is today I question it even further under a different premise.
What if the generation that comes up behind you simply isn't as wealthy as the generation that proceeded it. What happens to these retirement account values than. If everything is truly based on supply and demand and there are less workers to buy the assets of the retiring class, doesn't it mean that the retiring workers assets will be reduced in value?
We saw a myth that home values always appreciate go up in smoke this year. Is the next myth the the savings in 401(k)s are somewhat safe over time. That the market always goes up? What happens when as someone is enjoying retirement, their assets continue to decline not rise with time as they withdrawal money?
We saw a massive amount of wealth on paper disapear overnight in this country. Are we truly wealthy or is are wealth simply on paper only and when people go for their assets the true value of those assets will be realized.
Time will only tell.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6645061
