Sunday, July 08, 2012

The Next Crash: Boomer Retirements

Hello! David J here again bringing you more of the steps on my journey toward financial independence.

This came up in the media recently. I hadn't really thought about it.

When I read it, though, it was an "Ah, HAH!" moment.

Y'know how you don't really have access to distributions from your retirement accounts until age 62 or so? Well, past age 70, certain accounts REQUIRE that you take a minimum distribution.

Ok, let's look at that for a moment. The Census bureau says that on average, 10,000 "booomers" a day reach mandatory distribution age. That means 10,000 more people are taking money out of Wall Street EVERYDAY!

Unless there are 10,000 new buyers available to pick up what the boomers' fund managers have to sell to give them those distributions, what will happen to the prices of stocks, mutual funds, etc.?

Just consider "supply and demand" as relates to prices. Where do prices (read: market values) go when there's an over-supply?

Anyone who is still years away from age 62 and has money tied up in Wall Street is about to lose what little is left after the last "crash".

So how can you protect your retirement savings?

We've already talked about self-directed retirement plans in previous posts, and we'll discuss them again in posts to come.

I just thought this important enough to get the word out to everyone by putting out a new blog post.

I'll do some more research and post the URLs I find along the way.

If you have any thoughts on this, feel free post them in the comments area. I'd like to know what you're thinking about this and what your thoughts might be on how we can plan ahead for this and be ready.

We'll talk again soon!

Take care - be well!

Much Success!

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