Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
theres alot of baby boomer investment money out there... and thats not counting houses... i forgot the percentage of money just fidelity had just in their possession for baby boomer age folks and it was staggering.... there is also quite alot of emerging markets also with wealth beyond anything they ever had that can take up the slack by loosing the baby boomers.
demand for goods,services and investments from all these nations that never had money before will be enourmous eventually.
all the speculation about the negative effects from loosing the boomers reminds me of all the specualation we had about how disasterous a gm bankruptsey would have on every aspect of life in america. it turned out to be very different from what everyone spewed about what would happen if they failed.
Just about everyone I talk to who has aging parents (80 plus) is shocked and (pleasantly) surprised at the wealth they have. I mean, they grew up modestly and now realize their parents are sitting on a good nest egg. I spoke to a girl yesterday and she told me her parents just told her they have over 2 million. She was stunned.
But the same huge numbers mean most will also be able to buy i the same market where they want. That same number figure means markets will shift to service their neds just has it has when they were the workers.Its really just starting and we already see alot of changes starting in how they has retired change the market place. Perspnally Never have we seen such numbers of popualtion shifts in that age group when retiring to new locatio from where they worked.
Aren't there too many options and uncertainties for boomers to tell what's going to happen? Sure, some will pass on their houses to their children, but what percentage? Many children live elsewhere. Others will just stay put because they have a paid-off house to live in, but what percentage? Many boomers who planned to sell will probably hang on for a while because they cannot realize the amount of money from a sale that they hoped to get, but how many are in this group? And how many more years of price stagnation will we have in real estate? This too is unknowable, is it not? I can only be certain of one thing: It will be interesting to see how this all plays out!
And how many more years of price stagnation will we have in real estate? This too is unknowable, is it not? I can only be certain of one thing: It will be interesting to see how this all plays out!
I think we'll probably see a few more years of stagnation-especially on the coasts- simply because for starters the fundamentals are still out of whack and heavily so due to their no longer being an exotic loan system in place that can support prices that are grossly mis-matched to actual incomes. There is absolutely no reason why a starter home in the Bay Area- where I live- should cost $450,000-$500,000 given the local median. Priced need to come down quite a bit more.
Just about everyone I talk to who has aging parents (80 plus) is shocked and (pleasantly) surprised at the wealth they have. I mean, they grew up modestly and now realize their parents are sitting on a good nest egg. I spoke to a girl yesterday and she told me her parents just told her they have over 2 million. She was stunned.
It is called riding the wave, the boomers pushed up all asset values for the older generations.
The majority will not be able to retire. Instead they will be driving 50mph in the fast lane with their left blinker on in front of you while they are on their way to their McJob to supplement what ever is left of their Social Security. They will also have a bad attitude and screw up your order when you get to the drive up window. 70 something million of them!
I think boomers have relied way more heavily on their houses to facilitate their retirement versus actual cash or investment savings. This worked quite well during the bubble-especially in the coastal areas. But now that the boom is gone most don't have a plan B. Not all of them can sell at sky-high prices to young folks and move to the beach.
I think boomers have relied way more heavily on their houses to facilitate their retirement versus actual cash or investment savings. This worked quite well during the bubble-especially in the coastal areas. But now that the boom is gone most don't have a plan B. Not all of them can sell at sky-high prices to young folks and move to the beach.
Very true, according to a study I read about 5 years ago, about 28% of boomer's with liquid assets over $100,000 said they plan on using home equity to supplement their retirement. Ooops!
Very true, according to a study I read about 5 years ago, about 28% of boomer's with liquid assets over $100,000 said they plan on using home equity to supplement their retirement. Ooops!
The problem with that line of thinking is that it totally relied on younger buyers willing and able to stomach up the dough for their overpriced houses. It was like a lot of boomers counted on us younger folks to buy their houses and fuel their retirement. Only problem is that for example- where I live in the Bay Area, a huge percentage of the housing is owned by boomers- all of whom will likely be selling within a close time period. I suspect there will have to be some "tough love" once its realized we can't be counted on to pay overinflated prices for their homes.
The problem with that line of thinking is that it totally relied on younger buyers willing and able to stomach up the dough for their overpriced houses. It was like a lot of boomers counted on us younger folks to buy their houses and fuel their retirement. Only problem is that for example- where I live in the Bay Area, a huge percentage of the housing is owned by boomers- all of whom will likely be selling within a close time period. I suspect there will have to be some "tough love" once its realized we can't be counted on to pay overinflated prices for their homes.
Maybe! Maybe not! There is often some unexpected twist of fate that comes into play when least expected, making a joke of all the prophecies based on the information available at the time when a prediction is made. Soon enough we'll see how it all plays out.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
