Yes, Baby Boomers did lose trillions of dollars during the recession (how much, financial)
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I'm doing fine too, but that's because I could sit tight and wait. Many people could not since they needed the money for retirement, etc.
From the link;
The report found that the most fragile households were not well educated, relatively young or black or Hispanic, or some combination of those characteristics. Those families tended to have low savings combined with high debt and accrued much of their wealth through housing.
So should I feel sorry for the generation with medicare, social security, and (half) of a retirement fund? Or the people with ****loads of debt, a shoddy job market, and zero savings?
They made bad investment decisions. A legitimaye retirement fund could have, and should have, weathered 4 years of uncertainty. Even transferring all equities into bonds to be super duper safe would have yielded profits.
I'm doing fine too, but that's because I could sit tight and wait. Many people could not since they needed the money for retirement, etc.
From the link;
The report found that the most fragile households were not well educated, relatively young or black or Hispanic, or some combination of those characteristics. Those families tended to have low savings combined with high debt and accrued much of their wealth through housing.
If they were getting ready for retirement then bonds would have made up a significant chunk of their portfolio; and if bonds made up a sizable chunk of their portfolio they would have seen gains not losses.
Most of the losses that haven't recovered are housing losses, which isn't all that relevant in the short term.
From the peak of the boom to the bottom of the bust, households watched a total of $16 trillion in wealth disappear amid sinking stock prices and the rubble of the real estate market. Since then, Americans have only been able to recapture 45 percent of that amount on average, after adjusting for inflation and population growth, according to the report from the St. Louis Fed released Thursday.
What were they doing with there money that it did not recover? If you rebalanced correctly after the downturn, your portfolio should be up very significantly.
So should I feel sorry for the generation with medicare, social security, and (half) of a retirement fund? Or the people with ****loads of debt, a shoddy job market, and zero savings?
They made bad investment decisions. A legitimaye retirement fund could have, and should have, weathered 4 years of uncertainty. Even transferring all equities into bonds to be super duper safe would have yielded profits.
If they were getting ready for retirement then bonds would have made up a significant chunk of their portfolio; and if bonds made up a sizable chunk of their portfolio they would have seen gains not losses.
Most of the losses that haven't recovered are housing losses, which isn't all that relevant in the short term.
Hmmmm.... tell that to the millions who lost their houses.
What were they doing with there money that it did not recover? If you rebalanced correctly after the downturn, your portfolio should be up very significantly.
I agree. I don't know why they are not fully recovered.
From the peak of the boom to the bottom of the bust, households watched a total of $16 trillion in wealth disappear amid sinking stock prices and the rubble of the real estate market. Since then, Americans have only been able to recapture 45 percent of that amount on average, after adjusting for inflation and population growth, according to the report from the St. Louis Fed released Thursday.
So should I feel sorry for the generation with medicare, social security, and (half) of a retirement fund? Or the people with ****loads of debt, a shoddy job market, and zero savings?
They made bad investment decisions. A legitimaye retirement fund could have, and should have, weathered 4 years of uncertainty. Even transferring all equities into bonds to be super duper safe would have yielded profits.
What about baby boomers who have ****loads of debt, a shoddy job market, and zero savings?
From the peak of the boom to the bottom of the bust, households watched a total of $16 trillion in wealth disappear amid sinking stock prices and the rubble of the real estate market. Since then, Americans have only been able to recapture 45 percent of that amount on average, after adjusting for inflation and population growth, according to the report from the St. Louis Fed released Thursday.
This is, definitely, the case for me. Pre recession, my house was worth twice what it is now (if I were young, I'd buy a bigger house that could gain value faster but I'm not so I'm staying where I am) and my IRA was worth about 20% more than it is now (I figure I'll recover my losses in another 4-5 years if things keep on track and I can avoid tapping my IRA due to impending unemployment.). Pre recession, I had about 8 months income in the bank. Now I'm livingpaycheck to paycheck because my earnings are about 60% of what they were pre recession. Because my earnings are lower, my savings rate has dwindled to nothing (4% going into a 401K with a 3% match) so I'm WAY BEHIND where I expcted to be right now.
I had the right plan but reality screwed it up.
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