Too Many Baby Boomers and Not Enough Retirement Funds
by There are many of them, and they will test the system that is in place. Will the system as we know it be able to handle such a large number of people at one time? I am talking about the baby boomers. Will the baby boomers be the straw that will break the Eagle’s back?
Are you a baby boomer? Are you ready to retire? Yes! Well, I don’t know about that, banks are closing, and you cannot even take a chance to bank on that. I believe that our government and the stock market brokers have known now for years what is about to happen. Let’s just look at the facts. There are 76 million baby boomer. Baby boomers are those born in the years 1946 to 1964. Listen, our government knows what will happen if all of these people start pulling their money out of the stock market. Is there any wonder that many people have lost half if not all of their money in the stock market recently? Is there any wonder that we are hearing more and more about National Health Care? The government cannot afford to allow 76 million people to take advantage of the health care system as it stands today.
And don’t mention the Social Security Trust Fund. Remember 76 million people tapping into the Social Security Trust Fund at least. What is left of it? Is it possible that our government has been preparing and planning behind the scene for this moment? Furthermore, what about the ? Does anyone believe the stock market can survive from 76 million people withdrawing their money? Is it possible that some of what we see going on in the stock market is manipulation of the market? Why, if there is a looming threat of 76 million people causing a stock market crash, yes I can see that.
I believe storms have been brewing for sometime now. I believe we have been feeling the rain and wind band of the storms. I believe we will be hit by a storm from the west, and we can call it the “storm of Liberalism.” I believe we will be hit by a storm from the north we can call it the “storm of government short falls.” I believe we will get hit by a storm from the east we can call it “the storm of higher import prices.” And last but not least, I believe we will be hit by a storm from the south we call hurricane. I believe we will be hit with more storms than normal that will also hurt the economy of the United States.
The more jobs that are lost, the less taxes the state and federal government will receive. That is just another reason for the storm from the north “the storm of government short falls.”
What would you do if you discovered that, not only is there no money left in the Social Security Trust Fund but also no pension fund?
Right now our government is bailing of the car manufactures as if we need more car on the road. They have cars they cannot sell just sitting on dealers lots. Nevertheless, the government of the United States thinks it is right to take the American people’s money to bail out the car manufactures.
What our government should have done is put the back in the Social Security Trust Funds?
Therefore, baby boomers need to wake up and smell the coffee or there may not be any coffee to smell at all.
What I am trying to say is, I believe that our government and other entities know that the baby boomers are a serious threat to the economy. Furthermore, I believe they are working to put stop gap measures in place at the expense of the baby boomers.
Listen, I could be wrong. However, what if I am right, and you get ready to retire and there is nothing there? It will then be too late. Also, yesterday the market rallied. However, many traders were also waiting to see how the market does next week; they’re aware of the fact that post-holiday volume was light and therefore Friday’s trading might not be the best indicator of the market reaction. Therefore, don’t get caught up with the hype, instead look at the facts. Now you baby boomers you, do you still think you are ready for retirement?
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Post CommentIsabel Star***
On January 5, 2009 at 1:54 pm
Hiya Karl,
Perfectly said!
In the UK, it’s shocking how youngsters are becoming parents at an alarming rate and escalating… and the sad part is that the government ‘encourages’ it, by giving them houses, social and medical benefits instead of building ‘affordable’ after school care so that children don’t spend time running around in the streets falling prey to sex, drugs and alcohol.
Parents just do not have enough money to send them off to after school care, period! So they follow the pattern all over again.
Also to add to this sadness, is the fact that the young parent has no incentive of doing better then their parents or reaching constructive goals in life.
That is my perspective of the UK logic.
Keep up the good work!
Mary Hofstetter
On January 5, 2009 at 3:36 pm
Hi Karl, Interesting post but I do not agree. Not as many seniors are in the stock market as you might think. Anyway no one loses on the stock market if they don’t cash in at a loss. The idea of being in the stock market is to only sell on the high side.
Yes, Social Security could disappear just as some other institutions are gone and we never could dream they would fold. I was told when I was young by my parents to never believe that Social Security was a retirement fund. It is a supplemental system.
Indeed some who had investments involved with the stock market like 401K will have to post pone retirement til this all lifts. Many seniors are continuing to work, putting money in Soc. Sec., while they hope to re-coup loses.
Harold Bryant
On January 6, 2009 at 12:21 am
Very good post, Karl. I wanted to comment on what Mary was saying. This is true that there may only be a small group of boomers who actually invest directly into the stock market. But as you mentioned, 401k (once thought to be our financial savior) is a part of the whole stock market & trading system. As we all approach the age of retirement we will begin to see crashes all across the board. Ones that the Government will no longer be able to bail out. It’s all pretty economically obvious. Our economy has been worsening for decades. Now double and triple the amount of people as before will be wanting their money from Uncle Sam just about all at once. Our Social Security system was not designed to withstand such a large rush.
Who will make up for the loss? Will we borrow money yet again from our neighbors thus increasing our national deficit? Will we simply print out more twenties and tens without anything to back them thus causing a rapid boost on inflation? I don’t think there is an answer for this problem right now. Karl’s synopsis was well put.
Harold Bryant
Retired Trucker at 39
Network Marketing Coach
http://quickstarttowealth.com/wbc
North Carolina, USA
828-242-4094
Karrl
On January 7, 2009 at 6:00 pm
Seniors & Retirees on clarkhoward.com
Sep 20, 2007 — Seniors more at risk than ever for financial scams … Equity index annuities promise a portion of the gain of the stock market, …
clarkhoward.com/liveweb/shownotes/category/6/84/170/
Seniors Losing Homes and Life Savings – Associated Content
Dec 11, 2008 … Because of the slowing real estate market and tighter credit many … Seniors are losing retirement savings and homes at alarming rates …
http://www.associatedcontent.com/article/1263930/seniors_losing_homes_and_life_savings.html –
Alice Coaxum
On January 8, 2009 at 10:37 pm
Interesting, thought provoking article Karrl.
Ildi
On July 17, 2009 at 1:30 pm
Just on the stock market side. If, and when, boomers will start pulling their $$$ out of the stock market, that won’t be problem at all, actually it will be good for the economy. They not going to put the money under their mattresses and sit on it all day long. They will go buy RVs, boats, hit the road and spend their money; therefore going right back into the market. Boomers here they come again rescuing the economy. First they build it, throughout their hard work lifetime goverment and greedy torcher it, then when it’s time they come back to fix it. God bless our last best generation.