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We are doing our best to help the economy now, however in my last year of working before the big cut in income (about 40%). In the last couple of years, getting ready to sell we have replaced the windows and roof, kitchen counters, bathroom vanity, painted the outside, and seal coated the driveway. We bought a 2020 SUV and a classic car, are we eating out more, 1-2 times a week.
Impressive.
I don't know if I'll ever be able to convince my other half to sell this place and move on, but if we did we wouldn't do any work or upgrades. The way it works around here is that the new owners buy the house as-is and have the house scraped. There are no empty lots here, unless they've been scraped too.
You mean $35 trillion in assets while the other $40 trillion goes to pay for nursing homes and long term care, along with major medical expenses for cancer and strokes etc., while slowly dying a lingering death.
Wiki says Boomers were born 1946 to 1964, so 2/3rds of the Boomers have already retired, & started spending some of their nesteggs, or the income derived from their nesteggs.
The oldest Boomers are 77 yrs old now, so some have already begun dying off...covid likely got a lot of them.
I don't see the tail end of the remaining Boomers retiring, as being any big cash infusion into our economy. Boomers have been stimulating the economy for 12 years already, & we have likely passed the peak for Boomer spending.
I'm on the back end of the Boomer generation, so I've got 4 more years to go to reach retirement age, & have no plans to change my spending habits just because I hit a certain age.
69.6 million
Still a lot before the Baby Boomers too (1922 to 1945).
Wiki says Boomers were born 1946 to 1964, so 2/3rds of the Boomers have already retired, & started spending some of their nesteggs, or the income derived from their nesteggs.
To put it into perspective, today's 80 year olds were born in 1943.
If the Boomer generation is 1946-1964 that makes them between the ages of 59-77. A good portion of them have already retired and some are no longer alive.
I suspect that many of the Boomers will NOT spend a lot of their savings. In fact, many Boomers are increasing their net worth yearly even though they are retired. This is due to their incomes from various savings, pensions, and investments being more than enough to live comfortably on.
Therefore, it appears to me that the biggest beneficiaries of the Boomers' assets will be whomever they leave their estate to when they pass on. I would say that for most Boomers, that will be another 15 years or so.
That's why they set up the Required Minimum Distribution system for IRAs and 401Ks. Regardless of your income you will have to start withdrawing at age 73 at the latest. And those RMDs are going to push a huge amount of money into the economy and a lot of money into the Federal treasury via taxes.
I suspect that many of the Boomers will NOT spend a lot of their savings. In fact, many Boomers are increasing their net worth yearly even though they are retired. This is due to their incomes from various savings, pensions, and investments being more than enough to live comfortably on.
Therefore, it appears to me that the biggest beneficiaries of the Boomers' assets will be whomever they leave their estate to when they pass on. I would say that for most Boomers, that will be another 15 years or so.
I occasionally see a bumper sticker "I'm spending my kids' inheritance"
I seem to recall a book entitled "Die Broke" which advised the wealthy to plan their finances in such a way that when they died they'd have little to no assets left. I'm sure kids weren't too thrilled about this strategy.
That's why they set up the Required Minimum Distribution system for IRAs and 401Ks. Regardless of your income you will have to start withdrawing at age 73 at the latest. And those RMDs are going to push a huge amount of money into the economy and a lot of money into the Federal treasury via taxes.
RMD's will increase federal taxes, but they may not do much to stimulate the economy. There's nothing that prevents someone from taking an RMD from their retirement plan and then, after paying taxes on it, invest the rest of it in the stock market, bonds, or CD's where it can/might make them some more money.
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Lot of Baby Boomers left
