Baby Boomers and Stock Warnings
Get a Variety of Opinions
It is always an great idea to get another opinion. So we asked several experts the same question and got almost the same answer. Stay invested, diversify, invest across bonds, dividend paying stocks and mutual funds. This approach will ensure that your income is protected and diverse enough that you are not hurt by any one market. The income should continue regardless of the market ups and downs. That is really what is important in old age. Do you have enough income to live in the manner you prefer.
A Third Opinion
The writers opinion adds another element to this story. Our own experience with elder parents was that the older they got the more conservative they got. Especially in terms of how they spent their money. They were always afraid that they would not have enough to live on. So they were very careful about how much they spent.
Our parents and other older people preferred to spend time with family and not spend their money even though we urged them to do so. Instead they lived well but frugally. As baby boomers get older this same logic and thought process is sure to set in and it is unlikely that we will see this surge of stock selling that many people are predicting. They will continue to save their money to make sure they have enough to live on for a life that they are not sure how long will last.
By the time they realize that they only have a few years to live, it will be too late and their estates will pass along to their families.
That is our opinion and contrary to some investment dealers, we do not see the gloom and doom that they are predicting. Who knows what will really happened. stay tuned over the next 10 years to find out!
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