Posted on 02/25/2009 2:51:33 PM PST by Lorianne
This report builds upon previous CEPR projections to more accurately describe the current wealth prospects for the baby boom cohorts aged 45 to 54 and 55 to 64. The severity of the housing market meltdown, coupled with the recent collapse of the stock market, has had a severe negative impact on the wealth of these cohorts. Using data from the 2004 Survey of Consumer Finance and the November 2008 Case-Shiller 20 City Price Index, the authors create three possible scenarios for baby boomer wealth and find these households will enter retirement with little wealth beyond Social Security. For each cohort in 2004 and 2009, the paper analyzes net worth, financial assets, equity in real estate, percent of households in each cohort who will need cash to close on their primary residence, net worth of homeowners, net worth of non-homeowners, and the percent of homeowners who would need cash to close on their primary residence.
PDF link at source
(Excerpt) Read more at cepr.net ...
“these households will enter retirement with little wealth beyond Social Security”
I think that has been the plan all along.
I wouldn’t exactly term Social Security benefits as “wealth” either.
Prepare to work till you die, slaves!
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My life savings have been cut in half. I’ll be working until I drop dead.
How many different ways can you say ‘We’re Screwed’?
And, without any thanks from the freeloaders benefitting from your hard work.
Wij worden geschroeft.
Nous sommes vissés.
Wir werden geschraubt.
Βιδωνόμαστε.
Siamo avvitati.
There are others.
Me too, austingirl. I am slowly starting to get my head around the idea that I need a new game plan. And I fear I may lose more in the coming months and years.
Boomers, who at their age are nearing retirement, should never have been heavily invested in the stock market in the first place. The first rule of retirement planning is to decrease your risk as you get older. I’m sorry, but I have no sympathy for a 65 yr old boomer who lost money in the stock market and whose house, once valued at $500k, is now only valued at $400k.
how about babelfish?
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Yup. Investments down 50%.
Don’t need any sympathy. Lost lots of money in the market. Money I wouldn’t have had if I had invested in anything other than stocks. Since 1984. I’m still up 5X in some of the early money.
Yep, I’m down about 43%. Did some money-moving last year (and paid through the nose to the IRS) but it was a good move even if it didn’t look like it at the time. Basically there’s nowhere to hide anyway.
My husband works for the state of Alaska and he has no choice in his retirement plan except to invest in the stock market. Money is automaticslly taken out. I’m sure there are companies that do the same thing. The money can’t be taken out unless he quits or retires.
I have always planned to go on working till I drop.
Now I have another reason to add to my original reason:
Retirement and idleness kill.
No “God’s Waiting Room” for this boomer.
Without being invested there is no hedge against the killing effects of annual inflation.
Having the same amount of dollars year after year, post retirement is a guarantee to die poor.
But die you will none the less.
I am not aware of ANY retirement plans that don’t have a bond or cash equivalent option. Failure to offer such an option is a failure of fiduciary responsibility, and probably actionable.
Thank GOD most boomers do not have financial counselors as obtuse as you appear to be.
Without being invested there is no hedge against the killing effects of annual inflation.
Having the same amount of dollars year after year, post retirement is a guarantee to die poor.
Boomers should have been following conventional investment advice, which is to move money out of risky investments, like stocks, and into safer investments, like treasuries, municipal bonds, and FDIC backed CDs. This allows people to maintain modest, low-risk growth as they get closer to retirement and their margin for error evaporates. Again, this is retirement planning 100.
I just don’t have any sympathy for the boomers anymore. They were handed fabulous opportunities on a silver platter, and are now whining about not having been able to take advantage of them. The WWII generation did a fine job on its own, but they sure did raise some selfish, entitled kids.
Guess you won’t be with us long.
My dad (too old to be a Baby Boomer by a year or so) moved all of his investments out of stocks a few years ago..but then he isn’t a self-involved dumb sh*t.
“Boomers should have been following conventional investment advice, which is to move money out of risky investments, like stocks, and into safer investments, like treasuries, municipal bonds, and FDIC backed CDs.”
At what age should they do that?
You nailed it, altsehastin. Although we are down, we are OK, but kicking ourselves for not following conventional wisdom.
sw
Fortunately, I never listened to such advice... - good day.
This is the standard investment advice line. I heard this in every seminar we had on the subject. Fortunately, I had most of mine in guaranteed, even though I wasn't supposed to for ten-twelve years.
Many people got burned by not knowing sound investment advice. Hell, I know a bit, but it scares the crap out of me what I don't know.
A good example of really bad investing is some of the Madoff horror stories. You don't retire and leave everything in the hands of a dude because you're getting a great percentage return. Safe, SAFE, SAFE!!!
"We're so screwed".
"We're sooooooo screwed".
So at what age is that?
“When you got nothin, you got nothin to lose.”
Depends on when you plan on retiring.
Mostly, in the 15 years to a decade before you retire, you'll want to be all over your investment strategy, dialing it in.
Most people just put it on autopilot because we didn't get a good basic grounding in our personal economics, then end up scrambling and dodging bullets as we near the retirement dates. Also, many people don't like to talk about it with the people they should be talking about it with.
No dodging this time for many of us, I'm afraid.
To answer your initial question, if I hadn't pulled the bulk of my stuff (75%+) to safety five years out from retirement, I'd be assessing why I hadn't.
Be aware - I don’t know nuttin’ ‘bout investing - these are just snippets that I’ve absorbed.
Same here. I basically am working my whole life while God gives me strength.
Although I am trying to save money, my "retirement" will be an assisted living facility somewhere, not a condo on the beach.
Do you always ignore posts to you?
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