Destiny Is Demography (The Jig Is Up)

The Daily Reckoning ^ | 9-16-2011 | Bill Bonner

[Red Badger]

As we boomers age, we are not leaving the workforce in the same numbers as our predecessors did. We are working years longer than usual and will continue to do so out of financial need. My 401K is stagnant and I cant expect SS to be there.......

[Mr. Jeeves]

Deutsche Bank expects stock market investors to lose about 10% of their money — in real terms — over the next 10 years, while the economy goes through 3 recessions!

This strikes me as an overly optimistic prediction.

[blam]

" We are working years longer than usual and will continue to do so out of financial need."

I retired at age 50...17 years ago.

[Rocky]

You are the exception.

[Red Badger]

I’m 56, and dont plan on retiring any time soon. Same with my co-workers. Of course, living in Florida makes it easier........

[Vigilanteman]

Boomers working longer really is the only solution. I can see some really creative solutions coming into play. For example:

1. Work 4 days a week and collect 20% social security, 3 days and collect 40%, 2 and collect 60%.
   
2. Minimum age of 62 for certain jobs, particularly in the government sector. Start cutting the bottom 20% of performers every year to create more openings.
   
3. Work at home type jobs. Property tax exemptions for anyone over 60 who puts in a given number of hours tutoring, baby sitting, etc.
   
4. Periodic drug testing for people receiving SSI crazy checks. Let them learn to pick vegetables, fix roofs or do all the jobs we supposedly need illegal aliens to do.
   
5. Same rule applies to elderly immigrants as American natives-- you need to work the same number of quarters to become eligible for Social Security, SSI, etc. If your kids want to bring you in from the home country, they can either make enough money to support you, you can bring enough savings to support yourself, or you can stay in your home country where the cost of living is probably cheaper. Your family finances are not the responsibility of the American taxpayer.

[blam]

"Of course, living in Florida makes it easier........"

LOL. I'm just north of the Florida state line in Mobile.

[Red Badger]

I’m in Ft. Walton Beach!....Howdy, neighbor!.......

[BenKenobi]

Indeed. This is why I cashed out in 2008. Peak of the Boomers prime spending ages passing through.

Demographics is destiny.

[BenKenobi]

The real solution is the following.

1. Cut taxes.
2. Cut spending.

The only way you are going to see kids having kids is if you get rid of the following.

1, the prices of homes have to fall back down to market demand. Kids can’t buy a house and raise a family because houses are way too expensive.

2, taxes have to be cut, so that people can actually work and SAVE money.

3, eliminate pre requirements for jobs that aren’t necessary to do the jobs. Creeping credentialism makes kids take longer to actually get productive jobs.

4, eliminate the public sector unions.

5, Why does university cost so much and take so long? It’s a huge burden on kids these days.

All 5 of these things are going to go away, because they are killing America.

[I see my hands]

35 here. And have been living larger every day since.

(I'm not being cocky. I'm fully cognizant that no one is, nor am I, guaranteed one more morsel of food nor even one more breath).

[Red Badger]

We already have property tax exemptions for seniors........

[mrreaganaut]

Oh, please. This is just the “Culture of Death” turning on the Baby Boomers, as they’ve gotten “too old.”

Also, those who are old enough (ahem) to remember Carter remember the “new normal” of lowered expectations and energy misery that the press blathered about, just like this article. This piece only proves that History repeats itself - or rather, that lazy hacks can plagiarize 35 year old articles when nobody calls B.S. on them.

There’s nothing wrong with this Carterized economy that a little Reaganomics won’t cure.

[kearnyirish2]

The Hispanic adult-care workers (not all Hispanics) will be quite happy to have your folks sit in their own sh!t for days on end; breed or die!

[blam]

"We already have property tax exemptions for seniors........"

We do too but, you have to be on the verge of poverty to qualify. It's age and income.

[101voodoo]

It seems if all these retirees are selling stock to finance their retirement there should be a huge influx of capital gains tax money flowing to the government

[DuncanWaring]

Investors are unlikely to see their stocks return to 2010 levels, says the report, until 2027.

A mere 17 years.

After the stock market (DJIA) peaked in 1929, it didn't return to that level for another 25 years.

[blam]

"It seems if all these retirees are selling stock to finance their retirement there should be a huge influx of capital gains tax money flowing to the government "

When you're old, you pay way less taxes when you cash-out.

[101voodoo]

Think of the volume. Besides after Ostupid gets done those rates will be much higher.