“My 401K has been suffering under the Biden admin.”
The Fed had dumped a fantastic amount of money since Covid. The only place that money can go is the stock market. Thus, everything is at insane evaluations. They are now trying to soft land an over inflated economy that has no basis for its present altitude. Their only tool is interest rates. But fifteen years ago, when the amount of money created was only “high” by comparison, an interest rate of four percent would have resulted in every cent taken in by taxes being spent on bond interest payments. To bring the economy under control would require interest payments much higher than seven. At seven the stock market would deflate, the government would need to raise taxes to double or triple their present position. We can forget about growth. They will wait until Trump is president to do that.
On top of that the Baby Boomers will all retire by 2025. They will take their money out of the market because they can’t take the volatility. The Boomers own a huge percentage of that stock. Our 401k’s are on a shaky foundation.
There is a way to bring all this under control. Get rid of about two thirds to three quarters of the government and the regulations they create and enforce. We might get some dirtier sky’s and water, but the nation would grow like crazy. Yeah, it would never happen.
“On top of that the Baby Boomers will all retire by 2025. They will take their money out of the market because they can’t take the volatility”
My opinion is people will still keep it in the market but in less risky or lower rate of return products.
Where are they going to put that money? 1/2 % interest in bank, 3/4 percent CD?
Everything I have been reading the people will keep it in the market and the millenials and gen Z are all investing in the market because no other place to put it.
Also, people are now living to age 90-95..so they will keep it in the market to get a decent return or else run out of money.
I guess we will find out.
More accurate to say that the overwhelming majority of all Baby Boomers have already retired, and that that small contingent of Baby Boomers currently still in the workforce - the stragglers, so to speak - will retire by 2030.
Regards,
The old adage, "you can't time the market", is true. Many seniors (boomers) rely on their financial advisor for investment positions. Most financial advisors will advise their investors to look past volatility and keep some percentage of their investments in stocks so when the market rebounds, the investor will have some skin in the game. Generally the greatest market gains comes after a stock or fund bottoms out. If we're not in the market, we will miss great gain.
Get rid of about two thirds to three quarters of the government
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This country has a massive bureaucracy consisting of countless people whose sole job it is to track, monitor, regulate, control and extract money from people. Not only that, there is enormous redundancy and unnecessary duplication of effort between federal agencies.
We could easily eliminate most of those jobs and save the taxpayers an enormous amount of money and aggravation. But neither party will ever do it. Both love big government.
Isn't that called Trump?