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Special Report Downloads |
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Special Report One: Thinking Like A Buyer When The Boomers Are Selling 57 Pages |
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Special Report Two: Adding Up $44 Trillion Of Boomer Wealth Expectations 50 Pages |
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The Secret Power Within Your Mortgage (Sample Chapter) Chapter One: Preparing For Rough Weather (19 pages, link takes you to dedicated website) |
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Please note that clicking on the download links above will open an
Adobe® Acrobat® 7 PDF file. To download the latest free
version of the Adobe Reader, go here:
Every seller needs a buyer, and 50 million Boomers cashing out a planned $44 trillion
in paper wealth will need a lot of very motivated buyers. In the pages that follow we will seek to
understand the perspectives of those buyers – the generations following the Boomers – during the decades when
more Boomers are selling more investments than any generation before
them. Even as the Boomers reduce
consumer spending, and make staggering financial demands for the payment of
Social Security and Medicare benefits. Could it be that what matters is not so much these individual
experiments (for all are unprecedented), but how they will all combine and
interact?
This
holistic perspective is not the usual way that we look at
long-term investments. Indeed, we
invest so that we won’t have to personally reduce our spending when Social
Security and Medicare experience their widely expected problems in the decades
to come. However, when we take the people-based
perspective of evaluating investments based not upon mathematical
equations from history, but upon the situation and motivations of the buyers
when they are buying, then everything changes.
For
these future buyers will be living in a single world, where they will be
simultaneously paying for all of the promises that Baby Boom generation has
made to itself. Or so the Boomers plan.
Did
you ever stop to wonder just how tens of millions of bright, creative
individuals at the peaks of their careers will react to these unprecedented
demands? What their self-interests will
be? What actions the younger
generations will take to keep more of the real goods and services they are
creating, instead of obediently and passively passing them over to
retirees? How smart investors will
price markets dominated by many millions of retirees trying to cash out tens of
trillions of dollars of investments, with no end to the selling in sight for
decades?
The
over 50 pages that follow will present a fresh and out-of-the-box exploration
of the investment implications of the retirement of the Baby Boom, using the
people-based fundamentals of finance and economics. We are going to take a walk in the shoes of the buyers, when they
are buying – and maybe along the way, start to change the way you think about
long term investing.
Your
guide for this walk into the future is a Chartered Financial Analyst, MBA and
former investment banker, with over 20 years of financial experience. He is a futurist, consultant, speaker, and
author, with previous investment book publications by major publishers.
A
little over 50 million Boomers have retirement accounts and/or
pensions. Total investments in accounts
dedicated for Boomer retirements was $6.1 trillion, including
IRAs, Keoghs and pensions.
Those
assets will not be cashed out today, but are invested for the long term with
the expectations of substantial returns.
Using the methodology described herein, total expectations for
retirement investment wealth for all 50 million Boomer retirement investors
were calculated to be $44 trillion.
The
present value cost of those wealth expectations (at 3% inflation) is over $22
trillion, almost twice (180%) the size of the current annual national
economy.
Even
if those wealth expectations are met in full, the sum of all Boomer pension and
retirement account income (in current dollars) will replace only 45%
of the total income for all 77 million Boomers, meaning a shortfall of 55%
for the entire generation, that will have to be made up from other sources.
The
amount of paper wealth expected to be cashed out for real goods and services by
Boomers will build year by year, as more Boomers retire each year, until it
reaches a peak of $2.3 trillion per year by 2027.
The
inflation adjusted annual cost of cashing out those wealth expectations will
peak at $1.3 trillion per year in 2027 – about 2.5 times as
large as the current annual cost of Social Security.
(download here)
