Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Thursday, May 29, 2008 at 12:00 AM

E-mail article     Print view

Analysis

Trickle, not a flood

The first wave of baby boomers turns 62 this year, raising concerns that the 78 million people born between 1946 and 1964 will start tapping...

The Associated Press

The first wave of baby boomers turns 62 this year, raising concerns that the 78 million people born between 1946 and 1964 will start tapping their nest eggs en masse, pounding financial markets. But experts say the fears are overblown.

Increased life expectancies, a desire to shore up savings and a trend toward working past retirement age appear likely to stem the withdrawals.

The Investment Company Institute, the mutual-fund trade group, reports that six of 10 households with traditional retirement accounts only tap them to meet the government's mandatory withdrawal requirements beginning at age 70 ½. And the oldest boomers won't reach that age for nearly a decade.

"This rush to the sales counter to sell securities and positions, I don't think it's going to happen," says Jim Bell, president of Bell Investment Advisors, Oakland, Calif. "A lot of boomers are going to continue working in some capacity."

Bill Stone, chief investment strategist for PNC Wealth Management in Philadelphia, contends boomers will need to maintain their investments to keep up with inflation. "If you're going to live a long time after you retire, in order to keep purchasing power you pretty much better have some portion in stocks," he says.

Congress's Government Accountability Office found in a 2006 study that factors like dividends played a bigger role in stock-market returns from 1948 to 2004 than changes in the age makeup of the U.S. population. Fewer worker pensions, rising medical costs and worries about shortfalls in Social Security mean more retirees will likely stay invested longer, the GAO says.

Stone expects younger workers and newly wealthy investors from abroad will help offset outflows by boomers.

Copyright © 2008 The Seattle Times Company

More Business & Technology headlines...

E-mail article Print view      Share:    Digg     Newsvine

advertising

Nintendo re-enlists Mario, savior of video-game industry

Verizon-Frontier deal stirs concern among consumers

Brier Dudley: 'Guitar Hero' founder excited about future

Gaps for consumers in Democrat health care bills

Hutch gets $10M from Bezos family for immunotherapy research

Advertising

Video

PNW Magazine | Easy As Pie
A little friendly competition between professional pie-baker Kate McDermott and The Seatttle Times' Kathleen Triesch Saul is handled with great taste.

Real Salt Lake wins MLS Cup
Raw Video | Real Salt Lake fans celebrate
Raw Video | Real Salt Lake receives the MLS Cup trophy
Real Salt Lake fans enter Qwest Field
Raw Video | MLS Cup Opening Ceremony
LA Galaxy's David Beckham
Real Salt Lake's Kyle Beckerman
MLS trophy arrives in Seattle
Chittenden Locks Inspection

Marketplace

Open Houses

Find this weekend's open house listings.
Or search by location:

nwautos

Less is more: Group rides, good gas mileage have led to a scooter swarm in Seattlenew
Local riders say they've seen a surge in scooter interest in recent years, mostly from people wanting another commuting option. Seattle now ranks as o...
Post a comment

 
Most read
Most commented
Most e-mailed
 
 
Advertising