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  1. #1
    Registered User Junior Member
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    33

    Mandatory 401k Withdrawals and Stock Indexes

    So the first of the baby boomer generation turn 70.5 years old this year. This means they will start making mandatory 401(k) withdrawals this year.

    Am I the only one wondering what effect this will have on the continuously levitating nature of stock indexes? Does this change your expectations of returns going forward as opposed to the last 35 years?


  2. Mandatory 401k Withdrawals and Stock Indexes
  3. #2
    Registered User Enthusiast
    Posts
    51
    Interesting point. After all, in many ways, demographics are destiny. Which for me explains a lot of what is happening in Japan.

    As for the US and baby boomers, they are not going to all turn 70.5 at the same time, and they will not all redeem 100% at that time. So while it will be a long, slow drag, I do not know what overall impact it will have on the markets. Just another factor to consider.

    Sure helps make the case for secular stagnation, though.

  4. #3
    Registered User Junior Member
    Posts
    31
    What about the demographics of the millennials - an even larger age cohort.

    Sure, they delayed adolescences. But they are about to hit their 30s, at which point they will actually get married, have kids, move to the burbs, get real jobs and do the things everyone else seemed to do in their mid to late 20s back in the day.

    That may well resist the impact of the greying baby boomers.

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