This story is about how the retirement of Baby Boomers will affect the market, specifically mutual funds. But it may get you thinking about the type of business opportunities this “age wave” will produce… 79 million baby boomers enter retirement: What it could mean for the market.
As you might imagine the old advice to “just leave it invested in the market” is starting to fall on deaf ears. As Baby Boomers retire, they will have to begin either taking income from mutual fund shares converted from equity to income funds or they will have to liquidate shares.
When shares are liquidated en masse through transfers to bond funds or sold outright … what do you think that will do to the market? Unless there is a vast number of new “buyers” the trend will be for the price of shares to go down.
I expect more people to go into business or reenter the job market to make up for these losses.
Is there a franchise you could start to specifically employee retirees to give you and them income? Hmmm…
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