/biz/ - Business & Finance

>>9570167
What you describe would result in a bear market, not a pop. There are boomers retiring every year

>>9570167
Yeah i figured the same thing out a few years ago. All the boomers got all their money in the stocks. So what happens when they got to pay their medical bills? Sell the stocks! What happens when they die and it goes to their broke kids? The kids going to sell the stocks and spend the money (Next generation always wastes). SO basically, all the stocks are going to fall, but..... The economy is going to boom at the same time! All the kids spending their parents and grandparents money + medical spending means a huge shift in wealth distribution is going to occur. Cause the boomers will pay top dollar for any medical care they can get, and the people working in the medical field will spend their money on cars, restaurants, etc... see what im saying? Stocks down, economy up. Its going to confuse the heck out of all the so called "Financial experts"

>>9570207
I mean it makes sense right?

Since the inception of index funds in the 1970's, economists have praised it because "it always recovers, always goes up in the long-run". "lol just buy VTSAX" has been the mantra of so-called financial advisors for decades now.

The companies within the S&P500 benefit as a result of people, again primarily boomers who were then entering the workforce and getting disposable income, continually investing in their companies for the past 40-50 odd years. What happens when the jig is up?

>>9570167
That's not how 401ks work, stupid. They don't "cash" out, because that creates a massive tax liability. They live off interest income and dividends from it, if they set them up correctly. My mom lived off my dad's for years, he had millions in his, and she made an easy 75k a year with extremely conservative investments, and never touched the principle.

And, 401ks are passed on to benificiaries when the person dies. Their kids will inherit them, tax free, and while they have to take a minimum out each year, it can keep growing, they just can't add to it with cash, but they can re-invest within the account.

But hey, keep thinking you know things, when you've done NO research and don't know shit about the subject.

>>9570167
you don't withdraw it all at once stupid

>>9570302
Sure you can, you'll just pay out of the ass in taxes.

But you're talking to a retard who doesn't understand how 401ks are actually used, and thinks he's figured something out. This is why I come here, to farm laughter at the fucking idiots.

>>9570275
>>9570339
doesn't it depend on what type of 401k though

>>9570167
the quantitative easing by the us gov is why the stocks have been going up. this results in rich getting richer, and poor people becoming poorer, while the middle class evaporates.

kill yourself commie

>>9570474
this

>>9570240
>What happens when the jig is up?
Biggest economic boom since post WWII along with a huge reallocation of wealth. And a crashing stock market. Soros, Rothchilds, all those old banksters are going to lose everything.

>>9570275
>kids will inherit them tax free
Outright false. If its lump sum, the kid pays normal tax. Otherwise its RMD tax each year over their expected life expectancy.
>kids will inherit them
Yeah and guess what those kids are going to do, who've been poor most of their lives? Have the biggest party ever, thats what. Crashing the stock market but boosting the economy.

>>9570167
>I mean, doesn't the same logic apply to crypto?

No, because stocks represent ownership claims on productive assets that actually generate stable, recurring, and growing cash flows. Crypto represents digital Chuck-E-Cheese tokens you swap back and forth with other autists hoping someone pays you a higher price than you did for it.

>>9570275
>>9570302
This

>>9570446
You COULD take it out of a Roth 401k tax free technically, but the whole point of investing it is to make your money work for you. Take it all out and it isn't doing shit for you. Idiot.

Every year a new boomer pulls out when retires. Every year, new millennials put in what their employer matches. It continues.

This is why your governments are trying their hardest to import as many people as they can. They think squatemalans are going to pump up the stock market. They have to believe that this will work, because the alternative is realizing that boomers are going to die starving in the streets, penniless.

>>9571024
This theory breaks down if there are more boomers exiting the workforce than there are millennials entering it.

If you’re worried about this just wait until automated cars are affordable.
>once x% of people are in auto cars
>insurance for meat bag cars goes up 10x or becomes unattainable altogether
>used car market literally disappears and people are underwater on their valueless cars and people who own will have been better off leasing

Kek