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|Subject: Re: "Rich Dad's Prophesy"||Date: 3/27/2005 2:33 PM|
|Author: hjg0989||Number: 6864 of 6881|
<<<The cause? The first baby-boomers will hit 70.5 years old and, by law (ERISA), begin to withdraw from their 401k plans. the demographic "drain" from the stock-market will create a market with more sellers that buyers and trigger a panic and perhaps the largest crash in history.>>>
I am curious as to just how much money the average retiree has in 401k plans.
I work for the Federal Government. The people who are older than I am are under the old retirement system which is a large pension plan. These workers have had the option of putting a small percentage of their gross in the TSP (which is the Federal Government's 401k). IIRC, 12 years ago when I started with the Feds the old retirement plan allowed for 6% contribution without a match. It takes a long time to build much of a nest egg on a 6% contribution. Many of the older coworkers I have spoken to do not have much put away in the TSP.
Also, until very recently, the IRA annual limit was a mere $2,000.
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