Skip to main content
No. of Recommendations: 1
People have been saying the stock market would crash when boomers start to retire for years. They base that on the idea that people will suddenly sell their equities and put all their money in fixed incomes for safety.

But that is a far cry from the real world. Motley Fool routinely advises people to plan to be retired for 30 yrs or more. Inflation is the main concern. You need to be in equities, as much as you can tolerate, to hope to keep up with rising costs. Moving all to bonds would be disaster--especially while interest rates are so low. Most do increase their bond allocation, but 100% bonds is only for the very well fixed.

Sure the real estate market will have to adapt as boomers downsize. There will be new growth in retirement communities of various types. The need for new home construction could moderate, but I would be surprised to see housing prices fall as a result. Older homes will be torn down. Healthy new family formation will continue to buy up ones of appropriate size and price and yes they will continue to move up to nicer, larger homes when they have the equity.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.