Future Projections Not That Rosy

For a Baby Boomer like myself, the financial news isn't promising.

As I transition from working my backside off for decades I want to be able to rest assured that I'm going to be able to enjoy my sunset years. 

 

Yes, I've invested. Yes, I have a pension. But certain indicators project a not-so-rosy outlook down the financial road, it makes me highly concerned that not all of what I expect from my "nest egg" may not be there when I need it. Being what Rush Limbaugh calls a citizen of "Realville", I remember all too well how both my wife and I lost one-third of our investments in the 2007/08 recession after the housing market collapsed.

I know - some of you are saying "What rock have you been living under, buddy?" You're probably saying this because of the phenomenal rise in stock market volume and earnings. Yes, I admit this has been great for the economy, but that is only a temporary thing; it never lasts forever! And, yes, Trump's reduction of federal regulations which has handcuffed businesses in the past has played a role in this as well.

But as the saying goes, "What goes up, must come down." Here's why I say that: demographic projections. People are the engine of the economy and we can't ignore this fact.

What am I getting at? Well, here's an example: one financial analyst’s predictions over many decades which argue that he's got something to his thesis. Who is this person? You may have heard of him because of the books he's written on that thesis; Harry Dent. (‘Ive provided this general link to allow my reader to make the decision as to whether, or not, his take on demographics has merit.) Personally, I don't understand why anyone would discount his work because it seems to be grounded on sound factual theory and precedence.

One point I find interesting in this outlook is the real estate market. (I must note here that this factor is applied to the nation as a whole. There are regions where it will not apply.) Right now "Baby Boomers" who own houses are beginning to sell them at a rate that may soon outpace the younger generations who want to buy them. If there are fewer younger people who are buying houses for sale by a larger age group, then naturally the housing market will suffer a depression to some degree. Just how bad that will be is more difficult to predict.

I'm not trying to be the proverbial "Debbie Downer", but given the current pension debt condition of many states today - I'll let the reader do their own research on this topic – I conclude that things are not looking as rosy as our media sources want us to believe. I'm always reminded of something I learned years ago; those in authority don't always want the public to know just how bad things really are, in order to avoid pubic panicking and creating an out of control situation, in hopes that their policies will somehow work them out of that fiscal hole in which they've found themselves.

What's the average Joe to do?