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Originally Posted by Sr. Mints
With this massive wealth transfer happening--a trillion in Canada so I'm just going to assume far, far more in the U.S. and other countries with similar demographics--what happens if a big chunk of that capital gets pulled out of the market?
If boomers are cashing out and their heirs use the dough to pay down debt, buy stuff, etc., instead of reinvesting, how could that shape the markets over the next 10, 20, or 30 years? That’s a lot of money moving around - not exactly a drop in the bucket.
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I don't see it having a great effect on the market. For the most part, it will help reduce personal debt, put a roof over the youngest family members' heads, and provide enough funds to ensure the older members of the family won't run out of money before they die.
As for the very rich or those who are well off and trying to protect what they have, perhaps our Government should think creatively by floating a bond that rises with inflation and provides a modest return on investment, for the primary purpose of raising our share of military costs.