alevin
Well-known member
KNOW YOUR PLACE… DEMOGRAPHICALLY
Where you fit into the demographic scheme of things is very important to understand. Trailing edge baby boomers will experience economic happenings differently than leading edge baby boomers. Certain areas of price inflation, for example, may benefit the leading edge while harming those on the trailing edge.
Let’s look at trailing edge boomers for a moment: As they enter their peak earning years, like their predecessors, they generally look to upgrade to a larger, more luxurious home… but the leading edge boomers have already driven luxury home prices through the roof. Many of the leading edger’s bought low and sold high (taking their equity with them into retirement), while the trailing edger’s are forced to buy high and will not enjoy decades of ever increasing prices. See the difference? Inflation benefited the leading edge, but hurt the trailing edge. Same thing happens for investing in the stock market, same for luxury cars, boats, etc. Bringing up the rear sucks… demographically speaking!
The leading edge ECHO boomers [Read: kids of leading edge boomers] are also likely to do better with their investments than trailing edge echo boomers. This is a function of math! You are far better off experiencing LOSSES EARLY in your investment career than late! This is true for all compounding assets.
If you know your place, demographically, you can adjust your strategy to take advantage of what you know will happen…
And just to add a little levity...and provoke some thought (and strategic investment planning) about future cost-of-living adjustments...
http://economicedge.blogspot.com/2009/05/damning-demographics.html
Where you fit into the demographic scheme of things is very important to understand. Trailing edge baby boomers will experience economic happenings differently than leading edge baby boomers. Certain areas of price inflation, for example, may benefit the leading edge while harming those on the trailing edge.
Let’s look at trailing edge boomers for a moment: As they enter their peak earning years, like their predecessors, they generally look to upgrade to a larger, more luxurious home… but the leading edge boomers have already driven luxury home prices through the roof. Many of the leading edger’s bought low and sold high (taking their equity with them into retirement), while the trailing edger’s are forced to buy high and will not enjoy decades of ever increasing prices. See the difference? Inflation benefited the leading edge, but hurt the trailing edge. Same thing happens for investing in the stock market, same for luxury cars, boats, etc. Bringing up the rear sucks… demographically speaking!
The leading edge ECHO boomers [Read: kids of leading edge boomers] are also likely to do better with their investments than trailing edge echo boomers. This is a function of math! You are far better off experiencing LOSSES EARLY in your investment career than late! This is true for all compounding assets.
If you know your place, demographically, you can adjust your strategy to take advantage of what you know will happen…
And just to add a little levity...and provoke some thought (and strategic investment planning) about future cost-of-living adjustments...
http://economicedge.blogspot.com/2009/05/damning-demographics.html
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