401(k) + Mandatory Withdraw age 70 1/2 + Baby Boomers = BADSubmitted by gcopenhaver on Thu, 01/24/2008 - 14:50
I've commented on this a couple times in recent weeks, when 401(k)'s or stock market problems were brought up. It appeared to be ignored, so I figured I will start a thread to increase the number of eyes seeing this, and spur some potential research.
The baby boomers (born between 1946 and 1964) are beginning to retire.
The oldest of them are now 62 years old.
The youngest are now 44 years old.
In Section 401(a)(9)(C)(i)(I) requires that a person must begin withdrawing from their 401(k) (or other applicable plan...I'm just focusing on 401(k) right now) by April 1st of the calendar year in which the employee attains age 70 1/2, or
(II) the calendar year in which the employee retires.
The rules are strict, and have few exceptions, and have severe tax penalties if not followed correctly.
Now with baby boomers beginning to reach the age of 70 1/2 in the year 2016, we will likely begin to see major problems by that time.
"It is estimated that there will be 2,282,887 people turning seventy years of age in America in 2016. In 2017,the number of people turning seventy years of age jumps to 2,928,818. . . That is a jump of nearly 700,000 more people turning seventy than in the year before and the number increases from there on. In one year there is a jump of nearly 30 percent." - Prophecy by Robert Kiyosaki (page 74)
There will be a massive increase of selling in the stock market over the next decade or so.
The stock market's been having trouble (due to government invention of course) with the baby boomers purchasing stocks and investing in their 401(k)'s and other stock market related investments!!!
Imagine what is going to happen to the stock markets when they are forced to sell their 401(k)'s at age 70 1/2, since they are required to by law!!!
There will be a huge increase of sellers in the stock market! There will be no such increase in buyers at that time. The prices will plummet.
Once people realize what is going on, there will be panic. Everyone, especially the younger baby boomers, will be trying to save what's left of their retirement since they're already at that age and there will not be time to rebuild their retirement savings and investments. They will have to sell as soon as they can to save what little they will have left once they realize the crash can't really be stopped. They will be limited by the fact that they don't have time to start over again.
This will be horrible for the baby boomers, and leave a huge economic/financial mess for the rest of us for many years afterwards.
I have yet to see Ron Paul talk about this issue...maybe he's not aware of it, or maybe because there's so many other huge issues going on right now that it's hard to talk about a specific thing like this coming in the future.
I was hoping to find some videos about this on youtube, but I could not.
I hope this has been informing, and that you will continue research this, and if anyone has any more information, please share it with us here.
And please plan your investments accordingly!