Comment: Thats a better strategy than none,

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Thats a better strategy than none,

but my point is that individual retirement savings spending can only get so large, and we're looking at a big demographic shift that will seriously depress stock prices.

With 80 million baby boomers retiring over the next 15 years, who is going to buy all that stock at current or greater prices?

Currently, we have 120 million workers saving a couple percent in 401(k)s, which might be enough to provide for 5-10 million people annually. That's not enough money going into stocks to let everyone cash out at present value. Every sell order needs to be matched up with a buyer, and if theres only $1 billion answering every $8 billion in sell orders, prices will have to drop by a factor of 8. It is the exact same imbalance that's affecting Social Security, the worker-to-retiree ratio.

Since the whole system depends on a few percent of savings, it is good to own something that is paid for with that other 95% of income.

I agree, ExxonMobil stock is easier to buy and sell, but getting what you paid for it might be a different proposition when you are competing with 80 million baby boomers for buy orders.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

Also author of Stick it to the Man!