This year the oldest baby boomer will turn 61, just around the corner from collecting social security and questioning how far investments and exchange traded funds (ETFs) will take them. Pat Regnier of CNN Money.com remarks yuppies and hippies alike have lives that coincided with one of the greatest investment booms in history. Over the past 30 years, large-company stocks returned 12.5% a year compounded to theoretically turn every $1,000 into $34,000. Back to reality- most people eat up returns trying to outsmart the market, aside from taxes and living expenses. That said, America’s markets and economy have done a lot in 30 years and it is highly likely many of the baby boomers are going to see another 3 decades to make their money last.
Social Security is going to be challenged and so will the stock market. Many people over age 65 will sell their assets in order to finance their retirement, however, there will be few young Americans to buy them. ETFs that offer a focus overseas may be an opportunity to capitalize on rapidly growing economies. Commodities futures are also showing long-term gains and are more readily available for individual investors. These are just some examples of how ETFs can provide individual investors more options, even if you are in retirement.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.