As stock prices continue to drop, particularly the S&P 500 index, baby boomers are becoming increasingly concerned about their retirement plans. With nearly $20 trillion in stock investments, older Americans may need to postpone retirement or reduce spending if losses persist. Experts warn about "sequence of return risk" where retirees drawing from dwindling portfolios could miss recovery opportunities, forcing many back into the workforce or to drastically adjust their lifestyles.
If their portfolios keep declining while they're withdrawing money to cover living expenses, they won't recover fully even if the market rebounds - a danger known as "sequence of return risk."
many will be forced to re-enter the labor market - packing bags at their local Walmart,
those who refuse to sell stocks could find themselves cutting back their retirement lifestyle spending like it's nobody's business - wave bye-bye to cruise lines, tablets/e-readers, and cosmetic surgeries.
Most boomers are in their 60s and 70s, getting ready to exit the workforce or already in early retirement. They own stocks worth nearly $20 trillion.
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