Reitrees Not Spending Down Their Assets?
Apparently retirees - a significant percentage - are not spending down their assets in their post-work years. One study says 26% only spend their RMDs (Required Minimum Distributions) from their IRAs - the money they put away, mostly pre-tax, during their working years, much in 401ks. While we're not sure this is as big a deal as some think, we'll concede this: It flies in the face of the theory that Boomer retirees will be big spending catalysts for economic growth. The lack of spending makes it a big deal - at least to the big spending Boomers contingent - given the picture painted of a bunch of Boomers enjoying their money in their retirement - and thus goosing the economy to ever greater heights. It reminds us of the great trillion dollar transfer of assets from the dying generation to the next. This theory has been fostered for years. It posits that there's a generation of folks with trillions in savings and investments (including their homes) that will be left to the...