Hi Arthur,
Thanks for you answer, I liked it a lot. What I would like to comment on
briefly is the following quote:
Consider a decade or so from now as people begin to
convert mutual funds to cash for their 'golden years.' All of a sudden
markets are no longer rising but are falling. Seeing this boomers rush to
convert their mutual funds so they too can enjoy their 'golden years.'
Busts are made of this.
My brother and his wife have fallen prey to the dreaded "Financial Planner"
who has taken the money from the sale of a house and $350 per month and has
promised the "golden retirement". We argued, with my position being, "What
happens when all those boomers start taking their retirement funds out of
the marketplace?" His answer, "These guys are experts, they must know what
they are doing."
It is through such arguments that I am defeated. My guess is that this is
probably the answer in one form or the other that most of "boomers" who
have enjoyed good careers would answer or some other stock phrase the
eliminates thinking. Before the comfortable majority change their mind,
they are going to have to experience a crisis and your right, just pick
your favorite, oil price increases, food shortages, weather pattern
changes, converting mutual funds and other holdings into cash, the computer
glitch of the year 2000.
Respectfully
Thomas Lunde
