Aging Us Population Graph
"Baby Boomers" – The Future of Securities Market
You have no doubt heard of the "Baby Boomers, those born between 1943 and 1963. After the Second World War, Australia's population grew to unprecedented levels. Australia was not alone in this phenomenon. The United States, New Zealand and Canada experienced baby booms all at the same time.
The Baby Boomers are an important phenomenon to understand. They have had dramatic effects on society and substantially impact the way the stock market performs over the next 20 years. For this reason it is important to understand some of the background on this interesting group of people.
As mentioned, the baby boomers lived in several countries around the world. Part of the reason for the "Boom" was that these countries were immigrant receivers and immigrants tend to be in the 20, the principal childbearing age. At its peak in 1957, the U.S. boom hit 3.7 children per family. Canada peaked in 1959 with Canadian women averaging 4 children each, which was more than 479,000 new births that year alone! Australia's boom was not as big as the U.S. or poles Canada, however, we still have a disproportionate number of people now in their 40's and 50's. After the baby boom, who had a baby bust. fewer children were born during the sixties, leaving Australia with a graph asymmetric population.
The Baby Bust group, born between 1964 and 1976 are a much smaller group than their predecessors and are known as Generation X.
The baby boomers are a very significant and important. Not that, individually, are different than any other group before them, it's just that there are many them. Due to their large number, "Baby Boomers" have a significant impact on our society, making substantial changes as they grow. They have changed the economy, housing and other market driven and transform social attitudes and lifestyles.
In Australia and now in North America fastest growing sectors other than technology, are financial management, health and leisure activities. It's easy to see why. Boomers have been working all his adult life, usually from someone else. They have raised their children and are now focusing on their retirement. Have had a wonderful time. They do not have endured wars, or depression, such as their parents and grandparents. They have enjoyed fantastic luxuries like cars, world holidays and computers. They've been the forefront of the Age of Discovery.
Unfortunately, most are not financially prepared for retirement, believing instead that their parents, who would enjoy a comfortable pension from their employers and / or government. The harsh reality is coming to light. Everyone, especially the "boomers" must take responsibility for your financial future. Our government will simply not be able to provide adequate pension incomes for a growing number of retirees. Today, for every person leaving, there are four people working, providing income to the government. In 2025, there are only two people working for every retiree. Moreover, Boomer, as they begin to retire, live longer than any other group before them, and in their 70's and 80's, on average. As a result it is for each one of us as individuals to take responsibility for our own personal financial planning.
The Government of Australia has made improvements substantial preparations for the population growth. Have introduced a mandatory retirement system, all employers and employees must participate and gradually increase in required contributions, but too little, too late. The key to investment growth is time, a luxury that many baby boomers no longer possess.
Consider this fact in a return of 8% per annum, net of tax, a $ 30,000 investment required over 15 years to triple its value, even taking into account the effects of inflation. The most common investment strategies to promote public have return of 4% to 10%. We often see managed funds, pension schemes, bank term deposits and property investments that offer these results. Many people consider these returns adequate and well yet! Unfortunately, many members of the public will demand a much higher return on their investments to improve their situation properly Financial before retiring (if it ever can afford!).
Future issues will examine how to create a high performance and how to manage your own super car.
Biology 1B – Lecture 19: Natural Selection in the Laboratory