Because there has been growing speculation that as Baby Boomers begin to retire and cash in their investments, and the sell off could seriously upset the markets, the Government Accountability Office conducted a study to see if that could be true, The Wall Street Journal reports.
Because the GAO found that 52% of Baby Boomers' assets is held by the wealthiest 5%, the government agency concluded that they were unlikely to sell a majority of those assets, and, therefore, will not disrupt the markets. "The bottom line is that a market meltdown is unlikely," said Barbara Bovberg, director for education, work force and income security. "Assets are fairly concentrated among the very high earners."
The problem, however, she added, is that the rest of the Baby Boomers will be seriously underfunded during their retirement.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.