Capital Flow Watch » Small Investors

Thriving without a credit card - Social change:

John Schroy — Fri, 25 Jun 2010 15:06:22 +0000

Restricted availability of consumer credit and a greater propensity of households to save before spending, may result in less use of credit cards and smaller mortgages. A return, even partial, to saving habits of the 1950s could stimulate economic recovery.The popular Dave Ramsey radio and TV shows suggest that a societal change in this direction is at least possible. Lower levels of personal debt would boost the economy and make people happier.

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Baby Boomers’ retirement prospects - US stock market

John Schroy — Thu, 12 Oct 2006 21:52:08 +0000

A study by Daniel R. Ackerman, CPA, suggests that Baby Boomers who count on the long-term equity returns of 8% may be disappointed, either because returns are simply not justified, or because, if they are, the supply of equities from Boomers trying to exit the market during retirement will be so great as to depress stock prices.Reliance on income-based investment, rather than capital gains, may be a more prudent strategy.

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Mutual fund sales fall to 3-year low - US Equities 2005

John Schroy — Tue, 14 Mar 2006 11:44:00 +0000

Net sales of mutual fund shares dropped to the lowest point in the three years 2003-2005, with net sales of $257.5 billion. Net sales of mutual funds fell almost 14% from 2004 to 2005.Weak fund sales in combination with historical over-valuation of stocks and the impending retirement of baby boomers, are a portent of weakness in the US equity market.

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Most US households do not have IRAs - Investor demographics

John Schroy — Wed, 01 Mar 2006 05:06:30 +0000

Despite tax benefits and a generation of strenuous marketing efforts, over half of US households do not have Individual Retirement Accounts (IRAs).In fact, 29% of US households have neither IRAs or employer-sponsored retirement plans. IRAs owners are typically middle-aged, married, college educated, and employed — and with much higher incomes than people that don't have IRA savings.Americans between 50 and 64 years without formal retirement savings have median total financial assets of only $2,500.

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US households have trillions in IRAs - Retirement saving 2004

John Schroy — Wed, 22 Feb 2006 17:21:43 +0000

American households, as of December 2004, had accumulated $3,475.1 billion in tax-deferred Individual Retirement Accounts (IRAs), according to the Federal Reserve Flow of Funds Accounts.The largest portion of these savings were held as "self-directed accounts", in which a wide diversity of investment is permissible.Over the four years, 1999 to 2002, investors added $837.2 billion to their IRAs, which, added to the $118 billion in decline in value over the period, means that the market crash cost IRA savers about $955 billion.

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