Baby Boomers
By John Schroy, on June 6th, 2006 |

The ‘Baby Boomer Bomb’ refers to the expected effect of the retirement of the Baby Boomer generation on capital markets, particularly equities. In 2006, this issue was debated at the Milken Institute, and two solutions to the problem examined: Boomers being ’saved’ by productivity and technology; and, alternatively, by selling their financial assets to the next generation.
Corporate Governance
By John Schroy, on March 19th, 2006 |

In 2004, the US Congress passed the “American Jobs Creation Act” which allowed a US company to elect, for one taxable year, an 85% dividends-received deduction with respect to qualifying cash dividends from its foreign subsidiaries, when such dividends were in excess of a base period amount and were reinvested in the US pursuant to a ‘domestic reinvestment plan’.
Corporate executives took advantage of this tax break to fatten up their option pay, while cutting dividends to shareholders.
Investor demographics
By John Schroy, on March 1st, 2006 |

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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