Boomers, watch out for falling houses!

We’ve written before about the risk of wealth concentrated and locked-up in Baby Boomer’s homes. (My House is Too Big) For many Boomers, it is the primary form of savings for retirement. The problem? It’s paper wealth until you actually sell.

And there’s emerging evidence that there may not be enough follow-on demand from younger generations to sustain current prices in many markets. Marketwatch cites (see link to article below) the risk that there are only two-thirds as many GenX buyers to Boomer sellers. That GenX doesn’t have the savings to buy. And that GenX doesn’t want to live geographically where many Boomers will be selling. And to that, we add that younger buyers’ tastes and preferences have changed.

For many Boomers, especially trailing edge Boomers, that means falling home prices ahead especially for areas with high concentrations of aging Boomers, retirement havens, and suburban McMansions.

And now — how long before the market change? Boomers would be forced to sell and give up on their age-in-place strategy on average in their mid-80s. Since leading-edge Boomers are now in their early 70s, the risk increases ten to fifteen years out. This isn’t a tomorrow issue, but a long-term planning issue. As 60ish trailing edge Boomers, we’re still debating what it means for our downsizing timing and whether to rent or buy in retirement.

What do you think?

Marketwatch: Dec 7, 2019 “Planning to sell your house to fund your retirement? Think again“ https://www.marketwatch.com/…/78C18D5C-110C-11EA-8868-5D0BC…

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A Cup (or two) of Holiday Cheer

The Magic of Christmas and Magic of Silence.

“A 2013 study published in the journal Brain, Structure and Function used differed types of noise and silence and monitored the effect the sound and silence had on the brains of the mice. The silence was intended to be the control in the study but what they found was surprising. The scientists discovered that when the mice were exposed to two hours of silence per day they developed new cells in the hippocampus. The hippocampus is a region of the brain associated with memory, emotion and learning.” – Science Says Silence Is Much More Important To Our Brains Than We Think

The 2013 study concluded short periods of silence can act as a “good stresser” to activate new brain cell growth.

Spend a few minutes in silence with a #cupofholidaycheer!

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The Joy of Giving Lasts Longer Than the Joy of Getting.

“The happiness we feel after a particular event or activity diminishes each time we experience that event, a phenomenon known as hedonic adaptation. But giving to others may be the exception to this rule, according to research in Psychological Science. In two studies, psychology researchers Ed O’Brien (University of Chicago Booth School of Business) and Samantha Kassirer (Northwestern University Kellogg School of Management) found that participants’ happiness did not decline, or declined much slower, if they repeatedly bestowed gifts on others versus repeatedly receiving those same gifts themselves.” – The Association of Psychological Science

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Regrets and Muddy Shoes

“To have regret is to be disappointed with yourself and your choices. Those who are wise, see their life like stepping stones across a great river. Everyone misses a stone from time to time. No one can cross the river without getting wet. Success is measured by your arrival on the other side, not on how muddy your shoes are. Regrets are only felt by those who do not understand life’s purpose. They become so disillusioned that they stand still in the river and do not take the next leap.” 
― Colleen Houck

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Your Brain on Music

A TedTalk by neuroscientist and musician Alan Harvey. Mr. Harvey shows what music does to our brain waves, and explains how music is more than just entertainment.

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“Do a good turn to someone every day: that is, be a giver and not a taker. ” Juliette G. Low, founder of the Girl Scouts (1912).

“At the age of 51, on March 12, 1912, (Juliette Low) called a distant cousin and exclaimed, “I’ve got something for the girls of Savannah, and all of America, and all the world, and we’re going to start it tonight!” On that evening, she gathered those 18 founding members, including her niece and namesake Margaret “Daisy Doots” Gordon, to register the first troop of American Girl Guides. The name of the organization was changed to Girl Scouts of the USA the following year.

Life and times of the girl scout founders

Are you a giver or a taker?