GENERATIONAL WEALTH: Separating Myths for Millenials

“The Millennial” generation refers to the roughly 83 million Americans born from 1980 through 2000.


To lend perspective, the baby boomer generation was roughly 67 million strong, born over a similar time period – 1946 to 1965. So, many today are talking about the 83 million Americans who are from 14 to 34 years old in some of the same ways they have about their parents, the 67 million Americans between 50 and 69 years old.


Why do I bring this up?


Two reasons:


First, I don’t read this stuff or bring up these facts because I think they have something to do with how you ought to invest differently in the short term. These demographic shifts make for interesting observations, but they give us nothing in the way of making market predictions.


About the only thing we can correctly predict about two million 65 year olds, for example, is how many of them will turn 66. We can’t know when they’ll sell their home, quit their jobs, or start withdrawing their investments. The market only shifts on these trends in what appear to be totally random patterns.


Second, and more importantly, there are those who will try to make such predictions anyway and put themselves out there as gurus. Worse, based on their speculations and “guesses” about the future of these two interesting-to-talk-about groups, they will try to sell you various investment products, from highly speculative stock compilations to the very low-risk (and low pay off) guarantees of fixed annuities – and everything in between. Just because they have charts and graphs showing you hold old you are and how old your kids are, doesn’t make them gurus of anything. The information, although interesting, has nothing to do with HOW to invest.

Never has.

Learn more . . .


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Liberate the Wine! and other WEB GEMS

Liberty, eh? (6:00) . . . The Libertarian movement is alive and well in our neighbor to the north. As they say in Quebec, Liberte!

Anything but safe . . . How Venezuela and Argentina have proven that the middle of the road is no road to prosperity.

Just Say NO! (4:14). . . to stock picking. Zac Shepard of Matson Money discusses two investments to avoid and the importance of diversifying.

The cost of care . . . In this month’s issue of Imprimis, University of Chicago economist Casey Mulligan explores some of the unintended consequences of the Affordable Care Act.

This is not the 1920s (4:00) . . . but you may still be living under prohibition-era laws. And one group of cronies wants to keep it that way.


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Roths, Bitcoin, Leaving the Tip: WEB GEMS

Roth IRA “back door” . . . A new ruling by the IRS may allow a way of getting around IRA contribution limits.

The Bitcoin Embassy (2:36) . . . This Canadian attraction has everything for the bitcoin enthusiast. Even T-shirts.

The midterms (1:51). . . Nick Gillespie breaks down the best and worst of last week’s balloting.

The economics of tipping . . . Information asymmetry, incentive alignment, risk sharing — you’ll never look at tipping the same way again.

Why so glum? . . . Jeff Deist of The Mises Institute gives his reasons for optimism.

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Ebola, X-box, and B.O: WEB GEMS

Distorted money . . . Rothbard on the flaws behind the government-regulated, “stable-money” system.

The X-box made me do it (3:43) . . . Econ Prof. Michael Ward explodes the assumption that video-games = violence.

Asset forfeiture programs? . . . If you’ve never heard of them, don’t be surprised. Local governments have every reason to keep mum on this dirty little secret.

Ebola, ISIS, legal weed (3:50) . . . Afraid? Neither are the kids from Nickelodeon. But what if I say, “2014 Midterm election campaign ads”? Now that’s scary.

Nanny of the month (1:40) . . . The October winner is Burien, Washington, who has made it illegal to smell bad.

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Zombies, Ebola, and Taylor Swift: WEB GEMS

We’re Zombies (2:25) . . . Economist Daniel D’Amico points out some frightening similiarities between zombies and those deprived of the right to freely associate (warning: brief violence, but it’s ok, they’re just zombies.) 

Climate debate over: We’re doomed . . . Whew! Now we can go on with our lives. Regardless of the quality of the science behind them, claims of “irreversible” damage are the best arguments for doing nothing.

3 reasons NOT to fight ebola with the military (2:00) . . . ReasonTV’s Nick Gillespie breaks it down.

The power of words . . . The FEDS don’t like stock market volatility, and though they’ve always been active in manipulating it, it’s all but out in the open now.

Obama’s Taylor Swift Strategy (2:20). . . We’re just gonna shake, shake, shake it off. (Yes, a Remy remix.)


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