Emergency Funds, Retirement

Rootless Retirement Assets Creating Economic Imbalance

Retirement plans, in many ways, are just like any other investment – people use their extra money to purchase assets now, so that they can resell those assets for cash and a bit of profit later in life. But if structural changes in the economy make it impossible for younger people (those still hard at work) to buy assets from pensioners, the result will be a massive loss of wealth as prices recalibrate to account for the discrepancy in supply and demand.

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