The two big points made were;
- The retirement of 76 million baby boomers is the most important demographic trend of our lifetime; a seismic shift
- Dividend-paying stocks will outperform growth stocks for the rest of your investing life
However I would think trends that effect 800 million to 1 billion people might be much, much more important; here I am talking about China and India. If you add up the populations of some of the N-11 you get another half a billion people that will gravitate to the same types of trends but maybe on a slightly different time table. In the spirit of Nigel Tufnel; 2.5 billion is more than 76 million.
This is not to say that investing around boomer trends won't be the right thing to do and won't be successful but don't lose sight of other big trends going on in the world.
As to the second point about dividend stocks outperforming growth; hasn't that always been the case over long periods of time? Value (implying stocks that pay dividends) beats growth more often than not. The point made in the article is that boomers will seek out dividends to contribute their income stream which makes sense and I am a believer in dividends to be sure but I would file Mr. Band's comments along these lines under this is how the market usually works.
There is one thing that I think is important to add here; the retirement of the boomers followed by their entitlement payments stands to be a colossal problem. There is too much spin and data mining for me to know when social security will really start to crap out but we have a big problem there. Then don't we have a bigger problem with Medicare at some point for these folks?
These things should be very troubling for all of and offer several very scary outcomes. For now though this is all far enough down the road that the US capital markets can go through at least a couple of complete cycles before this starts to cause visible damage. I'll cover this in depth during the 2020 presidential election season (humor attempt).
For people younger than 50, which includes me, I would suggest saving as much as possible, live below your means, open an HSA account but don't tap it to pay medical bills, make your car last for at least ten years and see to it that your portfolio is globally oriented.
The point is not to scare anyone or be a fear monger. This is something that could hurt us in the future. If this does not pan out negatively well, no problem but we need to learn and study what can go wrong not what can go right.