Baby Boomers and Their Mass Retirement: What Will It Mean for the Economy?
Given the number of Baby Boomers—the largest-ever generation outside of Millennials—it’s easy to wonder about the impact of their retirement on the economy and specific industries. The first Baby Boomers reached the standard retirement age of 65 in 2011. In total, there are about 76 million Boomers in the U.S., or 29 percent of the population.
This year, Boomers will be range from 55-73 years of age, which is when people historically retire in appreciable numbers. In fact, it’s estimated that 10,000 men and women of this generation will be retiring every day. So what are the expected outcomes?
Business transitions. Many small and middle-market businesses are still owned and/or controlled by Baby Boomers. This generation created immense wealth and ultimately needs to pass it down to future generations or determine alternative exit strategies. These plans should be considered in advance in order to preserve currently illiquid wealth and the many jobs associated with these companies. There are many late stage Generation X’ers and Millennials willing to take over the reins given proper time to transition these businesses. Capital is also abundant for sound deals that generate sufficient returns and are appropriately structured.
Job creation. As a result of the generation’s sheer size, the aging Baby Boomer population is increasing the demand for qualified health care professionals, including nurses. In Maryland, the number of personal care aides has grown 330% during the past 10 years and this occupation is the fastest-growing nationally, growing by 251% over this same period. The rising demand for nurses not only provides increased opportunities for professionals within hospitals but also supports business ventures and jobs in private home care, long-term care facilities, and outpatient clinics.
Growth of the gig economy. The gig economy is a growing aspect of the job market that offers flexible, short-term employment opportunities. Companies providing gig platforms tend to be service-oriented and connect workers with clients for a fee. Jobs can be as quick as delivering food or becoming an Uber or Lyft driver as well as longer-term business projects. The benefits for Boomers in the gig economy are intangible, such as increased social interaction, an income that helps delay drawing Social Security, and more flexibility in days and times worked.
Market impact. The good news is that the retirement of the Boomer generation won’t affect markets. The wide range in ages for Baby Boomers means that they won’t be retiring in a mass exodus. In fact, according to the AARP, seven in 10 Boomers expect to work past age 65, are already working past age 65, or don’t plan to retire anytime soon. Another factor is that lifespans are tending to be longer with each subsequent generation. Today, Boomers have an estimated 20- or 30-year long retirement, and to support that longer investment time horizon, they will need to have some growth in their portfolios, meaning that they’re unlikely to dump all their stocks.
Taking into consideration these factors, it seems as though the retirement of Baby Boomers will spur business transitions, new jobs, create a niche economy, and bolster the market, turning something to be concerned about into a win-win all around.
Rosen, Sapperstein & Friedlander Promotes Several Team Members, Welcomes Thomas Stranger to the Firm
Rosen, Sapperstein & Friedlander, LLC (RS&F), is pleased to announce the internal promotions of Jeffrey Rosen to co-managing partner, David Rosen to tax chair, Mike Brewer and Matt Rothstein to directors, and Susie Warsal and Michael Brennan to co-department heads of the tax department. Additionally, RS&F welcomes Thomas Stranger as a partner in the firm.
In his new role as co-managing partner, Jeffrey S. Rosen, CPA, CGMA, MBA, will focus on firm strategy, team development, and client engagement. He will also work closely with RS&F’s partner group to expand the firm’s service offerings on behalf of current and future clients. Rosen earned his Bachelor of Science from the University of Maryland, College Park and his Master of Business Administration from the University’s Robert H. Smith School of Business.
As partner, Thomas Stranger will oversee the firm’s accounting and auditing department including team oversight, process efficiency, client management, and business development. Stranger joins RS&F after a 12-year period at Cohen & Company. He earned his Bachelor of Arts in Economics from the University of Maryland Baltimore County and Master of Science in Business from the University of Baltimore.
David S. Rosen, Esq., CPA, has taken on the role as tax chair. Rosen will be responsible for expanding the firm’s strategic tax advisory services on behalf of ultra-high net worth and sophisticated corporate clients. Rosen earned his undergraduate degree from the University of Maryland, College Park and his law degree from Emory University School of Law.
As directors, Mike Brewer and Matt Rothstein will focus on the firm’s growing opportunities in cyber security and international, respectively. Brewer earned a Bachelor of Science in Business Administration and Accounting from Louisiana State University. Rothstein graduated with a Master of Science in Taxation from the University of Baltimore.
Susie Warsal and Michael Brennan are the new tax co-department heads. In this position, they will oversee the team and processes in the firm’s rapidly growing tax department. Warsal received her degree from the University of Maryland Baltimore County. Brennan graduated from Loyola University of Maryland where he received a Bachelor of Business Administration and a Master of Business Administration.
“We’re pleased to hire and promote so many highly motivated and experienced professionals,” said Howard J. Rosen, CPA, CGMA, co-managing partner of Rosen, Sapperstein & Friedlander, LLC. “Our culture of growth and success continues to serve our clients well. These team members have all shown dedication and passion for their work, and I am confident that they will continue to show this same diligence in their new roles.”
RS&F in the News
Matt Rothstein recently joined Jeff Salkin on MPT’s Your Money and Business to discuss retirement planning following the most recent tax changes. Check out the video below:
Summer Reading List
The Book on Qualified Opportunity Zones, by David Rosen, ESQ., CPA
The Book on Qualified Opportunity Zones, is a comprehensive source on the opportunity zone program issued to date. The development of the Book on Qualified Opportunity Zones arose following dozens of real-life transactions (many of which have culminated in the creation of qualified opportunity funds that are currently developing real estate and business projects under the program). Over the past year, we have prepared detailed transaction memos, researched every component of the statute and regulations and developed practical tools for stakeholders. Ultimately, we felt that combining our work into a comprehensive “book” will benefit our team, our clients, and other participants in the new industry focusing on the opportunity zone program.
Recommended by the team at RS&F and David Rosen.
The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers, by Ben Horowitz
Ben Horowitz, cofounder of Andreessen Horowitz and one of Silicon Valley's most respected and experienced entrepreneurs, offers essential advice on building and running a startup—practical wisdom for managing the toughest problems business school doesn’t cover, based on his popular Ben’s Blog.
Start with Why: How Great Leaders Inspire Everyone to Take Action, by Simon Sinek
In 2009 Simon Sinek started a movement to help people become more inspired at work and, in turn, inspire their colleagues and customers. Since then, millions have been touched by the power of his ideas, including more than 28 million who've watched his TED Talk based on Start with Why - the third most popular TED video of all time.
The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change, By Stephen R. Covey
Stephen R. Covey's book, The 7 Habits of Highly Effective People, has been a top seller for the simple reason that it ignores trends and pop psychology for proven principles of fairness, integrity, honesty, and human dignity. Celebrating its 15th year of helping people solve personal and professional problems, this special anniversary edition includes a new foreword and afterword written by Covey that explore whether the 7 Habits are still relevant and answer some of the most common questions he has received over the past 15 years.
The Personal MBA: Master the Art of Business, By Josh Kaufman
The Personal MBA distills the most valuable business lessons into simple, memorable mental models that can be applied to real-world challenges.
True leaders aren't made by business schools - they make themselves, seeking out the knowledge, skills, and experience they need to succeed. Read this book and you will learn the principles it takes most business professionals a lifetime of trial and error to master.
Thinking, Fast and Slow, By Daniel Kahneman
The guru to the gurus at last shares his knowledge with the rest of us. Nobel laureate Daniel Kahneman's seminal studies in behavioral psychology, behavioral economics, and happiness studies have influenced numerous other authors, including Steven Pinker and Malcolm Gladwell. In Thinking, Fast and Slow, Kahneman, at last, offers his own, first book for the general public. It is a lucid and enlightening summary of his life's work. It will change the way you think about thinking.
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