this post was submitted on 23 Apr 2025
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No Stupid Questions
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Boomers are trying to retire and their 401ks are pumping the market.
It would be a lot worse if people 1, did their own research into who they invest in. And 2 if one of the wealthiest demographics in American history wasn't all about to retire.
Even with the current market being what it is because of the sheer idiocy of the regime, boomers will keep pumping into managed 401ks or ETFs as long as the company is matching to maximise their returns for retirement.
Not really anything to do with boomers, if anything they’d be the ones selling because they are retired?
I mean I’m just a normal guy but yeah I max my 401k because of tax incentives.
When you retire you only sell stocks as you need it as the prevailing wisdom is that stocks always go up if given enough time (which is true if the dollar loses value too, see asset inflation). Also if you have enough assets you can borrow against them instead of using money. The short of it is that most these people aren't fully exiting the market even if they already retired.
With your 401k, even if its unmanaged, you will have an option to distribute funds into various ETFs and target funds and index funds. A lot of people don't bother doing much due diligence or even checking to see what companies are included in the funds and might only invest based on recommendations or historical performance. Its a very small minority of people that invest with some moral standard or with the long term in mind.
Many companies, mine included, limit what investments are available in your 401k. I think in general, it would be uncommon to be able to invest in any specific stocks for most company sponsored plans.
I am limited to a subset of available index funds, target date funds, that kind of thing. I don’t think there are any moral choices I could make, with the possible exception of putting all my money in an international index fund to divest from the US in general.