401K Forced Liquidation


What you need to know

The law regarding 401K requires distributions. This is going to be a anchor on asset prices as baby boomers are forced to liquidate holdings. When people all head for the exits at the same time prices often crater, add leverage to the mix (See the NYSE Margin Charts) and the move is amplified.

Around 4.5 Trillion Dollars are in the 401K Accounts that will be liquidated over the retirement period of the retiree

401k RMDfaqs_401k_basic

450px-Annual_Return_-_Fee_Impact   total_401k_assets_chart

 

Rich Dad / Poor Dad author Robert Kiyosaki describes the coming liquidation of the 401K