what is not obvious, however, is the impact on the economy by those who have accumulated enough savings to earn the right to retire EARLY.

let me explain.

currently, the property market is experiencing two extremities( home prices at one end has exceeded ’96 peak and at the other extreme end, it has lagged considerably). today, many homes are still on the cheap (relative to rising income). because of projected optimism in the economy, incomes will continue to rise accordingly and thus, many of these cheaper homes will become even cheaper still. if prospective homeowners are wise with their purchases, they can easily service a loan in perhaps ten to fifteen years or so ( if they buy a modest home or have bought one before the market had risen). thereafter, they can manage their savings for early retirement.

for most of us, home mortgage is our greatest liability. to be able to service the loan early would mean a heavy financial load off our back. with no liabilities couple with prudent money management, a highly educated and well paid workforce can safely retire early.

in other words, this financial freedom will enable more to opt out of the rat race without encumbrances.one can then have more time for meaningful pursuits instead of being SLAVE TO ENTERPRISATION.

if this becomes a favored trend, their exodus will be severely felt in the business world. it may even become ONE of the greatest source of economic shakening in an economy which has become intricately RELIANT on talents!!!

in the game of unequal wealth and greed, the table may just be turned on the powerful rich corporations and institutions who will then be at the mercy (or pander to the whims of a powerful labor force) of the vast pool of financially LIBERATED talents!

one wonders now with the goverment interfering with the rising housing market – though its intend are well conceived – will they, unwittingly, create a dichotomize insolubility of those who can’t retire, because of economic liabilities, and for those who can retire early – freed from economic obligations?

an aging workforce will have its set of problems. the majority in this group who have to work into their greying years are probably semi skilled and below. if talent is essential for a thriving economy, their wealth may post a greater problem than the former in an aging workforce.

ps: i know of many young talented couples under 40 who can easily service a $600k to $700k under ten years with their regular pay and with no financial help. anything that’s about half a million dollar is a piece of cake for many!