There’s Just No Beating Father Time
The Aging of the Population is unfolding at a blistering pace and along the way creating powerful thematic investing tailwinds across several sectors . . . with health care likely to be the least significant.
10,000 Baby Boomers are turning 65 every day — this promises to be the most transformative investment opportunity since the explosion of the internet and the start of the Connected Society.
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As we look around us, it’s rather obvious to notice that we as a people are living longer, which in many respects is a good thing. As we age, however, there are different needs and demands that arise. According to a National Center for Health Statistics report released in 2016 the average life expectancy in the US stands at 78.8 years on average, with women outlasting men by a few years 81.2 years of age vs. 76.6 years. By 2030, the Administration on Aging (AOA) estimates there will be about 72.1 million people aged 65 or older, more than twice their number in 2000. In 2010, the baby boom generation was between 46 and 64 years old, and that generation is now beginning to enter their 70s.
Over the next 13 years, all of the baby boomers will have moved into the senior generation, resulting in a major structural shift in demographics. From 2010 to 2030, the percent of the population over 65 will increase from 13 percent to 19 percent while the percent of the U.S. population aged 20-64, the primary working years, will decrease from 60 percent to 55 percent. That upside down pyramid is poised to result in a number of changes from healthcare, housing and transportation to questions over the viability of social service programs like Medicare, Medicaid and Social Security.
But those issues are just the beginning . . .
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At each life-stage of life, the 76.4 million Baby Boomers have transformed not only the economy, but American culture, and in-turn the world itself. Here are just a few of the changes this generation brought about that impact our world today (for better or worse) . . .
Population explosion brought about need for affordable housing, and thus the explosion of small towns on outskirts of cities
Gerber baby food took off when there were 4 baby-boomer children in a household
Baby Boomers spend about $2.3 trillion a year and what they have spent it has consistently changed industries
Fast food restaurants, movie theaters, nightly TV events came about when baby-boomers were teenagers
Not just Sex, Drugs and Rock and Roll, but also Toyota's when they were student activists, Nike's when they were yuppies, and Starbucks when they reached middle age.
Divorce, debt, race relations - this generation has changed what is and what isn't socially acceptable
– The Aging of the Population Model Portfolio –
Tapping into the Thematic Tailwinds of
The Retiring Baby Boomers
Money that was once dedicated to support a young and growing family is increasingly shifting toward spending that serves an aging population. Pronounced spending shifts such as these can have a dramatic impact and in this case the snowballing of the “older population” likely means an even greater compounding effect will be had.
But it’s not just healthcare. There are many, many different industries that will be impacted — some that will be “riding the thematic tailwinds” as we like to say, while others will be hit like a bird flying into a plate glass window.
In the Aging of the Population Model Portfolio we give you our top 35 investments to add to your portfolio in order to tap into this demographic sea change taking place. But it’s not just a list of stocks. Anyone can do that. that you receive, we also break it all down for you, including:
In the Aging of the Population Model Portfolio we break it all down for you, including:
- A Deep Dive into the Subject: The impact and pain points that will be emerging and a greater and greater percentage of our population moves into its retirement years — many with significant savings and assets to start spending, but even more without enough money to support themselves in retirement.
- Thematic Tailwinds and Headwinds: The sectors and industries that will be riding the thematic tailwinds of this demographic shift and those that will be facing significant headwinds as the spending and focus shifts elsewhere or customers start dying off (sorry, couldn’t think of a better way to phrase it.
- Portfolio Strategy: A weighting strategy for each of the 35 recommended investment, plus a model spreadsheet you can use to setup your own allocation across the portfolio, no matter what your investment level is.
- Investment Direction: Instructions on how and where you can execute a large number of traded quickly and economically and manage the Aging of the Portfolio.
- On-Going Insights: Plus, sign-up for our quarterly maintenance plan and receive regular updates on the changing thematic winds of this theme as well as specific rebalancing instructions as the market changes.