Today I'm going to give you information that can make you rich. If you take my insights and use them to make smart financial decisions you might end up on "easy street".
After World War II, our returning soldiers were anxious to get on with their life. They wanted to go to school and they appreciated the meaning of family. It was 1946. Suddenly there were lots of babies being born. For the next 20 years there was a lot of romance going on and our school systems were bursting at the seams. If you were born between 1946 and 1964, you are a "baby boomer".
Guess what? If you were born in 1946, the first year of boomers, you are turning 63 this year and are entitled to apply for Social Security. In two more years, 2011 the first boomers will turn 65 and move onto the Medicare rolls. It is estimated that over the next 20 years, 3-4 million "boomers" will move onto the government entitlement programs. God bless all the workers paying for the retirement benefits.
Here is where you get rich. If you invest your hard earned extra cash in companies aimed at serving the boomer generation, you might make a lot of money. The great unknown is the Federal Government and the laws they might pass to provide new health plans.
Experts have concluded that the average age for getting knee and hip replacements is 67. The leading edge companies are making better and better high tech "parts". One of the better know manufacturers is Zimmer Holdings. It looks like it is well positioned for the long term.
If you think longer term, the first boomers that are now 63 will be 83 in 20 years. That will load up assisted care and healthcare facilities. Companies that concentrate that providing "final homes" for the boomers should make a lot of money. Of course that is 20 years out and the Obama administration could do a lot to screw up the rules.
So there you have it. Invest your hard earned money in companies that have products that service the "baby boomers". If you guess right, you might retire to a Carribean island and sip champagne all day long. Don't say I never did anything for you.
Technically Grasshoppers No.1, No.2 and No.3 are at the tail end of the "boom generation".
The lesson Grasshoppers is that financial reward is all about risk. The marketing information I have presented is factual. If the current congress passes a stupid healthcare bill that denies payment for critical procedures, all bets are off. That is the risky part. Denial of procedures by the government is also what has been termed "throwing Grandma under the bus".
Pretty snow this morning. For the first time it is sticking to the road.
Love,
Dad