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Baby Boomers: Controlling Wealth & Influencing the Economy

The Baby Boomers: 76 million people currently between the ages of 53 and 71 who are significantly impacting the U.S. economy. This group is not only increasing the demand for certain services and goods, but, because of their spending habits, they are boosting the economy in a way no other generation has the ability to do.

Statistics show that 35% of Baby Boomers have a household income of over $100,000. Furthermore, because of continued household incomes for Baby Boomers, they control 70% of the nation’s disposable income.1 This group of individuals over the past decades has been known to make informed financial decisions and to be active participants in their local and global communities. As such the money controlled by these individuals continues to flow back into the economy as the Baby Boomers invest and consume. During the first quarter of 2017, Americans 55 and older accounted for 41.6% of consumer spending, up from 33.5% in 2007.2 Research suggests that the over 50 age group will continue to dominate U.S. spending for the next five to 10 years.3

Baby Boomers are expected to make major contributions to the medical economy. With their demand for healthcare services is on the rise as they age, Baby Boomers are expected to increase annual spending on wellness-based services from approximately $200 million to $1 trillion.4 Projections suggest that the average healthy 65-year old couple will spend about $250,000 for premiums, cost-sharing provisions and out-of-pocket costs associated with Medicare parts A, B, and D during retirement. They will spend additional amounts for over-the-counter medications, dental services, and long-term care.5 In 1999, Medicare Part A spending totaled $107.8 billion. That amount is expected to rise to $259.8 billion in 2030 and to $287.5 billion in 2050.6

Currently controlling 70% of the nation’s disposable income, accounting for 41.6% of the nation’s consumer spending with a clear expectation that their spending will not only remain consistent but will increase over time, Baby Boomers are driving today’s economic trends. And if they’re not a strong enough force now, data reveals that an additional $8.4 trillion will be inherited by Baby Boomers by 2030.7

Want to learn more about our upcoming senior housing offerings? Click Here.

1. Baby Boomer Report 2015 published by U.S. News & World Report https://www.usnews.com/pubfiles/USNews_Market_Insights_Boomers2015.pdf
2. The economy is still all about -- who else? – Boomers published by USA Today https://www.usatoday.com/story/money/2017/07/17/economy-still-all-who-else-boomers/476908001/
3. Gray is the new black: Baby boomers still outspend millennials published by Visa https://usa.visa.com/partner-with-us/visa-performance-solutions/baby-boomers-still-outspend-millennials.html
4. Baby Boomer Report 2015 published by U.S. News & World Report https://www.usnews.com/pubfiles/USNews_Market_Insights_Boomers2015.pdf
5. Health Care Costs for Retirees Rise to an Estimated $275,000 Fidelity Analysis Shows published by Fidelity https://www.fidelity.com/about-fidelity/employer-services/health-care-costs-for-retirees-rise
6. Baby Boomers and Medicare published by Health Affairs http://content.healthaffairs.org/content/23/2/282.2.full
7. Appealing To The Affluent Older Consumer: A Retail Guide published by Forbes https://www.forbes.com/sites/bryanpearson/2017/01/03/appealing-to-the-affluent-older-consumer-a-retail-guide/#526a48986d72

GOP Tax Plan & 1031 Exchanges

UPDATE - November 16, 2017: House Republicans easily pass tax reform bill. The Senate Finance Committee also voted 14 to 12 to approve their version of the tax package late Thursday Night. This paves the way for the full Senate to consider the bill after Thanksgiving.

Aging America: Driving the Demand for Healthcare Real Estate

Since 2011, the baby boomer generation has been reaching the age of 65, an age at which they join the group of Americans using the bulk of healthcare resources. A generation of about 76 million people today will continue to turn 65 through the year 2030.

Investing in Senior Housing - Part 2

As with any investment, it’s important to do the proper due diligence to know where your hard-earned money is going. When it comes to investing in healthcare real estate, some think it’s similar to the traditional multifamily, office or industrial properties they have invested in before. Although in some instances this may be true, senior housing and care have some specific differences from other property types that are important to know before you invest.

Investing in Senior Housing - What is Senior Housing & Care?

You’ve probably noticed senior housing and care has become a popular asset class among both institutional and individual investors in recent years. It has already outperformed other noted real estate sectors and we believe it will continue to be a favorable opportunity due to impressive demographic fundamentals. Since we will soon be launching our own senior housing DSTs, we thought it would be fruitful to explain what differentiates facility types in this sector.

1031 Exchange Insurance

Peter decided it was time to increase his investment potential. He planned to sell the 2-bedroom condo he had been renting for 10 years and purchase a triplex or fourplex through a 1031 exchange. In compliance with 1031 exchange regulations, he engaged a qualified intermediary (“QI”) to handle the funds of the condo and the eventual acquisition of the replacement property.

1031 Crowdfunding Moves Up Rankings to #4 Among Top Real Estate Crowdfunding Sites

It was announced this week that 1031 Crowdfunding moved up in the rankings for the 2017-2018 Top 100+ Real Estate Crowdfunding Sites to #4 overall and maintained its position as #1 ranked Real Estate Crowdfunding site for 1031 Exchanges.

Choosing the Right 1031 Exchange Qualified Intermediary

Today, some investors are finding themselves with plenty of equity in their property and want to trade up or buy additional properties. Fortunately, the IRS allows investors to sell their properties with unlimited gains and defer their tax liability by identifying another like kind investment within 45 days (known as a 1031 Exchange).

AUTHORIZED PARTNER

CrowdPay is an FDIC insured bank account that you can use to purchase investment opportunities. You fund your CrowdPay account by ACH or wire transfer. All future dividends, interest payments, as well as revenue sharing payments will be placed into your CrowdPay account. You have the option to transfer funds into the account, withdraw funds from the account, or purchase additional assets at any time.

The account is held by GoldStar Trust Company, a trust only branch of Happy State Bank, and cash that accumulates in your new CrowdPay account is FDIC insured. Please follow the below link for additional important information regarding your CrowdPay account.

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