Boomernomics

Boomernomics is the economy of the "Baby Boomer" generation, which can inform an investment strategy to capitalize on the consumption patterns of the group. In the U.S., those born between 1946 and 1964 will hold roughly 50% of the nation's net household worth by 2020 (source: Deloitte), making this demographic group a rich target for companies catering to its needs and wants.

A Baby Boomer economy is not difficult to imagine. In 2018, 54- and 72-year olds bracket the generational group. In 2020, they will be between 56 and 74 years old. If you are in this demographic, you have a clear understanding of what you need to spend money on and how you use your savings or discretionary income for enjoyment. If you are in your 20s, 30s or 40s, you have a parent or parents, uncles, aunts and other relatives who are Baby Boomers. If you are a young and ambitious student of business and finance reading Investopedia content, you probably have grandparents who call themselves Baby Boomers. Whatever your age, you can easily put together a list of things and services that are often consumed by this outsized group as measured by household wealth. A list could be first divided into non-discretionary and discretionary items, but the latter will be much longer. Non-discretionary items would include pharmaceuticals to relieve achy joints, high blood pressure, skin conditions, etc.; healthy food and drink; perhaps housing at an active adult community.