VALUE: After Hours (S08 E04): The $75 Trillion Baby Boomer Wealth Shift — Investment Opportunities Ahead

During their recent episode, Taylor, Carlisle, and Unemployed Value Degen (Stephen Farrington) discussed The $75 Trillion Baby Boomer Wealth Shift — Investment Opportunities Ahead. Here’s an excerpt from the episode:

[Steve] Well, my number one thing, and for anybody watching, I’ve got my background with my mascot dancing with the baby boomers, is the baby boomers have something like … The number keeps going up because the stock market goes higher, but they’ve got something like $75 trillion of assets. The first level narrative is like, oh, wow, millennials are going to inherit all this wealth.

My take on that is, well, maybe not so fast. I was a financial advisor at Merrill Lynch. One thing that really shocked me in the culture of the baby boomers is about half of them don’t believe in inheritance.

Half of them are in the Warren Buffett giving pledge mentality and think that the kids are better off without the inheritance. They should spend it on themselves. I’ve been looking for companies that are going to help the baby boomers monetise their assets.

[Steve] My number one pick that I’ve been banging the table on so much, it’s my largest position right now personally, it’s called Abacus Global Management. The symbol is ABX. What they do is, the formal term for it is called life settlements, but for people that aren’t aware of this, there’s two kinds of life insurance, term life and whole life. Whole life, it’s this policy that says when you die, your estate is going to receive X amount of dollars to your descendants, but you’re going to pay monthly for this policy for the rest of your life. Term life, it’s okay maybe for the next 20 years, but whole life is for your whole life.

There was a Supreme Court case in 1911 that established that in the US, that life insurance policy is property. As property, you can assign it, you can sell it, and it has a value. For people that need cash now, they can go ahead and sell that life insurance policy.

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VALUE: After Hours (S08 E04): The $75 Trillion Baby Boomer Wealth Shift — Investment Opportunities Ahead

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