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Should you add Health Care Funds to your Portfolio

This is only one question that Baby Boomers are asking their financial advisers as they get ready to retire.  Should I add Health Care Funds to my Portfolio?

Baby Boomers, born between 1946 and 1964 are retiring at the rate of 10,000 a day. Most all are more educated and Healthier than their parents were when they retired.

The Rolling Stones First Album release--1964

The Rolling Stones First Album release–1964

But 10,000 people coming into the system daily there would have to be some good investments there, wouldn’t there be?

Savvy Boomers on The Move

Boomers, as we are called, are more financial and internet savvy. Boomers are more on the move now than our parents. We aren’t likely to just set around in our retirement days. Most Boomers are on the move with vacations, and with a very active life style both day and night.

Retirement Planning

1964 Last of The Baby Boomers born

1964 Last of The Baby Boomers born

Boomers are pre planning their retirement and some even delaying retirement or changing careers after retiring and starting new businesses or consulting work to keep busy and active.

Portfolio management. Does your portfolio include Health-Care Funds?

Health-Care Funds

Robert Goldsborough wrote “Historically defensive and noncyclical, the health-care sector is gaining added growth from an aging America” Goldsborough is the lead health-care analyst for Morningstar.

“An aging population bodes well for the industry’s future prospects,” he added

80 Million Baby Boomers

You should understand that with 70 to 80 million Baby Boomers coming on to the Health-Care market that weather the market is good or bad the Health-Care Fund is going to be pretty stable.


Morningstar listed several health-care mutual funds that were showing a high rate of return. Some in the teens and 20’s over a five-year period.

Goldsborough noted that the health-care sector has outperformed the S&P index each year since 2011, but “underperformed the broader U.S. equity market during 2009 and 2010.”

Ok. Wow.

Sounds like Morningstar and Goldsborough are hot on Health-Care funds. Morningstar says that there is about $130 billion invested in the Health-Care Fund market. Well I guess. They seem to know what they are talking about.

Portfolio Manager

Peppers Lonely Hearts Club

Peppers Lonely Hearts Club

Here is another guy talking about these funds. His name is Eddie Yoon, a portfolio manager and research analyst for Fidelity Investments in Boston. Looked um up. They have six offices in Massachusetts.

Eddie Yoon wrote about the Health-Care Sector having the ability to being stable, and performing consistently in the near future.

Yoon sees that the sector’s “safe haven status often buoys its stocks through downturns or pullbacks”. “Even through recessionary periods, most people will not forgo important health procedures or treatments. In the most recent past, the health care sector has also been able to outperform in up markets.”

Health-Care Exchanges

Goldsborough states that the biggest development in the health-care sector of late, has been the opening of state-based health-care exchanges that allow individuals and small business to purchase standardized health insurance policies. Receive government subsidies to offset premiums and cost sharing, and determine medicaid eligibility.”

Managed Care

Yoon’s concerns-”investor uncertainty about cuts in government spending on health care.”

“I am staying away from investment in managed care organizations, hospitals and providers and from policy centric investments in general.”


What is it?

BUDGET CUTS!!! Medicare cuts. Can you believe it? 80 million strong and we let these “Piss Aint Little Bureaucrats hat we hire and we pay tell us we have our Medicare insurance cut. WE PAID OUR INSURANCE PREMIUMS. Why are we letting these paid EMPLOYEES tell us what to do. Democrat, Republican, Independent doesn’t matter. We are all in this together. These people work for us, We Do Not Work For Them.

Goldsborough said Morningstar analysts see problems in Europe and the uncertain impact of sequestration.

“However, the drug companies have adapted to both better than expected.”

There you have it fellow Baby Boomers. Should you include Health-Care funds into your Portfolio?

I don’t know. Couldn’t tell you. I saw some of this in my travels and thought it might be helpful.

You have to admit. With 80 million people coming into the market, there certainly is some potential, isn’t there?

Have any questions or comments please drop me a line at frank@babyboomersinterests.com. Be glad to help if I can.

Stay active and enjoy your retirement. I love mine………..Frank