14 years ago, my body decided it couldn’t take it anymore.
That was the day I suffered a “Transient Ischemic Attack” – doctor speak for a mild stroke.
Right after it happened, I tried to say the alphabet out loud from A to Z and couldn’t complete it.
Clearly, something was very wrong.
Thankfully, it wasn’t life-threatening. And I made a full recovery.
But it was a huge wake-up call, reminding me to take better care of myself.
Ever since that scary episode, health care has been at the core of my daily routine. Eating right, keeping fit, and getting enough sleep are three of my top priorities.
I get up every day at 5:00 AM and head to the gym, where I spend at least an hour doing cardio and weightlifting. I’m not trying to become a world-class bodybuilder. But I do take health care seriously – after all I have a wife, five kids and a new grandkid. And I’d like to spend as much time with them as possible.
That’s why I pay so much attention to my physical health.
Here at the Intelligent Income Daily, our primary focus is on helping you with your financial health. But it’s important to remember that your physical health shouldn’t be on the backburner, either. Focusing on both is the key to enjoying a true sleep-well-at-night retirement.
And when we can find an opportunity that helps boost your financial health by making physical health a priority… our ears perk up.
Healthcare is a trend that isn’t going anywhere. And by helping improve and save lives, it can help smart income investors see great returns.
Today, I’ll tell you why spending on healthcare will keep increasing in the coming years and give you a few examples of companies that are positioned to benefit.
Get Ready for the Silver Tsunami
Every year, millions of Americans are getting that same wake-up call that I did and are realizing that they need to do more to take care of their bodies.
For the lucky ones like me, it could mean simply changing some of their habits. For others, finding out they have a chronic disease could mean more frequent visits to the doctor. The more unfortunate may end up staying in medical facilities for the long term.
According to the United States Census Bureau, the number of retirees in our country is expected to increase 30% by 2030 as the Boomer generation grows older. It’s a phenomenon known as the “silver tsunami.”
What that means is that more and more people will be getting to the age where they need more support from our healthcare system.
But here’s the problem: our healthcare system is already close to the breaking point.
You may remember news headlines over the past few months reporting that hospitals were short-staffed and full of patients suffering from a triple outbreak of COVID, Respiratory Syncytial Virus, and the flu.
Clearly, more investment in healthcare infrastructure is needed in order to take care of our rapidly aging population.
And there’s one investment that fits that bill perfectly…
Ways to Ride the Wave
Healthcare REITs (real estate investment trusts) are poised perfectly to ride the silver tsunami wave to great profit potential.
These REITs own the hospitals, medical office buildings, nursing facilities, and senior housing that more and more people will be relying on in the future. That means that they will get steady rent checks year after year whether the economy is in recession or not because these buildings are essential.
Healthcare spending has increased without fail every single year. And by 2030, it is expected to be 50% higher than it is today. That means that there will be a steadily growing demand for the buildings that healthcare REITs own.
To capitalize on this trend, here are four examples of healthcare REITs that could provide your portfolio with a healthy stream of income:
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Medical Properties Trust (MPW) has 437 properties, most of which are hospitals.
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CareTrust REIT (CTRE) owns 221 properties, focused on skilled nursing and assisted living facilities.
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Healthpeak Properties (PEAK) has 480 properties focused on medical offices and life science research facilities.
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Ventas (VTR) owns and manages nearly 1,300 properties that are diversified across all parts of the healthcare system, including senior housing, medical office buildings, hospitals, and life science research buildings.
Even if you decide that these companies are not the right fit for your portfolio, there is something else you can do right now: stand up and go for a walk.
Trust me, your body will thank you.
Happy SWAN (sleep well at night) investing,
Brad Thomas
Editor, Intelligent Income Daily
P.S. Looking to capitalize on your financial health with other long-term profitable trends?
Check out the Intelligent Income Investor to find out my favorite plays for today’s market with tomorrow in mind – all of which pay healthy, reliable, and growing dividends.