Zeihan on Geopolitics\/YouTube <\/p>\n
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Bestselling author and geopolitical strategist Peter Zeihan is warning that the U.S. is locked into massive, multi-trillion-dollar deficits for decades \u2014 and it\u2019s all because of one generation: baby boomers.<\/p>\n
In a YouTube video, Zeihan argued boomers built an increasingly generous welfare state during their prime earning years, but now that they\u2019re retiring, the financial burden is shifting to younger generations \u2014 especially Generation X, which is significantly smaller in size.<\/p>\n<\/p>\n
\u201cThe boomers have created a social welfare state for themselves that they never had any intention of paying for,\u201d Zeihan said. \u201cFast forward to today, two thirds of them are retired. They’re taking their money, they’re going home. The taxes that they’re paying have dropped off, and we are left with a welfare state to fund their retirement without their income to pay for it all.\u201d<\/p>\n
The numbers back up Zeihan\u2019s concerns. According to estimates, there are about 70 million baby boomers in the U.S., compared to roughly 65 million Gen Xers. Meanwhile, according to the United States Census Bureau, about 10,000 boomers turn 65 every day, further accelerating the strain on government finances.<\/p>\n
And according to Zeihan, that spells trouble for the nation\u2019s long-term financial stability.<\/p>\n
\u201cWe’re looking at absolutely massive multi-trillion-dollar deficits every single year to be continued,\u201d he said. \u201cDeficits: massive, locked in as long as the boomers live, which is going to be on the average, another 15 to 25 years, based on who’s doing the math.\u201d<\/p>\n
The deficit problem is already serious. In fiscal year 2024, the federal government spent $6.75 trillion while collecting $4.92 trillion in revenue, leading to a $1.83 trillion deficit. The Congressional Budget Office (CBO) projects that the 2025 federal budget deficit will climb to $1.9 trillion.<\/p>\n
As boomers enter their golden years, Gen X is set to benefit financially \u2014 at least for now. Zeihan believes the financial burden of the state will \u201cfall on\u201d Gen X, but in the meantime, the generation will dominate the economy.<\/p>\n
\u201cUntil we get to that point, it\u2019s a Gen X world,\u201d he said. \u201cWe’re going to control all of the money. We’re going to control the majority of the property. We’re going to dominate the stock market.\u201d<\/p>\n
However, he warns that this advantage will be short-lived. As millennials \u2014 who have already overtaken boomers as the largest U.S. generation, with 72.7 million people \u2014 gain political power, they will likely push for major budget reforms. And according to Zeihan, Gen X will be the ones footing the bill.<\/p>\n
Zeihan\u2019s suggestion to Gen X is clear: \u201cIf you’re an Xer, our time has finally arrived, but it’s only going to be a moment, so make the most of it, get your money where it’s going to be protected because sooner or later the millennials will figure this out, and we will find a way to get the budget back into some degree of balance, and it will be Gen X paying for it \u2014 but not today.\u201d<\/p>\n
Read more: Rich, young Americans are ditching stocks \u2014 here are the alternative assets they’re banking on instead<\/a><\/strong><\/p>\n Zeihan emphasized that his generation \u2014 Gen X \u2014 is becoming \u201ccapital rich.\u201d However, while Zeihan suggests that Gen X will control the majority of property and dominate the stock market, it\u2019s important to remember that this financial opportunity isn\u2019t exclusive to any one generation.<\/p>\n For instance, while traditional homeownership typically requires a hefty down payment and a mortgage, you don\u2019t need to buy a property outright to start investing in real estate.<\/p>\n Platforms like First National Realty Partners (FNRP)<\/a> allow accredited investors to own shares in high-quality grocery-anchored properties without the hassle of finding and managing deals themselves \u2014 with a minimum investment of $50,000.<\/p>\n FNRP properties are leased to national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, investors can enjoy the potential to collect stable, grocery store-anchored income<\/a> every quarter, without worrying about tenant costs cutting into the bottom line.<\/p>\n Investing in stocks can be even simpler \u2014 just ask Warren Buffett. He advocates for a strategy that doesn\u2019t require stock-picking expertise.<\/p>\n \u201cIn my view, for most people, the best thing to do is own the S&P 500 index fund,\u201d he famously said.<\/p>\n This approach gives investors exposure to 500 of America\u2019s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.<\/p>\n Buffett believes so strongly in this strategy that he has instructed 90% of his wife\u2019s inheritance to be invested in \u201ca very low-cost S&P 500 index fund\u201d after he dies.<\/p>\n The beauty of this approach is its accessibility \u2014 anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns<\/a>, a popular app that automatically invests your spare change.<\/p>\n Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference \u2014 your spare change \u2014 into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 \u2014 and, if you sign up today, Acorns will add a $20 bonus<\/a> to help you begin your investment journey.<\/p>\n At the end of the day, everyone\u2019s financial situation is different, with unique goals, income levels and risk tolerance. If you’re looking to build wealth but aren’t sure which investments align with your needs, it might be time to get in touch with a financial advisor.<\/p>\n With Advisor.com<\/a>, you can find the best advisor for your needs \u2014 both in terms of what they can offer your finances, and what they\u2019ll charge to work for you.<\/p>\n Advisor.com is a free service<\/a> that helps you find a financial advisor who can co-create a plan to reach your financial goals. By matching you with a curated list of the best options for you from their database of thousands, you get a pre-screened financial advisor you can trust.<\/p>\n You can then set up a free, no obligation consultation<\/a> to see if they\u2019re the right fit for you.<\/p>\n