7 Episode results for "Transamerica Center"
Millennials Are Sabotaging Their Retirement Savings to Cope With the Pandemic
"Millennials are sabotaging their retirement savings to cope with the pandemic by Alex Gaily. Laura Santos twenty four had a million things on her mind. None of them included saving for retirement. Instead Santos was thinking about buying her first house in San, Diego and planning to take out a loan from her retirement plan to come up with enough cash to cover the down payment and closing costs. It seemed like there would be no damage that I would be helping out myself by. By putting a lot of money into my four zero three B, then taking it out and getting myself a house Santo said it was February when she talked to a financial adviser about borrowing from her retirement plan, Santos and administrative assistant at the University of California, San Diego felt good about the idea by the end of the conversation, even if it meant wiping out her retirement savings. The advisor didn't go over any cons. It seemed like there were only pros. Santos says. He told me you should put a lot of your money into your four zero three b because you can take a loan out for yourself and pay that interest back to yourself. I thought to myself. Wow, I can take a loan out and pay myself back. I didn't think there was anything negative about it. Then the coronavirus pandemic hit a month later, and everyone's world turned upside down. Like Santos most millennials were already at risk of not achieving a financially secure retirement. The temptation to forego long term investments in favor of more immediate expenses has always been a hazard now, though covid nineteen and the recession it caused are making a bad situation worse. According to a new study from the nonprofit Transamerica Center for retirement studies, millennials born between nineteen, seventy, nine and two thousand are more likely than older generations to dip into their retirement savings in the current economic climate about thirty three percent of millennial workers have already taken alone or withdrawn money from their 401k or similar retirement plan in twenty twenty, or are thinking of doing so compared to fifteen percent of Gen xers and ten percent of baby boomers. millennials under financial pressure are using their retirement account loans to pay off debt, purchase, new vehicles or avoid eviction according to the study. New legislation passed by Congress. This year has temporarily waived. Some of the penalties and fees usually associated with such a move still rating retirement accounts early in life has serious long-term consequences that be considered carefully personal finance experts say. As a retirement researcher, it's very concerning to me that millennial workers are eyeing their retirement accounts as a source of funds to help them get through the pandemic says Katherine Collins A-and CEO and President of the Transamerica Institute and Transamerica Center for Retirement Studies. millennials face more of an. Uphill battle financially. Even before the corona virus outbreak, many millennials were dealing with precarious economic situations, many at entered the workforce around the time of the great recession, and with more student debt than previous generations financially, I could make a lot more money, but I'm doing okay and I can pay my bills Santo says I had a lot of debt in college because I was putting everything on my credit cards, and by the end of college I did take out student loans for many. Retiring in a traditional sense has always seemed far fetched. According to the study, millennials are more likely to expect to be doing some form of work in retirement, and unlike their parents generation, Collins says many millennials expect their primary source of retirement income to be self funded through retirement accounts like 401k's four zero, three BS IRA's or other savings and investments, the very same accounts that a third of them have tapped into this year. Most are concerned. Social Security will not be there for them when they are ready to retire. Retirement is somewhere in the middle of my priority. List I know I should be contributing as much as I can, but I also think about how I need cash now Santos says. The median retirement savings for millennials. Today is twenty three thousand dollars compared to one hundred forty four thousand dollars for baby boomers and sixty four thousand four Gen xers, according to the study on one hand, millennials may be thinking that they have years ahead of them that they can make up for a financial setback to their retirement accounts, but they may not be realizing the magnitude to which could inhibit the long-term growth of their savings, collins and says. The pandemic make saving for retirement, even more complicated. In Normal Times withdrawing funds from your 401k account before you reach retirement, age is a big. No, no, but these aren't normal times and recent stimulus legislation has changed the rules that means there isn't as straightforward, yes, or no answer to whether you should take a loan or hardship withdrawal from your retirement account. Collins says if you're thinking about it. One of the most important recommendations she can offer is to do your homework before making a decision. Look before you leap, because it can really inhibit the long-term growth of your savings, she says, and when you financially get back on track, you may be in a position where you need to rebuild, and it's really hard to build those savings in the first place. Douglas Bone parth the president and founder of Bone Fiji Wealth says it's better to exhaust all your other options such as emergency funds or other easily accessible forms of savings before tapping into your retirement accounts, but if you have to borrow and can't cut back on expenses anymore, there are worse places to borrow from than your 401k, he says. It's not the worst place in the world, but there's never a good feeling that comes with having to borrow money against something. That's for your future because you need to cover an expense today, bone, parth says. While, the experts agree that retirement savings could be a crucial lifeline during the pandemic, they also agree that it's best not to use those funds for unnecessary purchases like a new home. What do you want your retirement to look like? With a few decades to prepare, it's important to take the necessary steps to craft your own strategy and figure out what retirement looks like for you on the surface. Planning for retirement seems like a largely mathematical exercise, but there's a lot more to it while getting your calculator out and crunching, the numbers is essential for retirement. It's also important to visualize what you want your retirement to be like says lowery author of broke millennial takes on investing and a contributor to next adviser. Having conversations with other generations about retirement could be especially beneficial in the wake of the pandemic, according to the TRANSAMERICA Center for retirement studies study, nearly eighty percent of workers across all generations agree with the statement compared to my parents, generation people in my generation will have a much harder time in achieving financial security. MILLENNIALS are more likely to agree with that statement than baby boomers. The survey found. Instead of pitting ourselves against boomers, there needs to be some conversation and collaboration. Ask Them. What do you wish you had known? What do you wish you had learned when you were our age? What would you have done differently to set yourself up for this life? That's really valuable information for US millennials. lowry says. Improving. Your financial knowledge makes a difference. Your financial literacy affects every single decision you make about money, but managing your money takes time to understand and to improve on, so seek guidance. If you're ever financially unsure about something in Santos's case, she would have borrowed from her retirement account if she hadn't watched youtube videos and done our own research online. I started worrying about retirement when I started learning more. She says I asked myself am I going to have enough to take care of myself and not be a burden to my children. Retirement. Planning is just one example of why it's more necessary than ever to understand your money and how it works. Ultimately you decide how much you'll need to retire. What type of account to set your money aside in and how to invest it whether it's picking up a few personal finance books or customizing your social media time line to feature more personal finance experts. It's important to ask questions and do your research before making any major financial decision especially when it comes to retirement. My situation has been a lot better ever since I started learning about finances, I've been watching a lot of first generation Latinos and people of Color. Who Talk about personal finances on Youtube Santos says, and ever since I started learning I've been able to budget and save an extra seven hundred dollars a month before that I thought I couldn't make it financially.
Why All Retirees Should Consider an Income Annuity
"Walk into money for the rest of us. This is a personal finance. Show on money how it works. How to invest it and how to live without worrying being about it? I'm your host David Stein. Today's episode to seventy nine it's titled Why all retirees should consider income annuities. I get a lot of questions about retirement. Here's an example. A member money for the rest of US plus that should would after retirement portfolio be structured different from the savings phase portfolio. Got An email today from a listener. Yes about one point. Two million dollars in assets. He's fifty four about four hundred thousand in the stock market half a million dollars in certificates of deposits and is considering taking some of that money in CD's and putting it in a ladder portfolio of individual bonds this would be a portfolio where you have bonds that mature in one year two years three four or an honored individual bonds finally got an email from a member who asked about annuities given that they have no children no no debt. They don't want to leave an inheritance to anyone. Their primary goal is not run out of money before they die he asked. Should we put all of our assets assets into annuities in order to maximize our ability to spend while reducing risk during retirement. Clearly how we invest and what we do with our money when we're retired is different during the accumulation phase when we were just seeking to save enough and earn a decent return so we have have enough to retire. Police do we do with his nest egg once retired. I came face to face with this during being the great financial crisis in two thousand eight. We were managing portfolios for financial planners as one of our lines of business and in the fall. Aw of two thousand eight. I went out and met with the clients of one of these financial planners this was in Baltimore. We managed a stock portfolio. Anna Bond Portfolio for this client and the advisor would allocate mostly retirees into these portfolios typically. It was fifty percent stocks Fox on average and so these retirees came filing in to this meeting was held in the evening and they looked shell shocked act their portfolios. Were Down Twenty five the thirty percent they were fearful and as I spoke to them I tried to shit calm them. Let them know things. We're going to work out but at the same time I recognize that just investment tools isn't going to work how is retiree supposed to stomach fifty to sixty percent drop in the stock market. I spent five five months. Researching retirement income strategies different ways to go about it in at the end of that time I wrote a white paper in. Here's what I wrote. We believe many retirees are underestimating the risk of depleting personal savings during retirement the probabilities of retirement ruin can change dramatically based on market return patterns. What's often called now? Sequencer return risk and inflation over a thirty five year. Retirement entering retirement knowing there is even a ten percent probability of prematurely depleting personal savings when that is the primary source of retirement. Income is imprudent there are too many unknowns that can potentially lead to catastrophic outcomes most retirees with homes wooden think of going without fire insurance yet the probability of their house catching on fire over a thirty year period is only one percent much less than the probability a retirement ruined for many retirees just as retirees protect against fire theft and other risk ask by purchasing insurance they should also protect against longevity and other retirement income risk by making sure the majority thirty of their retirement income sources are guaranteed. What are these guaranteed retirement? Income sources defined benefit if it pension plans with less than ten percent of retirees have security or other government sponsored retirement programs and income annuities sometimes called immediate annuities a product. I knew nothing about when I started that research. That was over ten years ago and I've mentioned income annuities on the podcast. I've assisted family members and shopping bring in purchasing annuities. But it wasn't until I recently read a book by retirement researcher. Wait foul that I was reminded. How important in this guaranteed income is we can get through annuities per funding retirement? The book is titled Safety First Retirement an integrated approach approach to worry free. Retirement reading a book. Even if it's a familiar topic can reinforce points. You might have forgotten. You can look at a topic from a fresh perspective. That's what vows book did to me. Twenty hope my book money for the rest of US ten questions to master successful investing does for you and and for those. You might give a copy to this holiday season. We're GONNA dig into some of the lessons from his book and what I've learned over the years about retirement income as a better way to structure retirement portfolios. It's a safety first. Approach versus a probability based approach before we explore income annuities and more detail. Let me share some words one of this week sponsors vistaprint last week. I got a package from vistaprint. We ordered some cards made out of recycled paper with the money for the rest of US logo that I could put in copies of my book. That giveaway away. They looked great. vistaprint not only gives you the ability to order cards for specialized needs like with my book but you can also order order holiday cards. It's simple to do you pick a shape like a square or rounded corner folded flat. Then choose one of vistaprint's designs. They've they've got everything from fun and festive gorgeous. eye-catching looks next. You can put your favorite picture right there on most of the options even upload load great shot right from your phone then just figure out how many you need in order them with time to spare. vistaprint has hundreds of car designs from timeless classics to Fund New Trends. So this season make more Mary at vistaprint DOT COM with up to fifty percent off all holiday cards and photo. Oh calendars plus great deals on photo gifts at vistaprint DOT com. Just enter Promo Code. David fifty that's vistaprint dot Com Promo Code David D. A. V. I. D. Fifty Five Zero offer expires January fifth. What then is a safety first? Retirement here's what foul says in his book safety. I advocate support a more bifurcated approach to building building retirement income plants that integrates investments with insurance providing lifetime income protections and. That's what I described in my retirement. Income paper paper immediate annuities income annuities. And we'll look to see how those are structured regarding a probability based approach. Here's what foul rights writes probability based advocates generally view annuities and life insurance as unnecessary retirement. They see the stock market as a straightforward way to obtain superior retirement outcomes probability based approach focus on spending rules. What's a sustainable spending rate? The four percent rule or other ways of going about it foul writes in fact. The general view of safety I advocates is that there is no such thing as a safe withdrawal rate such as the four percent rule from volatile portfolio. A truly truly safe withdrawal rate is unknown and unknowable. Instead what safety I advocates do they risk pool using insurance and the benefit of that is it requires less assets to cover your lifetime if time spending amount it as foul points out effectively reduces the potential overall cost retirement less money because of these income annuities. How do they work? Then it's a contract with an insurance company you give the Insurance Company Company. A lump sum the premium and the insurer promises to pay a specific periodic dollar amount usually monthly for the rest of the the retirees life and depending on the contract the lifetime of their surviving spouse. Generally they're set up as a level payment but but you can get them with a cost of living adjustment. I wrote in the paper with an immediate annuity. The retiree eliminates longevity risk market risk and if desired inflation risks if an index annuity is purchased when we are using a probability pretty based retirement approach trying to figure out how we should invest all our funds. What the spending rate should be we have to plan for for extreme events? We're GONNA live to be ninety five or one hundred and that market returns will be below low average but income annuities because you're sharing risk among a group of retirees. You can plan. Based on an average life expectancy ency an average returns. Here's how foul describes it with risk pooling. One does not need to plan for the very expensive case of an an extremely long life combined with poor market returns instead the retiree pays and insurance premium that will provide a benefit to support spending if those risks materialize and retirement becomes more expensive and unprotected investment full it may otherwise deplete insurance companies these can pool sequence and longevity risk across a large base retirees allowing for retirement spending that is greater than the a sustainable withdrawal rate from investments for someone self managing these risks. You get more bang for your buck with an income. Become the annuity. How long can you expect to live? There's a study by the TRANSAMERICA Center for retirement studies that was was released in December. Two Thousand Eighteen was title how today's retirees are financially fairing in retirement. And one of the questions was. How long do you think you'll live? Or what did you assume in retirement plans that you would die now. No one knows. The median was aged ninety. Although fifty two percent said they they weren't sure here's what actual studies show. This is from a website called longevity. Bill Straighter Dot Org and they compare pair smokers and non-smokers with excellent average and poor health both females and males. A female with excellent health nonsmoker. Fifty percent chance of surviving to age ninety twenty five percent chance of surviving to age ninety six and ten percent age one. Oh One. A male nonsmoker with excellent health fifty percent chance of surviving to age eighty eighty seven twenty five percent chance of surviving to age ninety four and ten percent chance of surviving to ninety eight. Those are the life expectancies. If for using a probability based approach that we should use in planning out of retirement trying to eke out those returns turns exclusively from an investment portfolio will be very difficult to do what foul recommends and what I recommend in that retirement paper is essentially an asset liability approach. There's a table in fouls book. He shows assets that we have clearly the most retirees have financial assets checking accounts brokerage account retirement plans. They have social capital. Social Security. Medicare air company. Pensions in other words. Somebody else is providing that income stream. We have home equity and we have human capital the ability he to work into our retirement years perhaps part time another asset that we could have that most people don't have less than ten percent retirees rely on some type of annuity but that could be an asset now the liabilities ladies our future payments that we have for essential living needs taxes perhaps debt repayment. But we have essentials and then we have discretionary travel and leisure lifestyle improvements. There are contingencies long-term care healthcare other spending shocks that Transamerica studies showed the biggest concern or worry that retirees have is declining health that requires long-term care. Forty seven percent retirees list of that as one of their greatest fears the yet only ten percent. You have any type of long term care insurance. We're not going to talk about long Term Care Insurance in this episode but that is a potential liability out there contingency that we need to plan for some how other healthcare or spending shocks or potential liability and then legacy leaving something to our family or community and society we have these assets and we have those liabilities. This safety first approach is to cover. You're you're essential living needs with guaranteed income social security pension income annuities. Now we could as the one listeners asking about we could self. Annuity is by having a bond ladder. Bonds be at municipal bonds or regular bonds individual bonds that as they mature they cover are essential expenses or some of those expenses. But you don't benefit from the risk pooling what are known as mortality credits. The fact that you get additional payments because income annuities are based on the average outcome. Sure the insurance company is investing primarily in the bond market generally they can earn higher returns than us because they have a much longer time horizon. And they're not having to do a ladder bond per folio but we could sell the new ties but we can get a higher payout if instead of doing that we cover those essential expenses with social security or your particular governments retirement plan a pension defined benefit. Plan if you happen to have that an income annuity and by doing that. We can invest the rest of our assets aggressively. If we have our essentials covered do guaranteed income sources then our remaining assets can be invested stood more stocks are more aggressively because we were not subject to that sequence of return risk before we look at how much income annuities pay out. Let me pause and share some words from this week sponsors. It's already December and as much as we love getting seasonal. This month can be a bit stressful. We've all got a a long list of things to do for the holidays. If Life Insurance is one of those things way down on your list policy genius might be able to help you cross it off. They'll find mind you the right life insurance at the best price and do all the work to help you get covered policy. Jeans makes finding the right life insurance of breeze in minutes you can compare quotes from the top and shores to find your best price you can save fifteen hundred dollars more a year by using policy genius to compare life insurance policies once. You apply the policy. Do you. New Team will handle all the paperwork and red tape and policy genius doesn't just make life insurance easy. They can awesome help. You find the right home and auto insurance or disability insurance so if you need life insurance but aren't sure where to start. Why not start at policy? Let's see genius Dot Com. It only takes a few minutes to find the right life insurance policy apply and cross another thing off your to do list policy genius when it comes to life insurance. It's nice to get it right. The best source I have found to get prices on. ANNUITIES IS IMMEDIATE ANNUITIES DOT COM twenty us back in two thousand eight. You can put in at Hypothetical Kgo eight and it. Oh price out. What leading insurance companies are paying on annuities in two thousand eight? When I went through that analysis when I wrote that that white paper a sixty five year old male the payout was eight percent or higher? Now on I do. It is sixty five year old. The pants about six point three percent. That's the annual payment divided by. How much is put into the annuity? Now we recognize that those that die. I soon weren't GonNa get all that money back but if you live longer than average expected you'll continue to do that. Annuities are priced based on the average the average life expectancy interest rates are lower now than they were in two thousand eight and because the insurance company is investing these premiums they will oh have less of a pail because rates are lower. Now we might say why. I don't want to invest in annuity now because rates could be higher in the future. But if we're taking a safety first approach when it's time to retire. It makes sense to buy an annuity because we don't know of rates are GonNa fall further or potentially actually people are just gonNa live longer and insurance companies won't make as high a payment because life expectancies are increasing. What if cancer was dramatically secured? One way we can mitigate that is to buy a series of annuities perhaps one to fund are essential expenses when we first retired and one five or ten years later. One reason people are afraid or reluctant to a US income. Annuities is because they don't like to see their account balance go down. They feel like they're giving up liquidity by take several four hundred thousand dollars and give it to an insurance company. Yes they're gonNA pay me on a monthly basis. But I don't get to see that amount in my account anymore anymore. But as we saw with the asset liability approach an annuity is an asset. We can value it. We can look at it and foul. How does this look at the payment stream assuming you live to a hundred? What is the present value or the value of that income stream today and you can use? In his case he uses a three percent discount rate. Assuming that's what the insurance company is earning but you could value on that those that pursue a probability based retirement are not as liquid as they think. Here's what foul rights retirees are free to reallocate their assets. In any way they I wish but the assets are not truly liquid because they must be preserved to meet the spending goal assets cannot be double counted and while retiree could decide to use these acid for another purpose. Doing so would jeopardize the ability to meet future spending in this sense. Assets are not as liquid quid as they appear so we need to get over the psychological hurdle that our account balance will go down because we bought an annuity it is still an asset. A very valuable asset and using these income annuities can make the overall cost of retirement lower because we don't have to plan for extreme events poor returns poor sequence of returns and living beyond age one hundred which by extreme isn't necessarily bad. Some people want to live that long another concern about an income. Annuity is what. If the insurance earns company defaults. There are several ways to protect against that. Buy An annuity. From a mutual insurance company that is owned owned by the policy holders so they're not beholding to Wall Street or the stock market they're owned by the policy holders and they have a very high if not the highest highest rating by an insurance rating service. Such as a m best. Don't buy an income. Annuity based on whatever insurance companies paying the highest amount. Base it on the Insurance Company that you have the most confidence in because they have the highest rating and they've been around for the longest time. In addition Russian individual states in the United States have insurance pools to protect if an annuity company default on the annuity. It is extremely rare. Only a couple of cases over the past few decades and they were not by any means the highest rated insurance company back on that liquidity issues sometimes retirees. They don't want to give up all his assets and what they died within the first few years and so they get a guaranteed certain period. So they'll lease get if died at least get ten years worth of payments that will go to whoever their beneficiaries this shares it results in a lower payout when I buy an annuity. I'm comfortable and not having that guaranteed term because again I'm looking at added as an asset with a certain role to protect against longevity so k. because there's other ways to fund benefits for my airs. I could buy a life insurance policy to do that. Another consideration if you just love to invest you. Don't I want to give up some of that. Opportunity to invest by buying a income. Annuity is what if our cognitive abilities ladies decline. We're not able to invest like we Co.. We just don't have the skills to do so maybe we get dementia. An income. Annuity can protect attacked against that. Because we're not so dependent on our investment portfolio that survey of how today's retirees. These are financially faring by the TRANSAMERICA Center for retirement studies had some sobering statistics. Thirty six percents of retirees has seen their personal financial situation declined since entering retirement and here is a shocking figure. fifty-six percent retired sooner than they they had planned. Fifty four percent was employment related. They lost their job. There was an organizational change at their place of employment. They were unhappy happy with the job now. Eleven percent took a retirement incentive or bio forty seven percent retired earlier than plan because of have health related or family reasons they had to become a primary caregiver or their own health. Only eleven percent retired sooner than and expected because they found that saved enough money it could afford to retire early now while fifty six percent retired sooner than they they had planned nine percent retired later than they had planned seventy five percent. It was financial related. They needed the income they hadn't saved saved enough for retirement now. There was also a healthy percentage. That enjoy their work and wanted to stay active and keep their brain alert continuing to work in retirement. It's a great thing and we should hopefully do that in a job that we enjoy that we can give back to through the community. But we don't want to be in a position that we can't retire because we haven't saved enough or forced to retire and then not have have enough and the best solution. I know to help overcome that. Our immediate annuities income annuities. They're a great tool and I said I knew nothing about them and I'm going to use it in my retirement for sure because I like the idea of being able to better maximize my necessary because I am offloading that longevity risk and market risk to the insurance company. I don't have to plan for extreme events I can plan for the average outcome and cover basic needs with guaranteed income. It's a safety first approach and it makes retirement planning so much easier now if you have a pension plan with with social security or other guaranteed sources maybe. You don't need an income annuity but most of us do need some type of nudity and file in his book goes into great detail on all other types of annuities variable annuities other insurance Sheri- products such as universal life. Whole life he prices and now he goes through all the math but at the end of the day? The income annuity plain vanilla income annuity without any writers is the most effective tool. And that's why all retirees should at lease consider an income and nudity. That's episode to seventy nine. You can get show notes at money for the rest of US DOT com links to the books and the other articles and Studies a reference. Why are there? Please sign up for my free insider's guide. We'll send you that weeks links as well as an essay I do on money investing in the economy. Some of the best writing I do each week just goes to you on that email list. You can sign up for that. Ah Money for the rest of us. Dot Com. Please consider sharing my book with somebody know that wants to become a better investor. I've written this book. For those that are advanced investors those that are beginning investors tools to help all of them and and it makes a great holiday gift. Everything I've shared with you in this episode. been for General Education not considered your specific risk profile. I've not provided Vita investment advice. This is simply general education on money. Investing an economy have a great week
Seek joy through experiences.
"Broadcasting where I talk about how I am thirty six and have no idea what the F. I'm doing with my life join me on my journey and I aim to help you feel good about your hello and welcome. This is a veto with flying blind I was consuming a lot of things and wanting things and I don't think it was really actually a note really wasn't because those things are adding value but because you say that wanting anything material is a negative thing I still do want certain things that are material that's perfectly normal there's nothing wrong with wanting a specific car thank you so much for joining me today guys and I wanted to talk to you guys about creating experiences as opposed to just attained I Pacific Watch but also that's not what you should use to give yourself value and also I believe that when it comes to working and a lot of people do and especially when you're young I was in my early twenties and trying to figure myself out and trying to figure out where I fit in the world and and it's important but I think sometimes we work so hard to be able to to attain those things that we sometimes forget to actually live our working hard there needs to be something a little bit bigger than just wanting to have something tangible what I think is really important more so than going also have those things to keep up and we were card right we work hard at our jobs for these things and we need to have houses and cars and clothes if they don't add any value to our lives so I do think that it is important to ask yourself when you are working toward attaining these things I need things to survive and other things are bonuses and things we know that we truly don't need but that we would like to have in our lives and there's absolutely nothing wrong with that lives and experience things and create memories with loved ones because we do get so caught up and just working in trying to using these things like I said to define me and because I didn't necessarily value myself I was giving myself value with exterior things and things and the very normal to feel like you need to keep up you might see people buying a new house buying a new car people post things on there divall do I really need it do I really need this thing that I'm working so hard for and will it bring me not just joy but lasting joy do they I was a little bit lost in a little bit confused and I was leading exterior things define me and because I I I was confident in who I was I was truly add value to my life and I think those are really important questions I know that I've needed to ask myself those questions and I got to a point in my life where social media accounts you turn on the TV and you see people wearing certain brands of things and it's easy to feel that you need to but we do have to sometimes way what's more important in our lives and ask ourselves what gives you value in your life like I said we material things We live in a material world and we all love things I do and I would be too I said that I didn't I I love nice shoes and purses and clothes and cars who doesn't like Nice things and we all I think to a certain degree strive to have things right we do that is how I reward myself and how give gifts again we do live in material world and it's so easy because it's what we're used to to reward ourselves we'll do live in a material world anywhere you go you know whether you travel whether it's every day in our lives what you see on TV social media you see people with you attain things that might not necessarily bring us lasting joy and we do all of those things but what good are these material things in our selves and also when it comes to birthdays Christmases things like that we do a lot of gift giving and one thing that I have really wanted to change up in my life all the people around me some people that I was hanging out with at the time and I felt that I didn't need to keep up and appear a certain way by having these things and I think that that's something that for things that give you fleeting joy because that's the truth you you know might really want an article of clothing and in that moment feels really good but it's probably not going to add that much joy to your life to where it gives you meaning in life it's probably not going to connect you on a deeper level with people or improve your relationships we also participate in to create this wonderful experience with them so I have a couple of examples for you I always have a hard time giving my parents get tonight what can they give them that's going to create lasting memories create great experiences and add something great to their lives so what I've been doing nieces nephews brothers sisters parents if you're giving them a typical gift of you know sweaters shoes or some headphones or whatever the case may be chances are they're going to get or anything in line with that so what I want to talk about is creating experiences I think as human beings part of how we function is a with reward goals or to give gifts that are material it could be sweater some shoes things like that and that's fine up really during Christmas time I fear giving other things that are similar to that so what I would like to do and what I've been trying to do is instead of buying them you know your typical gift is actually ask okay what I give this person to add value to their life what kind of experience can help create for them or what can I give them that I can actually demento and we bonded and we you know had some really great conversation and that's what these experiences do and then I also mentioned rewarding I something like that those are experiences that again are going to form some really great lasting memories and also create connections conversation I'm really wonderful experiences with others and also for yourself actually very artistic and she loves to draw and paint and she hadn't done that in a very long time so it was a chance for her to rediscover an old love and for me to experience or reward myself with something material and again there's nothing wrong with that but instead I would rather reward myself with something that is going to actually relationship when they can go out and spend some quality time together and do something that's going to make them laugh and help them have a great time so those are the sorts of things that I really would like to encourage you guys to do and it can be a challenge to figure out what to get my parents sometimes for Christmases father's day mother's Day birthdays things like that so what I've begun to do is I ask okay what for myself in the past when I have decided that I'm going to reward myself for some sort of thing that I accomplished a lot of the Times I would reward myself with a pair of shoes discoveries with people you love it's just really amazing it really is something special to experience together I'm constantly looking at articles about Senate not at all because they're picky or because they have expectations but because I always want to give them something unique something different something that they don't already have reward yourself or even reward others when we come back from break I want to maybe present some other ideas and some other strategies decrease they get to go and experience something together it gives them a chance to bond it gives them a chance to create some really great memories I really believe it helps them build edit good one of the best ways I have found lately is I buy them especially something like maybe an anniversary I've gotten concert tickets I've gotten them tickets to go see comedy shows and I like doing that because the going shopping and buying things so it's it's really great the number one benefit for traveling abroad is that it makes you healthier and here subscribe like love and follow us Ebsworth media at Z. W. E. R. C. Media Did to create some really wonderful experiences and not just give immaterial gift lake a t shirt or a picture frame because really even though those things are so nice and it is thought that traveling actually keeps you healthier the study found that women who vacation at least twice a year show a significantly lower risk of suffering a heart attack than those who only made it a real goal to travel more and a lot of my travels have been with some friends but a large chunk of them have been with my parents and at the gave my mom a gift card to do a paint and wine night and for her and I did do it together so that was also really great experience for one because my mom is it's of traveling and what these experiences can really give you benefits that you will get from an experience like traveling that you just won't get from whoa every six years or so the same is true for men men who do not take an annual vacation show a twenty percent higher risk of death and thirty percent greater risk of heart disease create some really great memories and experiences is through travel I've mentioned before in previous podcasts that in the last couple of years it's been so great for a lot of reasons it's really brought me closer to my parents it's really helped us have more to talk about it's open doors fit me and created a a great experience so that could even be something like a massage or a night out with one of my girlfriends to go have dinner and some drinks they are broadening your horizons of course if you travel with an open mind open to all of your surroundings different cultures different art different food different people accounted comes to gifts those things really aren't going to add any sort of value or lasting joy in their lives another example is a for mother's Day so that's a really great thing about traveling and just experiences in general I would say for example I spoke earlier about how I took my mom for her birthday to do this with her and we did it together and it was a lot of fun and it created some great memories you get some really cool pictures we have a piece of art that we got to take home that we get to have as ends up with people in that maybe you haven't spoken to or hung out with in a long time so I want to encourage you again to maybe take this approach when deciding to levels and different places to travel and actually came across an article it's a little bit older but it's from May of two thousand seventeen it's called a five science so if that's not a great reason to go out and experience some traveling I don't know it is that's a really great benefit of traveling number two is travel relieves stress I five is travel lowers the risk of depression while people tend to avoid the subject in our society depression is unfortunately a major problem millions of Americans struggles depression with my mom I was getting excited and it really brightened each day and when you have something to look forward to like that I really have found that it does elevate your mood and number on a regular basis and it's not uncommon for doctors to prescribe medication for depression luckily healthier alternatives are available for escaping the hopelessness of a depressed officially proven health benefits of traveling abroad. It's by Larry Alton and I just found it really interesting and I'd love to share these points with you so you can really truly see the benefit read part of the article and he says according to a joint study from the Global Commission of Aging and Transamerica Center for retirement studies in partnership with the US Travel Association es here mentioned that yet traveling can be a little bit stressful sometimes especially if you have connecting flights you lose bags dealing with foreign people and things state according to the research travel may be one of them and here they talk about a study from the Marshfield Clinic in Wisconsin that states that women who we've had really great conversations and when you go somewhere new and you're broaden your horizons it's really great to do it with somebody that you really care about to share those at work of course however one of the most interesting takeaways from the Cornell University study is that people also experience indirect increase in happiness from just planning a trip this study feeling less anxious more arrested and in a better mood interestingly these benefits tend to linger for weeks after the trip has ended so does have a lasting effect on us will not just while you're really great benefit of of traveling abroad number four is travel boosts happiness and satisfaction here it says most people tend to be happier when they're traveling and don't have to worry about anguish all that stuff if you're really open and you really are receptive to all of that it really broadens your horizon it really opens up your mind and it makes you're actually on vacation laid out on a beach with a my tie in hand number three is travel enhances your creativity foreign experiences increased both cognitive flexibility it does and I've experienced this before when you are planning a trip it's really exciting and every day you know you're a little bit closer to your trip and it really does make every day better found the anticipation of taking a vacation as far greater than the anticipation of acquiring a physical possession thus the benefits of traveling abroad begin well before the Schnitt least twice a year or less likely to suffer from depression and chronic stress than women who vacation less than once every two years and I've also found when it comes it gives you perspective it opens your eyes and it's a great experience and travel isn't always realistic for everyone and that's the truth there are so many reasons why may be traveling isn't realistic for you but that doesn't mean that you can't create wonderful experiences for yourself you don't have inexperience and I myself dealt with some anxiety and depression and I've spoken a little bit about that previously but when you see other people and how they live to travel far to get the same benefits that I just mentioned you can create wonderful bonding experiences with people and you don't even have to go far you can very eye opening and of course that's not to say that sometimes yes the pressure needs to be addressed with medication I'm not saying that this is a cure for depression it's again it's so humbling and it really makes you count your blessings and that's one of the beautiful things about traveling especially if you can give back in in these situations it's complete sense that it would really enhance your ability to be creative because the more exposure you have two different things languages art you're going to have more ideas so that's by just jumping in a car and driving you can just explore it's really great to go and be somewhere new with someone or even by yourself and just see what that place has to offer I haven't always traveled a lot and sometimes whether it's for financial reasons or maybe you have really small kids and you don't live by family that can babysit them jump in the car and take a road trip instead and you can go somewhere close living here in Arizona we have so many wonderful and beautiful places
AI Hiring, Never Retiring: Working in the 21st Century
"How's the world around US shaped by technological advancement and leadership join host Walter Isaacson the stories behind some of the biggest disruptions in history from lithium ion batteries DNA testing in forensics? Listen to trailblazers with Walter Isaacson from Dell Technologies on your favorite podcast APP if you start your career at twenty and retire at sixty five. Get about three weeks of vacation. Nations slid in each year. You'll spend ninety thousand hours or more working. That's about a third of your life the same amount as sleeping but what is that work going to look like ten fifteen or even fifty years from now from the Wall Street Journal this the future of everything. I'm Qatari Yoga today. We're GONNA talk about the future of work. The starting with how companies could use technology to get up close and personal in the hiring process and we mean very personal. You create the future. You place the individual in the future and present them with a variety of challenges and see how they do against those challenges. Then we'll we'll look at how once you land. That job TAT could help. Make sure you don't get lost in your work. Literally go straight for about thirty five feet turn left and finally as our work life evolves is it changing the way we think about the final stage of our careers. Our retirement one company. I talked the two calls employees entering the later stages of their careers elders and it offers them opportunities to stick around where work work. It's all coming up after the break. Are you a Henry. It stands for high earner not rich yet in means the despite earning a six figure income income. You're struggling to amass any meaningful nest. Egg are friends of the Motley. Fool can help. Since nineteen ninety-three they've been providing investment advice helping members build the financial future. They envision to Kick Start Your twenty twenty financial goals. They're offering five of their favourite stock picks for free realizing. YOU'RE A henry. Remember the not rich part you can do it. And the Motley fool can help visit full dot com slash. WSJ hunting for a new job is one of the resolutions. A lot of folks make starting off the year and many hiring managers have new budgets. And start ramping up recruiting after the holidays slowdown right now the way most people go through that processes not very different from how it was done in the past checking for job postings online sending and cover letters and resumes but with all the data out there about each one of us. What's the future of hiring gonNA look like reporter Hookah shellman found out? It's a New Year for many of us. Time to look for new job your update you're linked in scrappy social media. And then if all goes as well you get an interview hoping to make a first impression but turns out some companies already have very good impression of who you are the amount of information that people have on candidates before they actually arrive to the interview which can freak some people out because the idea of the for instance our digital footprints reputation could be processed and translated into an inside or an inference of your potential or talent more than than it is. Today is quite that creepy in a way. Tomas Chamorro premise is a professor of psychology Columbia University and the chief talent scientists that manpower group. He's not talking about programs. That pre filter resumes linked in for keyboards and skills. This goes much deeper artificial intelligence. This can be used to discern your personality through traces you leave online. And he says that our personalities embedded in almost anything we do for example apple the music that you listen to says a lot about your typical emotional states your personality your level of interest in different things your curiosity leveler intelligence level things like uber or lift ratings say a lot about how cordell agreeable friendly or pleasant you are basically. There's some is if you nice to driver you'll be nice to work with their already. Artificial intelligence based tools that can generate personality profiles from people's linked. It didn't in seconds. So why would we care. Tema says personality and cognitive abilities are becoming more important for employers compared to self-reported skills and work experiences. That's because companies keep changing their business models and they need employees. That could keep up. You really need to accept the fact that if a lot of the the jobs of the future don't exist today. The best thing we can do is not train people for specific hard skills or knowledge areas or expertise but identify if I whether they are likely to be good learners in the future and whether they're adoptable companies could of course use traditional personality. Test ask you might have heard of meyers brakes or disc or the big five you know choosing descriptions like people look up to me. I tend to be a kind person I accept live as it comes. Do you agree or disagree. These tests have been used for decades and most generally accepted as reliable measures of personalities now tech startups have developed algorithms that use artificial intelligence to create a personality analysis instantly without asking any questions like the company crystal analyzes. The words phrases and data points on someone's Lincoln profile and correlates with personality test results from people who have similar similar words phrases and data points. They used a bunch of the tests that we talked about another company. Humanistic used the disappointment and the big five. Both companies are using natural language processing tools. But do they work. We started by running mannix algorithm over Thomas Twitter feed this is you and this is based on your twitter so your analytical cautious deliberate and then we looked at Lincoln using the same companies tool so now you are influential energizing an impulsive in here. You were an analytical cautious and deliberate shortly so I would say more impulsive Paul Save than cautious and deliberate and the two are of the opposite extreme you know so same algorithm very different results for the thing. There is an element. amando throw everything against the wall and see what sticks here okay. So what does the other company crystal say about him. Based on his linked in this is one is better direct assertive and competitive. I think is better than court shows. Delivered speak very directly or bluntly yes stay. Stay focused on one point. Not necessarily I mean I'd like to jump from one to assert yourself with confidence definitely not as spent the last ten years in writing books on how we shouldn't mistake confidence for competent. So please don't assert yourself with confidence. There are trade-offs here right and I the thing that this doesn't seem as accurate as a traditional science based or validated assessment despite these inconsistencies Tomas still things. There's something here but other experts in the hiring field a less forgiving. There's no uh-huh science behind this. There's no real research that supports deriving personality from social media behavior. This is John Scott. He's he's an organizational psychologist bills assessment tools so companies can find the best possible hires. It's something that we can discuss it cocktail parties but I would would never in a million years attempt to derive someone's personality from that and then use that to make predictions beached out to crystalline. Human Tick Kris told told us that there are no independent studies but they're validate their tests internally. They say they ask every user how accurate the predictions are so when Iran Thomas Profile through crystal. The system asked me if it was accurate. She mandich said that the adjectives describing people's personalities in their reports are subjective objective that they could change on the fly and they said you can't judge the accuracy of the system by looking at one profile. They're also disputed. You did that. There are no vigorous. large-scale visas studies on the subject and pointed to a research article comparing computer judgments of personality to human judgments creating personality profiles with the help of. Ai Remains controversial. But John says that technology can help in a different way. He says one of the best ways to predict how well someone will do in a given job is to test them doing their job in a virtual reality simulator. How do you predict future behaviour? You create the future. You place the individual in that future and present them with a variety of challenges and see how they do against those challenges us so imagine instead of having an interview where you talk about how well you can do the job. The employer hands. You had said twenty of right into the deep end. You could take CNN applicant for a CEO save for a an energy company so one possible scenario is that they're holding strategy meeting and everybody in the room gets texts that there it has been a cyber attack on their nuclear plant. What are you going to do? How are you going to face that? And that's not just your stakeholders in your customers. It's the government that gets gets involved in that national security so you could set up a press conference have the individual present their ideas on how they're going to manage this John says this virtual virtual job simulation could be automatically scored by an algorithm just like video game. Technology could work for any job though you could see how you can scale back to new entry level jobs as well providing different sorts of challenges associated with their roles in immersive simulation kind of a way and and John says the tech wouldn't have to stop their companies could combine. The are based headsets with wearable technology. which could record a job? Candidates biometric metric data nervous and you hardest basing they had set would be able to detect that those sweaty palms registered eye contact measurable and all of that data about things citing stress. You feel will be used to assess how well you suited for the job. Since most of us have very control over our bodies we actions. This idea seems pretty controversial. A simple rule in my view is if the criteria or riveria bowls or fuck doors. You are trying to use for your decision whether to hire someone or not are completely out of somebody's control. It's probably not ethical. You get into areas where it may start to feel more like a medical test and you cannot use a medical test at the front door. For Selection election purposes an Illinois law takes effect this month requiring companies to notify job. Candidates may use AI based video interview tools And legislation mandating companies to inspect their algorithms for bias is under consideration in Congress so eventually lawsuits relations could put put the brakes on this new world of artificial intelligence and hiring that was reporter Milka shellman so technology may be revolutionizing the hiring process but it's also changing our workplace. Sometimes uh-huh getting your foot in the door is the easy part. Finding your way or work can be a lot more challenging just a few decades ago open offices came into play. They're supposed to break down down. Walls and hierarchies and encourage collaboration plus you could see where everyone was all the time but those assigned open office. Desks are giving way too on assigned desks quiet booths and community rooms where employees work at different times of day at the same time. Some offices are getting vigor a lot bigger. Well if you've ever walked in circles looking for a conference room or even the bathroom was an up. Tech startups have developed way finding APPS APPS to spare workers from getting lost at work but there are some trade offs like privacy. Our reporter Sara Solano's has more in in hospitals. A few minutes can mean the difference between life and death doctors. Nurses don't want to waste that time wandering around maze like corridors getting lost take the Jersey Shore University Medical Center. It's huge it. Covers about three million square feet for doctors like Ross. John a resident physician that means walking about two to three miles every day and each building has own like routes and directions so you might get lost so easily when you first came uh-huh here did you get lost so many times so I was finding hard times for the first couple months with finding my way out special for like outpatient patient setting the tap and so many times when I was like they call me like what are you at. That was like yeah. I'm still struggling finding out which elevate I should take doctor. John isn't getting having lost anymore. A few months ago a patient got sick in a wing of the hospital he had never been to. I was on the other side of the hostile and they have to be there and I just. It's never been to this place near there in three minutes three minutes and that was the first one got there. That's because Dr John was using an APP called Marinov. It's like Google Google maps but for hospitals. So you really literally holding your phone up and running through the hallway. The place that were telling you about was this way like you go right take clift and then. There's so many times that you have to make till you get there so without using there would be so hard rolled it out last year and it's not just for doctors. Doctors and nurses patients can also use it and there are staff workers like Ali our director of operations for parking services on hand to help them. So this is a HMO were standing at an. I'll just come here and I was just pushed resume and this kind of calibrates it to where you go Michael Straight there. You could have gotten very lost going to one one. One Room could end up in the lunchroom over there. There is a fork in Alabama and the OP doesn't just work for rooms it also lets doctors and other hospital staff search for equipment like the nearest wheelchair Gurney or IV pump. GO STRAIGHT FOR ABOUT THIRTY FIVE FEET turn list the many not op was created by startup called Mark Green. CEO of connection the abuses abuses small battery powered radio transmitters or beacons which transmit signals over Bluetooth from the hospital workers phone so it's actually the phone mobile device. Yes that's doing. All the calculations on taking advantage of the signals. It's receiving from those begins as well as some of the sensors on the phone like the compass and so forth and is able both of them position. Somebody within two or four feet of accuracy connects as one of several vendors making this kind of indoor navigation technology and workers workers and sprawling office campuses in companies as diverse as Exxon Mobil Aruba Networks Hewlett Packard enterprise and software maker. VM were are using them employers. Say these ops help employees find everything from conference rooms to restrooms and even the best routes to take to get there. Some APPs have an accessibility feature Peter and that can be helpful for people who have mobility issues and need to avoid stairs and the companies say. They're also clear security benefits both for employers lawyers and employees. They could use a workers location data to assist during emergencies. Like a fire or shooting and the OPS could also identify for worker. Worker has gone into an area where they don't have security clearance which means the OPS. Don't just help employees. They also track them and that brings up some major issues What if they're organizing with their labor union? What if they're meeting with the Labour leader that kind of tracking would be impermissible Samantha? Atari Hari is a lawyer at Kramer Levin who advises companies on Cybersecurity and data privacy. She says that exposing that data could violate worker protections and and could even result in some potentially embarrassing situations. You could think of scenarios where it could be very damaging so one could imagine imagine a situation where two employees ease are perhaps carrying on an amorous relationship but are married and would not want anyone to know that on every break they. They went to the same location every room day in day out year over year perhaps that data could if breached could somehow have implications on their home life as their personal life. And maybe not just their personal life in recent months a few companies have fired their CEO's for inappropriate workplace relationships so far far the companies say. They're not mandating that employees use these APPS and they only chuck workers while they're on company property. But there's no federal law that prevents employers from gathering and analysing worker location. Data and Samantha. Atari says there's another issue the trove of data could be ripe for cyber-attacks employees. The ease our right to be concerned as they should be with every vendor and application that collects their data what are the ramifications if the state is expose is because there is some chance at some point that it could be go straight for about thirty feet then turned right hospital operators that Run Jersey Shore University versity medical center say data generated from hospital staff using the meeting of is anonymous and can't be tied to a specific worker even if the data's breached and Dr John says he's not that concerned about data privacy issues some listeners and readers might wonder okay so you're using this location tracking up which which is great but that means my employer basically knows where I am at all times. Has that ever crossed your mind. Good question really. I you mean sharing sharing locations like somebody will know where you at right now. I don't think there's going to be a problem even if somebody no even if my employer Michalik will know I am exactly the hospital. I don't think this can be any issues and problem. It should be okay but for some workers occurs. It's not okay. Los Angeles began a pilot study of a way finding up twenty eighteen and some employees were worried about privacy. I talk to the person in charge of the program and even he admitted he wouldn't want his employer to know where he was every second of the day. Yeah that was our reporter Sara Castellanos so you get hired you work and at at sixty five. You have a big party and you retire right well. Maybe in an era when many big thinkers are lamenting the breakdown of our cultural institutions work is being floated as the new religion and columnist. John still has some thoughts about that. My financial planner and I do these annual asset reviews where we talk talk about fun stuff like my retirement savings. It took about six reviews to confront a big question. I spent my entire adult life socking away enough money so I could quit working by the time. I'm sixty five in my planner. His name is Joe. Wanted to know if I thought I'd even want to retire. It's a fair question. I'm a forty two year old writer with pretty engaging job being a journalist offers me travel opportunities intellectual challenge and lots of social connections. I've only got a few hobbies and I don't like to the sit still for very long. So Yeah Joe's right. My comfortable retirement may indeed more work than rest. Most people spend time wondering if they'll have the means means to retire but we often ignore the equally important question. Do we really have the will to retire. Our modern concepts of retirement Tirmizi forged around the Great Depression. The one starting in one thousand nine hundred eighty nine and lasting into the nineteen thirties. That's when social security was established as an insurance plan to pay guaranteed benefits benefit. Those who couldn't work after age sixty five at that time the majority of Americans who made it to adulthood could expect to live at least that long men eligible for social security typically drew benefits for almost thirteen years after that on average women a bit longer. By the time I was born in the late nineteen seventies sixty. I five was hardly considered elderly even if it fit to technical definition growing up in Michigan. We're automotive jobs. Disappearing and pensions were being taken away. The thirty year in out career in the car business was no longer automatic by the late. Nineteen Ninety S gold-plated retiree benefit plans were beginning to be phased out at the same time. Lifespans kept kept getting longer along with advancements in personal health today the average life expectancy in the US is seventy eight up from seventy one in one thousand nine hundred seventy. Aw consider my dad. He still sells cars three days a week at the dealership where he's been working for thirty years at age seventy four if there's a poster child for Sixty Z.. Being the new forty my dad's been candidate for quite some time to be sure. Many people do still leave the workforce by age sixty five but that's almost a luxury life insurance companies and pension funds are projecting that people entering the workforce right now could live to be one hundred twenty five and a popular demographer even says that the baby who will live to be two hundred years old has already been born. The government now considers sixty seven to be the official age of retirement for social security purposes and many economists arguing for an even even older threshold. So that the plan doesn't go broke. Americans aren't protesting in the streets about this in a recent survey by the TRANSAMERICA Center for retirement studies. Half of the more than sixty three hundred workers interviewed said. They didn't expect to retire before they turned sixty five. That's three times as many as nineteen ninety. Five and thirteen percent. said they'll never retire. That's especially true. For millennials. People who began reaching adult at the turn of the twentieth century. Aren't starting their careers with the end in mind. I talked to a lot of twenty. somethings thirty somethings who aren't yet planning for retirement. It's not because they're pessimistic or lazy for one. They may lack the resources. After racking up pilot student debt and two younger people are foremost among the Americans considering the lifelong benefits of work one twenty six year old I talked to for instance since expects to dice up his work life into twenty year increments potentially devoted to completely different areas of interest. He reckons take a sabbatical others. I talked to say they'll work work part-time or even go back to school later in life and it makes sense if you enter the workforce in the twenty twenties believing that you could very well be alive in the next century turns over. Shouldn't that shape. You probably think about planning your career or careers. I'm not in that category of people thinking I'll work until I die but I have no problem buying into this notion of working at least as long long as my father with five kids of my own under the age of fourteen I currently view my job is one of the responsibilities to tackle in the day at some point as my kids make their way into college. You can start careers. I reckon. I'll be able to revisit. Some of the professional goals that are currently out of reach their also benefits to sticking it out in the workforce. Of course you'll earn more if you work longer but you could also live more Boston. College research suggests even a few extra years of working beyond sixty five can extend lifespan and lower the risk of dementia depression and obesity. And there's another aspect the workplace is filling an emotional and even spiritual ovoid think of how often you've heard so and so having a work life or how many people talk about their work family. Many of the people I consider my closest friends are those icy and our midtown in Manhattan offices or people. I visit traveling report out stories or have standing lunch. Meetings with part of the reason for that is because people are working longer hours a half hour longer everyday redick compared to twelve years ago according to government data. US birth rates are falling and so as church membership. Our jobs are often taking the place. Once occupied by children religious it just institutions and community organisations so people want to stay in their jobs for the money for personal satisfaction and and to keep their social connections. Luckily that make it easier in the future partly because today is less well work working with computers on a smartphone or in some kind of artificial intelligence has replaced many of the manufacturing tasks or manual labor requirements that define the workplace. People have more gas left in the tank. Thank at the end of their careers. Don't tell employer but after twenty years of this journalism thing I feel like I'm just getting started. I use my brain a lot but like many Americans. I have the hands of typist artist. And not a tradesman. They're also technological developments. That will aid. In older workforce driverless cars could make commuting easier there will be more automated processes. This is that reduced physical or mental demands and there are an abundance of retraining programs being implemented at companies and employers are becoming more welcoming to their graying employs always one company. I talked to Patagonia calls employees entering the later stages of their careers elders and it offers them opportunities to stick around around on a so-called glide path. The company's longtime editor for instance has left her day to day role editing company materials and is now teaching younger charges. How to right in the Patagonia voice other spend time in the archive room at the company headquarters passing down stories traveling the world lecturing on the company's culture or conducting concessions on the environment? Okay so where does this all. Leave me I'm treating in worrying about whether I can retire at sixty five with a new strategy here it is. I'll pursue financial flexibility with JOE that financial planner. who asked me to think about whether I really want to call it quits instead? I want him to to advise me on how to achieve some wiggle room in my budget within the next quarter of a century by that point. I want to be able to do the work I like to do with the people. I like to work with on my own terms terms even if it means making a lot less money that was Wall Street Street Journal columnist. John Stole the future of everything is a production of the Wall Street Journal. This episode was reported by Hilton Shaman. Sarah Castellanos Lanos and John Stole. Jabeen is our senior producer. Stephanie Ilgenfritz is the editorial director of the future of everything and our technical director. Is Jacob. Gorski I'm Terry Yokum. Thanks for listening.
Moms Deserve a Little Financial Self Care
"This episode of answers is brought to you by td Ameritrade you have an investing style. Td AMERITRADE has a mobile APP to match it checkout td Ameritrade mobile and think or swim mobile to find the one. That's right for you. Is Molly Lancers? I'm Elson Southwick. Joint is always by Robert Douger. Great broke camp. I wrote joining us. This week is Chelsea Prenton. She's founder of the Blogs Smart Money Mamas and pro is going to give us some highlights from the Berkshire hathaway meeting all that and more on this week's episode of Molly Lancers Subroto. What's up well? We often begin by talking about what happened in the previous week. But since we just closed out April that's review what happened over the entire month and sweet cheese. It's what might it was really one for the record books both for good and for ill so each week. We all know we learned of millions. More Americans filing for unemployment benefits. Total tally now. Surpassing thirty million and that is most definitely an understatement and given the difficulty many people have had with filing for benefits April fifteenth the Federal Reserve announced that. Us manufacturing output contracted in March by the most in any month since nineteen forty seven and April. Twenty ninth we learned that first quarter. Gdp experienced its biggest decline since two thousand eight and the biggest drop services and consumer spending on record and most certainly second quarter GDP will be much worse. But you wouldn't know all that looking at the stock market the S&P five hundred returned twelve point eight percent in April its best monthly returns since nineteen eighty seven and the third best month for us large-cap stocks since World War Two so for the year which includes last Friday may first which was a slightly down day. The S&P five hundred is down twelve percent since one thousand nine hundred fifty. They've only been eleven times when the S&P five hundred returned more than ten percent in a single month according to Ryan Dietrick of LTL financial. What happened over the subsequent twelve months? Dietrich found that the index was higher in nine of those eleven times so that's encouraging for the next year. Smaller stocks did even better in April returning more than fourteen percent in fact starting on April. Twenty second the Russell. Two thousand index of small cap stocks went on a six-day streak of returning more than one percent in a single day in that has happened just in one other time in the index is history happened back in January of two thousand according to the bespoke investment group that said despite an excellent April small-cap stocks are still down more than twenty percent for the year as our international stocks. So that's what happened in April may kicked off with one of the biggest events of the investment calendar the Berkshire Hathaway annual meeting. Hey hurrah but instead of forty thousand people flocking to Omaha. Warren Buffett sat at a table in a near Empty Auditorium. Under did either of you watch it at all. It was kind of the surreal experience. Now I saw two seconds of it. I haven't gotten around to it but it is always. It still blows my mind. That forty thousand people go to Omaha just to maybe get a chance to see Warren Buffett. That's crazy and it's crazy that he can sit up there for that long and answer question after question after question now usually also joined by Charlie. Munger this year he was not instead he was joined by Greg able able. Who is the vice chairman in charge of all operate operate instead of Insurance? But it still went on for more than four hours. Wow I more than an hour was a presentation that he gave so I listened to the entire meeting. Impasse episodes I would. I've said that sort of my personal investing philosophy is be a short-term pessimist at a long-term optimist and that sorta seems to me was the message of the whole meeting so on the pessimistic side. They're clearly not doing anything you know. They've still kept most of their one hundred thirty billion in cash. He did not use the downturn as an opportunity to go on a buying spree. He essentially he likened previous downturns to train. That is slowing down. This time. He said we took the economic train off the tracks. And I don't know of any historical parallel in the range of possibilities on the economic side are still extraordinarily wide in other words. They're still sitting pat on what they're going to do. He also said quote. We have not done anything because we don't see anything that attractive to do. Heels actually spent a good deal of time talking about some of the past challenges and failings America's history so for example. He pointed out that. Despite the fact that we have a declaration of independence that claims that all men are created equal. When you look at the three point nine million people living in the original thirteen states and seven thousand nine hundred fifteen percent were slaves pointed out that during the civil war six percent of the male population between the ages of eighteen and sixty died. The twenty twenty equivalent of that would be four million deaths according to Warren Buffett and then it took one hundred thirty one years for women to have the right to vote at another sixty one years until a woman was appointed to the Supreme Court so we often talks about the long term success of America. He did spend a good bit of time talking about some of the things that we have not done so well. He spent a particular amount of time on going over the Great Depression I think partially because he was born in the middle of the Great Depression so he pointed out. It's September nine hundred twenty nine. The Dow was at three eighty one. Five hundred didn't exist back then so he just using the Dow and then in a little more than two months it was down forty nine percent to one ninety eight. You Move Ahead to August twenty ninth nineteen thirty. Which is the day before he was born. It was backed up to two forty so and it rebounded twenty percent. People have found that like okay. Stocks went down but there. They've gone back up back then. People were thinking that they were on the verge of the Great Depression. You go ahead less than two years to July thirty two. The Dow is down to forty one so from the peak went from three eighty one to forty one a decline of eighty nine percent and the Dow did not get back to its nineteen twenty nine peak until nineteen fifty four. Wow he did point out that people got dividends at back then. Dividends were higher but still price percentage the market was down for more than twenty years so buffet called the Great Depression a testing period. That caused some people that lose faith in America. I don't know if he was playing out to say like times ahead could be tougher than we think or just pointing out that America has seen worse times but regardless he says that anyone's going to lose faith in America that's a big mistake which brings us to his persistent message of being a long-term optimistic pointed out that despite all these challenges from seventeen eighty nine until today the wealth of the of the United States has grown five thousand percent and that's adjusted for inflation. He also pointed out that since the year he graduated from college in Nineteen Forty nine at the age of nineteen one dollar in the Dow has grown to one hundred dollars. So how do people benefit from what he calls the American miracle? Well as he often does and I think it's always interesting that he does this during the Berkshire hathaway annual meeting because it's an annual meeting of people who own individual stocks. He thinks the vast majority of people should just by an S. and P. Five Hundred Index Fund and. He mentioned that's what he does. That's what he has directed his will when he passes away swimming. He predeceased. His wife. Ninety percent of that wealth will go into an SAP hundred index fund. In fact one question asked about Berkshires underperformance as a stock. It's underperformed this year as well as the last decade a something. I know personally because I've owned Berkshire for more than a decade and he was basically said. I agree that that's an issue. He said that the truth is that I recommended. Sap Five Hundred Index Fund. To most people. And I happen to believe that Berkshire is about a solid is any single investment can be in terms of earning over time. But I would bet my life on whether we beat the sap five hundred over the next ten years so as always with buffet. It comes down to betting on America for the long term. But it's clearly means the long term to be like very long-term it mentioned the timeframe twenty to thirty years a couple of times the only truly positive thing he said about shorter timeframe at least that I can remember was in response to a question about whether Berkshire expect significant significant layoffs among its workforce which at this point. It employs almost four hundred thousand people in response. He said that some businesses will have to make adjustments. See's candies closed down. Nebraska Furniture Mart. Some of their factories may have issues. It's the funniest list of companies. I'm sorry Oh it's like it's very clean seas it's like what. Why Energy facturing? Yeah it's it's everything it's all these companies that you like. Yeah I think I've I think I've heard of Kim or have it at all. It's quite amazing. But well while he expects it some there will be have to be some layoffs. He doesn't expect them to be significant in that five years from now he expects Berkshire we'll be employing considerably more people so that to me says he expects five years from now. Things will fully recover and I think that's a reasonable timeframe. I certainly expected in five years. This time period will feel like somewhat of a distant memory. I certainly hope so But it's certainly possible that over the next year or two things could turn out to be pretty rocky and that is what's up this episode of Motley Fool. Answers is brought to you by. Td Ameritrade you know that feeling when you actually wake up early to hit the gym get the same sense of satisfaction when you roll over your old 401k with td. Ameritrade THEIR TEAM. A rollover specialists help handle the hassle even call your old provider. Get up to six hundred dollars when you roll over your old 401k into an IRA visit td. Ameritrade DOT COM slash rollover to learn about retirement plan alternatives and offer conditions and restrictions. Mother's Day is just around the corner and we're so excited to be joined today by Chelsea Brennan. She's the founder of Smart Money Mama's she's GonNa talk about how moms or anyone really can change how they think about money and turn it into an act of self care. Chelsea thanks for joining us. Alison thanks so much for having me. I'm excited to be here. Well we're excited to have you and I'd love to hear more though about you and your journey because you actually got you start on Wall Street before founding your blogs SMART MONEY. Mama's right I did so right out of college. I started as an equity analyst on Wall Street actually focusing on metals and mining companies of all random things and then after a few years there I transitioned to a hedge fund where I was for. Several years ended up taking out over my own portfolio. But this was always a first act career for me. I knew I wouldn't want to do forever. I wanted work with more purpose so right before my second child was born left to start smart money mamas and really connect more with the teaching that I love to do and helping parents feel more confident with their money because they feel like money is such a huge stress item for show many people. Yeah we know the stats. We've talked about before on the show but you know what let's talk about him again. We know that women tend to live longer than men. Meaning that they need more money saved for retirement. And then there's the wage gap and the fact that women tend to take time off work from work to raise kids and then all of these compounds resulting in women being less prepared for retirement having less savings According to a Transamerica Center for retirement studies Survey the median household retirement. Savings for women is just twenty. Three thousand compared to seventy six thousand among men both could improve that that women are falling farther behind men. Almost one third of women say they have saved less than ten thousand for retirement or nothing at all. Don't our moms deserve better? Oh my goodness absolutely and that same transamerica study talks about the fact that women think they need about half what men say they need for retirement so they bring that number down and whether that's to keep it realistic because they know they don't have the savings to begin with or they're just not appreciating the cost in the length of retirement and what it's GonNa take this is? This is a huge gap. And it's something that especially with divorce rates and the fact that most women outlive their spouses which has to know ramifications. One they need more money and two. They need to know how to manage their investments because they're ultimately going to have to do it on their own. Yeah your purpose statement at the top of your site says Mama's handling your money is a radical act of self care when I think of self care. The first thing that comes to mind is instagram hashtags for photos of wine. Glasses and cake and Silkair is important. But it's almost lost. Its meaning and kind of become a joke. To let stressed-out MOMS indulge in binging that legs or shopping or eating or drinking things we feel guilty about and I'm not judging because Injin is very important in my life especially right now. But what do you mean? When you're talking about money ending your money as a radical active self-care. Okay so most of our perspective on self care these days. At least what's put in you know the media Instagram Post. You're talking about their. Bandaids right there to take their to feel better in the moment when we're not taking care of ourselves in general and so when we talk about money self care we're saying if self care is really about reducing stress and anxiety bringing more joy into your life handling your money is going to take away one of the biggest items of stress on your list. It's GonNa let you afford more of the things that you want more those like instagram. Self-care things right. You can go over a massage without stressing out. You're putting it on your credit card and how you'RE GONNA pay for it down the road this is really about preparing for the future and Long-term Self-care. You say it's not black and white dollars and cents so aside from the fact that women make less than men and they live longer which is already setting us back here. Where do you see the real struggle? When it comes to women managing their money. I think the thing is that we think we can avoid the topic of money. We don't want to talk about it. It's stressful and we think okay we'll just pushed to the side but the fact of the matter is money touches every single area of our lives. We can't make a big life decision without in some way making a financial decision it impacts work. Go to school where they go to daycare. Where we live the jobs we take. Money is inherent in everything that we do and so much as we want to think about it as just math right if I could just figure out the math I could just figure out how to budget. It's more than that. There's an emotion there that is it ties into our sense of security and our sense of safety and so it's we have to look at it in a more holistic way. How money impacts our lives and our emotional relationship with money to be able to get where we WANNA go. Where do you see that moms? Need the most help when it comes from unendorse understanding their money. Is it our our most women just looking for help budgeting or are they looking for help with that mindset shift? Where are you seeing? The most help needed so I think the first thing is that mindset shift is where we see most often people need help but the first thing is understanding that there is a mindset problem right so exactly what we just a few minutes ago of that we want to put the band aid on it. We want it to be dollars. Incense is people come to us and they say like well. I just need to spend less on groceries. And it's like okay. You know that and you've tried to cut your grocery budget six different times. What's holding you back? Why do you keep going over? Wise is not important enough for you to stick to it and then we can connect them to like okay. There's habits involved here. There's mindset involved here you have moments in the past where food wasn't readily available right if your parents struggled when you're younger and so you keep over buying food because you just want to have more food in the cabinet right so we do the mindset thing first and then the second thing that we really find that women need help with is identifying and solidifying their goals and what they want their money to do for them and like getting out of that. Rut of the day-to-day monotony of what's going on patching the problems that are right in front of our faces and thinking about okay. What do we want retirements to look like? Where do we want to be in ten years? And once were clear on those things and we can set goals that excite us. It's a lot easier to think long term when you're just stuck in the moment changing those habits is really really hard. I have no idea what my goals are ten years or beyond and it's not just like our current trying times here but I think it is so easy for mom because we are. We have to be in the moment. We have to be a kid's pulling on US asking for snacks lovey. Hannah but you're always asking for snacks. you know. They're they're they're jumping off of couches and trying to hurt themselves there. I mean you. You have to be You have to. There's so many moments actually pulling you in every different direction. I think that's becoming more equal across men and women. It's definitely improved. But I think for for a lot of women it's still not an equally shared burden. Yeah and we don't like generalizing across genders as much but we have found just from our readers. Is that husbands. Seem to have an even harder time doing that dreaming and setting for the future even if you make time for it right because so much of their self worth in their mental state is around providing and when we feel like we have those conversations women come and say like Hey I have this big dream for ten years from now. It's one more stress item right even in cases where the woman is the breadwinner in the house. There's this stress in this tension around like okay. How do we get even more money? How do we afford even more things So those conversations we're big advocates of make it a moment of self care even in the traditional way like decide that okay Friday nights. We're going to put the kids to bed. We're going to light a couple candles. We're GONNA sit in the basement with our favorite drink and we're GONNA have this conversation right and we're GonNa talk about the dreaming we're GonNa talk about what went well this week. Not just where we slipped back and as you build that habit of like okay. This is actually a fun relaxing conversation and not a were bickering and arguing. Then it all gets easier. You talk about the importance of learning beyond budgeting and the importance of growing your wealth. Women are traditionally seen as savers not investors. Do you see this is true? Yeah I think that dollars in the bank is Unreal Comfort For Women and whether that's not being educated around investing in the first place or just knowing all the things that come up in life right like knowing that your kids are GonNa go out. Grow out of their clothes or MOM's going to need some help coming down the road. There is more concerned about having enough cash so going back to the TRANSAMERICA STUDY. Just fourteen percent of women frequently discussed saving investing in planning for retirement with friends and family and thirty two percent report. Never talking about money which is funny to me because women tend to connect to connect to each with each other and learn from each other. And so it's funny how I've like I think about the conversations that I've had with my girlfriend so to speak. We've talked about everything and everything but we've never talked about money like we never talk about What we're investing in or how we learned about something or refinance isn't that great and wonderful And so it is fascinating how the way that women tend to like to learn together by talking to each other and yet we're not talking about money with each at all. Why do you think We don't why is that? Why is that still do? It is really funny. There's some of those statistics that like women are far more comfortable talking about sex with their friends than they are talking about the money and so I think a lot of that is both a lack of self confidence in the subject right. We don't WanNa look like we don't know what we're doing and it's a sensitive subject. It's worrying about the pushback. Someone not wanting to talk about it and that when those conversations do happen there so often negative right. It's like I'm stuck. I can't afford this thing. I had another money fight with my spouse or whatever it is it's it's negative and so we want to avoid the topic completely what we've found in our community. Is that a lot of MOMS. WanNa talk about money. They just don't have the outlet and when you give them that safe space like hey. This is a bunch of women that we might not have it figured out right now but we are trying really hard and you can come here and you can complain. We will get. We have thousands of women that want to come. Have this conversations really quickly? What are the kind of conversations that they're having together so a lot of the conversations are around the slip backs in the journey right so once you sat like debt free or consumer debt free in two years or we want to save enough for our kids to go to college and then dealing with the blips right the well. We thought we'd planned for the month. And then we blew a tire. We needed some major maintenance on the house and now we're set backwards and I don't know how to keep going or you know I had this big idea and this big goal and I've been reading all about budgeting and investing and I'm excited to get started and I went and sat down with my spouse. He completely shut out. I think he was like I don't want to talk about this and so it's a lot of the struggles in getting that support. And then the other side the flip side of that is the big wins right. It's like I just paid off forty thousand dollars in debt in if I say that any of my friends one that's uncomfortable because it's a big amount of money and we don't WanNa feel like we're shaming our friends that are on this journey with us yet so it's having a place to be able to come and be lifted up in the positive moments since starting your site. What do you think has been the biggest change in your thinking when it comes to moms and money? I think the biggest change in my thinking since we started talking about this topic is how we think about goals and dreaming and what. We're willing to accept what we want and that we find a lot of women don't want to say they want to be wealthy or they say I want a million dollars so I can give to this charity right. There's no there's not that confidence in I want money because it makes me feel good and I can do fun things and sew embracing that that that can limit us to write that we we give more to charity before. We're even on our own feet because we feel like we have to be helpers and servers and some of that is is a upbringing and training right So we trade more about the if you can thrive. That's the best example. You can set for your kids right if they see a mom who has a career that she loves and she's succeeding and she's doing things that make her happy that gives them permission to go out and chase what they want So that's our biggest thing is making sure we're always encouraging people to think big beyond budgeting and living within your means making enough money. Seeing your money grow What about people who don't have a real love or interest in their money like is that that's okay. That's okay but they have a lover interest in something. There's something they want in life and likely it costs money and so. I don't care if you don't love crunching numbers in spreadsheets. It's not everybody's favorite thing to do most of. It's not but there is something that you really want that you can get excited about and figure out how to handle your money to deal with related to that when people heard those stats from the survey. I suppose many of us thought of women in our lives that maybe might be in trouble. Maybe don't have that interest and finance. Maybe are behind in some way. Maybe our our mothers our sisters. Our daughters friends. What would you say is a good way to help those people to to sort of get them a little bit more interested in maybe give them a helping hand to get them on that road? Yes so there's two strategies both of which work in this is going to depend on the women in Your Life. And how will you know them? Some of it is uplifting right. So there's there's an instagram post. We did a six months ago. That was like you're the only one who can give your child a thriving. Happy mom and that sparked like completely viral of people being like. Oh I've never thought about it that way before. I don't prioritize myself what example my setting so taking it that way of like. Hey I know you've talked about in the past that you really want to live on a lake someday. Like have you ever thought about what it's GonNa take you to do that. And and start from the positive perspective the other way that we actually have a lot of moms come into our system is not understanding. What happens if they don't plan so when we say that women are eighty percent more likely to live in poverty in retirement than men? That sometimes shock people into it. We come at it often from emergency planning perspective like. Hey if something happened to you what would happen to your kids like do you have. Do you have guardianship? Set up Do you have assets for them to pass on and and really get them into the planning and once they've done the basic planning than it's easier to transfer the next step because they've had to look at they've had to take a close look at what's actually set aside in their accounts for retirement and things like that But those are the two strategies and it really depends personality. Have to ask and see worked on Wall Street. And in a hedge fund he worked in the belly of the beast. What's your take at investing? Especially since you mentioned working with. I think you said mining companies that make you an investor in gold. Do you think that's something people should be doing of investing advice? Do you give so. We do a lot of investing advice. We stick very much to index fund investing and not stock picking. We've seen we've seen all the stats on how hard it is successfully stock. Pick right and that most women and most mahomes are busy. We don't WanNA spend time hours a week. Researching companies making sure picking the right thing rebalancing your portfolio and so for us. It's let's take the path of least resistance. Let's keep fees low. Let's make it so that you can automate this as much as possible in. Frankly that's what I do in my own life to. Gold is a whole thing for me like it has no intrinsic value so it's almost impossible to forecast the price of gold right. There's your interest rate forecasts and foreign exchange forecast in like it's so volatile so I don't. I don't invest in gold. I know that there's people that are high level investors do but we don't we don't really talk about like precious metal investing with our audience at all we stick very much like let's get you started. Let's make sure you're consistently investing and if you WANNA do more than that as people I can point you do so Chelsea on your website. You actually have workbooks financial wellness bundle since very action oriented curious on. What's your take in terms of getting people to do those things we've tried those things the motley fool a sort of like going to the gym right people sign up. Think I'm going to finally get in shape but then they don't often take advantage of it so I'm curious your your experience so far in getting people to sit down and do the nitty gritty of taking care of their finances. Yes so our biggest undertaking in in the financial wellness bundle. Is Our family emergency binder which is really laying out everything someone we need to know if you were incapacitated or gone right and so we talk about the fact that Oh will and a life insurance policy will Kendall some things. But they won't tell. Your spouse had to pay the Cable Bill. So that's a huge undertaking. That is a long document. And we'd have people when you buy it. It's broken down into chapters and tell people like we're going to email you one week 'til I sit down for an hour and do this thing and for that. It's really more of emotional. Poll of people being worried of what if I don't have this and there's actually an email in that sequence after we after we sell it says. Okay it's really good that you bought this but if someone in your if you pass away and someone in your family and it's blank they're gonNA lose their minds so you need to fill it out now that you bought it so some of it's that but everything else we keep it super bite size so even our courses are videos are five to ten minutes we break it down to small pieces and say like set aside ten minutes a day and like set a time on your own and no matter how busy you are. You've got ten minutes a day right like you can say you like. We're GONNA do it before you turn on Netflix. After the kids go to bed so we just try to keep things small because we do these big undertakings. We have the same experience. It's just too hard to fit in. I know two guys who went through the process of getting life insurance never finished. It didn't send in that side application. And they passed away. One was in his thirty s one was in his forties leaving their families at a significant financial disadvantage so and and one of the widows particular is pretty bitter about it because it would have changed their whole trajectory if he had just sent in the paperwork. That's the hardest thing is that that's your last your family's last memory of you. Whatever you set up or didn't set up and that can make it in credit. We have a neighbor that had the same experience except it was there will and so she was a single parent. She done her well. She just never had an executed. She passed away two year old daughter and it created so much chaos for them right of like who going to get guardianship and going through all those court. Thanks so definitely important to get it done. Well what do you do for self care other than managing your money? Do a few things for self care. I make sure I wake up every morning and meditate and go for a long walk on my own or with the boys if they happen to wake up early I just throw them in the stroller with a blanket. And I'll go for a walk Other thing is I love to draw doodle so I make some time every evening usually ten to fifteen minutes to do some kind of doodle and Kinda shut my brain down before bedtime bro. How about you what do you do for self care? Walk Walk Walk. I'm walking one to two hours a day. I don't know how I could survive this pandemic without the walking so I totally second to walking recommendation. Yeah Rick How about you? Don't have time for self care. I'm carrying too many others right now. That's right yeah all right. Chelsea I'm going to put you on the spot and have you close us with an inspiring message to all of our moms out there. My message for all moms become into mother's Day is that you have an incredible opportunity to create generational habits with money and all the stress. You felt as you came into adulthood of figuring this all out and feeling like no one ever taught you you. Don't you get to do it over with your kids? You can show them the things you didn't learn. You can speak to them about money in more positive ways. So they're not overcoming negative language. You have a ton of opportunity and so even if you feel like you're not the best with money now's the time to start learning even start learning with your kids and telling them. I don't know it right now but I'm GONNA FIGURE IT OUT. It'll instill that growth mindset and really leave them in a place that when they enter adulthood there in a stronger place. Uh Samantha. Website is smart. Money MAMA'S DOT COM Chelsea. Thank you so much for joining us. Thanks so much for having me all right before we go. How about a weekly recommendation for our listeners? I will go first. My recommendation is birdhouses week. Seoul okay so several years ago a couple years ago my husband and my daughter I said what did he want for Mother's Day or maybe it was my mother's Day and I said I want a bird house and so they got a birdhouse and they painted it. They did a lovely paint job. And it was a very special birdhouse. That was only big enough for Rennes and it took years and years and years but finally finally right this second there is a ren right outside my window building a nest in our birdhouse and I could not be more. Thrilled is so great that the birds keep getting little sticks. And I think it's maybe it's the same bird there are a couple. I don't know and they're they keep trying to keep flying with sticks and putting the sticks and the Bird House and now I don't know it's just really great. I'm losing my mind. Art No not at all because a bird had. Burt built a bird nest in-between a window and a window like a storm window in our house. The birds hatched mom kept feeding. The mom went away all but one of the baby. Birds escaped except one got trapped between the window and the storm were no and it kept. Slapping Leans. Couldn't get out so we're trying to figure out. How can we lift up the window and get it into a pillowcase? Wait right this second is flapping now. This is a this is yesterday because I was like. What are you doing? What are you doing right now? Go Save Bird. No go say bird. We're trying to get the window and get it without a flying into the house because then who knows our brave daughter Zoe put on a glove went in and actually grabbed it. Put it into pillowcase. Brought it out and set it free and it was. It was like the highlight of the day. I'm pro bird for sure. I'm pro bird to Yeah so we we think it's a house wren anyway. Just cute little brown bird so birdhouses check. Check them out cool. All kids are crazy about of needs. Days what's your recommendation right. So several episodes ago I said that instead of just listening to whatever podcast shows up on your podcast time line or whatever they call that search for something you want to learn about well now. My recommendation is searched for someone. You WanNa hear from so could be historical figure celebrity. Sports figure I am a World War. Two buff so I just searched on speeches by Winston Churchill and sure enough there are whole podcast devoted to great speeches in history. We are recording this on Star Wars Day may the fourth. I looked up. Can I find interviews with Carrie Fisher Mark Hamill Harrison Ford? They're all out there. So if you're just going to go for a walk looking for diverse take a long drive to the mountains. Every Saturday morning I take my two hour drive into the mountains. Choose a podcast. I think all right. Who would I like to hear from could be a great investor? God there's gotTa be many. Podcasts were Warren Buffett or Charlie Munger giving their wisdom. So that's one way to find a podcast that you'll be interested in well since everybody's been practicing their Ukulele and now writing songs. It's probably time to write a song in a different language. So the duo lingo APP and learn a new language. You just do a little bit every day. And before you know you'll be speaking Francais. I guess yeah actually. I did not use the APP to myself. I've used it. I use it to to do Spanish. And it's great like you. Do you just do a little bit every day. And so they do bits. Bits where it's like flash cards and you have to learn but then they also parts where you have to get back into the phone so that your phones like okay. Yeah you're pronunciation is okay or you got it. It's a great. It's a great APP. I really enjoyed it. Kids are using it. My niece used. She's an adult. She used it to learn Spanish. And now she's going to be tutoring my kids great now. I'll plus one. That recommendation of dueling go all right. Well that's the show. It is edited monolingual by engdahl word. Not Email is that full dot com for rubber broke camp. I'm also Southwick stafel everyone.
TMHS 346: Top 10 Healthy Travel Tips + Science-Based Reasons You Need To Travel More
"You are listening to the model health show with Shawn. Stevenson for more. Visit the model held show dot com. Welcome to the model held show this spending nutrition experts down Stevenson, I'm so grateful tweet tuning in with meet today on this episode. We're getting talking about something that adds to your character. Expand your worldview and as you'll see today has some surprising health benefits talking about travel. I am talking about traveling. And also this can be a sketchy situation. Sometimes we're going to be covering the top ten healthy travel tips, and some of the things that I've picked up over the years because I put in some sky miles. And this is definitely something that's had a huge impact on my life and something that for all of us. You know that we need to look forward to and do more often you're going to learn today. Why and also understand that he can come with some complications? Sometimes. So there's some crazy benefits you're gonna learn about. But also, we need to learn how to navigate. Our travel and get the most of it and be able to bring back good health through the process and really and be able to enjoy ourselves. And so for me, my travel experience was very very limited until they of twenty five was very first time that I even got onto an airplane. I was very isolated in my environment outside of some summers. When I will go to my grandmother's house, and she had moved from the city, which is where I lived with her when I was up until second grade was over and then she moved to the quote country with my grandfather back to where he grew up in. This is Piedmont, Missouri. And I know you're like, oh, yeah, Piedmont. No, you're not. You've never heard of Piedmont, Missouri is in the boot heels the country gravel road to get to their house. I believe there house. He looked like a cabin type deal, but it was like built over like a mobile home or something. I don't know. But, you know, bright, blue skies fishing. Hanging out in the rivers and the lakes over the summer and just the different life than what I was exposed to when I was living in the inner city. So that experience in of itself added so many dimensions to who. I am the person that's here with you today because I bet you would know I like me some country music. All right. I was raised on the trips down there. Four hour drive. Randy Travis are, right. Conway twitty. You can't forget about Dolly Parton REBA mcentire are right. But you might not know that in all of those things add different layers and textures to that tapestry or that collage of who I am. And so this is another reason it's important for us to travel because this allows for me in some form of fashion to be able to communicate at some level with different people and those experiences and having that time where I was out of my typical environment and put into a new environment ads against so much to our character. So getting back to my first cut to trip coming up when I was twenty five years old on the urging of my then girlfriend now wife now WI fi to we went to Miami. You know, it was like we we were both just come in, you know, college and all that stuff. And I was just not trying to do that. I didn't see the purpose. Why? I'm good where I am. But I wasn't good. I didn't know that. There was so much more than my little my little sphere. And even from there, jumping let's go outside of our our country and travel more because I don't know if you know this, but US citizens travel, the least to other countries international travel, then pretty much all other developed nations. Are we get into our little, you know, US our bus situation, we're missing out on so much culture and really expanding our worldview, and so that's something I want to encourage we what you're gonna learn today as well. So just within the last couple of weeks I've been from Saint Louis to Jamaica to Saint Louis again to New York City to Saint Louis again to LA to San Diego to San Francisco. Yes, it's been is been quite a bit. You know, I've been on the move, but at the same time of been able to absorb so much culture and so much. Reaction with people from different places, and it's really been remarkable. And you could probably see I don't know if you watch you YouTube. I got the beard. You know, I it's not well groomed right now, you know, as a result of being on the road, I'm gonna keep it for a little bit. Because I think this beard is at that. You know, some people might call it a Zadie beard, right? Might be that Zadie Zadie status beard. I dunno. It's not me saying it. All right, but shot out if you know if you know what I'm talking about. So just even the last couple of weeks. So what I want to share with you today is that? Even though this has massive value, which we're gonna dive right into there's some tactics that I've picked up that enabled me to maintain my health and being throughout all of my cloud, Hoppy all right now, listen to this. This is why in this episode. We're talking about science based reasons you need to travel more listen to this. There was a joint study from the global commission on aging and TransAmerica center for retirement. Studies revealed some fascinating data on the potential health benefits of traveling more often, according to the study women who vacationed at least twice a year had significantly less risk of having a heart attack or dying from heart failure compared to women who rarely vacation and travel right now what the men to what about the men in the same study men who did not take an annual vacation or shown to have a twenty percent higher. The risk of death from all causes and about a thirty percent greater risk of death from heart disease. Now, again, we're talking about health and wellness. This is the motto hell show, we're talking about all aspects of health, and what creates that model that template for us. You don't hear about travel and vacation when it comes to supporting your health. But this is something we add into that tapestry. We add into that formula for us once we get information like this because it should be pretty eyebrow. Raising right. Should be like what? Never. You know, and also taking this as an opportunity or an invitation to make some changes. But for me, I'm automatic. Like how how is it possible that we can see results like that from travel will obviously stress is going to be a huge component today. We're seeing over ninety percent of physician visits being for stress related illnesses. You know? So this is definitely a big player. We know that tends to be a stress reliever when we're vacationing and traveling and all that good stuff, but also on a more subtle level when we are in different environments where able to diversify our immune system inputs and on micro Buyum, right? We've been talking, of course, a lot about the microbiome here in the motto hell show for several years, and we'll put a couple recent ones. But are just absolute masterclasses and talking about the impact of our microbiome in the need to diversify a micro by on for you in the show notes. But that's. Is not what this episode is about Harry. So make sure to pop back check those out. But that's what travel does as well. Also our minds. Our minds are able to grow in adapting when we change our environments. This is one of the things that keep us younger and more vital. And it's even a hormone stressor, right? When we're getting outside of our normal daily routine. And we are literally forcing our minds to change and to create new connections. Right. And I love the statement from Jim quick when your body moves your brain grooves. All right. So when you're putting your body in different environments, even just through typical stuff exercise movement. But also putting your body in different situations in different places different environments. Your brain is creating new grooves and new neuro associations. And this is definitely one of those things that can help to keep us younger longer. Another study that recruited. Fifteen hundred women and published in the Wisconsin medical journal, uncovered that women who took annual vacations were less likely to suffer from depression and other mental health issues and subsequently these women on average had better relationships were less fatigued and enjoyed a higher quality of life. Wow. Really interesting stuff. But speaking of relationships what about that this traveling affect that a recent US travel survey conducted by edge research revealed that couples who frequently travelled together report higher levels of satisfaction in their relationship. I I can't get no satisfaction travel. All right travel. So I thought that was super fascinating. But listen to this couples who don't travel together in the same. Same study couples who don't travel together are twice as likely to report that their relationship problems. Don't seem to get resolved super fascinating. Why what is going on there is it the change of environment? Getting out of the daily, you know, taking the person for granted is that quality time together. These are all components. He's off components shared experiences. All things that add to your intimate relationships. But also, let's expand that in relationships. Other studies indicate that leisure activities with family such as travelling can increase a sense of connectedness between family members, including children and their parents. We all know this. We know this that traveling bonds us together, right? We see this reflected in move. These whether it's the great outdoors with John candy, whether it's girls trip, Jada Pinkett Smith and Queen Latifah or even Frodo with that ring, traveling with his crew at the end travelled together. Everybody was much closer. Well, hold on. Let me make this clear unless you've got a gallon in your group. All right is might be your significant other who's playing that Ghalem. It might be a friend. Who's just always doing the most right? You know, the gallon is like everybody wants to have the ferns arms. The dopp. So beware of the Gallup's. All right outside of the gallons. We've got this bonding that takes place gallons gonna throw himself off the cliff it, you know, melt with the ring or whatever, but as a totally different situation. All right. If you not visiting Novell Kino's, you don't got to worry about it. But just understanding that this is something to be proactive about with the people that you care about, you know, travel and experience new things because it's going to circle back and bring more health more wellbeing. More connectedness into your life right now. From there, we get into this just some there's so much data. Now that we see as as studies are being compiled looking at how does travel in getting into diverse cultures affect our health, but some travels are automatically more health supporting travels to like hike. I never thought of I don't want to hike. You know? I never thought about that. Why am I going to go somewhere to hike when I got to walk, you know, two miles to my bus stop every day because I had to all right actually had to do at some point. I know people have those stories of like, you know, I walked seven miles barefoot with, you know, wearing a toga to get to school every day. Right. There wasn't like that. But I mean, you know, it gets pretty snowy here, and I had to you know, I had to make it happen. But so some people are traveling for that experience, you know, hiking in in in climbing mountains and things like that and also skiing and exploring exotic locations, you know, you put in a lot. Miles when you're in a place like, you know in France and like going to different museums shots. Everybody listening in France big love to you guys as well. And we have that aspect, but other travels or little more complicated when it comes to maintaining your standards of health. Right. So maybe like have have you been on a cruise have have you? My goodness. Let me tell you. We had the phenomenal life cruise last year and just shot to everybody who was there. It was phenomenal. All right, outside of the fact of being on a boat in the middle of the ocean for me, personally, not my fav-. Are you? I can't just get up. Like, I'm gonna go to the store. I can't swim that far. Okay. You you're kind of trapped and the food that you got your guy. That's what you got. And we, you know, of course, like, you do the best you can abroad, some supplements by little, you know, am I my little special little coffee drinks and things like that. But at the end of the day, you're kinda subject to the environment. And so how do you traverse a situation like that and potentially come out of it healthier? And it was a really cool experience. Like, I never thought about like that is big screen to watch movies out on the deck. It was amazing basketball court. I couldn't believe when I saw it who you gonna play basketball on a boat. Full-court? All right. And but for me, it was still just like the equilibrium thing. You know? I I did not like the fact that I'm walking down the hallway and people are walking tours me, and we're all leaning like we didn't have our v eight today. Right. We're all lean into the side. They how's it going? You know, it's not normal. Right. And then when you get off the boat. Finally, like, you walk in sideways, you know, trying to get your stuff together. But anyways, certain conditions like that can be a little bit more difficult to navigate and we all go through this stuff. And I wanna number one encourage you to travel more. But also to give you these top ten health strategies. So that you can do this in a more healthful and life, affirming way. And so today, I'm gonna share some of my favorite things that I bring along with me, literally keep them in my book bag, many of them and strategies that I'm ploy and my top ten healthy travel tips. So we're gonna start with number one numeral. No, why would we start with number three? Okay. We start with number. One I number one, hydrate, hydrate hydrate. Let's just talk about if you're if you're jumping on a plane because for a lot of us. That's how we're traveling. All right. If we're going to another state or another country. The plane the plane you I don't know if you've ever seen fantasy island anybody who has it'd be like ours. Yes. So if you're on a plane, listen to this just being on a plane and taking that trip to whether it's a layover or your destination. It's one of the ways that immediately gets you dehydrated listen to this. Here's why the air you breathe on a plane actually comes from recirculated air and from the outside as well. As about a fifty fifty mix, and it can be a little bit shifted the pilot can change a little bit, depending on you know, trying to save fuel and all this stuff, but we don't need to get into that. Okay. But the air at that altitude the at has very little moisture one expert reported that you're flying in an environment where the relative humidity can be as low as ten percent, which is more than two times drier than the Sahara desert. All right. That's dry. Very very dry is pulling water from your body and your body's going through just every microseconds so many processes that are happening in a water medium in your body in that needs to get replaced right to flush out metabolic waste products. And to add fluid for everything from your synovium fluid to your to your brain to yours cerebral, spinal fluid to everything your blood. You know, your your entire body is really operating on a water medium. And so along flight can reduce your body's set point hydration level by easily like two percent, which you might be like, well, that's not a big deal with. You're not drinking water and hydrating yourself going through this experience that level of dehydration can be enough to damage your DNA. And that's not good, right? Your DNA is against printing out those copies of you, depending on whether what kind of copies are going to get printed is are they going to be mistakes too far more likely when when your hide? Trated? So some of the results that we can experience. On flights. And you might have had this happen. Reduced cognition. You know, reduce ability to have executive functions working, well problem solving social control decreased attention span increased irritability I've seen that before and also increase feelings of tiredness and fatigue. So a lot of times you might have just taken a flight, and it wasn't like a really stressful day or nothing like that. But you just feel more tired, and once you can really super hydrate your system immediately. You just feel like the energy is has been turned back on in your body. So that's a big takeaway for this one is to hydrate hydrate hydrate when you're traveling, especially if you're flying not release specially every situation matters. But this is something as pay a little bit more special attention to and you know, if you have enlisted this episode, I did a masterclass on hydration and water that would change your life. All right. And we'll put in the show notes for you. If you happened to missed it. We've had seen close to a million people have checked up episode that episode out and it's super important. It's just important stuff. Because again, we are water based being and to find all the different things at waters responsible for and how to find the very best water, but things have changed for me, personally, even since then because knowing what I know about water, I became a little bit of a water snot. Okay. I became a little bit of jasmine guy on a different world a little bit of a a correlative Ville, even all right about the war. Water. Just because I know, you know, if we're dealing with water bottle in plastic and that water is a universal solvent. And plastic photo degrades it's constantly breaking down in water being a solvent. It integrates with those compounds that are being released from that plastic, and it's literally creating like a plastic tea, which one of the big things we see that. We have a lot of data about is BPA bright bist when all a which is a known Zeno estrogen that has been found to attach to estrogen receptor sites and the human body in turn on programs that estrogen controls that might not be good, right? All of that. So I I went on a situation. So here's a. Many years ago. This is before the the birthing of the model show us doing clinical work, I'll still working as a strength conditioning coach, and you know, doing my work as as nutritionist, but I was speaking a lot, and I was invited to speak at a teddy vent in Las Vegas, right? And my wife, so this was over eight years ago somewhere around that she was pregnant with my son. Brayden okay. I think she's maybe around five months, and so we went out there. It was fun time. Funny van and when we were coming back because at the time, listen even that long ago, I'm still on the penny pinching side, not really understanding the value of investing in and traveling traveling the way that I want to and and comfortably dollars. So so I had Hooker. All right. We got a a family member who is the the godmother of my son. Who works for the airline. Okay. Shoutout to June. I saw so raw food chef shot at June. And so she got us a standby passes right now. Sounds all good. Oh, we get the fry. Fly for free. Okay. Sign me up. No. You are standing by to see if there are seats available is. So it was easy getting there like we'd literally on flight. And I thought standby was the greatest thing ever now getting back and going through that Las Vegas airport. First of all can get on the first flight, which was troubling. It would self and outside of that. They're like, well, you can't get on the plane, sir. Because I was like, you know, I had my joggers on you know, t-shirt com. Fi. I'm I'm calm. I'm going to be comfy like no, you have to have on proper attire. And so because you're standby you're representing of the company now, which nobody's gonna come around to my scene. Be like, hey, you must represent the airline. No. It's just one weird little thing that they had and they were just giving me a hard time about. So I need to have on some dress pants or khakis or something. Like that collared shirt just to get on the plane. I don't have that stuff with me. Okay. First of all, it's not my vibe. All right. So in order to get this next flight that was leaving in like thirty minutes I had to find some clothes somewhere airport. And so I remember we walk past a PGA store. And so this airport was huge. You gotta take like two shuttles. Okay. Like, the airport trams or whatever. So I got on. There got over you know, she was waiting for me. Because so for whatever reason she had on so maternity khaki pants, which she never wears. She's never worn since my wife is never worn khaki anything, but she just happened to have mall. So she was all good. So jumped on went to the PJ store, gummy the khakis the collar shirt, and you know, through this stuff on and I just. I just wanted to punch myself in the jugular like the way that I looked. I didn't like it. I didn't like me when I saw myself. Right. But I got back. I was like, okay. I got dressed like you want. And so they're like cool. You're you're clear to to get on. The next flight next flight was full and we end up spending the night in another city because the there was a plane that took us to another city, and then we spend the night there. And then we can go home in the morning. And so that was not fun. But while through all this whole process because they didn't have the quality water that I wanted. I didn't drink. Okay. Even when we got to that hotel that we stayed overnight. I didn't drink. You know, we weren't by any kind of stores or anything like that. And so I was just going to just not drink and beat the hydrated. What is that going to do that is going to break my body down that is a situation where it's just silly to be neurotic like that drink some water? That's in a plastic bottle. It's better than nothing. And here's a great thing about your body. Your body will preferentially choose the higher quality stuff, especially when it comes to water. It will displace water that is old and used and even lower lower tier and replace it with the new stuff. That's what it will do. And so don't be like me, the old me and be super neurotic about it. We do need to be educated about water and make the best choices where we can. But the most important thing is to drink some clean water. Even if it is coming and not the best form that you want. All right. So I want to share that story with you that we all make mistakes, we all grow. We all learned from stuff because I cannot believe that I did it to myself, and I felt terrible. I felt terrible in already going through this situation. Dress like our stressed, and then you know, being dehydrated like that. It's just silly. Just absolutely silly. So number one, hydrate hydrate hydrate keep that bottle with you even here. I'm collect I got this bottle from Jamaica, you see this if you can see the video as lives like designed by you saying bolt here. I must stainless steel bottle. Keep the bottle with you because you're far more likely to drink water of some let me get a sip right here live. This is happening. Commercial right there. It's far more likely that you're gonna drink when you have the bottle with you. All right moving on skit back to our list here. We've got a top ten healthy travel. Tips be proactive with hydration it is number one. It's number one four reason as we wanted number two now number two is going to be prefaced. And I'm going to share a study with you from books leap smarter, which I have here and going to crack this open as the teachers of old when they would have gathered around to hear a tra- tease and share this with you directly from the book to listen to this a study on what happens to your intestinal flora due to irregular sleep patterns was published in the journal cell, researchers discovered that your circadian timing system. Influences your 'Bacterial balance common experiences like jetlag were enough to create bacterial despite Llosa's in the gut which in turn leads to metabolic. Orders in this study, researchers analyzed fecal samples from people before during and after bouts of jetlag from a ten hour flight spanning multiple times zones. They found that the jetlagged participants showed an increase in type of bacteria known to be more prevalent and people with obesity and diabetes. Then the levels of these microbes drop back to normal once the travelers got back on a regular sleep cycle. It's been found that your gut bacteria also have circadian timing system. And there's a virtual quote changing of the guard in quote that happens every night to help keep the good guys in control of your vessel. If you don't sleep or don't sleep. Well, then it gives the opportunistic bacteria a chance to take over your gut and thus your brain. So that's from sleep smarter that is chapter seven. And this study's super fascinating showing that are microbiome changes just from irregular sleep patterns and changing time zones from something like a long flight right are bacteria, which we know today? We've talked about this many times on the show are microbiome has a huge influence on our health. And literally seeing that the microbiome cascade that we see in folks who were battling with diabetes, for example. Are even if you're a healthy individual will shift and become more like that and start the expression of certain genes from those specific bacteria that are becoming more empower, and it can be a slippery slope. So we want to make sure that we're supporting our gastrointestinal help specifically when we're traveling is super important. So folks tend to get sick and things like that a big part of it is the gastrointestinal track having this kind of weird dysregulation. So we'll talk a little bit more about sleep in that component in a moment. But I wanna talk about fibber, okay, fiber. All right, fiber, super important for us to focus on when we're traveling making sure we're getting plenty of these various fibers, and according to a recent guest that we had on the show, Dr Alan christianson, there's like over a dozen different types of plant fibers that we need for our diversity of microbiome in many of. There were missing out on. But bottom line is we need to make sure that we're proactively seeking out these fibres to make sure that we're keeping our gastrointestinal tract nice and happy specifically the good pro by probiotic friendly flora need resistant, starches all right resistant starches so this can come in the form of supplement. So I'll even take a prebiotics supplement when I'm traveling. But also, we'll see, you know, adding in foods like Jerusalem, artichoke raw onions, and garlic and the various plant fibers. We might find him just green vegetables and things of that nature, and even as Dr Alan critising missed mentioned, green bananas is a great source of resistant starch. So there's many different types of you know, beans and that are prepared properly. If possible we need to make sure proactively getting this in support that microbiome shift as we're traveling. And also, of course, the hydro. Aspect helps here too because without that hydration. Those plant fibers are not going to be moving and sweeping through and doing their jobs. Feeding the friendly flora and allowing them to create things like these short chain fatty acids that helped to protect your gut and also helped her even protect your brain. And so this is something that I want to put on the list and to be proactive in conscious about were traveling by this is a huge tip is making sure that we're getting plenty of fiber when we travel number three hundred lists and something that I keep in my backpack, right Dora. The explorer has her backpack, I have mine. Okay. I don't have map. I don't have the map because I you know door didn't have an iphone. But I do have my, you know, my superhero equipment. You know what I'm saying? So I have for me I travel with enzyme so number three analysts take some enzymes, right, digestive enzymes. Now, the reason I say this. Typically, when I travel was that, you might have a tendency to experiment. Try new foods eat things that you normally wouldn't eat. Let's give your digestion little bit of a systens. Because for example, if you trying a cuisine that is the the cultural thing where you are. And you want experience a culture, but it has some dairy in it, and for you, if you have, you know, even like a bite of dairy everybody has to clear the room. All right because it's smelling like, rotten eggs and childhood trauma up in there. You know? So you got to be mindful of that if you've got issues with dairy. What can you do lactase enzyme can help you digest the lactose that you find endearing the tens across people the most problems and also Amway's and glucose Amway's can help you to better digest grains, for example. So again, you might have your protocol that you're doing when you can manage our environment. But when you travel things can be different. So those are just a couple of the enzymes that are found in a product that I really love which is digest tech from on it the reason I love them is they also not just the digestive enzymes that help to digest your food and break down those food particles. But also it helps to fortify boost your digestive fire because of having things like peps in ginger and their capsules as well. And it's super easy to travel with because they are capsules definitely check it out. You can add this to your travel superhero utility belt. It's on it dot com for slash model. That's oh in IT dot com for slash model and just go to supplements category. It's right there. All right. Digest tech, definitely one of my travel essentials. So that is number three on our list. Take some enzymes, especially if you eating some questionable food. You don't know how your body's gonna react can really be helpful in stave off. Some problems are number four hundred list is staying in the same. Lane as the things we've talked about to take care and protect and fortify your micro bio, which is number four is to get some friendly ferment. All right. One of the first things that I do, you know when I hop off the plane if at all possible, you know, I'll go to a whole foods or health food store or something like that. If I have the opportunity, you know, whichever city I might be in and I get myself fermented food, or for minted beverage just take back with me to, you know, might be the Airbnb or to the hotel wherever you might be a super easy for the beverages today there, so many, you know, when I started doing this and started travelling heavily Khumbu show was hot. But that's pretty much the only option we had in typical yogurt now, they've got you. You don't do well with the with the dairy which for a lot of people that can't really digest dairy. Well yogurt isn't a problem. Because a lot of that milk sugar has been kind of consumed digested by the bacteria, but not saying for you to if if you're not doing the dairy thing. It's all good. You know, they have different ones with your based on coconut yogurt and things of that nature. So different options. Choose from. We've got Kiefer's we've got obviously the fermented veggies sauerkraut kimchi pickles. All right, pickles are also permitted food is well, you know, but you wanna get the good stuff if if at all possible, and so literally like out you get a jar of sauerkraut and the next day with breakfast. I'll have a serving of that I might even order food from the hotel might be room service. But I got my addition to it make sure I'm getting that the friendly friendly flora for my digest, my digestion, and to help support my micro bio in its changed from being in a different location. All right. So number four on the list is very simple very specific. But are you doing it? Get yourself some friendly ferment when you are traveling. All right number five on our list in this one is super important because this is a game changer when we're traveling. Number five is to set up your sleep sanctuary. I set up your sleep sanctuary. I wrote a book on sleep wellness cost leap smarter, which I hope that you have a copy audio book e book, the physical book, whatever might be if you don't have smarter. This is like an essential part of your library. So make sure to check it out. If you haven't already get anywhere books are sold Amazon Barnes and noble. All that. Good stuff. I but make sure check it out. Audible shouted the audible, but here's the thing traveling and not being in your controllable environment. It can be it can definitely be curveball. So proactively in me having these experiences, you know might go to you know, place where I'm staying in is just like major lights outside and they're just shining through the little crappy blinds that they might have. So what do you do? Right. So set up your sleep sanctuary. Be proactive knowing that hey are. Be prepared. And so here's one of the things that I do when I travel actually bring some construction tape with me. All right. So it's like that you use for if somebody's painting right to like guard, the the edges, and like, you know, to tape plastic to the carpet and things like that. So I'll take tape in my in my bag, and I'll put tape covering over these sources of quote, light pollution that might be in my room. So what does that look like a one time I stayed at a hotel, and you know, they've got the fire alarm, and that's cool. I want this good at that. The light was so big it eliminated my room. Like, I was getting beamed up into a spaceship all night. It was crazy. So little piece of tape covered. A light Dany little piece problem solved. All right. Same thing. It could be you know, the the light from the television monitor. When you know when it's off this beaming, light, or whatever the case might be spring a little bit of tape and another situation that might happen. And this is this might be that super neurotic thing that, you know, ten years from now we're talking about I'm like, well, you know, back in the day. I did this. But I do this now, and I just did it for my son, we stayed at a Airbnb in LA and his door to his room led directly outside the door was like a cloudy glass door. And so all night, he had the light just shining into his room from outside, you know, streetlight, and I didn't know he told me the next day. And so we grabbed some aluminum foil and just put it up over the the door put up over the glass. You know, we use the tape that I travel with put up over the glass and black his room out now for some of us might be like well that is a little bit much. Listen Cornell, University did a study and they took the test subject and put them into an otherwise dark room. And they shine the light just the size of a quarter fiber optic cable behind their knee and that was enough to disrupt their sleep cycle. All right, light pollution is is a real thing. We're gonna be talking more and more about because that light is beaming on you all night is unnatural lights. Artificial light is throwing off your body's circadian rhythm. And it's definitely going to affect how well rested. You are and enabling your body to go through it's normal sleep cycles. Right. So it's not just some crazy thing. And it's just a simple simple fix aluminum foil. Boom, take that up. We're done, you know. So it might be a window. It might be a full door. Like, it was in my son's case in took us all of three minutes to to do that. And he slept so much better the next night. I so having those little tools in your superhero utility Bill. Also, you know, maybe it's a, you know, a role of ital- under the door, especially if you're staying at a hotel that lichen just be beaming into your room roll up a towel put right there. All right. You know, some people do that. Because they're you know, smoking on the Hannah. You know, they might be doing some stuff. We do it for better sleep. Okay. I so that's number five set up your sleeve sanctuary and this can include your typical sleep routine factors. You know, having your good book or your podcast, your magnesium, whatever it might be set up your your environment. So that it can help you to naturally transition into great sleep. Right. Be supportive of that. And so I even look for that stuff, you know, with different hotels or Airbnb, you know, what what was the was that curtain situation. Looking like, all right. Oh, not super neurotic about it. But if I can even take the towel if I need to if there's like coming in from the top of the curtain, just roll batali stick it up there right in my room is dark as I can I so that's number five on our list is to set up your sleep sanctuary because supporting your sleep wellness as we talked about that study is going to support your microbiome. It's going to support your energy levels, protecting your immune system. Right. It's one of the biggest issues with our municipal getting hit is due to sleep deprivation are so number six on our list stays supportive of number five and supporting our sleep wellness, and this is bringing along something on the nutrition side to support your sleep. And so for me, especially when I'm changing time zones. I want to help to get my body adapted to the new time zone as swiftly and gracefully as possible. And for that, I'm a big fan of situational occasional melatonin supplementation. Now, am ibooks smarter. So I'm gonna refer back to that. This is something you've got to be careful with when we're talking about melatonin. It can be really really helpful or it can be a problem. So listen to this. There was a study published in the journal of biological rhythms. The discovered that faulty timing are large doses of melatonin can cause desensitization of melatonin receptors is. Essentially, you can start shutting down your body's ability to even use melatonin at all not good. Not good melatonin isn't just about regulating sleep. It's regulating your entire biological clock. It's also very powerful anti-cancer hormone, and it's also involved in fat oxidation. So literally burning fat and the list goes on and on. It's not just one thing but a super important for your sleep quality. And if we're haphazardly taking melatonin all the time, that's not. It's not okay. And also if it's in larger amounts small microdosing consistently. Okay. But I'm much rather use in spot situations. So for me changing time zones. I have my spray -able melatonin from on it, which is you know, the using earth grown nutrients and sources for making all of their supplements. So that's why I really loved them is super easy to travel with his well, and plus by being it's a spray -able, and in that liquid form it's much easier. To absorb especially if it's sub languidly under your tongue. You know, you've got receptors there that can just kind of get into your system a little bit faster, so melatonin and or something else, you know. So it might not be melatonin for me all the time. It might be bringing along some reshi tea or might be some Magni Ziam, you know, which I travel with that topical magnesium in our my be user oral supplement of magnesium. But something to help my body to get a justed to travel. Right. So I highly encourage you to do the same thing. These little things can really help for you to stay healthy into a joy experience a little bit more by doing something really small and simple like doing a little supplementation to support your sleep number seven on our list. Listen to this number seven is. Poop like a boss, right? Poop like a boss. I know you wasn't expecting that. But this is one of the top ten here. And this goes back to support in the the digestive system in in our overall, you know, microbiome in our overall digestive wellness when we travel a lot of folks get constipated, right because you know, it's called being regular, but that pattern that cycle can get thrown off a little bit. So doing our thing with the the increase fiber, the hydration getting those ferment those are all going to help. But we also want to make sure that we're getting ourselves in the right position. Okay. Did I tire episode dedicated to this and talking about the Squatty potty? All right. And so I've got Squatty potty is in all the rooms in my house. I've given it as gifts probably more than any other gifts that have given because of the crazy science behind it. You know, just this the pupil rectus muscle and just not. Being in a in a squatting position. When we go to the bathroom when we do the the do. So the number to it does not allow for complete elimination and we see improved bowel function reduce rates of diseases of issues with diverticulitis and things like that. When people are able to get in the right position. So this is just putting your feet up. You it's you know, you just slide it in and out on a normal standard toilet, and it puts you in their proper position. But what about when you travel? Well, we have a porta Squatty. So it's a travel version of the Squatty potty. And man, I love it so much it's super easy. Like literally, I have two of them. And I keep one in my suitcase because I don't want to forget it again went it was a while back. But I forgot it. And then next thing, you know, you're you're trying to figure out what to do you making a makeshift because you're so used to that. And it's just better see like flipping over little trash cans and stuff and trying to get. It's just not the same. It's not fun. So I keep it in. My suitcase what I'm pack, and there's another one my son keeps his well. Because literally when we get there to the hotel, the Airbnb, you know, somebody got he's a bathroom. So my son. He's just like do you have the Squatty potty? Nobody wants to go without it. Now, the little guy or my older son, either or my wife, you know, none of us wanna go drop the kids off at the pool without Squatty potty. All right. So highly highly encourage you to get yourself a porta Squatty for me from my experience travel. Essential travel. Essential. You could check that out. It's Squatty potty dot com for slash model. I do get a discount from my audience over there. So it's S Q U ATT Y P O T T Y dot com for slash model. Get yourself a Squatty potty like yesterday. If you don't have a Squatty potty. Listen to the episode. It'll just blow your mind. Okay. It'll blow your mind so Squatty potty dot com slash model. And the porter Squatty when you travel super good idea. It's a newer release Squatty potty like they were on shark tank and just the company just blew up. Maybe that's not a good analogy. Never mind never mind. The company did really really well. And it's helping people feel better and have better digestive health all over the world. All right. So this move on. So that's number seven moving onto number eight number eight is too specifically fortify your immune system with nutritional insurance. Did you know that when you're flying when you're in a aircraft one of the most significant things that our body is is exposed to is actually radiation. So we're talking like cosmic radiation from outside our atmosphere. We're getting closer and getting exposed to that. And. Kind of put this in context, this is because at high altitudes the air actually gets thinner and the further you go from the earth surface, the fewer molecules of gas. There are per value of space and this thinner air with fewer molecules is now unable to deflect as many of these incoming cosmic rays, which is this radiation from outer space, and so without this atmospheric shielding and just having less of it. There is a lot more exposure to radiation. It's just automatic. And so researchers at the university of California San Francisco published a study in the journal of the American Medical Association dermatology finding that pilots flying for just one hour at three thousand feet altitude received the same amount of UV radiation through the cockpit window as they would from twenty minutes in a very strong tanning bed. All right that radiation is just hitting you up in radiation. Here's the issue is that. Number one. It can damage your DNA. Suppresses your immune system. And also, it can even damage your telomeres, and your telomeres are the end caps on your chromosomes is the greatest biological marker. We have for how long you're going to live. He can short in those bad, boys. In fact, a twenty fifteen study published in frontiers in college, I found that radiation directly impacts and causes dysfunction in our telomere function. All right. So. We have to be mindful of this. We have to be mindful of this again, we don't need to be neurotic because we're gonna be flying. We're we're just seeing the beginnings of what we're going to do as far as aviation, and you know in travel and things like that. It's just becoming more and more more. But what can we do to give our bodies us a little bit of extra insurance defense? Listen to this. There was a scientific review published in the journal of applied psychology on the benefits of spirit, Lena. And it stays that. Many studies suggest several therapeutic effects spirulina ranging from reduction of cholesterol and cancer to enhancing the immune system. Increasing intestinal lactobacillus by reducing toxicity by heavy metals and radiation protection. It's one of those foods that has he's remarkable capacities to protect us in different ways. So spare lean is one of my favorite things ever it seventy percent protein by weight and super rich in B-vitamins in natural source of iodine, which is great for supporting your thyroid health and also FICO Syon, this rare rare compound it's only seen in a few foods FICO Sinan that's been found in studies to promote stem cell Genesis, which was later the creation of new stem cells. So that's one aspect of it. Also, the core feel content in there as whites such a deep green color is chlorophyll appears to be one of the most effective nutritional means to protect your body from radiation in of itself. It's kind of like how plants are green plants are dealing with radiation themselves. It's like this medicine, or this kind of an antidote in a sense in dealing with radiation. So. That's one component that we have in organic size. Green juice is spirulina is one of the aspects of the formula. They have also in there as Clara, which is the highest chlorophyll source food that we know about that's in there as well. And it tastes good. So another thing that I travel with that. I keep in my bag at all times are the organic fi green juice go packs, and the reason that I use organic by green juice formula versus there's a lot of different green juice blends on the market or green SuperFood kind of concentrates, but they do a low temperature processing. So we actually retain a lot of the nutrients in there and the formula tastes good. So far on the plane. I could hand went to my son open it up. He poured into his bottle. And he's all good. He's wanna. And I wanna have this greens gross. It it actually tastes really good. You know, has this really great. It just makes you feel clean as well. You know, it's just really really awesome product and highly recommend checking that out for your travels throw some organic by go packs as nutritional insurance into your bag, whether you're flying or not you're going to get your nutritional bases covered as a supplement. Because of course, we wanted to continue real food. But this is where things like this come into play. All right because far better than these in Vetik so-called, multivitamins that aren't even real food sources of the nutrients, we think we're giving right food has it. But also, it has the array and the the the bio constituents, you know, the co factors that help your body to use an absorbent better because it's from real food are so that's organic fide dot com for slash model for twenty percent off their green juice formulas O R G A N. I F R dot com. For slash model. Get twenty percents off. So definitely check that out. I wear number nine on a list of the top ten healthy travel tips and number nine is to proactively search seek out healthy restaurants in your area. All right prior to having all this information on our phones, we would go to like, you know, go to Google and try to map out we use a mapquest. You remember mapquest you print it out what even before mapquest? You remember maps come on now? Now, we got all our phone such a gift, you can literally put in the key words, you know, if you've got maps on iphone, for example, healthy restaurants, you know, or you, of course, you go to Google healthy restaurants near me, right or you can put in the keywords like organic farm to table grass-fed vegetarian. Whatever it is that you're looking for and it can give you. Immediately a list of different options that you could check out. All right. So be proactive at that. You don't have to be at the mercy of, you know, I'm at this place. And I don't know what to eat. So, you know, just whatever we'll see what happens just use your phone. Simple search. So that's what we do. We literally if the kids are wanting to do some burgers, we want to get the best quality that there is, you know, so you could type in if it's vegetarian burgers or grass fed burgers. And you're gonna get a list from, you know, a lot of different places in the US and also different places outside the US. Now are kind of catering to that. Because we've changed the game. You know, you and me and the rest of us who are really being proactive and making decisions about the quality of food that we're eating our forcing change in. How stuff is done in our culture, and I'm super proud of that. And so just doing a simple search and also in this process, even if you don't have access to the very best food. Make sure you get your two servings of. About this many times, this is incredibly important in maintaining our health of we're looking at the digestive support side, but also Chicago's rush University Medical Center found that people who eat just two servings of green leafy vegetables each day, experienced fewer memory problems and cognitive decline compared to people who rarely eat green vegetables. And they found on average folks who he two servings a day of green vegetables have brains that are roughly eleven years younger simply by doing that one health practice, so whether it's lunch, or, you know, even from our breakfast, when I'm traveling if it's a hotel, and I'm just ordering up a lot of times, you know, you can get a cage free omelette, if you if you want is pretty standard out there now, but I'll say, hey, I like to get a side of sauteed spinach, and because right there if it's on the ingredients of what can be added to an omelette, they've got the spinach and just ask, and, you know, with spinach, for example, be we're talking about getting two servings and entire jumbo box of spinach have you ever cooked spinach. Are you take all this spinach? And you cook it huge box and ends up being like a teaspoon of spinach. Right. It's a little baby spoon all that spinach and turn into a little baby spoon. All right. It's super easy to get. Those two servings is what I'm trying to say. All right. So number nine are a healthy travel tips. Search for restaurants in your area, you could do this before or during the trip. You know, once you get there and make sure that you are are looking for restaurants that have your standards and make sure you're getting your two servings of green leafy vegetables in each day. No matter what your one target everything else. Do you just do that one thing for me? Those two servings in a right number ten on our list, and this one is super important as well. Number ten is to get your body organized get your body organiz specifically after long car rides and especially flights. So what do I mean by this being on a flight can really throw off your body's mechanics? Typically, we see a back. A position where we're not in a natural position for our spine. And we can be sitting in the standard seats on a flight, and it can loot you can lose your L curve. He right. The the lumbar curve of your lower back. Right. That's gonna get lost. When you're sitting on a typical airplane seats. And also, we can see the propensity that's called flat back syndrome, by the way, flat back syndrome that can come up with better name. But that's what it is. And we also see Kyko sus. Right. When you sit in those chairs your shoulders start to lean forward. And you got the flat back. I'm just looking like a mess right now. Okay. I'm looking if he can see the camera. I'm looking like Quasimodo, all right? Right. Like, I'm flexing, but never mind so be aware of this. Right. This guy foces and also flat back syndrome with this can lead to your muscles literally turning off and increasing the risk of low back problems. So what do we do on the flight itself? I found a couple of hacks one of them is supporting that L curve by just rolling up. Maybe it's a blanket. Or maybe if you some flights might have a pillow or even taking a jacket just roll it up and stick it right there behind your lower back. Right. And then you sit back sit nice and tall and tighten that seat belt. All right. And that's a great use of the seatbelt. Because why do we have them? All right. If something actually they've there's, you know, like, it'd be pretty neurotic about having a seat belt buckled. Like, if something happens is wasn't he Bill to do, you know? But I I get it. I get it. And no disrespect to any. Flight attendants who are listening right now. My son's godmother June his flight attendants you like you'd better buckle the seat belt shut up. But for me, it's just like this is a good use of it is making sure that I'm supporting the L curve in my spine. Right. So that's one little aspect. Another little strategy is simply getting up. You don't have to sit for a whole three hour flight. You know, there's opportunity to get up go to the bathroom. You know? Just stand up maybe keep your snacks in your bags. You gotta stand up just to get him out set things up. So that you can get up a couple three times throughout the flight and just allow your body to kind of decompress in your and your and you can straighten yourself out a little bit. All right. So that's a couple of things on the flight. But it's really about getting your body reorganized. Once you get off the flight, whether this is at the airport or at your final destination, but you wanna make sure that you stretch your hip flexes because your hip flexes are gonna get Shaw. Shortened by sitting all that time. Whether you're in a flight or in the car and also your neck because you're gonna have a tendency to just have this straightforward position. The majority of the time, and I've seen this many times for folks get little neck issues from travel your neck and also just moving your joints around period and getting some blood flow and circulation in lubrication to your various joints. So I'm somebody like I prefer to actually do a little quick, you know, two to three minute mobility when I get off the flight. All right. I'm not trying to be that guy is like what is he is. He doing yoga at the. I'm not that guy. But I find a little side spot. You know, stretch my hip flexes, which is basically, you know, you get down on one knee. You putting your your your knees and your angles of your legs at both are kind of at ninety degree positions. And then you're just pushing your hips forward. So I'll do that. And maybe. Do a couple of things, you know, just kind of move my lower back around little side bins twisting that kind of stuff, but just taking a couple of minutes to let my body get back reorganized into get fresh, and then you could do a proper session. What you get your Airbnb, your hotel, your friends family house, whatever the case might be. But these are the ten things we need to do can stave off a lot of problems and make sure they were healthy to process, but also being able to carry that health back when we get back home. So we can just hit the ground running and get back into our normal routine. So I hope that you got a lot of value out of this in. It's inspired you to travel more and also to just be proactive at employing a little bit more intentional strategy to take care of yourself. And also the people that you care about. All right. So this is something to add to your overall health strategy because travel is one of those things that impacts our health on all levels who we are. Are mentally emotionally spiritually physically it impacts all of it. Because as I talked about the beginning of the show travel with something that adds to our character expand our worldview, and it also has some surprising health benefits. We got a lot of benefit of his episode shared out with your friends and family, definitely share it out with the person in your life that loves the travel or specially specially the people in your life who don't travel. I shared on social media, Twitter, Instagram, Facebook, all that good stuff. And of course, you could tag me at Sean model. And I appreciate you immensely. We've got some powerful episodes and show topics coming your way soon. So make sure to stay ready. I take care haven't mazey day. I'll talk. And for more after the show make sure to head over to the model health show dot com as we could find all of the show notes he could find transcriptions videos for each episode. And if you've got a comment, you can leave me a comment there as well. And please make sure to head over to items and leave us rating to let everybody know that the show is awesome. And I appreciate that so much and take care. I promise to keep giving you more powerful empowering great content to help you transform your life. Thanks for tuning in.
Average 401(k) Balance by Age: Are You Behind?
"4._0._1._K balance the avenue off. How do you measure up with your peers man? Do we have answers free today? It's Brian Preston. The money guy restoring order to your financial chaos retired investing taxes. You got financial questions. He's got financial answers. It's Brian Preston. The money guy nailed it. Did awesome. Yeah. So today's show we're gonna to almost like I'm a professional, it's like Esther. It's like you've been doing this for a while. Brian precedence over the answers are going onto decades right now. So here's the thing. I'm excited about this show, by the way, this is number two three shows were recording on a marathon, recording day and you guys know when we create content we like to create content. That's fills actionable that, you know what's going to happen, but there's a difference. Sometimes we come up against content that the advice, you want to give a twenty year old is completely different than the advice you wanna give for a fifty year old. So we've come up with this series of what you should have at each age or benchmark of your life, and you've seen it, we've done, what your networks should be what's your habits should be by what your mistakes could be done, what your debt could be so this thing. So I like to think this is a money guy echo. That is now coming about. In the personal finance world. And this is a sole an article in a Senate out to the team here. And there was an article that was actually an investor pedia on what average four one K balances are, by age it, the reason I think that that's such a such a valuable thing for us to cover his all the time. We have a potential clients reach out to us, and whenever we have someone young and young, they're not at financial independence. They're not at the D cumulation phase of their life. There's always two questions that they want to know. Where am I am I head of the curve, and mama? Hind the curve on the curve, don't even know where the curve is in where my headed if I'm in the right or wrong place. Am I moving towards the place that I want to be, well, you kind of have to know where everyone else is? And where you should be you can assess M I on-track where all supposed to be, and we're going to cover all that even have some cool findings because here's the other thing, I thought was interesting. A lot of this data when I found the invest pedia article I realize that fidelity had re released a research report that a lot of people pout on. We had nerdwallet got in on it Bank rate got in on it. And then, of course, we have the, the actual findings from the fidelity research, piece it really gave a lot of data. It's go. Let us dive into the age stuff. But I wanted to share some other interesting information. The fact that rose, we are ten years, removed from the great recession. Yeah. Yeah. We are over ten years from the bottom of the market back in March. Select upon. In fidelity did that? And why is fidelity a great kind of steward of the data for four one ks? The reason is because they are the largest four one K provider in the United States, pretty much, if you work for a fortune five hundred company, you probably have a fidelity for one. We have a lot of clients come to us that have fidelity four one ks and we've seen what the what they have to offer. So it's great that they have all this data that they're able to look at. So they, they did a research piece that they added to what's going on by age where they talked about what happened what we're account balances in two thousand nine first quarter two thousand nine what are account balances? Now, if you fast forward because real first quarter two thousand nine was the bottom moderate recession because it was like March six March seventh of two thousand nine was the low of low of what was going on in the marketplace. So severe we are first quarter twenty nineteen. What's the compare and contrast them? And here's what the big takeaway for you guys at like just cut through the chase. Staying the course is rewarding. That's what that's what the fact is, we always say that. But we actually have some anecdotal case study evidence that in fact, if you stayed the course from our last downturn, you were awarded for that now rose, let me give it some perspective, because I won't these numbers to kind of have some depth to them. So you know what's going on two thousand eight was the, the beat up year that you look on statistically? When you look at the years, performances, you look at two thousand and what happened is because he s and p five hundred lost thirty seven percent, but that wasn't the rest of the story, if you actually expanded that from two thousand seven all the way to the low of two thousand nine which was like I said in early March of two thousand nine the SNP actually had a period of time that was down fifty seven percent. So you heard me right. That was fifty seven percents lost well over half of its value. So a lot of people. Going. So what's the rest of the story because if you're an accumulator, if you're a saver, a lot of you guys, when you hear this data, I want you to get like giddy? Well, you just said, run the market got cut in half it is, and you're going to get excited about that. So how do you the way you get excited about his realize, when you're a retirement savings 4._0._1._K's, how do they fund you fund a monthly? I've known young get paycheck, that money's going into your 4._0._1._K every month that the S and P five hundred was getting its teeth kicked in two thousand eight two thousand nine you buying in a few more shares with that same dollar amount. Assuming you stayed the course. So it turns you into a financial mutant in the fact that volatility is your friend, if you're doing dollar cost averaging and that's exactly what four one ks did. So let me give you the rest of the story because a lot of you guys will have plans. And you think you won't have it figured out? But then you have something like a two thousand eight two thousand nine and it totally throws you for a loop. And it's why won't you stay with us? We will inoculate you. This is the value of a good financial advisor is that we actually help you stay the course because a lot of you guys doing it yourself, you think you've got it all figured out, and then thousand eight two thousand nine happens. And then you're reminded of the Mike Tyson, quote, which is everybody has a plan until you get punched in the math is true through. So there's a lot of people that think they can do whatever. But here's the rest of the story, if you're staying, the course is rewarding because four the overall four one K balances in two thousand nine or fifty two thousand six hundred so that the average 4._0._1._K balance in the first quarter of two thousand across all ages was just under fifty three thousand nine that was right after the market and was at the bottom of its low of low fast forward to first quarter twenty nine thousand nine the average four one K balance now over, all age groups, two hundred ninety seven thousand seven hundred dollars. So, of course, the two hundred ninety eight thousand dollars so it didn't just double or triple. I mean it went up. Four hundred and sixty six percent from Acuna standpoint. So let's kind of I think it's, it's kind of pays the stay. So now, let's kind of relate this to retirement, and 4._0._1._K's in general because a lot of people might be tuning go. I don't four one K at work, but I've never really paid attention to. So there's some other stats fidelity shared with us for twenty nineteen salary deferral limits, nineteen thousand dollars if you're if you're fifty, I didn't say over at INSEE like fifty one if you just fifty or over, you actually have the opportunity to what's called a six thousand ketchup, contribution government wants to encourage you to say now you hate when I do this Brian, but always wanted this out there, because this is something a lot of people. Yes, the limit for doing traditional or Roth contribution to four one K is nineteen thousand dollars if you're under fifty, but in my best, Billy Mays, impersonation. There's more you actually aren't capped at nineteen thousand you did. You know, you can actually put more money into your. Zero one k the nineteen thousand dollars a year. If your plan has specific provisions, if it has after-tax after tax contributions, and then, by the way, guys, and we're not gonna get into this, this show, but this is you might want to reach out to us, if you find out your employer offers after tax contributions as well as inservice distributions. Juggernaut. All my gosh. I got so excited. I think I just blew up the it is a huge savings, opportunity and the word Roth even comes to mind. So we'll we'll keep moving forward. And hopefully I didn't blow up the audio with that. But I want you to also remember, we want you to be saving fifteen to twenty five percent of your gross income for the future in a good place to put it is in your retirement plan. If, if we were doing the show, fifty years ago, we might have said, you should save ten percent of your gross income. They used to be the rule of thumb, but the world has changed a little bit. Now, social security is probably going to change pensions aren't the things they used to be. So now our retirements are now on our shoulders. That's why you have to be doing it in the 4._0._1._K. Just like you said, is one of the number one best vehicles for us to be able to build assets for retirement. And now I want you because a lot of you're going to account, my employer number in that I think if you make less than one hundred thousand dollars. Yes, you can count your employer. If you make more than one hundred thousand dollars. No, you don't get to count. Your employer contribution towards that fifteen twenty five percent going, how Brown. Why are you so stingy? Why don't want to get the count that here's a reason why guys a lot of you are still have access to some type of social security? You might have some other income streams coming into you. So I'm not worried if somebody tells me they just need to retire with fifty thousand dollars a year. I mean social security's, go probably cover half. They talked to that. Yeah. So you don't it doesn't put everything on you. Once you start needing cash flow retirement, it's eighty hundred hundred twenty thousand dollars. That's not coming from social security coming from you, so you need to kind of bone up and know that it's going to be a conservative number the responsibility falls on. You see need to save as much as possible. I did think it was interesting. The data from fidelity was ninety one percent of employs who are auto enrolled don't opt out. This is a big win for employment retirement opportunities at your retirement plan at your employer. There's a whole study done, and I can't remember it was in Denmark, someone donors, organ, donors, the whole organ, donors. It's amazing how powerful this whole opt-out principle is. So if you're a small business owner or if you're someone in HR or less control over how 4._0._1._K's at your company, structured, automatic enrollment is great because sometimes if people need that little nudge, and they're not going to help yourselves man. It's pretty awesome. If you can, if you can nudge them in that right direction because maybe just maybe an auto enrollment might be they get them addicted to saving for the for thirty to forty years in the future. I would love to know if there's a whole group of twenty and thirty year olds start their first job get into these auto enrollment plans and now they're automatic millionaires not because. They're brilliant. But just because some employer had this feature set up on their 4._0._1._K. Also. Here's a great thing. All time highs on both these numbers. So this is something to celebrate and then we'll jump into averages by age all time has a celebrate was the average employer contribution rate is four point seven percent. That's an all time high for four one K plans. So, okay. You guys may not know this when you design a 4._0._1._K plan a lot of people do what's called a safe harbor plan. I won't go into the details of that. But essentially, it allows employer to either do three percent or four percent, depending on the structure against them out of a lot of testing and stuff. What I think is so awesome is that this is actually even higher than the required minimum. So a lot of employers out there, generous and want to see you succeed when it comes to building assets. So here's I found a drum roll or hype button that we could play the horn on. Is that here's the other big number? If you add that four point seven percent, do you know what the average is, if you combine both the employer and the employee contribution? It's third. Thirteen and a half percent. So that means the average employee is put in eight point eight percent into their retirement planning, remember, I said the goals fifteen to twenty five. I know I should probably be scolding you guys because we didn't hit fifteen but all time hobby basis. This is the average American not money got families yours, that's something to kind of celebrate. That's pretty cool. Pretty awesome. If you'd have asked me to guess if the average employer rate is four point seven would have guessed. The average employee rate is six four point seven holiday. They just get the match and don't do anything that is stinking awesome. So that's so there is a trend for increasing the savings. So let's go to I want to move forward. And let's talk about number three. What is the average balanced by age? And let's break this out by twenty year olds thirty year olds forty year olds fifty year olds what should you be doing your 4._0._1._K? So first, let's pick on the twenty year olds. This is the thing. I'll put this in bold face of underlined up, put Asterix. This is the biggest no-brainer for being rich in. In the world. I mean, if you're a you're twenties, and you're not a millionaire, by the time you're in your sixties you have done it all wrong. And the sad thing is the majority will still figure out how to screw this. You said it, right? It is easy to be rich in your twenties. So ease it is easy to be rich in your twenties. And we squander it. We squandered that particular most valuable resource that most of us have is time in the earlier, we can start living at our money working for us. The more valuable that time says this when we were setting everything up for to record this, and because I know a lot of you got your young people or like I just don't have money guys. Life is expensive. I just don't have it. Here's the truth of the matter. You can become rich stinking rich by saving hundreds of dollars in your twenties. You go find when you're in your forties, you can save thousands of dollars and still not be wealthy. That's right. So guys make it happen while you're in your twenties because it really is a vision of heartbreak because. What do you think? Here's something. Here's a stat that I thought was really surprising. And I get mad at you guys who when we run the QNA on the live shows Matt's. The guy who gets the tumblers out king of the tumbler pulled Matt in. I said Matt now he had the answer. He's smarter than me. What do you think the biggest group is taking distributions from 4._0._1._K's, as according to Fidelity's research? Well, I would have thought have been people close to retirement, who just wanna use it to retire people, older people that are taking money out. You know what the biggest group of people that are taking distributions from their four one K is twenty year olds is people twenties, and they're twenty two twenty nine year olds. They're the biggest group that is the biggest vision for heartbreak to me, and the number is forty one to forty two percent of twenty to twenty nine year olds are cashing out their four one K. So I totally know what's going on. When I see that stat is you're probably having some type of career change with your job when you're in your twenties, and instead of rolling that money into an IRA leaving at your current employer. If it's like at a fidelity or something like that, or even rolling it into a brand new employer. A lot of you guys are going, you know what? I'll just take the money. Yeah. Take the money and run first time I'm able to get to it. I'm going to go ahead and grab it and go a disaster because not only do you. Pay income taxes on that money you pay early withdraw and you're robbing your future self of all that compound interest. You can't get rich. If you don't have an army of dollar bills that's out there working for you guys. Right. And I'm telling you ninety five percent of your future selves retirement account could be the capital compound interest. I mean it's really the capital. Yes, it is. It's not you, you only have to you have to put the seed in the ground. Nobody's asking you to make the apples. You just got to put the seed in the ground and the, the money will do the rest of it, unless it's a vision for heartbreak. And that leads me to kind of explain the eighty eight times over because I've done this before it's a broken record. But I think it's important eighty eight times over explained. Is that twenty year olds? This is the stuff that got me into this profession. I want you to realize when you're twenty years old. If you just get the performance of the market, the S and P five hundred I'm trying to get anything crazy here. We're not leveraging it when I put in private investments. We're buying the S and P five hundred which of the five. Hundred largest companies of the United States, you've recognized all these companies if you did that and let your money. Just grow one dollars has potential to turn into eighty eight dollars by the time you're sixty five years of age. That's right. You put in a dollar eighty seven eighty seven dollars of capital gains and then it's going to end income dividends. We have some dividends in its turn into eight dollars. That's incredible. All you do is let that money grow for forty five years and earning, what the S and P five hundred with arm, which is around ten percent a year. Yep. So think about it. That's, that's pretty incredible. So let's put that in real terms of what that means for you have your person who's twenty years old. Let's just say you can start saving two hundred dollars a month that seems reasonable. Right. So that's what's at fifty bucks a month. You fifty bucks a week come fifty bucks a week and you could do it. So two hundred dollars a month growing with the market at ten percent by the time you retire. It's going to be worth close to two point one million dollars. So you not just. A millionaire you're millionaire two times over this didn't have you having any additional pay raises. No bonuses. No better saving. No ketchups. No lottery winnings, nothing, just simply two hundred bucks a month from now until you get a scout our of eight times over. So what you're getting so excited by this, you're saying, what am I gonna do five hundred dollars a month five hundred dollars a month turns into five point two million dollars? It starts getting kind of hard to screw up on independence when you got five millions, everybody who's in their twenties. Ought to be rich yet. So a lot of you. I'm not twenty I didn't get out to college when I was twenty okay twenty five year olds. If you save two hundred dollars a month when you're twenty five you'll have one point to close to one point three million dollars, by the time, you reach sixty five still a millionaire. If you put five hundred dollars a month, you're going to have three point one close to three point three million one hundred sixty two thousand dollars, by the time you retire. That's a pretty good retirement. Unbelievable from doing five hundred dollars a month and you start with your twenty five years old, and here's the other thing, I think is. Awesome that fidelity share sixty eight point nine percent of employers now. Offer Roth as an option, you have a brand that's no good because I'm a young person and I'm doing pretty well. And I have a pretty high income. So I can't do the Roth that doesn't apply to me. No. Young people guys tax free growth, think about that. Eight times growth with tax free growth. Meaning you put a dollar in turns into eighty eight you never pay tax on that eighty seven dollars. That is going to be powerful stuff. So young people in your twenties. I think Roth is your friend, even if you make high income, there's some opportunity for you. You know, there's all kinds of Roth conversion strategies as other thing, even if you have the RAV four one K option your. That's right. You can do it. You can do both a Roth IRA. You can do a Roth four one K. Roth is your best friend take advantage of it, because it's tax free growth. You never pay tax when you pull it out. So let's talk about what the, the numbers are. And I like this because this is your spot. Check. This is going to tell you where am I am I wear, I need to be so Bogo go and give it to them. Yes. So according to the fidelity research, by the time you're thirty you should have half of your annual salary saved. So if you make one hundred thousand dollars a year at thirty years old, you should have fifty thousand dollars saved for retirement. If you make fifty thousand dollars at thirty years old, you should have twenty five thousand safe for retirement, according to Bank rate, from these are just averages this isn't what you should have. This is just what the average is. So we know that it should be Hamsphire, according to Bank rate from ages twenty to twenty nine you should have about twelve now. You not you should have the average twenty to twenty nine year old has eleven thousand eight hundred dollars saved. I hope you have more than that. What about nerdwallet? They had an article on this as well. Nerdwallet said that the average was eleven thousand six hundred the median was actually right around four thousand and then according to invest of pedia based on their TransAmerica center for ten percent. Those are twenty average savings of approximately thirty one thousand dollars. Here's a here's a tidbit, I have to make sure I put this about the investor pedia article I think they included not only four one ks but also are eight. So that's just what they said, your retirement savings would be twenties was a right around thirty one thousand dollars. So that's the only need to make sure clarify. But the biggest thing is that sounds like the averages are right around twelve thousand dollars, according to nerdwallet in Bank rate, the thing that concerns me is, I know people are making a lot more money than twenty to twenty three thousand twenty four thousand dollars a year, so that means right there, my twenty year olds fallen behind. You're an automatic millionaire. If you'll just let your money, do the work so jumped to us. Go ahead. Talk to our thirty year old. Guys. Thirty year old still a lot of opportunity. You don't have to choke up on that bat, too much because there's still a lot of long balls in that bad. If you swing it. So let's talk about this. I was still surprised to find out, I picked twenty year olds because they are the largest group to cash out their goal in ks. And I imagine a lot of it's because they're changing jobs but they're young and they don't know better, surely someone by the thirties. They've got life figured out there a little more mature now. Thirty year olds weren't the biggest will we save that for the twenty year olds but still thirty eight percent of workers who are thirty to thirty nine years of old thirty nine years of age are still cashing out their four one ks when they change jobs. That's a complete disaster, because guess what you probably have worked for, like, ten years, and you have some money actually in the account, and you're still taking it. What are you doing? Buying a car, but Napoleon the backyard's crazy that's horrible. You're going to hate yourself in the future. If you're making bad decisions like that with your retirement account. Remember these things are structured. They're supposed to be retirement. Ask. Us they're supposed to you're going to be able to access them, at least until you get to fifty nine and a half or maybe fifty five q, not even halfway there you are taking your runner out runners out of the race way too soon. We'll give you one more disappointing stat that came from this fidelity research. And then we turn the glass to being half full, the optimistic side of things the other leaking thing that's going on in retirement plans, is that nineteen point nine percent of four one K, participants have outstanding loans, meaning they're borrowing against themselves, and that my fill better that you're instead of borrowing from a Bank, you're borrowing from your retirement account. But guess what? While you're boring that money. You're not getting all that compound in growth of your money, working for you. So I think that's a bad sign. Now, the good news if I could find a little glimmer of happiness, and hope from this data point is that we're actually down from a peak of twenty two point four percent of four one ks or being borrowed from in twenty thirteen worked. So we're a little under twenty. Still too much, though. So, in here's the common reasons for taking loans in a lot of these are. Big can of note? Here we go. Thirty one percent pay down a high interest, credit card debt. Remember this is this is a repeat from broad credit card debt, does not exist. Credit card debt, does not exist. If you were running a credit card balance you're doing it. All wrong credit cards are paid off monthly if you can't pay them off monthly cold Turkey. You don't get to have a lot love it. Is that what you were going to say? No, I was gonna say the exact same thing. I I like that. You're paying off high interest debt. You shouldn't have high interest debt is bad, people who are successful my don't struggle with paying off credit cards to get yourself out of that bad habit. Twenty four percent of home or using that money for home taking loans for home improvements or repairs now. Okay, so repairs, maybe I could get that because sometimes life happens, but home improvements if you have to go borrow from your future financially, independent self to improve your house, you really. Should think about is this an improvement that really needs to be made or might not need to save for this and do a lighter home improvements bad. How about twenty one percent just to buy a home or refinance a mortgage? Ooh, he had also not ideal and then nineteen percent just the pay outstanding bills. You know what I just needed to pay bills deal? That's probably a surefire. Sign your living outside your means and one of the three pillars of being financially independent is living in less than you make living inside your me. So let's talk about what you're shorting yourself. Let's talk about what your opportunities for your army of dollar bills and what they could be doing for you. If you actually let them work for you. Now, remember for my twenty year olds I said, what happens? What do you have? If you save two hundred dollars a month. Guess what? You don't get to do that in your thirties. You're past that point. We gotta put a little bit more to work to get it to get the same reaction. So we're going to start with five hundred dollars a month thirty years of age, and you work until you're sixty five now you don't get to make exactly what the stock market does because that's what twenty year olds get to do. They get to do the S and P five hundred and probably compound. Around ten percent, thirty year olds here at nine percent because you gotta start got Ekin a little more vacation because you're getting a little bit older. So a thirty year old that saving until they're sixty five earning around non percent a year, five hundred dollars ago, turn to what close to one point five million dollars. One million four hundred seventy one thousand dollars, but they'll just say five hundred dollars a month. And again, this was no pay raises no increases in income. No increases bonus. No additional saving that to me seems so so, so incredibly doable, because if you think about five hundred dollars a month that is only six thousand dollars a year. And if you take six thousand dollars a year you divide that by what twenty percent that somebody makes thirty thousand dollars a year that seems very doable. Somebody's is doing thirty thousand dollars a year that can save twenty percent at thirty years old. You're on your way to having a million and a half dollars. So kick it up at seven hundred and fifty dollars a month if you saving that for your future self is going to turn into two point two million dollars credible. By the time you're sixty five so you're millionaire multiple times at that point. So let's talk about a thirty five year old because some you guys like thirty I'm still I'm still have a good time. I haven't studied by Thursday night. So a thirty five year olds that save five hundred dollars a month still learning. The same non percent rate of return, they just now only have thirty years for them to work. It turns into non one hundred fifteen thousand dollars. So here's what you just saw it gets a little bit harder to be a millionaire. It gets a little bit harder. If you're waiting till thirty not an automatic millionaire anymore. So if you kick it up a notch to seven hundred and fifty dollars a month, you are back to being a millionaire is one million three hundred seventy three thousand dollars. So a lot of you in your thirties, you're saying, okay, you are sorting to make some good money. You stay in my Roth traditional, what do I do here because remember, Roth you don't get a current year tax deduction doesn't lower your taxable income, but it does grow completely tax free. Go traditional on your 4._0._1._K get a current your tax deduction. But when you pull that money out at sixty six sixty seven forever, you're going to pay ordinary income tax rates on it. So you're trying to figure out. So here's my advice to you. Now realize this is kind of fluid. This is just an opinion. You need to talk to your own financial advisor we don't know your specific age, you know risk profiles your goals. So this is not a recommendation. It's just something to ponder. And think about I think if you look at that twenty four percent tax bracket with the federal government. That's a good kind of line in the sand. Start looking at you trying to figure out where that is it starts with married filing jointly. That's around one hundred sixty eight thousand dollars for single people to around eighty four thousand that's kind of your lawn. The sand is start thinking about maybe I make enough money where traditional might make sense over Roth just because I current tax deduction, but it's still a tossup because that tax regrows is pretty powerful. It's I we'll tell you once you crossing a thirty two percent bracket for married couples that's around three hundred twenty one thousand for single people. It's one hundred sixty thousand once you pay paying thirty two percent just the federal government. And then you add, your state income taxes, you starting to pay close to forty percent tax. But if it's pretty strong is a big benefit because you're hoping when you retire. Are, you know, your tax rate might be a little bit lower? So that's just something to consider so bogere them kind of the benchmark of measuring of where they should be. So four my thirty year olds out there by the time you get to forty you should have twice your annual salary saved up. So, again, if you're someone who makes a hundred thousand dollars a year, you should have two hundred thousand dollars time, say, fidelity Bally's, if you have if you make fifty thousand dollars a year, you ought to have one hundred thousand dollars for a time looking at the Bank rate article the average balance for those from age thirty to thirty nine is forty two thousand four hundred dollars for nerdwallet the average balance was forty three thousand six hundred or a meeting of sixteen five, and then invest pedia said those age thirty two to thirty seven have saved around thirty one thousand six hundred so you can see if our goal is to have twice our annual income, the averages are probably missing the Mark, because I mean, I'm Madge in most people out there, earning more than twenty thousand dollars a year. So we're doing this. Wrong. Once again, the average American even though they have all this opportunity blowing, it, don't be part of that. So here's the transition point. We're now crossing into something I resemble. The forties forties. Or for your wounded warriors. Why do I call us in our forties, wounded warriors, because and you twenties and thirties, you're invincible you can take over the world? There's nothing you can can accomplish forties. You start realizing, hey, I'm still feeling pretty good. But I'm not going to be here forever. And maybe I'm not gonna take over the world. I mean he just kinda start realizing these things you start thinking about, hey, do the kids. I got I got the kids that are selling to become teenagers. Do we have college attic, Kyle what about retirement? Do we do? We even have retirement for crap. This is the thought process, and then this is also the age. I'm just go ahead and tell you I'm not painting a pretty pitcher from no he's not I'm not looking forward. This is a lot of midlife crisis. Happened to I think people who have not made because what happens when your forties, it's either going to be a celebration for your past successes. Have you started saving your twenties and thirties, or it's going to be that wakeup call where you go, man? It is now Tom is that four can the road moment, where I can either get serious and start building from future or I'm in trouble. It's either a celebration or a realization. So you've got it. You gotta get serious about all the things that are going on, because this is do or dot com. And then here's what I think, when I was looking at fidelity research, study now put this with the forty year olds because I think it probably is the average retirement person these real realities kinda hit them, two thirds of workers from Fidelity's research believed. They don't know much know as much about retirement as they think they should. That's easy solution. Go listen the money. I. Show solve no problem. I don't think it's the money got family. That's struggling with this. It's still l'armee shea there, the third that hasn't figured out, it's the two-thirds. It's all their friends relatives and neighbors that are that two-thirds of workers, don't know about as much about retirement, they thought they would thirty percent. Don't know anything about asset allocation twenty percent admit to not knowing how their retirement money is even invested. Target retirement solutions to that easy solutions because accidentally falling into target retirement funds would be much better than just not on your hands. To do. So let's talk about investment opportunity. Once again, I'm kicking this up, you know, if, if you're listening, if you listen to the highlight show, I'd encourage you go, look at the twenty s and thirty year olds those of you that listen to the long show, remember which one year olds I started what is two hundred dollars invested a month, turn into, and it turns you until multi-million by the time you're in your forties. Even if you're forty year old investing and working until you're sixty five years of age. So it's twenty five years of your money, working for you and a drop down. The rate of return again now you're only making eight percent because you are getting a little older. So you got a little more diversification. It's cut the edge off of that return a little bit. So even if you're investing seven hundred and fifty dollars a month by the time you're sixty five if that's where you're starting with you'll have seven hundred and thirteen thousand dollars at retirement. I think this is what's so powerful you at forty are saving almost four times more than you would have had to when you're twenty and the. Portfolio that you have our time is not a bit. It's third of it. It's truly amazing. So we gotta kick it up a notch should get over a millionaire status so we did twelve hundred dollars a month. That's right. You're investing your investing four figures a month to get to your retirement. If you're doing twelve hundred dollars a month, it's one point one million dollars by the time he retired actually one hundred is one million one hundred and forty one thousand dollars by the time you're sixty five, so here's the good news. It's still a table. That's still doable. It's still possible. You have not reached the point. So even if you are with those people instead of having the celebration, you're having the realization be excited that you still do have time when your side that you can do something meaningful in terms of build. And look, I know we get comments because people like why did you talk about the twenty and thirty? Do you make me feel so bad? Listen to this is a forty year old who didn't start guys if you didn't start your twenties. That was the best time. But, you know, the second best time is tomorrow, get going. Because if you think it's bad. Now wait until you see how much. Numbers would have grown ten years from now fifteen years from now. And remember, here's a here's the other thing when you retiring, your sixties. It's not like we all pass away within five minutes. You're going to probably live to being your nannies if not even into your hundreds becoming one hundred and five hundred and ten years old. So you're gonna need that money to last for thirty forty years, you're going to still probably have chances for this compounding interesting to help you out as well. So don't let that point miss you forty-five-year-old. That's investing seven hundred and fifty dollars for the next twenty years until they're sixty five at eight percent is going to have four hundred and forty two thousand dollars every time now you're not even halfway to millionaire status twelve hundred dollars a month. Get you to seven hundred and seven thousand dollars. That's just five years, from age, forty to forty five just five years, you would save was that all five hundred dollars more a month, and you still don't get the same place. You would have been if you would have just started. So there's a lot of you who are forty five okay? Okay, we'll tell me the number. Then if I haven't started would do to be a millionaire because that's kind of the number we all have psychological in our head. I want to have that whole seven figure portfolio. Here's a number at seventeen hundred dollars a month. You gotta save seventeen hundred dollars a month, if you waited until you're forty five years old, to start saving on a monthly basis. So you really want to focus you for its on getting that money to work as fast as possible, if he didn't doing your twenties like I said, already get it to work tomorrow, because you still have lots of opportunity for it to grow. Give them the benchmarks. Yeah. So we said that by the time you got to forty you should have double your annual salary. According to the fidelity research, by the time you're fifty you should have four times your annual salary saved up. So if you're someone who makes one hundred thousand dollars a year, you should have four hundred thousand dollars entertainment assets. Well, the bakery, piece, let us know that the average time a balance for those from forty to forty nine is just over one hundred thousand dollars one hundred and three thousand so that would be appropriate for folks who only may twenty. Five thousand dollars a year, according to nerdwallet, the average is right at one hundred six thousand and then investigate you said it those from ages thirty eight to forty three the average account balance a retirement savings balances about sixty eight thousand and those forty four to forty eight. It was right about eighty one thousand so you can see we got a big disconnect. Zeke your friends, I know you guys with the money got family. You're not making this mistake. A lot of people really dropping the ball, and their retirement savings. Let's transition to them a fifty year olds guys win. You're in your fifties. You're either a wise feel general or cautionary tale. I want you to be the wise field general because remember every dollar in your army of dollar bills should have a purpose for you. Do not want to be the relative that people point to go man. Oh girl, he had all the opportunity of the world. But he just squandered. He had his shirt in have a nice car when he was thirty though, yellow remember. Yeah. Thing was beautiful. But man he's broke. There are things you can do to not get yourself in that situation. More of your success will be determined by your past discipline and making the right decisions. Could you do not want to wait until you're fifty years old to wake up and go what has happened because there's no more free lunches? Right. This point is all on you. This is your time you still have an opportunity of fifteen years to get to sixty five so how can you put it on your shoulders and pull yourself out of this bad situation? And maybe you're someone in there. Maybe you have done the right things. You haven't making the right decisions you do. Have a portfolio started to do something pretty exciting fifty is that kind of range where you have to start really thinking about how you are being field general to your arm of dollar bills because, now you're getting to the point, you don't have the time to recover from a screw up if you make a misstep so Tom Rosin is becoming more and more important, especially if you're. Many things you want to come out of the workforce, maybe sixty not sixty five so pay attention because there's a lot of research, Fidelity's, reach our research shows that baby boomers, this is their quote from the research article baby boomers are the most likely generation to be too aggressively invested potentially putting them at risk so close to retirement. I think about like you've really racist before, Brian. Right. If you've ever been a race and you actually get out in the front, and you start guy you're about to describe you talking about the sprinter. The guy who takes off for the five Cain is at the front of the pack for all of one hundred and fifty yards. That guy's the wrong guy, and also the guy who's out in the lead, and it's his raised lose any starts showboating. He starts doing something he has no business doing any trips over his face, and he fall trips orders feet and falls on his face. There was no need when he was that close to the finish line to not just finish the drill. Well, that's what we've seen. I've actually, unfortunately do this long enough you start seeing not clients of ours, just seen people where successful parents. Had conquered the financial game. Juniors decided he wanted to start a business venture a real estate, venture got pops, and mom involved in it, and they've lost it all. There is a thing called risk capacity. Pay attention to what's going on in your portfolio, especially as you're gliding that airplane into a nice landing to have the financial independence at you're hoping for so definitely and pay attention to catch ups realize, once you hit that magical age of fifty I'm not that far from it. Now, you will get what's called catch up contributions, both in your IRA's as well as 4._0._1._K's and four threes for your 4._0._1._K's at six thousand dollars if you add that to your nine hundred and you could actually fund twenty five thousand dollars into your salary deferrals pretty powerful stuff credit, imagine the government recognizes this the age where you're probably waking up to being very serious about your future. So they want to give you some additional jet fuel to get you across the finish line. So let's talk about investing for fifty assuming no. This is a Suming a fifty year old that is done. No. Oh, saving before they just woke up today and go, oh my goodness. I gotta start saying you gotta start saving now. Once again, they don't get to make what the twenty year olds making. Because once you're in your fifties, you got to add a little more asset allocation, a little diversification. Got to cut the edge off of the volatility because you just don't have as much time to recover. So you might only be making seven percent annualized per year. And so for the next fifteen years, so you got from fifty to sixty five fifty year old saving twelve hundred dollars a month is going to have three hundred eighty thousand dollars by retirement. Okay. Maybe with the three hundred eight thousand plus social security, maybe have a pension there, you still have something going on there. And frankly, we've seen clients who have portfolios is that are in a wonderful position, because they're living expenses fit into that box, and that works, so more likely you're also your some of your peak aren't in years, so you might be able to say twenty five hundred dollars a month. I know that is a ton of money from my twenty year olds, but a person who's fifty who's really serious. You are thinking about the scarcity of may. How fearful yours, you're cutting left and right. If you were saving twenty five hundred dollars a month for the next fifteen years, you would have seven hundred ninety two thousand dollars million dollar Martin. If you want to know what you would have to do for a million dollars because I knows still that magical number, you'd have to save three thousand one hundred and fifty five dollars a month. Fifty five year old maybe if you started yet, ten years or save you're really panicking still making seven percent a year. If you did twelve hundred dollars a month, it's going to be worth two hundred and eight thousand dollars retirement. He put twenty five hundred dollars a month in it'd be worth forty four hundred thirty three thousand dollars. If you did that remember, I told you for fifty year olds to get a millionaire status, you do three thousand one hundred fifty five dollars for the fifty five year old just two five year age difference that numbers only five hundred and forty six thousand dollars, saving the exact same amount of fifty five that you would have saved at fifty only gets you halfway as far as what have five years little over half. So to save now to get to a millionaire status and that next ten year Mark, you gotta say five thousand seven hundred seventy eight dollars a month close to six thousand bucks a month. We're starting to get to maybe, maybe some seventy two grand a year. That's just just devoting to retirement. You better be in a pretty high income situation. This is also the age. You know, social security is go become a an important factor, especially if you're behind go to, and they don't send that a lot of people don't realize government doesn't send you your social security statements annually anymore. They now are required to go to the social security administration's website. That's S S A dot g-o-v, go there, you can give some verification data and then pull your data points for what you will have in retirement now. So screen is one of those things, and this is where if you are trying to figure out when to take it had to take it make sure that you measure twice cut once because you don't want to make that decision. Wrong, a lot of folks, like, oh, as soon as I hit sixty two I'm going to grandma's social security, to take that benefit. I'm going to get the money's early as possible that may not be the best decision. If you're still earning income than you might actually have your benefit reduced or if you need a higher lifetime amount to be able to cover by taking the sixty two. You may really increase your Chevy risk of running out of resources. I like people sixty two you like hot dog. Get my free money from the government that I've been paying into my whole life. So it's not really free money. It's prepaid money that you put in running much money. Right. But the truth of the matter is, if you will defer until at least full retirement age, and then maybe even consider because once you hit full retirement age, if you just wait until seventy the government actually puts a compounding rate of eight percent a year. You heard me say that for fifty year olds you probably not going to get much better in seven I can tell you sixty year old shouldn't be getting eight percent for the fact that the government compounds from full retirement age is seventy eight percent a year strong. It's something to look at it, because if anything it gives you longevity insurance protection that you might not outlive, your money, if you can push up that monthly payment that the government go pay you so kind of walk us through, what is the fidelity research? What is the Bank rate? The nerdwallet investor pedia research say for averages as well as how much you should have in your fifties. So according to the Fidelia research, by the time you reach sixty years old usually have six. Times your salary. This is where it gets a little unique though, because really by the time you get there and you start to see retirement and financial independence on the horizon, it should be customized to your financial situation. Maybe six times your salary works, maybe used to be thirty times your living expenses, maybe needs to be some number less because of pension social security. This is where it relates to be custom. You know exactly what your number is the banquet article said that for those from fifty to fifty nine the average account balance is one hundred seventy four thousand nerdwallet. Let us know that the average balance was about one hundred seventy nine thousand and then invest a pediatrician that those between fifty to fifty five have saved an average of one hundred and twenty five thousand dollars. None of those numbers sound to me like it's probably six times annual salary so people because once again America is bad about saving for the future. And that's just something we've known. So let's kind of I would like to give some quick guidance on what some success indicators are for you because you're probably trying to figure. Out if you haven't hired a financial adviser you do it yourself or what are some success indicators? You can look at your retirement pot of money to know what does this mean for you. So the first one we've heard this talked about, I want to give a little color to it. A withdrawal rate, a good one. You know, good simple thing you could do is just a four and a half percent withdrawal rate. It's a good spot check. So if you think about now look, if you're a thirty year old or forty year old, that's listen to this. You don't just take your four and a half percent. You'd have to take your, your take the what your money's worth now Rohit, but what you think it's going to make from now until say, sixty five or sixty whatever your year of leaving is, so if you're thirty and you're retired at sixty grow it for thirty years, multiple that number about four and a half percent. I'll give you the Spacek of what it could be worth now. It's not going to be adjusted for inflation, but at least gives you a good spot. Now, if you're a thirty year old and you're one of those fire, folks. Thanks, you might retire your for fifties four and a half might not be here for you need to be three three and a. Half percent because you have some longevity more decades that you're live on this money, the lower that withdrawal rate is. So I mean we have somebody we're talking to right now. If you're retiring in your forties, that number probably needs to be around three and a half percent because you're gonna be living off this money. Don't want some downturn on unforeseen thing coming your way derailing that because once you take yourself out of the workforce is kind of a scary thing. So pay attention to those withdrawal rates and just because you have a withdrawal rate doesn't mean that when the market's getting his teeth kicked in that you're still hitting the accelerator. I'm hoping that human nature kicks in that you kind of trim a little bit off, take your foot off accelerator in those bad years, so you can take your total portfolio, and you can multiply withdrawal. Right. That's one way to figure out your income, another great way to think about how much you need is what we call a living expense multiple. Now here's the thing when you do this. We want you to take your living expenses, multiple by twenty five and that's a good kind of baseline. Now realize once again, this is suing your retirement like a normal retirement age in your sixties. But reduce that because you a lot of you have a little shock at all you multiply that number of living expense by twenty five million. Holy cow. I'm nowhere near that. Remember, you can reduce that living expense number by what are you go? Bring in from social security. What are you gonna bring in from your pensions? Those things will offset what that living expense need will be assuming you're taking those into account as well as taxes, it will make it more reasonable. So if you think you're living expense to five thousand dollars a month, and, you know that social security is going to be a thousand dollars a month. And you know that your pension two thousand dollars a month. You take the difference, three thousand dollars, and multiply that times twenty-five that will give you an idea of what you would do thirty six thousand twenty would give because that's just your monthly pool of three thousand but it definitely we give you a spot check of knowing what you have. And here's the last one millionaire next door formula week like this formula in Beaumont, a brilliant adjustment to it that will go over as well. But this is simply just take your age tabs your income. And divided by ten that's go tell you what the average accumulator of wealth factor should be to be super successful. We want you to be a prodigious accumulator of wealth sides, actually, it'll be to Tom's that numbers right now all of you because most people hit millionaire says, when they're in their fifties. So a lot of you go look at that formula and go, this ain't for me because I know I've got student loan debt and other things we made a tweak to the formula, because we know this formula really is not that good for twenty and thirty year olds but we made an adjustment. What's that? Yeah. So if you're someone who's under forty years of age, while you do is you take your age times, your income divided by the number of years until you get to forty plus ten so again, that your age times, your income divided by ten plus the number of years, eight forty so if you're someone who's thirty one years old, you take your thirty one years old, multiply times, your income and divide by nineteen ten plus nine years, still forty so that one adjustment will help you and you can see his beautiful because as you get closer to forty that goes. Back to the millionaire next door formula, but it gives you the age and the Tom to let your assets start growing up for you. So hopefully, you can see spot checking and looking and comparing yourself to see where you are. I would instead of paying attention to where my peers are, and what those averages account balances those things should make you feel better about yourself because you looking at it and going man people are way behind what you need to be doing is taking those success indicators, and making sure that you're going to have the retirement that you plan for if you're one of those people, you have made great decision junior at the celebration point. We want you to consider taking this abundance cycle to the next level. Consider talking to having if you get to assets that you need to have somebody look over your shoulder, make sure you're doing things right. We love free to talk to the family at abound. Wealthy money guy so reach out to us. It's money. God dot com. You can go to the contact us page bound wealthed dot com. We have a contact us page, and then don't forget guys we have a subscriber count up here with YouTube. I want you to sign up to by subscribing to our channel. Also sign up for the notifications, click that Bill, let us know you're happy, and then don't forget to go to money dot com. Give us your Email address and zip code. So we can get deliverables out to you, as well as let, you know, when we go being your neck of the woods because hopefully, we will take this road in the next eighteen months or so anything else left. Thank you. Now that this is awesome. In an you guys where you just so value. You allowing us to come here and share this information with if you have something, you want us to talk about or something you wanna tell us about or something, you want to get our take on go out to the website, money guy dot com. You can ask question right there. That's where we get these topics from NBA. We do a live stream every other Tuesday, and you're going to notice a lot of those QNA's or go start showing up on YouTube, so well. So get your questions in there come join us, it's a lot of fun. You also get to see behind the scenes and see what complete goof-balls we are. So I'm your host Brian Preston, Mr. Bohannon. We'll be back soon. The money guy podcast is hosted by Brian Preston. Brian Preston is. The principal with abound, wealth management abound, wealth. Management is a registered investment advisory foam regulated by the security and Exchange Commission in accordance and compliance with the securities laws and regulations abound, wealth management, does not run to offer to render penalized investment attacks vice through the money guy podcast. The information provided is informational purposes only, and does not constitute financial tax investment illegal advice.