MARIA: WELCOME BACK, SAVING FOR
RETIREMENT, HOW ARE MILLENNIALS
DOING IT?
ACCORDING TO NEW SURVEY 34% OF
MILLENNIALS BELIEVE THEY ONLY
NEED $200,000 OR LESS TO RETIRE
COMFORTABLY, ACCORDING TO AARP
THAT'S SIMPLY NOT TRUE.
JOINING US RAMSEY, AUTHOR OF
RETIRED INSPIRED, CHRIS HOGAN IS
HERE.
>> THANK YOU.
MARIA: HARD TO PUT ONE GENERAL
NUMBER ON HOW YOU NEED TO LIVE.
>> EVERYBODY IS GOING TO BE
DIFFERENT.
BUT TO MILLENNIALS, I STILL HAVE
WORK TO DO, MARIA, IF THEY STILL
THINK 200,000 IS ENOUGH, I HAVE
I CAME HOME A NEWBORN FOR
40-PLUS YEARS, PAID LESS THAN
20,000 FOR IT AND IT SOLD FOR
750,000 AND THAT WAS HARDLY
ENOUGH AND SO I THINK THAT
WILL GET RETIREMENT FUND OR
SOCIAL SECURITY WHICH WON'T BE
THERE EITHER.
WHAT DOES IT TAKE TO RETIRE
COMFORTABLY WITH LIFE EXPECTANCY
THAT'S GOING TO TAKE YOU INTO
THE LATE --
MARIA: HUNDREDS.
>> 90 YEARS PLUS.
>> I TELL PEOPLE, YOU NEED TO
KNOW YOUR NUMBERS, KNOW YOUR
PLAN AND KNOW WHO TO TRUST, WHAT
I MEAN BY THAT, YOU HAVE TO HAVE
AN IDEA WHAT IS IT THAT YOU WANT
TO LIVE ON PER MONTH.
I DEVELOPED A FREE TOOL AT MY
WEBSITE CHRIS HOGAN 360.COM
WHERE YOU PLUG IN NUMBERS TO
FIGURE IT OUT.
HOW MUCH DO YOU WANT TO LIFE ON
FOR MONTH AND HOW MANY YEARS YOU
PLAN TO RETIRED AND HOW MUCH YOU
HAVE SAVED, THAT GIVES YOU A
BALLPARK OF NUMBER AND IT WILL
SHOW YOU HOW MUCH YOU NEED TO BE
INVESTING TO GET OUT THERE.
>> YEAH, WHAT WOULD HAPPEN IS,
FOR EXAMPLE, I MET WITH MY
FINANCIAL ADVISERS AND I'M IN
REAL ESTATE, I TRY TO DIVERSIFY
BUT I'M TAKING RISKS TO EARN 2,
3, 5% AND I'M FINE TAKING
PRINCIPAL RISK, IF I HAD TO
RETIRE AND HAD THIS AMOUNT OF
PRINCIPAL, I COULD NOT AFFORD TO
HAVE A LOSS TO INVESTMENTS HAVE
TO BE SAFER.
SO THEY ARE GOING TO PAY LOWER
INTEREST RATES, THE PRINCIPAL
AMOUNT HAS TO BE A LOT LARGER
THAN IT WOULD HAVE THREE DECADES
AGO.
>> RIGHT.
>> BUT EVEN AVERAGE AMERICAN,
ONLY 39% OF AMERICANS ARE ABLE
UNEXPECTED EXPENSE.
NEARLY 1 AND 5 WOULD PUT EXPENSE
ON A CREDIT CARD.
>> THIS SCARES ME BECAUSE 61%
COULD NOT PAY FOR EMERGENCY.
THAT'S ONE WATER ISSUE OR MOTOR
ISSUE AWAY.
THAT'S THE PROBLEM.
SALARY IN CASE YOU NEED TO GET
LAYED OFF.
YOU NEED TO CHANGE THE MIND SET
OF MILL ENAILS, I THINK, IS IT
THAT THEY DON'T KNOW THAT THEY
CAN SAVE MORE MONEY OR AFRAID TO
PUT MONEY IN THE MARKET OR FIND
A HIGHER YIELDING IN.
MARIA: THEY DON'T HAVE THE
MONEY.
>> UNDERSTAND THAT YOU NEED TO
HAVE A CUSHION BECAUSE LIFE IS
GOING TO HAPPEN.
YOU NEED TO BE PREPARED.
IF YOU'RE NOT, YOU'RE GOING TO
REACH FOR DAD TO TAKE CARE OF
THE EMERGENCY.
>> THE CHALLENGE HERE, LET'S
SAY, NEW YORK CITY, PEOPLE ARE
SO FINANCIALLY STRAINED LIVING
CALIFORNIA, YOU KNOW, NEW YORK,
YOU KNOW, OTHER HIGH COST OF
LIVING CITIES, WASHINGTON, D.C.,
MILLENNIALS DON'T HAVE ANY MONEY
TO SAVE.
>> RIGHT.
WE HAVE 76% OF PEOPLE LIVING
PAYCHECK TO PAYCHECK.
I THINK IT BOILS DOWN TO
YOU HAVE TO DO THINGS TO CREATE
THE SAVINGS ACCOUNT.
FOR EXAMPLE, CUT BACK IN BUDGET.
LIKE WHEN YOU BUDGET, YOU GIVE
YOURSELF A RAISE, GIVE YOURSELF
MORE CONTROL BUT ALSO SELL SOME
GARAGES.
TAKE ON AN EXTRA JOB.
>> MY FATHER DID IT --
>> THE FIRST HURDLE CONVINCING
MILLENNIALS TO SAVE BUT ONCE YOU
GET PAST THAT, IS THERE ALSO AN
ISSUE CONVINCING MILLENNIALS
THAT, LOOK, IF YOU'VE GOT
$10,000 OR SO, IT'S WORTH
PUTTING IN THE MARKET FOR 40
YEARS VERSUS MAYBE EVEN, YOU
KNOW, BUYING A HOME BECAUSE
YOU'RE NOT GOING GET THE KIND OF
RETURN ON HOME THAT YOU MIGHT
GET IN THE STOCK MARKET?
>> NO, WITH INVESTING, COMPOUND
INTEREST IS ONE OF THE THINGS
WHICH I CAN EXPLAIN TO ALL OF
FOR YOU IT'S NOT JUST
MILLENNIALS, GEN XERS, GEN GEN Y
MILLENNIALS, GEN XERS, GEN GEN .
>> IF YOU'RE IN THE MARKET FOR
40 YEARS YOU CAN WITH STAND --
YOU'RE INVESTING IN SO YOU KNOW
YOU WILL COME OUT OKAY.