What advice are you giving the young people you know?

Today was the start of the Second World War, on the 3rd of Sept. 1939, in response to Hitler's invasion of Poland, Britain and France, declare war on Germany.  Much has been written about the war, and the aftermath and the changes made to the world map once the war was finished. 

In 1965, the year I graduated from high school, the yearbook committee, of which I was a member, chose to celebrate 20 years of World Peace as our theme.  Looking back we were full of hope for the future  and we optimistically sent letters out to World leaders and War Hero's asking them a series of questions. One of the questions was:

What brief message would you send  to young people of today?

The Adults around us were surprised (but we were not--remember we thought we could change the world), that we received replies from all those we wrote to for this theme. I recently went to my 50th High School Reunion and in preparation, I looked at the yearbook and thought I might share a few of the responses we received:

Lester Pearson, Prime Minister of Canada, said: 'I urge young people of Canada, first to purse their education as long as they possibly can for today's and tomorrow's challenges require the best training possible to meet them adequately in order to contribute to our country's growth and security.
Secondly, Canada's youth should always maintain an informed interest in political matters and in national and international affairs so that by voice and actions they may give their assistance to those responsible  for formulating policies that govern Canada and the world at large.'

Walt Disney, founder of Disneyland said, My advice to every youngster in the civilized world today is "Get education."  In these trouble times it is imperative that every child receives as much educational training as he possibly le can. The world of business is becoming more competitive with each passing day and the boy or girl with a college degree holds a trump card in the game of employment. I think that every youngster preparing to finish high school should give serious consideration to going to college.I don't mean just "going through"either. I mean taking advantage of every possible minute for improving his mind and absorbing knowledge that will b e need in the career years ahead.

Chester W. Nimitz Chief Commander, Submarine Force Atlantic Fleet said, 'Use your best efforts to obtain the best possible education make full use of the educational facilities in your area and with the limits of your means. Keep yourselves in the best possible physical condition. While good health does not necessarily ensure success, bad health will almost certainly prevent you from reaching your maximum in your community.Become completely familiar with your government, both local and national, and prepare yourselves to participate actively in the the affairs of your government when you reach voting age. Remember that citizenship also involves responsibility for defending the freedom that make possible your citizenship. Prepare yourselves to defend the freedoms of your country.,"

These people were extremely busy, yet they took the time to respond to a request from a group of students they did not know, from a small town on Vancouver Island.  We are all busy, but maybe we should take the time to consider the next generation, who surely must have questions. My question to the Boomers out there is what advice are you giving the young people you know?

Spending habits how do you compare?

In Canada the Federal government tracks our spending by category, if you are planning to save for retirement then it is a good idea to compare your spending with the national average. Here is how Canadian families spend their household income. How do you compare?

Table of household spending  in annual dollars Household expenditures 2010 2011 2012 2013 Total expenditure   $ 71,282.00  $ 73,457.00  $ 75,443.00  $ 79,012.00 Total current consumption  $ 53,724.00  $ 55,151.00  $ 56,279.00  $ 58,592.00 Food expenditures  $   7,823.00  $   7,795.00  $   7,739.00  $   7,980.00 Food purchased from stores  $   5,693.00  $   5,588.00  $   5,572.00  $   5,754.00 Food purchased from restaurants  $   2,130.00  $   2,207.00  $   2,167.00  $   2,226.00 Shelter  $ 14,997.00  $ 15,198.00  $ 15,811.00  $ 16,387.00 Principal accommodation  $ 13,598.00  $ 13,991.00  $ 14,373.00  $ 14,904.00 Rented living quarters  $   3,096.00  $   3,228.00  $   3,530.00  $   3,252.00 Owned living quarters  $   8,268.00  $   8,440.00  $   8,542.00  $   9,275.00 Water, fuel and electricity for principal accommodation  $   2,234.00  $   2,323.00  $   2,301.00  $   2,377.00 Other accommodation  $   1,399.00  $   1,208.00  $   1,438.00  $   1,483.00 Household operations  $   3,846.00  $   4,135.00  $   4,111.00  $   4,328.00 Communications  $   1,736.00  $   1,825.00  $   1,847.00  $   1,998.00 Household furnishings and equipment  $   1,957.00  $   2,027.00  $   2,183.00  $   1,992.00 Household furnishings  $   886.00  $ 864.00  $   1,001.00  $   849.00 Household equipment  $   943.00  $1,041.00  $   1,046.00  $   1,009.00 Household appliances  $  416.00  $  448.00  $     474.00  $     465.00 Clothing and accessories  $   3,455.00  $   3,360.00  $   3,461.00  $   3,550.00 Transportation  $ 11,059.00  $ 11,229.00  $ 11,216.00  $ 12,041.00 Private transportation  $ 10,006.00  $ 10,152.00  $ 10,087.00  $ 10,825.00 Public transportation  $   1,053.00  $   1,077.00  $   1,128.00  $   1,216.00 Health care  $   2,214.00  $   2,211.00  $   2,285.00  $   2,407.00 Direct health care costs to household  $   1,636.00  $   1,584.00  $   1,579.00  $   1,662.00 Health insurance premiums  $ 578.00  $ 626.00  $ 706.00  $  745.00 Personal care  $    936.00  $   1,082.00  $   1,194.00  $   1,229.00 Recreation  $   3,576.00  $   3,711.00  $   3,773.00  $   3,922.00 Recreation equipment and related   $     911.00  $    862.00  $    916.00  $  981.00 Home entertainment equipment and services  $    490.00  $    413.00  $   331.00  $  296.00 Recreation services  $   1,589.00  $   1,750.00  $   1,823.00  $   1,951.00 Recreational vehicles and associated services  $   586.00  $     86.00  $   703.00  $     694.00 Education  $   1,152.00  $   1,216.00  $   1,386.00  $   1,518.00 Reading materials and other printed matter  $    198.00  $     221.00  $   214.00  $   183.00 Tobacco products and alcoholic beverages  $   1,198.00  $   1,199.00  $   1,274.00  $   1,331.00 Games of chance  $     7.00  $     166.00  $    202.00  $    160.00 Miscellaneous expenditures  $   1,167.00  $   1,602.00  $   1,430.00  $   1,563.00 Income taxes  $ 11,936.00  $ 12,442.00  $ 13,060.00  $ 13,891.00 Personal insurance payments and pension contributions  $   4,013.00  $   4,191.00  $   4,272.00  $   4,562.00 Gifts of money, support payments and charitable contributions  $   1,609.00  $   1,673.00  $   1,831.00  $   1,968.00

What we think retirement will look like

One survey  in 2014, found there is a disconnect between the expectations of workers and the reality reported by those who have actually retired.

For example, 65% of workers surveyed expect to continue working for pay during retirement. In contrast, 27% of retirees actually do continue working for pay.

Workers who have saved for retirement generally have not done so for their entire careers. Only 35 percent of workers 55 and older indicate they have saved for 30 years or longer, although an additional 34 percent report having saved for 20 to 29 years. Half (52 percent) of those ages 45 to 54 say they have saved for at least 20 years (Figure 16). Retirees typically report having saved for retirement for 20 years (midpoint). 

Expectations about employer-provided health insurance appear to be more on target. Forty-two percent of workers Expect employer-sponsored retirement savings plans to be a major source of retirement income; 19% of retirees report that employer-sponsored retirement savings plans are a major source of retirement income.

And interestingly, only 33% of workers expect Social Security to be a major source of retirement income, while 62% of retirees reported that Social Security actually is a major source of retirement income.

When preparing for retirement, it’s critical to form realistic expectations.

Six in 10 retirees (60 percent) indicate they did some type of financial planning for retirement. Forty-two percent of these retirees say they began to plan 20 years or more before they retired, and another 27 percent report beginning to plan between 10 and 19 years before retirement. However, 11 percent say they started planning five to nine years before retirement, and 14 percent started less than five years before that point 

Workers recognize they need to save more to ensure a comfortable retirement, so why aren't they doing so? Most— 53 percent—say they simply can’t afford it due to the cost of living and the press of day-to-day expenses. Other reasons for not saving, or not saving more, for retirement include: 
 Currently unemployed or underemployed (14 percent). 
 Paying off non-mortgage debt (6 percent). 
 Paying off a mortgage or housing expenses (5 percent). 
 Education expenses (5 percent). 

However, 1 in 10 (10 percent) say they don’t need to save or save more. 

Source: EBRI, 2014

Did you know living longer may be bad for society?

This is interesting, living longer should be good for us, but evidently there is a problem with a whole bunch of us living longer. The following is part of an on-line interview with a catastrophist. A catastrophist is a person who specializes in studying the risk to society as people live longer. The entire interview is here

Dr. Woo, a Cambridge-trained mathematician and MIT-trained theoretical physicist who now works for the London-based consultancy RMS, spends his days thinking about catastrophic risks. Woo is one of the world’s best-respected “catastrophists,” and RMS—short for Risk Management Solutions—helps insurers and reinsurers calculate the likelihood of disastrous earthquakes, hurricanes, droughts, terrorist attacks, financial crises, and other hazards. Lately, Woo has been thinking a lot about the risks posed by climate change, which could have a huge impact on the catastrophes of the future, altering sea levels, weather patterns, migration patterns, and much more. But Woo’s other major preoccupation these days is the risks posed by people living longer.

In his closing statement, Dr. Woo says:

Well, cancer does not make that much difference, either; if an ageing person does not die of cancer, they will die of heart disease. The real issue is that the ageing process can be arrested. The biggest cause of death is not cancer or heart disease. The biggest cause of death is ageing. If you can slow down the process of ageing, you are slowing down all causes of death.

This is new territory for mankind. There is an interesting book called “Positively Ninety.” It is a series of interviews with nonagenarians who are all very lively. My favourite is the cover woman, who actually plays competitive Scrabble at the age of 90. She is very sharp, has a very positive attitude towards life, and a very good network of friends and family. If you read these interviews with positive nonagenarians, you will get a glimpse into the future, because a high proportion of people will be just like that. The 90s will be like the 80s today. In addition, it will become commonplace to reach 100. In fact, for a baby born today, the expectation is already that they will live to 100.

Take the high road!

Ever been angry, don't be!

Not ever. 

It's not worth it. It's not necessary. There is always a higher road. 

Besides, at any given moment, beyond the curtains of time and space, there's a legion of angels within, anxious to do your bidding, who can best reach you when you're not angry. 

So be the coolest and always find a way to take the high road.