#YoungPeople #graduations #flexibility #CareerChanges #jobs #economy #technology Decades ago, when a young person heading into adulthood did not know what he or she was going to do for a living, perhaps that person took a trip to “find himself (or herself).” Adults, perhaps his or her parents or parents of the person he or she was dating, may have scoffed that the kid “had no direction.” (They often secretly assumed the kid had no ambition). But in today’s new world, “having no direction” will not only be common among young people, it may be an advantage. The job market of the future is uncertain. AI and other technology will make once necessary jobs obsolete. It likely will create other types of jobs, many of which we don’t know about yet. The question then becomes: how does one prepare for such uncertainty? The one thing any young person can do, if it does not come naturally, is to become flexible. One becomes flexible by presuming he or she will change careers multiple times. It’s been said that corporations are people, too. Corporations must be flexible to survive changes they may not yet know are coming. People must do the same thing. When pursuing education, study something you love, without regard for how it will apply in the job market. This isn’t to say that a person should spend a small fortune – God forbid going into debt – on an education that will be “useless” for employment. But, today, no matter what a person is educated to do, it may not be what the person will do for a living. If one hears a graduation speech that advises one to “find his or her passion,” it may good advice in these times. Passion didn’t always pay bills, but with uncertainty, the student presumably gets some enjoyment by finding his or her passion. Along with flexibility, a person will also have to be bold. He or she may have to try things he or she had never thought he or she would do. Boldness, combined with hard work, often leads to innovation. He or she may have to keep reinventing a working persona throughout life. Finally, the old advice of “find something and stick with it” may no longer apply. Certainly, if something works you should stick with it, as “Cora” said in the old coffee commercial. But, if you can see that what you are doing is going to change, or go away, you need to look for something else before the change arrives. If you can anticipate change from where you sit, your employer will eventually see it, too. Keep learning new skills. As a young person with an entire life ahead, constant learning will not only be desirable, but mandatory. So, as one embarks on adulthood, the world you see today will likely not be the same as what you will see throughout your life. Analyze the cost of any job. Will the cost of commuting etc. be worth the paycheck you get? Prepare, but don’t have your heart set on one thing. Don’t be afraid, though uncertainly may try to overwhelm you. And, always be ready for change, because change will be a constant. By whatever means necessary, be optimistic. Pessimism will feed on itself, but optimism always provides an appetite for new adventure. Truly, if you are young, have a nice life. Peter
#saving #investing #stocks #mutual funds #bond funds #equity funds #FeedThePig A man rides on the step of an ice cream truck. He spots another man, dressed as a piggy bank, walking down the street. He jumps off the ice cream truck, tackles the pig-man, and drops some cash in the slot on the pig-man’s head. “Same time next week?” the man asks. “Well, of course,” says the pig-man. This TV ad from feedthepig.org is meant to encourage people to save a little regularly, preferably every week. The ad is supposed to alert savers that it takes effort and discipline to be a good saver. You have to commit to it every week – or however often you get a paycheck. You have to make sacrifices and take risks, like riding on the step of a moving truck and tackling the pig-man. In this economy, however, trying to save can be difficult. Gasoline prices are high, as are food prices, rent and other living expenses. To be able to save, however little you can, from each paycheck requires intentionality. The pig-man, too, is symbolic. If you really want to save, you should put the money into a savings account, rather than a piggy bank or under a mattress. As the savings account grows, you may want to graduate to a certificate of deposit (CD), which generally pays a bit higher interest than the savings account. But, you have to tie up your money for the period of the CD, lest you pay a penalty. Given that you must tie up your cash, the difference in interest rates between the accessible savings account and the CD has to be worth it. You should discuss this with your banker before making that commitment. As your CDs grow in value, you can then think about other investments that require small risk, but much better return. Mutual funds fit this category, as do bond funds, equity funds etc. You may need better advice than your banker can give you for these vehicles. That advice often comes at a cost so, again, make sure the cost is worth it before embarking on that journey. Your financial adviser may encourage you, as your account grows, to invest in individual stocks. Make sure the money you put into those is money you can afford to lose. If you go this route, you may have a mix of losses and gains. Some losses can be deducted from your income tax return. If you go this route, resist the temptation to invest in “the next big thing.” These are shiny objects that don’t always materialize as promised. If your adviser comes off as an aggressive salesperson trying to get you into “the next big thing,” find a different adviser. Building wealth is not easy. It takes effort. It takes sacrifice. But, if you do it successfully, managing risk along the way, it will pay off over time. Also, as you make the difficult wealth journey, make sure your big purchases, like a home, are worth your effort. And, it’s OK to enjoy some ice cream or other pleasures along the way, providing that you spend with care. Peter
#days #eras #labels #innovation #inventions #AI #technology The 1950s and early 1960s were considered “Happy Days,” as the 1970s TV show called them. The late 1960s and early 1970s might have been considered “Hippie Days.” The late 1970s and early 1980s might be called the “Early Tech Days.” One could describe later periods in various advanced degrees of “Tech,” as the technology revolution proceeded. But, how would you describe our “Days” today? Technology continues to advance. AI is coming, if not already here. Many of today’s jobs will either not exist, or be completely revised, in coming years. The way we interact with institutions and other people changes by the minute. Decorum, in many instances, has been upended. Individual security – physical and economic – seems to be deteriorating. So, what will we call this era? Even more pressing: how will we live through it? Age will become an important factor. The younger a person is, the more thought must be given to life decisions. The younger the person, the fewer the expectations there will be for life to be predictable. The way to survive currently and in the future will be unlike those of the younger generation’s parents or grandparents. Some principles should remain intact: spend less, save more, be kind to one another etc. But, even following those principles, what practical outcome will a young life have over the next decades? We may live longer. We may have fewer children. Old institutions of household, employment and lifestyle may disappear. How much education we may need will also vary. Expensive education will be, well, optional, particularly if the payoff isn’t worth the cost. Still, in such a time of upheaval, innovators will emerge. These innovators will have to reinvent not the wheel, but the circle of life. Will these inventions pay off for everyone? Will everyone be able to assimilate into this new life? Perhaps not. But, determination, introspection and pure grit will help people not only survive but also thrive in this new environment. Not only will people have to choose their paths more carefully, but they may also have to change direction quickly, and numerous times, throughout their lives. The old song says, “Happy Days Are Here Again.” But the “Happy Days” of decades past will not return, no matter how much we may want them to. How we label these times may be irrelevant, though it may be a fun academic exercise. How one finds his or her place in these times will be far more important. Peter
