#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
#WealthManagement #jobs #JobSecurity #JobChanges #investments #savings “Alex” is about in his early 20s. He’s just gotten a promotion, and can now think about his financial future. He hires a good financial adviser who sets up three accounts for him: one for now, one for later and one for retirement. Alex is, the TV ad says, a real client of JP Morgan Wealth Management. The scenario of Alex laid out in the ad seems perfectly normal. A young man starts a promising career and begins to save for life’s eventualities, like a home (“barndominium,” according to the ad), a family and, of course, retirement. But, as discussed often here, that scenario is hardly typical for a 20-something today. If Alex is completely independent from his parents’ financial assistance, he’s very lucky and very unusual. If Alex can get through, say, 40 more years of working, advancing in his career, saving and investing his money wisely – with an adviser’s help, of course – he will be among a small percentage of people in his generation who will do so. For most of his and other generations, careers will veer in wild directions over time. Technology, particularly AI at the moment, will change the employment landscape. Some jobs will be created. Others will be eliminated. It’s unclear in the ad what Alex does for work (he looks as if he’s in construction), but just about every workplace will change over his adult life. And most, if not all, of those changes will come when employees are not expecting them. That may mean people like Alex, if they can start saving and investing now, should. But, they may need that money much sooner than they had planned. Alex may think he can plot his career now. But, more than likely, his best laid plans will be disrupted through no fault of his own. Some disruptions can be planned for. For example, if you see things about your job, or how you do it, that you believe will change in your working life, do what you can to mitigate or even take advantage of those changes. If you see productivity gaps in what you do, chances are your employer will eventually see them, too. When that happens, it may not bode well for you. Try your best to fill those gaps. Still, you cannot stop the progress of technology. It is like running water. You may be able to divert it (perhaps to your advantage), but you cannot stop it. If you can anticipate it, you’re ahead of the game and can make changes. But, more than likely, you will be surprised at least once in your career that the job that you like will change. Those changes likely will not benefit you – at least immediately. So, if Alex in the ad is a real person, his financial adviser should be talking to him about all eventualities that he may see in his working life. As “The Gambler” put it in the Kenny Rogers song: “The best thing you can hope for is to die in your sleep.” Alex’s adviser should be telling him: The best thing he can hope for is to work as long as he wants to, advance when opportunity comes and retire on his terms. If that happens, Alex will certainly be very fortunate. Peter
