53% of millennials expect to be millionaires. The data suggest that’s delusional.
Reports show that millennials are making and saving less than previous generations, likely setting them up to retire later in life—or not at all.
Most millennials aren't worried about their future finances despite data suggesting they should be.
A 2018 survey conducted by TD Ameritrade shows 53 percent of millennials expect to become millionaires, and they expect to retire, on average, by age 56. That optimism doesn't seem to reflect the reality of other numbers showing that social security won't be able to pay out full benefits by 2034, the group has a collective student loan debt of more than $1 trillion, and young people are now earning relatively less than previous generations.
“I'm not exactly sure where all of this positive sentiment is coming from," Yahoo Finance's Ethan Wolff-Mann said. “I'm not sure whether the stagnant wages are contributing to this or anything like that. I do think … people [are] just hoping that something comes along that they walk into luck."
— Austen Allred (@AustenAllred) April 5, 2018
The earning power of 30-year-olds has been declining for the past few decades. Since 1945, the percentage of this age group that earns more than their parents has also been falling, according to Deutsche Bank's Torsten Slok.
In 2016, the median American born in the 1980s had 34 percent below the level of family wealth than earlier generations had at the same age, according to a report from the Federal Reserve Bank of St. Louis.
Millennials are also less likely and able to save for retirement than previous generations. On average, millennials don't plan to start saving for retirement until age 36, according to the TD Ameritrade survey. Starting to save at that age would mean they'd miss out on crucial years during which compound interest could help build a sizable retirement fund. (See: How to become a millionaire)
Still, not all millennials wield a blind optimism: 28 percent said they don't plan to retire, while about 20 percent said they'd never be able to pay off student loans.
In a Politico article on millennial retirement, Alicia H. Munnell, director of the Center for Retirement Research at Boston College, writes that millennials face three major setbacks compared to previous generations: the declining availability of retirement plans offered by employers, greater student debt, and a lower rate of home ownership, which is a valuable retirement asset.
It's not all a grim forecast, though. Millennials could be reasonably optimistic about the fact that lifespans are generally increasing, meaning a slightly later retirement age wouldn't necessarily mean less golden years, and also that increasing rates of young people are obtaining higher education.
“Millennials are graduating at record rates, and it's great to see that like most previous generations of college students, young people are optimistic about the future. On average, survey respondents expect to land a job in their chosen field and be completely financially independent by age 25," notes JJ Kinahan, chief strategist for TD Ameritrade. “This is a financially optimistic group that's feeling positive about the economy, the job market and their own plans. However, they will need to develop saving and investing habits that will help them reach some pretty big goals."
As long as younger people are prepared to work hard and retire a bit later, there's still room for optimism.
“...My research shows that the vast majority of millennials will be fine if they work to age 70," writes Munnell. “And although that might sound old, it's historically normal in another sense: Retiring at 70 leaves the ratio of retirement to working years the same as when Social Security was originally introduced."
What would happen if you tripled the US population? Join Matthew Yglesias and Charles Duhigg at 1pm ET on Monday, September 28.
The idea of 'absolute time' is an illusion. Physics and subjective experience reveal why.
- Since Einstein posited his theory of general relativity, we've understood that gravity has the power to warp space and time.
- This "time dilation" effect occurs even at small levels.
- Outside of physics, we experience distortions in how we perceive time — sometimes to a startling extent.
Physics without time<p>In his book "The Order of Time," Italian theoretical physicist Carlo Rovelli suggests that our perception of time — our sense that time is forever flowing forward — could be a highly subjective projection. After all, when you look at reality on the smallest scale (using equations of quantum gravity, at least), time vanishes.</p><p style="margin-left: 20px;">"If I observe the microscopic state of things," writes Rovelli, "then the difference between past and future vanishes … in the elementary grammar of things, there is no distinction between 'cause' and 'effect.'"</p><p>So, why do we perceive time as flowing <em>forward</em>? Rovelli notes that, although time disappears on extremely small scales, we still obviously perceive events occur sequentially in reality. In other words, we observe entropy: Order changing into disorder; an egg cracking and getting scrambled.</p><p>Rovelli says key aspects of time are described by the second law of thermodynamics, which states that heat always passes from hot to cold. This is a one-way street. For example, an ice cube melts into a hot cup of tea, never the reverse. Rovelli suggests a similar phenomenon might explain why we're only able to perceive the past and not the future.</p><p style="margin-left: 20px;">"Any time the future is definitely distinguishable from the past, there is something like heat involved," Rovelli wrote for the <a href="https://www.ft.com/content/ce6ef7b8-429a-11e8-93cf-67ac3a6482fd" target="_blank"><em>Financial Times</em></a>. "Thermodynamics traces the direction of time to something called the 'low entropy of the past', a still mysterious phenomenon on which discussions rage."</p>
The strange subjectivity of time<p>Time moves differently atop a mountain than it does on a beach. But you don't need to travel any distance at all to experience strange distortions in your perception of time. In moments of life-or-death fear, for example, your brain would release large amounts of adrenaline, which would speed up your internal clock, causing you to perceive the outside world as moving slowly.<br></p><p>Another common distortion occurs when we focus our attention in particular ways.</p><p style="margin-left: 20px;">"If you're thinking about how time is <em>currently</em> passing by, the biggest factor influencing your time perception is attention," Aaron Sackett, associate professor of marketing at the University of St. Thomas, told <em><a href="https://gizmodo.com/why-does-time-slow-down-and-speed-up-1840133782" target="_blank">Gizmodo</a></em>.<em> "</em>The more attention you give to the passage of time, the slower it tends to go. As you become distracted from time's passing—perhaps by something interesting happening nearby, or a good daydreaming session—you're more likely to lose track of time, giving you the feeling that it's slipping by more quickly than before. "Time flies when you're having fun," they say, but really, it's more like "time flies when you're thinking about other things." That's why time will also often fly by when you're definitely <em>not</em> having fun—like when you're having a heated argument or are terrified about an upcoming presentation."</p><p>One of the most mysterious ways people experience time-perception distortions is through psychedelic drugs. In an interview with <a href="https://www.theguardian.com/books/2018/apr/14/carlo-rovelli-exploding-commonsense-notions-order-of-time-interview" target="_blank"><em>The Guardian</em></a>, Rovelli described a time he experimented with LSD.</p><p style="margin-left: 20px;">"It was an extraordinarily strong experience that touched me also intellectually," he said. "Among the strange phenomena was the sense of time stopping. Things were happening in my mind but the clock was not going ahead; the flow of time was not passing any more. It was a total subversion of the structure of reality."<br></p><p>It seems few scientists or philosophers believe time is completely an illusion.</p><p style="margin-left: 20px;">"What we call <em>time</em> is a rich, stratified concept; it has many layers," Rovelli told <em><a href="https://physicstoday.scitation.org/do/10.1063/PT.6.4.20190219a/full/" target="_blank">Physics Today</a>.</em> "Some of time's layers apply only at limited scales within limited domains. This does not make them illusions."</p>What <em>is</em> an illusion is the idea that time flows at an absolute rate. The river of time might be flowing forever forward, but it moves at different speeds, between people, and even within your own mind.
Dominique Crenn, the only female chef in America with three Michelin stars, joins Big Think Live.
Having been exposed to mavericks in the French culinary world at a young age, three-star Michelin chef Dominique Crenn made it her mission to cook in a way that is not only delicious and elegant, but also expressive, memorable, and true to her experience.
Controversial physics theory says reality around us behaves like a computer neural network.
- Physicist proposes that the universe behaves like an artificial neural network.
- The scientist's new paper seeks to reconcile classical physics and quantum mechanics.
- The theory claims that natural selection produces both atoms and "observers".
Vanchurin interview:<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="539759cbfd8fcd5b6ebf14a3b597b3f9"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/bmyRy2-UhEE?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
Vanchurin on “Hidden Phenomena”:<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="18886ffd5e5840bb19d4494212f88d82"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/2NDVdNwsHCo?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>Vitaly Vanchurin speaking at the 6th International FQXi Conference, "Mind Matters: Intelligence and Agency in the Physical World." The Foundational Questions...
43% of people think they can get a sense of someone's personality by their picture.
If you've used a dating app, you'll know the importance of choosing good profile pics.
Quarantine rule breakers in 17th-century Italy partied all night – and some clergy condemned the feasting
17th-century outbreaks of plague in Italy reveal both tensions between religious and public health authorities.