Ken: Daria, I’m so excited about what we’re going to Washington in DC I can’t tell you for home. A friend of ours who runs a big company said you’re got to come talk to our generation accent wires. Our young people because they really need some help because this is our friends saying financial planners and brokers are sort of over looked the youngsters as a relation to financial plans, so I better go home.
Daria: Well and there’s a very good reason why you get overlooked if your generation extra “y”. They think you don’t have any money so why waste anytime trying to talk you and they’re going on savings plan.
Ken: And that’s why—
Daria: They want big bucks to invest.
Ken: And that’s why a lot of the youngsters I say youngsters everybody is younger than me. Generally, I have a low propensity for risk taking because they don’t have a lot of money to lose and consequently our spending money on another stuff and there’s all my savings. So it’s like where did we start?
Daria: Not much savings.
Ken: Not any cent.
Daria: Try zip savings and a lot of debts between student loans, credit cards, the gen exerts with first mortgages etcetera and basically both generations are much more on the whole now and I’m not trying to lump all of your one group, but mostly spenders very few of you are savers and your facing much bigger challenges than your parents generations face than we face.
Ken: And they consume our things like so and —
Daria: Because it is much tougher to get a few bucks away.
Ken: And they’re much more concerned about things like Social Security in fact, I was talking to a young fellow the other day and he said, “The chances of Social Security being here like the chance of Dennis Cosinich being elected President.” Those are low ads.
Daria: Yeah, and it’s really scary if they think then we’re going to have President Cosinich and no Social Security but that’s basically what an awful lot of gen “x” and wire as you’re thinking. So —
Ken: Let’s little lecture. Little lecture to the kids.
Daria: Okay.
Ken: Payoff student loans, getting on the financial trap.
Daria: Pay off all your loans, car loans, student loans, credit card balances.
Ken: Still on the mid generation somebody on kids —
Daria: Yeah, well because they learn from us, the original meet generation.
Ken: And don’t forget we’ve been talking about even the parents who are bad savers too. Hey kids, be sure to have three to six months savings and I won’t even say income. I’ll say take home. Three to six months take home, an emergency savings just in case the job doesn’t go right. And just in case you get behind the student loans, start saving.
Daria: Which is why you need to pay yourself first and if you’re in a 401(k) plan where you’re currently working and you don’t have anything outside of that 401(k) plan then now is the perfect time of year to walk back into the benefits office and readjust even if you only put half as much in the 401(k) so that you put the rest of it into a savings account because if you have to invade the 401(k) for an emergency, now you get taxes and penalties.
Ken: Hold on. I’m going to give an example because people say, “Yeah, at the age 65 I’ll never have enough money I don’t set.” Hold on there. Let me give you a figure. At the age 25, if you start with zero bucks, none, zero to start. And you can invest it every year at about eight percent that’s not totally unreasonable of the mutual fund to good neutral fund. $286.00 a month I know it’s sounds like a lot from age 25 starting from zero, $286.00 a month at eight percent will give you how much your retirement?
Daria: Don’t ask me. I don’t have my calculator.
Ken: No, they calculated.
Daria: They are calculating.
Ken: You’re right a million dollars.
Daria: So please we beg you stop spending, start saving today.
Ken: And we’ll talk the B words some other time. You’ve have enough today. The budget we’ll talk later.
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