Michael Carlin

This is Michael Carlin President of Henry+Horne Wealth Management with your Manage the Funds Podcast. Today we’re going to be talking about Millennials everything about millennials. We have to understand them as a class of people. We have to understand what they’re doing economically financially because we’re trying to figure out ultimately where to put your money where it makes the most sense. Today we are joined by the talented sophisticated accomplished reporter TV personality in my opinion and opinion of thousands. Lindsay Reiser ASU graduate.

Lindsey Reiser

I know we’re going to have an applause sound effect right there right.

Michael Carlin

Everyone should be listening to your wiser with Reiser podcast.

Lindsey Reiser

They’ll get wiser if they do it’s a guarantee. When I interview people like you. I interview people who know a lot more than me about finance, physical wellness and emotional wellness. So, the same place where somebody would get this manage the funds podcast if you have an iPhone there’s a podcast app if you have an Android app and gets the Google Play you type in Wiser and Wiser with Reiser should come up with my picture see and you’ll get wiser.

Michael Carlin:

You definitely downplay your skillset because she’s talented she’s reported on finance for years. Let’s go right into it. You are the millennial expert. You are millennium. We know we’re going to  classify millennials as people in their early 20s to mid-30s and if you think about people in their early 20s to mid-30s they’re either starting to really earn and spend or they’re just really starting to kind of peek into the workforce and there’s just such a huge number of these children of baby boomers that are coming in and changing our economy. Anything broad that you want to say about the millennial the millennial experience in terms of just you know who they are broadly

Lindsey Reiser

I should give a disclaimer that I am a very black and white person when it comes to my finances and we’ll get into that a little bit more about my spending habits and that of my friends. But you know I don’t think it’s a one size fits all. I think you get 10 people into a room and you’re going to find 10 different spending habits whether it’s millennials or another age group. I do think that there are some trends that we’re seeing and I can kind of maybe explain why. I am very anal when it comes to saving money and not spending a whole lot like I have envelopes in my purse right now. I’ve always been focused but it wasn’t until the last few months that I really kicked it into gear and really put my money where my mouth is. I used to just treat my checking account like just one big pot and everything would come out of that pot. And now I have sinking funds quote unquote sinking funds and I have my envelopes for certain expenses eating out grocery etc. but really you know seeing in an Excel spreadsheet OK if traveling is so much of a priority that I need to be putting in as much as I can into travel and obviously you know you hear other podcasts like you should be saving what is it no more than 50 percent should be on what it costs to live.

Michael Carlin

I mean if I can if I could be so bold as to just throw numbers out there the financial planning numbers if we’re gonna see for a long period of time but those that are millennials 10 percent of your incomes would you like to save if you could save 10 percent of your total gross income that’s a really good start over a sustained period of time but not many people do that. You talk about your own organization, but I’ve seen with millennial clients where they are great savers and planners and they’re using technology you talked about Excel spreadsheets but there’s a lot of things out there that I see people using.

Lindsey Reiser

You also could be working with a skewed part of the population though because your clients are seeking you out in order to get their finances on track. So, you’re dealing with somebody who already has a goal of cleaning up their financial house but Mint is an app that’s huge among me and my friends I’m just using right now at Google Sheets. There’s plenty of free resources out there for budgeting documents but Mint is a big one. There are apps that will round up every purchase you made. I couldn’t name just one. I don’t use any of those because I don’t have a problem saving but I do use Mint. It’s difficult to use Mint if you are on a cash-based system because Mint is connected to your bank account. You can’t necessarily say that oh there’s three hundred and fifty dollars that I took out for the month of February for groceries. Mint doesn’t understand that it just understands that you’ve taken three hundred fifty dollars out of your bank.

Michael Carlin

So why do you use cash. That’s a whole different story. Can we do a whole segment on why you use cash.

Lindsey Reiser

It’s the you know the last five months, but it has made a significant impact on the amount that I spend, and I think it’s psychological because you see it leaving your hands. Every time you make an expenditure you write in pencil or pen on the envelope how much you have. So, you see it steadily decreasing and you say this is what I have to spend on X this month and once it’s gone I can’t spend anymore. You’re much more mindful.

Michael Carlin:

She’s a super millennial. I think that’s really impressive. Let me to take a step back to describe it for those listeners that don’t know Mint and Quicken and our software when you connect your bank accounts in your credit card accounts to certain types of software’s like those three I just mentioned. It will pull in all of your transactions. It’ll pull in things that are income classified as such. It’ll classify expenses that will go as far as to say well this Safeway expense or this Albertsons. If there are things that come in where you know if you know Lindsey, you bought a book and it was specifically for work you could then re categorize them and say you know that’s actually a work expense in the software will let you really begin to understand where your money goes. Money in money out and in for us we’re huge proponents of that and not enough people do it, but I’m seen with millennials is just a greater acceptance of an understanding of technology they’re not as afraid of it as certainly the older clients are. Which would you say that when it comes to putting in your username and password into things would you see that generationally. Maybe you’re more trusting because my older clients are like whoa oh before I connect my bank account let me really. And the millennials are like Oh no I got it done just sending the link. I’ll set it up myself. So that’s a generational difference.

Lindsey Reiser

I don’t think it’s better or worse either. I mean there could be arguments made for whether or not that’s a good thing. But I would say that’s true. You know I did see that Mint is powered by Experian. I think Experian was recently the subject of a data breach. You know you do credit monitoring and you hope for ironclad passwords and hope for the best. It doesn’t keep me up at night but maybe it should.

Michael Carlin

We promote that every one of our clients should have some credit monitoring services. I mean Experian obviously had the breach. So, if you choose to trust them that’s great. I want you to do something personally for me but not a blanket recommendation for everybody, I’m a LifeLock user and it does give me a lot of comfort. There was an instance when I used LifeLock where I then went to Best Buy to buy a bunch of computers and they said you know if you open up a best buy credit card you’ll get a huge savings. I was like you know what I’m going to I’m going to pay it off anyway I’m going to finance it but let’s go ahead and do it. Because I had LifeLock it was really hard to open up that credit card. I didn’t mind at all. So hopefully you know you’re seeing generationally people are using those credit watch services and paying for it hopefully. We think about the millennials what we’re really again trying to figure out is that if you’re if you’re listening to this podcast and you’re getting your education it’s I need to understand when the Millennials are going because maybe that’s going to help me decide where I should get educated. Should it be things more in the medical field should it be in other kinds of technological services where is the population going if you are figuring out where to invest to understand millennial habits particularly because there’s so much money that they’re really just starting to earn and spend and there’s so many of them it’s going to help in some ways dictate where you should be investing your money. So, we need to understand that. You know we had this you know real estate boom from the early 2000s and ended in 2006 where real estate prices surged high nationally and then obviously crashed. The other significant surge we had in real estate pricing came at a time where the baby boomers were all of the age where it came time for them to buy homes. It also came at a time where mortgage rates were more than 10 percent. So here you are you have massively expensive mortgages yet a huge the hugest cross-section of our U.S. population was at the stage of life where they were buying homes. And it also was something that homeownership became the trend. So you had the population the trend and if you were investing in residential real estate at that time and for a long time thereafter you’ve read the trend you understand where the population is and that’s a way to make a lot of money you know where to participate if you’re getting education you would see this and you’d say maybe I should be a real estate agent maybe I should be a mortgage broker. There’s all of that kind of stuff. So that’s what we’re looking at here. One of the things I would love to dive in and talk about is residential real estate ownership. There’s a lot written about it in there’s just as general feeling I think the majority of articles are written from the perspective of I don’t think that there are millennials or homebuyers. We think that they’re all renters. I’ve seen data that refutes that. I’m just curious where your perspective falls into residential real estate homeownership.

Lindsey Reiser

I think that we have all become wiser after the crash and we’ve seen mistakes that were made, and we don’t want to repeat those mistakes. I think having a 20 percent down is no longer just an option. I think you have to have that. Now that takes a long time to build you do. Especially when you’re paying high rent costs. I have some friends who were living at home because they also have student debt to pay off and they’re like well do I pay off my student loans or do I save for a down payment on a house. And right now, it’s 2019 housing at least here in Phoenix has rebounded and it’s quite expensive. It doesn’t really seem like the right time to get in. So, everybody’s waiting for the next crash but is that next year is that a couple of years down the road. How long am I going to have to live with my parents right.

Lindsey Reiser

Well a lot of parents are charging rent too. Some people are in the boat where OK am I going to pay my parents 400 dollars a month, but had to make the sacrifices that you have to make when you’re living with your parents or am I going to pony up an extra 500 bucks and just get a one bedroom apartment.

Michael Carlin

I think what I hear you’re saying is the 20 percent down is a huge hurdle where if you rewind the clock 10 12 years ago at that time you were able to buy. People bought a home with no money down. You had terrible credit. That’s not a good practice 20 percent down at least gives everybody a cushion just in case the real estate market gets hurt. But I’m interested in the psychological aspect of it watching friends and family having gone through the financial crisis in the residential real estate crisis. Do you have any way to kind of sum up what you saw and what you think your friends saw at that time what they saw the other people going through who were maybe freaking out losing money?

Lindsey Reiser

I think it’s overextending yourself and maybe living beyond your means. And so now I think that you’re seeing the advent of minimalism and not wanting all of your take home pay to be going toward rent or a mortgage and wanting to travel and wanting to go out to eat with your friends on the weekends wanting to do those things. What do you need for that where you need expendable cash. I think you’re learning from people’s mistakes and you’re basically saying why I’d rather have a much more modest home, so I can afford these other things.

But even now as a modest home you know you buy. A three hundred thousand dollar home you still need 20 percent down is not a small chunk of change. That takes time for top tax particularly if you are still paying off student loans.

Michael Carlin

That’s when we’re going definitely hit on student loans. We have to because it’s a huge part of the equation the millennial equation. You also brought up experiences and I want to touch on experiences because you know I’m a finance guy. I can’t help it. I can’t help it and I don’t drink coffee and people think that I do because I have high energy. I don’t spend four dollars a day on coffee and if I drink coffee I like to think that I wouldn’t spend four dollars a day on coffee because that just goes against my financial principles. But 60 percent of Millennials admit to spending more than four dollars a day on coffee. 79% will splurge to eat at the hottest restaurant in town. 69% buy clothes that they don’t necessarily need. I know I’m looking at you and I’m not accusing you saying but like generationally speaking I’m seeing the data that suggests what you said is right that there is a feeling that I need to be spending on experiences. It’s really that simple that they’re just this is this is where they’d rather as a generation focus their cash flow.

Lindsey Reiser

I would say in my experience that has been the case, aside from buying the $4.00 coffee and the clothing. For me eating out as it is a big one. I would rather take you out to dinner than buy you a birthday gift. I would rather have something that we can both share and experience and going out to eat isn’t cheap unless we’re going to a fast casual restaurant. We’re going to be spending more money. When I did my budget I kind of was shocked at how much I was spending on eating out. And I’ve tried to rein that in a little bit and it still exceeds how much I’m putting toward travel. Really when you think about it is eating out really that much more important to me than travel?  That’s a very black and white way to look at it. While I am saving quite a bit of money per month for travel. Yeah. I have had an honest conversation myself and I’ve said I don’t really want to deny myself these other day to day things that I enjoy right you know, but spending time with my loved ones it’s not like I’m going to Durant’s and I’m buying myself a martini and a steak and just staring at the four walls. This is experiences that I’m embarking on with other people I would rather not buy that new bag so that I can afford to maybe take my family out to dinner.

Michael Carlin

I bring that back to you confirm for me what’s happening with restaurants. Restaurants are you just in sheer magnitude that the numbers of new restaurants that are coming that have come out not just here in Phoenix or Tempe or Scottsdale or this greater metro area but across the country there has just been a massive influx of restaurants and some people would ask why? There’re two reasons. One real estate people who own these whether it be standalone buildings or strip centers where restaurants are located they charge astronomical rent which brings in a bunch of income for their real estate property so real estate people want restaurants number one, but they can’t have them if they can’t be supported. If you understood that millennials are spending on experiences just as Lindsay had indicated in y you could position yourself to own commercial real estate bring in restaurants and you would be able to support them hopefully if it was a good restaurant. Because millennials are there to help move that along. Then there’s the thing about cars, One way to look at it from an investment standpoint is that the automotive index again to their baseline performance for how auto stocks performed in 2018 was horrible is the second worst performing year of the market is down about 30 percent last year. So, I ask the question to myself do we had millennials to blame for this are they just ubering everywhere and they’re not buying cars. Is this really what’s happening? The numbers show that more than half of millennials are using taxis and Uber mostly Uber. Compared to 15% of baby boomers using the same services. So where do you sit on that whole spectrum.

Lindsey Reiser

I just had a conversation with myself because I live relatively close to work and you know you I’ve put in thousands of dollars in repairs to my car to 2010 and I’ve thought OK so I’m paying registration annually and I’m paying for gas and I’m now paying for all of these repairs. Is it worth it. I’ve crunched the numbers and for me owning a car still provides me the freedom to go see my parents across town. If I need to go do X Y and Z errand and so for me it does make sense to solely Uber. I will say that I will drive the car that I have into the ground and then when I am ready and able to buy another car. My goal is to do that in cash. You won’t see me in a Corvette. You won’t see me in any kind of luxury car you’re going to see me in something that I can afford because it’s taking me from point A to Point B.

Michael Carlin

That’s your opinion and it would seem that your opinion also embodies what I read generationally is happening less of desire to have those flashy cars because certainly my experience with baby boomers is lots of car leases which was a kind of a newer financial innovation for when they were really starting to earn money and drive when they were of millennial age and big cars big Mercedes very expensive cars. Are you seeing it generationally?

Lindsey Reiser

I have friends who have recently bought expensive cars who can afford that with their income. Once you have an expensive car payment What are you giving up. And so that friend that has that expensive car payment might not be going to Europe like I am in a few months. You know you don’t have you have a finite amount and you have to decide well how much is going to go to that and why am I going to sink money into a depreciating asset.

Michael Carlin

You are making my heart sing. I do think that because there’s more information out there whether it be you know people are Googling it and they’re reading about it it’s there’s more financial astuteness if that is such a concept it is more financially aware millennials than there were generations ago people in their 20s with less of a clue in terms of how does this thing all work at least the information’s out there and clearly you’re reading it. listen and and to be clear also I wish that I knew what I know now 10 years ago.

Lindsey Reiser

Listen to be clear I wish that I knew what I know now 10 years ago. I mean it’s not necessarily that our parents are teaching us all of this stuff it’s taking the resources that are available to us via all of the different mediums podcasts books and just being your own student so that you can set yourself up and not necessarily being brought up to understand these concepts.

Michael Carlin

I would argue that parents of Millennials are less able to educate their kids because I’m looking at their total savings rate in what they saved or haven’t saved. That’s not the kind of example that I think serves well for the millennial generation. So, I’m not sure that the parental group could even do that. I think you can do a better job researching it online you’re just going to have to have the motivation. Which neatly folds us into whether or not millennials really spend it all. That’s the debate. Do they spend? We know you don’t. You got envelopes. I think I want to see the envelopes. I got to see those. Classically your saving mentality your thoughtfulness about finances also rings true with what I read about the millennial generation on balance. So, despite the liberal way that they spend it which we talked about ubering, coffee and dining out those kinds of things. If you look at annual spending they are more than a third of millennials despite the fact that their spending would seem to be frivolously more than a third of them have a written financial plan and their parents, it’s 18%. Nearly three quarters 72% according to the study which was a Charles Schwab survey it was really good. Three quarters of Millennials develop their written plans with professional help which I’m impressed by that and 91% of them that have plans review them at least annually. I think technology has a lot to do with making that possible and young people I think are more likely to regularly monitor their financial accounts because they’re again using technology to help do that. So, all the data says that they’re saving it. Would agree?

Lindsey Reiser

I’m my personal experience fits all of those checkpoints. The first thing I do every morning is I go to my online bank I check and make sure that all the withdrawals are authentic made by me. I go to my Google Sheet which has my budget. I make sure that I’m on track for everything. I’m I might be an outlier or I’m very anal about this.

Michael Carlin

The research shows that you’re right there. You’re obviously in the top decile. Generationally you’re not alone. I mean that’s three quarters of Millennials have financial plans which is more than double what their parents have. That’s right. Even though I was suspecting that was the truth when I’d see that data in front of me I’m shocked.

Lindsey Reiser

When it comes to spending I think you’re seeing the day to day spending on experiences and you know hashtag treat yourself.

Michael Carlin

Is that a real hashtag?

Lindsey Reiser

It is. We’ve got to get you on Instagram. I know my big purchases maybe are being made less frequently again. You’re saving up for that 20 percent on the house. Hopefully you’re buying a car and it’s lasting you 10 or more years. You’re not doing quite as much with the large purchases at least that’s my experience.

Michael Carlin

I think that matches that what my expectations would be. Then that also leads us to the question of where we would invest. If this information is true, we’re going to just get to take a half a step back if what we’re saying is true we would not invest in automobiles at the moment because we think that there would likely be less of them. If people are ubering around. There are some futurists you know that I really research and listen to and they all say the same kind of thing we need a lot less parking. We need a lot less cars across the country because there’ll be more ride share. When driverless cars come in cars will be sent out shipping people around. So, all that notwithstanding it seems like we would also want to invest in financial institutions but those that are focused and using technology to help millennials plan and save because clearly that’s what they’re doing. Although do you have a written plan because with all your envelopes is that or is that the plan?

Lindsey Reiser

I’ve mentioned my Google Sheet several times. It’s a short-term month by month plan. Long term I obviously I have a 401K, so I can see where that money is going. You know long term I have some goals. But here’s one thing that has prevented me from sitting across from a professional such as yourself is at what point do you need to pay somebody for advice. Right. I mean I’m. I’m not breaking the bank by any means. It seems to me like I’m in a position where I can be doing this on my own for a few years. You know eventually financial independence and early retirement. Those are some goals and I don’t know yet know the exact breakdown of how that’s going to happen.

Michael Carlin

Why do you save to the degree that you save? Is it to retire early? Is that the goal?

Lindsey Reiser

Right now, I have shorter term goals. So, a down payment on a larger home I have a condo right now I’d like to get in a standalone house. I would like to have a nest egg heading into a marriage. Yeah. I would also like children as well I don’t want to be having children without a substantial nest egg. Again, travel I don’t want to be doing those things and depriving myself of being able to see the world and car you know in a few years If I’m paying cash for something that’s at least a 15-grand expenditure for sure. So, I mean those nest eggs take time to build and accrue. You kind of set it and forget it. You say this is how much I’m going to spend each month. You see it growing so you definitely feel encouraged. But it’s a marathon it’s not a race. So, the decision that I make today to not go through the drive through and get that $4.00-dollar coffee is helping all of those individual nest eggs.

Michael Carlin

So, at what point do you do that? If a millennial investor, when do you need a plan. There will be some that need a plan because they don’t have the discipline. That’s not you. There’ll be some that need a plan because without a plan they can’t see what they’re saving for. For some a visual representation of what my income expenses and what the growth looks like over time. It all can feel so far away that you just say forget it.

Lindsey Reiser

You need a “Why”?

Michael Carlin

Yeah. So. So those are true for some. But for you and for those kinds of people like you I would imagine that it’s only at such point because you don’t need help with motivation and you don’t need help figuring out where the saving categories are. It will be a point where you say I am no longer comfortable managing what I have. I feel like I would like to add a level of sophistication to what I’m doing because what I have works fine but is there a way to maximize it make it better. At that point people like that would be like yeah okay now I need an advisor? I think there’s varying levels.

Lindsey Reiser

You must’ve listened to the Riser with Reiser Investing for Dummies episode.

Michael Carlin

Not only did I listen to it, but I starred in it, no I mean co-stared, you were really the star. Did I mention how intimidating it is because your media presence is just fantastic. Let’s go through a few categories about millennial spending compared to their parents. I want to go for your few and talk about where millennials are spending a greater percentage of their income compared to their parents. There is a few categorizes. Housing, millennials are spending just shy of 35% of their income on housing where baby boomers are 31%. Again, all these numbers come from the Schwab survey which was very thorough. Transportation and this includes if you’re ubering or lifting or own your own car or leasing your own car. Millennials are spending 17.3% of their income. Baby boomers are spending just shy of 16% of their income. Millennials are spending more on food out 6.1% versus baby boomers 5.1. Millennials are spending more on their education. Dah, we didn’t see that coming and alcoholic beverages. So, Lindsay you’ve got some explaining to do. They’re spending point 9% of their income versus baby boomers .8%. So, do any of those jump out at you as shocking?

Lindsey Reiser

I saw all of that coming. It’s the artisanal cocktail. It’s the Instagram cocktail. That’s why you’re seeing alcohol going up not because everybody is a lush.

Michael Carlin

Well I guess that makes sense though. But then because I’ve seen it on your social media feed then I want that too. I think in restaurant success because it’s selling an experience. Other millennials want that same experience.

Lindsey Reiser

Instagram is a huge driver. I have gone to a restaurant the next day after seeing a picture at a food item and it lived up to the picture hype.

Michael Carlin

So, buy high end liquor as an investment. So, we got to do that. We got to do that. What do you think about cameras and camera phones and things like that? I think that it’s interesting in that the new generation of cameras that are coming out on phones is about to be a little bit of a quantum leap higher where now that front facing camera is about the next generation of phone the high the front facing cameras going be amazing there’s just more resolution because I think if I’m hearing you right I believe this to be true that is. People know that those pictures are selling things, and this is a real incentive to get this to get this out there and why not have higher resolution high quality pictures. This is a long-term trend is it not.

Lindsey Reiser

Are you talking about whether people are investing in higher end cameras or they’re just using the camera on their phone.

Michael Carlin

No, the camera on their phone.

Lindsey Reiser

I think it’s a phone because there are so many editing apps out there. I think if you see a digital camera it’s a 2003 Nikon.

Michael Carlin

I know it’s a massive lens a massive giant lens. So, we talked about all this education, we do want to touch on education. Student loan debt nationally hit one point five trillion dollars. Again, to focus that on a certain specific kind of generation of people millennials are absorbing the lion’s share of that. That has to dramatically impact their ability to save, spend, go out and do the things that they would like to do. I’m just curious as to what you have seen and what you believe about student loan debt and millennials attitudes towards it. They seem to be generally accepted like that’s just part of the deal or maybe it’s not.

Lindsey Reiser

Which boggles my mind that you’re agreeing to tens of thousands of dollars in debt that will follow you. It is just such a laxed thing like it’s just what everybody does and so it doesn’t affect day to day spending that I see I don’t have student loan debt. Thank goodness but in the people that do I don’t see it impacting their day to day spending which could be a problem. It’s to me such a daunting figure that you think this $15.00 lunch out isn’t going to isn’t going to affect that goal. I’m not going to pay this off until I’m in my 40s anyway or I’m going to bank on it being forgiven at one point. So, there’s still I think I don’t think they’re living any different lifestyle from people who don’t have student loan debt.

Michael Carlin

Which is interesting because they should they should. How did you should you should want to pay it down. But maybe it is that norm where people are more relaxed about it because it is so commonplace.

Lindsey Reiser

Well you want to live the same life that you’re seeing everybody else live. It’s the fear of missing out you’re not going to say no to all of your friends going out on the town because you’re thinking, I got to go pay off the student loans. That’s not a strong enough “Why” we were talking about earlier that you need a “Why” right? Paying off your student loans is not a tangible enough goal for people to prevent them from making expenditures elsewhere.

Michael Carlin

I’m learning you really do confirm for me the investment thesis behind a few different things which I’ll wrap up in the wrap up. There are a few areas where millennials are underspending their parents. Personal insurance and health care. Well health care is obvious because millennials should be healthier so let’s not make too much about that. They’re spending less on entertainment. Well this is inclusive of fees, admissions audio and visual equipment pets, toys, hobbies and playground equipment. Now it starts to make sense. This isn’t entertainment in the pure movies sense. These are like big expenses.

Lindsey Reiser

There’s one thing in here that’s named that I would take issue with. I do. I totally see myself spending less on entertainment because I will be just as happy having a game night at home with my friends. The reward of eating out is the entertainment rather than a ticket to a big show where I’m going to have to battle parking. It says club memberships. Does that include gym memberships? I see millennials paying a lot of money per month on fancy gym memberships.

Michael Carlin

The big thing is country clubs. Those kinds of things. That’s the bigger component of it. You’d think that millennials would be less.

Lindsey Reiser

Where we’d like the orange theory fitness fit in? Would that be considered a country club membership? Would that be in health care?

Michael Carlin

When their fitness is in kind of its own category. Which is to say that millennials as a percentage compared to their parents spend roughly the same. Which is why I didn’t hit their hit the radar. But there were a few areas where they spend less but entertainment jumped out. Now hearing you it’s like, you know that makes sense. So, for you concerts would you say concerts less because that’s parking expensive tickets.

Lindsey Reiser

For me personally a concert is a once a year maybe twice a year thing. I mean there are other people out there who I know that concerts are their thing and so they’re not saving up for the 300 dollar Rolling Stones ticket they’re going to the $30.00 show on Saturday night. For me entertainment is eating out going out for the cocktails and I have entertainment as a category and one of my sinking funds and it’s one of the ones I find the least.

Michael Carlin

Wow I bet you that’s common. I mean comment not from the perspective you of the only one who thinks it through all the way or one of the few top 10 percent for sure, but it makes me wonder. It makes me think so. Let me put together a little investment thesis from what from what I’ve learned. I’ve learned a few things. Housing is an issue because we’re millennials are challenged to save the down payment. This we suspected now we know. So, if this is the case it seems wise to me that we would want to be wiser with Reiser again. I know whenever I hear wise I feel like I’ve got to say it. Don’t forget. Wiser with Reiser podcast which we’ll cover again. I’m reminded of the European system. In Europe about 65 percent of homes are owned by institutions not individuals which is not the same as it here is in the United States because there they have switched over and evolve to are renting culture. It would seem to me that we’re evolving that way too and we should find invest. It’s OK to invest in things where you’re going to have residential real estate that’s income producing so would you see just to make sure I’m clear are you are you good with the fact that it seems like Millennials will be renting for a long period of time given all of the challenges and things to say for.

Lindsey Reiser

I think renting well into maybe their 30s. I don’t think I personally don’t see renting. Why would I want to spend all of this money on rent when I’m not getting any return on that? I’m just giving my money to somebody else. But I don’t know if everybody thinks that way, but I see people renting well into their 30s because it’s so expensive, It’s just how are you affording rent and you’re saving money unless you’re moving back home with your parents. I just don’t know how people do it.

Michael Carlin

It’s hard and maybe they’ll just put that off saving to a where they feel like they’ve learned more income later on down the road which is by the way a lot of the people who are baby boomers did which is a lot of the reason why there isn’t a savings there. We’ve got residential real estate which is got to be hampered somewhat by millennials. Transportation is evolving and changing ride share is evolving and changing. You would think there’d be less car ownership in the future. We know millennials are paying for experience so invest in things that are experiential you have to spend some time thinking about what the future of the millennial experience is and what they want to do. We talked a little bit about dining out using your camera phone to share experiences and then and then create an incentive to have people follow suit vacations. Those kinds of things where I think in my generation I haven’t seen the numbers, but my guess is that people in my generation don’t go on vacation all that often and they spend a lot less as a percentage of their income. I would guess certainly compared to millennials. So, we’ve learned a lot. We’ve learned a lot and you’ve confirmed a lot and you’ve also created this understanding where if you listen to this podcast hopefully you picked up a bunch of things about these are things that either confirm we should be investing how you should be helping educate your kids to be more like Lindsay Reise. How do you get them to have envelopes in their purse? How many envelopes are there? How big are the envelopes?

Lindsey Reiser

It’s embarrassing to pull them out, but you know that it works.

Michael Carlin

I can’t wait to see them. I think I embarrassed you though. Thank you so much for coming.

Lindsey Reiser

Thanks for having me. Appreciate it.

Michael Carlin

This has been your Manage the Fund podcast. This is everything you need to know about millennials and investing in the future of investing within that generation. Thank you so much. Take care. We look forward to seeing you soon.

 

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