THE TRUTH ABOUT YOUR FUTURE with Ric Edelman
Episode: 12/23/24 – The Most Important Personal Finance Message, Part 1: Longevity
Release Date: December 23, 2024
Overview
In one of his final podcast episodes, Ric Edelman, a legendary figure in personal finance, outlines what he considers the single most important message for listeners: our rapidly increasing longevity and its enormous impact on personal finance. This episode, part one of a three-part sendoff series, focuses specifically on how longer lifespans are fundamentally changing the way individuals must approach investing, family relationships, inheritances, and future planning. With his characteristic clarity and humor, Ric unpacks the practical, emotional, and societal implications of living to 100—and beyond.
Main Discussion Points & Insights
1. The Era of Longevity: We’re Living Longer Than Ever
- Historical Perspective:
- Reasons for Increased Longevity:
- Advances in technology, healthcare, public policy, and knowledge about health.
- Societal changes like banning cigarette ads highlight evolving attitudes toward health (02:45).
Notable Quote:
“If you’re alive in 2040, odds are really good you’re going to live to age 100 and beyond.”
— Ric Edelman, 04:30
2. Rethinking Traditional Investment Strategy
- “The 60/40 Glide Path” is Outdated:
- Traditionally, people reduced stock market exposure as they aged to limit risk.
- Ric argues this model arose when people died soon after retiring. With decades ahead in retirement, clinging to this approach courts the risk of running out of money.
- New Investment Perspective:
- Even those in their 60s and 70s may need sizable exposure to equities due to 20, 30, even 40 more years of life (06:22).
- Inflation and taxes are bigger threats than market volatility.
Notable Quote:
“Why on earth would we have them reduce their equity allocations merely because they’re in their 60s?... The 60/40 glide path needs to be seriously rethought, or you run a very real risk of running out of money before you die.”
— Ric Edelman, 08:00
3. Family Dynamics Will Radically Change
- Multigenerational Families:
- It’s now possible for five or even six generations to be alive at the same time.
- The old model—kids leave home at 18, parents support them through college, end financial involvement—is outdated (13:30).
- Increasing numbers of 18-35 year olds living at home; adult children and grandchildren will need ongoing support through life’s challenges.
- Inheritances and Wealth Transfer:
- If people live to 100, heirs may not inherit until their 70s or 80s—far too late to be as impactful.
- Raises important questions about timing, conditions, and methods for passing wealth, including the role of philanthropy and how best to instill financial values (17:50).
Memorable Moment:
“Today, if you’re going to live to age 95 or 105, your children won’t get an inheritance until they’re in their 70s or 80s. You think they’re going to need the money by then? Not very likely.”
— Ric Edelman, 16:55
4. Social Security and Pensions: A Demographic Crisis
- Under Pressure:
- Systems built for a short retirement are strained by people living much longer.
- Too few workers support too many retirees, and pension funds rely on overly optimistic investment returns (21:00).
- Planning Advice:
- Expect these programs to continue—but possibly in reduced amounts or with less favorable taxes/benefits.
- Build plans that don’t rely solely on promised benefits.
Notable Quote:
“It is essential that you discount in your financial planning the amount of income you are expecting to get from Social Security or pensions. Yes, the programs will be there, but probably not as generously...”
— Ric Edelman, 23:40
5. The Looming Threat of Alzheimer’s Disease
- Alzheimer’s as a Core Concern of Longevity:
- 6 million Americans have Alzheimer’s now; projections are for 50 million worldwide in 30 years.
- One in 10 Americans at age 60, and one in three at 85, will experience symptoms (29:00).
- Current treatments offer only modest symptom delays, but research is promising.
- Personal Connection:
- Ric and his wife’s deep involvement in Alzheimer’s advocacy and research, including owning a neurological diagnostics company (27:05).
- Practical Prevention:
- Emphasizes lifestyle factors—healthy diet, sleep, stress management, exercise—as crucial to delaying or mitigating symptoms.
Notable Quote:
“If you’re going to live to 95 or 105, your future means you will either be a patient or a caregiver. This will have huge financial implications for the family—not to mention, of course, the incredible human toll.”
— Ric Edelman, 31:15
6. Reinvention: Your “Second 40 Years” After Retirement
- Retirement is Now a Launching Pad:
- Retiring at 60 or 65 today can mean another 30–40 years of healthy, productive life (35:40).
- Opportunity for further education, new careers, starting businesses, philanthropic endeavors, or simply new adventures.
- People in their 50s and 60s are now the most entrepreneurial demographic.
Memorable Moment:
“You now have that exact opportunity for the first time since you began your career 40 years ago. This is an opportunity for you to reinvent yourself... We’re just getting started.”
— Ric Edelman, 37:06
Key Segment Timestamps
| Segment Topic | Timestamp (MM:SS) | |-------------------------------|--------------------| | Ric reflects on a lifetime in finance; three-part farewell | 00:25 | | Historical increases in life expectancy | 01:56 | | The reality of five and six living generations | 13:30 | | Outdated investment models and the need for change| 06:22 | | Inheritance timing and the $70 trillion wealth transfer | 16:55 | | Social Security & pensions under demographic strain | 21:00 | | Ric’s advocacy for Alzheimer’s research | 27:05 | | The prevalence and future of Alzheimer’s | 29:00 | | Lifestyle as prevention for Alzheimer’s | 32:47 | | Reinvention after retirement and embracing new chapters | 35:40 | | Closing reflections and audience gratitude | 39:50 |
Tone & Memorable Quotes
- Direct, evidence-based, and optimistic—but urgent about the need for change.
- Ric weaves humor and personal reflection into his calls for proactive, realistic planning.
- Frequent reminders to rethink the conventional wisdom and “prepare for 100.”
Standout Quotes:
- “The 60/40 glide path needs to be seriously rethought.”
- “You can’t afford to plan for a 15-year retirement if you’re actually going to live 35 years after you stop working.”
- “You’ll either be a patient, or a caregiver, when it comes to Alzheimer’s.”
- “The opportunity for you to create your next chapter is bigger and better than ever.”
Takeaways for Listeners
- Prepare for a life that could easily span a century or more.
- Rethink conventional financial “rules of thumb”—they were made for a different era.
- Recognize your potential for personal and professional reinvention well past “retirement.”
- Make plans that include ongoing family involvement, and consider giving money earlier rather than waiting to pass it along after death.
- Build financial plans cautiously, assuming less rather than more from pensions and Social Security.
- Take action now to reduce your risk or mitigate the effects of Alzheimer’s—through lifestyle, vigilance, and early planning.
This episode serves as both a warning and an invitation to embrace the possibilities of longevity, engage in thorough financial and personal planning, and design a “next chapter” as vital and meaningful as the first. Ric returns later in the week to tackle parts two and three of his farewell series.