🍽️ Guaranteed Income: New Trend Alert

Welcome back, Future Funder!

Buckle up as we navigate the silver tsunami reshaping the job market, decode those mysterious annuities, and even dive into the world of guaranteed income. For desert, the generational knowledge bridge gets a makeover. Let’s dive in!

On the menu today

• 🏖️ Boomers' Great Escape: Job Market Shakeup

• 💰 Annuities 101: Your Retirement Superhero

• 📈 Guaranteed Income: The New Hot Trend

• 🌪️ Economic Whirlwind: Credit, Crypto, Job-Hopping

• 🎩 Steampunk Finance: Bridging Generational Knowledge

FAMILY FORCAST

The Great Escape: Boomers Ditching Desks for Beaches 🏖️

The job market's about to get a serious shake-up, and it's not because of robots or AI – it's the silver tsunami of baby boomers riding the retirement wave. Turns out, a record-breaking 4.1 million Americans are hitting the big 6-5 each year through 2027, and that's stirring up more drama than a reality TV show finale.

• "Peak 65" is here: More 65-year-olds than a Florida early bird special!

• Help Wanted signs aren't going anywhere: Job openings stubbornly high

• Wages on the rise: Companies playing "Let's Make a Deal" with workers

• Industry shake-up: Some sectors bracing for a boomer exodus

Picture this: It's like musical chairs, but instead of kids scrambling for seats, it's entire industries trying to fill gaps left by retiring boomers. We're talking a whopping 1.7 to 2.1 million retirements expected this year alone. And while Gen Z is entering the workforce, they're outnumbered. For every bright-eyed newbie, there are 2.8 retirees hanging up their work boots.

But here's where it gets interesting. This isn't just about empty desks and "Gone Fishing" signs. It's a bit of an economic plot twist that could keep wages and prices higher for longer. Why? Because with fewer workers to go around, companies are going to have to keep up with competitive salaries to attract talent.

Stat Snapshot:

• 4.1 million Americans turning 65 annually through 2027

• 1.7-2.1 million expected retirements in 2024

• 2.8 retirees for every new workforce entrant 🤯🤯

• 8.1 million job vacancies in May 2024

The Silver Lining Lowdown: This isn't just about counting gray hairs in the office. It’s a shift in how we’ll need to think about work, retirement, and the economy. Some industries are going to feel the pinch more than others – we're looking at you, wholesale trade and financial services. But here's the kicker: with change comes opportunity. This could be the push we need to reimagine our workplaces, bridge generational gaps, and maybe even find new ways to keep our experienced workers in the game.

Action Station: Ready to ride this silver wave? Here's your game plan:

1. Skill up or ship out: Consider upskilling or reskilling to stay competitive in a changing job market.

2. Bridge the gap: Encourage mentorship programs in your workplace to transfer knowledge from boomers to zoomers.

3. Flex that work-life balance: Push for flexible work arrangements that could keep experienced workers around longer.

4. Think outside the retirement box: Explore phased retirement options that blend work and leisure.

Dinner Table Discussion: What’s a skill you have that you think will always be valuable, no matter how the job market changes?

THIS WEEK’S POLL

*One-click, easy voting. Remain anonymous.

Our last poll, we asked: "Have you had serious discussions with your family about trade school as a potential career path?"

Here's what you all had to say:

• Yes, we’ve explored specific options: 41.2% of parents 🏆

• Yes, briefly mentioned it: 26.5% of parents

• No, but we’re open to it: 18.7% of parents

• No, focused on traditional paths: 13.6% of parents

Let’s keep our minds open to all paths. Our kids’ futures might be built with hammers, not textbooks! Great to hear so many are having those discussions.

BACK TO SCHOOL

Today's Lesson: Annuities 101 💸💸

Picture this: An annuity is your financial superhero, swooping in to save your retirement day! 🦸‍♂️💼 But why trust this caped crusader over other financial sidekicks?

Here's the scoop: An annuity is a contract between you and an insurance company. You feed it money, and it promises to pay you back later, often in retirement. These financial wizards take your cash and work their magic, investing it in a mix of stocks, bonds, and other fancy assets.

Let's crunch some numbers: You're 65, invest $100,000 in an immediate annuity, and boom! You're looking at about $545 monthly for life. That's a 6.54% payout rate - not too shabby!

Why should you care? Well, unless you've got a secret plan to live forever (and if you do, call me), you'll want to make sure your golden years are more "golden" and less "years of eating ramen noodles."

• It's your financial security blanket (way cooler than the one you had as a kid)

• Plays nice with Social Security and your other nest eggs

• Could save you from the tax boogeyman (some offer tax-deferred growth)

• Helps you win the longevity lottery (because outliving your savings is so last century)

Now, you might be thinking, "Why trust an insurance company over my cousin Vinny who's really good at picking stocks?" Well, unlike Vinny, insurance companies are regulated tighter than a superhero's spandex suit. Plus, they offer something your 401(k) or IRA can't: guaranteed income for life.

Now, before you go all in, remember: annuities aren't all unicorns and rainbows. They often come with higher fees than other investments, and they can be about as flexible as a steel girder. It's like putting your money in a financial Hotel California - you can check out anytime you like, but you might never leave (without paying a hefty penalty).

Want to dive deeper? Check out these treasure troves of info:

• Annuity.org's Beginner's Guide

• BankRate's Annuity Calculator

• Investopedia's Annuity Pros and Cons

ANNUITIES - IN THE NEWS

Guaranteed Income Gains Traction 💪

Remember when we thought our biggest money decision was whether to splurge on the fancy juice boxes? Well, times have changed, and so has the annuity landscape. Annuity sales are skyrocketing faster than our kids' growth spurts, with a whopping 23% jump last year alone, hitting a mind-boggling $385 billion. That's a lot of zeroes!

But wait, there's more! The Department of Labor is cooking up some new rules that could change the game for how financial advisors handle our hard-earned retirement cash. They're pushing for a "fiduciary standard" across the board, which is fancy talk for "your advisor has to put your interests first." Novel concept, right? Until now, those recommending annuities weren’t subject to those standards surprisingly.

And for those of us eyeing annuities as part of our retirement strategy, there's good news on the horizon. New, more flexible options are hitting the market, including some that could find their way into our 401(k) plans. It's like the financial world finally realized that one size doesn't fit all. Tamiko Toland (the annuity ‘yoda’) explains more on her podcast here.

_{*One-click, see result. Remain anonymous.}

LET’S GO AROUND THE TABLE

Everything else you need to know today

• Plastic Panic! Credit card bills are playing hard to get. Delinquency rates have hit a 12-year high, with more Americans ghosting their payments than ever. Time to dust off that piggy bank?

• Takeout Sticker Shock. Food delivery fees are skyrocketing faster than you can say "extra side of ranch." DoorDash, Grubhub, and Uber Eats are serving up wallet-busting surprises. Fire up the kitchen stove, we’re eating in tonight.

• Great Resignation 2.0? Job-hopping fever's back with a vengeance! Nearly 3 in 10 workers are plotting their escape in 2024, Gen Z leading the charge. Low pay and stress are the usual suspects. Employers, better up your game!

• Crypto Goes Political. Trump and Harris at a Bitcoin conference? Yep, it happened. Crypto's gone mainstream, folks! Time to learn your blockchain from your Bitcoin?

CREATIVE FINANCE - ART EDITION

The Generational Knowledge Bridge 🧠🤝

🧙‍♀️ Your wish is our command

Thanks for reading.

Until next time!

The Future Funders Team 🍽️

p.s. If you liked this newsletter, share it with your friends and colleagues here.