This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Millennials: Let's Grab a Beer, Burger and a Movie. In 2064

By Chip Castille, Managing Director, BlackRock  

Let's say you're 25. Close your eyes for a moment and try to imagine what it would be like to be 75.

You couldn't do it, could you? What you may not realize is that when your parents were 25, they also couldn't imagine being whatever age they happen to be today. That's why asking you to save money for your retirement is like asking you to give money to a stranger.

So let's think about this in a different way. Start by assuming that you will enjoy pretty much the same things 50 years from now that you do today. You may be older, but you are still you. If you like going out for a beer, burger and a movie today, the odds are you will still enjoy it 50 years from now.  So how much will it cost the future you and what do you need to do to ensure that you will still enjoy yourself?

Let's look ahead by looking back. Based on a little web research, I found that in 1964, a movie cost $1.25, a beer cost less than a dollar, and a burger and fries in a midrange restaurant cost around $1.50. This inflation calculator states that US inflation from 1964 to 2014 was 4.12% per year.  So let's run the numbers and see if that rate of inflation sounds about right:

Chart4

That sounds reasonable enough. You could spend less and you could spend more for your night out in 2014, but this quick calculation tells us that we are in range. So while we all know that past performance is no guarantee of future results, let's use the same inflation rate to ballpark the future cost of a night out:

Must Read: The $9,701 Cup of Coffee: Rethinking Retirement Planning

Chart3

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $114.64 -3.21%
FB $94.06 -0.08%
GOOG $630.13 -0.17%
TSLA $266.47 2.50%
YHOO $37.12 1.20%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs