Chapter 260 Is the New 40

What Does That Mean for Your Investments?

A while back, I was flying home from a financial planning conference, and the man sitting next to me on the plane was reading a newspaper. I could tell something he was reading was really bothering him. Curiosity eventually got the best of me, and I asked, “Excuse me, but what is it that's bothering you so much?”

“Well, look what it says here,” he said, showing me the paper's headline. “It says, ‘Life expectancy to reach 120.’”

“So what's wrong with that?”

“What's wrong with that!?” he said. “Can you imagine your 90-year-old son moving back in with you? Oh my gosh, he still hasn't gotten a job!”

How Long Will You Live?

A hundred and twenty years old may seem like a stretch, but the fact is that people are living a lot longer today than they ever did before. According to the Social Security Administration, males born in 2007 can expect to live to 75, while women born in the same year will live to 80 on average. Now, take a look at the chart in Figure 2.1.

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Figure 2.1 Social Security Population Projections, 1997

In 1900, neither men nor women were expected to live past 50 years old! In a little more than one century, we've gained 25 years or more.

It gets more interesting. Most life expectancy charts look at how long you'll live from birth, but there are also statistics on how long you'll live if you're older. ...

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