Millennials & 401(k)s: What Advisors Need to Know

[0:00] JD: What is a millennial? I knew these guys are millennials. This is a millennial right here. Like birth years ranging from 90s or [0:14] Chad: debatable, 80 to 84. [0:16] Justin: Somewhere in that range. [0:17] JD: Early 80s to the 2000s. [0:19] Justin: Yeah. Start of 2000. [0:21] JD: So it's kind of loose. [0:23] Chad: Previously referred to as generation Y. [0:25] Justin: It's like an entire 20 year period. [0:28] Mark: What's the wi fi password here? [0:30] JD: I'm not sure, to be honest with you. [0:32] Justin: Seriously, I'm. [0:33] Mark: I'm trying to snapchat my dogs. Like, this isn't working. [0:37] Justin: Your dog's right next to you. [0:39] JD: There's my dog. Not to throw off his great little acting thing just so. No, he's being a millennial. [0:46] Mark: Because millennials are defined. [0:49] JD: Millennials are defined, according to this article, as lazy, materialistic, narcissistic. And here it says they love taking selfies, so that's cool, too. [1:00] Justin: But apparently, I think as we dove further into it initially and we, we dive further now, I mean, it's a big gap. You're talking early 80s to the early 2000s. You have a diverse type of group of people. Often seem negative, often seem positive as well. Different, I guess you could say. [1:27] Mark: Do you know the year that the phrase millennial was coined? [1:31] Justin: 1974. [1:33] Mark: Close. 87. [1:35] Justin: That's way off. When you say negative as close as 74. [1:38] Mark: I wasn't paying attention. I'm a millennial. So anyways, I was kind of surprised about that. [1:43] JD: Yeah, no, and I agree with you. There's a negative and a positive because it's just different when people rip on that generation from a negative standpoint. I. But then it's also a lot of people go, well, man, I mean, they're efficient. They don't like wasting time. They got their priorities fully embrace technology. [2:01] Justin: They understand the world we're living in. [2:03] Mark: Some of that don't understand the world. [2:04] JD: Some of that perceived laziness comes from this flow now of, hey, how about I work smart, not hard. Right? I think that's smart. [2:13] Mark: Easy, but awesome. [2:14] Chad: A little bit, yeah. I mean, we could. We could talk about this for a while. I mean, there's frustrations and good things about them equally. [2:20] JD: But what we want to cover today is getting an understanding in the kind of 401k space, human resources space. Why is it important to understand what a millennial is? As an example, if you're a financial advisor, what do you need to know? How can you modify your business model, if necessary, to deal with that generation, [2:40] Chad: which it is necessary. [2:42] Mark: By the way, I just ruined my mic Hang on to Sorry, Brandon. [2:46] JD: Anyone's offended by what? [2:47] Chad: Only care about yourself, huh? [2:49] JD: Don't move off from mark right now. Sorry. Back to Mark. [2:54] Mark: They called the millennials the Peter Pan generation. [2:59] JD: Just curious, as in, you never, never grow up. [3:02] Mark: You're deferring, like, adult responsibilities. Is that because they think we're staying at home longer? Sorry, mom and dad. You just have a really nice house, right? Is that because we don't want to pay and I don't know, we have huge amounts of student debt and there's no jobs. [3:23] Chad: But they also lack work ethic. [3:26] Mark: If you don't have work, how do you work? [3:27] JD: How do you have ethic to work? [3:29] Mark: I'm just asking the question. [3:30] Chad: Even when they are working, they're entitled. [3:34] JD: They haven't been able to title. [3:36] Chad: Give it to me. Now I get out of college and I think I should be making 80 grand a year, right? You know, which. [3:41] Justin: So this is the first, arguably the first generation that college is nearly a must, right? Everybody in the millennial generation seems to be going college as if it were high school for the generation before, right? And so the thought is, because the generation before, if you went to college, you were getting a job. You were one of the few. Now they're looking and saying, just because you went to college doesn't mean you get a job. And now, even to the point that we're at, which, sorry, I don't even know the generation beyond the millennials at this point, I think that arguably people who have people who have a college degree maybe are not even looked at as being as strong candidates for a position that just have a high school degree. I don't think it's because. And so you have this group of people, in terms of access to jobs, jammed in the middle that they thought, geez, if I get an education, I get a job. [4:31] JD: Right? [4:31] Justin: Because that's what happened to the generation prior. [4:33] Mark: Well, it was kind of what was communicated, you know, almost in a sense of like, for sure. [4:37] Chad: And that same generation communicated to us as kids. [4:41] Mark: That's what I was saying. [4:42] Chad: I beat you to it. [4:43] Justin: Like, I think for many millennials, college was still part of the 1 through 12 educational process, right? Like, it didn't seem like an option to me. I was going to college. That's what I was going to do. When I got. [4:53] JD: I just wicked it, bro. Generation Z. [4:56] Justin: Well, that would make sense. [4:57] JD: Like X Generation Z. [5:01] Chad: So is there going to be no more generation after that? Just done. [5:04] JD: You go back to a. [5:06] Mark: It just resets. [5:07] Justin: So you have this Group of people who arguably, let's say what we're stating are the negatives. But in my mind they're just differentiators. They are. [5:16] Mark: You're such a good. [5:18] Justin: They feel entitled. They need something now they, I guess going with entitled, they believe that they are aligned for something bigger than perhaps what the average person probably is going to achieve in their lifetime. They're connected to technology. They are, we'll say more literate. Probably all in. Because the way I would agree that. I wouldn't argue we have gone to a really tech based society. I would say they're more. [5:46] Chad: The information is right in front of them all the time. [5:49] Mark: Right. They're more literate because of more informed Google. [5:52] Justin: Informed. That's a great word for it. So now how does that translate to the K marketplace? I am parched. [5:59] JD: Yeah, we're going to dive more into that. We're going to hit these specifics. [6:02] Mark: You're really. Barge is really great. [6:07] Justin: It's a good point. [6:08] JD: Stay tuned for that. But like every episode, we gotta have the beer of the episode. We gotta have a little bit of fun. And this time I decided we mix the two together. Okay. So as you open these, it's actually Mark that's going to do a blind taste test. Really? So, Mark, I get the wheel of ice. Let me explain to you why it's you. First of all, it's 40s. [6:33] Mark: And what are you saying? [6:35] JD: You're a Raiders fan. [6:36] Mark: Wow. Okay, the mic's coming off and the shirt's coming out. [6:40] JD: I'm pretty sure most Raiders fans have their 40s. [6:44] Mark: That's like being classified as a millennial, like Peter Pan generation. [6:49] JD: So here's how it's gonna work. Here's how it's gonna work. Just like the previous episode where Chad did it. We're gonna put the blinder on, you're gonna taste each. Each one, and then we're gonna put them in order. 1, 2, 3, 4. And you do your guess. Okay, you got. [7:03] Justin: What do we. [7:04] Mark: That's not fair because I. I don't get to hold the bottle because I can tell which I don't mind if he holds true. [7:08] Justin: No, we have to go into a cup with this? Yeah. [7:11] Chad: Why2 plastic. [7:13] JD: Yeah. [7:13] Justin: When you guys did this to me, it was the same. [7:16] JD: Good call. [7:16] Mark: We should have drank out of a mug on our last episode. [7:19] JD: That's okay. That's a good call. I forgot about the plastic versus glass. Mark's smart. He'll take it. [7:23] Justin: Do you want us to use this mug? [7:25] JD: B Right there in the corner. [7:26] Mark: JD that might be the first time you've ever called me smart. [7:29] JD: Okay, so we got Mickey's. What do we got, oldie? What do we got? [7:34] Justin: We have King Cobra. Oldie. We have [7:39] JD: Mark. Pay attention. Pay attention, Millennial. Pay attention to me. [7:44] Chad: Your cold's been last. [7:45] JD: What you're going to do is tell us which one's which at the end, like Chad did, while I go. But then. No, because then at the same time, you get to give it to one of us. [7:55] Justin: If he gets it right. [7:56] JD: As the beer of their episode. No, just in general. [7:59] Chad: Don't do more. [8:00] Mark: These are your beers of the episode. [8:02] JD: Wow. So who's this? [8:03] Justin: I'm opening them now, so you can't hear them. [8:06] Mark: As a millennial, I think that the [8:09] Justin: beers are appropriately as I do. [8:13] JD: Let me clarify. You will say, this is, I believe, number one is Mickey's, and I want Chad to drink the Mickey's. And if you're wrong, Chad still takes the Mickey's. Okay. [8:22] Justin: I'm fine with that. Mickey's takes me back to my younger days. [8:25] JD: And Mark, just ask my brother as your employer. I really like Paps Blue Ribbon, [8:31] Justin: since we crack all of our good beers with this issue. [8:34] Mark: All right, I'm ready when you are. Okay, let me make sure I can't. [8:37] JD: Help me out here. [8:38] Justin: You're gonna have to push it against your face. [8:40] Chad: I got you covered, buddy. [8:41] Mark: All right, thank you. [8:43] JD: The first one, an oldie, but a goodie. A classic, perhaps. [8:48] Justin: 40 ounces, four mugs of freedom. Got it. [8:53] Mark: Yeah. [8:54] Chad: Get it, sniff it. [8:56] JD: I was out. [8:57] Mark: It's not gonna matter. Hold on. [8:58] JD: I was out with somebody you can't see a few months ago, and after we hung out at the restaurant all night, one of them suggested we go have 40s at his car in the parking lot. And we all got a true story. Yeah, we all got really excited. [9:10] Justin: When Justin and I lived in Colorado, we tried to do Edward 40 hands. When you taped 40s to your hands, [9:16] JD: I thought we should try that on this show. [9:18] Justin: They didn't serve 40s in Colorado, so we had to buy a six pack. That's number one in each hand. [9:24] JD: That's number one. It became tough. JD I want to try doing. [9:30] Chad: Not only that, the beer we bought in the. Remember the grocery stores was half the content. [9:35] JD: Would it distract us on this point? [9:37] Justin: 2%. [9:38] JD: Doing the Edward 40 hands, that's number two. [9:42] Chad: It would be pretty hard. [9:44] Mark: This is really not easy, by the way. [9:46] JD: It's like wine. You're totally, like, cleaning that glass. [9:49] Justin: Yeah. Get us another mug. Well, of course we're gonna make him do that. [9:54] JD: Give him a new one. [9:56] Mark: Okay, I'm not gonna lie. First two tasted exactly. [9:58] JD: Can't ever say anything about retireaholics. And we got tons of glasses and mugs and inventory. We're always ready to rock. [10:06] Mark: Let's send more. [10:08] JD: Yeah, let's send us more. [10:10] Chad: Keep it coming. [10:11] JD: Number three. On its way. [10:13] Mark: I just hope I recognize one of them because this is. You know, apparently. [10:16] JD: This is a lot harder than I thought. Again, as I mentioned last time at home, if you want to try this out, see if you're better, I would say 90% of our audience beat Chad last time since he was ofer. [10:29] Mark: Holy cow. [10:30] JD: 4. [10:32] Mark: I'm trying to hurry. [10:33] Justin: By the way, these are different flavored beers, though. Last time you gave me four light. Well, three light beers, but you would [10:40] JD: think this would be easier. [10:41] Justin: I would think so. But they're not something you drink often. So what? [10:45] Mark: Okay. [10:45] JD: You don't drink these off. [10:46] Mark: Who's getting what? [10:47] Justin: Keep your medicine. Yeah, who's getting what? [10:48] JD: Has he done them all? [10:50] Justin: Who gets number one? [10:53] Mark: Oh, I just go by taste. [10:54] JD: Did he do all four? [10:55] Mark: One is J.D. [10:57] JD: that's a bitch. So what is it? [11:00] Mark: PBR. [11:01] JD: Oh, you just screwed me, bro. [11:03] Justin: Hey, you can't tell him that. Now he knows that. One of the last ones is pbr. [11:08] Mark: One of the last three is pbr. Geez. [11:10] JD: Wait, that means I get pbr, though. [11:12] Justin: Regardless. [11:15] Mark: Number two goes to Chad. And that one was. [11:24] JD: This is a time constrained show. [11:27] Mark: That one was King Cobra. Number three goes to Justin. And that was pbr. [11:41] JD: Wait, okay, okay. So he shifted his cuz. That's lame. [11:45] Justin: No, I didn't shift anything. [11:46] JD: No, he didn't. [11:47] Mark: I didn't shift anything. [11:49] Justin: You already said pbr. [11:51] Mark: And I knew it was wrong, so. [11:53] Justin: But he's wrong again. I know. [11:55] Mark: So four goes to me and his pbr. [11:58] JD: Just so you know. [11:58] Justin: PBR three times. [11:59] Mark: You're over four, dude. [12:01] JD: Just so you know, your fourth guess doesn't work. [12:05] Mark: I got one. [12:06] Justin: No, you got none. [12:08] Mark: Number two was pbr. [12:09] Justin: He gave you King Cobra. No, number two. [12:11] JD: Mickey, number four was pbr. I said four. [12:14] Justin: Yeah, but you said PBR three times. I know. So what, you can't get us PBR three times? [12:20] Mark: Yeah. All right. [12:21] Justin: There you go. [12:23] Mark: Why did you pick this for me? [12:24] Justin: Because you picked the other three for us. [12:26] JD: I'm not a beer expert. Beers. My understanding is that this is regular beer and that's malt liquor over there. So I'm Very happy. Welcome to the retirehomes. [12:36] Justin: How many ounces do you have? [12:38] Mark: Yeah, another good one. [12:39] JD: I get a brownie too. You got 40? I get a brownie. [12:42] Chad: Use your drives. [12:43] JD: All right, so we were just, in a way, not totally ripping on millennials, but we went through a lot of research. I read a lot of different articles. I've learned some stuff over the years. And actually, when it comes to finance, millennials kind of have their tish together, like. So here's some stuff. 70% of millennials are already saving for retirement. [13:12] Justin: Youngest millennial at this point would be 17. Okay, so impressive. [13:17] JD: Millennials who participate in a 401k plan contribute 10% median of their annual pay. [13:25] Chad: That's inclusive of an employer match. [13:27] JD: Sure, I left that out for simplicity. So the general vibe on the street here on the Internet, is that counter to what many people think? They're actually pretty into their finances. They're into their retirement, their last. [13:48] Mark: That's perfect though. Millennials in a Starbucks bag. [13:51] Justin: Last episode we talked about, one of the points was financial illiteracy. Right. These folks would not fall in that category is what we're saying. And if you think about it back to what I stated earlier about this being a fairly large gap, you have this group of folks who, the generation prior to them, some of them probably had pensions in place. And this would be the first real generation that's saying, yeah, pensions don't really exist for the reasons that they did in the past. I'm not going to work with one company for 30 years, therefore the onus is on me. [14:24] JD: I gotta be more self responsible. Yeah. [14:27] Chad: They saw their parents go through 2008, lose a lot. [14:30] JD: They saw their parents crash in the stock market. So that's heightened their sensitivity to knowing more about investments and getting support. [14:39] Mark: I would argue too, that just on the very, very basic level of technology in general has really, I think, increased a lot of people's availability to different resources, tools. And the fact that folks like us millennials sort of rely on technology, we're more apt to use it and utilize [15:00] Justin: it and access access to that education. [15:03] Mark: And luckily the technology, unlike some TPAs who are slow moving for technology, but the industry as a whole is sort of leading that they're utilizing that and going that way. So I think it goes hand in hand to why these types of people, us included, would, would increase contributions, would put more in, be more aware of it, and be more intellectual when it comes to it. [15:28] Justin: When you think about it too, and supporting that, we saw, we read a stat that this will be the first generation to earn less than what their parents did, obviously adjusted for inflation, yada, yada, yada. But the first generation to earn less than what their parents did. And what are we all doing at this point? Typically living longer. [15:50] JD: Oh, sorry. [15:50] Justin: Oh yeah, that too. We're living longer. So if you earn less and you live longer, what do you need to do to become retirement ready? You need to save more and save earlier, probably. [15:59] Chad: Which, excuse me, what they're doing as [16:01] Justin: well, that supports the data that JS give us. So how does that, how does that translate? I mean what, what does an advisor do differently to target these type of people, knowing who they are? [16:12] JD: One I want advisors, human resources, industry professionals to, to take that takeaway we just talked about. So understand who they are and understand that even though they're perceived as lazy, selfie taking generation, that when it comes to finances, they're actually very keen to learn to understand it and they rate it high on their priority list. And you need to understand that if you're trying to work with them. The second big takeaway, which we've talked about a little bit is they're a digital age. They grew up with devices in their hands and, and the Internet and they want quick, easy, DIY answers to things. They want to find it on an app and a website. They're not used to calling someone and waiting two days to get a verbal response. [16:58] Mark: And so that is as even a millennial myself. Click to piss me off. [17:04] Justin: Right. See, get back to me now. Brooke hates it. If I were to consider us millennials because we're all so early in that arguably the very first year that one [17:14] Mark: could be a millennial on the brink. Yeah. [17:15] Justin: And there's let's. It's a 20 year stretch of people think about. I didn't realize how big of a difference that is. If you're talking about something else. Like what if your 5 year old daughter started dating a 20 or 5 year old guy? There's a 20 year difference in that. [17:33] Mark: Very drastic. [17:34] JD: That's really hot and creepy. [17:36] Justin: I was trying to make it as terrible as possible. [17:41] Mark: My daughter. That was her. [17:44] Justin: But isn't that like. That's a huge gap of people. [17:47] JD: Yeah, true. But still a lot of these things that we're highlighting are very true and are very relevant. Especially this digital age. Especially this get stuff now. It's something that does fit in that 20 year gap because of technology and what's going on. [18:06] Justin: What's interesting to me too about that get something now as we were just Talking about. I think I'm guilty of this. [18:14] JD: Sick. [18:15] Justin: I don't just research to get one answer and then be content because it's so readily available. Like back in the day, I imagine my parents would go to a CPA or go to someone that they're talking about, and whatever that person says, they take for being accurate. Now, you want me to tell you what year group Millennials structured from. I'm probably looking at four different sites to figure that out. [18:37] Chad: Not only that, we found four different answers too. [18:41] JD: They call this the information age. Right. It's there at your fingertips. [18:45] Chad: What was interesting to me though, in that too was, you know, millennials want it on that first click. You know, if they have to search for it and keep searching for it, they get less interested in the next, move on. [18:57] Justin: But I don't think that they're content with one answer. That's what I was just stating is [19:01] JD: that I'd love to hear more information. Clear. You are a nerdy millennial. And so you're going to search very early on. [19:08] Mark: I think the millennial stage starts when the folks were graduating from high school in the year 2000, when it was the millennium. Right. When all the computers were supposed to just shut down because nobody knew what the year 2000 would do. Y2K. [19:21] Chad: Thank you. [19:21] JD: Let's go straight to the takeaway. For someone who's watching this, that's in financial services, how do they make themselves a better fit for these millennials who are 33% of the workforce? I didn't make that one up. I found it on some article. [19:42] Mark: You read everything, you believe everything. [19:45] JD: If it's on the Internet, it's true. If they have broker dealers, very, very. That stand in their way. If they have rules from their broker dealers that stand in their way and they feel like, well, how am I supposed to create this kind of, you know, tech, text message, Internet answers types of thing? I don't have that ability. Well, the easy answer is partner with the vendors, the record keepers that have built that stuff. Partner with the third party things. You talked about Bloom earlier, brought it up revisited. Bloom, we talked about a long time [20:17] Mark: ago, invested millions of dollars of research into this. I mentioned it earlier, but I don't know the specifics. But Transamerica did some sort of research that included a very different approach to both baby boomers. That was something that was more like paper based, something like that. And Millennials, which was on Facebook, and it received very different. [20:41] JD: And you, you said something about this Facebook one. You said it almost had like, an artsy flair to it. [20:46] Mark: It was like you created a cartoon or something. They mentioned that in a meeting, and the, the baby boomers almost just went like, what? That, you know. But the millennials ate it up. And so, again, that's just. [20:58] JD: I love that stuff. [20:59] Mark: The fact that they can go out and spend the time and effort and money to do the research, they need to utilize that and be able to use it to their advantage on a [21:08] JD: simpler thing than I would say as an advisor, like, and I'm not saying leave the suit and tie at home. I mean, you do what's authentic to you. But you can't go into millennials and sit down with a notebook and a pencil and try to. But let them know that you've got tech. Let them know that you've got immediate. [21:26] Mark: Don't talk about a notebook and pencil. Chad texted me a picture yesterday of a stack of yellow notepads. It was like, hey, in case you need some anymore. Which, by the way, I did go buy some on my own. But don't, so you'll offend him. [21:39] Justin: I love notebooks. But let me ask the guy who. Let me ask, let me ask a question, because I think that we're trying to get granular with this generation, yet it's a span of 20 years, 20 plus years, depending on where you're looking. Is it more relevant to try to target a location, a workforce versus an age group? Like, let me, let me ask the question. If you're sitting in Missouri, that's your question. If you're sitting in Missouri, which is obviously I talk about a lot. It's where my wife's from, that's where I went to school. I love it there. Do you think that the average millennial there is the same as they are the person sitting here in San Francisco, Very different. [22:22] JD: But don't take us off down this rabbit hole. [22:25] Justin: Yeah, this is relevant. Time out. This is relevant for an advisor who's looking at building how they're going to communicate to these folks. Is it. Should they target saying, okay, this is a younger workforce, 33%. I'm going to create some sort of campaign or work with providers that are targeting millennials. Or am I going to say, okay, this is an engineering firm. They're probably more along the millennial side. This is a contracting firm, this is a construction firm, therefore, I need to be more hands on. [22:51] Chad: But nonetheless, for example, the bulk of those people are still. They've had access to technology, they're familiar with it. [22:58] Mark: They want simplicity. [22:59] Justin: You know how Many groups. I'm not going to say. Let me ask another question. How many groups do you all meet with? Hopefully you're not in the enrollment meeting because obviously that's not really our role. [23:10] Mark: Pretty sure he did one the other day. [23:11] Justin: Do you find out that the client wants paper based enrollment? I probably still hear that 15 of the time. The client doesn't want the employees to go online, enroll, then get a response. [23:26] Mark: You know why that is? Probably a baby boomer who's in the HR department. [23:31] Justin: Probably true. [23:31] Mark: Well, there you go. [23:32] Justin: Probably true. But I guess what I'm trying to get at is that I think the workforce is what dictates the type of communication, not necessarily the agency. [23:41] Mark: Now you're going to workforce versus we're just talking about. About a specific group of people. [23:46] Justin: But you're talking about communicating. [23:47] JD: The answers are the same, though. The answers are the same with the majority. There's been some episodes where I touched. The answers are the same. It's that advisors and in plan sponsors need to understand the perspective of their workforce and today's subject happens to be millennials and try to create things that fit for them and that work well for them, that they understand and that inspire them to be part of everything. And so all we're saying is, hey, pay attention to this. These people are very digital. They need modern day, clean, simple examples, platforms and partner with us. [24:25] Justin: So give us two or three examples of how an advisor can embrace that auto enroll. Okay. [24:32] Chad: Creating features that are going to help these people get into the plans and make it simple for them. And we know 84% of all millennials, when given an opportunity to have auto enrollment, will stay in the plan. [24:43] JD: Right. So they're very receptive. [24:45] Justin: So they don't see that bigger brother type approach. They're looking at saying, hey, I know I need to save. This is a benefit to me. [24:50] Chad: And so spoke on that specifically, was that they do not feel it. Millennials do not feel that way like the previous generations did. [24:59] JD: Yeah, they're all cool with it. [25:00] Mark: Part of that too, if we use the naysayer approach to this, is you're [25:04] JD: good at that though. [25:05] Mark: I know, but if I'm a millennial, I know I don't give a crap. Right? I'm not paying attention. What is auto enroll? It's putting me in the plan. I'm not paying attention. I just get a paycheck, dude. It's just going to natty ice and a bunch of other cool things. Right? That's what they're doing. [25:21] Justin: They're Drinking wine. [25:22] Mark: Right. So when those dollars come out, I'm not looking at my pay stub. I just expect whatever my employer gives me is what I'm getting paid. They don't even catch on to it if we believe that. Right. I am a control freak. So every paycheck I get, even if else probably should be the same, I always look at it. [25:40] JD: I liked what you said earlier where almost in a negative way you said millennials expect to have a 401k plan. [25:46] Mark: I was going to say that later on. You just totally blew it. [25:49] JD: I stole it. [25:50] Mark: That's what I do. I'm still going to say it. Repetitive motion. [25:53] JD: So go ahead, say it. [25:57] Mark: Millennials expect 401k plans. She doesn't have the same flow. [26:00] JD: What I liked about that was I said, you know what I like that they expect it because I like a generation that at least is paying attention to it. [26:08] Mark: But my analogy was better. If you go to the grocery store, do you expect there to be bananas? [26:13] JD: Yes. [26:13] Mark: Damn. Right, Right. If there's no bananas now, if they're not the perfect banana, I'm not gonna buy it. It's too like over ripe. Not gonna buy it. They're bananas. They're there. [26:22] JD: My point was I love a generation that least cares about it because you could say that the generation before them maybe were less interested. By the way, what was the generation before them? [26:33] Mark: Baby boomers. [26:34] JD: I thought was Gen X. [26:35] Justin: You have Gen X. [26:36] JD: That's my generation. Oh, guys. [26:38] Mark: You're a little tiny by the way. [26:40] JD: Way cooler. Gen X. [26:42] Mark: Can you show the camera your socks? [26:44] JD: This is Tom Curran. He's my favorite surfer. [26:48] Justin: So we get, we get two which support each other. Actually they expect tell us a 30 millennials expect a plan. And Otto and Ro is something that they see value in not just auto enroll. Auto escalation, simplified. Something that's going to get them involved. [27:03] Mark: Yeah, I get that. [27:05] Justin: You mentioned Bloom. That's probably a good third one. [27:07] JD: They want digital. [27:08] Justin: They want digital. They want engagement. Yeah. [27:10] JD: They want you to deliver a digital easy to use interface for participants to manage their 401. [27:16] Mark: So that sort of looks like a social media flow as in what principal [27:20] JD: showed us today with their parking space. So we met with Principal Financial Group earlier today in our conference room. [27:26] Mark: We do things what they said that there was science behind it that they actually care about. [27:33] JD: Looks very social media. Right. Facebook. Ish. They have text message enrollment because I've got a coming on 19 year old daughter and her phone's always right here. You know, all the we read that stat. [27:48] Justin: The average millennial sends like 52 text messages a day. [27:51] JD: That's crazy. [27:52] Justin: That's insane. [27:53] JD: So you can enroll via text with at a principal, which is very cool. They've got the. The education videos that are customized to you. If you feed the data in, say, hey, J.D. we're going to walk you through your enrollment, yada, yada, yada. You make decisions. It was very like funky. [28:11] Justin: It was a full decision tree. Depending on what you click will lead you circumstances. [28:14] Chad: If they increase their referral percentages or whatnot. Ad incomes, immediate response like, this is what you'll look. [28:20] JD: Very touchable. Removable things that give you an answer. I love the part where it asks the person, like, has anything special happened in your life in the last year? And it said, oh, I got. Did you get married? And that was one of them. And you clicked, yes, I got married. He goes, yo, you got hitched. [28:34] Justin: That's awesome. [28:35] JD: I knew you had a globe out. So it's very cool. [28:37] Mark: That was awesome. [28:38] JD: And then they even had ongoing check in with your plan video stuff that was customized for the plan. So very digital age. Millennial friendly. Right? [28:51] Mark: But the participant site itself, not to go into that. But they listened to the people using the site, the participants to know what they wanted to see first versus the industry, who wants to show what they want to pitch first, everything at the top about their scores and things and whatnot. So I just thought it was kind of cool. That's sort of what the millennials want to see. They want to see the things they need to know. They want to know right now. [29:14] JD: Those three things. And again, shifting to an advisor and or a plan sponsor, those three things at a product like, like principal are a perfect takeaway of. You can latch onto that, talk to your clients, talk to your participants about things like this and get huge value from it. [29:32] Justin: And don't be fearful that they'll see it in negative light. Right. So so many groups that I meet with look at auto enroll and they go, oh, no, I can't do that to my employees. They're going to. It's going to be terrible if we auto enroll folks because they're going to feel like we're playing bigger brother. [29:46] JD: I totally agree with what you're saying, Chad. I mean, that's a great point. And to further elaborate on that point, I have really nothing to add. [29:55] Justin: But you just want to. [29:57] Mark: For sure, for sure. [29:58] Justin: Did you switch hands? You switched hands because your shoulders are question. [30:02] Mark: So our last episode, we talked about financial wellness and I want to bring this back. And my question is to you guys, just out of curiosity, do you believe that millennials think that financial wellness is important and something that needs to be a part of sort of a company's overall package of benefits and a part of their 401k plan? [30:23] Chad: I don't know so much. I think earlier generations. Maybe. Because you're closer to retirement. Because we do know millennials, although they are smart about retirement, they also like to spend money a little bit recklessly. They're materialistic. [30:37] Mark: Not gonna say anything about Justin. I'm not gonna say that. [30:41] Chad: Yeah. Shot myself in the foot there. But the point. You get what I'm trying to do. [30:49] JD: The what? [30:50] Mark: I'm just. [30:51] JD: Anyway, I was just curious. [30:54] Chad: Yeah. So basically, the point of what I'm saying. Understand it's a sleep number. [31:03] Justin: Right. [31:04] Chad: What is your full circle. No, it's not. Of financial wellness. [31:08] JD: I. I disagree. I. If I. I'm not sure I listen to what you said, but I think [31:14] Chad: what else is new? [31:15] Mark: I think that you look like a millennial. Or should I say a hipster millennial. [31:19] JD: They are very interested financial wellness and are perfect candidates. [31:24] Mark: So I think that that just means for 2017, a couple of the key points we've brought up being financial wellness. And a very key group of people within these plans need to be a focus for advisors and our partners and [31:41] JD: the plan sponsors and the industry. [31:43] Mark: Well, that's right. We're trying to target and talk to plan sponsors through these episodes. [31:47] Justin: Sure. [31:48] JD: So that's how we'll. We'll wrap it. Those are great. Actually. I'm super happy with that. Those nuggets that were throwing out there [31:55] Mark: for them, I could go for some nuggets. [31:58] JD: That's a very millennial thing. [32:02] Justin: Chicken nuggets. [32:04] JD: We are the entire holic. [32:08] Mark: Cheap beer. Drinking some. [32:10] JD: And J. D. Carlson. Chad Johansen. [32:17] Justin: Let's hold on before you conclude. So, James Douglas, what does the K stand for? Don't answer. [32:24] JD: Kevin. [32:25] Justin: Nope. [32:26] Mark: I know what it is. [32:27] Justin: I know what yours is, so I can't answer that. [32:29] JD: Kurt. [32:29] Justin: His is J in the middle. What's J stand for? [32:34] Mark: Don't even say it. [32:35] JD: Julia. [32:35] Justin: Nope. [32:36] Mark: Yeah. Okay. [32:37] Justin: J.D. again. McNeil. So what's the D stand for in his name? [32:42] JD: Daniel. [32:43] Justin: He's got one. I just wanted to see how good. [32:45] Mark: Daniel. [32:46] JD: Kevin. No, I said that. [32:51] Justin: All right, let's close it out. [32:53] JD: Changing retirement planning. Straight one. [32:55] Chad: 40 at a time. [32:56] JD: 40 at a time, bro. Oh, no, that's for the wheel of ice. [33:03] Justin: All right, that sounds horrible. [33:05] JD: That was for the wheel of ice. [33:06] Justin: Justin barely hit it. [33:10] Chad: This is good. [33:13] Mark: Bat mouth. [33:18] JD: You didn't even do like. [33:24] Mark: There was a question in there.