TIME streaming

Hey, Millennials: Here’s Where You Can Stream Your Favorite Movies

Superbad
NBC NewsWire—NBC NewsWire via Getty Images TODAY -- Pictured: (l-r) Actors Jonah Hill, Michael Ceraz and Christopher Mintz-Plasse of "Superbad" stop by the Plaza on NBC News' TODAY on August 8, 2007

From Superbad to Mean Girls

Millennials love their streaming services — but this list of 15 favorite Millennial flicks might be an eye opener, because less than half are available through subscription streaming services (in this case, HBO Go and Netflix). For the rest, you’ll have to buy them individually.

From Amazon to Vudu, with peeks at Hulu and even Crackle in between, all the popular sources for watching movies online were scoured in amassing this list. Though all the movies were available in several different places, one thing was consistent: None of them were free, so get ready to open your wallets.

American Pie: This 1999 classic might seem stale by today’s standards, but it was groundbreaking at the time. And after some straight-to-video sequels, it’s taught us an important lesson: when to say goodbye.

Available on: Amazon, iTunes, Google Play, and Vudu

Easy A: A fresh take on The Scarlet Letter, this 2010 Emma Stone flick is a great refresher on modern day high school social issues, particularly “slut shaming,” a practice has been attacked in the years since this movie was released.

Amazon, iTunes, Google Play, and Vudu

Bring It On: Sure, it spawned an unholy amount of sequels, but this 2000 rom-com is pure Gen Y youth. From the choreography to the cast, “it’s been broughten.”

Amazon, HBO Go, iTunes, Google Play, and Vudu

Can’t Hardly Wait: When this was released in 1998, everyone in the movie and in the theaters had a crush on Amanda Becket, played by Jennifer Love Hewitt. Watching it 17 years later, you get to look back at bad boy Mike Dexter and see that he wasn’t so cool after all. (Seriously… what happened to that guy? Oh wait. He was in Twilight.)

Amazon, iTunes, Google Play, and Vudu

Clueless: This 1995 sleeper introduced Paul Rudd to the world. Beyond that, it’s like comfort food — something Cher would never eat — packed full of one-liners and dated references to the 90s.

Amazon, iTunes, Google Play, Netflix, and Vudu

Harry Potter and the Sorcerer’s Stone: When millennials want to reminisce about life as a kid, only the original Harry Potter will do. Packed full of wizards and witches, this 2001 movie is as much about getting acquainted at a new school as it is about magic.

Amazon, iTunes, Google Play, and Vudu

Mean Girls: Has it only been 11 years since this classic teen comedy hit the screen? In that time, Lindsay Lohan has dropped off the marquees and writer Tina Fey gotten all “bossypants” on us. Also, “fetch” still hasn’t happened.

Amazon, iTunes, Google Play, Netflix, and Vudu

Superbad: An American Pie without a boatload of crappy sequels, this 2007 laugh-fest showed off the comedic chops of Jonah Hill, introduced Emma Stone, and made Michael Cera into a star. If there’s a more millennial movie than that, I’d like to see it.

Amazon, iTunes, Google Play, and Vudu

The Devil Wears Prada: Though it was derived from a book that wasn’t geared towards Generation Y, this 2006 movie is a favorite of that age group because it covers transitioning into a workplace filled with older people and outdated attitudes. In fact, the Christian Science Monitor makes the case that it might be the most Millennial movie of them all. (But my money is still on Superbad.)

Amazon, HBO Go, iTunes, Google Play, and Vudu

The Hangover: Debatably the highest-grossing comedy of all time, this remake of Three Men and a Baby (think about it) was crazy fun when it came out. And if they didn’t repeat the same jokes in Hangover II and Hangover III, it would be even better.

Amazon, iTunes, Google Play, and Vudu

The Hunger Games: It started with the books, then the film franchise captured the imagination of the generation. The first film in the series, this 2012 epic had all the teens wanting to do archery in gym class. Now it makes them want to hang out with Jennifer Lawrence.

Amazon, iTunes, Google Play, and Vudu

The Notebook: Hey girl, you know you love this Ryan Gosling love story.

Amazon, iTunes, Google Play, and Vudu

The Social Network: From a plot line ripped from the real-world problems of the world’s most successful millennial, to an inspired script (the pub scene between Jesse Eisenberg and Rooney Mara was spot-on), this 2010 Oscar-winner drips with Gen Y. The funny thing is, millennials reportedly want nothing to do with Facebook. Or do they?

Amazon, iTunes, Google Play, and Vudu

Twilight: Love it or hate it, this 2008 coming-of-age love story drove vampire fans crazy in its day. For everyone else, there is the ridiculous vampire baseball scene that gets funnier every time you see it.

Netflix, iTunes, Google Play, and Vudu

Wet Hot American Summer: A 2001 cult classic packed with everyone from Amy Poehler to Judah Friedlander, this campy summer camp flick oozes with nostalgia for a time that millennials never experienced (something that generation specializes in, incidentally). But while this comedy is infinitely re-watchable, Netflix has announced it is creating a series based on the movie.

Amazon, iTunes, Google Play, HBO Go, and Vudu

Note to the reader: All of the Amazon movies listed above were available for rental or purchase, not through Amazon Prime Video.

MONEY 401(k)s

Terrible Advice I Hope Young People Ignore

incorrect road signs
Sarina Finkelstein (photo illustration)—John W. Banagan/Getty Images (1)

Please, invest in a 401(k).

I like James Altucher. He’s a sharp writer and a smart thinker. It’s just those kinds of people — people who know what they’re talking about — who deserve to be called out when they say something silly.

Altucher did a video with Business Insider this week pleading with young workers not to save in a 401(k).

It is — and I’m being gracious here — one of the most misguided attempts at financial advice I’ve ever witnessed. It deserves a rebuttal.

Altucher begins the video:

“I’m going to be totally blunt. Are you guys in 401(k)s? OK, you’re in 401(k)s. I honestly think you should take your money out of 401(k)s.”

Why? His rant begins:

“This is what is actually happening in a 401(k): You have no idea what’s happening to your money.”

Everyone who has a 401(k) can see exactly what’s happening with their money. You can see exactly what funds you’re investing in, and what individual securities those funds invest in. These disclosure requirements are legal obligations of the fund sponsor and the managers investing the money.

You might choose not to look, but the information is there. An investor’s ignorance shouldn’t be confused with an advisor’s scam.

Altucher lobs another complaint:

“And, by the way, if you want that money back before age 65, which is 45 years from now, you have to pay a huge penalty.”

You can take money out of a 401(k) without penalty starting at age 59-and-a-half. You can also roll 401(k) money into an IRA and use it for a down payment on a first home or for tuitionwithout penalty.

A lot of companies also offer Roth 401(k) options, where you may be able to withdraw principal at any time without taxes or penalty.

According to the Census Bureau, 91.2% of Americans currently of working-age will turn 65 in less than 45 years.

Another gripe:

“They’re doing whatever they want with your money. They’re investing wherever they want.”

There are no 401(k)s where someone does “whatever they want with your money.”

All 401(k)s are heavily regulated by the Department of Labor and have to abide by strict investment standards under the Employee Retirement Income Security Act of 1974.

Part of those rules require that you, the worker, have control over how your money is invested. Here’s how the Department of Labor puts it (emphasis mine):

There must be at least three different investment options so that employees can diversify investments within an investment category, such as through a mutual fund,and diversify among the investment alternatives offered. In addition, participants must be given sufficient information to make informed decisions about the options offered under the plan. Participants also must be allowed to give investment instructions at least once a quarter, and perhaps more often if the investment option is volatile.

A lot of companies still offer subpar investment choices, but check out this article on how to lobby your employer for a better 401(k). Someone at your company has a legal duty to provide choices that are in your best interest.

“They’re paying themselves salaries.”

It’s true: Mutual fund managers earn a salary.

You know who else takes a salary from the stuff you buy?

Plumbers, accountants, electricians, doctors, nurses, construction workers, shoe salesman, car mechanics, pilots, dentists, receptionists, gas station attendants, TV anchors, the guy behind the counter at the coffee shop, the lady who scans your groceries, me, and — at some point in his life — probably James Altucher.

Look, a lot of fund managers are overpaid. It’s an injustice. But skipping a 401(k), the employer match, and decades of tax-deferred returns because they draw a salary is madness. The employer match, in many cases, offers a risk-free and immediate 100% return on any money contributed to a 401(k). A mutual fund manager’s salary likely eats up a fraction of 1% annually.

Plus, fees have come way down in recent years. Here’s a report by the Investment Company Institute:

The expense ratios that 401(k) plan participants incur for investing in mutual funds have declined substantially since 2000. In 2000, 401(k) plan participants incurred an average expense ratio of 0.77 percent for investing in equity funds. By 2013, that figure had fallen to 0.58 percent, a 25 percent decline.

What does Altucher say to do with your money instead of saving in a 401(k)?

“Hold on to your money. Put your money in your bank account.”

Haha, OK. I shouldn’t invest in a 401(k) because mutual fund managers take a salary. I’m sure the bankers where I have my checking account work for free?

His biggest beef is that people just don’t make money in 401(k)s:

“The average 401(k) — they won’t really tell you this — probably returns, like, one-half percent per year.”

There’s a reason they “won’t really tell you” that: It’s nonsense.

According to a study of 401(k) investors by Vanguard, “Five-year [2008-2013] participant total returns averaged 12.7% per year.”

The average return from 2002 to 2007 was 9.5% per year.

Even from 2004 to 2009, which is one of the worst five-year periods the market has ever produced, the average 401(k) investor in Vanguard’s study earned 2.8% annually.

This is Vanguard, the low-cost provider. But even if you subtract another percentage point from these returns to account for higher-fee providers, you won’t get anywhere close to half a percent per year.

There’s actually a good reason to think investors will do better in a 401(k) than in other investments.

The rules designed to make it difficult for people to take money out of a 401(k) until they’re retired create good behavior, where investors leave their investments alone without jumping in and out of the market at the worst possible times. Automatic payroll deductions also help keep long-term investing on track.

Take this stat from Vanguard:

Despite the ongoing market volatility of 2009, only 13% of participants made one or more portfolio trades or exchanges during the year, down from 16% in 2008. As in prior years, most participants did not trade.

The majority of 401(k) investors dollar-cost average every month and never touch their investments again. That is fantastic. If you could recreate this behavior across the entire investment world, everyone would be rich.

Altucher has another problem with tax deferment:

“You don’t really make money in a 401(k). It’s just tax-deferred. When you’re in your 20s, what does tax-deferred really mean?”

What does it really mean? About a million freakin’ dollars.

Save $10,000 a year in a 401(k) — half from you and half from your employer — and in 45 years (Altucher’s preferred timeframe, here), the difference between taxable and tax-deferred at an 8% annual return is massive:

You can play around with the assumptions as you’d like with this calculator.

Here’s his final takeaway:

“What you should do in your 20s and 30s is invest in yourself. Building out multiple sources of income, investing in getting greater skills, and so on.”

Great advice! But you can do all of that and still invest in a 401(k). And virtually everyone should.

** James, are you reading this? Let’s do a video together and duke this out in person! My email is mhousel@fool.com **

For more on this topic:

TIME

These Are America’s Secret Money Habits

Pile of new series American money twenty on top.
Getty Images

You'll be surprised at how we really see ourselves

Young adults spend less on groceries, but eat out more. New Yorkers are suckers for a fancy brand name, Bostonians love giving gifts and Floridians want to get money advice from Warren Buffett.

These are some of the finds in the new TD Bank Saving and Spending Survey, which uncovers some good news as well as some red flags about how Americans manage their money today.

Respondents under the age of 35 have the most financial confidence of any age bracket. They’re less likely to use the words “conservative” or “cautious” to describe their approach to saving, and they’re a full 10 percentage points more likely when compared to the overall pool of respondents to say they’re “very confident” that they’ll be able to save enough for retirement.

This apparent contradiction is because young adults are at very different points in their lives, says Nandita Bakhshi, TD Banks’ head of consumer bank. “Some are just graduating from college while others are married and starting a family. This mixed group lends itself to mixed answers.”

Bakhshi adds that because many of them are landing their first “real” post-college jobs, they’re seeing their financial circumstances shift rapidly. “Many of them… finally have extra income they can use to splurge on items they want,” she says, and they also have the ability to save a meaningful amount for the first time in their adult lives. “Seeing their savings grow, even if it is a small amount, is a big accomplishment and gives them a sense of pride and confidence,” she says.

Other recent research yields similar findings. The Bank of America/USA Today Better Money Habits Millennial Report finds that more than two-thirds of young adults have savings or save regularly each month; more than three-quarters of those who have savings goals say they meet them.

But when people were asked where they tend to overspend, millennial respondents to the TD Bank survey are most likely to say they spend too much in all categories, and more likely to say they wish they could save more.

In particular, they stand out for splurging on restaurants, even though they spend less on groceries than other age groups.

Bakhshi says this is a combination of millennials being unable to resist an option that offers greater convenience, and this demographic’s preference for doing things in groups. “Dining out is also considered to be a social event that many millennials look forward to [even if] it may stretch their budget a bit,” she says.

Both surveys find that parents and friends are a big influence on how young people manage their money. The Bank of America/USA Today survey finds that almost two-thirds of young adults say they get financial guidance from their parents, and nearly 30% get financial information from their friends.

The TD Bank survey found that a little more than half of young adults get financial advice from their parents, just over the average for respondents of all ages, but 14% say they turn to their friends — a considerably higher figure than the 8% of all respondents who say the same.

There are other differences that break down by geography rather than age. TD Bank finds that Florida residents, for instance, are much more likely to say that their ideal person to talk about financial strategy with is famous investor and Berkshire Hathaway CEO Warren Buffett.

“Florida has a high population of retirees [who]may no longer have that support system” of friends and family for financial advice, Bakhshi says.

Bostonians are the only group of respondents who say they overspend on gifts for other people, but that generosity has limits: This is also the category more Bostonians say they’d cut back on if they hit a financial tight spot.

New York City residents report higher spending on purchases like restaurant meals and tickets to sporting events, and overspending on more categories like high-end brands and coffee, than people who live in other places do.

“In many urban areas, such as New York, consumers have easy access to many things such as dining out, entertainment and clothing,” Bakhshi says. “It is hard to walk down the street without passing any of these places.”

MONEY financial literacy

Most 20-Somethings Can’t Answer These 3 Financial Questions. Can You?

people taking quiz
Getty Images—Getty Images

A new study finds that young Americans could use some help when it comes to managing their money.

Just in time for financial literacy month, a new San Diego State University study of young Americans has found that they are lacking when it comes to financial knowledge and behavior.

Out of these three questions measuring basic financial knowledge, the average respondent could answer only 1.8 correctly—and only a quarter got all three right. (Answers are at the bottom of this story.)

(1) Do you think that the following statement is true or false? Buying a single company stock usually provides a safer return than a stock mutual fund.

(2) Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow: More than $102, exactly $102, or less than $102?

(3) Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, would you be able to buy more than, exactly the same as, or less than today with the money in this account?

Perhaps most troubling was what the research showed about how respondents have actually been managing their money. The average young person surveyed showed responsible behavior in only one of three categories: Paying off debts on time, budgeting and living within one’s means, and having any retirement savings at all. Only 2% of all respondents showed responsible behavior in all three categories.

Furthermore, the study—led by SDSU professors Ning Tang, Andrew Baker, and Paula Peter—found that there was little to no effect of financial knowledge on financial behavior. That is, young people manage money poorly, even when they know better.

But there is hope for America’s youth, says Tang.

“Our findings suggest that if you want to improve your own financial behavior, the best thing you can do is be open to the influences of others,” says Tang.

Though the study did not examine the influence of peers, its results suggest both family and financial professionals could play an important role in improving young people’s financial habits. The researchers found that being close with parents was correlated with better money management among women—and that higher self-reported levels of being “thorough” and “careful” was correlated with better financial behavior among men. Among both sexes, higher self-reported levels of being “self-disciplined” was correlated with better money habits.

That suggests educators and financial planners should focus on getting young people to be more self-aware in general and more motivated to improve their organizational habits across the board—not just when it comes to finances, says Tang.

“It can be helpful just to be more aware of your own psychological barriers,” she says.

One thing the study did not explore much is the cause of gender differences in the results. For example, the authors did not control for whether parents tend to treat daughters differently than sons.

And the answers to the questions above? They are: (1) false; (2) more than $102; and (3) less than today.

Read Next: This One Question Can Show If You’re Smarter Than Most U.S. Millennials

MONEY Food & Drink

Why You Should Blame Millennials for Spicy Fast Food

flame made out of still life of jalopeno peppers
Gallery Stock

If you want to know why fast food menus are being overloaded with hot flavors and extra spicy sauces, look no further than millennials and their "adventurous" tastes.

Walk into almost any chain restaurant in America and you’re sure to encounter spicy new menu items that’ll put a little sweat on your brow. A few examples:

• This week, Wendy’s rolled out two hot-hot-hot limited-time menu items: the Jalapeno Fresco Spicy Chicken Sandwich and Ghost Pepper Fries.

Hardee’s and Carl’s Jr. introduced El Diablo, a burger featuring not one but “four sources of fiery flavor”: sliced jalapenos, crunchy Jalapeno Poppers, spicy habanero bacon sauce, and pepper-Jack cheese. The company has described the El Diablo—which translates to “like a fighting chicken,” according to Ricky Bobbie in Talladega Nights—as both “fast food’s hottest burger” and a “lava bomb.”

• New chicken-and-rice bowls from KFC offer the magic combo of spicy flavors for millennials—Sweet ‘n Spicy BBQ and Zesty Tex-Mex—and a cheap price point of just $5, including a medium drink and a cookie.

Burger King introduced both a Spicy Big Fish Sandwich and a Spicy BLT Whopper in 2015, as well as an April Fool prank burger-scented perfume called “Spicy.”

• The menu at Popeye’s had Ghost Pepper Wings for a limited time earlier this year, featuring the intense spice of one of the world’s hottest peppers.

Denny’s, Taco Bell, and Pizza Hut are among the outlets that have mixed Sriracha sauce into the menu of late.

What’s behind the up-spice, so to speak? Surely the most extreme flavors will only appeal to a small subset of customers, won’t they?

“I think ghost peppers and other really spicy ingredients are gimmicks,” Nation’s Restaurant News senior food editor Bret Thorn said in a recent discussion about fast food trends. Still, reasonably spicy food is rapidly becoming more mainstream: “We actually are seeing a seismic shift in how Americans respond to spicy food. In fact, now the majority of Americans say they like spicy food.”

“When it comes to spicy food, a lot of the consumer research being done on the topic today clearly shows that the public’s desire for heat just keeps growing and growing every year,” Brad Haley, chief marketing officer of Carl’s Jr. and Hardee’s, said in a press release announcing the El Diablo burger. “We’ve witnessed that phenomenon in our own restaurants, where potential menu items that used to be rated as ‘too spicy’ in our market tests just a few years ago are now just right.”

According to a 2013 Technomic survey, 54% of consumers said they preferred spicy foods and sauces, and high percentages indicated they’re driven to try new flavors (37%) and that new flavors can push them into visiting restaurants (41%). With that in mind, it’s easy to see why more and more restaurants are periodically adding hot new flavors to their menus.

For that matter, this is hardly a new trend. Red Robin first offered a Ghost Pepper burger in 2012, while McDonald’s, Sonic, Burger King, Wendy’s, and Subway have added menu items dashed with habanero, jalapeno, chipotle, and of course Sriracha in recent years.

Yet lately hotness on fast food menus seems to have picked up, well, heat. And, as with so many consumer categories nowadays, appealing to the tastes of millennials is a big motivating force behind the shift. Nearly 75% of millennials say they want to experience more flavors at restaurants, according to Mintel data, while 62% describe themselves as “adventurous eaters” (compared with 54% of all U.S. adults). Sriracha has been declared the “go-to condiment” for millennials as well.

By adding spicier options, restaurants can draw in more adventurous—and younger—customers, and they don’t seem nearly as concerned about alienating their core clientele as they used to be. In the NRN discussion, Thorn recalled that a decade or so ago, in order for a new item to be approved to go national, “it had to score high among the vast majority of their customers, and that meant that they never offered really spicy food because it was considered polarizing.” Tastes have changed for many consumers, and so has the thinking about what’s a good addition to restaurant menus. “Now,” says Thorn, “the food even at mass-market chains has gotten a lot spicier.”

MONEY Financial Planning

Online Financial Planning Is More Popular Than You Think

piggy bank connected to computer mouse
Jan Stromme—Getty Images

Who needs to meet a financial adviser face-to-face? Not millennials and Gen Xers, who are often happier Skyping.

Hi, my name is Katie, and I’m a virtual financial planner.

If this sounds like a support group meeting, sometimes I feel like it should be. When I tell other financial planners that I work with clients across the country, they say, “But clients always value the face-to-face meetings that my firms provides.” So I ask them, “What is the average age of those clients?” The answer is usually in the 60s.

I started my own financial planning firm last year because I wanted to focus on clients under 50, in a way that lets me deliver advice without selling financial products. That doesn’t sound too complicated, does it? One of the ways I do this is by offering my services to people not in my immediate location. We either have a phone call while using screen-sharing software like JoinMe, or we use Skype or Google Hangouts to conduct meetings.

Since I’ve been in the industry for 10 years and always previously met with clients in person, I was a little apprehensive about the idea of not meeting clients face-to-face.

You know what? They don’t care. At all.

The clients I work with are well-educated, busy Gen X and Gen Y professionals. They use technology on a daily basis for work and personal reasons. The married couples I work with are usually both working in high-intensity jobs while juggling the demands of a family. Taking time out of their day to drive to a financial planner’s office, have an hour-long meeting, and drive back to their own workspace would easily eat up two to three hours of valuable time.

When we have a call or virtual meeting, we have a set agenda, the appointment is on their work calendar, and we are able to accomplish everything in 30 to 45 minutes. When we do this, my clients don’t need to spend a bunch of time away from the office, get a babysitter, or drive around town.

Another advantage to my clients (and me!) is that I am able to keep my financial planning prices down. Because I don’t keep an office in an expensive part of town, my overhead costs are lower. I can pass that savings along to my clients. I also have a lot of flexibility to conduct business even when I’m out of town for a conference.

What does a planner need in order to work with clients virtually?

  • A phone, and preferably a phone number that isn’t tied to a particular office space.
  • Comfort with screen-sharing tools.
  • Enough organizational skills to have the topic decided on beforehand — and enough flexibility to be able to answer other questions as they arise.
  • Financial planning software that clients can access online, or a secure client vault for sharing documents back and forth.

That’s it!

Clients that fit best in a virtual relationship are those that are comfortable with technology, somewhat self-sufficient, and aware of why this setup benefits them.

I’ve found that members of Gen X and Gen Y actually like working with a financial planner virtually because they are already comfortable with technology, they’re used to communicating this way, and they like the time-saving convenience. As an added benefit, those clients get to choose an adviser because the adviser specializes in their specific situation, not because the adviser happens to live near them.

———-

Katie Brewer, CFP, is the president of Your Richest Life, where she works virtually with Gen X and Gen Y professionals, helping them create and stick to a financial roadmap to live their richest life. Katie is a fee-only planner, a founding member of the XY Planning Network, and a member of the Financial Planning Association. She is also proud to be a Fightin’ Texas Aggie.

MONEY Millennials

5 Big Myths About What Millennials Truly Want

150119_EM_MillennialMyth
Jamie Grill—Getty Images

We've heard a ton about millennials—where they want to live, what they love to eat, what's most important to them in the workplace, and so on. It's time to set the record straight.

In some ways, it’s foolish to make broad generalizations about any generation, each of which numbers into the tens of millions of people. Nonetheless, demographers, marketers, and we in the media can’t help but want to draw conclusions about their motivations and desires. That’s especially true when it comes to the young people who conveniently came of age with the Internet and smartphones, making it possible for their preferences and personal data to be tracked from birth.

Naturally, everyone focuses on what makes each generation different. Sometimes those differences, however slight, come to be viewed as hugely significant breaks from the past when in fact they’re pretty minor. There’s a tendency to oversimplify and paint with an exceptionally broad brush for the sake of catchy headlines and easily digestible info nuggets. (Again, we’re as guilty of this as anyone, admittedly.) The result is that widely accepted truisms are actually myths—or at least only tell part of the story. Upon closer inspection, there’s good reason to call these five generalizations about millennials into question.

1. Millennials Don’t Like Fast Food
One of the most accepted truisms about millennials—easily the most overexamined generation in history—is that they are foodies who love going out to eat. And when they eat, they want it to be special, with fresh, high-quality ingredients that can be mixed and matched according to their whims, not some stale, processed cookie-cutter package served to the masses.

In other words, millennials are huge fans of Chipotle and fast-casual restaurants, while they wouldn’t be caught dead in McDonald’s. In fact, the disdain of millennials for McDonald’s is frequently noted as a prime reason the fast food giant has struggled mightily of late.

But guess what? Even though survey data shows that millennials prefer fast-casual over fast food, and even though some stats indicate millennial visits to fast food establishments are falling, younger consumers are far more likely to dine at McDonald’s than at Chipotle, Panera Bread, and other fast-casual restaurants.

Last summer, a Wall Street Journal article pointed out that millennials are increasingly turning away from McDonald’s in favor of fast casual. Yet a chart in the story shows that roughly 75% of millennials said they go to McDonald’s at least once a month, while only 20% to 25% of millennials visit a fast-casual restaurant of any kind that frequently. Similarly, data collected by Morgan Stanley cited in a recent Business Insider post shows that millennials not only eat at McDonald’s more than at any other restaurant chain, but that they’re just as likely to go to McDonald’s as Gen Xers and more likely to dine there than Boomers.

At the same time, McDonald’s was the restaurant brand that millennials would least likely recommend publicly to others, with Burger King, Taco Bell, KFC, and Jack in the Box also coming in toward the bottom in the spectrum of what millennials find worthy of their endorsements. What it looks like, then, is that millennials are fast food regulars, but they’re ashamed about it.

2. Millennials Want to Live in Cities, Not Suburbs
Another broad generalization about millennials is that they prefer urban settings, where they can walk or take the bus, subway, or Uber virtually anywhere they need to go. There are some facts to back this up. According to an October 2014 White House report, millennials were the most likely group to move into mid-size cities, and the number of young people living in such cities was 5% higher compared with 30 years prior. The apparent preference for cities has been pointed to as a reason why Costco isn’t big with millennials, who seem to not live close enough to the warehouse retailer’s suburban locations to justify a membership, nor do their apartments have space for Costco’s bulk-size merchandise.

But just because the percentage of young people living in cities has been inching up doesn’t mean that the majority actually steer clear of the suburbs. Five Thirty Eight recently took a deep dive into Census data, which shows that in 2014 people in their 20s moving out of cities and into suburbs far outnumber those going in the opposite direction. In the long run, the suburbs seem the overwhelming choice for settling down, with roughly two-thirds of millennial home buyers saying they prefer suburban locations and only 10% wanting to be in the city. It’s true that a smaller percentage of 20-somethings are moving to the suburbs compared with generations ago, but much of the reason why this is so is that millennials are getting married and having children later in life.

3. Millennials Don’t Want to Own Homes
Closely related to the theory that millennials like cities over suburbs is the idea that they like renting rather than owning. That goes not only for where they live, but also what they wear, what they drive, and more.

In terms of homes, the trope that millennials simply aren’t into ownership just isn’t true. Surveys show that the vast majority of millennials do, in fact, want to own homes. It’s just that, at least up until recently, monster student loans, a bad jobs market, the memory of their parents’ home being underwater, and/or their delayed entry into the world of marriage and parenthood have made homeownership less attractive or impossible.

What’s more, circumstances appear to be changing, and many more millennials are actually becoming homeowners. Bloomberg News noted that millennials constituted 32% of home buyers in 2014, up from 28% from 2012, making them the largest demographic in the market. Soaring rents, among other factors, have nudged millennials into seeing ownership as a more sensible option. Surveys show that 5.2 million renters expect to a buy a home this year, up from 4.2 million in 2014. Since young people represent a high portion of renters, we can expect the idea that millennials don’t want to own homes to be increasingly exposed as a myth.

4. Millennials Hate Cars
Cars are just not cool. They’re bad for the environment, they cost too much, and, in an era when Uber is readily available and socializing online is arguably more important than socializing in person, having a car doesn’t seem all that necessary. Certainly not as necessary as a smartphone or broadband. Indeed, the idea that millennials could possibly not care about owning cars is one that has puzzled automakers, especially those in the car-crazed Baby Boom generation.

In many cases, the car industry has disregarded the concept, claiming that the economy rather than consumer interest is why fewer young people were buying cars. Whatever the case, the numbers show that the majority of millennials will own cars, regardless of whether they love them as much as their parents did when they were in their teens and 20s. According to Deloitte’s 2014 Gen Y Consumer Study, more than three-quarters of millennials plan on purchasing or leasing a car over the next five years, and 64% of millennials say they “love” their cars. Sales figures are reflecting the sentiment; in the first half of 2014, millennials outnumbered Gen X for the first time ever in terms of new car purchases.

5. Millennials Have a Different Attitude About Work
As millennials entered the workforce and have become a more common presence in offices around the world, much attention has been focused on the unorthodox things that young people supposedly care more about than their older colleagues. Millennials, surveys and anecdotal evidence have shown, want to be able to wear jeans and have flexible work hours to greater degrees than Gen X and Boomers. Young people also want to be more collaborative, demand more feedback, and are less motivated by money than older generations.

That’s the broad take on what motivates millennial workers anyway. An IBM study on the matter suggests otherwise, however. “We discovered that Millennials want many of the same things their older colleagues do,” researchers state. There may be different preferences on smaller issues—like, say, the importance of being able to dress casually on the job—but when it comes to overarching work goals achieved in the long run, millennials are nearly identical to their more experienced colleagues: “They want financial security and seniority just as much as Gen X and Baby Boomers, and all three generations want to work with a diverse group of people.”

What’s more, IBM researchers say, millennials do indeed care about making more money at work, and that, despite their reputation as frequent “job hoppers,” they jump ship to other companies about as often as other generations, and their motivations are essentially the same: “When Millennials change jobs, they do so for much the same reasons as Gen X and Baby Boomers. More than 40 percent of all respondents say they would change jobs for more money and a more innovative environment.”

MONEY Macroeconomic trends

8 Surprising Economic Trends That Will Shape the Next Century

crowd of people
Douglas Mason—Getty Images

Here are the stories that will matter in the years ahead.

Forget monthly jobs reports, GDP releases, and quarterly earnings. As I see it, there are eight important economic stories worth tracking right now that could have a big impact in the coming decades.

1. The U.S. population age 30-44 declined by 3.8 million from 2002 to 2012. That cohort is now growing again. By 2023 there will be an estimated 5.8 million more Americans aged 30 to 44 than there are now, according to the Census Bureau. This is important, because this age group spends tons of money, buys lots of homes and cars, and start lots of new businesses.

2. U.S. companies have $2.1 trillion cash held abroad. Much of this is because we have an inane tax code that taxes foreign profits twice: Once in the country they’re earned in, and again when companies bring that money back to the United States. If Congress ends this rule and switches to a territorial tax system — in which countries can bring foreign-earned cash back to their home country without paying another layer of taxes, as every other developed country allows — there could be a flood of new dividends, buybacks, and investments in America. It’s huge, pent-up demand waiting to be spent.

3. U.S. infrastructure is in disastrous shape. Roads, bridges, dams, and other public infrastructure have been neglected for years. The American Society of Civil Engineers estimates that $3.6 trillion in new investment is needed by 2020 to bring the country’s infrastructure up to “good” condition. Will this happen soon? Of course not. This is Congress we’re talking about. But the good news is that this work must eventually be done. You can’t just let critical bridges and water structures fail and say, “Damn. That Brooklyn Bridge was nice while we had it.” Things will have to be repaired. Sooner rather than later would be smart, because we can borrow now for zero percent interest. But someday, it will happen. And it’ll be a huge boon to jobs and growth when it does.

4. The whole structure of modern business is changing. I’m not sure who said it first, but this quote has been floating around Twitter lately: “In 2015 Uber, the world’s largest taxi company owns no vehicles, Facebook the world’s most popular media owner creates no content, Alibaba, the most valuable retailer has no inventory, and Airbnb, the world’s largest accommodation provider owns no real estate.” Fundamental assumptions about what is needed to be a successful business have changed in just the last few years.

5. California is one of the most important agricultural states, growing 99% of the nation’s artichokes, 94% of broccoli, 95% of celery, 95% of garlic, 85% of lettuce, 95% of tomatoes, 73% of spinach, 73% of melons, 69% of carrots, 99% of almonds, 98% of pistachios, and 89% of berries (the list goes on). And the state is basically running out of water. Jay Famiglietti, senior water scientist at the NASA Jet Propulsion Laboratory, wrote last week: “Right now the state has only about one year of water supply left in its reservoirs, and our strategic backup supply, groundwater, is rapidly disappearing. California has no contingency plan for a persistent drought like this one (let alone a 20-plus-year megadrought), except, apparently, staying in emergency mode and praying for rain.” This could change rapidly in one good winter, but it could also turn into a quick tailwind on food prices. It could also be a huge boost for desalination companies.

6. New home construction will probably need to rise 40% from current levels to keep up with long-term household formation. We’re now building about 1 million new homes a year. That will likely have to rise to an average of 1.4 million per year, which combines Harvard’s Joint Center for Housing Studies’ projection of 1.2 million new households being formed each year and an annual average of 200,000 homes being lost to natural disaster or torn down. This is important because new home construction is, historically, one of the top drivers of economic growth.

7. American households have the lowest debt burden in more than three decades. And the largest portion of household debt is mortgages, most of which are fixed-rate. So when people ask, “What’s going to happen to debt burdens when interest rates rise?”, the answer is “Probably not that much.”

8. America has some of the best demographics among major economies. Between 2012 and 2050, America’s working-age population (those ages 15-64) is projected to rise by 47 million. China’s working-age population is set to shrink by 200 million, Russia’s to fall by 34 million, Japan’s by 27 million, Germany’s by 13 million, and France’s by 1 million. People worry about the impact of retiring U.S. baby boomers, but the truth is we have favorable demographics other countries can’t even dream about. This is massively overlooked and underappreciated.

There’s a lot more important stuff going on, of course. And the biggest news story of the next 20 years is almost certainly something that nobody is talking about today. But if I had to bet on eight big trends that will very likely make a difference, these would be them.

For more:

MONEY 401k plans

The Secrets to Making a $1 Million Retirement Stash Last

door opening with Franklin $100 staring through the crack
Sarina Finkelstein (photo illustration)—Getty Images (2)

More and more Americans are on target to save seven figures. The next challenge is managing that money once you reach retirement.

More than three decades after the creation of the 401(k), this workplace plan has become the No. 1 way for Americans to save for retirement. And save they have. The average plan balance has hit a record high, and the number of million-dollar-plus 401(k)s has more than doubled since 2012.

In the first part of this four-part series, we laid out what you need to do to build a $1 million 401(k) plan. We also shared lessons from 401(k) millionaires in the making. In this second installment, you’ll learn how to manage that enviable nest egg once you hit retirement.

Dial Back On Stocks

A bear market at the start of retirement could put a permanent dent in your income. Retiring with a 55% stock/45% bond portfolio in 2000, at the start of a bear market, meant reducing your withdrawals by 25% just to maintain your odds of not running out of money, according to research by T. Rowe Price.

150320_MIL_TameMix
Money

That’s why financial adviser Rick Ferri, head of Portfolio Solutions, recommends shifting to a 30% stock and 70% bond portfolio at the outset of retirement. As the graphic below shows, that mix would have fallen far less during the 2007–09 bear market, while giving up just a little potential return. “The 30/70 allocation is the center of gravity between risk and return—it avoids big losses while still providing growth,” Ferri says.

Financial adviser Michael Kitces and American College professor of retirement income Wade Pfau go one step further. They suggest starting with a similar 30% stock/70% bond allocation and then gradually increasing your stock holdings. “This approach creates more sustainable income in retirement,” says Pfau.

That said, if you have a pension or other guaranteed source of income, or feel confident you can manage a market plunge, you may do fine with a larger stake in stocks.

Know When to Say Goodbye

You’re at the finish line with a seven-figure 401(k). Now you need to turn that lump sum into a lasting income, something that even dedicated do-it-yourselfers may want help with. When it comes to that kind of advice, your workplace plan may not be up to the task.

In fact, most retirees eventually roll over 401(k) money into an IRA—a 2013 report from the General Accountability Office found that 50% of savings from participants 60 and older remained in employer plans one year after leaving, but only 20% was there five years later.

Here’s how to do it:

Give your plan a shot. Even if your first instinct is to roll over your 401(k), you may find compelling reasons to leave your money where it is, such as low costs (no more than 0.5% of assets) and advice. “It can often make sense to stay with your 401(k) if it has good, low-fee options,” says Jim Ludwick, a financial adviser in Odenton, Md.

More than a third of 401(k)s have automatic withdrawal options, according to Aon Hewitt. The plan might transfer an amount you specify to your bank every month. A smaller percentage offer financial advice or other retirement income services. (For a managed account, you might pay 0.4% to 1% of your balance.) Especially if your finances aren’t complex, there’s no reason to rush for the exit.

Leave for something better. With an IRA, you have a wider array of investment choices, more options for getting advice, and perhaps lower fees. Plus, consolidating accounts in one place will make it easier to monitor your money.

But be cautious with your rollover, since many in the financial services industry are peddling costly investments, such as variable annuities or other insurance products, to new retirees. “Everyone and their uncle will want your IRA rollover,” says Brooklyn financial adviser Tom Fredrickson. You will most likely do best with a diversified portfolio at a low-fee brokerage or fund group. What’s more, new online services are making advice more affordable than ever.

Go Slow to Make It Last

A $1 million nest egg sounds like a lot of money—and it is. If you have stashed $1 million in your 401(k), you have amassed five times more than the average 60-year-old who has saved for 20 years.

But being a millionaire is no guarantee that you can live large in retirement. “These days the notion of a millionaire is actually kind of quaint,” says Fredrickson.

Why $1 million isn’t what it once was. Using a standard 4% withdrawal rate, your $1 million portfolio will give you an income of just $40,000 in your first year of retirement. (In following years you can adjust that for inflation.) Assuming you also receive $27,000 annually from Social Security (a typical amount for an upper-middle-class couple), you’ll end up with a total retirement income of $67,000.

In many areas of the country, you can live quite comfortably on that. But it may be a lot less than your pre-retirement salary. And as the graphic below shows, taking out more severely cuts your chances of seeing that $1 million last.

150320_MIL_Withdrawals
Money

What your real goal should be. To avoid a sharp decline in your standard of living, focus on hitting the right multiple of your pre-retirement income. A useful rule of thumb is to put away 12 times your salary by the time you stop working. Check your progress with an online tool, such as the retirement income calculator at T. Rowe Price.

Why high earners need to aim higher. Anyone earning more will need to save even more, since Social Security will make up less of your income, says Wharton finance professor Richard Marston. A couple earning $200,000 should put away 15.5 times salary. At that level, $3 million is the new $1 million.

Your browser is out of date. Please update your browser at http://update.microsoft.com