A few weeks ago, I won a copy of a book called The Number through a promotion at InBubbleWrap. I wasn't really sure what the book was about -- it wasn't even published yet -- but I love winning stuff. So when it finally arrived (yes, carefully cushioned in bubblewrap!), I tore right into it.
After I'd had my fun snapping all the bubbles, I took a closer look at the book. Uhoh, what's this? The back cover says it's about life, death and...MONEY?!? Yuck! Rather off-putting for someone who's been a master procrastinator when it comes to planning for the future. It might have ended up buried in my 'meaning to read someday' pile, if not for an unexpected incentive: InBubblewrap contacted me to see if I'd be interested in doing an email interview with the author.
Hmmmmm...I've never done anything like that before. The opportunity intrigued me -- except for the fact that I would have to actually read the book NOW, not later (they wanted my questions by mid-January). Picture me gritting my teeth and wincing as I prepared to take the scab off my fears, ignorance and lack of initiative about Financial Well-Being. But I have to admit that once I started reading, I was engrossed. This book is definitely going on my 'Top 10' reading list.
While I think a broader perspective would have been good (most of the interviews and stories seemed to be focused on well-educated, affluent men), that didn't prevent me from appreciating the wisdom and worries that were explored in the book.
The Number isn't only about how much money you're going to need to get you to death's door. It's about having the freedom to make the next half of your life be even more productive, purposeful and enjoyable than the first half. And it's about recognizing that if you want that option, you're going to have to create it for yourself; it's not going to happen magically. The Number is your dear friend, Quality of Life, sitting you down for a long-overdue intervention. Except it's not nearly as scarey as you think it's going to be, thanks to Mr. Eisenberg's always honest, often witty approach.
The Number is on the shelf at your neighborhood bookstore now (or you can just click on the picture above to find it at Amazon). And here's the interview with Lee Eisenberg, who was quite gracious about answering questions from a very green interviewer:
KM: For those who haven't read the book yet, can you explain what you mean by 'the Number'?
LE: The Number is the amount of money you think you need to feel secure over the course of the rest of your life, taking into account that the rest of a life isn't what it used to be. The new Rest of Your Life is typically longer and fraught with uncertainties that you, and you alone, must prepare for -- that is, without the old support systems that were designed to pay for retirement, such as corporate pensions and secure Social Security.
KM: Throughout the book, you talk about people's preoccuption with their Number, even though most don't know where they stand and are loath to talk about it. There seems to be such a taboo about the subject - and yet you write about your own fears and experiences very openly. Was it a conscious decision to write from such an intimate perspective?
LE: I don't think there's that much me in the book -- the story's mainly concerned with the hundreds of people and dozens of financial advisers I talked to. As for my own life, I principally drew on my decision to uproot my family from New York to Wisconsin -- a last ditch grasp at a bigger Number -- as well as my so-called Lost Years, when I frittered away my twenties, thirties, and even forties, not much thinking about the second-half. These represent not much more than a dozen pages in the book. As for my own Number, I don't reveal what it is, nor do I think anyone has an obligation to go public with it. But your spouse has a right to know, which many financial advisers told me isn't always the case.
KM: What changes do you think we'll see with regards to life after retirement for baby boomers? How is retirement different for them than for their parents, for example?
LE: We hear about the differences a lot these days. Longer lives. The need to captain your own financial ship. A powerful sense of "lifestyle entitlement." A strong resistance to the idea that compromises and sacrifices will need to be made.
KM: What changes do you predict for the generations coming right behind the baby boomers? How will they approach the Number differently as they begin their adult life?
LE: People now in their twenties and thirties are beginning to get the point: it'll be up to them, not their employers, nor the government, to supply the security blanket.
KM: You describe the "New Senior", as someone who is "generally far more vital and productive into their eighties and nineties than Old Seniors." They aren't only concerned with "buying things to maintain their lifestyle"; they are concerned about the world around them and want to stay connected, keep contributing. What else did you discover about the New Seniors that goes against convention or was surprising?
LE: In several conversations with a man named David Wolfe, who's a very smart thinker when it comes to the "New Senior," I was struck by how aging people feel the need to teach, mentor, assist, give something back. And that they don't like Yes or No answers when surveyed, preferring "It depends." This is why so many marketers fail to get a good read on the older market. They don't ask the right questions, and don't appreciate the importance of nuance when asking seniors about their opinions on issues, or when trying to sell them something.
KM: You spoke with many affluent, professional people in white-collar careers who know that they should be concerned with their Number, even if they're somewhat vague about it. What about the less affluent working class who are struggling to make ends meet; how do they view the money and spiritual aspects of the Number as they approach the 'rest' of their lives?
LE: Let's be clear: to even get to worry about a Number is to put a person way ahead of the game. The income and wealth disparity in this country is shocking. Nonetheless, those who are trying to make ends meet also need and deserve counsel about how to navigate the second-half. Where that will come from is a total and depressing mystery to me.
KM: I loved what you had to say about Wealth Care Reform. What are some things that the financial services industry needs to do differently to stay in the 'Number' game?
LE: In the coming years there will be two big trends, backed up by huge marketing campaigns: you'll hear more and more about "life planning" as opposed to traditional, dollar-and-cents financial planning; and financial services firms will zero in on women who, by virtue of longevity, will eventually come to claim custody of trillions of dollars of Numbers out there, and will need assistance managing it.
KM: Some companies are being proactive about helping their employees know where they stand and plan for life after retirement, while other organizations seem uninterested or oblivious. What do companies like Weyerhaeuser see that the others are missing? How is it in the best interests of an organization to help employees in this way?
LE: It's just good business to help people prepare for the second half. It advances employee retention; and it leads to more flexible work schedules and other innovations, a benefit to employers and employees alike.
KM: Has your definition of wealth changed since you wrote this book?
LE: Can't say that it has, given that the book was researched and written over the past two years. What IS changing rapidly is the acceptance that YOU'RE responsible for managing your own middle- and old-age.
KM: Have you changed how you're living your life or how you see your own Number as a result of this experience?
LE: I have a much firmer fix on the mechanics of personal finance than before. I know that common sense is what it's about, not a lot of gobbledygook theories, or exotic investment schemes. I also believe, as I say in the book, that an examined life may or may not be worth living, but it's almost always less costly than an unexamined one.
This is a good interview. Thanks for posting. I just finished "The Number" and found it a great read and balanced summary of the things we shold have straight as we sail into the final quartile of our lives.
Posted by: Bill | Jan 24, 2006 at 04:53 AM