Futurist Financial Advisor
Earlier this year I got a deal on a book at the library book sale. It was The Truth About Your Future, by Ric Edelman, who is an independent financial advisor. He has ties to the Singularity University, which is a consultancy and professional educator of executives, with focus on “exponential technologies”. In his book, he shares the potential effects of exponential technology changes on your career, your lifestyle, and your plans for retirement. He is a futurist financial advisor.
I will warn you, this book might rattle your thinking about your future. There are changes coming in business models that will affect your career opportunities and your lifestyle options.
He introduces the term “exponential technologies” and details the many areas where it shows up. Published in 2017, this book relates the rapid changes in the “internet of things”, where everything running on electricity is becoming connected to the internet. In addition, he explains the problem of colleges not keeping up with the changes in technology and the effects on work opportunities, which will require continuous learning to keep up.
There are several events he noted that have more recently started getting more press coverage. The advances in online shopping and improved delivery systems have changed the retail business model, leaving big box retailers scrambling for online presence.
The auto industry has been forced to make major changes with the advances in EVs and SDVs (self-driving vehicles). The technology that makes Uber and Lyft successful has made owning a vehicle less demanding. Imagine the turmoil that is coming for all businesses related to the automotive industry.
Eric notes the advances in medicine which will help us live longer and make financing your retirement more difficult to cover those extra years.
Do I have your attention? Is your financial advisor a futurist?
Test Your Picture of the Future
Many of our plans come with assumptions. Occasionally, you would be wise to test those assumptions.
Will your job still exist in five years? If in doubt, ask AI. What will your next car be like? Will you be able to buy fuel? Will your house be paid for when you retire? Will you still want to live in it by then? Will Social Security still exist by the time you retire?
These are personal questions that relate to most assumptions made in long-term planning. There are many more questions and assumptions, for sure. But a reflection on what will affect those assumptions over time could reveal a need to consider what you might do differently.
Do this test to clarify your picture of the future you are planning.
Be Fascinated but Prepare for Change
Do not stand on the sidelines of life and wonder what just happened when you lost your job due to changes in technology.
It is easy to be fascinated by the advances in AI, self-driving vehicles, drones that make deliveries, and satellite transmissions that allow you to get internet reception anywhere in the world.
That is, until you are forced to use AI at work, find yourself driving alongside a vehicle with no driver, hear about drones shooting at people, and learn that your social media knows your location and what you are shopping for.
You can learn to take advantage of exponential technology changes. The key, however, is to make learning an ongoing process and a daily habit.
If you want your future to develop with secure confidence, you must be actively involved with recognizing the changes that affect those plans.
Exponential Technologies Considered
Mr. Edelman identified several areas of technology that are changing exponentially.
In his book, The Truth About Your Future, he makes a short review of the following:
- AI—Artificial Intelligence
- Machine Learning
- Nanotechnology and Material Science
- Augmented and Virtual Reality
- Robotics
- 3D Printing
- Bionics
- Bioinformatics
- Medicine and Neuroscience
- Energy and Environmental Systems
- Big Data
- Education Technology
- Leisure and recreation and finance technologies
He notes that you need to be aware of these changes and the implications for you and your personal finances— “now, later, and much later.”
Moving Toward the Unknown
You may not have experienced the current effects of any of these technology changes, yet. However, you will. These changes will affect everyone in some way, soon.
Ric Edelman divides his book into two parts. In Part I, he describes the changes taking place in his list of exponential technologies. Then, in Part II, he explains what these changes mean for personal finance. He notes that the changes coming do not fit the old model for your retirement plans.
Most of us will live longer than the Social Security System was set up to fund. Therefore, unless you are dedicated to making contributions to your retirement account, you might need to work in retirement.
Perhaps this book sounds like a Sci-Fi horror to you. But it just shows that we need to learn more about the unknown.
Not everything we read about is comforting. But we need to know more, especially how the evil thinkers of the world will find ways to use this new technology to take advantage of us. The elderly are already experiencing that. Be prepared so you can avoid being robbed of your future!
Remember that old saying: Being forewarned is being forearmed!
Changes to Career Plans
Your personal finances rely heavily on being able to earn an income.
So, be alert to changes in technology and the possible need for skill training for better career opportunities.
You must prepare for changes that will affect your career options. I am retired but I experienced the changes and lost jobs due to not being prepared to work with computer upgrades and changes in software complexity.
Now, change comes faster. You cannot afford to sit still and not try to keep pace with what needs to be learned. Continuous learning and improvement must become a part of your work life for consistent earning capacity!
Changes mean you will have to adjust. Be careful not to become too comfortable with your current job.
Therefore, you need to monitor your personal financial situation to accommodate change. Keep debt under control. Pay it off. Periods of unemployment will be easier to handle.
Make saving a priority. That will become your security against the unknown!
Make Observations on What Will Affect Your Future
When you read about some of the exponential technology advances noted in the news, you can reflect on what Mr. Edelman explained in his book as to how it may affect your plans.
How is your health? I want to live longer, which may reflect my attitude, but that attitude affects my discipline to exercise and try to eat better and see my doctor.
How are your savings habit and your current lifestyle? Are you too busy to budget? Are you on schedule for what you need to retire? How do you want to live in retirement? And for how long?
Make your plans but make regular reviews to see what may be changing in your assumptions and adjust.
A Reason to Consider Retirement Planning
For you, retirement might be years away. That is good but not a reason to ignore making plans.
You need years of consistent saving and investment to retire with enough to fund your peace of mind and all your activities and being a help to your family.
You can hide from your work life in retirement, but you cannot hide from the changes that will affect your personal finances.
I have chosen to share this book with you as a motivation to help you build a better mindset for money!
Learn “the truth about your future and the money guide you need now, later, and much later!”