Ep. 401: Win, Lose, or Fail: Economic Recovery by Industry

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This week on the Pete the Planner Show, Pete and Damian do a lightning round review of industries to see how they might fare in the recovery of our economy!

Remember: In the first six months of 2021, we’re going to make over five families’ financial lives, LIVE on the air! WE’RE GIVING AWAY FIVE FREE HEY MONEY, MEMBERSHIPS to walk with them across six months telling their stories about their struggles in personal finances.

No time to listen? BUMMER. Here’s some of what happened and when:

Show Notes:

401(k) BALANCES BY AGE: [4:30]

  • CNBC’s “Make It” segment started a great conversation: “What is the average balance in a 401(k) according to age?”

    • 20-29: $15,000  [contribution ave.: 7.4% – should be 12-14%]
    • 30-39: $50,800  [contribution ave.: 8.3% – not enough]
    • 40-49: $120,800  [contribution ave.: 8.9% – not enough]
    • 50-59: $203,600  [contribution ave.: 10.4%]
    • 60-69: $229,100  [contribution ave.: 11.4%]
    • 70+: $213,600
  • Damian and Pete (and our live listeners) have all sorts of issues with this chart. You’ve gotta listen to this to set your expectations.


WIN, LOSE, OR FAIL?:
[15:30]

  • Pete: Consumer demand is real: the next 18 months might be a huge economic boom. Let’s look at different industries to predict if they’ll Win, Lose, or Fail
    • Airlines:
      • Damian: WIN – people will travel like they never have before.
      • Pete: WIN – but I’ve gotten several vouchers for free travel that I can use. Is that just me?
    • Restaurants:
      • Damian: WIN – I’ve got my fingers crossed
      • Pete: WIN – burgers and pizza places especially
    • ZOOM & Telework services:
      • Damian: LOSE – maybe it’s my own opinion, but I think people will prefer in-person interaction after this
      • Pete: LOSE – it’s tough. I don’t think they’ll fail.
    • Commercial Real Estate:
      • Damian: LOSE – Hybrid models and spatial needs reconsiderations are going to be high
      • Pete: LOSE – I agree.
    • Residential Real Estate:
      • Damian: LOSE – It’s gotta slow down, right?
      • Pete: LOSE – I’ve got a loss on this one as well
    • Malls:
      • Damian: LOSE – Short term, FAIL – Lon-term
      • Pete: LOSE – We are in lock-step today.
    • Home Renovation Companies:
      • Damian: WIN – As people want to be comfortable at home, yep. Win.
      • Pete: LOSE – We disagree. People are going to want to spend their money in other places.
    • Groceries:
      • Damian: WIN – Toss up.
      • Pete: LOSE – If restaurants win, how can grocery stores win?
    • Liquor Stores:
      • Damian: WIN. 
      • Pete: LOSE – People drink in good times and bad, but buying habits are going to change
    • Boats and RVs:
      • Damian: LOSE.
      • Pete: LOSE.
    • Hotels:
      • Damian: WIN.
      • Pete: WIN.
    • Rental Cars:
      • Damian: WIN.
      • Pete: WIN. 

 

There’s so much more in the full show, including the laughs!  — click PLAY below for the full show.


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