The 100-Year Life

“An asset is something that can provide a flow of benefits over a period of time. But will diminish over time due to neglect: depreciation.”

I like how the book draws parallels between your life and who you with a business. After reading this book, it made me write a balance sheet of me, my tangible assets: money in bank, liquid possessions*, intangible assets: knowledge, relationships, personality traits, and my liabilities: outgoings, depreciation, negative personality traits.

Tangible assets have always been a focus for life, income from employment, paying off the mortgage of a house, savings etc. But intangibles were never valued, simply because, like in real business, you can’t give a value to something not tangible – i.e. branding, a trademark. How can you put a price on knowledge that you accumulated, a connection to an important person, knowing a second language, the innate ability to embrace change. Something my dad used to say to me, “you can’t put a price on good health”. This chapter sums up what I have unknowingly be doing my whole life, (spending my tangibles i.e. money), but in order to gain a wider range of intangible assets: two university degrees, moving to China, building confidence through a sales job, even starting this blog! It was satisfying to read that it wasn’t all in vain, or just for my own gratification, but actually gives me the insight and the skills to change careers, country, significant other and more importantly adapt positively to that change.

However, as per he quote above, all assets depreciate over time. Knowledge can be forgotten, friendships can dwindle, health worsens over time. And it is importance to remember intangible assets are irreversible. Unlike money, you can transfer it from one bank to another. If you decide to move country, you can’t swap a friend for another instantaneously. Thus, care should be taken when choosing the intangible portfolio you wish to create for yourself.

_{*for those who didn’t study finance/accounting, this means possessions with fast liquidity. In this instance, stuff I could sell tomorrow for cash, e.g. car, jewellery, first edition books. Arguably, everything can be sold for a price, so this is personal to you, but I have things which are not worth the hassle of selling, e.g. my scuffed trainers, and also items which are worth so much sentimental value no amount of cash could make me sell them e.g. my grandmother’s watch.}

Conclusion

I found the conclusion of the book rather disappointing. I wasn’t expecting it to have in black and white how I should live my 100 year life. However, the final remarks seemed to abandon the entire premise of the book. It basically ends rather depressingly that governments will act too slow to financially support anyone this generation, the educational system is outdated and seems no immediate change will occur , as a result, large companies will be slow to act. If you are born in the 90s or later, the difference between the successful and those who are not will be those who actively seek intangibles, and not wait to be given opportunities which will probably be available for the next generation. A rather depressing thought to end on!

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Already, I’ve mentioned how the authors fail to identify the changes in science and technology, particularly medicine and robotics. However, the authors do save themselves by admitting that those will alter the future more than we can possibly imagine. Therefore, writing about it is a near impossible task so why bother. The one major issue I have with the scenarios in the book is how it only really explains the life of people in a certain demography: middle class. How do people in low income families break out and live the “exploring phase” with no education or money. I would even argue to say that the book suggests those doing manual labour and those with “intangible assets” will actually cause more separation in society.

I find the book really mixes hope and encouragement with an overall feeling of helplessness. On the one hand, it’s amazing we get these extra 30 years of life, no need to rush into work, start families, getting to 60 isn’t considered old anymore. Yet, unless you are smart about it in your early life, you will live retirement in poverty, unable to save for your children. Furthermore, apparently the gender wage is predicted to become equally in 2085! As a woman, that’s an incredibly depressing revelation.

Considering one of the authors is a psychologist, I would have liked to read more about relationships and the viability of one lasting a lifetime. Although, it does stress the importance of finding the right partner with similar goals, values and aspirations, and not just base marriage around love. But it mainly discusses marriage from a financial perspective. Living with a partner is cheaper, and combining assets is more beneficial in the long run then going solo. For example, when one is having a career change, or deciding to learn new skills, it is easier to do this with a partner who can financially still support the family. Does this mean we are to live a future of serious co-dependence on our partners? Woman used to depend entirely on their husbands as the breadwinner, now with a society where woman earn (almost) equal to men, will men equally depend on their partners in order to sustain this longer life and the multiple stages. Divorce won’t just be about money settlements, who gets the house and sharing the childcare. Divorce might also make it impossible to switch careers. I’m disappointed Lynda Gratton didn’t discuss how this co-dependence will affect our mental health and the health of our relationships, or should I say “intangibles”.

I would recommend the ideas of this book to almost anyone. Anyone in university needs to understand the importance of building solid connections and knowledge. And also know they don’t need to start a carreer straightaway, building up those intangible assets is key. I would recommend it to anyone looking for a career change, to understand it is becoming the norm and they shouldn’t feel isolated, and the best way to go about it. I would even recommend it to someone in retirement, a grandparent perhaps, just for them to understand why their 23 year old granddaughter has decided to spend one year in Nicaragua learning Spanish and volunteering at local schools. The older generation has a stigma against that they are suck in their ways. Well, that life is the only one they know, it’s what they went through, and all their friends around them. The ideas in this book will help them see how society is changing and how not being loyal to a company from the age of 16 is a perfectly normal thing not to want.

Overall, I do find the book a little repetitive. A summary of the book (like this one) would suffice reading it. All the main points, and general discussion are in the first 3-5 chapters. After that, all the ideas tend to repeat themselves or are just said in a different context. It also leans towards a description of the current lack of societal adaptation rather than a guide to live a longer life; except for saying, what many would argue is obvious for the millennial generation: Be open to change, build your network, learn as much as possible, experience as much as you can, settle down later. Personally, I find the conclusions of the book bleak, however, I have read other reviews of people claiming it to be encouraging. My favourite quote from the book: