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Amazon Reshaping How America Shops | Multimillionaire College Athletes · The Bill Handel Show

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  Speaker 1: You're listening to Bill Handel On Demand from KFI AM 640.
• 0:05
  Speaker 1: KFI AM 640.
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  Speaker 2: Bill Handel here on a Thursday morning, September the 17th. Oh, Amy, Neil,
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  Speaker 2: over the edge and up the creek and through the
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  Speaker 2: water we go.
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  Speaker 1: To grandmother's house we go.
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  Speaker 2: Yes. Yes.
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  Speaker 3: We're going over the edge for Union Rescue Mission. It's
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  Speaker 3: a week from tomorrow. Neil and I are going to
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  Speaker 3: rappel 26 stories down the side of the Union or
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  Speaker 3: the University City Hilton. That's the one that you can see.
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  Speaker 3: It's the big black hotel that you see as you're
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  Speaker 3: driving down the 101. And we're doing it to raise
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  Speaker 3: money to fight homelessness and doing it for an organization
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  Speaker 3: that actually gets people off the streets and into homes.
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  Speaker 4: Yeah, better rates than the locals here in Los Angeles,
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  Speaker 4: getting people to not only get in houses, but get
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  Speaker 4: jobs and the like. So if you go to URM, unionrescuemission.org,
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  Speaker 4: URM.org slash OTE for over the edge, you'll see a
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  Speaker 4: little KFI button there, Team KFI.
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  Speaker 1: Click on that.
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  Speaker 4: You can donate to either of us. It all goes
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  Speaker 4: to the same place. We just are a little slower
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  Speaker 4: this year. We would love to catch up.
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  Speaker 1: Okay, and yeah, that's important.
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  Speaker 2: And I always, you're going to get my $ 2. And
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  Speaker 2: one of the things I do is I always donate
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  Speaker 2: anonymously because I donate so little people think of me
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  Speaker 2: as being this cheap bastard. Okay, by the way, it's
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  Speaker 2: Universal City. You said University City. Universal right after the 101. Okay,
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  Speaker 2: over the edge. They are a monthly donation of mine.
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  Speaker 2: So I'm not asking anybody to do anything that I
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  Speaker 2: don't do.
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  Speaker 1: Fair enough.
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  Speaker 2: Now, I want to talk about Amazon for a moment.
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  Speaker 2: One of the things about Amazon is that Jeff Bezos
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  Speaker 2: really was a visionary, I mean, in a big way.
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  Speaker 2: A lot of these major, major, insane Internet companies were
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  Speaker 2: created mainly sort of as a mistake.
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  Speaker 1: Facebook with Zuckerberg.
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  Speaker 2: He was at Harvard and they were playing around with
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  Speaker 2: a program that was actually putting numbers on women's looks.
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  Speaker 1: And that was what it's about. That's it.
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  Speaker 2: He and his friends were saying, okay, she's a 10,
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  Speaker 2: he's an eight. And they put together this Facebook thing.
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  Speaker 2: And it was sort of an accident. Jeff Bezos, when
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  Speaker 2: he went into retailing on the internet, Amazon, he knew
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  Speaker 2: exactly what the future was going to hold.
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  Speaker 1: I mean, he.
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  Speaker 2: Had it from minute one. You talk about a visionary.
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  Speaker 2: There he is. So he creates Amazon. And here's a
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  Speaker 2: little sidebar. Did you know that Amazon was losing money
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  Speaker 2: for years and years and years purposely? He simply wanted
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  Speaker 2: market share. He wanted as many people as possible, and
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  Speaker 2: it really didn't matter how much money he lost until
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  Speaker 2: he decided to make money.
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  Speaker 1: Then all he did was turn on the spigot. That
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  Speaker 1: was it.
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  Speaker 2: Turned on the spigot. And Amazon, of course, is the
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  Speaker 2: world's largest internet retailer. So we know how this works.
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  Speaker 2: The wave of the future, and this is not just Amazon.
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  Speaker 1: We all know that.
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  Speaker 2: It's same day, same hour delivery. Do you know, and Neil,
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  Speaker 2: we've talked about this. You can actually order something on
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  Speaker 2: Amazon and it's delivered in two hours.
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  Speaker 1: Oh, yeah.
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  Speaker 2: Which is extraordinary. Now, that's what we want. Now, is
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  Speaker 2: that easy to do?
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  Speaker 1: Not particularly.
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  Speaker 2: Why is it not easy to do? Because you have
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  Speaker 2: to have some place that the product comes from. Walmart
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  Speaker 2: is way ahead of the game when it comes to delivery,
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  Speaker 2: same-day delivery. You want to know why? Because Walmart has
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  Speaker 2: a store on every corner is what they do. They
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  Speaker 2: have 10,000 stores and every one of them is a
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  Speaker 2: fulfillment center that the product is taken out of and
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  Speaker 2: delivered to your house. So everything's, you can't find a
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  Speaker 2: store that isn't within 10 miles. Now we talk about Amazon.
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  Speaker 1: We pay a service. No, of course you do. Yeah.
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  Speaker 1: I'm not arguing that.
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  Speaker 2: I'm just saying that they are way ahead of the
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  Speaker 2: game when it comes to self, when it comes to
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  Speaker 2: same day service. What Amazon is doing is changing everything
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  Speaker 2: on its ear. It is now changing the way same-day
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  Speaker 2: service is going to be, and they're spending billions. And
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  Speaker 2: that is to create fulfillment centers all over the country,
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  Speaker 2: massive fulfillment centers that are within 10 miles of your house.
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  Speaker 2: Right now you go out to the Inland Empire and
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  Speaker 2: that's where the 5 billion square foot fulfillment center warehouses are.
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  Speaker 1: Well, this one is going to be down the street.
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  Speaker 1: This is what Walmart does.
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  Speaker 2: Walmart creates these centers, the stores themselves and fulfills and
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  Speaker 2: their whole section. So Amazon's going to follow that and
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  Speaker 2: effectively build Walmart stores, except they won't be retail. All
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  Speaker 2: they'll be doing is fulfilling. Also, Amazon is moving way
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  Speaker 2: ahead of the game when it comes to drones. Wait
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  Speaker 2: till you see that kind of delivery. Things are changing,
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  Speaker 2: boys and girls, big time. And we're watching it happen.
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  Speaker 2: One of the things about major changes in society is
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  Speaker 2: we are watching it all happen in front of us.
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  Speaker 2: And it is going to be extraordinary. And we're going
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  Speaker 2: to be able to tell our kids, hey, it used
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  Speaker 2: to be you think your water is dirty now. Let
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  Speaker 2: me tell you what it was like when I was
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  Speaker 2: a kid. Okay, we're done with that. Oh, here's something
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  Speaker 2: that might make you feel better. You know why it's
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  Speaker 2: good to be an airline pilot?
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  Speaker 1: Any idea?
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  Speaker 2: Is it because it's fun to fly? Everybody says it's
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  Speaker 2: because of the money. Now, I mean, is it that
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  Speaker 2: much money to be an airline pilot? Well, how about.
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  Speaker 1: $ 100, 000 a month? A month. How is that possible?
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  Speaker 2: Well, depends on how low you are on, or how
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  Speaker 2: high you are on the scale and seniority level. And
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  Speaker 2: you want to get to the lowest figure. Obviously, number
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  Speaker 2: one is the best and number 856 out of 857
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  Speaker 2: is not so good. So what happens with airline pilots?
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  Speaker 2: is that the longer they're around, the better they are,
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  Speaker 2: the lower their figure. And then they can choose what
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  Speaker 2: airplane they want to fly. And if you fly a jumbo,
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  Speaker 2: it's big. And the pilot gets more money for that.
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  Speaker 2: Longevity at the company, more money for that. Choosing the
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  Speaker 2: right flights, international flights, et cetera, you get more money
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  Speaker 2: for that. Put it all together. And then doing fill-ins.
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  Speaker 2: like I used to do, like Neil does when I'm gone,
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  Speaker 2: that pays a nice big premium.
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  Speaker 1: I'm not here, though.
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  Speaker 2: And so you put all that together and pilots can
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  Speaker 2: make $ 100, 000 a month sometimes. Now, they have the same
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  Speaker 2: problem that we do or the industry does. Right now,
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  Speaker 2: an average of 4,300 airline pilots will reach the mandatory
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  Speaker 2: retirement age of 65 every year.
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  Speaker 1: Through 2042. And a.
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  Speaker 2: Lot of them are millionaires, which is kind of interesting.
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  Speaker 2: And pilots, they actually face very unique career risks. For example,
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  Speaker 2: the company goes bankrupt. Not just a few companies have
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  Speaker 2: gone bankrupt. So you have a company that's gone bankrupt,
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  Speaker 2: their retirement plan goes south. And so the pilot now
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  Speaker 2: gets hired by another airline. And guess where that pilot goes?
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  Speaker 2: Usually in the right-hand seat, co-pilot. And now where that
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  Speaker 2: pilot used to be, let's say, number 20 on the
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  Speaker 2: seniority scale, now is number 856 because a new.
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  Speaker 1: Airline, it starts all over again. That ain't good.
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  Speaker 2: The other thing is retirement money. And this is something
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  Speaker 2: where it connects with us. Keep in mind that retirement money,
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  Speaker 2: when you say we've lowered, you're not going to pay
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  Speaker 2: as much taxes. you're not going to pay as much
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  Speaker 2: taxes based on the fact that you're not bringing in
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  Speaker 2: enough money. If you do what I consider wealthy, my
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  Speaker 2: definition of wealthy, and I've shared this before, my definition
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  Speaker 2: of rich is you quit working and that moment your
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  Speaker 2: lifestyle stays the same. You don't give up any of
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  Speaker 2: your lifestyle once you quit working. That to me is rich.
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  Speaker 2: And it doesn't matter whether it's $ 40, 000 a year or
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  Speaker 2: $ 400, 000 a year, whatever your lifestyle is. Now, keep in mind,
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  Speaker 2: if you make a lot of money, you pay taxes
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  Speaker 2: on a lot of money. And that's exactly the problem here.
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  Speaker 2: We don't think about that very often because all we
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  Speaker 2: hear is you're going to another tax bracket and you
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  Speaker 2: are therefore not going to pay that much in taxes.
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  Speaker 1: Hey, get that out of your head.
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  Speaker 2: I suggest that you push hard for maintaining your lifestyle.
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  Speaker 2: Get as much as you can your retirement. Now, there
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  Speaker 2: are certain things that you can do, and now I'm
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  Speaker 2: going to get into the weeds here. There are retirement
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  Speaker 2: plans that you don't pay taxes, but you put the
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  Speaker 2: money in before these or after tax dollars. But it's
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  Speaker 2: a question of just looking at your retirement. I know, Neil,
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  Speaker 2: you pay attention. to your retirement big time, don't you? Yeah.
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  Speaker 1: Yeah.
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  Speaker 4: I was a little late to the game, made some
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  Speaker 4: mistakes in life. But yeah, after marriage, we've gotten things very,
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  Speaker 4: very tight.
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  Speaker 2: Yeah, me too. Kono, do you even know what a
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  Speaker 2: retirement fund is? Because I know you work here at iHeart.
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  Speaker 3: Yeah.
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  Speaker 1: I like stocks though. So I have a Roth as
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  Speaker 1: my retirement.
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  Speaker 3: Ooh.
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  Speaker 1: Yeah. Wait till.
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  Speaker 3: Yeah.
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  Speaker 2: Talk to me in a couple of weeks about that
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  Speaker 2: and see how much money is in there. Okay.
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  Speaker 1: But it's not a couple of weeks. It's a broadened horizon. Okay. Well,
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  Speaker 1: good for you.
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  Speaker 3: All right.
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  Speaker 1: All right.
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  Speaker 4: Fair enough.
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  Speaker 1: Fair enough. And most of it is in stocks.
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  Speaker 2: Yes.
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  Speaker 1: Okay.
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  Speaker 3: Yeah.
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  Speaker 1: That's my rare capital commercial. Thank you. You've just done
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  Speaker 1: that one for me. Um, Amy, do you pay attention
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  Speaker 1: to your retirement? Yes, but I think I need to
• 10:51
  Speaker 1: talk to Kono. Yeah, you probably do. I talk to
• 10:55
  Speaker 1: Kono all the time. He's got good insights.
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  Speaker 3: Yeah, I'm not good at it.
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  Speaker 4: Okay.
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  Speaker 2: Well, that's why you look at financial people who are
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  Speaker 2: good at it and they're around and you can do
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  Speaker 2: very well with them. I'm a big fan of those
• 11:06
  Speaker 2: people that are good. You're good at what you do.
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  Speaker 2: The financial people are good at what they do. Will,
• 11:12
  Speaker 2: are you around there?
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  Speaker 1: I don't see Will. He's probably out and running down
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  Speaker 1: the hall. And finally, Ann, retirement. Are you a big guy?
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  Speaker 2: And I didn't until my mid-30s, I didn't pay attention
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  Speaker 2: to it.
• 11:25
  Speaker 1: And then there's another truism.
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  Speaker 2: If, and I don't know how many 20-year-olds listen to us,
• 11:31
  Speaker 2: but if, or at least you can tell this to
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  Speaker 2: your kids, if you start thinking about it and putting
• 11:37
  Speaker 2: it in your mid-20s, start a retirement plan, you're probably
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  Speaker 2: going to retire a multimillionaire. Will, do you have, I'll
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  Speaker 2: tell you one thing, you sure don't spend your retirement
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  Speaker 2: money on shirts. Do you have a retirement plan?
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  Speaker 1: Yeah, I plan to retire. I don't know. I don't have.
• 11:54
  Speaker 1: That helps enormously. I'm saving some money. See, that helps.
• 11:58
  Speaker 1: Will plans to retire. That's a good way to end
• 12:01
  Speaker 1: this segment. Okay.
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  Speaker 2: I just want to share with you. I don't want
• 12:06
  Speaker 2: you to be broke. Or actually, I do, because that's
• 12:09
  Speaker 2: hugely entertaining when you have no money.
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  Speaker 1: Now, Japan. Do you know that Japan has over 100,000
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  Speaker 1: people that are aged 100 or more? I mean, 100,000.
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  Speaker 1: Japan is now home, and this is the figure that
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  Speaker 1: just came in, 107,677 centenarians. The highest number in the
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  Speaker 1: world by a long shot.
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  Speaker 2: 88% of them are women. The oldest woman is 114
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  Speaker 2: years old. The oldest man, 112-year-old. Health Minister Kenichiro Ueno
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  Speaker 2: said he was delighted that so many people are living long, healthy,
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  Speaker 2: and active lives. In reality, he is not delighted because
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  Speaker 2: he's warning of the challenges that come that Japan faces
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  Speaker 2: in maintaining, how about this, just a sustainable social security system.
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  Speaker 2: Their social security system could fall apart. Now, the experts are,
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  Speaker 2: we sort of know why. The long lives of Japanese
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  Speaker 2: boil down to several factors, a healthy diet, an active lifestyle.
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  Speaker 2: The diet is predominantly fish, vegetables, rice, less saturated fat
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  Speaker 2: than we eat in the Western diets. Also, the Japanese
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  Speaker 2: regularly walk. They use public transport, cycle, stretch. They don't
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  Speaker 2: get into many car accidents because they drive so slowly.
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  Speaker 2: And so what ends up happening is that companies in
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  Speaker 2: Japan are also developing products like crazy for the older
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  Speaker 2: population because everybody's getting old. And a problem that we
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  Speaker 2: have is multiplied in Japan.
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  Speaker 1: And that is.
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  Speaker 2: The number of people that are being born in the country,
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  Speaker 2: and you need young people in any country because young
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  Speaker 2: people provide the money, pay the taxes to support old people.
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  Speaker 2: Old people just take, not that they shouldn't because they
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  Speaker 2: worked a lifetime, but old people cost the economy money.
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  Speaker 1: And so young people create that money. They work, they
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  Speaker 1: pay taxes.
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  Speaker 2: Well, as fewer young people are born and more old
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  Speaker 2: people are around, that equation just has flipped. And it
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  Speaker 2: does not bode well. And Japanese people are living longer
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  Speaker 2: and producing fewer people. The actual population is decreasing, and
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  Speaker 2: I mean drastically, more so than any place in the world.
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  Speaker 2: But this one, I kind of, when I looked at this,
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  Speaker 2: I said, come.
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  Speaker 1: On, really? Japan began its centenarian survey in 1963.
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  Speaker 2: And maybe this is because the survey itself was new
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  Speaker 2: and flawed. Anyway, in 1963, they figured there were 153
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  Speaker 2: people 100 years old or over. That's all that they
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  Speaker 2: figured there was. In 1981, it was 1,000. In 1998,
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  Speaker 2: it was 10,000 that hit 100 years of age. This year,
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  Speaker 2: it's over 100,000 people that are that old. And the
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  Speaker 2: question then is, and we've talked about getting old, we
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  Speaker 2: don't have a super longevity lifestyle here.
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  Speaker 1: We just don't.
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  Speaker 2: We don't exercise enough. We eat the wrong foods. And
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  Speaker 2: we don't have the safety net system that other cultures have.
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  Speaker 2: I mean, Social Security in Japan is not very good,
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  Speaker 2: but it doesn't have to be because the young, the
• 15:54
  Speaker 2: families take care of their old people.
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  Speaker 1: They live at home.
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  Speaker 2: They're cared for by intergenerationally, which we don't do. We're
• 16:05
  Speaker 2: 18 years old out the door. Japan thought of an
• 16:08
  Speaker 2: 18 year old leaving home was crazy. My mother, I
• 16:12
  Speaker 2: remember talking to my mom and she stayed. She was
• 16:15
  Speaker 2: at the house until the day she was married. She
• 16:17
  Speaker 2: lived at home. I go, isn't that unusual? Everybody does that.
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  Speaker 2: That's simply the way that culture in Brazil worked is
• 16:24
  Speaker 2: you stay home. It's the young people take care of
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  Speaker 2: the elderly people. So we don't have that safety net.
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  Speaker 2: We don't have the lifestyle. And so we're not going
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  Speaker 2: to live all that long. And even we're in trouble
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  Speaker 2: when it comes to not replacing ourselves. And that's going
• 16:43
  Speaker 2: on in the industrialized world, the first world countries that, well,
• 16:48
  Speaker 2: have a better lifestyle. Do they have a bunch of
• 16:51
  Speaker 2: kids in Africa, in parts of Southeast Asia?
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  Speaker 1: Yeah.
• 16:55
  Speaker 2: Yeah. But, you know, they don't have to worry about
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  Speaker 2: being old and retired because they're dead long before that.
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  Speaker 4: Yeah, but do you feel like you're slowing down at all?
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  Speaker 2: No.
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  Speaker 1: I mean, I bust your chops all the time, but
• 17:08
  Speaker 1: you really don't.
• 17:09
  Speaker 2: Well, it depends on who you are and the kind
• 17:11
  Speaker 2: of job you had. My dad pulled wire.
• 17:13
  Speaker 1: He was an electrician. Yeah.
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  Speaker 2: And when he hit his early 60s, I mean, he
• 17:18
  Speaker 2: was just tired. He was done.
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  Speaker 4: But you think you've got that European stock that you're
• 17:24
  Speaker 4: going to go into your late 90s like your mom did?
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  Speaker 1: Uh, no, no, I don't.
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  Speaker 2: Yeah, because I took care of my mom, unfortunately, and
• 17:36
  Speaker 2: my kids are going to let me rot. I've said
• 17:38
  Speaker 2: many times I'm going to be on my deathbed and
• 17:42
  Speaker 2: there will be my kids surrounding me. And you'll have,
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  Speaker 2: you know, when my death notices, he died at home
• 17:50
  Speaker 2: doing what he loved best.
• 17:52
  Speaker 1: You know what?
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  Speaker 2: I don't understand that because aren't people doing what they
• 17:55
  Speaker 2: love best is trying to stay alive.
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  Speaker 4: That's the best part. Hey, here's my promise to you.
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  Speaker 4: I'm the only one in your life that doesn't have
• 18:04
  Speaker 4: a direct, no monetary tie to you.
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  Speaker 1: We don't own a business together. I will take care
• 18:12
  Speaker 1: of you. Oh, of course you will. Thank you.
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  Speaker 4: We'll die old together and I'll take care of you.
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  Speaker 3: Yeah.
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  Speaker 2: In the meantime, if anybody videos my death with my
• 18:24
  Speaker 2: kids surrounding me, you'll see them tapping on their wrist
• 18:27
  Speaker 2: watches and going, come on, dad.
• 18:29
  Speaker 1: Let's, uh, Hey, let's, let's do that. Yeah. We got
• 18:31
  Speaker 1: things to do.
• 18:32
  Speaker 2: Let's speed this up. And that's assuming I'm going to
• 18:34
  Speaker 2: leave them some money. If I don't, I'm by myself.
• 18:39
  Speaker 1: I'm done. Okay, I'm done, at least with this topic.
• 18:46
  Speaker 1: I have a question.
• 18:47
  Speaker 2: How much do you think a college athlete is worth,
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  Speaker 2: a football player? If you had to, let's say you
• 18:54
  Speaker 2: have a Heisman winner, what do you think a Heisman
• 18:59
  Speaker 2: winner in school, mind you, is worth?
• 19:04
  Speaker 1: Well, up to a couple of years ago, nothing. Nothing.
• 19:08
  Speaker 2: Certainly got obviously a scholarship and got free room and board,
• 19:13
  Speaker 2: but that was basically it.
• 19:14
  Speaker 1: In the meantime, college coaches were getting $ 8 million a year.
• 19:18
  Speaker 2: And so what the NCAA did was change its rules
• 19:22
  Speaker 2: that these college students who are also ballplayers can now
• 19:29
  Speaker 2: get millions of dollars per year each. And The idea
• 19:36
  Speaker 2: of a 22-year-old or a 19-year-old earning $ 3, $ 5 million
• 19:41
  Speaker 2: a year is, gosh, I wish it were me kind
• 19:44
  Speaker 2: of thing. But you have these major football programs, and
• 19:48
  Speaker 2: it's always football for the most part. sometimes basketball, but football,
• 19:52
  Speaker 2: that are $ 50 million programs a year. Ohio State, for example,
• 19:56
  Speaker 2: that's a $ 50 million program just for football. And why
• 20:01
  Speaker 2: do people go? Well, sometimes it's because of the ballplayers.
• 20:05
  Speaker 1: Who generates.
• 20:06
  Speaker 2: Remember Kareem Abdul-Jabbar? My ex went to school with him.
• 20:12
  Speaker 2: They were in the same class together. And they had
• 20:15
  Speaker 2: an English class together. And he was just another student.
• 20:18
  Speaker 2: It was Lew Alcindor at that time. I mean, he
• 20:20
  Speaker 2: was known across the country. Ooh, look at him. Look
• 20:23
  Speaker 2: at him as a basketball player. But he was, you know,
• 20:25
  Speaker 2: he was treated like everybody else who was on a scholarship.
• 20:27
  Speaker 2: Matter of fact, she talks about going into an elevator
• 20:31
  Speaker 2: once and she turned her back and then she was
• 20:33
  Speaker 2: looking at someone's waist. And that was Kareem Abdul-Jabbar. Anyway,
• 20:39
  Speaker 2: he didn't make his money until after, of course, he
• 20:41
  Speaker 2: graduated school. So things are changing. I'll tell you what
• 20:44
  Speaker 2: else people are doing. And this is sort of new.
• 20:47
  Speaker 2: You have these ballplayers who are buying homes right near
• 20:53
  Speaker 2: the campus. Multi-million dollar homes. And here's the other difference.
• 20:59
  Speaker 2: When you have these kids, if you will, these young men,
• 21:05
  Speaker 2: going and getting millions of dollars and buying a home.
• 21:08
  Speaker 2: This is something new, which has not happened before, is
• 21:10
  Speaker 2: they're actually hiring financial managers who are telling them, here
• 21:16
  Speaker 2: is what you do with your money, and they're listening.
• 21:20
  Speaker 2: How many ballplayers do you think, an average lifespan for
• 21:24
  Speaker 2: a football player is five, eight years, have gone through
• 21:26
  Speaker 2: all their money and they're done? Not so much anymore,
• 21:31
  Speaker 2: which is kind of a good idea. So anyway, I'm
• 21:35
  Speaker 2: in favor of if they're producing and they're generating, they
• 21:39
  Speaker 2: should get paid. I don't have a problem with that
• 21:41
  Speaker 2: at all. And the NCAA took a long time to
• 21:45
  Speaker 2: get there. I still don't think they can endorse. I
• 21:48
  Speaker 2: don't think they can hold up that little box of
• 21:51
  Speaker 2: Preparation H and say.
• 21:52
  Speaker 1: Hey, look at me. Let me tell you where I
• 21:54
  Speaker 1: put these.
• 21:57
  Speaker 4: Why don't they put it into a trust or something
• 21:59
  Speaker 4: so that it helps longevity?
• 22:02
  Speaker 1: Yeah, it depends on what the recipient wants. It depends.
• 22:06
  Speaker 2: You can put money in a trust or not put
• 22:07
  Speaker 2: money in a trust. You're still going to pay taxes
• 22:10
  Speaker 2: on it. Okay, we are completely done.
• 22:13
  Speaker 1: You've been listening to The Bill Handel Show. Catch my
• 22:16
  Speaker 1: show Monday through Friday, 6 a.m. to 9 a.m. and
• 22:19
  Speaker 1: anytime on demand on the iHeartRadio app.