A 1960s experiment by a Stanford professor found that people who delayed gratification were able to be more successful than others. On this episode of Your Retirement Elevated podcast with Scott Dougan, we’ll explain how this same theory applies to your finances as well.
Professor Walter Mischel started the test, known as the Marshmallow Experiment, by giving kids a marshmallow and telling them if they waited for him to come back 15 minutes later, they could have a second one.
So, would the kids eat the marshmallow or wait to get another one? Some kids ate it right away, others struggled and finally gave in and a few waited and were given a second.
The professor followed up with the children years later and found those who waited to receive the second marshmallow had higher SAT scores, lower levels of substance abuse, lower likelihood of obesity, better responses to stress, better social skills as reported by their parents, and generally better scores in a range of other life measures.
So, how does this relate to our clients? We work with an elite group of savers who have amassed large nest eggs. The downside to this is they spent so much time saving that it can be hard for them to spend. That pile of money can give you a sense of freedom and comfort.
Listen to the entire show and use the timestamps below to find specific segments.
[2:44] – Marshmallow study
[7:56] – Our clients
[9:20] – More about the experiment
Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.