hi, everyone welcome to "on the money." i'm becky quick. america's retirement crisis. how one state is brewing up a new plan to fix it and why it could be the model for the rest of the country could your next car or can of soda cost you more? tariffs are coming how badly will they hit your wallet relax! really mindfulness at work can pay off for both businesses and for employees. and teaching inner city kids the ins and outs of investing in real estate with some real star power, j. lo, a-rod, and a field of dreams that could turn into a reality. "on the money" starts right now. >> announcer: this is "on the

money. your money, your life, your future now, becky quick we begin with your retirement as pensions have largely disappeared and with small businesses unable to afford retirement plans for many of their employees, millionsof people are left on their own to save, but a new push by some states is making it easier that's our cover story this week and sharon epperson has more. >> the beers that we have on tap are on the top. >> reporter: when small business owner josh alison decided to go from a career in biology to beer, his focus was crafting the perfect pint giving employees a way to save for retirement may have been a goal, but not one alison was able to brew up on his own. >> you spend a lot of time, a lot of of energy working with these people, developing relationships, and they become family and you really want the best for them you want them to be able to provide for themselves later in life. >> reporter: now, thanks to a program that is the first of its kind in the country, employees at reach break brewing are given

the chance to save for their future through a state-run retirement plan called oregon saves. >> we're giving small businesses the same kind of opportunities that some of the largers businesses have -- low-cost savings for employees at no cost to the employers. >> reporter: about 55 million american workers in the private sector are not offered a 401(k) plan through their employer. most of them, 32 million, work at small businesses, which have fewer than 100 employees >> some may say, why is that a problem? study after study shows that people are 15 times more likely to be saving for retirement if they're offered access through their employer. >> reporter: oregon saves requires employees who do not offer a 401(k) to automatically deduct 5% of an employee's wages after taxes and send it to their individual retirement account or i.r.a. workers can contribute a maximum of $5,500 a year the plan is managed by the state and workers must opt out if they

don't want to participate, but so far, many being given the chance are doing it. >> we have about 5,500 people who are actively contributing to their accounts at this point there are about 20,000 who are somewhere in the process when their pay periods take place and in the end, we expect that there will be about a million people who could potentially participate. >> reporter: reach break's tap room manager, chris merrill, who's contributing 5% of his wages to the plan, says this is the first time he's saved for retirement. >> it's always something in the back of your mind, but you use your youth as an excuse and say oh, i can always do that later and you know, now it's later. >> reporter: critics say there is too much paperwork for companies that already offer 401(k) plans, yet more states are following oregon seven have enacted legislation for their own retirement plans with illinois and california expected to roll out theirs this year another 24 states have

introduced legislation to start their own retirement plans. >> we're hopeful that other states will see the success that oregon is having in designing and rolling this program out and make similar programs available in their states. >> reporter: josh allison hopes offering a retirement plan will attract the best employees, who will help ensure customers keep coming back. >> one thing that the savings plan will allow us is people will be able to view this as a long-term career, rather than just a stepping stone. >> cheers! >> programs like oregon saves are not going to solve the retirement crisis on their own with the current contribution limit of $5,500 a year, workers will still need to find other ways to save as well, but advocates and the people that we spoke to say it's at least a step in the right direction, becky. >> it sounds like a great idea is there any down side to any of this >> well, there are some critics. some in the financial industry say it may be costly to set up or more costly than expected to set up, that there could be some

difficulty with adhering to some of the government rules, whether irs rules or erisa rules and also, they want to make sure it's not too onerous on some small businesses to have the fiduciary responsibility, making sure these plans really do benefit the worker and help them. >> sharon, thank you very much. >> sure. so, are state-mandated savings plans the right approach to solving the retirement crisis joining us now is sarah gill of the aarp thank you for being here today. >> thank you for having me. >> how big is the retirement crisis why do you think states like oregon are actually taking it upon themselves to do something? >> well, it is a really big issue that the country is dealing with today recent aarp research shows that 55 million americans don't have a way to save for retirement out of their regular paycheck every day. and as you heard in the piece, that's really important, because they're 15 times more likely to save just by having access out of their regular paycheck. >> how important do you think it is for people to be able to save for their retirement through their employer how key is that? >> it's vital.

what we know today is that roughly 40 million americans don't have anything saved for retirement at all, and in fact, the average amount of money people have put away is only about $2,500 so, what we know is that one out of every two households is at risk for financially insecure retirement and yet, we can really fix that by giving people access to payroll deduction at work. >> as sharon pointed out, critics of the state-mandated plans say these may not be the best option and that it offers limited options. do you think it's better left up to the private market or do you think the states should be getting involved >> i think that's a great question my answer is that this really is a private-market solution. these programs are going to be run similarly to a college savings plan, like a 529 plan, but for retirement, so they're all run through public-private partnerships and the employer always has the right to go out and open any program of their choosing. >> what do you think about the opt-out idea versus opting in? >> opting out versus opting in is actually really important

so, we mentioned earlier that people are 15 times more likely to save if they can do that out of their regular paycheck, but beyond that, it's 20 times more likely if these plans at work use automatic enrollment. >> for the person who says, look, i can't do this, i have too many other pressures, whether that be i'm trying to pay off student loans, saving for a down payment for a house, medical bills. there are a lot of reasons people don't save. what would you say to that person >> there are a lot of reasons, and i think it's important to take into account all the pressures on your family budget. but i will say that saving early really saves money down the line because of compound interest so, anything you can put away today is better. don't get put off by thinking about it in the big-picture sense. just try to put a little bit away today. >> is there a general number people should be thinking? look, is it 5%, 10%? what's the idea in terms of a multiple of your current salary? >> yeah, so in terms of having a financially secure retirement, generally, experts say you

should anticipate saving so that you can spend 70% of your final salary or 12 times the total amount of your final salary. >> say that one more time? i'm not sure i understand that to do what >> you should expect to spend 70% of your working income in retirement every year. so when you add that up, that looks like about 12 times your final salary that number can be pretty intimidating, so we really suggest people try to etake smaller bites of that apple and save just 5% or 6% every paycheck. >> okay, great sarah, thank you for joining us today. we really appreciate it. >> sure. thank you for having me. now here's a look at what's making news as we head into a new week "on the money." toy story with a sad ending. toys "r" us is selling all of its remaining stores across the united states. they are burdened by debt and competition from online retailers. toys "r" us employees about 33,000 people. the closings will also probably have a big impact on the toy industry as well.

america's shoppers have been taking a breather lately retail sales fell 0.1% last month, well below expectations that's the third straight month retail sales have fallen. and stocks couldn't make up their minds most of the week, moving up and down in part because of the political news coming out of washington, some concerns about a potential trade war that ebbed and flowed. though the nasdaq set a record on monday, the markets were mixed later in the week. and get ready for more crowded skies. oh, boy. an industry trade group for the airline industry is expecting an all-time high of 150 million passengers to travel on u.s. airlines between march 1st and april 30th that's a 4% increase from the spring of 2017, and you thought those aisles were crowded now. up next, we're "on the money. why you could soon be spending more when you shop what tariffs may mean to your wallet and where you could feel them and later, mindfulness training, what it is, how it works, and why businesses may

want to give it a try for employees. right now, though, take a look at how the stock market ended the week

♪ it was less than two weeks ago that president trump announced that he would be raising tariffs on foreign steel and aluminum imported into this country. those tariffs are set to start late next week, and they could cost you we have a chief economist with us here today. lindsey, thanks for being here. >> thanks for having me. >> they will be increasing tariffs 125% on steel and 10% o aluminum imports but it could make consumer products more expensive as well. what concerns you?

>> a tariff is a tax for all intents and purposes, so we expect price increases on aluminum and steel specifically. but as you mentioned, we're also looking for cost increases on all products that heavily are rely on steel and aluminum as a productive input so pop canmakers, soup canmakers, beer manufacturers, we expect an increase in price somewhere around 2 to 6 cents per unit that doesn't seem like a lot on the surface, about out when we talk about this at an annual pace, that's hundreds of millions of dollars. >> it's probably not going to stop somebody from buying a six-pack of beer or soda, but where do you think it could really have an impact? >> i don't think it will stop them from buying that six-pack, but that cost does add up and it may mean they cut back on switching from chicken to beef or other switches in their grocery basket. >> is there a list of winners and losers that this creates how do you kind of line up that list of winners and losers >> well, remember, from the trump administration's

perspective, the intention of the tariffs was to provide protection for the steel industry, for the aluminum industry, and you are talking about a couple hundred thousand jobs that certainly will see increased protection here in the u.s. and maybe some additional job-creation in those sectors. but on the other hand, you're talking about increasing prices and potentially squeezing out workers from other sectors that are reliant on these inputs. and there you're talking about millions of workers. so, certainly, the potential loss offsetting the potential gain from these tariffs at this point. >> is there anything good you see in the entire situation? could it be used as a negotiating tactic to try and get some better deals with some of our trading partners? >> well, it certainly could, and we're already seeing that as we enter into the last round of nafta negotiations, but i think when you're looking for a silver lining of the tariffs, we do have to remember that there is a national security component here, and this is in part how the trump administration was selling it we do want to make sure that with we do have a minimal manufacturing base here in the u.s. to protect domestic interests, particularly during a

wartime economy. so, it is important that we do have certain protections in place. and for those of us that get on our high horse thinking that these tariffs are against the traditional american stance of free trade, we do have to remember that we have over 1,200 tariffs already in place on everything from corsets to asparagus to brooms to sneakers. >> corsets >> so this is very much in line -- exactly. >> people still wear those things >> well, with the high tariff, demand has decreased dramatically, so -- >> that's not the only reason. lindsey, quickly, is this the beginning of a trade war >> if we see a follow-through with a lot of strong rhetoric that has come out from our overseas partners, and if that translates into our allies taking steps of additional tariffs against us, which prompts the trump administration to take another round of tariffs and put those in place, this could certainly escalate into a trade war. but in and of itself, strictly targeting aluminum and steel, i don't think that's enough to spark a trade war at this point. >> lundzey, thank you for your

time great to see you. >> thank you very much for having me. up next, we are "on the money. more companies are thinking outside the box and letting you get inside your own head how the practice of mindfulness is helping businesses. and how power couple alex rodriguez and jennifer lopez are training the next generation when it comes to investing in real estate.

♪ you have probably heard the

word mindfulness you might think it's all about sitting still and meditatinmedi but more companies are actually bringing mindful techniques into the workplace. leah weiss teaches a class on leading with mindfulness at stanford university and it's the topic of her book called "how we work." leah, thank you for being here today. >> thank you for having me. >> if mindfulness isn't the sitting and meditating and thinking, what is it >> mindfulness is the intentional use of attention so we don't only have to do it when meditating. it doesn't mean we don't think we can do it any time. >> is it as easy as clicking a switch what would you do to get to a mindful state? >> one is anchoring the attention in your body, feeling thesen significances in your body, feeling your feet on the ground, the chair supporting you. a second one is movement so, keeping your attention in your body while you're moving from one place to another or taking a stretch and then the third is you can set reminders for yourself while you're working, like change your password to breathe. so every time you're logging in,

it reminds you to -- >> take a deep breath, kind of sit up. >> -- take a deep breath. >> sounds like the opposite of multitasking. >> unitasking is the name of the game. >> we know companies are starting to use this which companies and what are they doing >> mindfulness has become a $1.1 billion industry. >> wow >> and 22% of companies have mindfulness programs so, they're seeing what we know through the research, which is that it increases not only your health and well-being, but your productivity so, companies like aetna have seen that in their bottom line, have a chief mindfulness officer and are measuring the impact, and it's to the tune of $3,000 a year per employee in increased productivity >> a gallup poll recently found that two-thirds of employees are not engaged while they're at work is that part of what's driving all of this? what if the employees don't want to be engaged? >> employees don't know how to -- what they're supposed to be doing or how to keep their attention where it needs to be so, what people are finding in

their leadership development and when they're trying to create healthier company cultures -- if you create opportunities for mindfulness for the intentional use of attention, then people get more done and they also have more well-being while doing it >> you studied with the dalai lama what sort of practices did you learn? what did you take away from that and how much of that is incorporated into this >> i bring in -- i translate what i spent 100 days, six months learning in retreat, into actionable tools that people can use quickly in their busy lives today. >> and i can learn all this from the book >> you can. >> leah, thank you very much for the time today. >> thanks so much for having me. >> we appreciate it. up next "on the money," a look at the news for the week ahead. and real estate lessons from a-rod and j. lo. why the new york natives are helping teens from their old stomping grounds. >> real estate is a way out of the hood

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up to 45 days of freshness. pluggable febreze and fabric refresher. two more ways to breathe happy. ♪ here are the stories coming up that may impact your money this week. on tuesday, we'll get a read on the services sector with the philadelphia fed nonmanufacturing index and guess what, it's also the first day of spring! yay! about time on wednesday, existing home sales for february will be released, and we'll be getting an announcement on interest rates from the federal open market committee the fed is widely expected to increase rates on friday, the durable goods report for february will be released and get ready for cuteness

overload it's national puppy day. i smell puppies on set coming next week. most people who live in a city think of their building as a home, but it can also be something else, an investment. now some big-time stars are helping inner city kids learn about investing in real estate our diana olick has more on kids who are swinging for the fences. >> reporter: these kids from the bronx are not heading into a baseball game. >> thanks for coming, guys we're so excited to have you >> reporter: they're taking a step toward a brighter future, part of a program called project destined, designed to teach teens the fundamentals of finance, specifically investing in real estate >> we have them understand that you can actually make money from real estate and have a good life from real estate. >> reporter: it's the brainchild of former carlyle group executive cedric bobo, who launched it barely two years ago in detroit and brought on former yankee legend alex rodriguez, who now runs his own real estate development firm he brought it to the bronx. >> i was born right down the

street in washington heights, and i've always loved baseball and i love business. and real estate is a way out of the hood. >> reporter: the kids attended seminars, learning how to value and finance apartment buildings. >> we had to talk to a lawyer. we had to talk to a banker and we also had to talk on a broker one-bedroom apartment, four two-bedroom apartments and one three-bedroom apartment. >> reporter: then they pitched purchase offers for two buildings, "shark tank" style to a panel of experts in the yankee boardroom, including former bronx native jennifer lopez. >> to teach this to kids who maybe won't have the harvard education or have that opportunity is to me a beautiful thing, because it's not just about kind of your life, it's about owning your life it's not just about owning a property it's about learning how to manage everything about your life. >> reporter: holding the final competition at yankee stadium, one of new york's most iconic pieces of real estate, not only draws the kids in, but makes for an exciting event. but what's more important to the

founders here is not just that the kids take a swing at real estate, but that they follow through. >> we give 20% of our profits to a 501 c 3 that issues scholarships, so every quarter we're issuing you a scholarship if you continue to be engaged, and engagement is both in our classroom, but also online. >> i never knew that for a young kid like me, i would be able to invest in something so real that is actually on the market to now being presented in front of like millionaires. >> reporter: but sometimes, million-dollar dreams do come true project destined has established itself now in four cities and they're not stopping there they may actually be here in d.c. this summer plans are already in the works they're talking to people here on the ground, real estate investors from the local market. that's the most important part, to get them involved in teaching the kids becky? >> diana, i saw you in that panel, that "shark tank" style

panel. what did you think of the pitches? what were they telling you and what did you take away from it >> reporter: it was amazing! they knew all the lingo. they knew about cap rates. they knew about mortgages, mortgage rates they had learned so much in such a short time and it was really just an honor to work with them and be a part of that for a while. >> it was pretty amazing thank you for bringing that to us it's great to see you. folks, that is the show for today. i'm becky quick. thank you so much for joining us next week, tax moves that you should make now before they disappear. each week, keep it right here. we're "on the money. have a great one and we'll see you next weekend

hey, there we're live at the nasdaq market site on this expiration friday the guys getting ready behind me while they're doing that, here's what's coming up on the show >> it's got to be the shoes! >> shoes. >> shoes. >> shoes. >> announcer: actually, it's the high-level executive departures that's weighing on nike shares, and we'll tell you what it could mean for the stock when it reports earnings next week plus -- ♪ pretty much sums up what's going on with bitcoin, and that's crushed a number of bitcoin stocks, except one we'll give you the name and tell you why traders are excited. and -- ♪ tonight i'm gonna party like it's 199