. hi, everyone. welcome to "on the money." i'm biccy quick. small businesses, big dreams. how boomers are writing a new chapter, creating companies, building swrobs and what the new tax plan could mean. saving for your retirement, our conversation with the legendary jack boggle. finding the best credit cards, what should you look for and how to find the right fit. plus this remarkable story. >> iceland is now for this extreme environment. less unknown, his contributions to medical research. >> our meg tirrell with a cool story about science and genetics. "on the money" starts right now. >> announcer: this is "on the money." your money, your life, your future. now becky quick rchl. >> next week is small business week. it is a big deal for the economy. the small business association says two out of every

but just who is starting this new start ups? kate rogers has this week's cover story. >> reporter: brian kravitz has seen his career come full circle. he began fixing typewriters in the 1970s and continued until computers came on the scene. but much to his delight and surprise, typewriters are back in vogue and he is in business for himself at age 67. >> i just feel really good. i get up every day. i don't want to sit around. what can i do? go to the golf course? no, not me. i want to do things. >> reporter: he launched his business in 2015, fixing and selling machines that date back to the 1920s. kravitz worked for years in marketing and direct mail and said his experience in the workforce has helped him with his latest venture. >> i'm much more aware because i've had so many more experiences in being in business and doing things with people. >> reporter: while millennial

zuckerberg might be grabbing headlines, found boomers are twice as likely to start their own businesses. experts say the rise in boomer businesses, is part the desire to remain active. >> most older people approaching the traditional retirement age are actually looking to stay active beyond 65. they miss the social aspect of work. they miss the purpose of work, and work is an important emotional contribution to people's sense of identity. i don't think that that disappears just because you hit a particular kron log will cal age. >> reporter: 63-year-old darryl jennings launched his business, american music furniture company, in 2013 and today has seven employees and two co-owners, making humid phiing cabinets for guitars. while he has seen success selling

brown band, there are challenges in being an older entrepreneur. >> the biggest challenge is the fact that you're not going to make money for quite a while. if you start a business, it always takes more money than you think it will. it takes more time than you think it will. >> reporter: he has only on one regret. >> i wish i had done it sooner. >> reporter: for "on the money," i'm kate rogers. >> so are enough people taking the risk to launch and build their own small businesses? victor hwang, thank for being here today. >> thank you. good to be here. >> the package pointed out small business is biggest job creator but more small businesses were started in the 1980s that today. why is that? >> it is an interesting fact we are actually half the rate of startups than we were a generation ago. this is one of the big things we've been looking at at the kauffman foundation. we have identified a number of factors but it is hard to pin one thing. i think you can look

of things, including shifts in the map and the nature of technology. we issued a report that gets at some of these things called the state of entrepreneurship report. >> one of the issues is the general asian fwap kate was talking about. why are baby boomers starting more businesses than some of the new younger people are today, the millennials? >> it is hard to pin it down exactly but we think a few factors at work. one is potentially college debt. the abt to get a college degree costs so much and students are ladened with those, and also cull you turl forces at work. it seems entrepreneurship is starting to fall and we're seeing the decline of dynamism. >> some people have hurd -- will blame it back on regulation. they say it is too tricky to try to start a startup today. did you find that in your research? >> when you talk to entrepreneurs, and we have done a lot of polling around this, you find a host of factors.

you tend to find taxes and regulations a little lower on the list than you think. it is one of many factors at work. what tends to happen is you find some of the issues such as cultural forces, fear, psychological attitudes, access to capital, access to social networks and access to the right people and resources tend to be higher up there. >> let's talk about taxes because it is part of president trump's new proposal that's put out there. he is talking about changing the s corporation tax rate, s corporations are small businesses. he wants to change that rate to 15% from the 39.6% it stands at right now. do you think that that will help more people agree to go out and be a new small business in i would like to reclassify myself as a small business if that's the case. >> everything helps. it is hard to pin -- again, it is hard to pin it to one thing, but taxes are one of those things that are on the list, but you can actually look at a bunch of other things, too. this is actually something the kauffman foundation is looking at. you can point to a lot of the other types of barriers that get in

we just launched a new campaign called "zero barriers" which seeks to eliminate the barriers in the way of entrepreneurs so they can turn their ideas into businesses. >> silicon valley and new york have been hotbeds for startups for a long time. is that changing? are you finding other places in the country where new businesses are starting to he emerge as well? >> historically you see a lot of startup in big cities, in new york, california and boston. 80% of venture capital has gone to those places, but we are seeing a shift where mid size cities are coming into their own. you are seeing quite a bit of startup growth like here in kansas city, where the places that are lagging are rural areas. rural areas have fallen behind, and that's a cause of concern. >> victor, thank you for your time today. >> thank you, appreciate it. >> up next, we're "on the money." the stock market has risen sharp by but can returns continue?

hazardous time. later, cash back, low interest rates, rewards points. with so many choices out there, how do you pick the right credit card for you? we will talk about that. look at how the stock market ended the week. ♪

♪ now here's a look at what is making news as we head into a new week "on the money." it was a record-setting week for stocks. on tuesday for the first time ever the nasdaq closed above 6,000. the rally powered by hopes of tax reform. the index opened at a new all time high on friday. the s&p 500 and the dao with strong weeks as well, though stocks closed lower on friday. the gross look for

domestic product was out and slightly beloi. came in at 0.7%. consumer spending was weak. the gdp the broadest measure of size and scope of the u.s. economy. most economists expect stronger growth in second quarter. new home sales rose for the third straight month in march, climbing 5.8% last month. there was strong demand in spite of rising prices and limited inventory. sales hit best level since july. with stock market records and president trump's tax plan on the table, should you make changes to retirement nest egg? jack bogle is founding of the vanguard group. great to see you. thank you for joining us today. >> my pleasure. good to be with you. >> good to be with you. the stock market hit new records this week. it has a lot of people thinking about it. stocks have been on a run since the election. the question is all of the new highs, all of the activity, should it change anything you are doing with retirement savings at this point? >> first thing they should do is plan for the future on the assumption the returns will be much lower than in the past. >> returns in the past

long term historic periods. what kind of returns are you expecting we're going to see for the next several decades. >> in this long bull market, it averaged about 12% in nominal terms and probably a 4% average inflation rate, a little less than that. that would be a 8% real return. today i'm looking for something like a 4% nominal return in the market and maybe 1 1/2 to 2% inflation. so that gives you a very, very small, call it that 2 1/2% real return on your savings. it is beige, big difference. >> it is a huge difference. is that an argument for not investing? >> there is never an argument for not investing. just think of the reality. if you never invest anything, i can tell you exactly what your retirement plan will be worth when you retire, zero. >> right. >> so it is a question of a decent asset allocation, which in this day and age, this

puzzle through. i think in jen the best rule for an investor is to stay the course. i have never been if favor, by the way, of making a whole sale change like getting out of the stock market or getting out of the bond market for that matter. but to do something on the edges. i look at it as, you know, kind of a norm will a position, let's call it 50/50 for all investors of all types, and if you're maybe younger 80/20, 80 in stocks and 20 in bonds. when you're older depending on your circumstances, maybe something like 40%, 30% in stocks and 70% in bonds. i happen to be right in the middle of that, and i'm 50/50. becky, i'm a human guy. i have my own concerns and worries, and i know i don't have all of the answers. so i tell people, i'm 50/50 stocks and bonds, and half the time i wonder why i have so much in the stocks. the other half of the time i wonder why i have so little.

but these are hazardous times. these are not cheap times in the market. but one never knows what is coming next, and you never know what the day is going to hold. so -- >> but your message is always invest, make sure you're saving something and that you are probably going to need to save more than you would have in the past because the returns will not be as great as we personsed? >> that is absolutely my message, and be it it in nor the long term. >> don't get scared off by lows, don't get lured in by highs, just keep doing this gradually over time? >> yeah, and then i have another rule. that is when you get your retirement plan statement every month, don't open it. >> stop looking. >> don't peak. >> don't get up and down on the highs and lows of the market. >> when you retire, open the statement and, believe me, if you have been putting money in for 40 or 50 years, you need a cardiologist standing with you when you open the statement because it will be so much money. >> you will be

>> you will be taken aback or affront, as the kay case may be. >> you and warren buffett, this has been something that over the last seven years we've seen this huge rush of money. vanguard has now over four trillion dollars, up from just a trillion dollars seven years go a. as this message gets out there, is it still the best way to do things? >> well, it is the best way to do it, if you just understand this one thing, or you need to understand this one thing. the indexing is holding the market essentially. the s&p is 85% of the market so that's about the same thing as holding 100% of the market. so the market return is the market return, and that is what all investors share whether they're in index funds or not. it is pretty simple. i don't think this is a -- a false signal or a bad in indexing. it is a long-term trend that's going to permeate. >> investors are getting the message and wising up. >> getting the message, and

message consists of owning the market, diversifying to the nth degree, make sure you do it at low cost, say four bases points a year, four-100ths of 1%. don't trade, do look at etfs that trade, what do they call it, smart beta or funny things out there. it is the market return that will be your best investment for a lifetime. >> and time is your friend, that's probably the biggest message. >> time is your friend and impulse is your enemy. >> jack, always wonderful to talk to you. you make it sound very easy. we pr appreciate your time and hope to see you soon. >> great to be with you. >> thank you. "on the money," solving the credit card conundrum. what you need to can consider before signing up for another one. later, a genetic gold mine. how the people of

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♪ not all credit cards are created equal. so how do you choose the right one? you have to be careful or you could end up wasting money and hurting your credit score. joining us right now is reed fraasa, a certified financial planner. he has some tips on picking the right credit card that's right just for you. so, reed, what's the most important thing to consider? >> first is to sit down and think why do i want a credit card. think about your lifestyle spending. we always tell people and start with understanding your cash flow.

expenses, advertise creationary expenses, which one of those expenses that would fit into your normal monthly cash flow would be appropriate to use for a credit card. >> although it is a pretty good idea to have a credit card to build a credit score even if you are used to paying everything in cash. >> absolutely. as long as it is within your monthly cash flow, a credit card is a great way to help establish credit. for instance, many spouses, people never thought about having a credit card in the name of the pous. that he very important. >> so you have your own record to make sure you can stand on your own two feet. >> absolutely. >> there are so many rewards programs, everything from miles to offering you cash back. what's the best way to choose from those programs? >> there's actually an annual survey, total systems does a survey every year, and rewards is the primary determinate of why people pick a credit card. there are cash back rewards, point system. so you really want to think about, again, how are you spending your money.

particular merchant you like to shop with? cash back rewards, sometimes you want to look how you can use those. >> i want to say for me, i go to a cash back one because it is great if you have points i can use at a merchant but it requires more work for me to try to make sure i use the points. >> absolutely. >> for cash back, i can call up every once and a while and have the transfer sent back to my account. in terms of the low introductory offer rate, that is usually a great deal, a much lower rate than your other credit cards. should you take all of your other credit card balances and transfer them on to the lower introductory offer? >> you just said something which is take the other credit card balances, so -- >> putting myself in a dangerous place already. >> yes. the low introductory offers, credit cards are brilliant at marketing and they understand human behavior really well. so low introductory offers are usually -- there's a lot of strings attached. if you miss a payment -- and what a lot of people do, they play the credit card

know, as soon as you miss one of the payments, the term stops and, guess what, they have the highest rates consequence she n those. >> so buyer be wear. >> yes. >> thank you for being here. up next on "on the money," a look at the week ahead and meg tirrell's fantastic voyage. >> iceland's unique genetic makeup made important contributions to medical how that work is moving from iceland to the world. ♪

♪ here are the stories coming up that may impact your money this week. on monday the institute of supply management releases monthly manufacturing survey which gives a read on the strength of the manufacturing sector. on tuesday auto sales for april are released. wednesday is second and final day of the federal reserve open market committee meeting. a rate hike is not expected. thursday, may the force be with you on national "star wars" day. that's a good one. friday, the government's monthly jobs report were tell us how many jobs were created or lost in april. then on friday you better plan for a fiesta for cinco de mayo. meg tirrell went all

reykjavik for details. >> reporter: iceland is a land of streets, from waterfalls to pockets of geothermal activity. what it is less known for is that it is a world hub of genetic research. she founded to mine the genetic dna here. >> this population happens to be a population where there's a founder fact, which means there's relatively few ancestors which account for a large percentage of the population. >> reporter: because they themselves in icelanders rather than diverse populations. it is not just iceland'd genetics thatting ma it a gold mine for its work. the country has 800 years of genealogy records. director of the gnat will ral archives of iceland with a treasure trophy of records going back centuries. >> a memory o

without that we wouldn't know who we are. >> reporter: decode couples that with a huge amount of genetic information to make discoveries. inside this sub zero freezer, about 15 degrees below zero to be exact, are stored half a million blood samples from half the population of iceland, about 160,000 people. it represents the past, present and future of this research. other countries and companies are trying to emulate the work in iceland including the nachlt. the all of us project launched during the obama administration aims to gather genetic data from at least a million americans and combine it with electronic medical records, information from surveys and wearable sensors. >> we are anxious to move as quickly as possible away from a one size fits all approach to how to manage chronic illness or keep people healthy into individualized. >> are using these

insights in drug development. >> one of the things we find exciting about using human genetics and the clues that provides us is the idea we can move quickly and have higher conviction around the new targets that we're exploring. >> reporter: so clues in genetics can provide leads for better treatment. am general and decode announced a swren eting mutation discovered in icelanders that appears to protect against heart attack. the next step is to create a job that mimics that effect. >> that is really cool. do you have to have a unique population, a unique genetic population to come up with these genetic discoveries? is it that? is the record keeping? what's so -- >> reporter: it is the combination of things that makes iceland so fantastic for this. because everybody is so closely related there, these variations in their genetics pop up more easily, but other countries including the united states which have much more diverse set of genes, they're doing that work, too. they're hoping to find things about people by using this information and pairing it with health records to be able to develop better medicines and preventive treatments, too. >> it must be easier when you

and me and all of the people now taking among their -- on their own to make sure that they're finding out what their geens are. must help. >> yes, that kind of awareness and that kind of data collection. the government i think is hoping these folks, whether it is 23 and me or others, will share the data with them to help with the collection. >> meeting, thank you. >> reporter: thank you. >> that's the show for today. i'm becky quick. thank you for joining us. next week, college loans 101. time to get smart on finding funds to pay that tuition bill. each week keep it right here, we're "on the money." have a great one and we'll see you next weekend. ♪

good morning, america. breaking overnight, deadly tornado. >> there's a tornado crossing the road right now. >> at least five people killed. dozens injured as twisters tear across texas. one at least a mile wide. >> i'm just devastated. >> dealership destroyed. cars tossed like toys. homes demolished. >> just took a direct hit. >> the towns picking up the pieces this morning. the same system bringing killer floods. the raging waters in the heartland. homes and cars underwater. two children swept away. this man just barely managing to escape. the states of emergency declared with more dangerous weather on the way right now. marking his milestone. president trump's campaign-style rally in pennsylvania, thanking his supporters.