We're human beings who evolved over millions of years of biological history.

The way that we react to risk or the risk that we respond to is immediate risk.

You know, it's seeing the yellow and the black flash of light in your peripheral vision,

you're hearing the hiss of a snake or the

roar of a lion, and you respond just like that, all right? That's the way most people perceive

risk in financial markets. It's the day that the market calls, falls three or four percent,

or when there's very bad economic news. That's not risk. Okay, that's volatility.

What real risk is, is living under a bridge or eating cat food when you're old.

That was Bill Bernstein, a financial theorist, neurologist, and author of numerous books, including the four pillars of investing, the intelligent asset allocator, and the birth of plenty.

I'm Motleyful producer Matt Greer.

Now, Motleyful contributor Rich Lumello and Motleyful analyst Buck Hartzell recently caught up with Bernstein

and talked risk, reward, and financial freedom.

Rich and I both have young adults.

Some people that are either getting ready to graduate or graduating college and got their

first job.

I just had 10 of those people over at our house this weekend.

One of the questions that they got asked

during that conversation as we sat down is how much do we need to save in order to be prepared and

reach one day financial freedom. I don't like the word retirement because I think freedom is

something different. You can do what you love. You don't need to retire and people aren't met to

sit and sit around and watch TV on their couch and stuff. How much is a reasonable amount do you think that they need to retire and people aren't met to sit and walk sit around and watch TV on their couch and stuff.

How much is a reasonable amount do you think that they need to save in order to reach their goals, Bill?

...