Posts Tagged ‘early retirement’

Inequality is Welcome in the FIRE Community

Kurt Vonnegut, Jr. published Harrison Bergeron in 1961. His short story illustrated the ultimate end of inequality as only the humorist could. Today we think of inequality in term of race, gender or income. Vonnegut knew this was only background noise to the real issues of inequality.

In Harrison Bergeron the attempt to erase all inequality is taken to a whole new level. Beauty, strength and mental capacity were also dished out in unequal portions to the masses. To compensate, the beautiful wore grotesque masks; the strong wore heavy weights to hold them back; and intelligent people were hit with a mental pulse of sound every twenty seconds to dumb them down.

Inequality is all the rage today. We demand income inequality between genders and race. On the surface it all seems good and honorable. Beneath the hood something else might be at play.

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Why I’m Retiring the Day I Graduate from High School

I’m different. I’ve always been different. I was born with a big disadvantage. Before I was a year old I had more surgeries than most people in a lifetime. At twelve I started taking over a dozen medications. Pill after pill is cut and placed in a dispenser like that of a 90 year old man.

Dad picks on me that all the pills I take are a meal in itself. My parents are supportive, but they have no idea how much of a pain it is to be sick all the time.

I’m also different from my family in other ways. My sister wants to travel the world and teach English (more on that later). My dad hates traveling past the mailbox at the end of the driveway. He says he wants to build a wall around the farm. When Trump came out with his wall on the Mexican border dad said he needs to talk to Trump and see if he could get a section built around the farm.

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I Hate My Job!

The accounting industry has been consolidating for decades. When I started my practice in the 1980s the local newspaper had several pages of business card sized ads hawking the wares of local tax offices and CPA firms. Today you would be hard pressed to find an ad (outside the massive DIY tax software) by any tax or accounting firm even in the depths of tax season.

There are several reasons why the corner mom and pop tax office is dying. The tax code has steadily increased in complexity. If I didn’t have a background of knowledge to build on I might not consider the tax field if I were starting today.

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Church of FI

Back in the old days the FI (financial independence) community was a different place. Advice was simple and straight forward. King Solomon reminded us to avoid lending or borrowing. Nearly half the parables of Jesus have to do with money and wealth.

The simple message sold well. So well in fact it became ingrained in religious dogma. The goal was honest. Work hard, save and you will enjoy your old age.

The old school in the Church of FI made the most of a basic message. The advice and values were handed down generation to generation. It lasted for one simple reason; it worked!

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The FIRE Community is Killing the Economy and Society

Members of the FIRE (financial independence/retire early) community might want to sit this one out. It’s going to get rough and I’m naming names!

The concept we now know as the FIRE community has been around for a long time under different names. Frugality and minimalism come to mind. Talking with grandpa they held many of these values 70 plus years ago without a fancy name to make it cool. Many of the personal habits of members of the FIRE community sound very familiar when reading the ancient Stoics: Marcus Aurelius, Seneca, Epictetus.

Guys like Jacob Lund Fisker (Early Retirement Extreme) and J.D. Roth (Get Rich Slowly) put frugality on the map. J.D. made getting out of debt and financially independent cool!

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Could We Get a Single Digit P/E Ratio?

Recent volatility and decline in the broad markets in the U.S has people wondering if the correction returned the market to typical valuations. There are several tools used to measure the market’s value. One of the most widely used is the price/earnings (P/E) ratio, derived by dividing a stock’s price by its trailing twelve months (TTM) earnings.

The P/E ratio on the S&P 500 stands at 24.46 as I write (February 11, 2018). The ratio has been above 20 since early 2015.

When you take long periods of market data and shake them together you end up with an average P/E somewhere in the mid-teens. There is no hard and fast rule stating what a fair or reasonable P/E should be though plenty of opinions exist.

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Confessions of a Sexual Nature

A clickbait title like above requires some quantification before we begin. It’s not what you think. Fewer than one in a thousand have a clue what I am about to reveal. And the personal finance ramifications are incredible. If you live the story the cost can be a million or more; it can even cost your…

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The Slow DRIP to Massive Wealth

Back in the 1980s and 90s a company advertised heavily promoting dividend reinvestment plans (DRIPs). The commercial looked like a staged radio show with a woman telling the audience no one has an incentive to promote these great programs to invest in the biggest companies in America. I don’t know if the companies with DRIPs…

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