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family

Early Retirement, Frugal Living, Lifestyle

Stop Working for Money

Have you ever wondered why Elon Musk keeps pushing so hard? A hundred million from PayPal wasn’t enough, I guess. Building the greatest all-electric car is not enough for Musk, either. He also wants to fundamentally change the way humans see the world by starting a company called SpaceX. As I write, Musk promised to take two people to the other side of the moon and back next year! Talk about pushing yourself.

Before you start thinking Musk is a slacker, he also has this thing he manages called Solar City. If you want to build the greatest electric car ever you may as well figure out a way to fuel the darn thing for next to nothing. Right?

You would think running three large companies at the leading edge of technology would be enough for a 45 year old man with plenty of money to kick back and spend the rest of his life gloating. If you think that you don’t know Elon very well. He wants to put mankind on Mars in the next decade and send the species even further into space. His dreams never stop flowing and he makes them real against all odds. Just one great feat of Musk’s would make anyone’s career complete. So why does he do it? Why does Musk keep dreaming and then putting those dreams into action?




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Lifestyle

An Open Letter to My Children

Normally when a parent leaves a letter to his children the doors and windows are closed. However, when your dad is a business owner and somewhat known due to decades of publishing, the public will want to look in the window. Regardless, this letter is for you girls and no one else.

My fondest hope is you will print and carry this letter with you. There are many things I want to share with you about life. I know it looks daunting and impossible at times, but it isn’t that bad. During those darkest hours, hours when you doubt your own judgment, you can reference this letter and know that your father has felt this way many times in his life. Watching me over the years you probably think it comes easy for me. It doesn’t. I fight as hard as or harder than the next guy to achieve goals.

The same applies for those moments of excessive glee. Honing the highs and lows is an important part of living a joyful life. Always keep an optimistic attitude. Regardless the situation, it helps. Things are never as bad as they seem and rarely perfect either. Life is in the middle.

Life is a journey best taken at a gentle pace. Don’t rush! Goals are fine as long as there is more. The only real goal life offers is death and you will get that right the first time, same as everyone else. What matters is what you do now, at this very moment. Yesterday is a memory; tomorrow a dream. All that is real, all that matters is this moment in time. The universe is not 13.7 billion years old. It is one moment only. This moment. The one you live in.





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Early Retirement, Estate Planning, Lifestyle

Leaving a Legacy Without Destroying Your Children

Reaching financial independence requires a consistent set of skills and persistence. The habits that allowed you to amass a sizable nest egg don’t die just because you pass some arbitrary border. Education, job, and family life consume all your time in the beginning.

After college it is time to earn a living. After finding a job it is time to climb the ladder, all the while saving a massive percent of your income to reach your financial goals.

Family is a priority. A significant other and children take time and money. You increase your saving and investing skills. Raising a family is expensive only if you don’t know how to shop. You hit the rummage sales and thrift shops for kid’s clothing, toys, height chair, car seat and other stuff the youngsters will grow out of quickly. Later you sell the kid’s stuff for about what you paid for it at a rummage sale of your own, passing the same opportunity you had to another young couple.

And then it happens. Your hard work, intelligent spending and diligent saving pay off. You reached financial independence earlier than planned. Now you have another problem you never gave much thought to before: your legacy. If you reach financial independence early, how large will your net worth grow before you leave this world?

Thinking about your legacy when you are still in the building stages is hard. It requires looking into the eyes of the possible: early death. What happens if you die while the kiddos are still minors? A plan is needed. Even if the kids are grown, a plan of succession is necessary. And what if kids are not part of the picture? Then what happens to your legacy? Let’s explore the possibilities.

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Early Retirement, Lifestyle, Small Business

The Clock is Ticking

When my accounting practice went from a part-time seasonal pastime to a full-time firm I needed to bring in talented employees. Bev, a close friend of the family, had many years of experience working for other tax firms so I asked her to work for me. She accepted the offer.

Decades started to pile up. The joke around the office was Bev worked for my firm longer than I had. It wasn’t far from the truth. Bev was always a talented and faithful employee. She did good work and I could trust her.

But time counts, and keeps counting. Bev had something few people ever possess: talent and personality. Clients loved Bev and for good reason. She knew her stuff and made people around her feel comfortable. In my darkest hours she was there to hold the firm together. When my youngest daughter was born with birth defects she kept the office open while my mental wounds healed.

I have fond memories of those days. I also remember how it ended. Bev comes from a farming background; solid German stock. What I mean to say is she isn’t a petite girl. Wisconsin winters can be brutal. Arctic blasts made it difficult for her to breathe outside. I was worried about her. It was the excuse used to force her to retire.

But that was a lie. The truth is something was changing in Bev. It started slow and steadily advanced. She wasn’t as good at taxes as she once had been. Once she was great at taxes, now she was merely good and rapidly approaching mediocre. It is a terrible thing to say about someone with such an honorable and distinguished career.

I noticed the changes in Bev when she reached her mid-60s. It was small at first. Little things were missed. Sometimes the tax return was correct, but little things around the tax return were forgotten. A note was not updated; a basis statement not completed. And clients still loved Bev.

Each year got progressively worse until the work was unacceptable. I had to review all her work at a much higher level. Bev had to go. It was not an easy choice. She accepted her retirement and took to it like a pig takes to shit, but she was hurt at the time. She still brings her personal tax work in for us to prepare.

Is that Footsteps I Here?
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Early Retirement, Lifestyle

Living Between Mr Money Mustache and Tim Ferriss

Modern technology and automation is making our lives easier every day. Virtually every task humans do is also done faster, cheaper, better by some automatic process with a silicon chip inside it. These automation processes started showing up a few centuries ago and started changing human life in fundamental ways in the last 100 years. The pace started slow with a steepening incline of progress. Today, we face a challenge never faced by humans before: what to do.

Free time was always a part of human living. It took the Industrial Revolution to transform human stock into expendable machines. In hunter and gatherer days, man would spend large amounts of time idle, pursuing whatever created interest. We can still see a few remaining fragments of art at historical sites. Hunting parties might extend for days or even weeks. Once game was slaughtered and the meats cured, the pantry was full for an extended period of time. Weeks, even month were free to build monuments, create art, and tell stories around the fire.

Then the Agricultural Revolution arrived. Man had his first taste of what was yet to come. Humans were now slave to the ox and land. Working the land and domesticating animals kept man busier than hunter/gatherer days. Hunched over the plow all day brought the first lower back pain for the species. Humans worked more hours than ever. But once the crops were planted there was free time, followed by a flurry of activity harvesting the crops. Then, man settled in for a long winter season of leisure.




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Lifestyle

Watch the News Right or Turn it Off




News over the years has deteriorated into biased reporting, slanted by political opinion. Finding quality news to form your own opinion is nearly impossible to find. Yet, without good information you can’t make informed decisions in your investing, business or personal life.

As bad as it is, there are ways to still get quality news reports. It requires effort to sift through the garbage to find facts you can use to improve your business and personal life. The BBC, The Economist, and National Public Radio still provide solid reporting with a minimal of political bias. Fox News is not news, except for those rare occasions when they report an event they have not had time to work a political angle on yet. CNN is somewhat better, but still contains plenty of bias.

Before you blame to broadcasters and the internet news feeds, remember, we are the ones feeding the beast. By consuming meaningless opinion pieces we encourage more of the same production. Our own personal biases will determine if we love Fox News or hate it. I don’t care for Fox News for a completely different reason I will share shortly.

Polarization and populism has taken over. People only want to hear what they want to hear. News no longer informs with facts; it reinforces already existing personal biases. It caters to base emotions like anger and hate. And let’s not pick on Fox News alone. I don’t watch TV so unless I am visiting family or in an airport, I don’t get much TV news indoctrination. I prefer internet news feeds. CNBC provides business news, The Economist provides a wide variety of news from around the world, and gasp, I also tend to sift through the dung pile of Yahoo’s news feed.Continue reading

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The Worldview of the Financially Independent

IMG_20170112_134557What started as a grand idea has morphed into a changed worldview. For decades I focused on the local community in my practice. I would speak for various organizations around the area, rarely traveling more than 50 miles. And I was happy with that.

My speaking engagements and traveling expanded during the 1990s when I entered the securities field. As memory serves, every presentation I have given outside the State of Wisconsin was for something related to securities. Until two year ago.

Two years ago I had this brainstorm to expand an area of my practice that had been an itch I had to scratch. It went horribly wrong and changed my life in ways I never expected. It was a simple idea. Swoop in on a personal finance conference, dazzle them with my usual charm, and sell an idea. It didn’t go according to plan.

My idea was accepted in a modified form. The problem arrived when I was offered an opportunity to expand my worldview like never before. Remember, I am an old farm boy from the backwoods of Wisconsin. This shit doesn’t happen around here. I was totally unprepared.

The result was this blog and a shout out by Mr. Money Mustache. I had to write this blog; I had no choice. The idea was on the back burner for years. Now I had to push forward with the project. People wanted to hear what I had to say.

And then there was the growing demand for my services and requests to speak to more groups. As I started to attend these events and communicating with many people in the FIRE (financial independence, retire early) community, I started to build friendships. I missed these people when they were not around.


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Early Retirement, Frugal Living, Lifestyle

Dealing with Jealous People

4482714827_491d395f7e_bReaders of this blog are committed to financial discipline. They save a large portion of their money and invest it wisely in index funds and real estate. Whatever is left after investing they consider spending . . . maybe.

Before long the value of the index funds grow significantly and the investment properties gain more equity while throwing off a steady stream of passive income. People begin to notice. You, one of the mentioned readers, drive a less than fancy car and have a modest home or apartment. People also notice you brown bag lunch at work and rarely party with the crowd. Instead of the bar scene you invite friends over for a cookout and a few cold ones.

Everyone around you notices how much less stress you seem to have compared to them. You make it look easy. And you have money. Of course, you do. Because you don’t spend every penny you earn. It starts with one person feeling resentment and spreads like a bad rash. For the first time you feel the sting of jealousy. People you care about and admire now have turned against you because you are clearly no longer like them. You lack the fancy house, expensive car and endless nights of fine dining. And how dare you live without cable TV. Is there something wrong with you?


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