Tag

family

Early Retirement, Lifestyle

Smarticus

Dick Proenneke

There are two kinds of stories people like to read in the personal finance community: personal finance reports and “What am I doing” stories. Pete over at Mr. Money Mustache released his spending report for 2016 this past week and Jim at jlcollinsnh provided us with a report on life in the comfortable Wisconsin south woods.

Spending reports/progress reports toward financial independence interest me, too, even though my financial situation has been solid for a few decades. Spending reports motivate me, giving me ideas to cut consumption without sacrificing quality of life. Progress reports are always interesting. The writers of such reports usually express an emotion with where they are at on the scale of financial independence. From my viewpoint it seems so obvious they are in much better financial shape than they imagine. It is intoxicating watching these good people make their way to the Promised Land.

It’s been a while since I offered my own spending report. Sorry. Spending is so boring to me. God willing, I will get my 2016 report out before the end of 2017.

Kevin has started the redesign of this blog (I’ll pay him a soon as my new bonus credit card arrives).

Collins shared his life these past few weeks on his blog. I enjoyed his story and I was there part of the time! Such are the simple pleasures of life.

Your favorite accountant has a few interesting tidbits in his life you might find of value, too. Whereas, a lot of people in this community talk about their sedentary or retired life or world travels, I am busy acting like a mini Elon Musk. Call it a sickness.




Continue reading

Related posts
Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule
May 17, 2017
The Knuckle Dragging Neanderthal Meets Uber and Airbnb
May 15, 2017
Fighting the Profit Train
May 12, 2017
Lifestyle

Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule

Charlie Munger

The best way to learn is by studying the best. Experience has value as long as it also has a foundation in knowledge. Reinventing the wheel again and again is a fool’s errand and not conducive to personal development.

Studying the best takes many forms. Working for someone at the top of their game is the best way to learn, but the opportunities to do so are limited. Formalized education communicates facts without always presenting the best in your selected field. The number one way to learn from the masters is to study them through intense research of their work. The greatest minds are available like never before. YouTube videos of their speeches and books and news articles on their practices give us massive quantities of material to learn from.

Today we will focus on a simple story shared by Charlie Munger, Warren Buffett’s friend and right-hand man at Berkshire Hathaway.




Continue reading

Related posts
Smarticus
May 22, 2017
Fighting the Profit Train
May 12, 2017
Your Money or Your Wife
May 10, 2017
Frugal Living, Lifestyle

Your Money or Your Wife

Divorce and money.

Warning: What you are about to read will be disturbing to many. Women and children should leave the room now. Men with a queasy stomach should also take a step back. It’s been two weeks since I dropped the f-bomb. The drought is over. I will use the f-bomb today in its correct dictionary definition to illustrate an important issue. This post is so volatile LinkedIn will not allow you to post this to their site even though your life depends on it. Facebook is good with it, however.

Money is the leading cause of divorce in the United States and in most Western countries. Marriages survive infidelity better than money problems. The worst part is how expensive divorce is and since money issues are the leading cause of divorce, it doesn’t solve the problem.

Then we need to think of the children. They suffer disproportionately. Adults have at least some control over their actions and the outcome. Children are helpless victims in the middle of elevated negative emotions. The damage is significant and lifelong.

Every marriage has its challenges. Forty-one percent of first marriages end in divorce. Abundant data on divorce exists, but there are large discrepancies in some of the data. It is also hard to put an exact number on the percentage of marriages that will end in divorce when the married couple are still alive. Using the number of divorces in a year compared to the number of marriages is useless. Still, many marriages end in divorce, statistics aside. Money is a large factor in divorce and divorce only exacerbates money problems.




Continue reading

Related posts
Smarticus
May 22, 2017
Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule
May 17, 2017
The Knuckle Dragging Neanderthal Meets Uber and Airbnb
May 15, 2017
Frugal Living, Lifestyle

The One Guaranteed High-Return Investment You Don’t Own

Every investment, even guaranteed ones, require priming the pump. Before you get paid by your employer you work; before you get paid a dividend or receive capital gains you must invest in the index fund first; before you get paid rent you need to buy the property and prepare it for tenants; before guaranteed government bonds pays you a penny in interest you must first buy the bond. You only get something out if you first put something in. This is true in every part of your life.

I grew up on a farm and after a few years living in town I moved back to the countryside where I feel happiest. Town still has a magical pull. Living in town means everything I need is close by. I can bike everywhere. The need for a car when living in town is minimal. If I lived in town I wouldn’t own a car. For long trips I would rent a vehicle. Uber, my bike and legs would handle 99% of my transportation needs.

Living on a small farm has advantages. The cost of living further from town is offset by the amount of free food, or nearly free food, I get. Raising my own meat (beef, chicken, fish and pork) means I know what is in it. Abundant garden produce means healthy living while the crops are in season. Asparagus in spring, radishes and other fast growing vegetables follow, and apples, apricots, cherries, peaches (yes, peaches in Wisconsin!) and grapes round out the abundant autumn harvest. There is so much good food and it is all free or nearly so. Too bad it doesn’t last all year round.

Continue reading

Related posts
Smarticus
May 22, 2017
Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule
May 17, 2017
The Knuckle Dragging Neanderthal Meets Uber and Airbnb
May 15, 2017
Early Retirement, Frugal Living, Lifestyle

How I Get Everything from Amazon for Free

And just think, you get $25 while Fido takes all the risk.

A few years ago Mrs. Accountant and I attended our first Camp Mustache in Seattle. It was my epiphany to the personal finance community. Sure, I had decades of experience under my belt and a history of writing on the subject, but never before did I have such a platform to spread the gospel.

It didn’t take long for people to know who I was. I have that effect on people. Many attendees were still working a job as they moved toward financial independence and early retirement. From the minute I arrived people knew I was a tax guy. People were interested in what other people did as they worked toward their financial goals.

It didn’t take long before Mrs. Accountant was asked what she did. She hesitated for the smallest fraction of time. It was a tell. But Mrs. Accountant is fast on her toes; you have to be if you live with a crazy accountant. She said, “I work in his office,” pointing to me. Of course, they pressed her for details on the kind of work she did in my office. It wasn’t pretty.

Later, when Mrs. Accountant and I were alone, I explained to her that this is one group you don’t have to bullshit. They get the early retirement thing. Somewhere back in her early 30s Mrs. Accountant checked out of the regulated work routine. She did what I was supposed to do.

Early retirement doesn’t mean ‘waiting for death’. Mrs. Accountant is very active. Sometimes it takes me upwards of an hour to catch her. I’m getting old.Continue reading

Related posts
Smarticus
May 22, 2017
Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule
May 17, 2017
The Knuckle Dragging Neanderthal Meets Uber and Airbnb
May 15, 2017
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?




Continue reading

Related posts
Smarticus
May 22, 2017
Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule
May 17, 2017
The Knuckle Dragging Neanderthal Meets Uber and Airbnb
May 15, 2017
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.





Continue reading

Related posts
Smarticus
May 22, 2017
Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule
May 17, 2017
The Knuckle Dragging Neanderthal Meets Uber and Airbnb
May 15, 2017
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.

Continue reading

Related posts
Smarticus
May 22, 2017
Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule
May 17, 2017
Fighting the Profit Train
May 12, 2017