Archive for July 2018

Easy is the Hardest Thing in the World if You Want to Be Rich

This moment was brought to you by hard times. Difficulties and challenges make you stronger. The only way to have an easy life is to embrace hard times. #easy #financialindependence #easystreet #success #motivationRichard Branson outlined in his autobiography, Finding My Virginity: The New Autobiography, 75 times he had close calls in his life. Recently he published number 76 on his blog. It seems strange for such a successful man to have had so many close calls. Branson has several successful businesses and a life most can only dream of. He is living the dream.

From the outside it always seems easier. I hear the same thing from readers. “You make it sound so easy, Keith.” To which I respond, “Then you haven’t been reading close enough.” Life has been anything but easy for me. Most people have difficult lives. It is these difficulties that define us. We either rise to the occasion and grow or wither and die. One path leads to a sense of accomplishment, the other pain and loss.

The challenges are endless. To outline a few highlights of my life’s plights: heart disease and a heart operation at age 13, shot in a hunting accident at age 13 which led to the discovery of my heart disease, numerous attempts at business ideas that failed, two daughters with serious medical conditions. Need I remind of the attempt to destroy my business only a decade after its inception? The attempt almost succeeded. Now might be a good time to repeat the millions of words I wrote and published over the years before I attracted even a modest following. No, kind readers, it was never easy.




Beg for Hard Times

From an early age, telling me “No!” was nearly a virtual guarantee I’d check it out. Don’t climb that haymow. Don’t walk to the creek alone. Don’t play with the vase! {crash} “Sorry.” And then the tears.

I was blessed (or cursed if you see things that way) with an insatiable curiosity. The only way to grow, to succeed, is to do what nobody wants you to do. And that means plenty of painful moments.

My dad wanted me to work in the family business working in agriculture. Our family has a long history in agriculture. I wanted something different. When I announced my intentions of going full-time in taxes and accounting my dad told a neighbor, “You won’t believe what my idiot son is going to do.” I have a great relationship with my parents, but that one hurt. The neighbor he told ended up an employee for two decades. (Clients: Remember Bev? She still comes in every year.)

Even people you love and trust will sometimes cause pain and make it harder. They mean well, but they don’t understand. Readers around here have stories to tell about their family’s reaction when they pursued early retirement and world travel. It’s never easy.




Burn the Ships

In 1519, Captain Hernan Cortez arrived in the New World at Veracruz. The first thing he did was order his men to burn the ships. Cortez knew his men would always hold back when retreat was an option. With nowhere to retreat, Cortez and his men pushed forward. What other option was there?

Early adulthood had me wondering what I was going to do with my life. Fortune (and frugality) allowed me to build a nice nest egg. If I watched my spending close I probably could have checked out in my early to mid 20s. That wasn’t my intention or goal.

Working in the family business wasn’t for me. I grew up on the family farm and had no intention of working in agriculture the rest of my life. (Now I live on a farm and have raised many animals. How times do change.) The family farm ended in bankruptcy the year I graduated from high school so the family business in ag repair was my only option. (It was the Rust Belt in 1982. There were few options.) For anyone looking for the easy road; I wasn’t on it.

Then I met Mrs. Accountant. If anything went according to plan, my relationship with the awesome and adorable Mrs. A was it! It’s about the only thing that went off without a hiccup. (Actually, if you get us in the corner we could share some stories. It would be inappropriate to share publically on a blog.)

Marriage also had challenges. Easy wasn’t in the lexicon. We worked hard to build a solid relationship.

The marriage process threw a massive wrench into the works. I was slumming when I met Mrs. A: enjoying loads of good books and a few college courses to round out my days. A good husband, the minister who married us said, needs to provide for his family. So I was hired as the janitor for the church.

Fourteen months later I quit to move full-time in my tax/accounting practice. I was young and foolish. Like Cortez, I burned the ships. I knew if I had an escape route I might take it. There could be no going back.

My client list was less than 50 when I started. Since I moved into town I left most of my regular clients behind. No problem, I thought. I know exactly how to get more clients. I quit my janitor job January 31, 1989. February 1st I was living the dream as a full-time business owner. I worked out of my home. What could be better?

Two and a half months later, on April 15th, I stared out my bay winder and thought, Oh, Sh{beep}! I didn’t exactly replace all the lost clients. To be exact, I had 48 clients and ~$3,000 in revenue. (I said revenue.)

Don’t tell me about easy. There was no easy in that moment. Looking back it seems foreordained. It was anything but! My nest egg was hit hard by startup expenses. The ships were burned. I HAD to move forward. My wife counted on me. To say I was nervous and worried would be an understatement.




Kick’em When they’re Up, Kick’em When They’re Down

You know how the story ends. I survived and even thrived. That’s why I’m here. That means my story is colored by survivor bias. The ones who didn’t make it aren’t talking to you on a blog about it.

Richard Branson had some really close calls in his life. I’m sure there are many more we don’t know of. Every business, every marriage, every relationship, every parent has stories to tell. After the fact it looks easy because all the while we are listening we know the endgame. In the warzone it was anything but clear how things would turn out.

There was no guarantee I would survive heart surgery in 1978. My cardiologist died of AIDS later. One nick of the glove and you’d be reading something else right now. I was a third of a millimeter away from a very short life.

Tempering make the iron stronger and more pliable. People, too. Difficulties and hard times give you the strength to grow. #success #motivation #life #lifelessons #personalfinance #freedom #growth #strengthThe hunting accident also put life in perspective. First, it saved my life by exposing my condition. Without that I would have died of a massive coronary sometime in my 20s, or at the latest, early 30s. It would’ve been just one of those things. Family would have spoken of the tragedy for years until I was all but forgotten. But I was shot. And if one of those pellets would have been a half inch deeper I would have died before anyone knew I had a medical problem. Luck does play a role.

Luck didn’t make me feel invincible; it made me feel vulnerable, like I was living on borrowed time. I tried everything. Burning the ships was a natural act. Prodding myself, forcing myself to move ahead was exactly the situation I set up.

Here is the secret: Every failure, every painful moment, drove my harder. My life appears easy because it has been so hard. I’ve been kicked and beaten unfairly and if you want a really painful story pull me to the side sometime when I’ve had a couple so my defenses are down. You’ll find out how easy it really was.

Zig Ziglar once said we should pray for hard times and difficulties. He understood. Ziglar went on to say hard times and difficulties make for an easy life and easy makes for a very, very hard life. The message was clear. Iron is brittle until you heat and hammer it. Fire and stress harden and strengthen the iron. With the right ingredients you get steel. But there is no chance for strong steel until you apply heat. It is the tempering which makes the metal strong.

And so it is with people. I know you have dreams. That is why you are here. Your goals of financial independence and/or early retirement need nurturing. Starting your dream business will not be easy. I can tell you what to do and it will not be enough. You will need to adjust, try different things, to succeed. Frugality is challenging. An awesome marriage is work. Some days it doesn’t work. Then you try something else and if that doesn’t work you try something else, and on and until you win.

In relationships it is easier. The endless effort is noticed by all parties involved. It makes a difference. My marriage isn’t great because I’m so good. No. My marriage to Mrs. A is awesome because I never stopped trying to make our marriage more alive. Mrs. A and I work daily on our relationship. Even when we don’t feel like it. (That happens, too, even in solid marriages.)

You will get kicked and hard. Thank God for that! If you never took a groin shot you would never grow. I know from experience I grew and learned the least when things were humming along. It was the challenges that strengthened me. All the idiots of the world who attempted to tear me down made me the success I am today. Don’t stop hating me now. I’ve got new heights to climb.

Pray for the same. Pray for money problems so you can learn really money lessons; pray for marital problems so you can appreciate your significant other and build a more solid foundation; pray for a bad economy and job loss; pray for bad weather. Pray to whatever god you believe in and ask for hard times.

It’s the only way to have an easy life.

 

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!

 



Stalking the Accountant: Housecleaning

Vote for The Wealthy Accountant , says Pinky.

I have three short bits for your review. It will only take a minute, but still important stuff.

 

Plutus Awards: The Plutus guys wanted me to inform my readers nominations are closing July 31st. If you haven’t made your nominations known do so quickly or forever hold your piece. I’d encourage you to consider this blog for Blog of the Year. It’s okay if you choose someone else, but if you do my cat Pinky will have a stern “meow” for you.

 

Copyright Issues: A lot of things go on behind the scenes of a blog; what you see is only the tip of the iceberg. One of the increasing demands on my time involves copyright issues. Many of the tax issues I cover (and other subject matter, too) is in demand by certain media outlets and academic papers. Several requests per week show up. I point them to my post allowing use of my material. Not good enough, they say. They need copyright paperwork in place. This requires reading contracts which is very time consuming.

When I was slow in responding to a few requests this blog was reported to ACI Information Group, formerly Newstex. ACI handles copyright issues for large organization like Business Insider. It was an easy choice. By signing up I dealt with all copyright issues one time and now can wash my hands. You are still welcome to use any of my material, but if you need copyright permissions you can go to ACI and get what you need. I have signed all necessary documentation with them so you can report to your organization you have secured copyright permissions.

 

Golden Nugget: Have you ever wondered where writers like Stephen King get their ideas? Have you ever wondered what they read? Well, I don’t know about Steve, but I can share something I found and am really enjoying.

I found this blog, Debt Free Dr, and was instantly pulled in. His style is crisp and informative. When you get a chance, check it out. You don’t need to be a doctor to benefit; if financial freedom is something that interests you then do yourself a favor and check out Debt Free Dr.

How did I find this awesome blog? you may ask. Well, it wasn’t any special talent on my part. The guy who writes the thing asked for a consulting session. I had to check it out, of course. It is really good. I gained as much or more out of that consulting session as my client.

 

Enjoy your weekend.

Are You Mentally Ready for Retirement?

Retirement is more than just not working, money and investments. A real retirement, retirement at any age, should have a foundation of love, happiness and joy. #earlyretirement #stoic #happiness #love #relationshipsThe early retirement community is alive and well in one of the greatest economic booms of our age. The government is working hard to create more jobs while the people want meaningful work and more time with family, friends and for pursuing other personal interests. Except for the most hardened, retirement is a goal that will be reached eventually whether you are ready or not.

The early retirement community has a lot to teach to those racing toward the finish line. There are serious risks involved, however. Without serious planning and thought, retirement can be hell on earth. Sitting around all day without meaning or purpose saps all joy and pleasure. Retirement is meant as a tool to explore wonderful new worlds filled with beauty and awe. Dream travel and the business you always wanted to start are now possible. You’ll have time to write that book; start that podcast; climb that mountain. Or, it could be anxiety, loneliness and fear.

There is an advantage to working in the accounting profession for three and a half decades. I learned a lot and noticed even more. Without fail, paying off the mortgage takes off 5 years (you look younger). I’ve witnessed it countless times. Retirement adds the 5 years back and more all too often.

It breaks my heart when a client works a lifetime and can finally retire. He is all smiles in my office the first year as he talks about no longer going to work. (I choose those words carefully because they make a difference as you will soon see.) When the focus is on “not working” problems soon follow. A year later when the client shows up to have his tax return prepared he is noticeably older. Seriously older, like 5 or 10 year’s worth of age in a single year.




Preparing Mentally for Retirement

Retirement is more than saving and investing. You hear a lot about those two things, including around this blog. So much time and effort is expended on frugality, saving every possible penny and investing in broad-based index funds. Laser focused attention drowns out all other matters. And therein lays the problem.

Preparing for retirement is a lot more than just money. With all the extra time on your hands, what will you do? If you love fishing and plan on doing more of it when you retire; good for you. But fishing (golfing or any other activity is the same) becomes the new “job”. Worse, you end up doing the thing you once enjoyed until it no longer brings pleasure. And you keep on doing it out of habit and no other options to fill your day.

Another downside of retirement is time with family. Yes, you read that right. When you are at work you have time away from family and friends. This makes time together sweeter. But once you have no obligations you will spend more time with family and that can lead to problems.

Retirement isn’t a bad thing! It might start to seem that way, but I’m a big fan of free time. Virtually all my adult life was in business and the profession I choose allowed me serious time at home with family with the exception of the two and a half months of tax season.




A Story about Pete

Friday night is cards night in the backwoods of Wisconsin. A certain accountant and his daughter trek a whole mile to visit with family and neighbors. The reason: a mean game of Sheepshead is in the works. Except for my daughter, we are all a bunch of old guys. The usual game starts at 7 and ends shortly after 9. (Old guys need their sleep.)

A neighbor, Pete, plays every week. He retired early and found a variety of things to occupy his new reserve of time. When he first retired he had plans for loads of projects around the house. He wanted to plant several hundred trees on his property. So, when work came to an end he set to planting all those trees. It took a lot less time than planned since he didn’t have to do it in the evening or on the weekend. He got out there and before you knew it the trees were done.

Planning is required to live the retirement of your dreams. #retirementplanning #earlyretirement #FIRE #friends #dreamsOther projects around the house and yard fell fast. In a few months my buddy Pete was done with his to-do list. And life is like that. If you think you have all these projects to keep you busy when you retire, think again. Unless you have a farm or serious acres, those projects will drop like dominoes.

Pete loves retirement. It suits him well. He had a rental property when he retired and kept it. Repairs and maintenance sop up some time.

Pete gets involved in community activities, helping friends, family and neighbors. It gives him something to do. He milked cows for a local farmer for quite a while. He hitches a ride with my dad (my dad always talks about retirement, but like his son, isn’t very good at actually retiring) just to keep him company when he has a long load to deliver.

Pete keeps busy and had a plan. But it didn’t work, or rather, he had to modify it quickly. The trees were planted and even odd jobs were not enough to fill the day. Of course more time was available to drive around the countryside and check out the neighborhood. It still gets old after a while.

Pete found a litany of things to fill his life with social interaction. Friday night cards is one of those things. His rental property is another. Tagging along with my dad or helping me get a tractor tire to Ditter’s for repair (we might be doing the tire run as you are reading this) is part of his normal routine now.

Pete’s original plan short-circuited fast, but he sat down and figured it out. Retirement has been good for Pete. I can’t say the same thing for many of my clients.




Negative Visualization

The ancient Stoics had a method for dealing with issues that disturbed the mind. They called it negative visualization. It works like this. Sit back and close your eyes. Think about the thing you fear and play it all the way through with the worst possible consequences. Illness might have you visualize permanent impairment or death. Money problems might have you visualizing the loss of a job, bankruptcy or foreclosure. Whatever the issue, you have to face it head on in all its fury.

According to the Stoics (and a certain accountant), negative visualization allows you to face down your fear and then realize it’s not real. And, if it becomes real you realize it really isn’t as bad as you thought. The Stoics would fast so they could experience extreme poverty. Once they realized it is a minor inconvenience they realized they had nothing to fear.

Retirement is different than a serious illness. But we can learn something from the Stoics and negative visualization.

See It to Believe It

Visualization also allows you to strategize your future. Sitting quietly with your eyes closed planning out your day is a powerful way to organize your thoughts and focus on what is most important. The thoughts don’t have to be negative. The negative part of visualization is used to destroy fear. For most people retirement isn’t something they fear; they actually look forward to it with excitement. Until reality sets in, that is.

Like my buddy, Pete, you can have a plan. You also need a contingency when things don’t work as planned. (Things rarely work as planned.) Golf gets old fast when you do it all day long every day, week after week. Even travel becomes a drag. Sure you can see exciting places, do exciting things. But the edge of excitement loses its edge after a while. I see plenty of early retirees. This blog gives me even more opportunities to see people up close and personal who really pull the trigger early. It becomes apparent quickly they are running from one thing to the next due to an underlying anxiety.




Action Plan

Achieving your dream of retirement doesn’t have to end in tears and depression. Retirement doesn’t have to create feelings of, “Is this all there is?” Planning ahead is more than just saving and investing. Accumulating money is the easy part. By the way, it’s not money or retirement that you want. You want something else. Only you can answer what you really want. Visualization will help you discover your true desire. It will take time. Do it before you retire and after. Your desires will change. The happiness and joy you experience depends on your commitment to planning and visualization.

Here are useful tools to prepare for retirement at any age:

The most meaningful life involves friends and giving. Turn your retirement into a gift. #earlyretirement #retirement #meaningful living #giving #caring #love Meaningful Activity: Pete planted trees and helps neighbors. There is a secret hidden in there somewhere. What Pete discovered was meaningful activities.

Golf and fishing are fun activities, but not meaningful. I love my life because I know I’m desperately needed every day by Mrs. Accountant, my daughters, clients, employees and the community. When I fall over dead people will know I’m gone because they were counting on me. Clients and kind reader alike will feel an empty spot. It’s the mark of a well lived life. My work is meaningful because it makes a difference in the life of someone other than me.

TV and other mindless entertainment does not provide fulfillment. You need a reason to get out of bed each morning. I never used an alarm clock in my life! I jump out of bed early ready to take on the day. I have an exciting life filled with exciting people and exciting stuff to do. Meaningful work fills my time and I have more of it to do than time is available. Busy is a good thing and a mark of a life well lived.

If you find yourself struggling to get out of bed in the morning after you retire you probably lack meaningful activities driving you to get at it. Use visualization again. Play through all the scenarios of things you enjoy doing and people you find a pleasure to create with. A part-time job might fit the bill or charity work. I can’t tell you what you must do. You need to figure that out and the only way to do it is close your eyes and think it through.

Mix it Up: The reason work became a grind is because you did it day after day, week after week, month after month, year after year. It got old because you did it too much.

My love of reading is legendary. But I would make a poor editor. If I was forced to read stuff (especially stuff I wasn’t interested in) every day, all day, without break, I would soon start to loath reading and want a break from it. That’s what probably happened at your occupation. The boss needed you 50 hours a week and after a decade you said {bleep} it! I don’t blame you. As the boss of my own business I like to take a break from the numbers periodically. I also pay close attention to employees to assure they are mentally healthy. I want happy, productive employees, even when stress is high. They should feel good about coming to work.

Once again we will rely upon Pete’s example. Pete planted trees and milked cows and serves as an elector when needed. He has a (as in one) rental property. Enough to provide a mild diversion without turning into drudgery. He slums with my dad from time to time and offered to help me with my tractor tire this week. He’s always doing something, something different. It keeps life exciting and that is a reason to get out of bed in the morning.

Build More Meaningful Relationships: Relationships define life and provide virtually all its joy. People make life worth living. Work provided a steady contact with people. With all the extra time of retirement you might be one of those people who cocoon. This is unhealthy. I would be one of “those” people and it’s the reason I don’t do traditional retirement. When I take extended days off I tend to get less done and mope around. I’m better at formalized work. Working for someone else I don’t care for—I want to be the boss. But I like control over my time which means I fill it with stuff that interests me so I’m always up to here with stuff to do. I like stuff, I guess, as long as it doesn’t take up space.

More time with a significant other is a double edged sword. Too many people work a lifetime to achieve their retirement goal only to find themselves so unhappy with the person they love they break up or end up in divorce court. Watching this unfold is the most depressing part of my job.

You family isn’t enough! Keep repeating that last sentence until it sinks in. Family is the ultimate of importance. But if you are connected at the hip or under foot all the time it will get old fast. Work provided people to communicate with. You need to re-build your network. I can’t tell you where to go. Only you know what trips your trigger. Maybe the church is for you. Others might like a card game or helping out a charity periodically.

Find people you like to talk with (not talk to or listen to). You have plenty of time so you will need more than a few acquaintances. Some relationships need to be deep and meaningful. Some relationships will be convenient acquaintances. Both are necessary.

Start building meaningful relationships before you retire. The transition is more painful if you don’t.

Give: What is the meaning of life? Plenty of answers have been given throughout the ages, but there is only one honest answer: to give. All the advice above is predicated on giving. Meaningful relationships allow you to give to people you care about. Mixing it up allows you to help as many people as possible. Meaningful activity usually involves giving.

Giving a piece of yourself each day make you stronger and more alive. When you provide value to others you will find a burning desire to jump out of bed each morning to greet the day. Every day is awesome when you make a difference for someone who can’t pay you back. Giving is what makes communities livable.

 

Finally, enjoy your retirement, regardless the age yours started. Retirement isn’t the end of work; it’s the beginning of meaningful activity. Retirement is nirvana or hell on earth. And only you can choose which one it is.

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!



How Small Amounts of Money Grow Very Large

Small investments can grow into mountains of cash. Learn how a backwoods accountant grew an eight figure net worth. #investments #indexfunds #personalfinance #financialindependencePeriodically I get a message from a reader congratulating me on my financial success in life. The topic also comes up in consulting sessions more than I care to mention. The inquiry is always respectful and congratulatory. These people think I did something extraordinary when in fact it was actually a straight forward and simple process.

Part of my financial success is a direct result of living into my 50s. Time does a lot for net worth. Another huge advantage is I spent my entire adult life (except for those 14 months I played janitor at the church after I got married) self-employed. Business allowed me to control my income and taxes thereon more so than if I have a W-2 job at the local mill.

I’ve shared the story you are about to read many times in my office. By writing it down I hope it is easier to grasp the concept and how you can build a very large nest egg in short order. I get the feeling when I speak this concept it goes in one ear and out the other. I get it. However, this is too important—maybe the most important part of personal finance to reach financial independence—to just let it go as is. Once you grasp today’s message you have all the ammo you’ll ever need to control finances in your life and create a massive liquid net worth.




Awesome Results!

The discussion usually begins when a reader checks the Rockstar Finance Net Worth Tracker and notices their favorite accountant floating in the stratosphere. The good news is things aren’t as rosy. It’s been a while since I updated Rockstar (actually, I never updated after providing my original net worth) about my financial condition. A good market and increasing real estate values have my net worth several notches higher than listed.

I say “aren’t as rosy” because people tend to shoot whoever is in first place. (I have bullet wounds to prove it.) People also give me too much credit due to past success. Unfortunately, I’m not right because I have more. (Repeat that last sentence a few times until it sinks in. It will be useful when you want to give me credit when credit isn’t due and in your personal life when you think you’re right because you are so awesome.)

Eight figures is a worthy accomplishment, no doubt. What I did to get there isn’t as hard as you think. Let’s get to the math proving I’m a country accountant who fell into it and came out smelling roses.




Once Upon a Time There Was an Accountant. . .

Explaining how I amassed an eight figure net worth requires we use simple math. (Country accountants can’t think too hard. Hurts the head.)

First, we need to know a bit about the general equity (stock) market. The S&P 500 averages ~ 7% per year, plus inflation. Add it up and you get ~ 10% for an expected long-term return. Jeremy Siegel did the hard math proving these simple final numbers.

Annual returns are all over the map, but time smooths out the bumps and Siegel is right, the market pumps out around a 10% return over most extended period, dividends included. So nobody reaches for their calculator, we will use another simple yardstick: the Rule of 72. Simply stated, the Rule of 72 says you can divide 72 by the rate of return to determine how long it takes to double an investment. In our case things are about as simple as they get. Divide 72 by the 10% average market return to discover your S&P 500 index fund doubles every 7.2 years or so, depending on the market on the specific day.

Want to be a rich fat cat? Then follow these simple rules to build a massive liquid net worth for early retirement. #personalfinance #FIRE #earlyretirement #wealth #fatcatOkay, so we know we double our money every 7 years. Sometimes the market gets behind, other times it races fast forward. In the end we end up doubling our investment every 7 years and a bit.

Mrs. Accountant and I met in 1987, caused the stock market crash of ’87 and then got married in ’88. (Okay, we had nothing to do with the October 1987 stock market crash. It sounded impressive though, didn’t it?)

In 1988 Mrs. A and I decided investing was important for our future. Roth IRAs didn’t exist and traditional IRAs had a maximum contribution limit of $2,000 per person per year. Well, you can guess what Mrs. A and I did. Yup, we dumped $4,000 into our IRAs and got a tax deduction. Capital gains and dividend distributions were reinvested and untaxed because they lived inside a tax sheltered IRA.

Here we need to start some simple math. No need to grab your calculator; fingers and toes should suffice.

We were 24 year old whipper-snappers back then. Your favorite accountant was as sharp as a turnip green. But we did manage to engage the gray matter long enough to fully fund our IRAs and good thing we did.

Everyone, ready your fingers. We need to know how many 7 year periods passed between the ripe old age of 24 and the current age of 54. Let’s count, shall we children. Twenty-four goes to 31, to 38, to 45 to 52. STOP! That will be close enough for rural work. Also, we will double every 7 years and forget about the .2 thingy, okay?

We discovered 4 doublings of our original investment. $4,000 turned into $8,000, then $16,000, then to $32,000 and finally $64,000. For the record, there was nothing Mrs. A and I wanted when we were 24 that would make us feel $64,000 of pleasure today.

We’re not done! Remember we stopped at age 52. Add a few more 7s (52 to 59 to 66) and we discover the account will double two more times before we reach full retirement age for Social Security and nearly a third doubling by the time we reach mandatory distribution age for our IRA at 70 ½! So, $64,000 turns into $128,000 before racing to $256,000. If Mrs. A trips me before collecting income from the IRA we will be looking at north of $400,000 by the time Uncle Sam tells us we must withdraw from our IRA, or else (pay a penalty)!

The current value of that original $4,000 is now around $64,000. Not bad. It’s what we call a 16-bagger (an investment that is 16 times the original value) in the industry.




Reality Check; Isle 4

$64,000 is a far cry from an eight figure net worth. But Mrs. A and I stuffed more than $4,000 away each year. Those first years I worked out of the home (a remodeled basement). Costs were low. No driving, no office building and no additional insurance or utility expenses. We lived on ~$9,000 per year the first few years we were married. We walked all over town as love-sick birds. We had it made!

You don't need to inherit a fortune to be rich! Small amounts of money grow rather large rather fast with three simple rules anyone can follow. In fact, the lazier you are the richer you will get. #retirement #earlyretirement #investing #indexfunds #networth #nestegg #personalfinance #FIREThe first year investment in the IRA rose to the $64,000 level. Then came year two. We added more to the IRA; the maximum again. We kept doing this year after year. Mrs. A and I budgeted the IRA contributions to be made before any discretionary expenses. This was our future and we were serious about it.

More income meant more money in qualified (tax-advantaged accounts, usually retirement accounts) and non-qualified investments (non-retirement accounts with no tax deferral). I went crazy for a decade and a bit buying residential real estate. (I really mean crazy. The number of buildings we owned was obscene.) I tested investments to learn the investment and tax consequences. (Where do you think I got all my financial knowledge from? The School of Hard Knocks. I had skin in the game.)

When alternative investments ran their course the excess funds were plowed into mutual funds; actively managed early on, index funds later.

You may have noticed the top of the net worth list on Rockstar Finance contains older people, usually in their 50s or older. Slide down the list a bit and 40-somthings start making an appearance. It takes time and perseverance. The trick is simple. Invest a tidy sum and watch it double again and again and again and again and again. . .




Secrets of Secrets

Consistency is vital. Starting and adding to your portfolio on a regular basis is the secret. Keeping your paws off the stash is also mandatory! Spend less than you earn, invest in simple and easy broad-based index funds and wait. That sucker starts growing slowly right out of the gate. Then it gathers steam as it accelerates higher. Before long investment gains exceed new money invested during the year! (What an exciting moment in a young man’s (and woman’s) life!)

It doesn’t matter if the market is high or low. You need to get your money in now and swear an oath to never touch the thing until you are retired. Mrs. A and I were lucky. When we got married the stock market hadn’t fully recovered from the crash so we got in somewhere in the middle of the high and low. Still, we had plenty of years where the market was up significantly and we still added to the pile. (Man! If we had just waited until the Dow came down we could have gotten in cheaper than a DJIA of 3,000. Ah, I guess it pays to be stupid.)

To recap: You need to do only three things to have an eight figure net worth: Start early; invest consistently; and wait. Time solves all broad-based index fund problems.

And that is how you turn a small amount of money into a mountain of cash.

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!

 



Winning the Game of Life

Winning the game of life takes perseverance. Winners don't quit. Each action is a step toward their goals. The winning attitude wins. #gameoflife #success #motivationThe original working title of this post was If You’re Rich You Don’t Quit. I loved the title, but it didn’t encompass the entire theme I wanted to present. Life isn’t just about money! (Sounds crazy coming from a wealthy accountant, right?) Money is important when in need of life necessities like food, clothing, shelter and medical care. After the basics are covered money is either a game, and for some even an annoyance, since it distracts them from what they are really interested in.

Motivation is a powerful tool. Life is a never-ending series of groin kicks. People want to knock you down. Sometimes it’s life. Sometimes it’s a malicious act. Regardless, the only way you can get from where you are to where you want to be is find the motivation deep inside your soul.

“Winning isn’t everything; it’s how you play the game.” True. “It’s the journey, not the destination.” Another true adage. These short catchphrases can be used by your own mind as a way to stop striving for your goals. Self-talk will drive you forward or into the ground. Best to be cognizant of your thoughts!

Winning is important to me. (Surprise, surprise!) My interests are catholic (little c). This requires I find the most important interests so I can focus on the ones that matter most. The other interests may live as hobbies or may go unsatisfied. The mark of a true winner is focus on the single goal (or few complimentary goals).




Failure is for Winners

We all know the story of Edison and the light bulb. He tried 1,000 times and failed. He kept pulling himself up by the bootstraps and eventually produced a working incandescent light bulb on try 1,001 (or something like that).

Closer to home we have an unnamed accountant who likes to write. I wrote my first complete novel my senior year (or was I a junior) of high school. It was never published, but it gave me experience telling a story, building a world, creating characters.

After I graduated I bought a Tandy computer at Radio Shack. That bugger set me back $4,000 and it didn’t even have a hard drive! You had to insert a 5 ¼ inch floppy disk and twist a lever down to lock the disk in place before turning on the computer for it to boot. Yeah, that was one awesome OS! I think it was DOS 1.0. (Really!)

I still have 5 ¼ inch floppy disks floating around someplace with short stories on them. My second novel and two (or possibly three) nonfiction books also exist in a format I have no way of accessing anymore.

My writing sales were dismal. I sent out a lot of stories, and—being an optimist—never kept the stack of rejects. A few still float around the office, but most rejects had no value to me. I always focused on learning from each experience and moving on to the next level. What I’m saying is that I didn’t exit the womb with pen and paper ready.

In the late 1980s, shortly after I went full-time in taxes, I started a financial audio newsletter called The Wealth Builder’s Guide. Six times a year you would receive a wonderful (it’s my story so I’ll tell it the way I want) cassette tape with 90 minutes of financial advice from me along with a printed newsletter with information on which banks had the best investment rates nationally and other important financial articles.

Successful people never give up. You can have the career, family and financial success you want as long as you strive forward each day. #Success #motivation #personalfinanceI wrote, edited and produced the whole kit and caboodle. It was a lot of work. After three years it was time to hang up my cleats. My tax practice had grown too large to do both.

If you are lucky enough to still have an original copy of my audio newsletter I hear they go for a pretty penny on eBay. (Yes, that is a joke. If you find one of those suckers on eBay I would like to buy it so I have my own copy.) My basement was filled with audio equipment, tapes and booklets. After enough years went by I dumped the remaining stuff in one of my intermittent personal belongings purges.

It doesn’t sound like much, but I had around 100 subscribers at the peak. If memory serves, I charged $199 per year. I wasn’t getting rich, but it covered costs and once again, I was learning.

Up to this point you might consider my writing efforts a success. Let me help you gain perspective. My total writing sold to traditional press earned me less than $1,000 over ten to fifteen years. The newsletter, while somewhat successful, wasn’t putting food on the table. All the money brought in went to recording and dubbing machines.

I still wasn’t ready to quit, dammit!

By the mid 1990s my tax practice hit full stride. I was taking market share and I was able to find time to write. A competitor jealous of my success almost destroyed my business. It hurts (and still hurts). But I never quit. Wouldn’t think of it.

The new millennium had me punching the keyboard more than ever. Another novel ended up unpublished and several false starts kept the number of unpublished novels at a reasonable level. This was actually good news. I was starting to realize good writing from bad. Bad stories that just didn’t have a chance were ended. To prove the point, some material was selling to online sites, though the pay was a pittance.

To further hone my skills I wrote for content farms like HubPages for a few years. Most articles there were bad, but it was a place to write things I needed to get out and to build my skills.

Not all of my work was bad. Stuff was selling. Even my fiction got some notice. A few hubs on HubPages were picked up by industry journals. Traffic was growing. I was learning to write and market online.

There was one area which drove me crazy: flash fiction. I had periodic moments of brilliance in all areas I wrote with the exception of flash fiction. The money in flash fiction would never feed a parakeet so I wasn’t too upset until a chance opportunity accidentally fell in my lap.

A flash fiction blog ran across my screen. I quickly noticed the traffic was massive—millions of pageviews per year. I researched similar blogs and realized many get modest to good traffic. None monetized! The accountant in me couldn’t help himself.

I started writing flash fiction for my new blog in said genre. A small amount of research showed me how the other guys were getting their traffic. My traffic never rose as high as the best in the category, but still was respectable. I started a second similar blog once the first got going. Both those blogs had many millions of pageviews.

I quickly reached a ceiling in the genre. The reason these bloggers didn’t monetize is because you could only make so much unless you also wrote and sold genre specific novels to compliment your site. I wasn’t willing to spend that much time on the topic involved since I wasn’t really interested in the topic. (For the curious, it involved transgender issues; something dear to my heart since my youngest daughter was born intersex.)

I earned reasonable money on the flash fiction blogs, but I didn’t want to spend a lifetime repeating the same genre drivel. I was burning out the flash fiction bug.

The good news is that it allowed me to hone my skills even more. I was learning brevity. Storytelling is an important part of writing. When it works the reader steps into your world for a short while and enjoys the experience. They also tend to return like a good friend.




Failing All the Way to the Top

Decades of writing prepared me for the big event I wasn’t even planning on attending. Mr. Money Mustache asked to be my client and he was going to publish on his uber-blog how I helped him. The words weren’t even out of MMM’s mouth when people started asking about my blog. Ahhhhhh.

Yeah, you get what I mean.

This blog was an idea I hadn’t moved on. The URL was purchased to preserve the link. I played a bit with Bluehost (too much work). I hired a local firm to whip my blog into shape. They dropped the ball. The big push came while my blog was still a mess.

A year and nine months later this blog won the Plutus Award for Best New Personal Finance Blog of the Year. Now I know what you’re thinking. It seems so easy for me. I write for a bit more than a year on this blog and get a massive reward. True, but did anyone consider the 10 million words I wrestled to the page over three and a half decades?

I threw my hat in the ring this year for Blog of the Year. You can vote/nominate here. (That reminds me; I still need to vote!)

The amount of time I put into writing is obscene. It was something I loved (well thought out communication), but it never came naturally to me. I had to work on it.

Traffic still bugs me as more is always better in my book. Maybe the blog isn’t failing, but growing is very important to me. (I have a secret I think I’ll publish in a flash post this Saturday.)

After peer acknowledgement and traffic, money is a powerful guide to gauge success. I haven’t published much in the way of blog financial progress reports. Let me give a taste of the trailing twelve months here:

Ad Revenue: $11,000

Amazon: $1,200

Credit Cards affiliate: $4,000

Miscellaneous affiliates: $2,000

Specialty affiliate 1: $9,200

Specialty affiliate 2: $6,000

Specialty affiliate 3: $4,800

Consulting: $23,500

Tax clients from blog: I don’t know? Maybe half my practice already.

The numbers are estimated as I’m writing at home late at night while my data is at the office behind a very secure firewall.

The specialty affiliate listings are unique situations I created. When I saw a few powerful products I helped create an affiliate program for me only. There is no competition meaning the revenue is encouraging.

Bloggers underestimate the power of consulting with readers. Consulting may reach as high as $40,000 this calendar year with the new tax laws in place. I handle consulting sessions Tuesday and Thursday only, except for tax season and wide spaces around holidays.

Traffic peaked at slightly over 130,000 pageviews per month last year leading up to the Plutus Awards. To my disappointment, traffic is now a hair below 70,000. (This is my own fault. I expected with a Plutus Award I could focus on writing instead to promoting. Didn’t work any better than it does in my tax practice.)

There are plenty of failures along the way as I reached for my writing goals. Each failure was a corpse I could pile higher so I could climb to my goal. I turned the corner on traffic as I’m now focusing on my ego blog as a business.

More failures will bump along as I strive for new heights. It is never easy! Each failure is really just a lesson on the road to success. Remembering this makes it a whole lot easier.




One More Goal

When I entered the demographic as a blogger I received some harassment. Early retirement (ER) is MMM’s shtick; not mine. Many people found this blog through Mr. Money Mustache. My readers only mesh slightly with the ER movement. The ER folks are still good people and welcome to drop in.

People started to remind me I had “one more year-itis”. Well, I do. And I have a feeling it will not end until they plant me six feet below sea level. I enjoy what I do even when I complain. Remember that.

Taking on too much work leads to burnout. Elon Musk is a business hero of mine who has recently concerned me. A recent investor conference call was handled in what I considered a very unprofessional manner (investors have a right to know how they’re investment is being managed). We see some Twitter issues and Musk doesn’t have Teflon skin like President Trump. Part of Musk’s issue, I think, is his heavy workload. Tesla is a huge time demand. Musk is building cutting edge products nobody else is either thinking of or feels is impossible. Then Musk does it. He also admits to fatigue. Reports say he has slept on the factory floor to achieve numbers; no time for driving to work or other distractions when in crisis mode.

You win at life if you don't run the race. RUN THE RACE! You can do anything you set your mind too long enough. Your financial goals are within reach. #goals #winning #earlyretirementAt a fraction of the workload Musk carries, my back shows a serious strain. I look like a mule carrying a heavy weight in a Bugs Bunny cartoon. Tax season is the worst. I cut back from publishing three times a week to two. I think it helps with quality. Quantity should be a secondary consideration only.

Tax season stress doesn’t end instantly and clients sometimes think I have nothing to do all day April 16th so tax season really stretches into June before things really slow. I was so stressed I threatened a countdown clock and wrote (published) about it. I also published a countdown clock on the Where Am I page. When the number on the bottom of the page hits zero I will have published 500 posts here. (I checked statistics last week and can proudly proclaim this blog has 713,000 words already.) Then I walk away.

Except, I probably won’t.

By publishing a countdown clock, I reminded myself of the Warren Buffett 20 slot rule. You only get so many chances to tell a story so you better tell it right the first time. (I’m batting around .500 which is awesome in baseball; not so awesome when writing.) The countdown clock reminds me a day will come when the typewriter stops clicking. It focused my attention and got me thinking about life without writing. It wasn’t a pretty fantasy.

The Plutus Awards published an interview with me earlier this spring. I let the Plutus Awards know about the countdown clock and that I probably wasn’t headed for the sunset.

 

I tell the story of my writing life for a reason. There were plenty of painful moments when I didn’t know what to do. I was lost and spent hours thinking about how I would learn to communicate effectively in the written form. Even when I met success I felt pain. As soon as I reached a goal I made another bigger goal. I get nominated for a Plutus; I want to win a Plutus. I get 130,000 month of pageviews; I want 200,000 pageviews. This 70,000 pageview stuff ticks me off.

Success is defined in different ways. My marriage has different goals with less stressful demands. Career is what causes me to push. I want it all when “all” isn’t possible.

Retirement goals and financial independence are important issues. If you’re rich you don’t quit because the “rich” mindset never quits. Before you amass your first dollar, you are already rich if your mindset is right. Your body just has to wait for the money to catch up.

That is why I changed the title of this post. Winning the game of life is the most important part of life. Money plays a modest role. The quality of your life, your dreams, career, goals, family, health and joy, are what count. “Rich” means you’re always looking for the next challenge when a task is complete because you know that it is what brings meaning to life. Rich people never settle for mediocre.

But rich people also know mediocre days are the price you pay to get to the top.

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!



Jordan Peterson, Identity Politics, MGTOWs and the Rising Hate of Women

The personal finance killers: divorce, child support, alimony. #familyfinance #personalfinance #divorce #MGTOW #jordanpetersonYou were probably exposed to Jordan Peterson the same way I was: a viral YouTube video. Prior to Google determining my unknown interest in such a “Gotcha!” moment I was preaching some of the same material as it pertained to financial matters.

Once a taste was received I was primed for more material. Peterson has an addicting style of speaking and teaching. He thinks before speaking—something an unnamed blogger still needs to work on. The amount of material to watch is extensive. There is less reading material, but Peterson’s work is powerful and has the tendency to consume a day in thought.

Peterson is misunderstood, many times intentionally. YouTube thinks I might like other similar topics regarding identity politics and feminist bashing. I don’t. By the time my research expanded to MGTOWs (men going their own way), incels (involuntary celibates) and other narrowly defined groups, I grew more and more disturbed.

Most disturbing of all was that I agreed on some issues of these narrowly focused groups while categorically disagreeing with their mentality and overall philosophy. From what I gather, they harbor an intense hated or dislike for women. The misogyny takes the breath away. And the movements seem to keep growing. This is a serious societal problem.

It’s also a massive financial minefield. If you don’t think divorce, child support and alimony aren’t serious financial issues you need to review the world around you. Divorce can take half or more of your hard earned net worth. Child support payments are not deductible and divorces finalized after 2018 will find alimony payments non-deductible too. Men pay almost all child support and alimony payments and men also face a greater risk of losing their children in divorce. With these issues I agree. However, the MGTOW solution of a life devoid of intimacy is no solution at all. Treating women like a piece of meat doesn’t deserve any respect. Period.

The problems have grown acute in Western society. The line between intimacy and rape is blurred by the newscasts. (I am against all forms of violence against women. Don’t read this as a reluctance to protect women.) Men risk loss of freedom, property and future income when interpersonal relationships are involved. Roles have been reversed. Until the last 50 years or so, child birth was a serious risk. Women on average lived shorter lives than men due to death during child birth. Modern medicine has reduced this risk to background noise.

At the same time medicine reduced risk to pregnant women another development occurred: birth control. Birth control was sought after for eons. Ancient Romans and Greeks went to great lengths to enjoy sex and avoid pregnancy. By the 1960s medicine provided a reliable and safe way for women to take control of their reproductive choices.

Prior to the 1960s men had less risk. A man could deny involvement or disappear leaving the woman with a serious problem. Society judged women who had children outside marriage. Roles have reversed. DNA testing easily identifies the father of the child and society honors the strength of the single mother. Women have greater control over their reproductive choices and the medical risks of child birth no longer cause serious concerns.

Society has decided to reverse the risks and the consequences are growing. The stable structure of the family and marriage developed over vast periods of human history and worked extraordinarily well is being abandoned. The old system reduced violence (under the one man, one woman policy of marriage, it meant most men had female opportunity thus reducing violent tendencies), fostered community and provided a stable child rearing environment. But all wasn’t well. In many cultures men were deemed to own his wife and children. Women’s rights were muted, to say the least. Something had to change and it did.




Advice for Men, I Mean Women

A year before I ever heard of Jordan Peterson I was in Gainesville, Florida attending a small early retirement conference. I offered consulting sessions with all proceeds going to charity. (The National Special Olympics received the funds.) One of my consulting sessions was with a young female doctor. She amassed a sizable (seven figures) liquid net worth and was considering an interpersonal relationship, i.e. marriage. I quizzed her on her fiancé and quickly realized the advice she needed to hear: get a prenuptial agreement. Shortly afterwards I published on the topic.

She didn’t feel comfortable with my advice, but I convinced her of the importance of a prenuptial agreement in her situation. After her consulting session she joined the group back at the campfire while I started my next session.

The next morning I realized I caused a huge commotion. The lady I consulted took my advice to the group for their opinion. Opinions were strong on both sides, but it was eventually decided I was right. Whew!

I don’t want to make light of this important subject. Men with money are usually aware of gold diggers. Women who accumulate serious net worth aren’t always as cognizant of the male gold-diggers lurking about.

People reading this tend to be from the FIRE community. With a higher savings rate and net worth, these people need to take extra precautions. Not all women are gold diggers, but if you are a man with money, the gold diggers will be attracted to you. The opposite is just as true! Not all men are gold diggers, but women with money will attract the gold diggers.




Marriage Contract

Marriage is a legal contract between two people. You even go to the court house to get your document. There is nothing unromantic or disturbing about getting a marriage license so why are people so afraid, so offended by the requirement of a prenuptial agreement? Marriage is a wonderful institution. There should be societal and personal rules involved preserving the contract between the two parties.

Men avoid marriage today like the plague. The reasons are clear. Marriage is expensive and the “wife’s” day. Men come along for the ride. (This isn’t completely true, but women generally dictate how the wedding will be conducted.) This is NOT a bad thing! Historically marriage symbolized a bonding with intentions of bringing children into the world and as we’ve noted earlier, this was a risky proposition for the female. Also, marriage was the moment when the woman left her family to live with her husband. It was a major life event for the bride. Things have changed in recent times. Cohabiting prior to marriage is common. Child bearing has fewer medical risks.

Identity politics is killing your retirement. #retirementplanning #divorce #identitypolitics #familyvalues #retirement #jordanpetersonMen view marriage differently. They now have an obligation. They have a wife to support. Oh, wait. That was historically. Today women freely enter the work force (a good thing) and have a large range of opportunities (another good thing). In the past the man provided shelter and food for the family. A man knew his worth. He provided and found satisfaction in knowing he was a good head of the household. Today men don’t find that satisfaction as much. The wife can earn and support herself just fine with or without him. It’s no longer a need, but a convenience to keep the man around.

This sounds horrible when I say it the way I did. MGTOWs make great fanfare over this. “Women,” they say, “no longer respect a man’s role. Women take advantage of men and use men.” I think this is a massive oversimplification of the facts.

I’ve been married for over 30 years (to the same woman). While Mrs. Accountant could find a job and support herself, there is something more satisfying to all parties involved to work as equals. Mrs. A doesn’t have to worry about the breadwinner getting sick or dying; serious issues in times past. She can enter into contracts should I become incapacitated or unavailable. I don’t own her! We are a team!

The rules have changed, no doubt. Identity politics have taken over. We can get mad, pointing to people with different political views. That doesn’t help. It’s not their fault; yours either. Society has changed radically and we are still searching for our sea legs. Birth control gave women control of their reproduction. This is arguably one of the most, if not the most, radical event in human history. It upset several hundred thousand years of human societal evolution.

All is not lost; at least I don’t believe it is. My relationship with my wife is powerful and growing. I can’t imagine life without her. She is not one of the rare unicorns MGTOWs talk about. She is a normal woman who had the great misfortune of being noticed by a crazy accountant. Our secret is we talk, respect each other’s opinions and space, communicate constantly our thoughts and share quality intimate time together. In short, we are growing old together, experiencing all the joys of life with our best friend, each other. There is no room for politics of any kind and certainly no room for hating women for whatever imagined reason.

Still, the problems remain. Child support and alimony hit men disproportionately hard. Divorce is a financial body blow sure to wound the strongest of us. Women file for around 70% of divorces. Men are disproportionately separated from their children. The new world order makes this possible and seems to many men punitive for the crime of loving a woman.

It doesn’t have to be this way. We can wait for society to change—don’t hold your breath—or you can take positive steps to create equality in the relationship where all parties win, especially the children.

Romance is alive and well!




Solutions to the Intractable Problems

Jordan Peterson tells us about what makes us tick; what men women are attracted to. He rarely talks about the financial issues involved.

MGTOWs and similar designations men use to identify themselves are not helping. Quitting society is an unworkable solution. Men, as much as women, need intimacy. In some ways I’m more passionate than Mrs. Accountant. She has the romance parts locked, but I love snuggling in. Yes, guys need (NEED!) touch, too. This is more than sex. Sex is a fun guttural act designed by nature to be really fun so little humans can be produced. Nature also created us to respond positively to closeness and touch; something that can be engaged in for much longer periods of times. A hug should never be a crime because it is such a basic need of humanity. That is why you must hug your significant other and kids every day. It’s the most powerful act I can think of. I personally give my parents (yes, even Dad Accountant) a hug every time I see them. The day will come soon when that opportunity will be lost forever. I’m not wasting a single opportunity.

The rise of misogyny. Stop hating women. MGTOWs. #incel #MGTOW #interpersonalrelationships #familyandchildren #jordanpetersonMen must stop hating women! Misogyny is a vulgar display. Women are different from us, guys. I know. Different is good. (Actually, really, really good.) Women have a different worldview and biological history. The birth control pill doesn’t change millennia of evolution. It also takes time for society to adjust.

We can’t force society to change any faster. We can’t stop the craziness we see in the newsfeeds. The courts will continue to express bias against the men in child support and divorce proceedings.

The fear is real, guys. I understand. I’ve consulted with more clients on this than I care to count. If a guy cheats on his wife he ends up in divorce court and gets what he deserves. If the wife cheats, the guy ends up in divorce court and pays his wife (rewarding her) for her infidelity. Yes, I hear it all the time, but it doesn’t have to be this way. There is a better option.

I alluded to the solution about. Deciding to have children is different today. I hope we can agree on that much by now. Women (and men) have great control over reproductive choices which removes a lot of uncertainty in interpersonal relationships. This is a good thing. And as long as children can now be planned, doesn’t it make sense to lay down ground rules in advance? Deciding to have children is something men and women can both enjoy. Children are hard to raise while still such a joy to have. They are an endless blessing. If a prenuptial agreement can solve many problems before they occur, a child agreement—a legal and binding document—can protect both parents. Men (and women) no longer need to fear disenfranchisement from his children unless he poses harm to them.

A prenup might sound unromantic, but an agreement for having a child shouldn’t carry such weight. The act of creating the agreement will expose differences in child rearing ideology. Best to iron out those differences before a child is involved. Some of this can be handled in a prenuptial agreement. Each state is different so consult an attorney experienced in such matters.

Marriage is a contract and always has been. There is nothing wrong—and a lot right—with planning your marriage more than you plan the wedding. Remember, the wedding is a day; the marriage is a lifetime. A prenuptial agreement solves a lot of the problems MGTOWs complain about. A child agreement solves issues surrounding kids you have. No more blaming and hating women! My wife and daughters are awesome people. Never forget that.

Guys, women love a man with a plan. Coming to a relationship with an action plan is powerful. Women are still biologically wired to want a man who will support them. They tend to marry up. This is natural and normal due to historical standards. A plan can make you more desirable to women. And you have to put aside shyness and ask. If you see a woman you are interested in, ask her if she would like to join you for a cup of coffee. If she responds poorly you didn’t want to spend time with her anyway. There are lots of really good ladies out there. Really! Check out a Peterson video if you want to know and learn more of what women want.

Men, you should feel less stress about relationships! Not so long ago you carried a heavy burden. You worked the fields and mines (dangerous jobs) and if you got hurt or died your wife and children suffered horribly. Instead of the responsibility of carrying all the weight of supporting your family, you now have an equal, a partner. It’s better that way. Honest.

 

Note: If you haven’t read Jordan Peterson’s latest book you need to fix that ASAP. Normally I would say check it out at the library, but that isn’t good enough this time. Your copy of 12 Rules for Life: An Antidote to Chaos will be more worn than an evangelical’s Bible. You’ll refer to it that much.

 

Note: I understand this is a difficult and contentious topic. These are serious money issues people need to consider. Some of my personal opinions and biases developed over my lifetime I’m sure slipped in even though I tried hard to keep opinion out. Please use this as a starting point to think about the subject matter. I empathize with men dealing with the host of issues; I also empathize with women trying to make their way in this world. Both genders are working hard to figure it out. No vicious attacks in the comments. You can disagree with me, but treat other commentators with respect. Thank you.

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!



Should We Run Our Marriage Like a Business?

#marriage #shouldimarry #businessplanning #personalfinance #love #interpersonalrelationshipsTwo and a half years ago when I started this blog I had a vision for what it would become. The original primary goal was to encourage readers to slide a chair around behind my desk and view the world from my side of the desk. I’ve always found the world interesting from my perch. Things I would never know or experience were front and center due to my position in the world. It all fascinated me.

Before long I expanded my vision. I wanted this blog to be a sort of personal journal to my children. When I’m gone (and hopefully while I’m still here) my girls can reference the thoughts of their dad. Some things are modified to protect the guilty (as I like to say), but the flavor is all there. Who and what I am is on these pages. This is the most real me I’ve ever presented. It took decades of writing, learning and growing to reach the point where I was comfortable exposing myself to the world. (Please disregard the indecent exposure.)

Tax professionals don’t always see the world as I do. My practice is small so I serve a discreet clientele. I actually sit with my clients periodically when things get real. I know about marriages on the rocks before the world at large. I consult with clients with a medical death sentence before even their family knows. Sometimes I even know before their spouse does. While it is interesting, it is never easy advising in these situations. How do you tell a client their child needs to be institutionalized to protect parent and child? How do you tell a wife she should or shouldn’t divorce her husband? How do you explain to a client she must tell her husband about the massive gambling losses she suffered and that they are bankrupt?

If I refuse to help it only gets worse. The client came to me and closed the door before she sat down because it is serious. Problems raising the kids and marriage issues are common. Financial and tax issues are front and center because finances (and sometimes taxes) are affected by their situation and any response they consider. I’m always uncomfortable advising clients on how to deal with their children; I’m nervous when advising a woman she should divorce her husband and report the abuse to the police. It breaks my heart when the patrol car is out front of the office as I help a client deal with a criminal issue.

When my world was confined mostly to the local market is one thing. Now this blog has spread my reach to the entire world and certainly the entire U.S. One of these difficult questions has come as a call from the dark and I’m scared. I’m scared no matter what I do people will be hurt. Even ignoring the echo from the abyss has consequences.




Voice From Over the Transom

These types of questions cropped up in consulting sessions over the last few years. I’ve consulted (and/or prepared taxes for) people on every continent, except Antarctica. (Anyone at the Amundsen-Scott South Pole Station need to talk to a friendly accountant to break up the monotony of the endless night? I’ll donate a free hour just for the opportunity to say I served every continent on the planet.)  The level of personal questions generally is lower than from local clients because blog clients on the other side of the landmass are at a different place (metaphorically speaking). Until now.

About a dozen emails grace my inbox per day during the summer from readers (more around and during tax season). Some are congratulatory, showing appreciation and require little or no response. Some I can’t answer easily or right away so they linger in my inbox until I decide how to respond or it just gets too old and I let it pass. (I hate it when I do that and I do it too often.)

Then there are the emails I must answer and answer now. Sometimes readers contact me (clients, too) because it is a desperate situation. No response is a response and a bad one. The email I’m about to share approaches this level.

The email literally had a headline. I used it as the title of this post. I wanted to tweak it, but decided against it. Here is the email:

Dear Wealthy Accountant,
I found out about you listening to the ChooseFI series on YouTube. I had a question about my situation and was wondering if you had any advice. My partner and I are not married, but we live together, have a 5 year old and are expecting our second child. My SO (significant other) is self-employed as an artist and averages over 100k/annually and pays considerable taxes for it. My question is what is our best tactic for taxation, would we be better off getting married (even with me going back to school in the future) or should we keep our current situation and my SO “hire” me as an employee to help him with some administrative chores. I plan on staying home with our baby-on-the-way for 3-4 years. Thoughts?

At first I was going to send it to my assistant to recommend a consulting session where I get paid. The answers this woman was asking required more than a curt response and I felt there were serious personal risks to her if she got bad advice. Then I felt bad asking her for payment for such a personal issue.

I received her email in the early evening and decided to sleep on it before responding. The next morning I emailed back I wanted to write a blog post on her email, name excluded. She emailed agreement.

The reason for a full-blown post is because her question has similarities to many others I get. At first glance it seems she is asking tax questions. But the real question is revealed in her headline used as the title of this post. Her real question is: Should I marry the father of my children?

This is where I must weigh my words carefully. A living, breathing human being will listen to my words and take them seriously. This is the life of a man and woman. Two children are involved! No matter what I do will affect her decision.

I have no choice. The voice from the dark has become a plea. I cannot turn my back. I am honor and duty-bound to respond. There will be a price to an unnamed accountant as well.




The Easy Part

There is an easy and hard part to the request. I’ll do the easy part first because, well, it’s easier and this post is making me emotional. Besides, I tend to talk taxes when I’m avoiding the real issue.

The readers SO is an artist earning over $100,000 annually. I read that to mean somewhere between $100,000 and $150,000.

Our kind reader asks about taxes, but prefaces that with getting married. We’ll deal with marriage later.

According to the email, our reader’s SO is self-employed. YIKES! Of course he’s getting killed in taxes. As a sole proprietor, your SO is paying more tax than in any other part of the tax code. I can’t even cheat and trick my computer into getting his tax bill higher. Here is what I want you to do. (I’m talking to my email reader now. Please grab a chair, slide it behind my desk and observe.)

Without seeing the actual tax return, the probability is your SO should organize as an LLC and elect to be treated as an S corp. (Call my office if you want me to help you set this up.) This blog’s birth came about when I gave Mr. Money Mustache the same advice and I wrote about it here.

You never mentioned which state you come from. Each state has its own department handling LLCs and incorporations. There are fees involved. Some states (Texas, California, Delaware come to mind) have very high fees. Here is a little trick to save money. You don’t have to organize your LLC in your home state or where you live!

If the home state has reasonable fees you can have an attorney do the paperwork or set it up yourself. You act as your own registered agent. (LLCs and corporations need a registered agent to manage their filings. You must live in the state to manage the filings such as annual reports.)

If you reside in one of the high fee states, I have a solution. Wisconsin, where your favorite accountant resides, isn’t a high fee state! Since my practice is in Wisconsin I can act as your registered agent. After the initial organization setup costs, Wisconsin charges $25 annually, plus a $1 processing fee. If you use other online services to setup your LLC they automatically act as your registered agent. It’s where they make most of their money. They also charge $200 and up annually. Most are now over $300 per year, plus state fees. I’m such a nice man because my office charges $109 (at this time) and that includes the $26 Wisconsin wants.

There are two benefits if this appeals to you. First, you do NOT have to file a Wisconsin tax return; you’re not doing business here (unless you are from Wisconsin and I don’t know it). Second, a registered agent is where legal documents get delivered. If your SO gets sued, process service takes place at my office if the attorney follows the rules. This is important. If you are not available and the process server can’t deliver paperwork it is sent to the state. You could have a court date and miss it because you were unaware. You would lose by default and could be liable for the damages awarded in the suit. As registered agent, my office is open all normal business hours. My heart doesn’t flutter when the sheriff delivers paperwork, either. I only ask, “Who’s this one for?” Then I get my team on the horn and speed-dial you until we make contact. We also email and use other means to reach you. There are procedures to make sure the court is aware if you haven’t been made alerted to the suit.




You Are an Entity

Either my office or a local accountant can help you elect to treat your LLC as an S corp. This is important. As an S corp your SO gets a reasonable wage and the rest flows to his personal return without FICA/self-employment tax. This is a meaningful tax savings.

If he is not already doing so (and qualifies), an office in the home deduction is possible. Under new tax rules this can be more valuable than ever before with the standard deduction higher now. Your facts and circumstances will dictate.

Most important of all, he can super charge his retirement savings. The options are endless. This blog (and others) discuss a variety of retirement plan choices. If you tell me what your goals are and more details on your situation, I’ll tell you what you want. Once again, facts and circumstances prevail. And don’t believe what most blogs publish. You can pack away over $300,000 per year in a deductible retirement account in certain cases (it depends on your age (the older you are the more you can deduct) and profit level). You tell me how much you want socked away in a tax sheltered retirement plan and I’ll share the vehicle you’ll drive to the Vanguard index fund. Okay?

The New Employee

You can be an employee of your SO or the LLC he sets up. He can provide you health care benefits (usually) and deduct the premiums. However, if he is a sole proprietor, his premiums are deductible (usually) as an adjustment to income on his personal return. This means he still pays SE tax on the premiums. We used to use Section 105 to work around this issue for married people. I don’t see 105s much anymore as there are so many easier alternative options.

An LLC electing as an S corp avoids this issue, as the entity claims the deduction. (Tax professionals reading this: I’m keeping this simple for my kind reader’s sake. My statement is 98.27845363% accurate. We don’t have time in this post to discuss why my statement isn’t 100% true.)  If handled correctly, the health insurance premiums are reflected on the W-2. Technically there is a FICA tax issue, but mitigated by adjusting payroll to reflect a lower reasonable wage based on a lower level of profits due to the premium deduction by the entity.

This gets complicated; I understand. I’m glossing this over and tax pros are rolling their eyes because I’m telling a half truth. But from your viewpoint, it will look pretty much like I outline it. And my goal is to give non-tax professionals a reasonable way to view the options they can understand without years of tax experience.

In short, you can (and if you provide services for your SO’s business) and should be a W-2 employee. Even a token wage of say $15,000 allows you health benefits paid for and deductible by the business, plus the opportunity to start building your retirement account. Whether he remains a sole prop or decides to go the LLC route, there is a benefit to you and your SO (most likely) for doing so. Marriage also plays a role so we will address that next.




So, Should We Run Our Marriage Like a Business?

In short: NO!!!

What you and your SO have is not a business; you have an interpersonal relationship! You have a business relationship with a prostitute, not a loving SO. Can I be more blunt?

Mrs. Accountant and I have a nurturing 30+ year marriage. Mrs. A works part-time for my business. She is an employee of the entity! Yes. But my relationship with Mrs. A is not a business relationship!

Maybe I’m reading your email wrong. Tax issues do play a part in the decision-making process of living together, marriage and having children. Reading between the lines, I think your income is really low. As a result, there is probably a tax advantage to getting married.

But you don’t get married to save on taxes!

Even going back to school will probably be a better tax deal if you are married, not that that should be the reason to marry.

Please, come with me. (I’m putting my arm around your shoulder and guiding you to a chair where we can talk face-to-face without a desk between us. I lean in close and talk in a low, calm voice as a father does.) I have two young adult daughters. As their dad I tell them to think clearly when planning a life with someone. Living together is as serious a matter as marriage.

You have a child together and another on the way. (Congratulations!) You have a beautiful and awesome responsibility. If you are in love and have talked adequately about a life together as husband and wife, and worked out any issues and still find you want a life together, then have that life. It ends soon enough. Jordan Peterson says the meaning of life is to end needless suffering. Loneliness is a form of suffering. You have it in your grasp to end that. Your ships met in the night and both of you decided to sail together. With two children you already know the right thing to do.

Marriage has massive risks, especially for the male. But you already have children! And there are incredible benefits for both parties, as well. If you are ready, do what your heart tells you. Your mind should have ironed out all the issues by talking honestly together. If you are happy as you are, then don’t change anything. If marriage is both your callings, then do that.

Please, for the love of God, don’t get married (or refrain from getting married) due to taxes.

If you need anything else, you have my email. My door is always open to discuss this with all the personal details.

 

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!

 



Success is the Best Revenge

It happens to everyone: a business partner embezzles funds destroying the company and leaving you with the mess, an ex betrays your trust, a co-worker or supervisor harasses you. It is easy to get angry and fire from the hip. But reaction only makes it worse. To make matters even worse, the person who slighted you gets away clean while your response is dealt with harshly. There is something true to the adage: the second one to throw a punch gets caught.

There is a better way that doesn’t harm any party involved: success. Success is said to be the best form of revenge, but it only works if it isn’t done for traditional revenge reasons.

The German philosopher Friedrich Nietzsche said if your life has a why you can bear almost any how. This is a fancy way of saying your life needs purpose to strive for the important goals.

Money will drive you if your finances are in desperate straits. Once the basics are covered new motivations are needed to keep striving for goals. Sheer love of the process drives some, but this is the minority. The vast multitudes need something more, a prod to keep them moving forward.




Dreamscape

Failure happens. All your hard work and planning sometimes ends up in flames. Your financial dreams are tested in these dark times and to make it worse, people delight in your pain, some more than others. A certain crowd enjoys watching people suffer. Sometimes it is a crowd specific to you.

People are jealous of other people’s success. The people closest to you can be the worst, secretly delighting in your misfortune. Building financial success is one thing. As the market claws higher, over-spenders of the world secretly pray for the day when the market collapses or at least your investments take a serious haircut. A jealous brother or friend despises you because you had the discipline to spend less than you earn and invest the excess in index funds.

An ex is the worst of all. In their mind you don’t deserve success or any pleasure after your relationship with them ends. There is something decidedly psychopathic about such attitudes. When you move on with your life and start dating again she takes great pleasure in each relationship that doesn’t work out. It’s as if their worth in life is tied to your failures.

Failure happens more than success so the haters have plenty to gloat on. Your financial investments will have plenty of down days, some remarkably so. Staying the course means time will be kind to you so you get more revenge than your nemesis.

All these feelings, unfortunately, are counterproductive. Revenge is the acid which destroys the vessel which holds it. We all attract haters as we grow. People will do incredibly horrific things to tear you down. The higher you climb the more excuses these people have to hate you for your success. They will work tirelessly to harm you.




Perspective

This is where you need perspective. While people may hate you for your success and feel you don’t deserve it (who does?), the truly successful know the truth of human nature. Jordan B. Peterson wrote in his book 12 Rules for Life: An Antidote to Chaos, “Most individuals are dealing with one or more serious health problems while going productively and uncomplainingly about their business.” (I recommend purchase of Peterson’s book. Read it, mark it up and then use it as a constant reference manual on living well.)

It is so easy to sink to the level of those who wish you harm. Striking back is a reflexive response. Mature individuals, however, know everyone is carrying a heavy burden. As Peterson noted, the majority of people are fighting a medical issue or a close family member or friend is. When you think about it that way it is easier to forgive a past transgression.

Forgive does not mean forget. If a friend betrays your trust you can respect the difficulties they are experiencing in their life. But you don’t have to trust them! This is a personal finance blog so we’ll use a financial example. If a friend steals from you or doesn’t repay money you borrowed him you don’t have to keep giving them more. That isn’t what friends do; that is how people enable addicts and other people in serious need to change in their life.

Hating a cheating ex is natural. The bitter feelings need to come out. But get them out quickly or they turn into a cancer harming you! Yes, you have been betrayed. Don’t allow the betrayer to continue harming you!




Motivation

Past bad experiences can be a powerful motivation tool. Anger and bitterness will eventually destroy you. The “I’ll show them” mentality also wears you out in the end. There is a better way to channel this energy.

Revenge is usually not the real motivation. You are hurt over a betrayal and you want to show “them” what they missed. Using success as a form of revenge is really about showing the world how valuable you are. The people who hurt you in the past are not allowed near you and your newfound success.

Revenge over a prior slight is a long-term steady emotion. Deep down it isn’t about revenge; it’s about acceptance. You are projecting your success as a way to let everyone around you know you are valuable. Every action is motivated discovery. Am I really able to do this? The person who slighted you may not even know you are growing and winning. It doesn’t matter. The person you are really trying to impress is yourself.

Failure brings out the worst in people. Failure is a natural and normal part of the success process.

Elon Musk is struggling with production at Tesla. His efforts to build enough cars to turn his company cash flow positive are necessary if he wants his company to survive. He has tweeted several times in the past about his detractors. He warned people selling him short they will learn a valuable lesson soon. Musk isn’t technically out for revenge, though he is working to prove all the naysayers wrong. The motivation is so powerful he is reported to sleep on the factory floor so he has as many waking hours as possible available to apply toward his goals.

Initial thoughts of revenge are counterproductive. Your first reaction is to strike out at the person hurting you. This will cause you more trouble than anyone else. After the initial sting, the steady state of numbness can go one of two ways: you can fold your tent and withdraw or you can focus on the goal. Quitting is an unfortunate reaction. Stepping back and thinking about what you really want and how to go about getting it is far more productive.




Benefits of Success as Revenge

People visiting this blog generally are looking for ideas to lower their taxes, build wealth, start a business or insights on retirement, early or otherwise. All these things are forms of success. Efforts to create something suffer inevitable setbacks. Many slights are only perceived. We think people are laughing at us or rebuking us due to our misfortune. This isn’t always the case.

A parent may show disappointment when an adult child gets arrested for DWI. The instinct is to withdraw. Burying your instinct is important. To move forward, to grow, you need to use your mistake as a motivator for change. You parents aren’t out to get you, nor do they derive pleasure from your failure. They want what is best for you so they show disappointment. And they can’t do it for you. Your anger isn’t really directed at them; it’s directed at you.

Lottery winners learn fast how many friends and family members they have. When the money runs out they find out how many true friends they have. The same applies to all of us to a lesser degree. When you bust your tail at a business or investing for early retirement or world travel plenty of people will dissuade you. Your friends are limited as you are in the building process. Not many people want to stick around. They’re afraid you might put them to work.

As the goal approaches the number of friends increases. Now you have money; now you are successful. The fun part is celebrating a victory and crowds of friends show up for that. Most you never met before in your life. Such is the nature of fair weather friends.

The same applies in the blogosphere. Everyone wants to know the bloggers slamming it. The guy eking out 72 pageviews isn’t fun to be around. It’s all work, research, and discovery. Success isn’t guaranteed. The fun part is when playtime is available. It takes courage to continue. Thoughts of revenge rarely play a key role. But thoughts of showing people in your sphere of influence you have the right stuff does.

One of the most disgusting displays of fair weather friend behavior involves interpersonal relationships. Staring and building a business takes long hours of hard work and sacrifice. Money is tight; every penny is funneled into the project. Relationships are destroyed sometimes. All parties may not be as committed to the project as you. Over my three and a half decades of practice I’ve seem divorces over this kind of thing. What I find disgusting is when success finally arrives the person who left frequently finds their old partner more attractive then. Rekindling such a relationship rarely works because it is based on one party being exceptionally shallow.

When in the trenches, look around you. When you are sleeping on the factory floor giving every ounce of energy to bring an idea to life, stop for a moment to take an inventory of the people with you. One, maybe two, of these people are true friends. When things turn the corner and success is in full bloom it will be more difficult to determine who your friends are as everyone wants to be your friend.

Enemies will be obvious. They’re the ones constantly gloating at every minor failure. They play an important—if not ignorant—role, too. They are a constant source of motivation to climb to the next level. Not to show them, but to remind you of what you are capable of.

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!