Media continually warns of impending inflation due to all the money printing by central banks around the world. The concern is real. If inflation spikes bonds will suffer massive loses and stocks will also suffer a painful decline. It is past time we look at the facts about inflation, how fast it rises, and what causes prices to spike.
Planning for retirement and when reviewing investments, inflation is a consideration. A review of historical inflation data will help in the decision-making process. By reviewing the historical data also clearly shows why inflation accelerates, including solutions to protect yourself. We will focus on inflation data in the U.S. I have reviewed price data for other countries and further back than the U.S. data. The conclusions are the same.Read More
Over the years I have used attorneys for a variety of needs. When I started a hedge fund the initial deposit was $25,000 and I was happy to pay it. We laugh at lawyer jokes and sometimes lawyers deserve the bad rap they get, but most of the time attorneys are a powerful part of your team preventing expensive problems before they happen. There is a reason why they are called counselors.
I encourage landlords and business owners to keep a relationship with an attorney. Buying and selling a property requires an attorney in my opinion and landlord/tenant issues can be reduced when a lawyer is consulted before actions are taken. There are also the surprise attorney needs. Who do you call when arrested for a DUI? (The first person who says Ghostbusters will be escorted out the door.) You don’t plan on certain events in life; they just land in your lap. Business owners and landlords have greater legal needs, but the average guy on the street finds himself in need of professional help a time or two in life as well (wills, probate, trusts, sale of property, et cetera).Read More
It’s hard to believe The Wealthy Accountant blog has six months under its belt. A year ago I started the process of creating this blog due to demand from followers of Mr. Money Mustache and speaking engagements I did involving Mustachians who knew I prepared Pete’s taxes. I knew I would get an initial kick in traffic when Pete, the man behind Mr. Money Mustache, mentioned The Wealthy Accountant.
I was unprepared for the response. Over 12,000 requests for information or help swamped my office. In the end I accepted only 200 new clients. We are still digging out. The Wealthy Accountant also received a nice traffic boost. Then it was up to me to keep it going. There are three stages to building a successful blog. I have written extensively online over the years, including several blogs. I currently write two flash fiction blogs and The Wealthy Accountant. The other two blogs have been around for a few years and get slightly more than 4 million pageviews per year. Not bad for fantasy flash fiction.Read More
A cold north wind raised goose bumps on my forearms. The year is 1982. I am 18 years old with no idea how I am going to live my life. My dreams are to own a business and make lots of money. You see, my family is very poor. Just money. That is the goal.
The wind gusts, reinforcing the goose flesh. The family farm finished bankruptcy only months before. My whole life plan was over; farming is no longer a viable job opportunity, the only thing I know. Our farm house was a shotgun shack. (A shotgun shack is a building where you could shoot it with a shotgun and the pellets would pass through without hitting the building. The old farm house had plenty of holes.) By some miracle we kept the house and a few acres of land from creditors; the rest was gone.
My dad’s life was over, too. All he knew was farming and now the farm was gone. He started a business repairing silo unloaders. The competition was tough. Life in the 1982 Rust Belt was no fun. Work was scarce; opportunities few. Unemployment reached toward 20% in our local community.Read More
From an early age I practiced picking out conversations from a crowd. It’s a neat little trick for a business owner to have. When you think I cannot hear you I may actually be listening in closely. Conversation in a crowded room takes skill with multiple conversations amped in volume so you can be heard over the cacophony. Picking out a select voice from across the room takes a lot of practice.Read More
Some of the largest companies in the world did not exist a few decades ago. Amazon, Apple, and Microsoft are only a few of the organizations with massive market share, Microsoft and Apple with humble beginnings in the 1970s and Amazon gaining life in the 1990s. Each is a leader in their industry. It is hard to imagine the world without the retailing genius of Jeff Bezos. The way we shop, work, play, invest, read, and think have all been radically altered in the last few years by companies with vision. And a secret weapon to put them in front and keep them there.Read More
I started this blog to share stories from my side of the desk. Doctors, attorneys, and accountants hear all the good stories. The insights I could provide my readers would prove valuable in their lives as they work toward financial independence. Reinventing the wheel is a poor use of time. Learning from the experiences of others is how we grow personally. Sharing stories and ideas were to help you, the reader. What I discovered is I am also learning a lot along the way.
Recent events highlight the difficulty business owner’s face on a regular basis. I see it with business clients all day long; now it was my turn. I screwed up bad. I handled an employee who went off the rails about as bad as any employer could. It is too easy to pass blame to my office manager or to assume the employee is bad. Sometimes the issues come out of the blue; this event festered for a month and a half before I took action—the wrong action.Read More
There should be no battle between good and bad debt. Debt is not good or bad in and of itself. Debt is a tool that can be used to simplify personal and business finances or can be used with reckless abandon. The internet is filled with advice on debt. In one corner is Dave Ramsey and his ilk claiming all debt is bad and should be avoided at all cost. In the other corner is Donald Trump and his “There is never too much debt” mantra. Only rarely is someone smart enough to discern between the two camps and provide appropriate advice on debt. Today your friendly Wealthy Accountant will be said smarty-pants.Read More