by John | Jul 11, 2016 | 1-Growth, General, Investing
When last I played musical chairs with other adults, we were nowhere near as nonchalant as these kids. We slithered from chair to chair with our butts down as long as possible. We wanted to be in mid-air only for the briefest period of time. So where do you want your butt to be when your personal financial music stops?
I was listening to the podcast of two of my favorite financial commentators several weeks ago when they made an offhand comment that slowly painted a picture in my mind.
They said something about there being two types of investors in the world. Some people buy assets to produce money so that they can buy more assets. Others amass money so they can buy assets that they hope will produce more money.
As I thought about the comment, it struck me that they were describing a musical chairs kind of situation. And I formulated a question: As you approach investing, do you think of money as being the “chair” . . . or cash-flowing assets as being the “chair”? (more…)
by John | Jul 9, 2016 | 1-Growth, General, Investing
Where I’d like to see our company’s 401(k) go.
I used to think our company’s 401(k) program was a great deal . . . for our employees as well as our company. Now I’m convinced it is a raw deal. Especially for our employees. (Though I have serious reservations for the company as well. But that’s for another time.)
Sadly, so far, I’ve been unable to convince the management team to get something better. And, I’m afraid, too many of our employees are enamored of the program as well. (I’ve been told: “If you didn’t have a 401(k) plan, I wouldn’t have come.” —And this from a financial person who ought to know better!)
So let me tell you what I have learned in the last couple of years that has turned me so strongly against the standard, government-approved, defined contribution plans. . . . (more…)
by John | Jul 8, 2016 | Cash Management, General, Success
I don’t know when I first bumped into the concept. Probably sometime in my 30s. I called it “The Party Tithe”: 10% of my income totally for fun.
I got it from Deuteronomy 14:22-26 in the Bible. (more…)
by John | Jul 6, 2016 | General, Success
A vintage 1994 ad from Scope Books Ltd. that appeared in The Times of London.
It must have been sometime in 1989 or 1990. I saw an ad at least somewhat similar to what I have reproduced above. And it grabbed my eye.
At the time, I had no money. But I had always been intrigued by “what else” is out there. (more…)
by John | Jul 5, 2016 | 1-Growth, 2-Income, General, Success
One of my advisors suggested I list the reasons why Sarita and I wanted to put money into the various investments we had already purchased or that we were thinking we wanted to buy. “Maybe create a matrix that indicates your purposes for each asset,” he suggested.
I followed his counsel and found the exercise helpful and eye-opening.
(more…)
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