Fear Holding You Back?

Of course it is. We hate losses more than we love gains. Worse are the unknowns. What will they say? Failure risks our status.

Starting something new requires us to be awkward and uncomfortable. Beginning requires multiple tries, fumbling and successful repetitions to learn. Mistakes will be made. Attempts will fail. 

Do you focus more on the short term than the longer term? To learn something you need to look forward to the after. What will success look like? More opportunities. More respect. More income?

Go start. Research. Ask friends or coworkers. Read books and articles. Watch YouTube. We will applaud your efforts now and when you succeed.

T. Boone Pickens Remembered

T. Boone Pickens Remembered

How many oilmen propose wind power? The late T. Boone Pickens did in 2007.  He sold his oil business, then opened BP Capital Management hedge funds at 68. Made his first billion at 70. Working with people, adjusting to changing markets, and charity mark his life.

Later in life he reported, “I have earned $4 billion, lost $2 billion and given $1 billion away.” In his 60+ year career T Boone Pickens had many successes, failures, and life’s comebacks.

T. Boone Pickens donated $11 million to the University of Texas Center for Brain Health in 2006. He was talked into having his brain scanned. His brain lite up like a man 30 years his junior. T. Boone was always more interested in being around sharp minds interested in what was new or changing.

Forbes has an article with T. Boone Pickens' Letter To The Class Of 2018. Let’s listen to his advice:

“A fool with a plan can beat a genius with no plan.” - His Father’s

“Keep focused. When you are hunting elephants, don’t get distracted chasing rabbits.”

“Don’t fall victim to what I call the ‘ready-aim-aim-aim-aim’ syndrome. You must be willing to fire.”

“Work hard. Come early, stay late.”

“Be the eternal optimist.”

“The higher the monkey climbs a tree, the more you can see his ass.” - Be confident, yet modest.

After describing his experiences and “Booneisms” he encourages us, “Now go get ‘em!”

https://www.forbes.com/sites/tboonepickens/2018/05/11/ninety-years-of-lessons-learned-t-boone-pickens-letter-to-the-class-of-2018/#3d0b57b3e3c6

Your Wealthy Future

Creating Wealth is a decades long affair. Rarely happens overnight and a quick success can backfire.

A few people win lotto. Instant riches. But a few years later you find former winners in bankruptcy court. They did not know how to keep or invest money. Only how to spend it.

Basics Matter

Spend less than you bring home. 

Save for gifts, vacations, unexpected repairs and layoffs.

Pay off credit cards every month. Losing 18+% interest hurts.

Sign up for your 401K and take the company match minimum. Saving tax deferred your taxes go down more than take home pay.

Have insurance - auto, medical, long term care, renters or homeowners, plus a personal liability policy. Not having insurance can bankrupt you.

Attitude

Fear of Missing Out cause people to pay too much, buy luxuries or take expensive vacations. No one needs a $50,000 wedding. The debt incurred will hurt your relationship.

Diversify your investments. Nobody knows what stocks or bonds will do next. Everyone makes mistakes and have setbacks. Recessions and recoveries happen. Use ETFs - roughly 35% stocks, 55% bonds and 10% precious metals & REITs. 

Drive an uncool car. Cars lose so much value so quickly. Prefer 3-6 year old cars and paying cash. My investment advisor has only owned 4 Toyotas.

Investigate and talk with experienced people before buying. FOMO leads to over paying. Good investors don’t rush decisions, nor join in speculative manias. Bubbles burst and values return to earth quickly.

Real estate is not liquid. If you need to move selling costs are nearly 10%. Don’t buy too big of a home. Make sure the location fits your future plans, then check property is in good condition.

Time

First few years little accumulates in 401K or savings. After ~5 years the returns and dividends start adding up, plus debts are getting paid off. You can see where you are going.

Your mortgage use to be higher than rents. Ten years later less than renting a 2 bedroom apartment. Plus appreciation puts you are ahead.

Learn about subjects one at a time. No one knows everything. Admit you need to know more and ask what seem like foolish questions. If a salesperson is rushing your decision, sleep on it overnight and talk with advisors before buying. 

Your Future

Wealth and savings are desirable because they give you options. Paying for education, buying a home, or investing in a business or real estate. Your future self will be grateful for early sacrifices.

“These are my principles, and if you don’t like them … well, I’ve got others.” - Groucho Marx

Labor Day Reflections

Cloudy 57F morning run looks like the state of labor. Today will be clear and sunny holiday. Skilled and service workers have shortages. Salaries are slowly rising, if your work is in demand.

The future is not clear. Trade war with China affecting businesses and farmers. Slowing economies around the world. Italy and parts of Europe are in recession may slow our economy. Businesses are investing and hiring carefully, not in an expansion mode. The next five years may be challenging. However when has life ever not been challenging?

Today enjoy your holiday and the fruits of your labor. Tomorrow reflect on what your best skills are, what to learn that would help you, and who you can better serve. Research which skills pay more. Careers are built on learning and trying new things.