Wednesday, July 29, 2015

Discounting or The Non Recognition of Our 2nd Most Valuable Assets

Discounting or The Non Recognition of Our 2nd Most Valuable Assets

(Whatever it is), I’ll figure it out (regardless of the situation)
A Former Client

            We believe in the current currency (money)
            The money belief supersedes even God.
            Forget our words to the contrary – look at our actions.
            (Jesus saves; Moses invests)
            As a result, when younger, we engage in the ‘rat-e race of return’ in wealth accumulation and older (if the former rat-e rate isn’t habituated) the emphasis in our personal financial literature (an oxymoron itself) is on sustainable income to ‘not outlive our money.’ Of course the implication in the fear of outliving one’s money is dependence, taking shit, losing fu-ability. And so, we focus almost exclusively (and that’s a kind characterization) on distribution rules (for independence, not taking ca-ca, and fu-ability) to sustain income (fu-ability)  including but not exclusive  be it:

·         various systematic withdrawals
·         the 4% rules,
·          modified 4% rules,
·         buckets,
·         ladders,
·         annuitization,
·         matching,
·         glidepaths,
·         triple floor leverage rules
·         guardrail (1)
·         ratchet (2)

The emphasis in the wealth accumulation then transitioning to income sustainability cycle is on putting’ it in and takin’ it out (relative to money not as in our youthful escapades). The aforementioned is not to dispel the use and application of any particular method or combination thereof – but rather to recognize that they are but tools not idols not our saviors to bow down & genuflect to save one’s tool or tuchass for that matter.
(Yes, of course, I’ll concede, one thing money can’t buy is poverty as my own Dad would say.)
            At the same time while idolizing at the altar of money (the current currency), we minimize, discount, and ignore (other than lip service) our adaptability and resourcefulness especially those of a self proclaimed religious bent that ‘all is derivative’ (but not from government, Senator Warren or President Obama). Most ignore, whether religious or not, our own empirical experiences of past adaptation to challenges and give little credence in the future to again be able to ‘figure it out.’ Assertions of being old aside, wisdom beats energy despite the fact it’s 10% inspiration and 90% perspiration. Financially speaking, there is not only a sequence of rate of return to recognize but also a lifecycle sequence of consumption which is also inherently adaptable (though – using hyperbole giving up On Star™ on the  Cadillac or Showtime’s monthly cost as a sacrifice in reducing one’s $40,000/mo.spending suspends credibility).

            The aforementioned isn’t a question of money as one’s savior vs distribution method vs one’s resourcefulness and adaptability but context. Rather than elevating the recognition of our adaptability and resourcefulness we devalue ourselves only increasing fear and the pursuit of MORE which is never ENOUGH. (Result: too often ‘More, Better, Now has a habit of becoming Worse, Less, Later.)
            (Of course, if all else fails, there is always political legalized theft and coveting renamed and justified as entitlement, fairness, redistribution, social justice and or other assertions to mask legalized robbery but that means prostrating and  bowing to another false idol progressive liberal government and its Dear Leader. Ironically, the theft only leads to equality of misery.)

A prisoner cannot escape a prison if he doesn’t know he’s in prison
To paraphrase Guirjieff
(he’ll just go into another cell – Schwartz)

            I can’t say I’m a “I’ll figure it out, deal with it” person. But recognition & re-evaluation of one’s adaptability and resourcefulness allows even increases a little more choice (rather than anxious Xanex inducing blind slavery & idolatry to a current currency which tomorrow could be devalued, confiscated in the name of ‘social justice, fairness, entitlement, redistribution’ – HELLalujah.)

*(1)*(2) Floor Ceiling Systematic Withdrawal Rules
(see previous blogs on distribution methods mentioned above)

            “Yeah, yeah, yeah… that’s nice – so what - but tell me about the Guardrail and Ratchet” distribution methods, “Mr. Adaptable, Resourceful, I’ll Figure It Out!”
            Recognizing the futility of the aforementioned, there are two other methods of distribution to consider for income sustainability systematic withdrawal (without or without Viagra ‘for premature accumulation’):

            The Guardrail Rule by Jonathan Guyton:
·         initial withdrawal rate 5%
·         adjust for inflation
·         Prosperity Rule: yearly when withdrawal amount is 4% or less of accumulation thereafter increase the withdrawal amount by 10%
·         Capital Preservation Rule: yearly when the withdrawal amount amounts to 6% of the accumulation take a 10% cut in the withdrawal amount

The Ratcheting Safe Withdrawal Rate by Michael Kitces
·         If and when the initial accumulation has increased 50%, can increase the annual withdrawal amount (increased annually by inflation) another 10% but the bump can only occur once in every three year period.

Wednesday, July 22, 2015

The Intersection of ENOUGH with Meaning IN One’s Life

The Intersection of ENOUGH with  Meaning IN One’s Life

            Since 1977 thru 20 years of practice of and now 39 years of writing about – preaching about ENOUGH, the definition thereof has evolved sequentially

·         Clientele realizable goal determination coordinated with orderly plans for their desired achievement
·         A process of connecting personal resources (including money) to support life goals
·         Healing personal financial anxiety, putting money in its place, to connect to one’s significance
·         Healing personal financial anxiety, puttin’ money in its place, to elevate to connect to one’s significance and assignment – enough to live on; enough to live for
·         Healing personal financial anxiety, putting money in its place, to elevate to connect to transcend to one’s significance, assignment and meaning – what one was meant to do and meant to be with enough to live on and enough to live for

Yes, nuanced changes but significant – especially the inclusion of the word meaning as the will to meaning is particularly exposed by now former clients, friends, etc all over 45 seek meaning (second only to the fear of outliving their money – dependence) with repeated variation on the them of meaning phrases including --

·         Seeking a new chapter
·         Making a difference
·         What next


And when meaning isn’t there – again other than further preoccupation & habituation with the fear of outliving their resources (giving little value to their own adaptability and resourcefulness),  there is:

·         Reversion to making the habituated “more” via
1.      Ad-Venturesome Capital
2.      Running for Office
3.      Going back into the business/profession that they were sick of, even tough the skill was there but the love was gone
4.      Wanting to make a difference in 20 minutes with the same level of skill it took them 20 years in prior endeavors – only to be frustrated
·         Palliation
1.      Trips
2.      Golf
3.      Someday things – they get bored with after 3-6 months
4.      Buying after life insurance for their comfort (and hedging their bets) from the Spiritual ‘praying upon’ Pulpit Religious & Happiness industries

·         Seeking Altered States (which the Happiness Industry – psychobabblists, otherwise failed academicians, the Happily Ever After businesses (including Disney, marijuana, and alcohol industries) has preyed upon though Hedonic Adaptation will not be denied and larger and larger more expensive doses are needed for the same ‘diversionary high’

ENOUGH doesn’t heal the hole in the soul however expressed. In fact, it may expose the wound further to the question of ‘why I am’ – yes meaning. (Of course, there are those who have accepted what a Banker’s Life of Iowa (now Principal Group)  manager said to me at age 23, ‘Jim, you are born. You go to school. You get a job. You get married. And then 66,75 80 years later you die. That’s it.”
So ENOUGH (though not a substitution for adaptability and resourcefulness let alone its recognition) however may allow one to connect to elevate to transcend to one’s significance, assignment – meaning IN one’s life. Notice the phrase ‘meaning IN one’s life’ is not ‘the meaning OF life.’

When Tarzan goes from one vine to another vine – there is that brief moment when neither hand is on either vine. I would call that brief interlude – that interval – the di-vine or fall.
ENOUGH may intersect at meaning – but doesn’t cause meaning – and if anything ENOUGH may expose the wound of lack/lacktose intolerance – the lack of meaning IN one’s life: the challenge and the opportunity of Why I AM.

            And given the above, I have been informed by Investment Manager Ben Dover, of the reopening of the following mutual fund.

The Altered States Fund™ (symbol: OFF)

(picture dice snake eyes)

Tis better to alter than be altered
(so sayeth many a male canine)

            Turned off by the Obama -nation State of America?
            Turn off, Tune in, Drop Some Bucks into the Altered State Fund (OFF)
            OFF: invests in the following numbing/palliating/distracting mood enhancing industries to ‘get one off’:

  • Alcohol (Distill, Swill & Refill)
  • Tobacco/Pot (Wackie Tobaccie)
  • Gaming – (Thrills & Chills)
  • Sports (Bread & Circuses)
  • X Rated Entertainment (Frills, Thrills & Handbills)
  • Resorts (Sandals, Club Med etc)
  • Companion Animals (Oxytocin & Devotion)
  • Organized Religion’s Commemorative Plaques, Chachkas & Amulets
(Afterlife Insurance)

            The Altered States Fund Capitalizing On Great Escapes

A Kish Meir ‘Altered’ Tuchass Member of The Shtup © Family of Funds™
(A Tongue On Cheeks Production, 2013 update 2014, 2015)