It has become commonplace this time of year to bemoan the "commercialization" of Christmas. This will not be one of those times.
Frankly, it seems that the growth of commercialization (by this I mean the frenetic gift-buying) is nothing more than the effect of a growing loss of our ability to express true love for our families and neighbors. It is the materialist's answer to a spiritual problem. We want to say "I love you" in an easy way, but there is no easy way.
If an exchange of gifts is a means by which we say "I was thinking about you" or "I love you", then I say we need more "commercialization". But the people who decry the gift-buying frenzies of Christmas are not complaining that there is too much love being exchanged, but that there is no love in our gift exchanges. Now that is a different matter altogether.
Unfortunately, the answer usually proferred for the over-commercialization of Christmas is a syrupy sentimentality that is equally vacuous. Somehow baking cookies (weren't those bought too?) and making a home-made card is more "loving" than buying them at Wal-mart. I agree that putting more thought and effort into our gifts is a good thing, but does that necessarily translate into more love being conveyed or that a truer gift is being given?
Now, at this juncture, you might be tempted to call me Scrooge and shout bah humbug at me! But again, I am all for the INCREASE of love as evidenced by the exchanges of gifts. I just contend that neither side of the commercialism debate is really hitting the mark.
The true malady, as I see it, is that none of us are really capable of fully expressing the depth of our love, gratitude and appreciation to those we most want to know it. It is as if we are prisoners of our own thoughts and bodies.
Indeed we are. We all struggle with our own finiteness. We have limited time, limited abilities, limited wealth and other human frailties. And yet, we sense something of the Infinite whenever we experience love. Somehow when we share love, rather than it being divided, it multiplies. Wow!
Sometimes, selfishly, in our quest for that thing that never exhausts itself, we seek the feeling rather than the Cause of that feeling. That is why gift-giving, commercialization or sentimentality finally exhausts itself and rings hollow. It stops becoming about others and, consciously or not, becomes about us.
Christmas is an annual reminder and corrective to us. Christmas is when the Infinite intersected with the finite. Christmas is when Love was Incarnated, took on our flesh (and limitations) and showed us the way to true Love. Christmas is a message of hope and humility. Christmas reminds us that a Savior is born to those who could not save themselves. Christmas is the beginning of the greatest gift exchange of all time:
"Greater love than this no man hath, that he lay down his life for his friends." John 15:13.
Friday, December 23, 2011
Friday, September 23, 2011
Operation Twist...and Shout?
Killing the American economy has proven quite difficult for the liberals, but that hasn't stopped them from trying. And trying some more!
Now it appears that their moronic policies are even threatening what I have described before as "the best place to store money." This week Reuters ran an article about the dangers of Operation Twist and how it is likely to "threaten the earnings of some of the country's largest insurers for years to come."
For those of you who have followed my financial planning advice, you know this is a day that I hoped would never come. But let's also take heart that we have been given this signal to adapt and amend our plan to account for these dangerous developments.
In truth, a plan, even a financial plan, is only as good as the contingencies you build into it. For example, if you had a plan to climb a mountain and didn't have a contingency for downed trees in your path, then you probably would never reach the summit. Further, it would be foolish and inefficient to abandon the plan, return to the base and choose another path...or another mountain! Again, the strength of a plan is its adaptability and its built-in contingencies.
So where does Operation Twist and its repercussions leave us? Well first of all, it is not time to panic and abandon the best place to store money. Insurance companies have proven quite resilient in difficult economic times and I trust they will again. Second, other than the methods we employ, there is no other strategy available out there that combats the insidious and destructive monetary policies impacting us. We must continue using them until the policies are corrected or the money is worthless. Finally, it is clear that an increase in less risky assets are in order so I would suggest to everyone a heavier weighting in Intrinsic Worth Items. A 50 to 100% increase in your current weighting would not be out of line.
And for those of you still trusting solely in the market or the Federal Reserve or the government to keep your financial future bright, think again. Operation Twist might just make you SHOUT!
Now it appears that their moronic policies are even threatening what I have described before as "the best place to store money." This week Reuters ran an article about the dangers of Operation Twist and how it is likely to "threaten the earnings of some of the country's largest insurers for years to come."
For those of you who have followed my financial planning advice, you know this is a day that I hoped would never come. But let's also take heart that we have been given this signal to adapt and amend our plan to account for these dangerous developments.
In truth, a plan, even a financial plan, is only as good as the contingencies you build into it. For example, if you had a plan to climb a mountain and didn't have a contingency for downed trees in your path, then you probably would never reach the summit. Further, it would be foolish and inefficient to abandon the plan, return to the base and choose another path...or another mountain! Again, the strength of a plan is its adaptability and its built-in contingencies.
So where does Operation Twist and its repercussions leave us? Well first of all, it is not time to panic and abandon the best place to store money. Insurance companies have proven quite resilient in difficult economic times and I trust they will again. Second, other than the methods we employ, there is no other strategy available out there that combats the insidious and destructive monetary policies impacting us. We must continue using them until the policies are corrected or the money is worthless. Finally, it is clear that an increase in less risky assets are in order so I would suggest to everyone a heavier weighting in Intrinsic Worth Items. A 50 to 100% increase in your current weighting would not be out of line.
And for those of you still trusting solely in the market or the Federal Reserve or the government to keep your financial future bright, think again. Operation Twist might just make you SHOUT!
Friday, August 26, 2011
Is Your Bank Safe?
Note: This is an excerpt from an email that I sent to my clients in September 2008. I post it now as a blog for the simple reason that periodic checks on where you store your money is a prudent thing to do.
This post is NOT intended to scare you or entice a run on the banks. Rather it is some common sense advice based on the adage: An ounce of prevention is worth a pound of cure.
Recently, a market technician that I use suggested that people should check the health of their banks. Since I agree, I am providing you a link to his step-by-step instructions.
And while he uses some strong language, I want to reiterate: Do NOT go into hysterics! I just think that prudence dictates that we seek the best places to store our wealth and if our current location does not measure up, we need to know that and take corrective action.
Of course, things change over time so you might want to set up a reminder to do this once or twice a year. Or, you might also consider putting your wealth in the best place to store money, which I have chronicled here before.
This post is NOT intended to scare you or entice a run on the banks. Rather it is some common sense advice based on the adage: An ounce of prevention is worth a pound of cure.
Recently, a market technician that I use suggested that people should check the health of their banks. Since I agree, I am providing you a link to his step-by-step instructions.
And while he uses some strong language, I want to reiterate: Do NOT go into hysterics! I just think that prudence dictates that we seek the best places to store our wealth and if our current location does not measure up, we need to know that and take corrective action.
Of course, things change over time so you might want to set up a reminder to do this once or twice a year. Or, you might also consider putting your wealth in the best place to store money, which I have chronicled here before.
Saturday, May 28, 2011
A False "Debt-chotomy" And What To Do About It
I hear a lot of financial advisors recommending to their clients to get out of debt. In years past, though it has been a while, I heard another set of advisors heartily recommending the strategic use of leverage. Apparently the "debt" word had become so distasteful to the general public that the pundits had to come up with a different word, "leverage", to make it sell.
So which is the better way? Who is right, the no-debt crowd or the leverage lot? Well neither actually, but understanding why is no easy task and many Americans still suffer this conundrum for failing to see the actual state of affairs they live under.
In point of fact, we live under a fiscal and monetary regime that is DEBT based. Whether or not you understand the implications of that statement, you must come to understand this: Under the current economic system, you are NEVER out of debt. For practical, theoretical and actual reasons, this is so.
Practically, your next debt is your NEXT emergency or NEXT major purchase. In other words, if you are "debt-free" now, you won't be the moment you encounter an unexpected or large expense. Even IF your emergency fund handles the first misstep, you then have a DEBT to replenish your emergency fund or else you won't be able to handle the next one.
In the theoretical realm, advisors will tell you that if you spend CASH to avoid debt then you have just created a reverse debt. They call it "lost opportunity" and the idea is that the cash you spent (an appreciating asset) to buy an item and avoid debt (usually on depreciating assets) has just lost the opportunity to grow for the rest of your life. Maybe that's why the car dealers are willing to "give" you ZERO percent interest?!? Once they have your capital, they have what matters, the asset, and you have a hunk of junk in a few years!
But the real and most destructive reason that you are never out of debt is this: If you are saving money, you are losing...unless you do it right. You see, when you save money at one percent interest and then experience four percent inflation, you have just gone in reverse by three percent...and that is just using the stated percent of inflation. Many experts think that real inflation is MUCH higher.
The reason you should not try to "get out of debt" OR use "leverage, leverage, leverage" is that neither course will get you where you want or believe you are going! It is a false debt-chotomy...er...dichotomy, a false choice. If you can imagine yourself immersed in a pool, tiring of treading water and desperate to get OUT, the "get out of debt" group is essentially throwing you a towel, which itself is going to get wet, and the "leverage" lovers are advising you to swim to the bottom! Good luck with that!
Sadly, there is no REAL solution under our current monetary system. But you can take on a strategy and technique that will help you harness the power of the debt economy. This is what the "becoming your own banker" system is all about and it is one part of my 4-part process to make you financially healthy.
I hope you will look into becoming your own banker and then begin working to return our country to sound money!
So which is the better way? Who is right, the no-debt crowd or the leverage lot? Well neither actually, but understanding why is no easy task and many Americans still suffer this conundrum for failing to see the actual state of affairs they live under.
In point of fact, we live under a fiscal and monetary regime that is DEBT based. Whether or not you understand the implications of that statement, you must come to understand this: Under the current economic system, you are NEVER out of debt. For practical, theoretical and actual reasons, this is so.
Practically, your next debt is your NEXT emergency or NEXT major purchase. In other words, if you are "debt-free" now, you won't be the moment you encounter an unexpected or large expense. Even IF your emergency fund handles the first misstep, you then have a DEBT to replenish your emergency fund or else you won't be able to handle the next one.
In the theoretical realm, advisors will tell you that if you spend CASH to avoid debt then you have just created a reverse debt. They call it "lost opportunity" and the idea is that the cash you spent (an appreciating asset) to buy an item and avoid debt (usually on depreciating assets) has just lost the opportunity to grow for the rest of your life. Maybe that's why the car dealers are willing to "give" you ZERO percent interest?!? Once they have your capital, they have what matters, the asset, and you have a hunk of junk in a few years!
But the real and most destructive reason that you are never out of debt is this: If you are saving money, you are losing...unless you do it right. You see, when you save money at one percent interest and then experience four percent inflation, you have just gone in reverse by three percent...and that is just using the stated percent of inflation. Many experts think that real inflation is MUCH higher.
The reason you should not try to "get out of debt" OR use "leverage, leverage, leverage" is that neither course will get you where you want or believe you are going! It is a false debt-chotomy...er...dichotomy, a false choice. If you can imagine yourself immersed in a pool, tiring of treading water and desperate to get OUT, the "get out of debt" group is essentially throwing you a towel, which itself is going to get wet, and the "leverage" lovers are advising you to swim to the bottom! Good luck with that!
Sadly, there is no REAL solution under our current monetary system. But you can take on a strategy and technique that will help you harness the power of the debt economy. This is what the "becoming your own banker" system is all about and it is one part of my 4-part process to make you financially healthy.
I hope you will look into becoming your own banker and then begin working to return our country to sound money!
Thursday, April 21, 2011
Into Our Own Way...Of Destruction
For all the venom that the modern-day press and "pundits" pour forth upon religion, it sure seems to have well diagnosed the root cause of so many of the ills of society. For example, I read this week in Isaiah 53:6, "All we like sheep have gone astray, every one hath turned aside into his own way."
This turning into our "own way" of which the prophet speaks is nothing more than the simple notion of selfishness. So flash forward from the 8th century B.C. to today and what do we find? A world virtually devoid of sacrifice and selflessness, but rather consumed with envy, hatred, selfishness and destruction. It seems to keep getting worse and worse and worse. Not to be outdone, even American football players, those poor, underprivileged multi-millionaires, are claiming unfair treatment!
Truly it is the "logic" of selfishness. If "what I want" is the guiding principle of existence and if "what I want" is as many of the material goods of the world as I can commandeer, then it only stands to reason that anyone who gets in the way of my acquisitions is an enemy. The theory that this modern, secular world is progressing to an ever more mature and humane society is false. Far from advancing towards graduation, we have regressed to a kindergarten existence with "MINE" the omnipresent battle cry.
We are all infected with it. But the road to recovery can start with as simple a step as giving something up. Better yet, give something away...with love. And for the greatest such gift in history, I suggest that you read the balance of Isaiah chapter 53 for "Surely He hath borne our infirmities and carried our sorrows."
Have a Happy Easter!
This turning into our "own way" of which the prophet speaks is nothing more than the simple notion of selfishness. So flash forward from the 8th century B.C. to today and what do we find? A world virtually devoid of sacrifice and selflessness, but rather consumed with envy, hatred, selfishness and destruction. It seems to keep getting worse and worse and worse. Not to be outdone, even American football players, those poor, underprivileged multi-millionaires, are claiming unfair treatment!
Truly it is the "logic" of selfishness. If "what I want" is the guiding principle of existence and if "what I want" is as many of the material goods of the world as I can commandeer, then it only stands to reason that anyone who gets in the way of my acquisitions is an enemy. The theory that this modern, secular world is progressing to an ever more mature and humane society is false. Far from advancing towards graduation, we have regressed to a kindergarten existence with "MINE" the omnipresent battle cry.
We are all infected with it. But the road to recovery can start with as simple a step as giving something up. Better yet, give something away...with love. And for the greatest such gift in history, I suggest that you read the balance of Isaiah chapter 53 for "Surely He hath borne our infirmities and carried our sorrows."
Have a Happy Easter!
Tuesday, March 22, 2011
The Cure for Materialism
Aristotle said that "happiness is the meaning and the purpose of life, the whole aim and end of human existence." How he deduced this is a rather fascinating study, but that will have to be left for another time.
Still, it remains true that we humans seek happiness, but far too few of us seek TRUE happiness. We are regularly sidetracked with false notions of things that will make us happy. In fact you might say that the whole story of mankind is the record of the wrong roads we've taken seeking happiness and the unhappiness that ensued.
But still we try. And still we fall prey to the siren song of false philosophies. In America, we seek happiness in things, material prosperity, money. As a financial advisor, I guess I ought to be glad about such a state of affairs since it ensures me a job! However, I am not glad, but saddened by it. I am saddened by it each time I counsel a person who sought success through materials only to find that he lost his marriage or children or health in the process.
Perhaps there is hope on the horizon. Recently, the New York Times, under the rather provocative title, But Will It Make You Happy, profiled a young couple that began "downsizing" and eschewing personal belongings so they could get off the "work-spend treadmill." Good for them!
My only caution to them would be this:
The cure for materialism is NOT anti-materialism, but spirituality.
Yes, it is a good start and perfectly fine to deny yourself and renounce material goods so they lose that special appeal to false happiness. It's called detachment and it is a virtue. But happiness is no more guaranteed to the person who has nothing than it is to the person who has everything. This is because happiness does not reside in having but in being.
Detachment encourages the proper order of importance between creature (created things) and Creator. And once our compass is set for that End, then we are well on our way toward true happiness.
Still, it remains true that we humans seek happiness, but far too few of us seek TRUE happiness. We are regularly sidetracked with false notions of things that will make us happy. In fact you might say that the whole story of mankind is the record of the wrong roads we've taken seeking happiness and the unhappiness that ensued.
But still we try. And still we fall prey to the siren song of false philosophies. In America, we seek happiness in things, material prosperity, money. As a financial advisor, I guess I ought to be glad about such a state of affairs since it ensures me a job! However, I am not glad, but saddened by it. I am saddened by it each time I counsel a person who sought success through materials only to find that he lost his marriage or children or health in the process.
Perhaps there is hope on the horizon. Recently, the New York Times, under the rather provocative title, But Will It Make You Happy, profiled a young couple that began "downsizing" and eschewing personal belongings so they could get off the "work-spend treadmill." Good for them!
My only caution to them would be this:
The cure for materialism is NOT anti-materialism, but spirituality.
Yes, it is a good start and perfectly fine to deny yourself and renounce material goods so they lose that special appeal to false happiness. It's called detachment and it is a virtue. But happiness is no more guaranteed to the person who has nothing than it is to the person who has everything. This is because happiness does not reside in having but in being.
Detachment encourages the proper order of importance between creature (created things) and Creator. And once our compass is set for that End, then we are well on our way toward true happiness.
Thursday, February 10, 2011
What We Can Learn From Leonard...
What if you lived to ripe old age of 107? Would your retirement accounts hold up?
Consider the interesting case of Leonard McCracken who has done just that. Retired for 41 years, he has managed to live on his personal savings, a lifetime annuity and social security. So what can we learn from Leonard?
Well here are his six principles, as spelled out in the article, with my commentary following:
Consider the interesting case of Leonard McCracken who has done just that. Retired for 41 years, he has managed to live on his personal savings, a lifetime annuity and social security. So what can we learn from Leonard?
Well here are his six principles, as spelled out in the article, with my commentary following:
- Thrift. Perhaps Leonard had to be a bit too thrifty because he was not managing his investments well (he didn't have investments), but his wisdom in not "keeping up with the Jones", buying used vehicles and making sure he broke even each month served him well.
- Real Estate Investments. The real point here is that Leonard had a "job" and a second business via his real estate transactions. We would all do well to diversify our income streams too.
- Use Debt Well. Leonard "borrowed as little as possible...and paid it back as quickly as he could." That's really NOT using debt well, but using it sparingly. Sound advice for sure, but just imagine how well he would have done if he understood the concept of "being your own banker."
- Work Even When Jobs Are Hard To Find. Leonard was not too proud to take any job to support himself and his family. That is a good work ethic. But the more difficult question is what is one to do if there are no jobs to be had? Clearly we should all be moving toward expanding our skill base, having tools for our trade and practicing the arts of self-sufficiency.
- Save And Invest Conservatively. Leonard touts "CDs and bonds" as safe investments and the reason for his success. However, it is his frugality and thrift that has kept inflation from eating him alive. And while no one would argue against safe investing or cash savings, one better have a mechanism for dealing with the destructive influence of governmental monetary policy (inflation) or be prepared to live much more frugally in the future than Leonard has had to be in the past.
- Stay Healthy. Leonard is wise and knows that it is better to have health over wealth any day. Stay healthy, Mr. Leonard, stay healthy!
Friday, January 14, 2011
Bull or Bear? And Why You Should Care!
NOTE: This article was first published in January 2008.
Are you a bull or a bear? Gosh, in today's market I think most of us would prefer to be a mouse and hide in the back of the cupboard with our little piece of cheese!
Frankly I hate the propaganda mill that is known as the financial markets press that continually tells us not to worry (or to worry a lot...depending on the day). Instead, I have always sought to develop a strategy that will protect my clients' wealth ALL of the time. What I have come up with is a bit contrarian, off the beaten path and requires those who work with me to take responsibility and to take action. To the extent that one follows this plan, I believe it will work. But, it is not perfect and we all are prone to sloth and taking the path of least resistance.
One component of my plan is managing client investment portfolios. The first thing I usually notice when a new client shows me his net worth is that they have too much of their wealth in the market. In fact, most of us have too much of our wealth in the market. We ought to reconsider that choice, but I recognize that changing this takes time.
In handling market assets, I follow, for the most part, modern portfolio theory, establish well diversified and risk adjusted portfolios and seek to minimize losses, choosing some level of active management over "buy and hold."
Some people ask me if I "market time" and the answer is an emphatic "no". But, I am also simply not going to stand by and watch my clients' accounts suffer huge percentage decreases while all the while saying such things as, "Don't worry, the market always rebounds and over the long term...blah, blah, blah." You've heard it all before.
But when to make defensive moves or to enter the market is no easy task. In fact, in most cases the time to make moves is exactly OPPOSITE what one would FEEL is right. Which is why I don't go on feelings, but use certain market indicators to assist me. Now, I don't have a perfect system and no one can account for the market manipulation of the Federal Reserve or other international events. But on the whole, I believe that making these strategic moves is beneficial to my clients' accounts.
Occasionally I will read a piece like this:
News Item 1
and then immediately find a contrary piece like this:
Now it is my job to read all of this data and to make sense of it and make moves for my clients. That is why people hire me. But I wanted to demonstrate how difficult it can be to know when to stand pat, when to take defensive moves or when to go against the tide and invest.
I do my best to protect a client's wealth, but if you don't have an advisor or if you are losing sleep at night, worrying about the market, I would recommend the following:
1. Determine whether or not you have too much of your wealth in the market and where else you might invest it. Check this article out for help in that arena; and
2. Then perform a "risk tolerance" examination on yourself and modify your existing portfolio (if it's too risky) to have it more in tune with your tolerance for market fluctuation.
This won't guarantee you no losses in the market, but it should make your market assets a more valuable component of your overall financial plan.
Are you a bull or a bear? Gosh, in today's market I think most of us would prefer to be a mouse and hide in the back of the cupboard with our little piece of cheese!
Frankly I hate the propaganda mill that is known as the financial markets press that continually tells us not to worry (or to worry a lot...depending on the day). Instead, I have always sought to develop a strategy that will protect my clients' wealth ALL of the time. What I have come up with is a bit contrarian, off the beaten path and requires those who work with me to take responsibility and to take action. To the extent that one follows this plan, I believe it will work. But, it is not perfect and we all are prone to sloth and taking the path of least resistance.
One component of my plan is managing client investment portfolios. The first thing I usually notice when a new client shows me his net worth is that they have too much of their wealth in the market. In fact, most of us have too much of our wealth in the market. We ought to reconsider that choice, but I recognize that changing this takes time.
In handling market assets, I follow, for the most part, modern portfolio theory, establish well diversified and risk adjusted portfolios and seek to minimize losses, choosing some level of active management over "buy and hold."
Some people ask me if I "market time" and the answer is an emphatic "no". But, I am also simply not going to stand by and watch my clients' accounts suffer huge percentage decreases while all the while saying such things as, "Don't worry, the market always rebounds and over the long term...blah, blah, blah." You've heard it all before.
But when to make defensive moves or to enter the market is no easy task. In fact, in most cases the time to make moves is exactly OPPOSITE what one would FEEL is right. Which is why I don't go on feelings, but use certain market indicators to assist me. Now, I don't have a perfect system and no one can account for the market manipulation of the Federal Reserve or other international events. But on the whole, I believe that making these strategic moves is beneficial to my clients' accounts.
Occasionally I will read a piece like this:
News Item 1
and then immediately find a contrary piece like this:
Now it is my job to read all of this data and to make sense of it and make moves for my clients. That is why people hire me. But I wanted to demonstrate how difficult it can be to know when to stand pat, when to take defensive moves or when to go against the tide and invest.
I do my best to protect a client's wealth, but if you don't have an advisor or if you are losing sleep at night, worrying about the market, I would recommend the following:
1. Determine whether or not you have too much of your wealth in the market and where else you might invest it. Check this article out for help in that arena; and
2. Then perform a "risk tolerance" examination on yourself and modify your existing portfolio (if it's too risky) to have it more in tune with your tolerance for market fluctuation.
This won't guarantee you no losses in the market, but it should make your market assets a more valuable component of your overall financial plan.
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