The Death of Money
The Coming Collapse of the International Monetary System
By James Rickards
Kindle Edition
I like to read books that don't always paint a rosy picture of how a future retirement might end up. Th is book is not written specifically for retirees but simply those who want to know what may happen to their financial security.
I have read this book twice. Once a year ago, and then just this week as a reminder of how truly difficult it may be to plan for the future since as individuals we are not in full control of what may happen to our financial situation.
If you want to have a very good understanding of what is happening to our money as you watch prices increase on items you consume while some items seem to get less expensive this book should help you understand the dynamics of monetary policy. That sounds boring doesn't it. How about we just learn what they are doing to steal our hard earned savings with sleight of hand.
You'll learn how few people actually understand what is going on with our money, even those tasked with managing it. That should scare you as it does me.
His prediction is one that we often hear nowadays, one of financial calamity and few good options. Add to this an unknown timeline and murky final outcomes other than a loss of wealth, loss of liberty, and lots of distress.
Finally, he prescribes a number of ways to protect yourself from this future in terms of investments.
One of course is owning Gold while another is owning land in the form of farm land or unimproved land, art - the expensive kind so that is out of my league, specialized investing in commodities and other hard assets, and finally Cash. To get the details and not spoil the book for you I recommend you read it and if you must skip the core of the book go to the conclusion and find the section on how to protect yourself. I read the whole book and think if you can get yourself to do it you'll not regret the insight it offers on what is coming for your finances.
Five Stars Rating *****
This is one of the best financial books explaining modern money that I have read. I highly recommend it. It is popular enough that you might find it at the library.
Sunday, January 3, 2016
Wednesday, December 30, 2015
Bye Bye Pensions - Hello Personal Pensions and Work
The end of pensions. - create your own because if you hope to rely on social security you'll be very disappointed.
How to create your own pension.
Simple way - save money and then purchase an annuity. Wait as long as you can to begin collecting so the payout will be higher. Because there is no way to know if the government will destroy the currency or ramp up inflation to the point your annuity check will be worthless is is another gamble you are taking just as if it were a stock market investment.
Creative way - start some type of business that pays cash with minimal overhead and is not dependent on government licenses. Teaching is a good option if you have a skill or knowledge and maybe some credentials that back it up you can do it as long as you can talk and stand. Depending on what you teach even standing may not be necessary. I have taught computer classes and even in that class I had to move around so most teaching seems to require at least some level of mobility. If you have or develop such a limitation, well then hopefully you can find accommodations to make it work.
Teaching tennis - this is the one I am familiar with and the biggest problem with teaching tennis as you age is the risk of infirmity or disability. I suggest you learn to limit your movement and teach groups as you get older and less able to handle the task of a teaching pro. The need to move around the court for advanced private lessons usually is what takes a pro out of that category and moves them into management or group instruction. I am assuming you are reading this since you're not in management so to get started or to get business from referrals your best bet is to work for a county tennis program or at a club as an assistant pro. From there you can develop and reputation and following. An advantage of doing this when you are retired is that you can work a flexible schedule that younger people may not be willing to do.
Another suggestion - ramp up your social security payments by waiting as long as possible to collect. If you are starting early in your career of tennis teaching then make sure you are reporting a good amount of income or you will see little accumulated earnings to get a good payout. All of this of course assumes that the program will be solvent by the time you will collect. Don't assume that though you will probably get a check it is likely the check will be barely enough to pay for some of your expenses.
Final suggestion - learn to live on less. Much less. Any dollar you don't have to spend is a dollar you don't have to earn. Doing this early in your career will also allow you to work less and save more. That is the approach I have taken and it worked to give me a much longer career of teaching on the court than many of my contemporaries.
How to create your own pension.
Simple way - save money and then purchase an annuity. Wait as long as you can to begin collecting so the payout will be higher. Because there is no way to know if the government will destroy the currency or ramp up inflation to the point your annuity check will be worthless is is another gamble you are taking just as if it were a stock market investment.
Creative way - start some type of business that pays cash with minimal overhead and is not dependent on government licenses. Teaching is a good option if you have a skill or knowledge and maybe some credentials that back it up you can do it as long as you can talk and stand. Depending on what you teach even standing may not be necessary. I have taught computer classes and even in that class I had to move around so most teaching seems to require at least some level of mobility. If you have or develop such a limitation, well then hopefully you can find accommodations to make it work.
Teaching tennis - this is the one I am familiar with and the biggest problem with teaching tennis as you age is the risk of infirmity or disability. I suggest you learn to limit your movement and teach groups as you get older and less able to handle the task of a teaching pro. The need to move around the court for advanced private lessons usually is what takes a pro out of that category and moves them into management or group instruction. I am assuming you are reading this since you're not in management so to get started or to get business from referrals your best bet is to work for a county tennis program or at a club as an assistant pro. From there you can develop and reputation and following. An advantage of doing this when you are retired is that you can work a flexible schedule that younger people may not be willing to do.
Another suggestion - ramp up your social security payments by waiting as long as possible to collect. If you are starting early in your career of tennis teaching then make sure you are reporting a good amount of income or you will see little accumulated earnings to get a good payout. All of this of course assumes that the program will be solvent by the time you will collect. Don't assume that though you will probably get a check it is likely the check will be barely enough to pay for some of your expenses.
Final suggestion - learn to live on less. Much less. Any dollar you don't have to spend is a dollar you don't have to earn. Doing this early in your career will also allow you to work less and save more. That is the approach I have taken and it worked to give me a much longer career of teaching on the court than many of my contemporaries.
Sunday, December 27, 2015
Secret to Happiness: Retire
The secret to a happier, healthier life, just retire.
I've been saying this all along in one form or another. Retirement can mean many things that include doing some form of work, but it makes sense to shift gears and spend a lot less time working and more time playing and relaxing. It really helps to have things that you like to do as hobbies and activities other than laying in front of a TV or computer screen for health reasons if nothing else. Physical activity is a great way to keep your body in tone and it helps insure overall health, both mental and physical. This of course is where tennis comes into the picture.
Look, you can take up the sport at almost any age and limit the extent of your activity to avoid injury and take into account physical limitations. There are leagues, ladders, and other means of joining social competition in most places. There are public tennis courts in almost every state in the country. I'm not sure about Alaska though there are private clubs there.
Most important of all is to get started on developing your hobbies and pastimes so you can have a successful transition to the reclining years of life. Trying to find something after you retire is not a good plan as it can lead to frustration and developing the habit of doing something is how you can use such a routine to make retirement less traumatic.
Tennis players and tennis teachers have the advantage here. The cost of playing tennis is very low if you have access to public courts where games like golf can become prohibitive for a low budget retirement.
I prefer the teaching aspect of tennis because it is the best way share the game with others. Unless you are just in a volunteer position it is also a way of earning extra income to support your tennis retirement.
Start planning your retirement now and my advice is to make tennis a central part of it.
Retiring in your early 20's.
I have no issue with this idea except how they will accomplish it. If it is done with a reduced standard of living combined with a very self sufficient way of earning income without showing up to the office every day then I am all for it. However, if it is done by taking advantage of government programs that allow you to stay home and collect disability while not really disabled, then we have a problem. Such a system cannot be sustained and if we have lost a good number of young workers due to the ability to just milk the system then it won't last. It will fail to take care of the truly disabled.
I've been saying this all along in one form or another. Retirement can mean many things that include doing some form of work, but it makes sense to shift gears and spend a lot less time working and more time playing and relaxing. It really helps to have things that you like to do as hobbies and activities other than laying in front of a TV or computer screen for health reasons if nothing else. Physical activity is a great way to keep your body in tone and it helps insure overall health, both mental and physical. This of course is where tennis comes into the picture.
Look, you can take up the sport at almost any age and limit the extent of your activity to avoid injury and take into account physical limitations. There are leagues, ladders, and other means of joining social competition in most places. There are public tennis courts in almost every state in the country. I'm not sure about Alaska though there are private clubs there.
Most important of all is to get started on developing your hobbies and pastimes so you can have a successful transition to the reclining years of life. Trying to find something after you retire is not a good plan as it can lead to frustration and developing the habit of doing something is how you can use such a routine to make retirement less traumatic.
Tennis players and tennis teachers have the advantage here. The cost of playing tennis is very low if you have access to public courts where games like golf can become prohibitive for a low budget retirement.
I prefer the teaching aspect of tennis because it is the best way share the game with others. Unless you are just in a volunteer position it is also a way of earning extra income to support your tennis retirement.
Start planning your retirement now and my advice is to make tennis a central part of it.
Retiring in your early 20's.
I have no issue with this idea except how they will accomplish it. If it is done with a reduced standard of living combined with a very self sufficient way of earning income without showing up to the office every day then I am all for it. However, if it is done by taking advantage of government programs that allow you to stay home and collect disability while not really disabled, then we have a problem. Such a system cannot be sustained and if we have lost a good number of young workers due to the ability to just milk the system then it won't last. It will fail to take care of the truly disabled.
Friday, July 25, 2014
Keeping Your Mind In Shape For Retirement
Here is a great article on how diet may reduce your risk of dementia.
Sugar is the enemy and sugar comes in any form that converts to sugar say the experts.
Sugar is the enemy and sugar comes in any form that converts to sugar say the experts.
Wednesday, April 30, 2014
Your Retirement Age
Average age of retirement in America hits a new record high
These kind of statistics and stories should tell you it is time to become creative. Waiting for a legacy retirement is becoming wishful thinking so why not get retired right now.
These kind of statistics and stories should tell you it is time to become creative. Waiting for a legacy retirement is becoming wishful thinking so why not get retired right now.
Friday, April 18, 2014
Retirement Numbers: Save 8 x your yearly income
Saved enough to retire? That is always the question if it means you have to live fully on that savings without additional income.
Cash Flow from Earned Income Can Make Retirement Easy and Safer
The easy way to guarantee a safe retirement is to keep some income flowing from work. If you have that hobby or special skill that lets you dial down work based on your interest or need then you have an excellent tool for a sliding into retirement rather than leaping into it like most do in corporate environments. Your momentum of work vs savings can shift the need for work down to only a minimal earned income requirement that lets you cherry pick only the work that gives you the most satisfaction for the hours invested. Coaching, teaching, and creative endeavors usually fit that bill well. I have found this myself when the need to scale back work came as I took over as a caregiver for an aging parent.
Debt Free Living Always Acts as a Cushion Against Adversity
Having no debts can give you even more flexibility. If your pre-retirement income is sufficient to cover a mortgage, car payment, and other sundry debts then not having these debts can change the ratios you maintain to guarantee a well funded 25 year retirement. If the standard for that is 8x your pre-retirement income then you either have a built in buffer or the ratio can change to less. Working a budget can show you exactly where you need to be.
Manage Your Withdrawal Ratio to Extend Your Retirement
The standard withdrawal rate is 5% so taking 6% can put you at risk but scaling back can give you some breathing space and safety. If you find a way to create earned income that reduces your withdrawal rate of savings down to 4% or less you can extend your retirement savings another 5 to ten years. This becomes important if you plan an early work phase down.
Keep Earning
If you have an earned income source that fits your lifestyle then keep it going as long as you feel good about it. Not only will it keep you involved but it will add to your safety net.
Cash Flow from Earned Income Can Make Retirement Easy and Safer
The easy way to guarantee a safe retirement is to keep some income flowing from work. If you have that hobby or special skill that lets you dial down work based on your interest or need then you have an excellent tool for a sliding into retirement rather than leaping into it like most do in corporate environments. Your momentum of work vs savings can shift the need for work down to only a minimal earned income requirement that lets you cherry pick only the work that gives you the most satisfaction for the hours invested. Coaching, teaching, and creative endeavors usually fit that bill well. I have found this myself when the need to scale back work came as I took over as a caregiver for an aging parent.
Debt Free Living Always Acts as a Cushion Against Adversity
Having no debts can give you even more flexibility. If your pre-retirement income is sufficient to cover a mortgage, car payment, and other sundry debts then not having these debts can change the ratios you maintain to guarantee a well funded 25 year retirement. If the standard for that is 8x your pre-retirement income then you either have a built in buffer or the ratio can change to less. Working a budget can show you exactly where you need to be.
Manage Your Withdrawal Ratio to Extend Your Retirement
The standard withdrawal rate is 5% so taking 6% can put you at risk but scaling back can give you some breathing space and safety. If you find a way to create earned income that reduces your withdrawal rate of savings down to 4% or less you can extend your retirement savings another 5 to ten years. This becomes important if you plan an early work phase down.
Keep Earning
If you have an earned income source that fits your lifestyle then keep it going as long as you feel good about it. Not only will it keep you involved but it will add to your safety net.
Thursday, April 17, 2014
Realistic Retirement Thinking
Plan for the Day You Can't Keep it Going
Look, you can pull off the retirement lifestyle no matter what your age if you do find something that pays you to do what you love and enjoy. That still doesn't mean you shouldn't make plans for the time you want to slow down and take a different direction. To have the flexibility you need to have other sources of income and the best and most reliable source is savings.
Here are some statistics regarding what most people have in mind for retirement and it is clearly not sufficient.
Vanguard offers a retirement calculator that helps you at least get a realistic idea of how much income you can expect based on you assets and expected income streams such as social security.
Have a War Chest
Meanwhile, you need to find a way to put aside some money on a regular basis. First go ahead a create an emergency fund that will let you sit out 6 months and eventually a year for injury or disability. I've had a number of these occurrences over the decades and they were usually non work related such as an auto accident or a fall down some stairs. If you have a deep cash buffer that allows you to comfortably sit back to regroup and recover you will have to confidence to never feel that paycheck to paycheck vulnerability that a majority of workers have.
The best part of all is that you can have this confidence while living your retirement dream as a person who teaches happiness in the form of hitting tennis balls. (Substitute any other vocation that accomplishes the same for you whether it is painting murals or building computers.)
Where is the best place to hold your emergency fund? In a savings account at a nearby credit union or savings bank. I prefer credit unions since they are usually less costly and more user friendly. You will probably be eligible for one based on prior jobs, where you went to school, or past military background for someone in your family.
Look, you can pull off the retirement lifestyle no matter what your age if you do find something that pays you to do what you love and enjoy. That still doesn't mean you shouldn't make plans for the time you want to slow down and take a different direction. To have the flexibility you need to have other sources of income and the best and most reliable source is savings.
Here are some statistics regarding what most people have in mind for retirement and it is clearly not sufficient.
Vanguard offers a retirement calculator that helps you at least get a realistic idea of how much income you can expect based on you assets and expected income streams such as social security.
Have a War Chest
Meanwhile, you need to find a way to put aside some money on a regular basis. First go ahead a create an emergency fund that will let you sit out 6 months and eventually a year for injury or disability. I've had a number of these occurrences over the decades and they were usually non work related such as an auto accident or a fall down some stairs. If you have a deep cash buffer that allows you to comfortably sit back to regroup and recover you will have to confidence to never feel that paycheck to paycheck vulnerability that a majority of workers have.
The best part of all is that you can have this confidence while living your retirement dream as a person who teaches happiness in the form of hitting tennis balls. (Substitute any other vocation that accomplishes the same for you whether it is painting murals or building computers.)
Where is the best place to hold your emergency fund? In a savings account at a nearby credit union or savings bank. I prefer credit unions since they are usually less costly and more user friendly. You will probably be eligible for one based on prior jobs, where you went to school, or past military background for someone in your family.
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