3 Things You can do with Money

There are only three things you can do with money.

1. Spend it
2. Save it
3. Invest it

The media overflows with investment advice and commentary. TV pundits, talk radio, and news specialist discuss almost exclusively the stock market, mutual funds, bonds, real estate, and to some extent hedge funds and other esoteric opportunities.

Our world of communication is filled to the brim with investment advice. So how is the primary focus on investing working? Are you feeling better about your finances today than you did 2 years ago? How about 10 years ago?

One job = $604,615

Have you ever been having a serious discussion and heard one of the following phrases:

• To be honest with you
• I was skeptical at first but
• You can trust me

Perhaps I’m somewhat cynical, but here is what goes through my mind when I hear:

• To be honest with you                so why the tactical change?
• I was skeptical at first, but          I need your money.
• You can trust me                        sure sign that I shouldn’t

It’s all about timing, or is it?

It’s all about timing, or is it?

The longer the recession grinds on, the more people realize the marvel of indexed annuities. Imagine all of your money intact today, never losing sleep over it, and having complete control over the entire amount.

Is there a bad time to purchase a Fixed Indexed Annuity (FIA)?

[A] On August 21, 1987 the S&P hit an all time high of 355. By December 4^th [D] it had fallen 37 percent to 224. Traders were jumping out of windows on Wall Street. (Not really, at least I didn’t see any. This is a metaphor indicating they were having a bad day.)

Gold and precious metals

I’ve had some questions regarding precious metals lately and here are my thoughts.

The argument for or against gold is neutral from my point of view. The most important element of my opinion is a function of sequencing.

Gold is an investment and it appears to be a good investment, but then so did many things 2 years ago. Real Estate seemed like a great investment for decades. The important aspect isn’t whether its good or not, but whether its a risk you can afford.

Permanent Life Insurance vs. Mutual Funds

You might be interested in this post from my PyrBlu blog.

http://blog.pyrblu.com/2009/10/24/permanent-life-insurance-vs-mutual-funds/

Conflict: The Source of Growth

I just finished reading Donald Miller’s book “A Million Miles in a Thousand Years.” Here are my notes:

There are three ways to see the great Incan city of Machu Picchu.

1)   You can take a train, a bus, and a one-mile hike.

2)   You can take a bus and then a 6 mile hike.

3)   You can hike as did the ancients, 4 days with elevations as high as 14,000 feet and steps as high as 2 feet that can last for miles.

Stuck

Your family has a big problem! Your kids are misbehaving and your marriage is strained with the recession, too much debt, and the breakdown of communication (an exchange of understanding) with the kids.

As a result of the stress, the two of you don’t talk much any more. Sure, you might yell a little, throw a few blame jabs, coupled with some justification jargon, but as for communicating, that happened in the good ol’ days.

Silence That Isn’t Golden

Some years ago my wife, Cheri and I had dinner with some friends at a little Mexican restaurant in the Proctor district in Tacoma. The food was sumptuous and my chimichanga was absolutely amazing especially considering it was fat free, at least until I ate it.

It was a blustery evening outside so after dinner we snuggled up to a fireplace conversation. It was rather mundane actually, that is until Gertie expressed some strong opinions on a political subject.

What a perfect evening this was turning out to be, a dinner and a conflict. Gertie’s strong words did not harmonize with my view and I felt excited at the potential conflict brewing in the room.

Nature vs. Nurture

The memory of a broken mother ever lingers in my mind as this wonderful woman mourned the apparent lost soul of her son. Such a memory seems to never leave my mind because the person in my memory is constantly changing and another mother takes center stage.

There are broken hearts all over the world as a result of children making harmful decisions. Parents who blame themselves are often overwhelmed with sorrow and shame and sadly, they share their misery with others.

Do Words Have Meaning Anymore?

Within each culture there are certain words that carry a specific meaning known only to the aborigines and veterans of that culture.

For example, in the German culture if you point to the temple on your head with your index finger, you are expressing the same sentiment in German as if you were to extend the middle finger high in the air here in the states.

In Germany, Switzerland, or Austria, if you were to ask the question: “How are you today,” be prepared to listen to an answer. Here, expect to hear one word that carries no meaning. Something like, fine.