Category: Personal Finance

Every Investment Provides the Same Rate of Return


True if you consider all the inputs. Like skill, access, tax treatment, time, risk and more.  You always bring more to an investment than money.  You need to know what else is there. Investment yield is a function of exchanging outputs for inputs. It… Continue Reading “Every Investment Provides the Same Rate of Return”

Business Owners and Life Insurance


Let us suppose you have a business worth $3,000,000 and other assets worth $1,000,000.  Everything is looking good.  I approach you about life insurance.  You suggest that the business is your estate.  The wife and children will have $4,000,000 in the event of your… Continue Reading “Business Owners and Life Insurance”

Catch-Up Is A Bad Goal


Humans are goal-seeking devices. They plan and execute flawlessly when permitted. Because they are so good at achieving goals, it is crucial that they have the right ones. Many of us have coached children in sports. We are familiar with the condition of catch-up… Continue Reading “Catch-Up Is A Bad Goal”

Tax Rates Have Increased


You will recall, from 3 weeks ago, the fiscal cliff and the discussion of income tax rates increasing and those higher rates having an adverse affect on the economy. People are concerned that either the rich people need to pay more, or they need… Continue Reading “Tax Rates Have Increased”

Simple Works


If you don’t like how the government behaves, then you should behave differently than they do.  A good place to start would be, “spend less than you earn,” and “pay down debt” Debt is a call on the future.  By itself, it adds nothing… Continue Reading “Simple Works”

The Dog That Did Not Bark


Something that did not happen can provide information. Sir Arthur Conan Doyle created Sherlock Holmes in the late 1800’s. Many of his case-breaking observations have value in other contexts. In “Silver Blaze” we see the meaning of the dog that did not bark. Many… Continue Reading “The Dog That Did Not Bark”

Are You A Bird or A Squirrel?


There are two ways to reach your objectives.  Like a squirrel or like a bird.  Each has advantages and each has disadvantages.  You will do better if you can see both methods. Think of a tree as the set of all possible opportunities. A… Continue Reading “Are You A Bird or A Squirrel?”

What Should I Insure?


Insurance poor is a bad idea. So is poor because I had too little or none. There is a way to think about it. Future unknown losses fall into four categories. The defining elements are the cost of the loss and the probability of… Continue Reading “What Should I Insure?”

All ‘Round Like An Orange


GE is a company that understands management and they have systematized their knowledge.  They have developed techniques that help them.  Some are useful elsewhere. Suppose you have a clearly defined opportunity or a problem that is large enough to affect the entire business.  How… Continue Reading “All ‘Round Like An Orange”

Prophesy Is Difficult


Prophesy is difficult and it is especially difficult with respect to the future. Planning however, is possible. I found the desktop model crystal ball to be too cumbersome. Now when someone asks for my prediction of the future at lunch or a party, I… Continue Reading “Prophesy Is Difficult”

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