Consider time management for your Super Bowl...

Where did the weekend go? Back to work tomorrow. Judging from the new counter I installed on this blog, I have a few more days to go before everyday is a weekend. It never ceases to amaze me how fast weekends go by. They seem to be over in the blink of an eye. Why is that? I plan every minute of my work week. I use time management techniques to ensure that I am as efficient as possible. My weekends on the other hand, are for the most part experienced in free fall. So does that say I should plan my weekend and let the chips fall as they may during the week? Interesting concept. Planning buys me time during the week. Maybe it can help me extend my weekends. At least create the perception that I have more time. I think it boils down to planning creates the illusion of time. We all know that time is a fixed resource. We need to find ways to utilize the time we have available to its fullest extent. You know where I am going with this don't you? Yes, back to the retirement discussion. I think that time management will be a critical component to a fulfilling retirement. Free falling through retirement will be sure to diminish any feeling of self worth and accomplishment. Time management can help ensure that each day is lived with a sense of purpose. It may be more critical to manage ones leisure time than it is the time that is controlled by the structure of your job. Retirement is like the Super Bowl of life. You can bet that Tom Brady and Eli Manning both had a plan to manage every second they had the ball when they started last weeks big game. We should be prepared to control retirement with the same commitment. Sam says: Be ready!

The Rule of 72 - What's in your wallet?

Have you ever heard of the "Rule of 72"? I had, but it was a very long time ago. Probably back in my college days. I probably wasn't paying close attention that day. When you are thinking about how much money you need to save in order to retire, it is helpful to know how fast your money can grow. The "Rule of 72" will let you quickly calculate an estimate of how long it would take any amount of money to double in value. All you need to do is take the number 72 and divide it by the interest rate you expect to get for your money. The result is a fairly close approximation of the number of years required to double your money. For example, if you have $25,000 in your savings account, and you expect to earn 8% interest on your money, then it should take approximately 9 years for the $25,000 to grow to $50,000. At 4% it would take 18 years to reach $50,000. This is a quick and dirty way to see the power of saving. It pays to invest your extra cash so that you take advantage of this growth opportunity . Let compounding interest pave your way to retirement. Sam says: "Whats in your wallet?"

Thank God It's Friday!

What a work week. I have been stuck in a hotel since Monday. Yes, I think I'm becoming the ultimate road warrior. I have been doing this for a few years now, and let me tell you, it never gets easier. I am so glad this week is over and I am finally home. Standing in the airport today I found myself thinking that there are a lot of weird people in this world. Friday travel does something to people. They all had a sort of crazed look on their faces. Maybe it was more of a sad, lost look. Many of them had been away from home all week too. I had the love of my life waiting on me. I am sure many of the people that I was watching roam past the gates of hell, didn't have anyone waiting on them at home. Lonely road warriors! So sad...

Why do we do it. I guess we are all chasing the dream. At least I think its a dream. Is the dream retirement. Is that really what we are all working for? To retire when we grow old? Will we have our health, or will we have nothing left but a tired old body that we abused on the road. Are we fooling ourselves? I hope not. I need a plan, a dream, a vision! Stay tuned!

Bless Me Father For I Have Sinned...

Bless me Father for I have sinned. It has been 3 days since my last blog! I started reading "The 4-Hour Workweek" and am in the midst of a major values melt down. I have always been addicted to time management, and this book has basically told me to throw time management out the window. Ouch! I think I will hold off until I have finished the book and digest the content for a while. I do like the concepts that are being presented. A combination of the Pareto principle and Parkinson's law. If you aren't familiar with the Pareto principle, it basically says that you can apply the rule of 80/20 to almost anything. What does that mean? It means that 20% of the work that you do creates 80% of the value, or 80% of the money in the world is in the pockets of 20% of the people, or 80% of the smog is caused by 20% of the businesses. You can apply it to almost anything. Parkinson's law says that if you must work 8 hours per day, you will find activities to fill the 8 hours. Even if the activities are not essential, you will do them to fill up the time. The point made in the book is that if you set aggressive time limits for tasks that you must complete, you will finish them quicker without filling up the time with non value added activities.

Combining the Pareto principle and Parkinson's law, will allow you to focus on the 20% of the work that you are getting 80% of the value out of and get that work done without a lot of wasted time. It sound simple enough. If I apply this recommendation to the work I need to complete before I can retire, I should be ready next week. Oh wait, the author, Timothy Ferriss, says that retirement as I know it is a bad idea. I guess I am going to have to finish the book before I can make any rash decisions.

The 4-Hour Workweek

This weekend I started reading the book called "The 4-Hour Workweek". I haven't gotten too far, but the author, Timothy Ferriss, has already set the hook and ensured that I will continue reading. His writing style makes for a good read. He basically is saying that working your whole life to retire is a bad idea. He instead recommends a life laced with many temporary retirements. Interesting concept! I will read on with great hopes that he spills the beans on his recipe for pulling this off. I just hope I am not too late to get on the right bus.

The Monkey and the Banana

Does it really do you any good to pay someone for financial advice if you are not going to follow the recommendations 100%? After our second meeting, my wife and I have decided to sign on the dotted line with our financial partner. The problem is that while the recommendations that were given to us are quite sound, they involve getting rid of the vast majority of the stock that I own in the company I work for. Having been employed by the same company for 20 plus years, you can imagine the conflict that has created for me. I believe in the company, the leadership, the business, and the people I work with. The industry is highly impacted by housing, so the stock price has been significantly pounded over the last several months. While I don't have a crystal ball, I feel strongly that the stock will come back when housing rebounds and I am confident that it will rebound. Home ownership is still a big part of the American dream. My adviser's recommendations are sound, but my emotional attachment is not letting me go with the sound advice he is offering. He certainly hasn't given me an ultimatum, but he did tell me a story that I would like to share. He asked me point blank if I knew how to catch a monkey without a tranquilizer gun. Not having a good answer, I took the bait (no pun intended). He pointed out that it was quite simple to do. All that is required is to drill a hole in a box and put a banana in it. When the little guy reaches through the hole and grabs the banana, he won't let go. Kind of like I have grabbed onto my companies stock and won't let go. Not that it is a bad stock. I am sure the banana isn't bad either. My adviser pointed out that his recommendation is promoting what he feels will be a safer and more profitable portfolio. Gee, isn't that why I wanted a financial adviser in the first place?

I wonder if there is a way to eat some of the banana and then let go? I am not sure that I can let go of the banana entirely. Every day I see my stock price dip lower with the rest of the market, but know that we are positioned well for the rebound. We are cash rich and still making money, just not as much as the analysts would like. I have always felt that if the basic fundamentals were intact and if you believed in the stock, that you should ride through the tough times. Do I cut the cord, or do I bite the bullet and continue to ride the horse. I don't think I am going to get a partner in this one. The adviser doesn't have the emotional attachment to my company so he is making his recommendations with an open mind. I agree with everything else he has recommended, and even this makes logical sense. It just doesn't feel right. How do I get past this. I hate monkeys!