Ignore Business Insider’s Reading List: Focus Here Instead & Save Yourself.

Posted on September 4, 2016 by Richard M. Rosso, CFP

Poor Business Insider.

No, wait! Poor you!

Most of the books on BI’s list are not going to get you where you want or need to be financially.

Not today. Not ever.

I’m not saying the books aren’t fine efforts.

What I’m saying is overall they represent a single perspective, one side of the investing coin. A philosophy that doesn’t effectively work through every stock market cycle.

The philosophy of “buy and hold” or “buy and sleep” as it’s eloquently described in one of the books on my best-of list (Cocktail Investing), is not going to help you to navigate a post-Great Recessionary period muddied by unprecedented global central bank overreach, negative rate scenarios, 8 years of below-average global economic growth and the second loftiest stock valuation levels (based on real earnings) since the tech bubble.

The advice from BI fits secular positive market periods like 1982-2000. However, through history, positive or upward cycles conclude and are ostensibly replaced by (as beautifully researched in another selection,) flat or down trending periods that work off bull excesses.

You see. Not every long-term market move is positive. On Wall Street however, every market is a bull. On Main Street, that buy-side mentality will place your household finances in jeopardy.

You must remember.

On occasion, it’s a bull-shit stampede.

As for Business Insider’s list?

Well.

Check the bottom of your shoes before going in. It’s a perfect cycle for them to stink up the joint.

Oh there are several tomes of wisdom. I’ve read all the books listed. Took notes. I did learn from them. I consistently read 10 books a year.

But through this market cycle, the pervasive wisdom of ‘buy and hold’ or ‘random walk’ where your portfolio trips and blows up your net worth, isn’t gonna fly.

You doubt me?

Ponder the following:

Warren Buffett repeatedly appears on BI’s list. I understand. Greatest investor of all time and all.

One problem. And it’s a big one.

It’s not realistic to think you can invest like Warren Buffett. It’s a romantic inclination. It’s what investors yearn to do but can’t.

Sure, you can prosper from an education in fundamental analysis – company cash flows, balance sheets, income statements, dividend growth, not chasing the hot investment flavors of the day. It’s called doing your homework and doing your homework is required.

In the brief period we’re given as investors, because we’re human – there’s a limited window of opportunity for appreciation. (Like 20-30 years if we’re lucky). Include the increased probability of a decade of below-average returns in stocks (our estimate is below 3%), and a set-it-and-forget-it mindset requires a wake-up call.

Now more than ever.

A new resource library.

You see, it’s close to impossible to match a human life (finite) with that of a market of stocks (infinite). Unless you’re Warren.

Think about it.

As Lance Roberts wrote recently:

“It is important to remember that we are not investors. We do not control the direction of the company, their management decisions or their sales process. We are simply speculators placing bets on the direction of the price of an electronic share that is heavily influenced by the “herd” that makes up the markets.

More importantly, we are speculating, more commonly known as gambling, with our “savings.” We are told by Wall Street that we “must” invest into the financial markets to keep those hard-earned savings adjusted for inflation over time. Unfortunately, due to repeated investment mistakes, the average individual has failed in achieving this goal.”

You don’t have a couple of hundred years like Warren Buffett who is investing not for just his lifetime, but for multiple shareholder lifetimes in Berkshire Hathaway.

So what if one of his investments doesn’t pay off for 30-50 years? He’s dealing with the luxury of that kind of time. The kind of time it takes to earn and book hefty market returns. This is not realistic for most of us. It’s a financial fairytale hawked as reality.

Thankfully, investors seem less receptive to the turd sandwiches they’ve been force fed when it comes to understanding how the stock market performs. It’s unfortunate too as this cyclical bull market we’ve enjoyed since March 2009, is one of the most despised I’ve witnessed. And I’ve been in this business for 27 years.

In part this negative sentiment is due to the continued lack of straight talk by pundits, an overhang from the pain of losses during the financial crisis (remember that?) and a painfully long (marginal at best), economic recovery.

So I share with you my library. My keepers.

A reading and learning treasure trove for the new world.

1). Investing with the Trend: A Rules-Based Approach to Money Management by Gregory L. Morris.

Wiley.

From Amazon: Investing with the Trend provides an abundance of evidence for adapting a rules-based approach to investing by offering something most avoid, and that is to answer the “why” one would do it this way. It explains the need to try to participate in the good markets and avoid the bad markets, with cash being considered an asset class. The book is in three primary sections and tries to leave no stone unturned in offering almost 40 years of experience in the markets.

Excerpt: The market from 1927-2012 was in a state of drawdown (loss of capital) for more than 95% of the time. In other words, the market was making new all-time highs less than 5 percent of the time.

Rosso’s take: Greg drags the mystical buy-and-hold unicorn behind the shed and destroys it. The book is comprehensive with data that obliterates the buy-and-hold myth and group think that has destroyed so many portfolios. You’ll be annoyed after reading this book. You’ll feel duped by a financial system that compels you to feel helpless. There’s more in control about money than you think, and this book will open your eyes -question your current portfolio management strategy.

2). Cocktail Investing: Distilling Everyday Noise into Clear Investment Signals for Better Returns by Christopher J Versace & Lenore Elle Hawkins.

Wiley.

Chris and Lenore focus on economics, demographics, psychographics, technology, policy and more. In other words, themes. Thematic investing. Their book allows you to tap into the flow and motivation for today’s consumer to spend and where they drop their cash.

From Amazon: Given today’s ever-increasing deluge of information, the average investor faces the challenge of sorting through the babble to decipher what it means, and learn how, where, and why they should be investing given the current economic environment and the uncertain future. This book provides an ‘off’ switch, helping readers apply an automatic mental filter to the incoming cacophony, to filter out only what they can use for smarter money moves.

Excerpt: Shifting demographics & psychographics shape and impact consumer behavior can force companies to make fundamental changes to their business to succeed. Identifying the root cause of these shifts, be they the fallout from a disruptive technology, changing consumer preference, or other pain point, helps you, the investor, identify companies that will profit from the pain as they administer their “soothing” medicine.

Rosso’s take: Talk about changing it up. How refreshing. The dynamic financial duo seek to help investors understand where demand is headed and then prosper from growing consumer trends. This book is an eye-opener if you’re investor looking to hook into the consumer mindset post-Great Recession.

3). The Choose Yourself Guide To Wealth by James Altucher.

CreateSpace.

From Amazon: We are living in an epic period of change, danger and opportunity. The economy is crashing and booming every few years. People are getting fired and replaced by computers and Chinese workers. The stock market crashes with regularity. Every “fix” from the government makes things worse. The Old World has been demolished… and people are desperate for answers.

This is the field guide to the “New World” we live in. You can play by the old rules and get left behind, or you can use these new ideas and become wealthy. This is not a book for the faint of heart. Read at your own risk, because sometimes the truth is hard to take.

Excerpt: “The Save Big Rule.” Don’t save small. Save big. Big is a worthless college degree. Big is a house. Saving 10 cents on a cup of coffee is a poor man’s way to get rich. There’s a myth that “saving a dollar is the same as making a dollar.” This simply is not true. It ignores the fact that you start off with money. If you start off with $100 you can only save $100 but you can make a gazillion dollars.

Rosso’s take: James as a dear friend and mentor changed my life. He’s not mainstream but he’ll get you to step back, question everything. He’s a dogma destroyer when it comes to ideas of building wealth and healthy daily habits that seek to preserve and nurture the greatest investment: YOU.

James Altucher is the Ralph Waldo Emerson of our age. I promise you won’t regret this one. I can’t promise it won’t get you thinking. At times you’ll shake your head in resistance as James breaks down deep-set societal rules of wealth building and encourages new ones defined by passions and creativity.

4). Animal Spirits: How Human Psychology Drives the Economy and Why It Matters for Global Capitalism by George A Akerlof and Robert J. Shiller.

Princeton University Press.

From Amazon: Animal Spirits offers a road map for reversing the financial misfortunes besetting us today. Read it and learn how leaders can channel animal spirits–the powerful forces of human psychology that are afoot in the world economy today. In a new preface, they describe why our economic troubles may linger for some time–unless we are prepared to take further, decisive action.

Excerpt: The term overheated economy, as we shall use it refers to a situation in which confidence has gone beyond normal bounds, in which an increasing fraction of people have lost their normal skepticism about the economic outlook and are ready to believe stories about a new economic boom.

Rosso’s take: Markets are math in the long term. From day to day, they’re a hot mess of emotions. Markets are not rational. They’re comprised of people doing impetuous acts to grow wealth, usually at the expense of others. It’s a war between buyers and sellers with prices used as weapons. Best to understand the animal, the push-pull, the primal spirits which feed (and sometimes anger) them.

5). Active Value Investing: Making Money in Range-Bound Markets by Vitaliy N. Katsenelson.

Wiley Finance.

From Amazon: A strategy to profit when markets are range bound–which is half of the time. One of the most significant challenges facing today’s active investor is how to make money during the times when markets are going nowhere. In this book, author and respected investment portfolio manager Vitaliy Katsenelson makes a convincing case for range-bound market conditions and offers readers a practical strategy for proactive investing that improves profits.

Excerpt: For the next dozen years or so, the U.S. stock market will be a wild roller-coaster ride—setting all-time highs and multi-year lows in the process. While the twists and turns of this ride are still to be written by history, the long-term, sideways “range-bound” trajectory has already been set by the eighteen-year bull market that ended in 2000. When the dust settles, only those who adapted their investment strategies to this range-bound market will have captured any meaningful profits.

Rosso’s take: Vitaliy is a master of long-term market cycle analysis (and they’re not always bulls). If half the time, markets are range bound, why does the industry ignore them or count them as insignificant? The narrative doesn’t fit well into the industry’s pervasive “set it and forget it” approach to portfolio and risk management.

6). Happy Money: The Science of Happier Spending by Elizabeth Dunn & Michael Norton.

Simon & Schuster.

From Amazon: Happy Money offers a tour of research on the science of spending, explaining how you can get more happiness for your money. Authors Elizabeth Dunn and Michael Norton have outlined five principles—from choosing experiences over stuff to spending money on others—to guide not only individuals looking for financial security, but also companies seeking to create happier employees and provide “happier products” to their customers. Dunn and Norton show how companies from Google to Pepsi to Charmin have put these ideas into action.

Excerpt: Consumers would get more happiness bang for their ITunes buck if they forced themselves, after downloading their music, to wait – at least five minutes, better hours, and ideally days – before listening.

Rosso’s take: Hey, you’re going to spend. Why not make the most of the experience, spend less in the process, yet gain greater satisfaction? Millennials seek experiences over stuff. How about you?

7). The Holy Grail of Macroeconomics: Lesson’s from Japan’s Great Recession by Richard Koo.

Wiley.

From Amazon: The revised edition of this highly acclaimed work presents crucial lessons from Japan’s recession that could aid the US and other economies as they struggle to recover from the current financial crisis.

This book is about Japan’s long recession and how it affected current theoretical thinking about its causes and cures. It has a detailed explanation on what happened to Japan, but the discoveries made are so far-reaching that a large portion of economics literature will have to be modified to accommodate another half to the macroeconomic spectrum of possibilities that conventional theorists have overlooked.

Excerpt: Although it has never been explicitly stated in the economics literature, the efficacy of monetary policy is based on a key assumption: the existence of willing borrowers in the private sector. Monetary policy loses all power if this condition is not met.

Rosso’s take: Sound familiar? It should. You’ve lived through 8 years of a sluggish economic recovery and monetary policy that has had very little positive effect on economic conditions. According to Bloomberg, close to 500 million people in a quarter of the world economy are now living with negative interest rates. Negative rates are a sheer act of desperation. A hallmark of how far monetary policy can be stretched, warped, morphed into ineffectiveness. And guess what? You still can’t be forced to spend. Or borrow.

Richard Koo understood the balance-sheet recession that hit the U.S. better than anyone on American soil. Those in charge still choose to ignore his sage commentary. Global leaders fell for unprecedented central bank intervention as the wholesale solution to decades-long structural economic problems. Go figure.

8). Wait: The Art and Science of Delay by Frank Partnoy.

PublicAffairs.

From Amazon: In this counterintuitive and insightful work, author Frank Partnoy weaves together findings from hundreds of scientific studies and interviews with wide-ranging experts to craft a picture of effective decision-making that runs counter to our brutally fast-paced world. Even as technology exerts new pressures to speed up our lives, it turns out that the choices we make––unconsciously and consciously, in time frames varying from milliseconds to years––benefit profoundly from delay.

Excerpt: An expert generally won’t need to delay a decision, but a novice generally should delay, as much as possible. The toughest part of the expert-novice distinction is that we can be experts in an area, with years of seemingly relevant experience, but then be confronted in the same area with a new twist on a decision that turns us into a novice. Not very many experts will admit, or even see, when they are novices.

Rosso’s take: Granted, a bit off topic. Or is it? Investing requires patience. Well, at least for those who follow a discipline, buy and sell rules. Let’s face it: Most financial firms are going to toss cash into the wind of the market because, well, it’s Wednesday and your account has cash in it. Little regard for current valuations. After all, you can’t time the market. Or is that just a convenient, overplayed excuse because financial representatives or investment specialists or whatever you call them, have sales quotas to fill, and financial firms have shareholders to appease? Your business is now booked. You’re history. Time to move on to the next target. Here’s a suggestion: After you finish this selection, recommend it to your broker.

9). The Misbehavior of Markets: A Fractal View of Financial Turbulence by Benoit Mandelbrot.

Basic Books.

From Amazon: Mathematical superstar and inventor of fractal geometry, Benoit Mandelbrot, has spent the past forty years studying the underlying mathematics of space and natural patterns. What many of his followers don’t realize is that he has also been watching patterns of market change. In The (Mis)Behavior of Markets, Mandelbrot joins with science journalist and former Wall Street Journal editor Richard L. Hudson to reveal what a fractal view of the world of finance looks like. The result is a revolutionary reevaluation of the standard tools and models of modern financial theory. Markets, we learn, are far riskier than we have wanted to believe.

Excerpt: But whether guide or master, modern portfolio theory bases everything on the conventional market assumptions that prices vary mildly, independently, and smoothly from one moment to the next. If those assumptions are wrong, everything falls apart: Rather than a carefully tuned profit engine, your portfolio may actually be a dangerous, careering rattletrap.

Rosso’s take: Frankly, I don’t know where I would be without the work of Mandelbrot. He’s the reason I stopped drinking the financial services industry’s Kool-Aid. This selection is always within my reach. I refer to it often. Backed by rigorous analysis, Mandelbrot unwinds and exposes how markets flow (think gusts of wind). His work adds tremendous relevance to the field and exposes the underbelly of markets you’ll never hear discussed at major brokerage firms.

10). Irrational Exuberance 3^rd Edition by Robert J Shiller.

Princeton University Press.

From Amazon: In this revised, updated, and expanded edition of his New York Times bestseller, Nobel Prize-winning economist Robert Shiller, who warned of both the tech and housing bubbles, cautions that signs of irrational exuberance among investors have only increased since the 2008-9 financial crisis. With high stock and bond prices and the rising cost of housing, the post-subprime boom may well turn out to be another illustration of Shiller’s influential argument that psychologically driven volatility is an inherent characteristic of all asset markets.

Excerpt: The efficient markets theory has been a fixture in university economics and finance departments ever since the 1970s. The theory has commonly been offered to justify what seem to be elevated market valuations, such as the 1929 stock market peak.

Rosso’s take: In September 2007, I asked many of the ‘experts’ at my former employer if stock prices were dangerously overvalued per Bob Shiller’s Irrational Exuberance. Naturally, I was told “no.” Bob Shiller tends to be early but always correct. Professor Shiller’s work is a haunting reminder of how hefty stock market valuations ostensibly correct and take your investments along for the plunge. Only to leave you spending the rest of your investing life attempting to break even. That’s not how the money management process is supposed to work.

Coming soon (available for pre-order):

11). Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America by Danielle DiMartino Booth.

Portfolio.

From Amazon: The culture at the Fed–and its leadership–were not just ignorant of the brewing financial crisis, but indifferent to its very possibility. They interpreted their job of keeping the economy going to mean keeping Wall Street afloat at the expense of the American taxpayer. But bad Fed policy created unaffordable housing, skewed incentives, rampant corporate financial engineering, stagnant wages, an exodus from the labor force, and skyrocketing student debt. Booth observed firsthand how the Fed abdicated its responsibility to the American people both before and after the financial crisis–and how nobody within the Fed seems to have learned or changed from the experience.

Rosso’s take: As the books is slated for release in February 2017, I do not have an excerpt to share. However, I couldn’t wait to pre-order. Danielle was inside the Dallas Fed, but she also maintained an “outsider looking in,” perspective that is crucial for the masses to understand.

A keen observer of how disconnected the Fed truly was during the financial crisis and remains distant from structural deficiencies that still inflict Main Street household balance sheets today, Danielle has a mission to expose the Fed and their economists for what they are: Clueless.

A frequent national media commentator and guest of our Lance Roberts’ radio show, Danielle is razor-blade sharp, passionate and a voice of truth. We’re fortunate as a society she decided to take on the mission to share her observations of the inner workings of the Fed.

The goal of my feverish reading habit is to immerse in the journey of financial wizardly less practiced by the frontline sales-driven asset allocators located at every Charles Schwab or Merrill Lynch retail outlet across the country.

Candidly, there’s enough mainstream financial ‘educational’ material available to lavishly adorn every waste dump on the planet. The written, glossy garbage stinks worse than dead fish full exposed to a west Texas August high noon.

Don’t be fooled.

It’s time to shake up your knowledge base.

I’m honored to assist you on your path.

And help you to question the rotted words of the masses.

Side note: I have learned the rhythm of markets by reading fiction. James Altucher advised me it would be so. After all, the price of a stock is what a willing buyer and seller agree to, the future growth potential of an underlying business, and educated guesses (a guess is a guess is a guess,) of price trends.

In addition, with the overwhelming response of global central banks over the last 8 years to keep rates low (or negative) investors have taken increased risk to reach for return, especially yield as witnessed in the dazzling positive performance of telecom and utility stocks. Thus, stock prices for dividend stocks and stocks in general, are now extended from underlying businesses fundamentals.

For now, price discovery is overwhelmed by monetary policy response and momentum trades rule the day. In essence, price is built on story and story is fiction (at least in my opinion).

Sooner or later, this overvalued condition painfully corrects which makes my reading suggestions for you more important than a list of quixotic words and adages of old.

Be careful out there..

8 Ways To Go “Money Active” With Your Kids.

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Posted on April 19, 2015 by Richard M. Rosso, CFP

Children are naturally curious.

How do you spark an interest in money?

As a child, I was an observer. My mother didn’t have money and my dad always lived for the moment. He died with nothing.

Today, with your children bombarded with messages you need to attempt to “sneak” money lessons in whenever possible.

Success comes from changing up old beliefs about how you think you should go “money-active” with the kids, creative thinking, remaining interactive.

Praying helps.

Random Thoughts:

Be an Example – Here’s an easy one because you don’t need to say a word – your actions are enough.

You children are monitoring your feelings about finances. What is your outward expression towards debt, savings and general household financial management, especially when communicating with the family?

If your relationship with money is positive or one of control and discipline, your children will learn from the example. If your relationship with money is negative, stressful, extravagant or reckless, the kids will pick up on that, too. Smart money beliefs and actions can lead to smart money imprints by the younger generations around you.

Anytime is the Right Time – One simple question framed in a positive tone may provide the right spark to get a money conversation underway. I call it “financial curiosity.” And you can be financially curious with your child anywhere – at the mall, at the supermarket, in his or her room. If your teen makes a purchase, inquire about it with sincere interest. Out of non-threatening curiosity I ask my daughter for her reasons behind purchases and services she uses. She never feels like I’m prying (at least I don’t think so).

What compelled your child to buy a particular item? What does it do? What other choices are available? Is this item something the family may find useful? How does it work? Will this make their lives better, easier, more fun? How so? Was it a challenge to save up? You’ll gain information about the motives behind purchases and discussions regarding other money matters will blossom.

Get Them Involved – Talking about money is fine, however, it doesn’t compare to having your kids experience money management firsthand – something I call “money active.” Have the kids be responsible for specific money projects, let them fully experience the rewards and feel the sense of accomplishment when the plan is executed.

For example, provide children an opportunity to budget a family vacation or weekend getaway and then all enjoy the fruits of the labor. Partner with them to set savings goals for future purchases, especially the bigger-ticket items. Assist your teens with the research, or offer to match a percentage of the purchase price as a reward for good money habits.

Are the products or services the kids are using viable investment prospects? Now open the door to the investing conversation. And what better way to ignite the money flame — a possible investment into a company that manufactures a product or provides a service the children are passionate about.

It’s OK to Seek Help – So you’re still having difficulty getting the conversation going? Let someone else help you get the fire started. Seek assistance from an objective person who would be willing to provide money lessons to the kids; perhaps someone in the family, or a friend successful with money management, would be excited to share an experience. Don’t be reluctant to seek assistance and allow someone else to tee up your involvement. I’ve witnessed grandparents do a great job at getting through to the grandkids with stories and financial lessons.

Make Money Real Life – Be candid. Your kids like to know you’re human, and occasionally make financial mistakes. They also want to understand what you did to correct a money mishap. You may need to be a bit creative; children are accustomed to movies loaded with action and special effects.

Take time to compose a compelling story about how you faced a financial obstacle head on and came out a winner. Or if the story doesn’t end well, explain specifically what you learned.

Kids are very comfortable with technology so become “money active,” and take advantage of online money-management tools to help kids achieve financial success. For example, at www.moneyasyougrow.org there are activities that guide you to help the children work through money milestones grouped by age, beginning at 3-5 year-olds.

Begin a Money Mindset. Out of each dollar of allowance, figure out how much goes to savings, to charity and to spending. You need to help children establish guidelines early on. There are several products that make this division of money fun. Like the Money Box available from www.Moonjar.com. Also, there is an item called Money Conversations To Go which can jumpstart fun family discussions about money.

Have Children Handle Coins – It’s a great way to get very young children comfortable with money – When my daughter Haley was 3 I had her handle nickels, dimes and quarters, they were shiny and fascinated her. From an early age I would have her place the coins in a bank and shake up that bank from time to time and it would sound like a rattle of sorts. Placing the coins in the bank was a sense of accomplishment for her and it started her on the road to fiscal success – Now, at age 16, she’s become a first-rate saver!

How About a Funky Money Diary? Purchase a three-subject notebook to help the younger kids keep track of the money they want to spend, share & save. Decorate with stickers related to money or cutouts of items the kids want to purchase in the future. Interactive fun!

The most memorable interactions with children about money are ones you may overlook.

You’ll find discussing money at different times, in various places.

Out of nowhere.

It’ll become so routine, you’ll be smitten with delight.

Then you can focus on the tough discussions.

Like sex.

I’m still not ready.

4 Sweet Money Lessons – Straight From The Toaster.

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Posted on April 17, 2015 by Richard M. Rosso, CFP

As featured at http://www.nerdwallet.com.

Pop Tarts almost killed me.

The foundation of Mom’s parenting philosophy was the use of food to pacify me. Pop Tarts, either hot from the toaster or “raw,” as I called them, straight out of the box, were my favorite. My reward for good behavior was delectable, grape and occasionally iced.

Three boxes a week for seven years. Do the math. No wonder I have a permanent roll of fat around my belly.

The iconic Kellogg’s toaster happiness is turning 51 with no signs that its 32-year streak of increasing annual sales is in danger. And my ability to discover money messages in unusual places continues as well.

Money lessons arise like the fruity-sweet smoke of a hot toaster with a pastry left in just a little too long.

Here are four random thoughts that will help you add a healthy balance (pun intended) to your financial health.

1. Finances don’t need to be so serious all the time

It’s OK when money is sweet and replete with empty calories — in moderation. For example, I buy a scratch-off lottery ticket on occasion just for fun. The odds of winning are not a factor in my decision. The thrill and anticipation of the remote chance of winning is worth $2. The ROF (return on fantasy) is a bargain. Pop Tarts and other sweet foods were considered a staple in my childhood household. That’s not a good idea. It’s OK to splurge; I encourage it as long as spending limits are established and monitored.

2. Patience has rewards

Did you know Kellogg’s was sued for damages after a Pop Tart caught fire in a toaster? Boxes now carry a warning about fire risk in a toaster. Those things can get hot. As a kid, most of the time I wouldn’t wait and forged right ahead — I’d take a piping-hot mouthful of fruit filling without worrying about the repercussions.

The length of time people hold onto stocks has been falling rapidly since the 1960s and now stands at roughly six months. Investing, especially in stocks, is a long-term discipline. If your holding period is three years or less, then you’re not investing, you’re gambling. Prepare to be burned. Work with a professional to understand your underlying motivations for investing and try to match your life goals or benchmarks with the appropriate financial vehicles. You’re more apt to enjoy the cool sweetness of being a successful — or at least a levelheaded — steward of money.

3. Variety isn’t diversification

Pop Tarts come in 25 flavors. Over the years, Kellogg’s has experimented with different shapes, offbeat themes (like Ice-Cream Shoppe flavors), even a Pop Tart variety that was split down the middle with two separate flavors in one pastry. Most of those variations lasted only a couple of years. The original flavors like grape, strawberry and brown sugar-cinnamon have endured.

The financial services industry is, for the most part, a “popped-up” marketing machine, full of air and seeking to create products that promise diversification but often fail to do so. Costly hedge funds, and inverse products that promise protection in down markets, are not necessary to achieve diversification or enhanced returns. If you’re seeking true diversification from stocks, consider guaranteed investments like U.S. Treasury securities and cash, which are part of a lean and levelheaded diversified portfolio.

4. Icing is fun, but it’s not everything

The first frosted Pop Tarts debuted in 1967 when Kellogg’s discovered that icing could withstand the heat of a toaster. The foundational concept of this legendary confection remains basic: sweet filling surrounded by a plain, pre-baked, flaky pastry crust. Yet the simple brilliance of a Pop Tart has endured for decades.

When managing finances, the least complicated rules are still worth following. Saving at least 10% of your income annually, monitoring spending, keeping credit card and other unsecured debt levels to a minimum, establishing an emergency cash reserve and investing to reach longer-term goals — these never go out of style or lose appeal.

Sure, it’s fine to add a sweet kick to money basics. For example, taking calculated risks like investing a portion of your assets in emerging-markets stocks and bonds, placing money in sectors or asset classes that have recently underperformed, and investing in learning new skills to increase your value in the workplace can top your basics off nicely.

As with Pop Tarts or any sweet treats, moderation is important. It’s the same with your money behavior. You shouldn’t pursue either extreme deprivation or all-out splurging.

Wealth is built in moderation.

I blacked out from eating three boxes of Pop Tarts during a 1970s Saturday morning cartoon block. I’m not proud of that experience, but I am wiser for it.

Just like the advertising campaign claims they’re “crazy good,” so can you be by following the lessons straight from a beloved toaster pastry.

Four Words To Better Retirement Planning.

Posted on June 17, 2014 by Richard M. Rosso, CFP

As originally posted on http://www.nerdwallet.com.

What are the obstacles that cause you to veer off course when it comes to retirement planning?

Increasing your odds of planning success shouldn’t be so complicated.

Solutions are obvious. There’s no magic.

Small changes in perspective or actions can lead to better results.

Hey, it’s never perfect either.

Remember the two main goals of the financial services industry:

1). To baffle you enough to sell you something you don’t need.

2). To force-feed you long-term bull market Kool-Aid to make you think stocks are a panacea (30% portfolio losses: Hey, no big deal. You have time on your side).

But you’re smarter than that, right?

Right?

My former employer’s retirement simulation is so happy-go-lucky and optimistic (because every market is a bull market), it reminds me of Homer Simpson’s happy dream romp through chocolate town.

It’s toilet paper.

Don’t fall for the hype. Don’t even wipe with it: You’ll get a rash.

Maybe it comes down to simplicity.

Let’s start with four words.

Random Thoughts:

1). NO. Recall the habit of lending money to friends and relatives who rarely make efforts to repay. It’s time to make your retirement strategy a priority and use the word “no” often. You don’t need to explain. It’s an uncomfortable but necessary perspective. At the least, you’ll need to be selective, perhaps formal in your agreements going forward. The health of your retirement plan is at stake.

If you’re passionate about helping, consider the support provided, a gift. Set rules at first if saying “no” is difficult. For example, establish a specific dollar amount in the budget for purposes of lending. Never lend to the same borrower twice in the same year. Decrease the allotment by ten percent every year until eventually it’s so insignificant you’ll feel too embarrassed to say anything but “no.”

“No” is personal empowerment. Think of the word as a boundary – A verbal line in the sand that deepens the territory you’re clear won’t be crossed. “No” is a confidence builder. It allows greater focus on the “yes” you need to succeed.

Consider how postponing or decreasing saving for retirement by placing priority on education savings plans or by taking on excessive debt to assist children with college funding deserves a “no.”

Naturally, you want your children to prosper however, when the time comes to retire, there’s no loan, financial aid or scholarship opportunities available to you. The kids have options for funding. You don’t. A hardline “no” isn’t necessary; a change in perspective followed by action may be good enough.

Understanding when a “no” is necessary to avoid a derail of your plan is art and science. A set of rules and setting expectations can help clarify when a “no” needs to surface. Perhaps you can partially subsidize education costs or seek compromise (a public, in-state option vs. the private university cost).

In eight out every ten plans I’ve designed, retirement is postponed by at least six years when parents decide to foot the entire education bill. Saying “no” to full boat means your retirement boat floats sooner. I’ve witnessed retirement postponed a couple of years in most cases when compromises are made – a big improvement over waiting six years.

Mitch Anthony, author of the book “The New Retirementality” describes the modern retiree as trying to strike a perfect balance between vacation and vocation. In other words, maybe the perfect retirement plan is to say “no” to retirement. The traditional perception of retirement is indeed dying.

I work with a large number of part-time retirees who consult or are employed a few days a week to keep their minds active and say “yes” to continued contributions to the workforce. Meaningful engagement in a work environment is important to this group however, those retirees who do work are ready to say “no” at a moment’s notice if their employment situation grows unenjoyable or less meaningful. They have much to offer and their experiences and skills are valuable.

As best-selling author and good friend James Altucher told me:

“Never say no to something you love, so you never retire.”

His new book co-written with Claudia Azula Altucher, “The Power of No: Because One Little Word Can Bring Health, Abundance and Happiness,” will be necessary reading and provided to those I assist with retirement planning.

Ponder the “no” opportunities. Start with the actions you believe postpone or negatively affect what I call “retirement plan flow” which is anything that prevents your plan from firing on all cylinders.

A client recently said – “I even stand straighter when I say no. It makes me feel good.”

2). WAIT: The most common mistake I encounter are retirees who look to take Social Security retirement benefits before full retirement age when waiting as long as possible can add thousands in additional dollars to a retirement plan.

I’ve had to say “no” to clients seeking to retire at age 62. And I’m not ashamed. What’s three more years? It goes fast. And waiting can be lucrative. According to a 2008 study by T. Rowe Price, working three years longer, waiting until full retirement age, and saving 15% of your annual salary could increase annual income from an investment portfolio by 22%. If you can handle five more working years and save 25% of your annual salary through that period (takes some work), then expect a surprising 50% more income in retirement.

Delaying Social Security benefits from full retirement age to age 70 will result in an 8% increase plus cost-of-living adjustments. Where else can you gain a guaranteed 8% a year? Of course, nobody knows how long they’re going to live but if you’re healthy at 62 and there’s a history of longevity in the family, it’s worth the risk to wait until at least full retirement age.

3). SELL: Based on a recent paper written by Michael Kitces, publisher of The Kitces Report and Wade D. Pfau, professor of retirement income at the American College, reducing stock exposure at the beginning of retirement then increasing over time is an effective strategy for reaching lifetime spending and portfolio survival goals.

The heart of the research is “Plan U” (for unorthodox in my opinion) — a “U-shaped” allocation where stocks are a greater share of the portfolio through the accumulation/increasing human capital stage (makes sense), decrease at the beginning of retirement, and then increase again throughout the retirement period.

The concept of reducing stock exposure early in retirement and increasing it later sounds highly counterintuitive – although from a market and emotional perspective it’s plausible, especially now.

First, be sensitive to your mindset as shifting from a portfolio accumulation to distribution strategy can be stressful. Focus on financial issues to allay uncertainty like (don’t let greater stock exposure add to stress), household cash flow and retirement portfolio withdrawal strategy. Gain and monitor progress with a financial partner or objective third party at least every quarter for validation and adjustment. The first year of retirement is an opportune time to step back from stocks especially as you feel uncertain and occupied with what I believe are more immediate concerns.

Second, stocks are not cheap based on several long-term price/earnings valuation metrics. Selling if you’re close to, or at retirement can be an effective strategy. Regardless, you may need to rebalance to free up enough cash to begin retirement account withdrawals by trimming profits in the face of lofty valuations.

Not a bad idea. Yes – sell, not buy.

As of the end of May, the P/E 10 which is based on the ten-year average of actual corporate earnings stands at 24.9. Since the historic P/E 10 average is 16.5, the current bull indicates an extreme overvalued condition.

Last, even though the key word is “sell” don’t forget to periodically add back to your stock allocation. Get the topic on your radar and continue the “U” formation after two years in retirement have passed. By then, you should have greater confidence in your overall plan and settled into a lifestyle pattern that suits your well-being.

4). SHIFT: Be open-minded and willing to alter plans as required. After two devastating stock market selloffs since 2000 and structural changes to employment including the permanent loss of jobs, we are growing accustomed to dealing with financial adversity – shifting our thinking to adjust to present conditions. Actions outside your control – poor interest rates on conservative vehicles like certificates of deposit, can disrupt retirement savings and cash flow. On average, the Great Recession has motivated out of necessity or fear, the desire for pre-retirees to work longer and continue to carefully monitor their debt burdens.

In addition, shift your thinking about continuing to save aggressively in retirement accounts as you get closer to retirement. If 80% or more of your investments are in tax-deferred plans, and you’re five years or less from your retirement date, I would consider meeting the employer match in retirement plans and saving the rest in taxable brokerage accounts. This strategy affords greater flexibility with tax planning during the withdrawal phase as generally, capital gains are taxed at lower rates than the ordinary income distributed from retirement accounts.

A qualified financial and tax professional can create a hybrid process where funds are withdrawn both from tax-deferred and after-tax assets. The goal is to gain tax control by not ending up in a situation where ultimately all distributions are in retirement accounts which will ostensibly be taxed as ordinary income. Your strategy requires close examination of how to blend all investment account distributions to minimize tax impact.

Shift your attitude about annuities. Look beyond the bad press and overarching negative generalizations you hear from financial personalities in the media – “Annuities are bad.” Are all annuities bad? No.

Several types of annuities exist. Some come with overwhelming add-on features and are difficult to understand. You’ll know when to step away. Others are expensive and should be avoided. For example, variable annuities with layers of fees are a bad deal. I find little benefit to them in retirement planning.

The greatest purpose of an annuity is to provide an income you cannot outlive. In its purest form, an income annuity whether immediate or deferred can be used to bolster the lifetime income from Social Security.

As you budget, total how much is required to meet household essential expenses, indexed for inflation: Rent, mortgage, utility bills, real estate taxes, food, gas, automobile payments (you get the picture). From there, work with an insurance representative (could be your financial partner), to calculate the investment required in a deferred income or immediate annuity to cover mandatory expenses along with Social Security.

An annuity investment takes over some of the burden of funding retirement; it shifts risk to an insurance company which increases the odds of portfolio longevity and or having the money you seek for fun stuff like travel and hobbies.

Retirement planning satisfaction can happen.

Occasionally, we create obstacles by accident.

Simple words can be powerful tools to cut away the confusion and settle your mind.

What other words will you consider?

Hey!

Not that one!

The Money Magic Mindset – 5 Ways To Get There From Here.

Posted on May 24, 2014 by Richard M. Rosso, CFP

Some people are their own worst enemies.

This isn’t some new-age bullshit.

If you berate the person in the mirror and think or speak in defeatist terms, then you’ll walk a loser path word bricks have laid out for you.

So what are the words, phrases and sentences that can help you alter your current thinking about money?

How can you create a positive financial feedback loop?

Random Thoughts:

1). The words you say to yourself are everything. Even if not exactly true (yet), what you convince your mind of, will eventually happen. It’s called imprinting. You’re moving your thought process from negative to positive. Here’s how to switch it up. So you tell little white lies to yourself. Big deal. As long as their positive, who you hurting?

Give yourself a break.

Instead of: “I’m a spender,” say “I’m a saver.”

“I will use cash over credit.”

“I will save 5-10% of my salary.”

You’ll be receptive to take constructive action if you train your mind to feel good first about the decision you made. Say it then do it.

Get your lazy ass online to your 401(k) account and increase your contribution by 2% this weekend. Then worry about where the money is going to come from. You won’t even notice the change.

2). Ask yourself better questions. Never use the word: Why. Why sets the stage for financial failure and mental obstacles. Why can be a death sentence.

Replace why with how.

For example, “why don’t I receive a raise?” is defeating language.

Think: “How can I receive a raise?” which forces the mind to create action steps to the goal you’re looking to achieve.

3). Create a “Crossroad Statement.” A “Crossroad Statement” is a “blood” declaration to yourself; it’s when you finally admit your current financial situation is not where you want to be.

It’s a decision in writing, to make a change – “I will be credit card debt free by February 2015.”

Keep your CRS with you; place it as a reminder in your smartphone.

4). Shamelessly employ coaches. Want to make your “Crossroad Statement” strong? Share it with people who will hold you accountable, keep you on track and celebrate your success.

5). Failure is power. Yeah, you read that right. So you fail at something, so what? What did you learn? How will you use the lessons to move ahead?

Words are everything.

The ones you employ to money map your mind will make a big difference to your future.

The Zombie Way: 7 Life Lessons From The Living Dead.

Posted on April 26, 2014 by Richard M. Rosso, CFP

Zombies have been taking over your city whether you realize it or not.

It’s been happening for decades.

Good enough reason to keep your doors locked, people! Not that locked doors help for long. After all, a mere few zombies can turn over cars so bolted doors and measly plywood over windows buys you just enough time to say goodbye to the loved ones.

Sooner or later you’re on the menu.

Zombies are so white-red hot right now; these decaying, staggering masses or the deadest of “us,” easily steal attention away from popular (yet horrific) headlines from the likes of a very living Kim Kardashian stripping down or Lindsay Lohan losing her top at a nightclub. Who wants to see a naked zombie exposing her breasts (except out of macabre curiosity?)

Well, I do! But that’s just me.

The living dead have risen in prominence. Taken their rightful place. Gnawed their way to the top.

For decades their popularity has ebbed and flowed yet their presence has never truly decayed. And now they’re everywhere you turn. It’s the zombie time to shine! Albeit they’ve lost a healthy glow shared by their breathing cousins but it doesn’t matter.

I don’t see zombie popularity diminishing in the near future.

As economic conditions remain strained and public unrest persists, the fascination with these rotted maggot shells lives on. Several investigations exist to prove my case. I won’t bore you with them.

I’ll share my own rationale behind zombie fever. Also why I’m scared of them and admire them at the same time.

First, think about this:

They don’t fret over paying electric bills, meeting mortgage payments or college tuition
costs. The days of anguish over the daily money monkeyshines of the living are gone! Surviving takes on a totally different perspective.

How we relish those with reckless abandon who can just chase and bite, stagger and gnash like rabid animals.

The Government has even been known to send dead people unemployment and social
security checks but they have no need to cash them. I’m jealous. The mortal coil
of everyday fiscal obligations is broken. We are envious of the financial freedom. Who
wouldn’t be?

Zombies are brazenly wasteful and they don’t care!

It gets me frustrated. If the living dead are so ravenous why do they take no more than two bites of prey and move on? There isn’t an endless supply of warm bodies to nosh on.

The undead need to do better with food handling. What about all those starving zombies in China? Even when they decide to dig hard and tear deep through a victim zombies don’t appear to be eating. They play with their food (in this case elbow deep in intestines, organs and other nondescript red slimy entrails). If I enjoyed my food this much as a kid I would have been in enormous trouble with the parents.

Perhaps I’m missing the point.

Maybe zombies don’t require sustenance. Now that I ponder, why would an animated rotting corpse need nutrition? Could it be they bite primarily to propagate the undead population?

They don’t appear to be very friendly to each other. I don’t witness any bonding among zombie hoards that convinces me they derive any benefits from increasing the undead population through procreation. I witness no hand holding or team work. They don’t even trip over each other.

Zombie French kissing seems wrong, too. Some don’t have tongues.

In the AMC hit television series “The Walking Dead,” a believable explanation for the
genesis of said program title emerges.

At least it allays some of my frustrations over the deliberate waste of the fresh walking food supply.

In the Season One finale “TS-19,” the sole remaining doctor at the Center for Disease
Control (gingerly insane although very sage from a lethal combination of: Isolation, shooting his wife known as test-subject 19, and acceding to the awful truth
that there is no cure for the afflicted), outlines findings as a zombie zealot, I find plausible.

Dr. Jennings explains:

“The disease invades the brain like meningitis (ok I heard that’s bad).

The brain stem is restarted. Gets them up and moving (makes sense to me).

Most of the brain is dark: Dark, lifeless, dead. The frontal lobe, the “you,” the human part
is gone (it does appear that way).”

I’ve concluded (I think), animated dead folk are indeed ravenous.

They don’t possess the human or humanity (what’s left is a tiny spark of light at the base of the brain) to make the most of preserving the food source.

Dr. Steven Schlozman, a psychiatrist, Assistant Professor at Harvard Medical School and author of the book “The Zombie Autopsies,” would agree with Dr. Jenner’s conclusions and sizes up zombie appetites in a further professional manner perhaps because he never lost a loved one to a zombie nibble:

“The ventromedial hypothalamus (in the brain), which tells humans whether they’ve had enough to eat, is likely to be on the fritz in zombies, who have an insatiable appetite.”

I sort of admire how “walkers” (what zombies are called on “The Walking Dead,”) can be wasteful (and eat whomever they want) without any repercussions. No weight gain.

Damn them. Damn them all even more than they’re already damned. Jealous.

Zombies don’t need to exercise and it’s inevitable they’re going to lose weight without
much effort. I so hate them for this. As a matter of fact even though Hollywood never
seems to get it, if survivors can wait long enough, hunker down. The dead are literally going to rot.

It’s not like they’re embalmed or preserved. They’re sauntering about through
the harshest of elements. Eventually they’ll be dragging around close to the ground. Clumps of harmless, fermented flesh if you’re patient enough. You can then brazenly walk up and do a step and squash on what’s left of a head. Simple.

My boots are ready!

Zombies don’t poop. They’re no longer human, therefore they can’t blow up the economy, housing, stocks, banks,the currency, gold, or whatever else financially related. It would be a relief not to be bothered with reading all the financial publications that consume me.

Since zombies don’t experience fear, avarice, lust and all other very human vices I can’t foresee how they could fuck up the economy any worse than we can. My belief is corporate America is ingenious enough to eventually replace living employees with the undead at a moment’s notice.

They don’t require wages, benefits, time with family or friends.

Can you see the writing on the wall here?

Zombies no longer feel torment, guilt, revenge, passion, regret. They don’t hold baggage from parents who messed with their heads.

No cheating spouses or backstabbing friends to fret over. No Viagra (they’re stiff enough). No looking to slice up the boss (unless it’s for the purposes of eating.) Bliss!

Zombies can’t run no matter how some movies mess this up. I have a major issue with this one and I’ve studied zombies since I was ten years-old. This is purely an exploitation move created by film makers to make audiences feel more vulnerable and scared. No thank you. I’m scared enough by the staggering, original kind.

Dr. Schlozman would back me up big time here. The good doctor in his book takes his
zombies seriously. As a matter of fact, when the zombie apocalypse finally arrives, survivors must find a way to the doc. His extensive study will be invaluable.
These primal hollows of our living selves just cannot run. Done.

From Doc Schlozman’s “The Zombie Autopsies,” the wisdom flows freely like blood from a gaping bite wound:

“Slower degenerative processes in the cerebellum explain the initially intact gait of the
infected, even though they all become increasingly unbalanced with time.

That’s why they hold their arms out in front of their bodies: for balance and increased coordination.

They just want to remain upright, on their feet. But the process continues, the cerebellum degrades, liquefies. Virtually all late-stage ANSD humanoids ambulate via crawling.”

AH-HA!

See? Running zombies are an abomination! Listen up movie-makers! I prefer my zombies slow, staggering and overwhelmingly off kilter. I’m a purist.

FYI – ANSD stands for: Ataxie Neurodegenerative Satiety Deficiency Syndrome. The
internationally accepted diagnostic term for zombiism. Thanks again Dr. S.

Zombies should stink to high heaven so why don’t victims smell them coming from at least
half a mile away?

I once went an entire week without bathing in 1989.

That’s after sex with two different women, eating several boxes of Entenmann’s orange-swirled chocolate Halloween cupcakes, ten Big Macs and washing it all down with large cups of coffee laced with heavy cream.

I recall plenty of female nose crinkling and waves of disgust. Good thing I didn’t leave the house.

You rarely see disgusted looks on the faces of the living. I never heard once in a zombie movie.

“I can’t handle the smell of these walking maggot bags.”

“My eyes are watering from the stench of these fuckers.”

“I’m going to vomit from the ungodly odors these dead things throw off.”

Well, to pay homage to the terrific writers of “The Walking Dead,” like Nichole Beattie (who also has great hair that frames a perfect brain) there have been various references to puke, puking and zombie dead-body odor peppered throughout episodes.They’re passionate about authenticity unlike most who cater to us zombie zealots.

I salute them.

I passionately believe my teachers and friends – The Altuchers (James, Claudia), Kamal Ravikant, Srini Rao, prosper from personal tribulation and help alleviate the suffering of others.

I wondered: Can these sages learn from the behavior of the undead? I believe so.

The dead providing life lessons sounds strange, but I’ve been humbled by the dead. Their teachings sit deep in my frontal lobe.

In many ways, those who have passed are by my side more than ever. They might as well be walking alongside me in following dark shadows.

I’ve learned a valuable lesson over the last two years as I’ve studied zombies:

Hey asshole: Get out of the grave you’re still alive!!

What caused me to living die? What causes you to living-die every day?

Working for corporate America (I affectionately call “Corpse America”) was a living death. Every day the corporate overseers would concoct creative ways to squash my spirit. I was under the cancerous thumb of a bloated financial services firm that lost its ethics and I was rotting away. Fast.

There was less time being productive and more mental resources wasted on complying with draconian-like rules and impossible sales goals that were progressively getting worse.

I felt powerless, sick, listless, diseased. I was passively allowing my brain to go dark.

I was able to fight off the corporate infection for years. Then I couldn’t battle any longer.

My immunity for bullshit broke down. I gave zombie-ism permission to wash (bleed) over me. Limbs went limp. The stamina and passion for my business was draining fast like black blood from a gaping neck wound.

I loved the clients and co-workers but felt truly powerless over my destiny. I was bleeding respect for myself and for the first time in years, the confidence in my skills was drained. I was frightened all the time and the dead were closing in on my space.

No matter how much wood I nailed over the windows they just. Kept. Coming.

Was I the only one who felt like this? I don’t know. I could see the light fade
from the eyes around me. Others were going to allow their souls to flee the mortal cavity.
There were the kids, or the mortgage, the car payment or the necessary financial
support for the stay-at-home spouse. Everyone was overextended.

Surrender felt like the only option. It was like exposing your most important parts willingly to a nasty zombie bite.

Ongoing bad health habits sooner or later, are a coffin filler.

In 2006, my idea of diet rarely strayed from a cheeseburger with a side order of donuts followed by another cheeseburger and six more donuts.

That was 50 pounds ago. I managed to do enough damage to my organs in one year to end up with Type 2 diabetes, high blood pressure and cholesterol level approaching 280.

I was so out of shape even a zombie-like stagger would have put me out of breath. Having diabetes scared the zombie out of me. The thought of going blind or losing a limb was more than I could live with. Dead man walking (on one leg) was not going to happen!

I changed overnight. Oh I’m not perfect, but the disease was a blessing in disguise. I needed something frightening to jump start me.

It worked.

Think about it: What will jump start you to take your health seriously before it’s too late?

Big debt is a flesh biter. Excessive debt levels are a lethal weight on your shoulders and will suck the living life (and death) from you. Whether it’s your household or a government, too much debt is a brain drainer. Oh, you’ll still be able to walk around but dead inside you will be.

It’s worse for your situation than for most governments since you can’t create your
own money (well legally anyway). Too much debt in any form will have you unbalanced
and rotting in no time.

Media overindulgence, especially television, zombifies the frontal lobe. I hate to feel this
way since I know so many terrific media people. It’s just that television especially pseudoreality (not real reality because who wants to watch that?) campy talent and political drivel all eventually erodes the stuff that makes you “you.”

Just monitor and limit your intake.

Writing and reading for at least an hour a day keeps my frontal lobe in a less gelatinous
state. Find what works for you. Even playing a board game might help. Not
Sudoku. I’m convinced zombies created that game. Sudoku players fill out every Sudoku puzzle in every magazine at every doctor and dentist office. It spreads like
chicken pox. Stay away!

Syble Solomon, creator of Money Habitudes™ writes about how the television virus
attacks and tempts you to spend money:

“More subtle are the images of what is
“normal” that are created in most television
shows and movies. Usually people
are well dressed, have great accessories,
drive nice cars and live in up-scale comfortable
housing with expensive furniture and beautiful kitchens. You rarely see anyone
paying for anything on TV or in the movies.”

You ever see that fancy apartment on the TV show “Friends?” How did those losers afford it? You begin to believe that’s normal! It’s NOT. Unless the women were high-end call girls working overtime. Then it’s a possibility.

What knowledge you can gain from the walking dead. See? There’s so much.

You’re not the shuffling soulless yet. Be thankful for that. The zombie inside captures
your glance in mirrors. It so desires to permanently deprive you of all the colors
that make you warm and human. It will win if you let it. It works to tempt you.
Even though it feels like you’re dead sometimes, of course you’re not. The nice thing is there’s a cure for your zombie transformation. You can come back.

I know how some of the stuff I wrote about earlier can fry you from deep inside – the
job, the bills, the spouse, the boss, the debt.

Then there’s the receding hairline, the erectile dysfunction. How do you handle this?

Discover ways to restore faith and revive the soul. Search out, step back and document the humans, actions, things that keep you alive and grounded.

It’s healthy to be wasteful once in a while. Put the zombies to shame.

I’m not alluding to tossing crisp, new $20 bills from the sunroof of a moving car (I
tossed a Shania Twain CD from a moving vehicle once). I’m not even referring to
willfully taking a teasing bite out of a filet and discarding the rest just for kicks.

I allocate one day a week (usually a Saturday because I’m a horrible creature of habit,)
to partake in completely wasteful (occasionally disgusting) activities and lovingly
simmer in my own juices.

I take my time closely examining the latest edition of Maxim Magazine, an occasional Playboy, Men’s Health. I eat Chinese take-out in my underwear, indulge in endless Three Stooges episodes on DVD. I strive for a zombie-like state of non-awareness. Is that a word? You get the picture (I’m sorry).

Decompression is a good thing. My theory is that naked zombies really comprehend this chilling out thing. I admire free spirits (living or living dead). Unfortunately, there’s a real scarcity of nude zombies in movies and television. It’s blatantly pitiful (NB, can you work on that?).

The undead have been stalking society long before they became mainstream. They’re
equal opportunity, infiltrate all races and cut a bloody swath across political lines.

They gain attention when economic conditions deteriorate or improvement is anemic.
They pop up during times of social unrest. Since the last recession, the most severe in
decades, zombies have been downright frenzied.

When things are good, we’re making money or generally less turmoil exists in the world, zombies are pushed aside, beaten down. Mocked. Contained.

As much as I love them because I enjoy scary thrills, I long for the days when zombies are disrespected again.

I don’t recall zombies so relevant and overwhelmingly popular as they are today; I’ve been keeping track of their ebb and flow since I first bug-eyed watched the black and white cult classic film “Night of the Living Dead,” by zombie Master Muse George A. Romero, on a crappy plastic encased thirteen-inch black and white TV. 1973.

Romero: The Zombie KING.

In 1968, the year “Night” was released, the Vietnam War was released, the Vietnam War was raging, civil rights protests were grabbing headlines and Martin Luther King, Jr. was assassinated.

The film cost a grandiose $114,000 to make which even then for a movie was a pittance of a budget. It has grossed over $30 million worldwide. What a return on investment!

Romero created a controversial stir by featuring a black man, unknown stage
actor Duane Jones, as the brave and resourceful hero while most of the men (white) in
the cast were blowhard, wishy-washy or backwoods white folk.

Romero also plays up the contemporary theme of government distrust as dead
body brains are “activated” (allegedly) by radiation expelled from the explosion
of a space satellite, the “Venus Probe.”

Throughout the film, there are shots of military officials (actors) fleeing from television news cameras all the while denying the connection between the radiation and the returning dead who make a meal out of the living.

The bitter irony of the movie is how Ben (Duane Jones) solely survives the night of ghoul attacks by locking himself in the basement of an abandoned farm house only to be shot in the head the next morning by a white member of a sheriff’s posse as he’s mistaken for one of the remaining zombies roaming the countryside.

I remember watching. Scared to death, frozen. Shocked. I recall muttering the words:
“This really sucks.” I hated the ending but I understood the point Romero was trying to make. Well, I think I do. Back then, I interpreted the messages through my warped mental screen. I still believe my interpretation holds up.

First, why bother to survive a zombie hoard if you’re going to be shot in the head by
your own people (the living kind) anyway? What a waste.

Second, make more noise and scream actual words like the living (not guttural grunts like the dead) if you see a posse out a window! Ben, Ben, Ben. You were too quiet. I understand you just went through hell and you’re bit dazed but if it’s me I’m screaming like a sissy living, defecating human who just soiled his Fruit of the Looms!

Third, based on the social turmoil of the 60’s, I think Romero sought to use the film to
convey messages about the futility of the Vietnam War (conflict) and the tragic assassination of MLK, Jr. Go ahead fight the good fight, be honorable, stick to your convictions, but understand there is still a great risk. The hero can indeed fail or die. I hated how Romero killed off Ben at the end (I know I mentioned that, already).

Fourth, an interracial couple holed up in a farm house (even when the female is young,
blonde and completely unresponsive) doesn’t mean sex is definitely gonna happen. Huh?

Not when Ben is around! I was wondering when he was going to rip off Barbara’s (played by a very blonde actress named Judith O’Dea), clothes but all he did was comfort and protect her. Well, he did knock her out with a hit in the face but it was perfectly understandable. She was unhinged after watching her brother become zombie brunch. Like the opening of a porn flick, yet BEN stays out of trouble.

Even after she clawed at her scarf saying “it’s hot in here, hot.” NOTHING. Ben,
you helped me understand what being a gentleman really means. Can you imagine
if Romero had Ben have his way with Barbara?

Talk about controversy in 1968!

And…

Like their walking brethren, the financial decayed are here to stay!

Banks – With many banks domestic and global, systemically risk averse and making
thinner profits they seek to bleed you but instead of teeth you’re getting bitten by fees – higher checking account fees, debit card usage fees, fees to talk to a person, wire transfer fees, monthly maintenance charges.

Forget that. Fight living death by fees!

Consider switching to an online bank as long as you’re comfortable with lack of a branch location to walk into. I haven’t used a brick & mortar bank in years.Good riddance.

Check out the best online banks and checking accounts at www.nerdwallet.com.

Make sure the bank you choose is covered by FDIC and you don’t breach the coverage limit which is $250,000 per depositor.

Also, banks currently are not required to play by the rules – due to suspension of accounting rules whereby assets on the books are not priced to what the market would actually pay for them, there are banks that most likely are insolvent (or dead) yet still alive!

Plainly, if it wasn’t for the suspension of this rule called “mark to market,” poor performing banks with liabilities exceeding what assets are worth, would have been truly dead a long time ago and not still occupying a location near you.

When I was ten, mom would leave me home alone on Friday and Saturday nights until she found out my babysitter and her girlfriends were dancing naked in front of me during late-night TV’s Don Kirshner’s Rock Concert.

What did I know? I was pre-occupied with covert G.I. Joe missions. I never minded the
nude dancing. I’d glance over once in a while. It looked fun and free. I was scared to be
alone on occasion but mom needed her boy time I guess.

I owned the most extensive G.I. Joe collection in the neighborhood until my mother
made them disappear one by one. She was like a sniper/kidnapper the way she picked them off along with my other toys.

Especially cool were the Joes with fuzzy hair and beards. I never really embraced the Kung-Fu Grip line of brave soldiers for some reason.

We recently moved to a second floor apartment adjacent to a stairwell. The halls on weekend nights were lively, especially after midnight. Kids making out, the occasional marital fight spilling out, enriched with curse words bouncing off hallway walls, outright screaming.

I can still remember the first time I watched “Night of the Living Dead” on an ABC Saturday evening late show. The idea of zombies was sort of goofy to me before then. I believe I watched Scooby Doo trip one up on morning television. To me they were clunky cartoon relief. In black and white, late at night and thirsty for blood, zombies gained more of my respect. Scooby Doo was either brave or just a dumb ass.

It was that damn, dead woman at the top of the stairs. The devoured face. That eyeball staring at me, piercing me through an old RCA Television screen.

My perception of zombies had changed. Forever. They haunted me from that moment.
If I would have known how popular they were to become, I would have given up on this
money management business a long time ago. There was a fortune still yet to be made exploiting the undead.

According to the blog “24/7 Wall Street”, zombies are worth over $5 billion to the economy. Costumes, movies, novels, comic books, video games, television shows. All serious business.

From cult following to popular mainstream, the dead overpower the compensation of any cadre of top U.S. corporate CEOs who now make 400x what you do.

Oh no, I’m convinced. Zombies are here to say. Let’s review the lessons.

Random Thoughts:

1). Zombies represent our human weaknesses and loss of control over our environment. During periods of economic distress, their popularity festers. Fear of loss, lack of confidence, subpar gainful employment are prevalent today and will be as we slowly emerge from a housing, financial, credit, banking crisis atomic blast.

2). The living dead represent the vulnerability that lives deep inside our guts. It’s the human condition pushed to extremes. It’s the threat of loss. The loss of our ability to be human. A test under severe pressure. Up against the wall, you find out who you truly are. At this time, many of us feel vulnerable in our jobs, with our incomes, our relationships. In these times, zombies demand our full attention.

3). Understand what rots you. Stuck in a cubicle overseen by mindless middle management bosses, abrupt changes to your income, excessive debt, negative people, bad health choices. Hell, you think zombies are scary? Try to have an intelligent conversation with your boss. See if he or she can think independently from the infection swallowed daily from the corporate “stink” tank.

4). Political turmoil stirs the zombie hoards. Didn’t George A. Romero effectively teach us this lesson? There exists less faith in our leaders regardless of political party. Uncertainty allows the walking dead to herd, gain strength in numbers. In certain states, they may be allowed to vote. I’m not sure.

5). The economic system is still rotted and dragging dead feet. Five years after the worst financial crisis since the Great Depression, and the economy is still shuffling slow like a zombie in the August Texas sun. Below average economic growth, structural underemployment, first-time homebuyer malaise, below-average or non-existent employee wage growth, real median household income off 7% from 2008. This isn’t a healthy state of affairs, everyone. Actually, it’s fucking disappointing.

6). Corporations are now zombie factories. Especially the publicly-traded ones. Hey, as a money manager I love how corporate leaders hoard labor, work current employees to exhaustion, utilize financial alchemy like purchase back stock shares to boost earnings-per-share and stock prices. As an employee herding in a work force where labor is plentiful, where an individual can be replaced at any time by someone willing to accept half the pay, I would fight like hell to get out before the zombie infection takes me and I’m gnawing on an arm by moonlight.

7). It’s acceptable to go brain dead on a schedule. We’re an overworked society; people don’t take vacation anymore. Americans fear for their jobs when they take time away from their technology to be with their family. Set aside a few hours every week to indulge in a guilty pleasure. Hell, eat a pizza in your underwear. Drip salsa on your shirt and suck it off. Whatever.

1:00AM: The hall outside my apartment was especially loud. During commercials I checked the peephole but saw nothing. Then, from out of nowhere, it sounded like a sledgehammer at the front door:

BOOM BOOM BOOM!

I couldn’t breathe. I was paralyzed. I hit the red shag face down. I sought to go deep believing if I was part of the carpet, I couldn’t be discovered.

I belly crawled to the kitchen to knock the red Bell Telephone Trimline off the hook.

Thank god for extra-long pigtail phone cords. One tug and the receiver would be mine.
Stay calm. Hit the neat little lighted buttons for 911. Brooklyn’s Finest would arrive quickly to save me from the zombie with a weapon.

Then it stopped. As fast as it started the pounding stopped. The banging went dead. On
my television I saw hero Ben lighting a corpse on fire using a makeshift torch. Was I going to need to take notes? I could use a G.I. Joe as a torch. I bet that fuzzy hair would go up quick.

I was hesitant to call the police now. I was upright. I walked slowly back to the sofa facing the television. It was eerily quiet outside.

I crawled to the front of the apartment and looked underneath through lit-sliver between door and floor. Nobody. Nothing. No sound except for a heart pounding in my ears. I stayed pinned down. Not blinking.

And Ben died. Shot through the head. Just like that.

The next day I discovered there was an arrest close by. The ex-babysitter’s boyfriend had broken into several apartments. Items were stolen. Supposedly he was looking for a place to hide and thought he could take refuge in my apartment. He thought the babysitter still had a standing appointment with me.

That was the first and last time I was glad a young woman wasn’t around dancing naked in front of me.

That was the first and last time I was glad about a decision my mother made.

Fire the babysitter.

Taking Stock In Your Kids – 4 Initial Steps To Get Children Excited About Investing.

Posted on April 17, 2014 by Richard M. Rosso, CFP

As featured in http://www.nerdwallet.com.

Begin talking with the kids about investing sooner rather than later.

Interestingly, many parents find it awkward to discuss stock investing, especially with their young children. Some adults don’t feel confident in their abilities to do research. What I’ve discovered is the discussion with young children actually helps less confident parents become better stock investors.

The conversation raises the bar for teacher-parents and the children willing to learn.

It’s a win-win.

There are several milestones to reach. The adventure begins with these simple steps to consider when it comes to engaging the children.

Random Thoughts:

1). Build excitement – Creating passion around the investing process is important. Begin with a dialogue around the children’s brand loyalties (and they start at an early age). When I was young, I drove my parents crazy: I always “needed” the latest Mattel’s Hot Wheels car or Hasbro’s G.I. Joe action figure. I would only eat Kellogg’s Frosted Flakes, not the store brand.

So, what products are your kids passionate about?

Create short-term activities to build interest. Come up with a deadline for completion. For example, have the children begin and maintain journals of the products and services they like or use. Have them track the prices of those items over the internet or when you head to the stores. Remind the kids how the family is excited to hear about what they’re thinking and plan a family gathering around the topic.

One family created a big event around the journals. They had the children select their own notebooks and personalize them with money-related and other types of stickers. The kids paid for the supplies out of their allowances which created a stronger connection to the project.

2). Organize a family discussion – Once the children share their information at a family gathering, expand the discussion to include the products and services the family purchases or uses on a consistent basis, say at least twice a week. From soap to shoes, batteries to bandages – leave everything open for investigation. Nothing is off-limits. Now, you’re building a research list!

3). Watch your words – I’ll never forget when my uncle who was a specialist on the floor of the New York Stock Exchange, explained how I had the ability to own part of a large company. I was hooked. Wait: A poor kid from Brooklyn can own a piece of McDonald’s?

How does that happen?

The language used around stock investing is important to help the kids gain healthy perspective and a sense of pride in their selections and the investment experience, overall. The phrase “buying a stock,” is confusing when compared to “ownership in a company,” which in essence is what you’re trying to help the children embrace.

The concept of “stock” is nebulous for the younger ones to comprehend so it’s best to keep the language simple. Using words to connect ownership to investing creates a long-term investor mindset. You don’t want the children to focus solely on stock price movement; it’s best for them to strive to build discipline by focusing on the long-term value of a business – and all because you provided the perspective.

4). Begin with the concept of sales – It’s a good idea to introduce one simple concept before you begin specific stock-research homework. I’ve found kids relate well to the concept of sales. Whether you’re talking lemonade, girl-scout cookies, or school-related fund drives, children have an uncanny ability to understand that sales are positive and can lead to personal reward. It’s the same for a business. Generally, the more goods or services sold, the more favorable it is to the stock price over time.

You don’t need to work through these initial four steps alone. Partner with a financial advisor to facilitate the discussion or utilize books and other resources to jumpstart the process.

I recommend the book “Growing Money: A Complete Investing Guide for Kids,” by Gail Karlitz and Debbie Honig. Easy to understand and designed for children ages 8-12.

Want to engage the kids about several money concepts? There are 7 great money apps for kids reviewed by NerdWallet including my personal favorites – Virtual Piggy and Bee Farming.

You don’t need to wait (like I did) until you receive verbal cues from the kids to begin the engagement about investing.

You may never get them.

Even as early as age nine, you can begin a dialogue.

In the next report, I’ll take the investing discussion to the next plateau.

Until then, begin the conversations, start the journals, ignite the passions.

And the kids will never forget.

The Tolle of the Governor: 6 Steps to Rebirth.

Posted on December 1, 2013 by Richard M. Rosso, CFP

“Been on the road a couple of months.”

“By yourself?”

“Yea.”

“Where did you live before that?”

“I was in a town.”

“Were the monsters there?”

“No.”

“It was safe. Full of good people.”

“What happened?”

“He just – lost it.”

“Who?”

“Man in charge.”

“I barely made it out alive.”

Brian Heriot aka “The Governor – Philip Blake.”

As you rip from the past, forge a path to the present, there’s a good chance the man in charge will unravel.

Actually, it’s guaranteed.

There will be.

A tumble, a spiral down, to discover who you really are inside.

And burn out what’s haunting your sleep.

Because fire cleanses.

Extinguished fires leave imprints.

Black stains scar foundations.

I’ve learned to fear and respect fire of the mind.

You won’t notice change; at the surface you’ve built high fences. However, underneath, today’s thoughts are directing steps to a place you must go.

Actions will eventually get you where you need to be.

First you’ll stagger.

Over time, your gait will firm.

Deeper strides begin.

You don’t look back any longer.

Perhaps you’ll change your name to a person who was loved once.

Take on a new identity.

Not an issue. Whatever it takes. You do it.

Because a free mind can’t be shackled.

And ego is loosening the grip.

Yep: To gain a second chance at life you must die first. A piece of you must pass. In the worst case, an organ will be sacrificed. An element of your sanity, or stamina go to black.

You’ll fight until exhaustion.

Thrash.

Until death overtakes you.

You understand (finally).

There’s no other choice.

If you want to survive.

An enriched life dwells in acceptance, not resistance.

“Death is a stripping away of all that is not you. The secret of life is to “die before you die” — and find that there is no death.”
― Eckhart Tolle

When my father was in the care of hospice and dying one cancerous internal a minute, I wanted to accelerate the process somehow. I thought of insidious ways to fast-track his departure. There was red behind my eyes. I couldn’t understand why he needed to suffer.

I didn’t want to understand then how we all must suffer.

To climb to higher places.

Grow.

I was mad at dad for leaving. I hated how I held his hand for ten hours and for five of them it felt like gripping flesh ice.

He always did the opposite of what I thought he should.

As the man in charge he drank too much, womanized too much, worked too much.

Holy shit.

As the man in charge you do it, too.

Rain blood on the closest ones.

Splatter some on yourself.

And it never.

Washes off.

The man in charge forced rules you lost interest in a long time ago but still followed; you couldn’t understand why you carried them with you for so many decades.

Maybe the space felt comfortable even though it worked against your spirit.

It’s the clash. A battle. Between past and present. Ongoing.

And in acceptance you admit.

Finally.

You were indeed, the man in charge.

Suckered, duped, stupid, evil, resentful.

All you.

Good or bad. That was you for a time. A system-based creation from endless approval of others and false control – courtesy of ego.

Because you couldn’t control outcomes. You couldn’t accept the rejection, the change, the spin of the earth, until damage was done –

It’s not fight or die.

It’s fight, THEN die.

Your inner self, perhaps who you were as a child, was a pale light in the distance that eventually got snuffed out.

Realize..

You can only lose something that you have, but you cannot lose something that you are.”
― Eckhart Tolle

And a new man in charge emerges.

Out of the shatter.

Wakes up reborn.

Carrying new rules.

Stripped of ego.

Steeped in humanity; seeded from insanity.

New choices.

A higher self.

Rebirth.

And so it was for Philip Blake.

And so it can be for you.

Random Thoughts:

1). Be re-vulnerable. Look – I created a word. Crash through the high walls. Allow vulnerability to live again. You’ll need to practice. High fences just don’t fall. You’ll need to consciously drive through them every day. I’ve learned to be open to and aware of those around me. I’m more charitable. I direct my anger toward evil entities. I drop people who suck my energy. I hug my daughter from somewhere beyond my heart.

2). Become re-acceptable. Of yourself. Who you were before you lived for the approval of others who held the power, but little substance. Through nurturing your own self-acceptance, you will become accepted by others. At least the “right others.” As Srini Rao writes and teaches in his best selling new book – The Art of Being Unmistakable: A Collection of Essays About Making a Dent in The Universe –

Accolades, awards, recognition and validation may never come. In addition, ironically, when you finally stop giving a shit about them, they seem to come in abundance. Be your own gatekeeper, tastemaker, and connoisseur of what matters. Do not choose yourself so the gatekeepers will choose you.

3). Seek re-energy. Living in the past saps energy. The present creates passion, excitement. It’s full of oxygen. Focus on a present moment. No matter how small. Step into it. You’re not your parents, your co-workers. The past does not define who you are right now at this moment.

“Awareness is the power that is concealed within the present moment. … The ultimate purpose of human existence, which is to say, your purpose, is to bring that power into this world.”
― Eckhart Tolle

4). Relish replenishment. Sure, investing is sexy. Financial media touts sexy all the time. Sell Apple, buy Tesla. Nothing sexy happens without the boring act of saving money, replenishing financial coffers. In the new year, increase your savings rate by 1 percent. Haven’t started? That’s the past. This is the present. Begin an auto-savings plan today. Now. Direct at the minimum, 1 percent of your take home pay into a savings account.

5). Cherish those who re-new. Who are the people who renew and revive you? You need more of them. You need to appreciate and fight for those who renew your spirit. Those you love. No matter the disagreements. If I love someone I tell them. Why hold back? Life is too short (especially in a zombie apocalypse).

6). Know when to re-unleash hell. It’s inevitable. Sometimes you will need to fight the enemy. You also need to know if you’re the enemy. Focus energies on what’s required to overcome obstacles. Roll a tank over your ego. Occasionally, that’s a challenge for The Governor.

Although he does try.

He’s got some work to do.

Noted.

Look up.

A pale light glows brighter.

Dark clouds fade.

Self-redemption is yours for the taking.

Accept the past. You can’t change it.

It’s a prison.

Accept the present. It’s yours to take.

Now.

Step.

“Your outer journey may contain a million steps; your inner journey only has one: the step you are taking right now.”
― Eckhart Tolle

A Lil’ Plot of Planning – 5 Lessons For A Successful (Less Painful) Financial Road Map.

Posted on September 23, 2013 by Richard M. Rosso, CFP

I wonder why financial planners don’t focus the majority of time on planning.

I’ve read the stats: Less than 40% of financial planners actually undertake the task of planning with clients.

Why?

Because it’s BORING.

There. I said it.

Even those who seek financial planning and have a passion to document every facet of their lives relent to the mundane nature of the process. They start out excited and ostensibly find financial planning to be as riveting as multiple appointments with the dentist. A couple of clients equated the experience with sitting in the chair for a cleaning (at least it’s not root canal).

Ouch.

Boy, I felt terrific.

That was four years ago. I realized – Rich, you’re approaching this ALL WRONG.

I needed to analyze: Step outside myself, my career choice. Ask tough, objective questions.

However, before making financial planning a worthwhile emotional experience I needed to face facts.

I asked a large sample what their first impression of financial planning was (is). Here’s the top three thoughts from those I interviewed:

First, financial planning feels overwhelming. Just the sound of it turns people off. It has financial in it. There’s planning in it. Right out of the gate I’m screwed.

Second, you’re just trying to sell me something. Personally, I know this is a valid concern. For many large financial services firms it’s is a “plan and switch.” My former employer was guilty of this and so are many others. It’s one of the main reasons I went independent.

An acquaintance of mine (not a certified financial planner) mentioned at his firm they create and then immediately shred plans for people they don’t talk to just to satisfy middle management’s need to show their office “produces financial plans.” It’s all about the check marks.

Third, the results made me feel more bad than good. So, if you save $3,000 a month for the next 20 years you may have a successful 25 years in retirement. Great. Frankly, it’s best to hope for an early death.

I remember reading a twitter post from a nationally recognized debt management expert regarding how “easy” it was for a middle class household to save $1,000 a month.

Really? On which planet? No wonder planners don’t want to plan and people dislike it!

What’s with this 1,000 page planning questionnaire???

This is the reality of the planning experience for many. I dare you to deny it.

When I moved to Texas 14 years ago, I soon realized how important it was for Texans to “own land.” A place to call their own. Can’t explain. It’s beyond the American Dream of owning a house. Texans respect their plot of land. Cherish it. Regardless of size. Their plot is their own. It doesn’t need to be expansive. Just theirs.

Got me thinking again as Texans always teach me lessons. How can I use this mindset to help others create a less painful financial road map and perhaps enjoy the process? OK, tolerate the process.

How can you be more successful and empowered by financial planning? It does help to know where you are and the probabilities of where you could wind up. No, really!!!

1). Examine your own foundation first. Before you even think about investigating the services of a certified financial planner (and I would stick to a certified financial planner professional), face the facts about the basic elements of the piers and beams or slabs that support your financial structure.

If you’re a poor saver, rack up debt, borrow money and don’t pay it back, frankly I can’t help you much. Sure, I can give you some constructive principles, ideas to improve, but unless you are willing to make the efforts to get your foundation in order, there’s nothing I can do.

Don’t waste your time with a financial planner like me. Frankly, the entire experience will make us both feel bad. Oh, and no: I don’t know what the next Apple stock is going to be to make you 1,000% on your money. Taking more risk on investments is not a smart way to fix a foundation.

2). How solid is your structure? I observe how Texans leave weathered, dilapidated barns on their property. Not sure why. The weather conditions are unpredictable here. I guess it’s a losing battle. Let nature take its course.

It takes much time and attention to make sure structures remain strong in the face of oppressive heat and brutal, abrupt changes to weather conditions. For you, making sure to have plenty of cash to weather financial emergencies or withdrawals, is crucial.

With the poor current state of employment, I suggest 6-9 months of living expenses in a savings or money market account.

Even retirees can benefit from a cash reserve when taking distributions. That’s what I advise. I’m glad empirical analysis proves my method, correct.

Read on:

The Benefits of a Cash Reserve Strategy in Retirement Distribution Planning.

From the study:

The empirical findings of this study are clear. In a taxable environment with transaction costs and lower investment returns than seen historically, liquidity improves plan survival rates relative to a strategy with no cash reserve. The reduction in taxes, transaction costs, and the detrimental impact of volatility on wealth more than offset the opportunity cost of lower returns due to allocating more wealth at retirement to cash.

3). Inspect your financial planner. Inspections, appraisals are important elements of purchasing, selling real estate in Texas. Thoroughly inspect your planner before the planning process.

For example – Ask the right questions. Like – How do you get paid for this plan? If the plan is free – Run. You want a person who charges a fee per plan or hour. A “free” plan is far from free and most likely, will not be a priority for the planner unless you make a life insurance purchase or go into a managed money product. Investment planning is as important, not MORE important than the other elements of your financial life.

Inspect to make sure your certified financial planner is in good standing – http://www.cfp.net.

4). Get organized first. Build a fence around the paper. Sounds simple enough, yes? How organized are your financial documents? – Tax returns, brokerage statements, deeds, estate plans. And what about all those passwords for financial websites? Are they documented and stored in a place for heirs to access? Organization is control.

It’s a good exercise to touch, read, file your paperwork. A great first step to easier planning. Perhaps your financial planner can help? I provide hefty, heavy-duty binders with tabs so clients may get organized before planning can begin.

5). Think small. In Luling,Texas there’s a place called Tiny Texas Houses. Brad Kittel a master builder, creator of livable art from salvageable materials, has made small sexy and functional.

Hi Brad!

Why must you complete a financial plan the size of Proust’s In Search of Lost Time at 4,211 pages for it to be taken seriously?

Go modular. Small. One personal financial benchmark at a time. Then move on to the next financial concern/goal. A good financial planner will help you savor the process one element at a time and create a checklist to keep you moving forward.

Planning isn’t entertaining.

It can be rewarding.

As planners we need to face the fact: We’re not popular but we are necessary.

How can we find ways to make it all more enjoyable?

I’m too old to go into dentistry.

How about you?

This looks fun!

The Colors, The Times, of Your Life – Will You Remember?

Featured

Posted on January 22, 2013 by Richard M. Rosso, CFP

We were free. Moving quick in a white hot breeze. 1977. When the world flew by in lime green.

Slit through a black bowel of public housing. Deep in the middle of the aged carnival colors of blueviolet, aquamarine and bisque. Coney Island. A narrow way forged between the metropolis, slick brown with rot. The summer New York heat penetrated, bounced from dead, white alley cats forming a yellow haze floating neon pungent sluggish slow in still heat. Bright orange, with a burst of unhealthy steel-gray around the edges, like a healthy pink hue that hesitantly abandoned its soul, was there too. Cats and garbage rotted just that way in July. In 1977. In Coney Island. I remember.

The odor scorched the outer part of our pink nostrils until they flared red. But we didn’t care because this moment was designed to be fleeting. The clear blue of escape from a place we should not have been, was near. And as long as that moped motored us out in one piece, alive, all the Sunday ritual – staring at the newly-painted off white walls behind the rich, marbled altar of St. Simon & Jude’s Church would have been worth it.

Until.

Boom! Black.

The lights went out. A deepest black seeped in from the edges. Beige smoke rose above. From everywhere. It suffocated us like a color. Purple maybe. Stopped us dead. Frozen.

Then.

Restless white noise. Muffled sounds of agitated souls. Blood-red anger.

Frenzied, white round bursts of bright. Scattered. Flash lights cutting through, getting closer, like silver shards.

In the dim gray mist of yesteryear, when lapels were wider than a McDonald’s Happy Meal and Mayor McCheese still held power over us.

“We need to get out of here. In there,” I pointed. And kept pointing and she knew what I was pointing to. What I meant. Like she could see through midnight blue.

“Fuck no,” she said. A spanish, italian, puerto-rican fire mix of black-coal eyes, deep brown bouncy curls in red spandex and cherry-red heels.

“If you don’t get in the dumpster you’re getting raped and I’m getting robbed,” I said. Heels off. She moved. The color of imminent danger was crimson with dark-red daggers.

We dove boldly into the acrid stench of the mix. Eggplant in color, wet, with sticky blotches of yellow green. The lime-green Puch Moped that was to take us into the wild blue now secured behind the jungle-green metal coffin for the discarded muck public housing didn’t want. Too much green. We puked. The gagging color of cloying hot crimson arose in our noses and throats.

A city summer. In the blackest of blackouts. 1977. I remember the gray shades of memories. The colors brought me back. To an alley. When looters almost discovered a boy, a moped and a girl’s saturated skin with Love’s Baby Soft (always smelled cotton-candy pink to me). All this clear vision from a lone lime-green bicycle I barely noticed. In a driveway. Yesterday. In Houston, Texas. A million miles away – faded into a lemon chiffon of time.

Oh the colors, the colors. Perfect.

Colors have the astounding ability to anchor you back to a time and place for as long as you live. No matter how far to the past you venture. Colors are seeds that blossom the past to the present, immediately. Sort of like songs. Sort of like a person you love, or cherish. If you remember the colors, you’ll know what you feel about a moment is true. And real. Even when others doubt you. Even when you doubt you. The colors make it true. And true is slate blue.

Random Thoughts:

1). How will colors conjure up the past? Today I re-lived the memory of a first dinner. I smelled the thick tapestries of dark & tomato reds. The rich browns of hair and delicate tan of lines, of form, of grace. I’ll never forget the fire-brick colors of what ignited in mind and heart. The reams of gold in the conversation. I re-live those pigments every day.

2). Red & green are the colors of money. When stock markets are green, as they have been since the fiscal cliff (version 1) concluded, I use green to trim growth and profit. When there is red again, a trickle of crimson in the streets, I’m motivated to buy. Use the reds & greens to make smart financial decisions.

3). How will today’s colors form your future? Be careful with the colors you use today to form the thoughts that move you forward. Today I’m staring at coral, firebrick, and forest green from my windows. All soothing, positive colors to me. I’ll make it my business to avoid true dark shades today.

4). What colors will propel you to thank someone today, love someone, be grateful for a communication, a note, one positive word. Close your eyes. Think of those colors. Shamelessly relive the good memories tomorrow of how you changed someone’s attitude. For the better.

Like it’s 1977.

Because times were good.

Because we lived to escape.

The blazing yellow sun eventually showed us the way.

To the blue.

Back on course and lime-green.

Once again.

Like you.

And your memory.

Random Thoughts of a Money Muse

Stories of Life. And Money. On the Fringe.

Tag Archives: financial

Ignore Business Insider’s Reading List: Focus Here Instead & Save Yourself.

So I share with you my library. My keepers.

1). Investing with the Trend: A Rules-Based Approach to Money Management by Gregory L. Morris.

2). Cocktail Investing: Distilling Everyday Noise into Clear Investment Signals for Better Returns by Christopher J Versace & Lenore Elle Hawkins.

3). The Choose Yourself Guide To Wealth by James Altucher.

4). Animal Spirits: How Human Psychology Drives the Economy and Why It Matters for Global Capitalism by George A Akerlof and Robert J. Shiller.

5). Active Value Investing: Making Money in Range-Bound Markets by Vitaliy N. Katsenelson.

6). Happy Money: The Science of Happier Spending by Elizabeth Dunn & Michael Norton.

7). The Holy Grail of Macroeconomics: Lesson’s from Japan’s Great Recession by Richard Koo.

8). Wait: The Art and Science of Delay by Frank Partnoy.

9). The Misbehavior of Markets: A Fractal View of Financial Turbulence by Benoit Mandelbrot.

10). Irrational Exuberance 3^rd Edition by Robert J Shiller.

11). Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America by Danielle DiMartino Booth.

8 Ways To Go “Money Active” With Your Kids.

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4 Sweet Money Lessons – Straight From The Toaster.

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1. Finances don’t need to be so serious all the time

2. Patience has rewards

3. Variety isn’t diversification

4. Icing is fun, but it’s not everything

Four Words To Better Retirement Planning.

The Money Magic Mindset – 5 Ways To Get There From Here.

The Zombie Way: 7 Life Lessons From The Living Dead.

Taking Stock In Your Kids – 4 Initial Steps To Get Children Excited About Investing.

The Tolle of the Governor: 6 Steps to Rebirth.

A Lil’ Plot of Planning – 5 Lessons For A Successful (Less Painful) Financial Road Map.

The Colors, The Times, of Your Life – Will You Remember?

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So I share with you my library. My keepers.

1). Investing with the Trend: A Rules-Based Approach to Money Management by Gregory L. Morris.

2). Cocktail Investing: Distilling Everyday Noise into Clear Investment Signals for Better Returns by Christopher J Versace & Lenore Elle Hawkins.

3). The Choose Yourself Guide To Wealth by James Altucher.

4). Animal Spirits: How Human Psychology Drives the Economy and Why It Matters for Global Capitalism by George A Akerlof and Robert J. Shiller.

5). Active Value Investing: Making Money in Range-Bound Markets by Vitaliy N. Katsenelson.

6). Happy Money: The Science of Happier Spending by Elizabeth Dunn & Michael Norton.

7). The Holy Grail of Macroeconomics: Lesson’s from Japan’s Great Recession by Richard Koo.

8). Wait: The Art and Science of Delay by Frank Partnoy.

9). The Misbehavior of Markets: A Fractal View of Financial Turbulence by Benoit Mandelbrot.

10). Irrational Exuberance 3rd Edition by Robert J Shiller.

11). Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America by Danielle DiMartino Booth.

1. Finances don’t need to be so serious all the time

2. Patience has rewards

3. Variety isn’t diversification

4. Icing is fun, but it’s not everything

10). Irrational Exuberance 3^rd Edition by Robert J Shiller.