Saturday, July 2, 2016

Hang 10%, Wave after Wave

SURFING FEVER - I had the pleasure of talking to a long time friend. He's got Hawaii fever, BAD! He bought some condos in Oahu and recently a home there. In fact, the two times my family traveled to Hawaii, we stayed at his places. The friend is financially secure and longs to move to Hawaii full time. His girlfriend still has career aspirations working in the entertainment industry. Because he wants to be supportive of her, he is not yet pushing too hard for a permanent move to Hawaii. I am not sure when he picked up surfing, but by his account,  he could spend the rest of his life surfing and he would die happy. In Hawaii, there is a supposedly a buzz in the air when the surf is up. Everyone gets excited to drop what they are doing and head out since nature is challenging them. Evidently, once you have this surfing fever, you never lose it. 

MULTIPLICATION- The only splurge our family really has is spending on our childrens' education. Our oldest kid goes to a private school that costs a several pretty pennies. Luckily only one of our children is of school age right now. Interestingly, the school line item cost is greater than all our other expenditures combined. This is a function of the schooling costing a whole lot of mullah and the fact that we live a pretty simple life. I'm still not sure that private school is the best path for our kids, but we'll see. (The math says, I can give my kids 1M dollars at graduation or this private school education, this will be another post one day) The resources and experiences the kids have at this private school are so amazing. I soooo wish I could go to this school, yes that is ENVY.  The students love their school. I often threaten my oldest that if she doesn't do X (whatever a parent is imploring their child at the time), that she can't go to school. Who would have thought of school being a treat for a kid? So the school has families pay the tuition in full for the next school year by June of the existing school year. The concept of perishability of an unused student spot is comprehensible, but it doesn't make it any easier to pay tuition a year in advance. In kindergarten and 1st grade, the school tries to instill this love of learning so they totally pamper the kids. They don't really push the kids academically. I've been wanting my oldest to learn multiplication, so I can teach her about the concept of 10% returns/waves, a sort of annuity. I basically told her she had to learn the multiplication table before I would pay for the next school year.

10% - So why 10%? First, I've always been able to make more than 10% per year. I kind of see that as the minimum return. Second, the math is easy; 10% of something is really easy to calculate. My dad taught me to look at income/expenditures this way. Any cash outlay was losing a future wave of 10% returns, so buying a car for $15,000, meant I was losing $1,500 a year FOREVER. Along the same concept, when you make X amount, it meant you would earn 10% of that FOREVER. I remember when my net worth hit $100,000, I was more excited at the $10,000 cash flow FOREVER. Having this perspective makes the decision on tradeoffs so easy. I was looking at a home purchase recently that would have cost 4M. The decision is: Do I want the home more or do I want the 400k a year. Life really boils down to tradeoffs. What do you want more, this or that? I've often preferred the 10% percent return FOREVER. Excited to be teaching her this concept. As for the magic of compounding, that will be later.

MILLIONAIRE CONFIDENTIAL - Catch the 10% wave fever and let each 10% annual return enable you to reach bliss in life.

Do you have any ah hah perspectives that is like taking the red pill? Once enlightened, your life is never the same. Please share....

Wednesday, June 29, 2016

Lazy, fat and unhappy

Somehow I've reached this point of being on this cruel life teeter totter... one side of me just wants to do nothing and coast and if you squint your eyes enough, you can see the other side of the ride and its the ambitious version of me that still wants to hit the 10's, as in digits. That's right, ahole things he can be a billionaire. I need a little bit of luck, either I live long enough and let the numbers compound to 10 digits or I scale what I am doing and get there short of two decades.

The family has all been sick, the magnetic virus attracting 2 year old to thank; the summer has been hot;  and been waiting around for some earlier buyout offers to fall to me. Regardless, the last two months, I've done very little. Kinda know what retirement would be like now. I'm really bored. A few potential real estate deals that I am sloowwwly working on. Young MC would tell me to bust a move. (Did I just date myself?) One of the buyouts looks like it will happen. Doesn't move the needle much, more of the same small crap. Interesting because the owner is choosing life over money. I need to learn more from him.

Selfish ease or a life lived serving others. I feel so blessed and feel this deep desire and responsibility to maximize my good fortune so that I can do some good in this world. Time to get going again.

"The pursuit of meaning is what makes human beings uniquely human. By putting aside our selfish interests to serve someone or something larger than ourselves — by devoting our lives to "giving" rather than "taking" — we are not only expressing our fundamental humanity, but are also acknowledging that that there is more to the good life than the pursuit of simple happiness."

Millionaire Confidential - Idle hands = Idle Mind. Get to work.

Care to share thoughts on retiring vs continuing to plug away?

Wednesday, June 22, 2016


40 Year old, Father of 3 kids (7, 2, <1)
Entrepreneur / Multi Business Owner
Real Estate Investor
Financially Independent
Ultra High Net Worth Individual i.e. >25M

Haunted by my Ambition, Counting Blessings every Day, Love my family, Looking for other frugal millionaires. I don't fit in with typical wealthy individuals as I do not live their lifestyles.

Gets lonely as I mask what I am and what I have. Was always taught to be humble and appreciative.

There are times I selfishly feel like I want to quit, Overall I feel too much responsibility for all my good fortune to use it and do good with it.

Main Issues I am focusing on:

1) Professionally - What do I do to get bigger platform
2) Family - How do I raise my kids to be productive happy adults.
3) Existentialism - What they heck does this all mean.