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The Fear Factor

February 22, 2019 by  
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Sometimes I re-read my own words from my journals and books that I have written, and it inevitably surprises me how my own words can reinvigorate, inspire and motivate me. And now that I’m almost 75, I suddenly realized how much this thing called “the fear factor” was holding me back on some of my projects, big dreams, and desires.

Quoting a few highlights from my own book, The Courage to Be Rich (I hope that’s not plagiarizing–ho ho):

ACTION GETS THINGS DONE. When we are fearful of something, if we push ourselves to take action, many times that will totally overcome our fear and a big plus is that we get stuff done and isn’t that pretty much the whole ball game or at least a lot of the game. Without action you could be the greatest financial thinker, have the highest IQ, and end up with very little money or even broke. When we are fearful, we really need to give ourselves a big push, even if we stumble and blunder a bit.

FEAR OF STARTING. Getting started is really the most frightening and the hardest part of virtually any task. But even if you do something wrong, at least “do something”. I am not saying take risks larger than you can afford. We all should take risks gradually, whether they are financial risks, social risks, or any other kind of risk.

Some time ago, I was on a flight and as we began our final approach (I wish they wouldn’t call it “final approach”) and as the plane was descending, I noticed the lady next to me was very nervous and somewhat freaking out. Thinking that if I diverted her attention by talking to her, that might calm her down and it did until the pilot let the flaps down and the plane lurched and bounced a bit. I quickly explained to her what the pilot had just done and that gave her a bit of relief. I then suddenly realized that I was in the same plane, in the exact same situation, but my heart rate and blood pressure were normal, unlike my seat mate.

CHRONIC FEAR IS YOUR REAL ENEMY. I knew the damage fear could do because it had done damage to me in the past. I finally realized that I was letting fear dominate my thoughts. I decided to do something about it. Since I travel a great deal, giving seminars or negotiating real estate deals and since being relaxed and rested at the end of a flight is important to my performance, it was very important not to waste so much energy wrestling with fear.

It didn’t take much thinking after that to figure out that the fear factor entered into many of my decisions that had far greater implications than did flying. Why should I let myself be fearful of flying or anything else? After all, does that fear change the outcome of the flight or my financial conditions? People who are the real doers and the super successful people in life face frightening situations almost every day, but they don’t let those confrontations with fear scare them to death or slow down their progress or stop their actions.

I want to write more about the “fear factor” in my next blog, but for now I will end this blog by listing some very common fears.

  1. Giving a speech to a large audience.
  2. Fear of making a fool of yourself.
  3. Fear of losing all your money–or at least a big part of what you have.
  4. Fear of losing your friends.
  5. Fear of losing the love and respect of someone you love.
  6. Fear of criticism.

There are certainly a lot more fears than this short list. Take a look at yourself and analyze your own fears and ask yourself the question as to whether those fears help your situation in the long run or even in the short run.

P.S.  I read that if you take a commercial flight, at random, every day for the rest of your life it would be about 20,000 years before you got on a plane that crashed–so obviously the fear of flying on a commercial plane in totally not rational!

 

Smart Money Hedges Bets In Tough Times

February 15, 2019 by  
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We’ve had quite a few very good years, economically speaking, and we may very well have a few more to come. There are, however, some warning signs that things are starting to change but it’s a slow change. Here are few things the so-called experts are predicting that, in my opinion, are very likely to happen:

  1. European expansion will slow down.
  2. Japan’s recovery will remain weak.
  3. China’s economy will keep decelerating.
  4. The rate of inflation will stay around 3%.
  5. The Feds will raise interest rates 3 times in 2019.

The experts, however, are predicting that changes will take maybe 2 or 3 more years, and will no doubt happen slowly. Regardless, many of us investors are thinking about hedging our financials that’s right now. You might ask why wouldn’t anybody or everybody hedge their bets if they knew tough times were coming? Of course, many people would, but the average person doesn’t know that tough times are ahead.

Smart money –money that is invested by people with expert knowledge – does not always do well either, but there are indications that give the smart money people a head start on everyone else. No, they are not always right, but they are more often than not.

A very important part of the formula is to be an independent thinker. The overall economy is like a gigantic river. Sure, you can swim upstream, but it is very difficult. What smart money does is watch the general direction of the flow of that giant stream. Smart money people know that the flow doesn’t suddenly turn around and run the over way.

So even though some of the experts are saying our markets and economy is ready to turn around and go down, it most likely will not happen fast. So, these days, I am advising people to do two things to hedge their money and investment bets:

#1 – Save cash. Build up a cash reserve to be invested after the economic pull back.

#2 – Even though you are building your cash reserves, keep making low ball offers to highly motivated sellers. Granted, there are not a lot of motivated sellers right now because the economy has been in an uptrend for quite a while and many people think it will continue. Still, there are always some motivated sellers out there that need to sell for various reason and some of these people need to do it now at under market prices.

Finding those motivated sellers and making those lowball offers is still smart money, especially if you can do so while building up your cash reserve. So, you might as well keep throwing you net out there and see what you can find. That kind of smart investing and saving is the kind of thing that will get you through the tough times, whenever it is they get here.

 

 

Refilling Your Social Life in a Fulfilling Retirement

February 8, 2019 by  
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The great thing about regular work or a job is that it gives you a good reason to get out of bed each morning and get going, and it is very important when you retire is to set something up that replaces that for you. One way to do that, as I mentioned in last week’s post, is put yourself to work in a way that can better the world.

As you push yourself to get involved with a charity, or whatever it is that you choose, you will find that you can replace what your work gave you in terms of structure and routine with the activities of your new mission. This will give you something to get you out of bed but, just as important, that structure and routine will also give you a new social aspect to your life.

Most of us develop a significant social life that revolves around work, but then, when we retire, this is often lost. So, getting involved in a charity or other organization can replace what you are missing when you leave your job or no longer work. It will do all that while you do a little something to make the world a better place.

Most of us humans really don’t realize how very important our social contacts are until they disappear or are greatly diminished when we retire. It’s not that you won’t know those same people or continue to have great friendships with some of them, but when you’re no longer working together, you are suddenly not nearly as involved in each other’s lives and you don’t see each other nearly so often. Most people will greatly miss the regular social contact if they do not replace it with another purposeful and regular activity that also involves time connecting and interacting with other people.

Each of us will have our own plan but here is what I plan on doing to push myself to create a new routine, structure, and source of social connections in my life that will make me get out of bed every morning and look forward to the day: I would like to teach grade school, high school, and university students in classes on writing, marketing, public speaking, financial methods and strategies, and maybe even tennis, on a regular scheduled time and day. I know quite a bit about all those subjects, and I do love to teach others how to do these things and show them how they can have great success and a huge sense of fulfillment and satisfaction from learning these new skills.

So, my challenge to you is to start thinking about your own retirement and start making plans on what you will do to create routine, structure, and social connections. Make a list now, even if you are many years away from retirement. You can change up that list as things come to you but just being aware of the necessity will help you create a fulfilling plan. You won’t be sorry if you do that now!

Retirement Can Create a Better World

February 1, 2019 by  
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I want to write a bit more about last week’s theme of retirement – how it can be good, bad or sometimes very ugly. Even if you are many years away from retirement, you can make your retirement much better and have an easier transition if you are aware of some of the pitfalls that many people stumble into when they retire. I want to share a few secrets to making your retirement transition quite comfortable and pleasant.

Part of the reason I want to share these points is that, for me, retirement came close to driving me seriously crazy. It made me feel worthless and caused me to have big mood swings. Last week I wrote about some of the great and promising ideas from Patrice Jenkin’s book, What Will I Do All Day. She points out that many people go into retirement without realizing how critically important it is for them to still have routine and structure in their lives. Most people’s work lives automatically give them those two critical things. Plus, their work usually results in a lot of measurable production which lifts the human mind and spirit and gives us great personal satisfaction. The huge problem comes when a person retires and most, if not all, of those satisfying items quickly disappear. One other thing that also goes away or is often greatly diminished is one’s social life!

So, what is an excellent antidote to the retirement blues and the great letdown? In one word it’s WORK. But it has to be much more than just busy work. It has to be meaningful and productive.  Ideally, it’s doing something that you love and something that helps other people. It should be something that helps make the world a better place because, although you don’t really need to make a dime out of doing that work, it needs to be purposeful.

For me, the answer was going for the great feelings I get from donating my time and money to charity work. What is especially appealing to me is helping kids. Even doing a little thing like reading to them or telling simple, fun stories on a regular basis is fulfilling and purposeful. Even more fulfilling for me is teaching, because of my background and my passion.

I’ve done a little of this already, but I’ve just begun this particular new mission in life. The time I spend with the kids involves simple things but it is now part of my routine and structure and is a huge mood lifter for both me and the kids. A similar mission could do the same for you no matter what charity you choose. In a small but growing way, we can make the world a better place all while staying fulfilled and purposeful in our retirement.