FISH | Financial Independence Seeking Happiness: Risk

20 Positively Stubborn Ways to be FI

Contender 3 Conformity, Critical Thinking, downshifting, financial independence, Freedom, frugality, Habits, Happiness, health, Risk 18:40

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<tr><td class="tr-caption" style="text-align: center;">Learning a new skill</td></tr>
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I love days when I am put in my place. Learning from an expert and proving to me how little I know.<br />
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Today was one of those days - a humbling experience using a chainsaw. One I will reflect upon many years in the future.<br />
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A chainsaw is a powerful and dangerous machine that you must respect. It is a marvel. At the same time cutting the trees is a bit of an art that takes time to perfect.<br />
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Felling old and new trees will provide warmth for Tribe in the winter making way for new growth. <br />
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<b>Looking at THE.PaST I would never have done this if we did not stubbornly believe in our goal of financial independence in a countryside house. Below I have outlined 20 stubborn steps towards FI which will ultimately make you stand out from the crowd. </b><br />
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<span style="font-size: large;">Our Stubborn Waste of Wisdom</span><br />
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You start out in life knowing nothing and leave this life knowing a lot. Unfortunately, in THE.CoNTeNDeR's humble opinion, western society does not value wisdom. It really does not give a f****.<br />
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Get out of the way, old man, you are hogging the jobs. Retire, you dinosaur.<br />
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Is it me or is there something seriously wrong in the western world where old people are marginalized and their wisdom is not passed on but mainly deemed outdated. What is out-dated anyway? Is "deliver to your door" and "work till you drop" in front of a computer all that matters nowadays or a means of controlling production and distribution in a way that means profits and taxes?<br />
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We are a stubborn bunch and as a result we are not capable or knowledgeable of the basics of living. This may sound harsh but how many people understand how to wire a plug nowadays.<br />
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The wise old men could teach us DIY and grow your own, tax returns, financial decision making. We are too busy, we do not need to know how to do this, we can take out a loan and pay someone else a lot of money to do it so that we can go and have fun playing videogames.<br />
<h2>
Ignore the crowd / society and be a stubborn bastard</h2>
Making a difference generally means being different. Sure, everyone is different, don't get me wrong but going to work for someone else generally reduces your ability to really make a BIG difference for society and yourself.<br />
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Companies need people to do work accurately and quickly. Efficiency and productivity are the buzz words. Make lots of small differences in work and collectively the company does well. At the same time one's ability to make a REAL difference to society as a whole is EXTREMELY limited.<br />
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Working for someone else<br />
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1. Limits your income - the company makes more money from the work you do than they pay you.<br />
2. Takes up the majority of your time, thus limiting the time you can dedicate to thinking and actually making a real world difference.<br />
3. Conditioning - 9-5 is the norm, a monthly paycheck is the norm, a commute is normal.</div>
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I wonder what Plato and Socrates would have thought of modern society. I have a hunch they would marvel and be repulsed at the level of control society has over us. </div>
<h2>
Learn to Be Different</h2>
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Making a difference means breaking free from normal. Valuing risk over percieved safety and <br />
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conformity. Learning to embrace failure instead of fear?<br />
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<tr><td class="tr-caption" style="text-align: center;">Catching tiles at the renovation project</td></tr>
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Before we get to the <b>Stubborn Financial Independent Ba***** List</b> let's start with the difference between knowing
 and believing. They are completely different but both can be right and 
wrong. Always challenge the status quo thinking (ideally in your head and not out loud if you see what I mean).<br />
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Without trying something for yourself, you will never know. As mentioned above the best way to get ahead in life is to go safe my lad, collect
the monthly pay check and off to the pub. Let's break this down as an example and Ask WHY five times<br />
<ol>
<li>Why do I want to work until retirement & who said that we should? </li>
<li>Why don't I retire early?</li>
<li>Why can't I retire early?</li>
<li>Why do I need to save so much to retire early at my CURRENT living standard?</li>
<li>Why can't I save enough to have the living standard I NEED?</li>
</ol>
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The 5 whys is a powerful technique used to simply think. Seek questions and the answers will follow. It can be applied to so many things in life. Why do I need to buy THIS CAR / HOUSE / VACATION. Have this JOB, FRIEND, DESIRE. Perhaps give it a go now on a subject close to your chest.</div>
<h2>

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Be Different</h2>
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Perhaps being a right selfish bastard has some merits…. providing it is in the right context, taken with a pinch of salt and ideally hidden from sight and not talked about.<br />
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A small note of caution, we need to be careful and stealth-full when starting out on a FI journey. Testing the waters with people around you is advisable before "coming out" full on about FI OR just keeping quiet may be in your best interest at first. Unfortunate consequences from being too bold could be to alienate family, friends and colleagues which may ultimately damage your happiness and ability to become financially independent.<br />
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See the post <a href="http://getintheringwithme.blogspot.com/2013/03/downshifting-what-are-you-doing.html" target="_blank">Downshifting are you mad???</a><br />
<h2 style="text-align: center;">
The Stubborn Financial Independent B****** List </h2>
<ol>
<li>Be strong minded and know what you want - dedicated to your mission to obtain what you want.</li>
<li>Keep to your goal but allow yourself to change the way to get there.</li>
<li>Refuse silly stressful timelines - pointless, showing off and asking for trouble.</li>
<li>Don't finish anything fully - waste of time and effort. 20% effort 
will produce 80% of the desired result move on and let someone else do 
the rest.</li>
<li>Question the given "truth" - there is always two sides to any "story" and ask what is in it for me.</li>
<li>Avoid all labels and brands and forget what people say - learn to dress well for less and have a signature. Perhaps a hat, tie, scarf or color. People will ultimately remember you more.</li>
<li>Refuse to accept the price you are offered - everything can be bartered or they loose your trade. Worst thing that can happen is you shop around for a better price cannot get it and have to go back to the same store.</li>
<li>Refuse to gossip - pointless, negative and destructive</li>
<li>Refuse un-ethical work / lying: leave it to someone else with no morals - do you really want to live with it?</li>
<li>Throw away the idiot box (TV) and avoid advertising. Always ask they are telling me this because... we want you to buy something</li>
<li>Do not give up private information for something "Free" - you will be marketed by something on a personal targeted note. </li>
<li>Never eat junk food on at least 6 days a week - go to a burger joint with friends once a week but otherwise eat well.</li>
<li>Refuse to "ride" when you can walk.</li>
<li>Pay a fair share of tax but take all the tax breaks you can get. They are there (such as paying into a pension) so you are entitled to them. I will leave up to you what you believe your fair share of tax should be (noting that the rich like capital gains tax as it is only charged at 18% in the UK)</li>
<li>Keep to your principles and habits if someone says come on this will be fun or are you a wimp - just say NO. </li>
<li>Don't buy presents and don't ask for presents - make them. A drawing, a cake, a pot of jam or tomato chutney.</li>
<li>Mothers / Fathers day, Christmas, Easter Bunny and the Halloween pumpkin lantern are all just clever marketing tools to make you waste money, food and resources on an unprecedented scale.</li>
<li>Avoid all expensive hobbies and sports, golf, skiing, wine club, going to watch games and sport, computer gaming with the latest equipment etc... find a cheap or useful hobby instead. Walking with the local ramblers club, playing football in a team.</li>
<li>Refuse to kiss arse, just be the best</li>
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Go out and Be Stubborn</h2>
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So what if someone comes back to you and calls you STUBBORN a
MISFIT or a TROUBLE MAKER? Well, rise above that. How do you change the perceptions and how do you really MAKE A DIFFERENCE.</div>
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No matter what you do, make a POSITIVE difference. Be POSITIVE.
Have a GO. Stubborn is not bad, it is CONFIDENCE, CONVICTION and willingness to take RESPONSIBILITY. It is making a difference positive or negative. Shake the boat
and see what falls out. If it was you, it was for a reason and you learnt
something from it for a reason.</div>
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We only live one life. A sacking is a learning and an
opportunity. Standing up for yourself breads self-esteem, relationships and
confidence.</div>
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<b>CoNTeNDeR Stubborn to the Core.</b></div>
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<b>Peace, respect and tranquility to all stubborn b******* out
there :)</b></div>
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20 Positively Stubborn Ways to be FI

Learning a new skill I love days when I am put in my place. Learning from an expert and proving to me how little I know. Today w...

Generational Imbalance

Contender 1 Critical Thinking, Debt, downshifting, Finance, financial freedom, financial independence, health, Investing, market analysis, Oil, Risk, stock screen 10:21

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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSSNKQivWXJ9XBSJftBikJ-2GoefB5r_MvVDDmcVEugrhMGSMhyphenhyphenlNSOvp7on_CCxr3iuKckb_BVxQcLBSykjgo6JCZI6wMwra9QPx06TeUtHb4-W8SeKR8Ro2p_m6Ycw96LrXQnEZD345a/s1600/P1030554.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSSNKQivWXJ9XBSJftBikJ-2GoefB5r_MvVDDmcVEugrhMGSMhyphenhyphenlNSOvp7on_CCxr3iuKckb_BVxQcLBSykjgo6JCZI6wMwra9QPx06TeUtHb4-W8SeKR8Ro2p_m6Ycw96LrXQnEZD345a/s1600/P1030554.JPG" width="240" /></a></div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtIc6oSNcKRyE9han0R3j6birEGopTQqwO82B1OiWeeybw__clSkyOexBzAebOTxNuU6FbjvPzV6PvUQ5ZAJU76jeB14oMO43djG0U7Aj6pSe1AOqaZloNgEqWeMTSG5GYFIIZn2UoAUPN/s1600/DSC_0016.JPG" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><b>THE.FuTuRe: </b><i>"You are getting old Contender, you need someone to look after you like the government......."</i><br />
<b><br /></b>
<b>CoNTeNDeR</b>: <i>"Promises, promises, promises - all great on paper but they need to be backed up with real deeds and wealth"</i><br />
<br />
In the fields around us the farmers are already bringing in part of the harvest. Most of the farmers we have seen are in their golden years.<br />
<br />
Heirs are no longer interested in the family business. They are attracted to the bright lights of the cities. Is the void going to be filled by bigger machines and robots guide their way. Society is ageing... <br />
<ul>
</ul>
<ul><b>
</b>
<li><b>Does the natural generational cycle (ageing to renewal) pose problems to future investments </b></li>
</ul>
<ul>
<li><b>Where is capital currently being misallocated</b> </li>
</ul>
<ul><b>
</b>
<li><b>What are the likely investment pitfalls in the years ahead</b> </li>
</ul>
<ul><b>
</b>
<li><b>Do we need to change the way we allocate capital</b> </li>
</ul>
<ul><b>
</b>
<li><b>What financial independence opportunities can arise from the boomer retirement and the <u>natural redistribution</u> of wealth to Generation X and Y and Millenials?  </b></li>
<ul>
<li><span style="color: red;"><b>Latest Cyclically and Inflation Adjusted Market Analysis Graphs</b></span></li>
<li><b><span style="color: red;">Latest Dividend Value and Growth Dividend Stock Screen Results</span> </b></li>
</ul>
</ul>
<ul>
</ul>
<h2>
A Generational Pyramid Gone Awry</h2>
The developed world has gone through dramatic economic and population growth. Vast numbers of jobs have been created to keep the cohort in pocket and spending. <br />
<br />
We thank them for Cheese in Cans, Pink Slime, Asbestos, Nuclear Accidents, Cities in the Desert, Mega bugs such as MRSA, Snout Houses, Dolly the Sheep, SAW films, The Benefit and Entitlement Society..... a benefit to society, get real.<br />
  <br />
This population growth has had huge implications on the age distribution of society. We now have a more mature society due to improvements in life expectancy and lower birth rates.<br />
<br />
<a href="http://www.macrobusiness.com.au/wp-content/uploads/2011/12/ScreenHunter_02-Dec.-15-23.47.gif" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="217" src="http://www.macrobusiness.com.au/wp-content/uploads/2011/12/ScreenHunter_02-Dec.-15-23.47.gif" width="320" /></a>A smaller group of young people versus retirees  will be paying the benefits older society has bestowed on itself. <br />
<br />
<a href="http://www.rand.org/content/dam/rand/www/external/pubs/issue_papers/IP176/IP176.fig3.gif" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="282" src="http://www.rand.org/content/dam/rand/www/external/pubs/issue_papers/IP176/IP176.fig3.gif" width="320" /></a>The pyramid (see diagram below) now resembles an imbalanced Thai temple, precariously weak in places but never the less still standing...just....one more gold statue on the top and it is game over.<br />
<br />
"Boomers" born after the first world war are now retiring en-mass. They primarily hold the wealth of western nations as well as the important positions in society. They still have the majority of the vote - and they actually use it to their benefit(s)!<br />
<br />
Vast wealth and benefits have skewered in their favour from high property prices, ownership of shares / businesses, and cheap access to health care.<br />
<br />
It was possible to accrue this wealth as they also benefited from low taxes, free / cheap education, a booming economy (that 'paid for' infrastructure that helped to turbocharge the economy) had access to cheap resources such as oil and land.<br />
<br />
20 - 40 year olds are increasingly reliant on the bank of mom and pop to get started in life delaying their true freedom and independence. Their jobs are increasingly demanding, having been <strike>educated</strike> trained to keep the machines running, don't think, just do it in a very productive manner. While you are at it you will have to pay higher taxes for <strike>our</strike> your benefit(s).<br />
<br />
Fortunately there is light at the end of the tunnel with the changing of the guard.<br />
<br />
As the boomers have to draw down their assets and loose their high profile positions in society their influence will naturally wane. This transition will have significant implications on taxes and investments.<br />
<h2>
Boomer Misallocation of Capital</h2>
We have been blessed with the boomer improvement in technologies that have driven higher life expectancies, mass long distance transport and the marvel of the internet to name a few. At the same time huge waste (resources) and lost opportunities (free energy) slipped through our grasp in the last few decades. <br />
<blockquote class="tr_bq">
"the definition of insanity is doing the same thing over and over again, and expecting a different result." (Albert Einstein)</blockquote>
A forefront critic of the boomers way of life has been James Howard Kunstler. He correctly in my opinion highlights all of the literally stupid decisions that have been made by the boomer generation. Here are a few decisions that really make you go hummmm....<br />
<ol>
<li><b>Too big houses</b> - to many resources used to make them, too many resources to maintain them and too many resources to run them. Just consider all of the paint and termite protection, heating of empty spaces.<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://activerain.trulia.com/image_store/uploads/6/3/1/5/7/ar127547375975136.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="233" src="http://activerain.trulia.com/image_store/uploads/6/3/1/5/7/ar127547375975136.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>We used to live in much smaller houses in the US</b> <a href="http://activerain.trulia.com/blogsview/1674255/top-5-new-home-trends" target="_blank">Source Activerain</a></td></tr>
</tbody></table>
</li>
<li><b>Too big heavy, inefficient cars</b> to get to the too big house too far away from work. Literally burning capital (fuel) - what a waste?<br /><br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><div class="separator" style="clear: both; text-align: center;">
<a href="http://images.huffingtonpost.com/2010-05-20-oil%20production-Oildiscoveryvsproduction19302030.jpg" style="margin-left: auto; margin-right: auto;"><img border="0" height="270" src="http://images.huffingtonpost.com/2010-05-20-oil%20production-Oildiscoveryvsproduction19302030.jpg" width="400" /></a></div>
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<tr><td class="tr-caption" style="text-align: center;"><b>Peak Oil Production? Something wrong with this picture? </b><a href="http://www.huffingtonpost.com/matthew-stein/the-perfect-storm-six-tre_b_582779.html" target="_blank">Source Matthew Stein</a> </td></tr>
</tbody></table>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjixcfMgPKV6-SV0R0tucQWnXKYC0DqyLylRJbZz8NLb5p2ZW7b55Yz9V6rpABTuIQhTbNbdvCiNYvHOmU0p51cgG0g63lCKUvpak9SvfNSkm1ddkuL9NVLY_l2srcjT-xN_ak6r8xokon5/s1600/AEO_fig_44.png" style="margin-left: auto; margin-right: auto;"><img border="0" height="316" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjixcfMgPKV6-SV0R0tucQWnXKYC0DqyLylRJbZz8NLb5p2ZW7b55Yz9V6rpABTuIQhTbNbdvCiNYvHOmU0p51cgG0g63lCKUvpak9SvfNSkm1ddkuL9NVLY_l2srcjT-xN_ak6r8xokon5/s1600/AEO_fig_44.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Gas Production is increasing - Time to Switch to a Natural Gas Car?</b></td></tr>
</tbody></table>
</li>
<li><b>Introduction of the consumer model</b> - buy buy buy, throw away or get a bigger house to fill up!<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.algalita.org/blog/wp-content/uploads/2012/10/Annual-World-Plastics-Production-in-tons.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="315" src="http://www.algalita.org/blog/wp-content/uploads/2012/10/Annual-World-Plastics-Production-in-tons.jpg" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Plastic Fantastic until it breaks, degrades or is obsolete</b></td></tr>
</tbody></table>
</li>
<li>Creation of <b>powerful self interest groups</b> that are able to buy & erode democracy - keeping the status quo has been profitable for politicians and companies alike. </li>
<li> Accumulation of huge amounts of <b>debt and benefits<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.ericgarland.co/wp-content/uploads/pix/2012/01/Total-Global-Debt.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="241" src="http://www.ericgarland.co/wp-content/uploads/pix/2012/01/Total-Global-Debt.jpg" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Rising faster than GDP - </b><a href="http://www.ericgarland.co/2012/01/16/a-quick-observation-on-total-global-debt/" target="_blank">Source Eric Garland</a><b><br /></b></td></tr>
</tbody></table>
</b></li>
<li><b>Health / sick care</b> pillaging from the public purse and health. Yes we treat illnesses instead of preventing them. Advertising of known foods and products that damage our health are allowed Freedom of choice right? Where is the profit in selling good healthy food that you do not need to eat in huge quantities and contain addictive unhealthy ingredients.<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://healthcaretrends.files.wordpress.com/2010/12/oecd-spend-trends-gdp1.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="316" src="http://healthcaretrends.files.wordpress.com/2010/12/oecd-spend-trends-gdp1.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Health Care or Sick Care?</b> <a href="http://healthreformtrends.com/2009/08/22/comparison-of-healthcare-spend-us-vs-world/" target="_blank">Source healthreformtrends</a><b><br /></b></td></tr>
</tbody></table>
</li>
</ol>
<h2>
So What Happens Next?</h2>
What will our ageing societies do with their accrued 'wealth'. Is it going to be sold, spent and squandered. Vegas here we come, exhausting trips to far away lands, Face lifts, Sports cars, Golf, Fishing, Bridge club pointless really.<br />
<br />
Perhaps wealth and knowledge (retirement is a terrible thing really - all that know how and wisdom consigned to the past) is going to be passed down, invested or given?<br />
<h2>
</h2>
Unfortunately I believe the former will happen. Party time for the old timers! You can't begrudge them some of their time in the sun we can just hope it leaves something left over of value for the future.<br />
<br />
Do consumption stocks do OK? They will be indiscriminately sold to 'pay' for the boomers retirement along with every other stock but their goods will still be required.<br />
<br />
Does the selling have a detrimental effect to the entire market and drive down the retirement income resulting in a death spiral with ultra low interest rates, ultra low bond rates, ultra low dividend returns and lower retirement payouts? <br />
<h2>
Boomers Change their Consumption Habits</h2>
<h3 style="text-align: center;">
Increases in consumption</h3>
<ol>
<li>More health care</li>
<li>More eating out</li>
<li>Continue to work longer to maintain current lifestyle</li>
<li>More luxury goods</li>
<li>Holidays</li>
<li>Retirement entertainment activities (golf, spar, tennis etc.) </li>
</ol>
<h3 style="text-align: center;">
 Decreases in consumption</h3>
<ol>
<li>No commute to work</li>
<li>Move to a smaller house</li>
<li>Selling investments to pay for retirement</li>
</ol>
<ol></ol>
<h2>
Younger Generations Deal with the Fall Out</h2>
So how will the boomer benefits be paid for in the mean time, unfortunately through higher taxes. Younger generations will be spending / saving / investing <i>less</i> not a good equation in anyone's book? <br />
<br />
<b>Entertainment </b>- less eating out / cinema<br />
<b>Clothing </b>- wearing out clothes before buying new / less designer brands<br />
<b>Smaller, more fuel efficient cars</b><br />
<b>Holidays closer to home </b><br />
<b>Less investments</b> / money to save in stocks / bonds etc.<br />
<br />
Does this cause a feedback loop into the ultimate middle class source of wealth - <b>housing</b>:<br />
<ul>
<li>Boomers want to downshift</li>
<li>Gen X / Y cannot afford to buy a house / apartment and have to rent</li>
<li>Larger sized properties drop in value - boomer that are late to the downsize party are loosing out</li>
<li>Boomers en mass stampede to sell their larger properties making the housing crash worse.</li>
<li>All housing starts to drop in value and finally finds an equilibrium at a fair price for society</li>
<li>Unfortunately this re rating of housing has the possibility to leave devastation in its wake destroying huge swathes of paper wealth.</li>
<li>What inheritance will be left? At least the housing is cheaper!</li>
<b><u>
</u></b></ul>
Perhaps this is why the financial system is being propped up with easy QE money to maintain the myth of asset wealth and the massive misallocation of capital that has taken place.<br />
<ul>
</ul>
<h2>
The Likely Winners in the Inevitable Reallocation of Capital?</h2>
We are going to redistribute capital whether we like it or not. The forceful destruction of debt and serfdom will cause a repricing of assets to their real world price / value.<br />
<br />
By this I mean the price of everyday needs (food, shelter and energy) over wants and desires (designer goods, gizmo's, luxury holidays).<br />
<br />
Knowing what we do where will the "<a href="http://getintheringwithme.blogspot.com/2013/10/stuck-generation.html" target="_blank">Hero Generation</a>" look to re-deploy this wasted capital creating a new boom in the global economy? A good starting point is to revert back to Maslow's pyramid of needs to get the basics right before wasting capital on silly items and activities.<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiPzhnQZKdXjs55FOa1tXDqnVAn0uoerYHiP_nkK6TnLLrAQrhb0UPQk4pJ9Vp7Jza3QkXwPo9_-bBvV7P6tbCT0MmzcdHHS3oNCGPMbpDqC6HfcR5ohiHv9hb3Yymxg8NGndjx_dOmIYd/s1600/Maslow.jpg" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiPzhnQZKdXjs55FOa1tXDqnVAn0uoerYHiP_nkK6TnLLrAQrhb0UPQk4pJ9Vp7Jza3QkXwPo9_-bBvV7P6tbCT0MmzcdHHS3oNCGPMbpDqC6HfcR5ohiHv9hb3Yymxg8NGndjx_dOmIYd/s1600/Maslow.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Maslows Pyramid of Needs</b></td></tr>
</tbody></table>
<ol>
<li><b>Energy efficiency</b> -  there are very simple energy efficiency steps that can be taken. Smaller house, well insulated, smaller car, collect rain water, turn off unused electrical goods etc.</li>
<li>All new building needs <b>new planning guidelines</b> based on a community self sustaining design</li>
<li>All products should be <b>built to last</b> - laws can drive this change.</li>
<li><b>Working from home</b> should be actively encouraged and rewarded</li>
<li><b>Consumption must be reduced</b> - anything that could go digital should (books, magazines, newspapers, bills, certificates and the like.) </li>
<li>More food needs to be <b>grown locally</b> and exotic food should be taxed very highly to reflect the energy it consumes in transport.</li>
<li><b>Education needs to change focus</b> to help develop the industrious, autonomous, gregarious, go getting individuals needed in for the rapid re-design of the broken system.</li>
</ol>
All this buys us time to correctly allocate capital into robust 
(Anti Fragile) living arrangements. This would have the following 
benefits<br />
<ol>
<li><b>Healthy living</b>- reducing our need for health care</li>
<li><b>Cheap energy security</b> - compressed air / electric cars run of solar arrays</li>
<li><b>Reduction</b> <b>in pollution</b> - less packaging = less plastics =
 less toxins = less persistent waste that takes years to degrade = less 
landfill waste.</li>
<li><b>More biodiversity</b> - just read about the die off of the bees - a very
 bad problem for our food security highly likely related to mono culture
 crops and pesticides.</li>
</ol>
<h2>
Choosing Prosperous Financial Independence Investments</h2>
Perhaps the ever grinding higher stock market indexes will hit a plateau or gradually decline for a prolonged period of time while a readjustment is made. By a re-adjustment I mean a re-allocation of generational wealth from the boomers to us youngsters.<br />
<br />
Once this adjustment has taken place a new freer and prosperous time is likely to appear with the rules of the game rewritten in a fairer economic system.<br />
<br />
In this is the case a stagnant / declining index is not viable for the 4% draw down rule, which has been fuelled by consistent growth in the world economy, may hit a wall for a period of years through the great reallocation of capital and generational wealth. <br />
<br />
Here are some inflation adjusted and <a href="http://getintheringwithme.blogspot.com/p/market-analysis.html" target="_blank">cyclically smoothed market and commodity data graphs</a><br />
<iframe frameborder="no" height="500" scrolling="yes" src="https://docs.google.com/spreadsheets/d/1jVkZHm4bo-_dCoKwvayag7Sb-z8ZGpG3AV1uQoN-Tj0/pubhtml?widget=true&headers=false" width="750"></iframe>

In this period of time perhaps stock picking wins over index tracking. Perhaps due to the destruction of wealth of industries that rely on huge profit margins from brand loyalty, cheap resource inputs and frivolous spending - avoiding these sectors could be the difference between true financial independence or back to work.   <br />
<br />
Going defensive by choosing dividend value growth stocks with lower yields in industries with goods and services people NEED may be the better approach to take. Have a look at this blogs <a href="http://getintheringwithme.blogspot.com/p/stock-screen.html" target="_blank">stock screen</a>*:<br />
<br />
<iframe frameborder="no" height="300" scrolling="yes" src="https://docs.google.com/spreadsheets/d/1rk_3w8cmIsy_vkeiH1W6AHpFpzXXMRnWwsq7HJPb1jE/pubhtml?widget=true&headers=false" width="750"> </iframe>

<br />
<br />
These companies could be bought at a current high price to the future as boomers indiscriminately sell off their stocks. The peace of mind is that you can live off the dividends alone that should be safe as the companies profits are derived from people's NEEDS.<br />
<br />
<b>Cash equivalents</b> can be kept on hand to wait for the inevitable stock pullback / crash to take advantage of opportunities.<br />
<br />
<b>Trailing sell stops</b> can be applied to your current portfolio (on non core holdings) to help preserve capital in the case of a crash.<br />
<br />
Peace, prosperity and happiness<br />
<br />
<b>CoNTeNDeR</b><br />
<br />
<span style="font-size: x-small;">* The stock screen and market analysis information is provided for entertainment purposes only. I have never worked in the financial industry and am self taught. Always do your own research and seek professional advice as required and refer to the big fat disclaimer that comes with this site.</span><br />
<br />
<b>Welcome New Readers!</b> Please take a look around.<a href="http://getintheringwithme.blogspot.com/p/about-me.html" target="_blank">Click here</a><b> </b>to find out more about <b>THE.TriBe</b> and the blog is or perhaps browse the <a href="http://getintheringwithme.blogspot.com/p/all-posts-get-in-ring.html" target="_blank"><u>all posts list</u></a>, Please feel free to play with the <a href="http://getintheringwithme.blogspot.com/p/muff-tools-and-check-lists.html" target="_blank">planning tools and checklists</a>. If you liked this post can you please spare a few seconds to share it?

Generational Imbalance

THE.FuTuRe: "You are getting old Contender, you need someone to look after you like the government......." CoNTeNDeR : "...

Messed Up, Clued Up, Wised Up

Contender 2 Critical Thinking, downshifting, Early Retirement, financial freedom, financial independence, Planning, Risk, Saving 19:46

<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjF_hEtwoI33Yb-6rAIHdOR0WdhcvxAxRx4rozwx57yNmWOO01mvqKEilv_oXTUr_hrw0TAJ7tNQOQiKcCT-I3e_4wX5j6oiyRbn9kXVh1dqgPHxxExMWdMWLg5Het-ME3n-8c5dNzvJBbt/s1600/Books.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="189" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjF_hEtwoI33Yb-6rAIHdOR0WdhcvxAxRx4rozwx57yNmWOO01mvqKEilv_oXTUr_hrw0TAJ7tNQOQiKcCT-I3e_4wX5j6oiyRbn9kXVh1dqgPHxxExMWdMWLg5Het-ME3n-8c5dNzvJBbt/s1600/Books.jpg" width="320" /></a></div>
<span style="font-family: inherit;"><span style="font-weight: normal;">As human beings we start off in life learning from our parents who generally protect us from the real world. We make mistakes, do and say things we shouldn't. All part of being a kid and the learning process. Later in life we act and talk bravado, drink and party too much, fun, fun, fun continuing the learning process. Eventually adolescence leaves us behind, the real world of work and personal responsibility beckons but we are still a long way from being wise.</span></span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;"><span style="font-weight: normal;"><b>To be financially independent is to learn to be wise with our investments. We need to manage and adapt them to deal with the opportunities and uncertainties that we will be presented with in the 40+ years of living financially independent. </b></span></span><br />
<br />
<span style="font-family: inherit;"><span style="font-weight: normal;"><b>Specifically this post considers how we gain wisdom to overcome some of the challenges to our financial independence and what we could do about them.</b> </span></span><br />
<h2>
<span style="font-family: inherit;"><b><span style="font-weight: normal;">Confidence (</span></b><span style="font-weight: normal;">A.K.A THE.PaST)</span></span></h2>
<blockquote class="tr_bq">
<span style="font-family: inherit;"><span style="font-weight: normal;"><b>Confidence</b> is generally described as a state of being certain 
either that a hypothesis or prediction is correct or that a chosen 
course of action is the best or most effective.<u><b>???</b></u></span></span></blockquote>
<span style="font-family: inherit;"><b>Before looking at some options for financial resilience, let's consider some of the major changes to our lives and what we can learn from them.</b></span><br />
<h2>
<span style="font-family: inherit;">
Past Precedents</span></h2>
<span style="font-family: inherit;">In the recent past mankind has overcome numerous challenges. The green revolution has fed the masses and enabled us to hugely increase the world population. Nuclear power came along at the right time to reduce our consumption of oil, coal and gas which in turn have been tapped with space age technology.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">Companies have thrived, profits have flowed. Based on our past it is fair to believe that things will continue as they always have<b> </b> the status quo and invest accordingly based on long term trends. There are numerous investment approaches to manage investments in several of the websites linked from the front page of this site.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">Investment opinions and approaches are just opinions albeit backed up with historical precedents. Should one run one's life and investments based on the opinions and ideas of others? Perhaps they should be used <u><b></b></u>as a way to build wisdom, take responsibility for ones decisions, think outside the box and get rich instead of market average?  </span><br />
<h2>
<span style="font-family: inherit;"><span style="font-weight: normal;">Arrogance (A.K.A THE.PReSeNT)</span></span></h2>
<blockquote class="tr_bq">
<span style="font-family: inherit;">The act or habit of <a href="http://en.wiktionary.org/wiki/arrogate" title="arrogate">arrogating</a>, or making undue claims in an <a href="http://en.wiktionary.org/wiki/overbearing" title="overbearing">overbearing</a>
 manner; that species of pride which consists in exorbitant claims of 
rank, dignity, estimation, or power, or which exalts the worth or 
importance of the person to an undue degree; proud contempt of others; 
lordliness; haughtiness; self-assumption; presumption.</span></blockquote>
<h2>
<span style="font-family: inherit;">Seeking Wisdom from the Past</span><span style="font-family: inherit;"><br /></span></h2>
Wisdom takes time. <span style="font-family: inherit;">For me THE.CoNTeNDeR the light bulb dimmer was adjusted up a little around the age of 36. I write my opinions here on this blog - are they wise, perhaps they are wiser for <u>me</u> but how would you know when you have wisdom or enlightenment?</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">As you grow older you tend to be more reflective instead of impulsive, learn to understand and accept risks, take responsibility for your actions, developed a greater depth of knowledge and skills, learnt how to keep your hand on the pulse and filter out the chaff from the important.</span><br />
<blockquote class="tr_bq">
<span style="font-family: inherit;">"Bloggers write s**** with exclamation marks and bad punctuation with no concrete evidence" - quoted in the film Contagion</span></blockquote>
<span style="font-family: inherit;">Is it wisdom when you have learnt how to be objective, understand different points of view, listen to others and then critically analyse the information and make your decisions?</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">Is giving no advice and just asking probing questions good advice? Is listening and asking relevant questions the right way to be happy with your family friends and colleagues?  Do what you believe is right. Don't take anyone else's advice for granted or blame someone for taking it.<b> </b>At the end of the day you are the person ultimately taking the action of your own free will. </span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">Listen, think, ignore and do what is right for you.</span><br />
<h2>
</h2>
<h2>
<span style="font-weight: normal;">Delusion (A.K.A THE.FuTuRe)</span></h2>
<blockquote class="tr_bq">
<span style="font-family: inherit;">A <b>delusion</b> is a <a href="http://en.wikipedia.org/wiki/Belief" title="Belief">belief</a> held with strong conviction despite superior evidence to the contrary. As a pathology, it is distinct from a belief based on false or incomplete information, <a href="http://en.wikipedia.org/wiki/Confabulation" title="Confabulation">confabulation</a>, <a href="http://en.wikipedia.org/wiki/Dogma" title="Dogma">dogma</a>, <a href="http://en.wikipedia.org/wiki/Illusion" title="Illusion">illusion</a>, or other effects of <a href="http://en.wikipedia.org/wiki/Perception" title="Perception">perception</a>.<u><b> </b></u></span></blockquote>
<h2>
<span style="font-family: inherit;">Present & Future Opportunities?<u></u></span></h2>
<span style="font-family: inherit;">I thought it is worthwhile to consider a few things going on in the world today that definitely raise a few questions on the viability of financial independence.</span><br />
<ol>
<li><span style="font-family: inherit;"><b>Cyprus Precedent</b> - Your money in a bank is not actually yours - you lend it to them and it is a liability for them. What stops a bank haircut across the board?</span></li>
<li><span style="font-family: inherit;"><b>Negative interest rates</b>! Yes you pay the bank to look after your money which it may use in risky lending practises to make more money or the bank safe?</span></li>
<li><span style="font-family: inherit;"><b>Money flows into stocks and especially dividend stocks.</b> These "investment" actually become risky in a high inflation environment under performing in real terms as margins are eroded.</span></li>
<li><span style="font-family: inherit;"><b>Real estate prices rise as money finds a home</b> - over inflating the price of a home. Worse still people buying a home with a mortgage have to take on more debt. Debt = time and lots of debt = debt slavery. If the property bubble bursts the debt remains and due to the inherent leverage in the system the buyer can be left with huge losses.</span></li>
<li><span style="font-family: inherit;"><b>Increase in the money supply / inflation increases living costs</b>. Just divide 72 by the inflation rate to get the time for prices to double. e.g. a 4% rate 72/4 = 18 years!</span></li>
<li><span style="font-family: inherit;"><b>Resource depletion</b> - why are we digging up huge swathes of Canada, fracking US plains and drilling miles under the sea? At the same time US gasoline usage has cratered by 60%+ and oil is hovering around $100</span></li>
<li><span style="font-family: inherit;"><b>Central bank / government intervention and herd</b> <b>mentality</b> - financial markets are just as emotionally driven as they are fundamentally valued. Central banks can completely change the rules of the game. Governments can force changes on the populous.</span></li>
<li><span style="font-family: inherit;"><b>Black swan events</b> - what about the nuclear fusion problem being solved in the next 5 years and "free" energy being available for everyone? </span></li>
</ol>
<span style="font-family: inherit;">Joining some of the dots together above highlight that time could be a changing.What about the FI enthusiast what does this mean to the 4% withdrawal guideline? Like everything in life it is a rule of thumb, guideline based on historical norms (how long has it been normal?)</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">Guidelines are there to be broken, re-defined just as the current rules of the game in finance are being changed favouring different people and entities. </span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;">Who knows? Perhaps the 4% rule becomes the 6% rule as we may be ushering in a new prosperity. Instead of saving 25 times your outgoing you only need to save 20 times instead? What if you invest in the right sectors?</span><br />
<h2>
<span style="font-family: inherit;">
Opportunistic Investments?</span></h2>
<ul>
<li><span style="font-family: inherit;">Oil is depleting - invest in oil companies with long life reserves and <b>buy a small car</b>?</span></li>
<li><span style="font-family: inherit;">Food costs more - <b>grow your own</b>?</span></li>
<li><span style="font-family: inherit;">Electricity is going up - get some <b>solar panels</b>, wind turbine our water wheel?</span></li>
<li><span style="font-family: inherit;">Cash savings are loosing their value. Learn about fiat money and why we are told inflation is good and deflation is bad (to whom?) - <b>invest your spare cash </b>(always keep a cash buffer for opportunities and emergencies)  in perhaps productive farmland or forestry, perhaps a depleting resources such as platinum, copper or silver or rarity in artwork, first edition books, stamps?</span></li>
<li><span style="font-family: inherit;">Have your <b>own business</b> so you can set the right prices for your needs. </span></li>
<li><span style="font-family: inherit;"><b>Have a strategy, a backup strategy and and backup backup strategy</b>. What if rental yields drop - should you exit?, Stock markets soar - should you sell some and buy rental properties? What happens if the misses is pregnant with triplets or you receive an inheritance windfall?</span></li>
<li><span style="font-family: inherit;">What are the growing businesses of the world? What are the trends where are the opportunities? Perhaps take time twice a year to <b>read up on the future</b>. Trend forecast sites can be a good source of information, consider any of the new websites, buzz gadgets that are the new big thing. What are the key resources needed to provide our 21st lifestyle? (e.g. rare earths, silver, semi conductors, solar panels, new drugs etc.)</span></li>
<li><span style="font-family: inherit;">You are getting older - <b>look after yourself</b> as health costs are rising - avoid processed foods high in sugars and fat, eat fresh local produce, clean your teeth properly, look at alternative medicines and preventative treatments.  </span></li>
</ul>
<h2>
<span style="font-family: inherit;"><span style="font-weight: normal;">Wisdom (A.K.A .....Dalai Lama, Thomas Jefferson, Socrates.....)</span></span></h2>
<blockquote class="tr_bq">
<span style="font-family: inherit;"><b>Wisdom</b> is the ability to think and act using <a href="http://en.wikipedia.org/wiki/Knowledge" title="Knowledge">knowledge</a>, <a href="http://en.wikipedia.org/wiki/Experience" title="Experience">experience</a>, <a href="http://en.wikipedia.org/wiki/Understanding" title="Understanding">understanding</a>, <a href="http://en.wikipedia.org/wiki/Common_sense" title="Common sense">common sense</a>, and <a href="http://en.wikipedia.org/wiki/Insight" title="Insight">insight</a>.</span></blockquote>
<h2>
<span style="font-family: inherit;">Muses on attaining wisdom</span></h2>
<ul>
<li><span style="font-family: inherit;"><b>Listen</b> more than talking</span></li>
<li><span style="font-family: inherit;">Read, observe, analyse, criticise, and <b>form your own opinions</b> </span></li>
<li><span style="font-family: inherit;">Be idle and <b>have idle thoughts</b></span></li>
<li><span style="font-family: inherit;"><b>Ask questions</b> with no right or wrong answers - What is the meaning of life?</span></li>
<li><span style="font-family: inherit;">Have friends that like a good <b>debate</b></span></li>
<li><span style="font-family: inherit;"><b>Don't jump to conclusion</b>s, listen, ask and understand the other persons point of view</span></li>
<li><span style="font-family: inherit;">Wait - there is no real rush - <b>take your time</b> when making decisions and weigh up all options </span></li>
<li><span style="font-family: inherit;">Open your mind - <b>everything is interesting</b>, there is no right or wrong just choices with different outcomes. What are the outcomes you want?</span></li>
<li><span style="font-family: inherit;"><b>Have a go</b> at anything and everything </span></li>
</ul>
<span style="font-family: inherit;">Why do we want to be at p</span><span style="font-family: inherit;">eace, prosperous and happy? ...</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;"><b>CoNTeNDeR</b></span>

Messed Up, Clued Up, Wised Up

As human beings we start off in life learning from our parents who generally protect us from the real world. We make mistakes, do and say ...

The Optimist, Realist and Pessimist

Contender 0 #financialindependence, Critical Thinking, financial independence, Happiness, Risk, Saving 22:10

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<i></i>
<i>Once upon a time there was an <b>OPTiMiST </b>he went about his day with a smile on his face and the wind in his back. He was off to see his friend the <b>PeSSiMiST</b>. </i><br>
<br>
<i>Mr </i><i><i><b>PeSSiMiST</b></i> was having his usual grumble about his day and life in general, why doesn't anything work and I am stuck with this life? Just listen to the news a meteor is going to hit the earth any time now Doomed, Doomed I say!</i><br>
<br>
<i>Naturally Mr<b> OPTiMiST </b>shrugged his shoulders (whatever next he thought) - and moved onto his joke of the day to cheer up the poor old chap unfortunately to no avail</i>.<br>
<br>
<i><span style="font-size: small;">Then along came Mr <b>ReaLiST </b>he was going about his business, walking past the local lottery machine shaking his head on his way to deposit some savings at the bank...Hi guys see you in the pub after work for a beer.</span></i><br>
<span style="font-size: small;"><br></span>
<span style="font-size: small;"><span style="font-size: large;">Who are We?</span></span><br>
<span style="font-size: small;"><br></span>
We can all probably place ourselves in each of these classifications depending on our circumstances and mood.<br>
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Perhaps whole countries could be generalized in one of the classifications - in the UK we always complain about the weather and always look at the other side of the coin. Not everything is rosy but it ain't bad. So we are probably more of a plan for tomorrow realist bunch.... Whenever I have worked in America I consider them as optimistic go-getters, very driven and optimistic about almost everything. These are <span style="font-size: small;">generalisations for sure and completely off the mark depending on your point of view.</span><br>
<span style="font-size: small;"><br></span>
<span style="font-size: large;">Exploiting the moment</span><br>
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These traits can be the financial independence worst adversary or even weakness. The world is setup to prey on these traits so that you squander your money.<br>
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The optimistic young adult starting out in the real world looking for an identity is quickly lured into the world of Sex. You must buy this brand of clothes, listen to this music drive that car. While you are at it buy this perfume / deodorant it is all you need to have scantly clad members of the opposite sex running after you. Feeling more optimistic about your chances?<br>
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On the flip side we have the DOOMERS! BEWARE THE DOOMERS! The end of the world is neigh, load up on food, guns and ammo - you can't eat it but you can use it and trade it. A trade in death - nice..... Hunker down, save cash under their pillow don't speculate don't get rich.<br>
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What about those weird realists - stuck in the middle - middle class? A nerd - you must have this games console, this most awesome powerful PC. A striver - buy these books to make you rich attend this course and buy these stocks. Save for your pension work hard until you retire at 70. Spend the rest and get the biggest mortgage possible. Bahh Humbug!<br>
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Now after recognising some of the weakness and what does the #financialindependence #downshifter do?<br>
<br>

The Optimist, Realist and Pessimist

Once upon a time there was an OPTiMiST he went about his day with a smile on his face and the wind in his back. He was off to see his fri...

CoNTeNDiNG with RiSK

Contender 0 Conformity, Early Retirement, financial independence, Planning, Risk 10:28

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<tr><td class="tr-caption" style="text-align: center;">A Risky Move?</td></tr>
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<b>RISK: </b><i>"Contender get.in.the.ring.with.me come on let's see what you've got. I am everywhere you have no way of dealing with me. Heck THE.FUTURE has you by the short and curlies and now I am on the scene! Give up go home."</i><b><br></b><br>
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<b>RISK is everywhere. It is around every corner, every decision every minute. THE.CoNTeNDer may have been "trained" to consider risks in his project management days. Unfortunately RISK training is one thing being good at handling risk and executing a plan is a completely different matter altogether.</b><br>
<b><br></b>
<b><span style="font-size: large;">CoNTeNDeR'S RiSKY PaST...Or Not... </span></b><br>
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CoNTeNDeR just as everyone else has taken risks in life. To name a modest few:<br>
<br>
Jumping out of a tree and ONLY breaking his arm. Hitching a car ride at one o'clock in the morning in the middle of the countryside. Hospitalised several times whilst playing rugby. Living in Wales after coming from England and speaking with an English accent. Going to university. Getting in debt with a brand new German automobile. Choosing a job in a completely different field a long way from home, getting married and having kids with his French wife. Working towards financial independence and moving to France.<br>
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Was any of that really risky? More on that below.<br>
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THE.CoNTeNDeR could have fallen on any number of swords in THE.PaST. Along the way he did  slip on a few banana skins. He is none the worse for the 'experiences' and perhaps a bit more humble and wiser for the c*** ups!<br>
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There were several times of getting lost in alien countries Spain and Italy, incurring speeding and fare avoidance fines as well as avoiding a major car crash in Poland. Messing up an update to a planning system that wiped out all of the production and distribution plans for the day. Getting the jeep stuck in a game reserve in and running back through the reserve (containing several dangerous animals such as Rhino and Hyenas) to get help and jumping into a crocodile infested lake in Zimbabwe - yes it's true!  <br>
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At least C is still here and still legal. It has been quite a ride as Bill Hicks said: <br>
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CoNTeNDiNG with RiSK

A Risky Move? RISK: "Contender get.in.the.ring.with.me come on let's see what you've got. I am everywhere you have no way o...

4 Protections for Financial Armageddon?

Contender 0 Black Swan, Critical Thinking, Early Retirement, Financial Armageddon, frugality, Inflation, Investing, Risk 20:51

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<b>Financial Armageddon</b> talk is all across the alternative media. Lax lending that caused the crisis for the banks in 2008 has now been transferred to governments worldwide. Unlimited money printing in the US by the Federal reserve will continue until the economy improves. Commodity prices spiked on this news and will most likely continue to increase in value due to monthly injections of freshly printed money. <b>Boy does it sound like we are screwed.</b><br>
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<i><b>THE.CONTENDER</b> is very concerned primarily about <b>inflation</b>. Central banks in Europe, US and Japan are printing money for fun while China is stimulating through a colossal infrastructure spend. Historical monetary events (of stealth default through money printing) does not fill </i><i><b>THE.CONTENDER</b> with confidence we are on the right path to. We do not seem to learn from past mistakes (a generation passes as does the wisdom) when it comes to excessive debt and sound money. <i>In this post </i></i><i><i><b>THE.CONTENDER</b> is going to try to summarise  <b>four key protection strategies</b> that
 could work out very well regardless of a <b>Financial Armageddon</b> or <b>severe inflation</b>.</i></i></div>
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<i>For more information see the following books <a href="http://www.amazon.co.uk/When-Money-Dies-Nightmare-Hyper-Inflation/dp/1906964440/ref=sr_1_3?s=books&ie=UTF8&qid=1339230790&sr=1-3" target="_blank">When Money Dies (2010)</a>, <a href="http://www.amazon.co.uk/Paper-Promises-Money-World-Order/dp/0718192141/ref=sr_1_1?s=books&ie=UTF8&qid=1347868634&sr=1-1" target="_blank">Paper Promises (2012)</a> and <a href="http://www.amazon.co.uk/Financial-Armageddon-Protecting-Impending-Catastrophes/dp/141959608X/ref=sr_1_2?s=books&ie=UTF8&qid=1347869641&sr=1-2" target="_blank">Financial Armageddon(2007)</a> my
 previous posts cover how </i><i><b>THE.CONTENDER</b> is investing: <a href="http://www.getintheringwithme.blogspot.co.uk/2012/07/round-5-156s-investment-challenges.html" target="_blank">Investment challenges</a> and <a href="http://www.getintheringwithme.blogspot.co.uk/2012/08/risk-versus-reward-round-5-2m-59s.html" target="_blank">Risk Versus Reward</a>.</i></div>
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In Europe under capitalised banks are basically lying about their assets value they are insolvent. Several PIIGS governments are being forced to pay ever increasing interest on their government bonds whilst bailing out the banks. The ECB is trying all options to <b>bail out countries</b> against the backdrop of a fractured political landscape.<br>
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As the ECB cannot buy government bonds outright, get this, it is giving money to the banks, to buy the bonds, and then buying them back from the banks!!!! - complete fraud in my opinion. Supposedly this will be sterlised (printing no new money), who are they trying to fool - the debt is too large, the supposed assets over valued. The debt and interest cannot be fully paid back. The ECB will take significant paper losses equating to an increase in the money supply in the future. More money created dilutes existing money which is now worth considerably less. To whose benefit?<br>
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<i>Zero interest rates are screwing savers and retirees but fixed rate debt is paying off. I wonder who owns that.......</i><br>
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Most "answers" so far have been to "<b>kick the can down the road</b>" - print money instead of dealing with the issue head on greed has created too much un-payable debt. Why does the west not copy Iceland - they defaulted on their debt, brought criminal charges against the people who abused the system and their countries goo will then started again from a new sustainable base. They are thriving again. The benefit of money printing is for debt holders (creditors). The young are enslaved with excess debt while struggling to find a decent job to pay off. The retired and savers are being stiffed by ultra low interest rates and <a href="http://www.shadowstats.com/alternate_data/inflation-charts" target="_blank">high shadow inflation</a>. <br>
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This does not bode well for the generations of the future who have to pay the bill. They also have the possibility of Financial Armageddon to deal with. By this <b>THE.CONTENDER</b> means hyperinflation leading to mass joblessness and massively reduced living standards.<br>
<blockquote class="tr_bq">
<a href="http://www.amazon.co.uk/Wall-Street-Collectors-Michael-Douglas/dp/B00347A32G/ref=sr_1_1?ie=UTF8&qid=1348083077&sr=8-1" target="_blank">"Greed is good" - Gordon Gecko, Wall Street </a></blockquote>
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Quantitative Easing (buying government debt using printed money) in the US, Europe, and Japan is all about currency debasement to reduce the value of the debt. They are paying the debt back with less valuable currency. The elite has done everything in its power to maintain this status quo. They ensure that they get their debt repayments instead loosing out as the debt is defaulted to allow society to starting on a new sure footing as in the case of Iceland.<br>
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The elites are squeezing the productive middle class worker bee families with inflationary policies. The middle class is the productive class. A self perpetuating spiral of job losses due to destroyed demand and lower living standards. If the vampires that sucks the blood from the middle class victims continue who will be left to serve?  <br>
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4 Protections for Financial Armageddon?

Financial Armageddon talk is all across the alternative media. Lax lending that caused the crisis for the banks in 2008 has now been t...

Welcome to FISH !
You have come here looking for answers. How to get out of debt? How to save and invest? How to retire early and how you want to live in retirement.

Well this is the right place for you as out tribe has been through all of these steps. We no longer work for a corporate employer and have saved enough to retire early. How we did this is shared here on this site for you.

Our little tribe found out these secrets to financial independence in our late 20’s. Since then we have taken early retirement, in our late 30's, in just 7 years. We now live in the South West of France with our two young children.

Along the way I decided to share everything I learnt. My articles and tips on aggressive saving and compound investing are there to help you meet your financial goals fast. I discuss ways to help you decide what you want by building a life plan. This helps to work out how to get where you want to be whilst avoiding the pitfalls along the way.

My expertise was built up working in blue chip corporate jobs, extensive reading and putting it into practice. I have condensed this knowledge into simple strategies to help you meet your goals and not those of the bank or the place you work.

There are free planning tools on this site that help you make a life plan. A plan for your future. The tools calculate how to reach your financial goals in a timeline that suits you. The tools help set out your life goals, make them happen and how to exceed them.

There are tips on how to simplifying your life to remove day to day headaches. These include ways to pay off debt fast buy eliminating wasteful spending habits. How to reduce your monthly bills through choices that actually improve your health and wellbeing. Identifying things you don’t need that sap your time and wallet.

There are little sustainability projects to reduce your dependence on shops and utilities whilst saving money to spend on things you want.

All of these little steps will show you how save 50%+ of your salary so you can meet your goal whatever it is. This huge saving rate can be compounded for very early retirement. I am sure you will find something here for you.

Darren Lee (A.K.A the Contender as in my blog)

FISH | Financial Independence Seeking Happiness

20 Positively Stubborn Ways to be FI

Generational Imbalance

Messed Up, Clued Up, Wised Up

The Optimist, Realist and Pessimist

CoNTeNDiNG with RiSK

4 Protections for Financial Armageddon?

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