FISH | Financial Independence Seeking Happiness

12 Things to Get your S*** Together

Contender 3 community, Conformity, Critical Thinking, Debt, Early Retirement, Education, financial freedom, Investing 20:32

<h2>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTZl6uubu1lOl9YfM5suxlFqjrQ705626PDAIix3rpncFpreadsocPi587GoLKl5tGHb8fV6YR03HzusVWCX_15lHpiZcofCzHUJRX3oNWXPsjOp5Il8o8oCVAmElIR9UWE3IMo6Q1hPPK/s1600/DSC_0012.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="Sunflowers at the end of our road in Gascony" border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTZl6uubu1lOl9YfM5suxlFqjrQ705626PDAIix3rpncFpreadsocPi587GoLKl5tGHb8fV6YR03HzusVWCX_15lHpiZcofCzHUJRX3oNWXPsjOp5Il8o8oCVAmElIR9UWE3IMo6Q1hPPK/s1600/DSC_0012.JPG" title="Simple Country Living" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Simple Country Living</td></tr>
</tbody></table>
</h2>
 
<ul>
<li>In this post we going to consider what if the world worked differently from a personal idealistic standpoint (knowing that it won't happen)</li>
<li>Based on the observations what can we do for ourselves. KISSI - Keep It Simple Stupid Ideas</li>
<li>Followed by a list of useful websites </li>
</ul>
<h2>
I Deny Myself A Simple Life</h2>
Are we programmed from birth to deny ourselves an easy happy life? Importantly, if we went down that route, where is the profit motive, drive and ambition that make us human. This may be one of the reasons that society is setup to guide us to "hard work". 
 
We have to "work hard" as we have been programed in two important ways to make sure this happens 
 
<ol>
<li>To buy stuff we do not NEED. By buying the stuff we do not NEED we become DEPENDENT on the banks for the life blood of LIQUIDITY. We sell our PRECIOUS TIME for LOANS to fund a place in the sun today at the expense of the future.</li>
<li>We are told the future is too far off and impossible to predict. Live for today! If you don't nuclear war is coming, environmental catastrophe will drown you, monsters from the deep are coming and aliens with ray guns are going to fry you. If you ever make it to the FuTuRe don't worry as each generation is better of than the last. "Inflation will erode the value of the loan". "Who knows what the future holds", everything will the s*** so why not LIVE FOR TODAY? Buy stuff it makes you happy and desirable!</li>
</ol>
IT is EASY to be sold down that road when you are young, your hormones are running wild and you have to prove yourself in the adult world. 
<blockquote class="tr_bq">
My worst purchases were the designer shirts, aftershaves, expensive W I D E S C R E E N  TV new car, new PC (several times) and games console, what saved me was I lived within my means and was comitted to pay down debt but still spend what was left at the end of each month. It had to change and it did due to moving in with my wife to be. We started to think about what the world around us was all different - CoNTeNDer</blockquote>
<h2>
Lets Turn Our World on its Head - What if</h2>
<ul>
<li>On Media - what if it was biased towards real life and real entertainment</li>
<ul>
<li>Positive stories of achievement and real world lives are the headline news</li>
<li>Documentaries and educational entertainment are prioritized in TV programming</li>
<li>The average Joe was the star instead of being bombarded by "beautiful people" </li>
</ul>
<li>On Fashion - was personal from us and not dictated by the fashion house dreams</li>
<ul>
<li>What if the real answer is that someone will fancy you for who you are and not what you buy.</li>
<li>Everyone looked different in the crowd and unique instead of being seen as an "odd ball" </li>
</ul>
<li>On Work</li>
<ul>
<li>What if you achieved in the job because you are spontaneous and talented instead of a great regurgitation of the company line and butt kisser?</li>
<li>What if we did not waste so much human talent on mindless administration jobs and advertising a dream or an inadequacy and did something really useful?</li>
<li>What if work was more financially fair with the difference in the high to low wages in society falling back to historical averages e.g. the guy at the top gets 40 times the guy at the bottom? Is this anti-capitalist or does it help to pull everyone's wages up? The guy at the bottom has more money to spend and invest and the wealth trickles back into the community, the community thrives and the business grows and the guy at the top makes more.....</li>
</ul>
<li>On Friendship</li>
<ul>
<li>You were happy because you had loads of positive balanced friends.</li>
<li>You gave your time freely and cherished giving thanks in kind</li>
</ul>
<li>On Personal Development</li>
<ul>
<li>You worked out how to do things for yourself and were taught that failure is fine just learn a little from the experience.</li>
</ul>
<li>On Finance</li>
<ul>
<li>You were told to shun debt</li>
<li>Taught to control your finances and invest</li>
<li>Easily setup your own business</li>
</ul>
<li>On Health</li>
<ul>
<li>What if we were taught to grow our own food in School</li>
<li>What if we were really taught to understand where our food comes from and its real cost to the body (see <a href="http://www.amazon.com/Food-Inc-HD-Robert-Kenner/dp/B009K86D86/ref=sr_1_1?s=instant-video&ie=UTF8&qid=1408303705&sr=1-1&keywords=food+inc" target="_blank">FOOD INC</a> and <a href="http://www.amazon.com/The-End-Line-Ted-Danson/dp/B003F8OQUY" target="_blank">The End Of The Line</a> Documentaries) </li>
<li>What if you exercised naturally and regularly - walking to work and the shops, maintaining a garden</li>
</ul>
<li>On Family</li>
<ul>
<li>You had supportive family nearby</li>
</ul>
</ul>
This personal list of observations our Little TRiBe has made down the last few years have really focused our attention on how we avoid DEBT, INVEST and LIVE OUR LIVES today and with THE.FuTuRe in mind. 
<ul><ul>
</ul>
</ul>
<h2>
It's not going to happen any time soon so it is up to you</h2>
Idealism is great. You are philosophising on what things could be like and what deep down you want for your own TRiBe. This is the point that Mr.ReALiSM arrives, pulls your head out of the clouds and douses you with a bucket of cold water. 
 
There are too many interested parties to keep the status quo going. Maybe a butterfly flapping its wings in Connecticut does cause a Typhoon in the South China sea but the average Joe such as the CoNTeNDeR really has his work cut out to make any sort of noise. 
 
Institutions and systems are built up over generations and interested parties have set them up to protect their interests regardless of the odd dissenter in their ranks. Things are not going to change any time soon. 
 
For instance media will not change track any time soon due to its self interest in glamorising people and lifestyles, horror and tragedy - they sell. 
 
Education is provided for the good of the state. It is not providing a full rounded curriculum only what is needed to keep the country running smoothly. They need obedient workers to pay ever increasing taxes.  
 
It is up to indviduals to use our gift to think for ourselves. It is a skill that needs to be mastered, some call it wisdom. (see the post on <a href="http://getintheringwithme.blogspot.com/2014/02/FinancialIndependenceOptimism.html" target="_blank">Positivity, Realism and Pessimism</a> in relation to financial independence planning). So what can we do for ourselves to make our lives simpler, wealthy, challenging and rewarding: 
<h2>
What can one do for ones self?</h2>
<ol>
<li>Learn how to debate, question and think clearly from a young age</li>
<li>Find a mentor, a wise worldly person to talk to and learn from</li>
<li>Limit the amount of advertising and media you expose yourself to - as always question it - is it for your benefit?</li>
<li>Make goals that are what you really want and really need. </li>
<ol>
<li>If being the next Richard Branson is what you want, understand how he did it and work out how to get there. </li>
<li>If you want to be financially independent, understand what type of lifestyle you are looking for and how much income will you need to fund it, then work out how you will obtain the income and how long it will take.  </li>
</ol>
<li>Do not be one of the herd as you will always be average and risk-adverse. Being comfortable is not necessarily free or happy.</li>
<li>Cultivate relationships with a wide range of people - everyone has unique insights to the world around them you can learn from.</li>
<li>Life is a set of challenges for some reason 7 years is usually a good changing point. Get out of your comfort zone on a regular basis, make mistakes and learn from them you will be stronger for it in the future</li>
<li>Read. Books the internet etc. all of that world of knowledge as at our fingertips. There is too much so what do you need to learn at that point in time in your life. Get a book and have a go. Once the skill has been learnt file the skills away mentally (or in a library) for another day.</li>
<li>Accept nothing less than happiness! If you are un-happy move on and do something about it. You are the person in control of the majority of your happiness. You and only you can make a real change. Ditch the bad job if needs be, move, end the bad relationship, kick the bad habits. </li>
<li>Do not accept perfection - it is not possible and will lead to un-needed 
stress follow the 80:20 rule 80% of the results come from 20% of the 
work - delegate the rest!</li>
<li>Ignore other people achievements and focus on your own. Who knows how other people  achieved theirs or how they are funded so don't go there, they are not you. I do not mean ignore the greats such as Aristotle, Socrates, Jefferson et al. just the people next door and in work.</li>
<li>KISSI - Keep it simple stupid ideas</li>
<ol>
<li>Spend less than you earn</li>
<li>Do not accumulate complicated stuff - it is a mental and cost expense for you.</li>
<li>Avoid the need for administration - too many cars / houses etc...TV license and mobile phone contracts.</li>
<li>Keep organized - know where everything is and when it needs to be done (e.g. add your car test to your e-calendar with a reminder).</li>
<li>Stay under the radar - don't gossip or get into trouble.</li>
<li>Take stay-cations enjoy where you live - no cars, planes, passports, booking forms, hotels...</li>
<li>De-clutter / sell stuff on a regular basis and your email subscriptions / junk mail!</li>
</ol>
</ol>
This list could be very long to capture every different angle that is available. It cannot cater for each person's own dreams all it does is point out some of the pitfalls our little TRiBe HAS fallen into in THE.PaST. 
 
Our message is we had to learn to avoid the temptations and bull**** that are thrown at us in the modern world. We had to think long term and work backwards towards our goals. We have had to be adaptable and have changed directions and our aspirations. We have plans for the coming years and fully expect them to change albeit hopefully not as much as in out 20's and 30's! 
 
<a href="http://getintheringwithme.blogspot.fr/2012/10/10-career-skills-for-early-retirement.html">10 Career Skills for Early Retirement</a>,  
<a href="http://getintheringwithme.blogspot.com/2012/11/6-habits-for-very-early-retirement.html">6 Habits for Very Early Retirement </a>. 
 
So ask the question what do you really want. That end goal and that good set of goals. Aim for it. Get it. 
 
Here are some useful websites and links: 
<ol>
<li><a href="http://briankim.net/" target="_blank">BrianKim.net</a> - great daily pick me up emails</li>
<li><a href="http://www.stevepavlina.com/" target="_blank">Steve Plavlina</a> - thoughtful personal development website</li>
<li><a href="https://www.stephencovey.com/7habits/7habits.php" target="_blank">Steven Covey</a> - 7 Habits and the 8th Habit- they are even teaching the methods in schools</li>
<li><a href="http://www.stevenaitchison.co.uk/blog/" target="_blank">Change your thoughts</a> change your life</li>
<li><a href="http://www.mrmoneymustache.com/" target="_blank">Mr Money Mustache</a> - frugal living</li>
<li><a href="http://retireby40.org/" target="_blank">Retire by 40</a> - Some great finacial models</li>
<li><a href="http://simple-living-in-suffolk.co.uk/" target="_blank">Simple living in Suffolk</a> - Sound financial and life advice from old blighty</li>
</ol>
A couple of new(ish) financial independence sites from the UK 
 
<a href="http://mistersquirrel.com/" target="_blank">Mr Squirrel</a> 
<a href="http://theescapeartist.me/" target="_blank">The Escape Artist</a> 
 
Peace, prosperity and happiness 
 
CoNTeNDeR 
 
Welcome New Readers! Please take a look around.<a href="http://getintheringwithme.blogspot.com/p/about-me.html" target="_blank">Click here</a> to find out more about THE.TriBe and the blog is or perhaps browse the <a href="http://getintheringwithme.blogspot.com/p/all-posts-get-in-ring.html" target="_blank">all posts list</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?

12 Things to Get your S*** Together

Simple Country Living In this post we going to consider what if the world worked differently from a personal idealistic standpoint (...

Madness of Housing

Contender 1 Budget, Compound Interest, Dividends, downshifting, Gold, Investing, Mortgage 21:41

<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5zaf6Yvd60334ooDpU0DMdh_R6NUP35DNZV-wRpcmnv0YsmwQh4-I_izC2UwLYN3-YuebvlmVJCvgAjd8mrH1gukqPLBKeNsuk4wAT9p7tNs08TYvHPDgAWbeJ63uPHIAX8lAC_lNjmQP/s1600/Allocation.PNG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="Plan your finances over a lifetime" border="0" height="195" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5zaf6Yvd60334ooDpU0DMdh_R6NUP35DNZV-wRpcmnv0YsmwQh4-I_izC2UwLYN3-YuebvlmVJCvgAjd8mrH1gukqPLBKeNsuk4wAT9p7tNs08TYvHPDgAWbeJ63uPHIAX8lAC_lNjmQP/s1600/Allocation.PNG" title="Financial Independence Timeline Planner" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">How much should we allocate to housing? - Evaluation with the Financial Independence Timeline Planner</td></tr>
</tbody></table>
<ul>
</ul>
 
 
 
 
 
 
 
 
 
 
 
<ul>
<li>Buy or rent your way to financial independence - a tricky choice</li>
<li>Why we rented for so long and why we are now settling down</li>
<li>Creating an asset allocation plan</li>
<li>What does this mean to our asset allocation </li>
<li> What would we ultimately like our asset allocation to look like</li>
<li>What about your dream - have a play with the updated Financial Timeline Planner</li>
</ul>
<h2>
Why is housing so expensive?</h2>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjh-Pvb4wgal0sAjvjyP6SMDySd4wmQRHjVXgrzu5sG1gUGYDgs52SwVco0n6wo8VscKc5uMyhgpFJgpfKxyhzrdsukbB9iHEZb7CWK11qwb6cJssuHOb8l9521TcOQzw48F1wNYpQso0m/s1600/P1030980.JPG" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="Will it cost the earth" border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjh-Pvb4wgal0sAjvjyP6SMDySd4wmQRHjVXgrzu5sG1gUGYDgs52SwVco0n6wo8VscKc5uMyhgpFJgpfKxyhzrdsukbB9iHEZb7CWK11qwb6cJssuHOb8l9521TcOQzw48F1wNYpQso0m/s1600/P1030980.JPG" title="A Dream Home?" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Your Dream Home? - Maison de Graves, Podensac France</td></tr>
</tbody></table>
Housing has been touched upon several times on this blog as it is a very emotive subject. Most likely it will be the biggest purchase and decision you will ever have. Just to make it difficult there is almost infinite choice combined with personal circumstances, desires and needs. 
 
<a class="titlex" href="http://getintheringwithme.blogspot.fr/2013/10/french-living-quelle-difference.html">French Living – Quelle Difference?</a> 
<a class="titlex" href="http://getintheringwithme.blogspot.fr/2012/08/round-5-157s-mortgage-or-rent-and-save.html">Early Retirement with a Mortgage?</a> 
<a class="titlex" href="http://getintheringwithme.blogspot.fr/2013/06/you-cant-take-it-with-you.html">You Can't Take It With You</a> 
<a class="titlex" href="http://getintheringwithme.blogspot.fr/2013/12/maintaining-wealth-ii-we-are-all.html">Maintaining Wealth II - We are all Investors Now</a>   
 
As for the Tribe our choice has been sitting on the fence saving all these years. Or last rental property 
was a three bed terraced house in London paying £1,400 per month for the privilege. 
taking the 25 times rule for the value of the property we come to a value of £420,000 ($700,0000) 
 
This house is now selling for £650,000 a 50% premium to the rental income - go figure. 
 
Now a a normal mortgage of 3.5X combined salary £650,000/3.5 = £185,000 annual household income. You need to be in (at least) the top ten percent of earners to afford this in the UK: 
<div class="separator" style="clear: both; text-align: center;">
<a href="http://static.guim.co.uk/sys-images/Money/Pix/gallery/2014/3/25/1395752138824/income-figures-treasury-009.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="" border="0" height="240" src="http://static.guim.co.uk/sys-images/Money/Pix/gallery/2014/3/25/1395752138824/income-figures-treasury-009.jpg" title="UK Income Deciles from HMRC" width="400" /></a></div>
Clearly a comfortable Financial Independence in a large city is a costly affair nowadays. 
<blockquote class="tr_bq">
The rule, “thou shalt not spend more than 30% of thy after tax income on
 housing,” has become impossible for the average person. I think we are 
becoming a “mac n cheese” nation. If the squeeze continues on the middle
 and lower classes, I'm afraid we are going to see a revolt of the 
masses. I'm also afraid that we will see blood in the streets. As a 
result the safest place to be will be on a small farm away from large 
populations. - Richard Russel </blockquote>
Should we have spent more than 30% of our net worth on what we considered expensive property - NO 
<h2>
What are we doing?</h2>
Our TRiBe decided we needed to live somewhere cheaper (south of France) where we have been renting for the past year whilst we have looked to finally buy. After a lot of searching around we have purchased a renovation project. Here is why: 
<ol>
<li>In our early years we moved around with work so buying a home at that time was not appropriate. Stamp duty adds up with multiple purchases. The paying off of university and car debt whilst building of savings (for some reason that felt right at the time) were prioritised.  </li>
<li>Renting allowed us to super charge our savings rate due to the following</li>
<ol>
<li>No renovation costs</li>
<li>Rent was lower than the interest ONLY payments on a similar mortgage </li>
<li>No buildings insurance</li>
<li>"Deposit" and "Stamp Duty" invested instead of "Spent"</li>
<li>Freedom to rightsize and right locate the property as our family grew in size and jobs changed <div style="text-align: center;">
 High property prices in the city meant than an interest only mortgage on a property was more expensive than renting  </div>
</li>
</ol>
<li>Our goal has been to gain financial independence through living frugally. We now live in an area where it makes sense to buy because of the following: </li>
<ol>
<li>Rents are higher than a mortgage</li>
<li>Owning the property outright eliminates interest rate issues and rental price increases</li>
<li>We do not need or want to be mobile - we are happy where we live and have a very good school for our children</li>
<li>We are able to buy some land (and water rights) with the property to grow some of our own food. We have the possibility to raise a small cash crop.</li>
<li>It is in a warm climate so heating costs can be brought down through solar installations and good insulation. </li>
<li>We are "giving up / diversifying assets" some income generating assets for a "family home" and "overall lower living costs". We believe this makes us more Anti-fragile (See book by Nicolas Taleb) <div style="text-align: center;">
We can currently reduce our current living costs through owing our property (at the expense of investment income). We are settling for less income but a more varied asset allocation.</div>
</li>
</ol>
</ol>
<h2>
How much should you allocate to housing or just rent?</h2>
My takeaway from 37 years without owning a property (admittedly some of those were in diapers) is that you need to really understand what will suit you and your family at that point in TIME. Just search for asset allocation on the web and you will be told this way or that way is best such as: 
<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.imoney.ph/articles/assets/s.png" style="margin-left: auto; margin-right: auto;"><img border="0" height="176" src="http://www.imoney.ph/articles/assets/s.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Example from <a href="http://www.marketwatch.com/story/a-portfolio-for-all-seasons-2013-07-19" target="_blank">MarketWatch</a></td><td class="tr-caption" style="text-align: center;"> </td><td class="tr-caption" style="text-align: center;"> </td></tr>
</tbody></table>
What is REALLY best is being in the right asset at the right time whilst hedging risk. 
 
DIVERSIFY and PRIORITISE/GAMBLE. If only it was that easy and we knew what The.FuTuRe was up to! Unfortunately we cannot all be a Warren Buffet or a Geroge Soros but what we can do is make sure we are knowledgeable, why we are accumulating it and the associated risks. 
 
A well researched strategy, a good set of rules that you adhere to (such as stop losses and booking gains) and try at all times not to become attached or emotional about investment will go some way to being successful.  
<h2>
Our asset allocation</h2>
<h3 style="text-align: center;">
Before the purchase of the property</h3>
Income Portfolio (29%)   -  Dividend Value Growth Stocks to pay for living costs 
Growth Portfolio (9%)     -  High growth hence risky investments 
Protect Portfolio (26%)    -  Cash and Commodities 
Pensions - Final salary (36%) - Cannot touch until 55 years old (allocation too high)!!! 
<div style="text-align: left;">
 </div>
<div style="text-align: left;">
To put some perspective on this we are living frugally (with 2 kids!) Our current living costs are £1,500 per month (£540 of which is rent). Our estimated living costs after property purchase £1,050 per month (higher costs for insurance of the property and taxes etc.) and we want to reduce this further. 
 
On the flip side we would be better off income wise but worse off diversified by carrying on renting</div>
<h3 style="text-align: center;">
 
After Home Sweet Home purchase</h3>
Income Portfolio (24%)   -  Dividend Value Growth Stocks to pay for living costs 
Growth Portfolio (2%)     -  High growth hence risky investments 
Protect Portfolio (6%)    -  Cash and Commodities 
Pensions - Final salary (36%) - Too high and cannot touch! 
Property / Miscellaneous stuff (32%) - All cost but significant possibility of capital appreciation 
 
...... The pensions are in the stock market and could be considered part growth and income with some fixed income bonds. Ultimately we are aiming for our investment portfolio to mimic the Permanent Portfolio outlined by Harry Browne - 25% Cash, 25% Bonds, 25% Stocks and 25% Commodities so will be focusing on re-building our cash position after the house is done. 
<h2>
Dream </h2>
What would you like to own and when, how do you see The.FuTuRe settled in one place or moving about. Do you want to own a house or your own business..... Will this give you a framework for a goal / challenge and perhaps a straw man plan. These dreams are your long term goal. The are the basis for your final and current personal asset allocation. Work backwards from your goal to work out how to get there. 
<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://sites.google.com/site/lifeplanltd/home/TimeLine_Financial_Permanent.xls?attredirects=0&d=1" style="margin-left: auto; margin-right: auto;" target="_blank"><img alt="Click Here To Download" border="0" height="122" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5zaf6Yvd60334ooDpU0DMdh_R6NUP35DNZV-wRpcmnv0YsmwQh4-I_izC2UwLYN3-YuebvlmVJCvgAjd8mrH1gukqPLBKeNsuk4wAT9p7tNs08TYvHPDgAWbeJ63uPHIAX8lAC_lNjmQP/s1600/Allocation.PNG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://sites.google.com/site/lifeplanltd/home/TimeLine_Financial_Permanent.xls?attredirects=0&d=1" target="_blank">Click Here to Download the Financial Independence Timeline Planner</a></td></tr>
</tbody></table>
 
Peace, prosperity and happiness 
 
CoNTeNDeR 
 
Welcome New Readers! Please take a look around.<a href="http://getintheringwithme.blogspot.com/p/about-me.html" target="_blank">Click here</a> to find out more about THE.TriBe and the blog is or perhaps browse the <a href="http://getintheringwithme.blogspot.com/p/all-posts-get-in-ring.html" target="_blank">all posts list</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?

Madness of Housing

How much should we allocate to housing? - Evaluation with the Financial Independence Timeline Planner Buy or rent your way...

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>THE.FuTuRe: "You are getting old Contender, you need someone to look after you like the government......." 
 
CoNTeNDeR: "Promises, promises, promises - all great on paper but they need to be backed up with real deeds and wealth" 
 
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. 
 
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... 
<ul>
</ul>
<ul>

<li>Does the natural generational cycle (ageing to renewal) pose problems to future investments </li>
</ul>
<ul>
<li>Where is capital currently being misallocated </li>
</ul>
<ul>

<li>What are the likely investment pitfalls in the years ahead </li>
</ul>
<ul>

<li>Do we need to change the way we allocate capital </li>
</ul>
<ul>

<li>What financial independence opportunities can arise from the boomer retirement and the natural redistribution of wealth to Generation X and Y and Millenials?  </li>
<ul>
<li>Latest Cyclically and Inflation Adjusted Market Analysis Graphs</li>
<li>Latest Dividend Value and Growth Dividend Stock Screen Results </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. 
 
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. 
  
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. 
 
<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. 
 
<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. 
 
"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)! 
 
Vast wealth and benefits have skewered in their favour from high property prices, ownership of shares / businesses, and cheap access to health care. 
 
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. 
 
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). 
 
Fortunately there is light at the end of the tunnel with the changing of the guard. 
 
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. 
<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. 
<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.... 
<ol>
<li>Too big houses - 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;">We used to live in much smaller houses in the US <a href="http://activerain.trulia.com/blogsview/1674255/top-5-new-home-trends" target="_blank">Source Activerain</a></td></tr>
</tbody></table>
</li>
<li>Too big heavy, inefficient cars to get to the too big house too far away from work. Literally burning capital (fuel) - what a waste? <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>
</td></tr>
<tr><td class="tr-caption" style="text-align: center;">Peak Oil Production? Something wrong with this picture? <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;">Gas Production is increasing - Time to Switch to a Natural Gas Car?</td></tr>
</tbody></table>
</li>
<li>Introduction of the consumer model - 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;">Plastic Fantastic until it breaks, degrades or is obsolete</td></tr>
</tbody></table>
</li>
<li>Creation of powerful self interest groups 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 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;">Rising faster than GDP - <a href="http://www.ericgarland.co/2012/01/16/a-quick-observation-on-total-global-debt/" target="_blank">Source Eric Garland</a> </td></tr>
</tbody></table>
</li>
<li>Health / sick care 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;">Health Care or Sick Care? <a href="http://healthreformtrends.com/2009/08/22/comparison-of-healthcare-spend-us-vs-world/" target="_blank">Source healthreformtrends</a> </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. 
 
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? 
<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. 
 
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. 
 
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? 
<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 less not a good equation in anyone's book? 
 
Entertainment - less eating out / cinema 
Clothing - wearing out clothes before buying new / less designer brands 
Smaller, more fuel efficient cars 
Holidays closer to home 
Less investments / money to save in stocks / bonds etc. 
 
Does this cause a feedback loop into the ultimate middle class source of wealth - housing: 
<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>

</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. 
<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. 
 
By this I mean the price of everyday needs (food, shelter and energy) over wants and desires (designer goods, gizmo's, luxury holidays). 
 
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. 
<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;">Maslows Pyramid of Needs</td></tr>
</tbody></table>
<ol>
<li>Energy efficiency -  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 new planning guidelines based on a community self sustaining design</li>
<li>All products should be built to last - laws can drive this change.</li>
<li>Working from home should be actively encouraged and rewarded</li>
<li>Consumption must be reduced - anything that could go digital should (books, magazines, newspapers, bills, certificates and the like.) </li>
<li>More food needs to be grown locally and exotic food should be taxed very highly to reflect the energy it consumes in transport.</li>
<li>Education needs to change focus 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 
<ol>
<li>Healthy living- reducing our need for health care</li>
<li>Cheap energy security - compressed air / electric cars run of solar arrays</li>
<li>Reduction in pollution - less packaging = less plastics =
 less toxins = less persistent waste that takes years to degrade = less 
landfill waste.</li>
<li>More biodiversity - 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. 
 
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. 
 
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. 
 
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> 
<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.   
 
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>*: 
 
<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>

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. 
 
Cash equivalents can be kept on hand to wait for the inevitable stock pullback / crash to take advantage of opportunities. 
 
Trailing sell stops can be applied to your current portfolio (on non core holdings) to help preserve capital in the case of a crash. 
 
Peace, prosperity and happiness 
 
CoNTeNDeR 
 
* 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. 
 
Welcome New Readers! Please take a look around.<a href="http://getintheringwithme.blogspot.com/p/about-me.html" target="_blank">Click here</a> to find out more about THE.TriBe and the blog is or perhaps browse the <a href="http://getintheringwithme.blogspot.com/p/all-posts-get-in-ring.html" target="_blank">all posts list</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

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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. 
 
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.  
 
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. 
<h2>
Confidence (A.K.A THE.PaST)</h2>
<blockquote class="tr_bq">
Confidence 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.???</blockquote>
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. 
<h2>

Past Precedents</h2>
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. 
 
Companies have thrived, profits have flowed. Based on our past it is fair to believe that things will continue as they always have  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. 
 
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 as a way to build wisdom, take responsibility for ones decisions, think outside the box and get rich instead of market average?   
<h2>
Arrogance (A.K.A THE.PReSeNT)</h2>
<blockquote class="tr_bq">
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.</blockquote>
<h2>
Seeking Wisdom from the Past </h2>
Wisdom takes time. 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 me but how would you know when you have wisdom or enlightenment? 
 
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. 
<blockquote class="tr_bq">
"Bloggers write s**** with exclamation marks and bad punctuation with no concrete evidence" - quoted in the film Contagion</blockquote>
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? 
 
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. At the end of the day you are the person ultimately taking the action of your own free will. 
 
Listen, think, ignore and do what is right for you. 
<h2>
</h2>
<h2>
Delusion (A.K.A THE.FuTuRe)</h2>
<blockquote class="tr_bq">
A delusion 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>. </blockquote>
<h2>
Present & Future Opportunities?</h2>
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. 
<ol>
<li>Cyprus Precedent - 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?</li>
<li>Negative interest rates! 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?</li>
<li>Money flows into stocks and especially dividend stocks. These "investment" actually become risky in a high inflation environment under performing in real terms as margins are eroded.</li>
<li>Real estate prices rise as money finds a home - 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.</li>
<li>Increase in the money supply / inflation increases living costs. Just divide 72 by the inflation rate to get the time for prices to double. e.g. a 4% rate 72/4 = 18 years!</li>
<li>Resource depletion - 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</li>
<li>Central bank / government intervention and herd mentality - 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.</li>
<li>Black swan events - what about the nuclear fusion problem being solved in the next 5 years and "free" energy being available for everyone? </li>
</ol>
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?) 
 
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. 
 
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? 
<h2>

Opportunistic Investments?</h2>
<ul>
<li>Oil is depleting - invest in oil companies with long life reserves and buy a small car?</li>
<li>Food costs more - grow your own?</li>
<li>Electricity is going up - get some solar panels, wind turbine our water wheel?</li>
<li>Cash savings are loosing their value. Learn about fiat money and why we are told inflation is good and deflation is bad (to whom?) - invest your spare cash (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?</li>
<li>Have your own business so you can set the right prices for your needs. </li>
<li>Have a strategy, a backup strategy and and backup backup strategy. 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?</li>
<li>What are the growing businesses of the world? What are the trends where are the opportunities? Perhaps take time twice a year to read up on the future. 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.)</li>
<li>You are getting older - look after yourself 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.  </li>
</ul>
<h2>
Wisdom (A.K.A .....Dalai Lama, Thomas Jefferson, Socrates.....)</h2>
<blockquote class="tr_bq">
Wisdom 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>.</blockquote>
<h2>
Muses on attaining wisdom</h2>
<ul>
<li>Listen more than talking</li>
<li>Read, observe, analyse, criticise, and form your own opinions </li>
<li>Be idle and have idle thoughts</li>
<li>Ask questions with no right or wrong answers - What is the meaning of life?</li>
<li>Have friends that like a good debate</li>
<li>Don't jump to conclusions, listen, ask and understand the other persons point of view</li>
<li>Wait - there is no real rush - take your time when making decisions and weigh up all options </li>
<li>Open your mind - everything is interesting, there is no right or wrong just choices with different outcomes. What are the outcomes you want?</li>
<li>Have a go at anything and everything </li>
</ul>
Why do we want to be at peace, prosperous and happy? ... 
 
CoNTeNDeR

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 ...

8 Downshifting Learning's

Contender 0 downshifting, financial independence, health, stress, Work 08:43

<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgC4o-XIEq2mUcen4QQNrYIALjp9GUKXB7jff0bBIqjKjGTAc4RCiBiTPS7TDJyIpJD8e6l5kceYw5J9E-Y5WC0t56jbGIVS3mUuxsJOUJs1w_B85fnpDiJ2IM34iap_cLGcbgje0W1fufO/s1600/DSC_0066.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgC4o-XIEq2mUcen4QQNrYIALjp9GUKXB7jff0bBIqjKjGTAc4RCiBiTPS7TDJyIpJD8e6l5kceYw5J9E-Y5WC0t56jbGIVS3mUuxsJOUJs1w_B85fnpDiJ2IM34iap_cLGcbgje0W1fufO/s1600/DSC_0066.JPG" width="320"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Getting closer to nature in the garden</td></tr>
</tbody></table>
THE.PReSeNT: "Hey Contender you have been out of the ring a while, you must be rusty. Time to ship your a*** off to the scrapheap." 
 
THE.FuTuRe: "Look at you rotting away, doing nothing, easy life, lazy life, go back to your hidie hole, looser"   
 
So we have downshifted and stopped working so what have we learnt about the change in lifestyle so far? Below are 8 major changes and considerations due to the change from 
Town to Country, Jobs to Idleness. Following this are 15 points / questions one can ask before taking the downshifting plunge. 
 
 
Ah life! Bright lights, sensuous smells, searing pains, sadness, elation. 
 
Here the TRiBe is in South of France and we have been through most of these emotions already. These emotions have been amplified with the big change in lifestyle we have just made. 
 
Perhaps we should have just gone with the flow, kept the stimulation of the city and work? - Not on your nelly, our new life suits us so far! 
 
After massive changes to lifestyle in such a short period of time, doubts inevitably enter your mind. 
 
Have we done the right thing? Have we affected our children, friends and family too much? What is our meaning in life? 
 
Unfortunately these negative thoughts arise, driven by past habits. Speed, productivity, getting things done, appointments, meetings, schedules, deadlines, playdates...were the norm. Hectic and exhausting. These hangovers from our past life still linger and nag in our subconscious. 
 
So how mentally and socially do we need to adapt and change to downshift? 
 
1. On living together FULL TIME 
 
Key Learning: Go solo, do things in smaller groups within family and keep some personal space 
 
Being on top of each other full time is a new challenge. Thankfully we have a big garden, a spare room / study, and a walking path by the house. All places where we can take time out on our own. 
 
Winter is more difficult. The countryside does not have all the indoor distractions available on your doorstep like a city. 
 
We still have a cinema but no entertainment centres full of laser quest, ten pin bowling, toddlers soft play areas etc. The outdoor swimming pools are closed and the carting tracks hibernate. Town centre shops take a several <strike>months</strike> weeks off. 
 
So being at home with two young kids in the dark, wet and cold poses its own challenges. We have to find simple ways to entertain ourselves and friends. Isn't that what real living is about? 
 
Distracting the kids can be too easy in the modern world - <strike>idiot box</strike> TV and <strike>kill machines</strike> Video games do them no good. Thankfully we do not have a TV set or a tablet computer avoiding the easy access the kids desire. Setting up and cleaning up a messy play session, such as painting and cooking is worth the effort as the little ones are so excited and proud with their doodles, flour cakes and paint prints. 
 
We have bought desks for their rooms. They are covered in pens, paper, glue, glitter, stickers which keep them amused for hours. They can then build something in Lego or with the wooden Kapla blocks. 
 
Time Out is needed for us Adults as well. Mr C spends time chopping wood, gardening, reading, a bit of blogging and investing. while Mrs.C has taken up knitting (can you believe it), gardening, swimming for miles and putting her linguistic and law skills to good use. 
 
Together we cook, garden, walk and talk (we still do!). We watch the occasional film, discuss books and politics and like to entertain our new friends. 
 
Time will tell if we strike the right balance between personal needs, those of husband and wife, father and mother, friend and relation. 
 
2. On Health 
 
Key Learning: Review your health and your diet, do you need fewer stimulants and calories, do you need to exercise more and dedicate a specific time to exercise? 
 
Idling and re-charging our batteries have become very important for us. It has taken us aback how much the hectic life of London and corporate work took its toll on our health. Stress and pollution needs to be purged from our systems, the go-and-do- quick habit needs to be vanquished. This will all take time to remedy. 
 
Admittedly we have always been a bit health conscious, from using colloidal silver, oxygen treatment, relaxation techniques and some good meals. Unfortunately we never tackled the real big health issue of overwork which drove bad habits resulting in stress, exhaustion, lack of exercise and supplemental snacking. 
 
We were stressed out, caffeined out nutters - jumping from one activity to another seeing how productive we could be. I hope we did not come across that way! No wonder a two week vacation never really 'fixed us', leaving us relaxed and genial. 
 
Now we are focusing on slow un-processed food. Less meat and lots of fresh vegetables, salads. Less alcohol...and more gardening, walking and swimming. 
 
3. On Finding a Home 
 
Key Learning: Renting is a good approach in a completely new place. It gives you time to find the right place and not make a snap decision which could be the wrong choice financially or for example too isolated / far from amenities than you were used to having. 
 
Bugger, this finding the "perfect" home is a bit of a pain. We really should consider the 80:20 rule if 80% of our needs are catered for, the other 20% is not worth the hassle. This is damn difficult when you have a picture in you mind. 
<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/AVvXsEg2AbUZsiaK0m58lQElK4m89uN2acFRQ43P4Cav6PjIo5KRM16HD1wkCa1ydE87rfDHTRvY0ebu9rR2-stKRIEzrayuKoxUAr2it11h_wKIKCr3oVEYduEpTAvELTIUBqnHgdGjJDCJeMyI/s1600/DSC_0141.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2AbUZsiaK0m58lQElK4m89uN2acFRQ43P4Cav6PjIo5KRM16HD1wkCa1ydE87rfDHTRvY0ebu9rR2-stKRIEzrayuKoxUAr2it11h_wKIKCr3oVEYduEpTAvELTIUBqnHgdGjJDCJeMyI/s1600/DSC_0141.JPG" width="320"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Gascony countryside by our house</td></tr>
</tbody></table>
 
All we want is blue skies as far as the eye can see over green fields, snow capped mountains and......  a little plot of land with a modest building. It would be nice if it looked like a Constable painting. 
 
REALITY CHECK time - TOO much house in the wrong location / costing too much / too far from civilisation and friends = unhappiness to THE.TRIBE. 
 
A house is a consumer good which many people treat it as a status symbol. At the same time is it somewhere where you will spend a considerable amount of time. It needs to be a good size, comfortable and easy on the eye. A cosy home. 
 
At the same time we will not settle for a messy ugly place surrounded by sculptured concrete as is not conducive to a positive mental state. We are animals at heart and our hearts lighten up when we are surrounded by the chaos of  nature.

8 Downshifting Learning's

Getting closer to nature in the garden THE.PReSeNT: "Hey Contender you have been out of the ring a while, you must be rusty. Time ...

Defensive Investing

Contender 0 Critical Thinking, Dividends, downshifting, financial independence, frugality, Planning, Saving 17:41

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</div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhd6l9SplfyyjtKqRtXxwTuVxJ6dmEdF6e5IcUCRtZW-a5JtdVRCca_-SZXXJcBMdA4Xg55YAhHwVWKwr2Vs6WE5AzLWn40s-T00BukpfVSRCJs4kKUIoBgLn1KSJK3H3QF6GFT-dkGES9Z/s1600/DVGI.PNG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="181" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhd6l9SplfyyjtKqRtXxwTuVxJ6dmEdF6e5IcUCRtZW-a5JtdVRCca_-SZXXJcBMdA4Xg55YAhHwVWKwr2Vs6WE5AzLWn40s-T00BukpfVSRCJs4kKUIoBgLn1KSJK3H3QF6GFT-dkGES9Z/s1600/DVGI.PNG" width="320"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Everyone needs a system to select shares</td></tr>
</tbody></table>
In this post I am going to talk about  investment timing decisions in particular: 
 
1. A new financial independence striver   
2. Someone who has already amassed significant investments   
3. Changes to the TRiBeS investment approach   
4. The latest DVGI (Dividend Value Growth Investments) screener results for the UK and US (at the end of the post) 
  
<ul>
<li>No one can accurately predict THE.FuTuRe</li>
<li>Human beings are emotional and sometimes delusional</li>
<li>Timing is important </li>
</ul>
So what is the link between these statements and financial independence planning? Well over the past five years the stock market has done very well. At the same time THE.PaST tells us it corrects around every 5 - 8 years. Does it continue to rise over the next few years or do we get a correction. There are numerous opinions out there on the web. 
 
<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://dshort.com/inflation/inflation-recessions-sp500.gif" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="290" src="http://dshort.com/inflation/inflation-recessions-sp500.gif" width="400"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">source: dshort.com</td></tr>
</tbody></table>
But this time is different right? There is no need to be cautios as the Fed has our backs covered. So go ahead and go all in now. 
 
Hold on a second....If you are starting to invest in the stock market at this juncture is this wise? 
 
If you are fully invested and enjoyed the good run should you be cautious and check out some of your chips? 
 
Or are you confident of further gains and are adding to your positions? 
 
Here is a quote from a seasoned trader Dan Norcini on holding onto a loosing position which I think is pertinent if you flip it on its head and consider it from a winning position as well: 
<blockquote class="tr_bq">
"They may pride themselves and 
encourage their followers to, "Stay the course". That is great if you 
are a sailor on the ocean and are being buffeted by some high waves and 
gusty winds but at some point the winds and the waves will force even 
the most stalwart of mariners to take a detour out of their way if they 
wish to avoid getting slammed into the rocks or going down. It is called
 "prudence". 
    
 Those who "stay the course" and keep
 pushing ahead out of sheer stubbornness often pay the price with their 
lives. Same goes for trading or investing - at some point one has to 
"take a detour" to skirt the danger so as to arrive safely at the final 
destination. 
    
 Spitting into the eye of a hurricane
 just gets your face wet and does nothing to force the hurricane to 
change directions. It is going to go wherever the hell it wants to go 
and it could care less what you want. This is how markets are - they go 
where they want, when they want. If you are smart, you learn to either 
go with them or get out of the way" 
 
<a href="http://traderdannorcini.blogspot.fr/2014/05/euro-weakness-remains.html" target="_blank">Trader Dan Norcini</a></blockquote>
 
Time to sell growth and cyclical stocks? 
 
Are we now in a position with the markets we we could be lured into the trap outlined by Dan above. Could the market change direction and we hold on for dear life waiting for the tide to change. 
 
I have first hand experience of working on a cyclical business - semi conductors. A new super chip would be designed the factories built then the chip sold for the next few years until the next super chip is designed and the whole cycle starts again. The business knew this happened therefore it set itself up for, and planned ahead, for these cycles. It did this through sub contracting, temporary contracts and stock management. 
 
Coming back to point can we manage our investments in this manner or are we doomed to failure? Are we doomed to re-produce past mistakes such as the Tech Bubble. 
 
Growth stocks have been back in vogue and are trading at very high price to earnings ratios. Well known names such as Facebook, Amazon, Twitter have soared based on future growth and revenue expectations / forecast. Are they really going to deliver unlike the companies in the last Tech bubble? Should we downsize our investments now? 
 
Lets consider some different circumstances:

Defensive Investing

Everyone needs a system to select shares In this post I am going to talk about investment timing decisions in particular: 1. A new...

The Joy of Gardening

Contender 0 downshifting, Early Retirement, financial freedom, financial independence, Happiness, health 19:07

The Joy of Gardening

A garden with a view One key aspect of our downshifting plan has always been to have a nice garden. A garden is hard work, right? It is ...

Financial Independence through Dividend Value Stock Investing

Contender 4 #financialindependence, Compound Interest, Dividends, downshifting, DRIP, Finance, financial independence, Inflation, Investing, Schiller PE10, stock screen 07:35

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#FinancialIndependence requires setting up multiple income streams to replace your income from your labour. 
 
#Downshifting may mean that you still work but rely on a smaller income from some work and possibly some investments. 
 
Today the focus is on dividend value stock investing to provide a passive income. 
 
Buying shares in a company has several advantages 
 
1. You have access to many companies in many different businesses 
2. Companies can grow their earnings and dividends rapidly 
3. Companies can be out of favour and cheap to buy 
4. Companies are strictly regulated and lots of information is available about them 
5. Companies can have a competitive advantage \ high barriers to entry 
<div style="text-align: center;">
<blockquote class="tr_bq">
"One of the biggest mistakes investors make 
is to focus on stock picking for 
capital gains. 
 
The reality is that if you're not looking at 
 
dividends when you buy a company... you're 
likely not going to make much 
AT ALL. 
 
Did you know that without dividends, stocks 
have actually 
UNDERPERFORMED bonds 
for the last 113 years? 
 
This is not hype, a 
study by the London Business 
School found that without dividends, stocks 
return 
a measly 1.9% per year... LESS than Treasuries!" Gains, Pains and Capital</blockquote>
</div>
To help identify companies that are of interest to invest in  I have been spending some time massively improving the stock screening tool  to find some cheap #dividend stocks out there. Here is a look at the new screen (The UK all share list as of the 6th April is available towards the end of the post): 
 
<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/AVvXsEjdKG1J-p6L6SRJAhMxH3yBS6dQ3HQd0HFDsBsbGKKdlG11TbNHV0-NzXhOELzI9oWs4T2CX4jPGva84VYnLW65sjurZHqtF68rg-X5Ig_AUuVFilaJc00iwAerwZV9CrpnUfvC8cLgqnAN/s1600/10YrScreen.JPG" style="margin-left: auto; margin-right: auto;"><img border="0" height="198" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdKG1J-p6L6SRJAhMxH3yBS6dQ3HQd0HFDsBsbGKKdlG11TbNHV0-NzXhOELzI9oWs4T2CX4jPGva84VYnLW65sjurZHqtF68rg-X5Ig_AUuVFilaJc00iwAerwZV9CrpnUfvC8cLgqnAN/s1600/10YrScreen.JPG" width="640"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Sample from a stock screener created with 10 years worth of data</td></tr>
</tbody></table>
It has been made very visual with its colour coded formatting. 10 years worth of financial data is used for graphs and calculations. More of the major indices have been added. It has been made easier to use. Easy to personalise with your own portfolio of stocks. Backed by a large powerful data set and statistical data analysis. 
<ul>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHX_XuYh9NK5qtOnhOJ7BocXylAjDT-zl3CYmSLkMtSSNH35I31GoG26urt84z1VI677QX1YiyWTDYFK3Nd3QAbpPUwSltlg-npDAfSsgLPQA947E04TNMw3vrP4PtneB0NKsQFcbPQrt4/s1600/PG.JPG" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHX_XuYh9NK5qtOnhOJ7BocXylAjDT-zl3CYmSLkMtSSNH35I31GoG26urt84z1VI677QX1YiyWTDYFK3Nd3QAbpPUwSltlg-npDAfSsgLPQA947E04TNMw3vrP4PtneB0NKsQFcbPQrt4/s1600/PG.JPG" width="320"></a>
<li>Contains major market data (US, UK, EU) </li>
<li>Current data can be evaluated on the fly for the Value Screener and Dividend Value Screener by clicking the magic button</li>
<li>Stocks can be interrogated individually with 10 years worth of data in the graphical evaluation tool</li>
<li>10 years of financial performance is used to create the 10yr Value Dividend Screener to check the quality of the stock - has it made a regular growing profit and paid a regular increasing dividend?</li>
<li>"My Portfolio" can be setup to show the screener results for your stocks <table align="center" 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/AVvXsEhYIgQZ-EaJrZ7NJH1g0-aW4PDlIhsaiHrjFdZUnmXgD-CTQV0oWnDAVFvDoMqg7y-xDvuGxFB4GKB7SukMemE26DSlNCq0nYYwP0zvMbHeHO9PZu6FU_-O1vwDtpOX2AtvXQuNcZ4t0z6q/s1600/Portfolio.JPG" style="margin-left: auto; margin-right: auto;"><img border="0" height="116" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYIgQZ-EaJrZ7NJH1g0-aW4PDlIhsaiHrjFdZUnmXgD-CTQV0oWnDAVFvDoMqg7y-xDvuGxFB4GKB7SukMemE26DSlNCq0nYYwP0zvMbHeHO9PZu6FU_-O1vwDtpOX2AtvXQuNcZ4t0z6q/s1600/Portfolio.JPG" width="320"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"> </td></tr>
</tbody></table>
</li>
</ul>
<div style="text-align: center;">
<blockquote class="tr_bq">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_Fe2TuX0Ec6bIb0Eytdx_T-yyKayX4tXgJq9x-XpES2vbkyBSiDs0zJMMrfqicwucnaN-JUD9bIGIkR5EaYaoqqa9j7DXyoEHtTozpMfC3rWVAu_AObPV2n7EN3gkzXl6vz1hUoC2LfIV/s1600/ValueStocks.JPG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a>Markets no longer perform true market functions. In markets today, the dead hands of the academic and the rentier have replaced the invisible hand of the merchant or the entrepreneur. James Rickards  </blockquote>
</div>
Why Look at History 
 
The Value Stock Screener and Dividend Value Stock Screener allow the user to click a magic button to download the latest data from the web. The tool then allows individual stock evaluation. The screen looks for undervalued stocks based on the methodology of "The Little Book That Beats the Market". 
 
1. Stocks with a very high Return on Capital - are they a well run business? 
2. Stocks with  high earnings yield (i.e low PE) are they currently cheap 
 
Why a spreadsheet - there are loads of options on the web? So why use this tool instead of one of the numerous screeners out there? Well in my opinion spreadsheets are more personal with the data, you can add your own comments and keep them for reference. Websites have flexibility in the type of graphs and how the data is shown on the screen.  
 
This is great at looking at THE.PReSeNT but this is not the full picture. The stock may be cheap for a very good reason and can get cheaper. 
 
In order to avoid this trap further research is required. 
 
One part of the research is looking at THE.PaST and secondly can we be confident about THE.FuTuRe performance? How good is the stock really? Is the company solid, has solid earnings growth and good dividend cover? This needed to be added. 
 
Introducing 10 Year Dividend Value Screening 
 
Dividend champion investing is not new and numerous lists of stocks that have consistent dividend growth can be found across the web. What is more difficult to attain is weather you are paying too much for a champion share? 
 
<div style="text-align: center;">
We need to gain in capital and dividends overtime. That way buying lowly valued stocks that become expensive can be sold and re-invested to gain MORE income. </div>
 
 
The new screener has the ability to analyse 10 years worth of financial data for selected Markets (NASDAQ, NYSE, DJIA FTSE 100, FTSE 250, DAX, EURSTOX50). 
 
 Its purpose is to ask the following questions: 
<ol>
<li>Is the current PE ratio expensive for the share in comparison to its historical PE10 (10 year average PE      PE10 = 10 year average share price / 10 years average EPS </li>
<li>Is the company growing its EPS (Earnings per share) consistently?      What is the average EPS growth rate over 10 years?      How many years has the company made a profit?</li>
<li>Is the company growing its dividend?     What is the average dividend growth rate over 10 years?     How many years has a dividend been paid?</li>
<li>How much debt does the company currently have?</li>
<li>What overall score is the company on Quality, Income and Value? </li>
</ol>
All of this information is used to create a score and rank versus other companies. 
<ol></ol>
10yr Data Screen Benefits 
 
The screen can be looked at stand alone via Google spreadsheets however the excel spreadsheet has some distinct advantages 
<ol>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_9YEXBHqCTE9KtBxO-njGNrubmKJMA3F27OeD2ZoCm3jwf1j93FMnKamE5DFmPzs-6bWwEfZ_8m52kBJNY3vJvGfldpheVj39_1a8uwvv52XGuC_UZdcWGiIAl8C-FosQM6ZKHhjt7WzG/s1600/PG.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a>
<li>Enter your portfolio and watch stocks to see what the screen results are. Here is a screen shot with some well known companies:<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/AVvXsEhYIgQZ-EaJrZ7NJH1g0-aW4PDlIhsaiHrjFdZUnmXgD-CTQV0oWnDAVFvDoMqg7y-xDvuGxFB4GKB7SukMemE26DSlNCq0nYYwP0zvMbHeHO9PZu6FU_-O1vwDtpOX2AtvXQuNcZ4t0z6q/s1600/Portfolio.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="235" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYIgQZ-EaJrZ7NJH1g0-aW4PDlIhsaiHrjFdZUnmXgD-CTQV0oWnDAVFvDoMqg7y-xDvuGxFB4GKB7SukMemE26DSlNCq0nYYwP0zvMbHeHO9PZu6FU_-O1vwDtpOX2AtvXQuNcZ4t0z6q/s1600/Portfolio.JPG" width="640"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">A manually entered portfolio showing 10YR data quality results and current value result</td></tr>
</tbody></table>
</li>
<li>Query the data by bringing up a graphical interface. Here is a screenshot of Proctor and Gamble: <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_9YEXBHqCTE9KtBxO-njGNrubmKJMA3F27OeD2ZoCm3jwf1j93FMnKamE5DFmPzs-6bWwEfZ_8m52kBJNY3vJvGfldpheVj39_1a8uwvv52XGuC_UZdcWGiIAl8C-FosQM6ZKHhjt7WzG/s1600/PG.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_9YEXBHqCTE9KtBxO-njGNrubmKJMA3F27OeD2ZoCm3jwf1j93FMnKamE5DFmPzs-6bWwEfZ_8m52kBJNY3vJvGfldpheVj39_1a8uwvv52XGuC_UZdcWGiIAl8C-FosQM6ZKHhjt7WzG/s1600/PG.JPG" width="640"></a></li>
<li>Record reasons for investing in the stock in the spreadsheet for future use <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0Lq_hdZnY86jba5V6cMynqSfgWClSeoxuHyKTYBCy9WsKevQjjIft9HBXp2Dkdd7GwuEvZ-jBFRfpv9iQYJeudR6wFuQWwbkJkWjy7DN5q_GO00zvyM4bdFKi1HgPaJDy9tXvrugXDb_7/s1600/Comment.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="42" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0Lq_hdZnY86jba5V6cMynqSfgWClSeoxuHyKTYBCy9WsKevQjjIft9HBXp2Dkdd7GwuEvZ-jBFRfpv9iQYJeudR6wFuQWwbkJkWjy7DN5q_GO00zvyM4bdFKi1HgPaJDy9tXvrugXDb_7/s1600/Comment.JPG" width="640"></a></div>
</li>
</ol>
<ul>
</ul>
Please read on for the 10 Yr Data Screen for the United Kingdoms FTSE All Share index (Yahoo! ^FTAS):

Financial Independence through Dividend Value Stock Investing

#FinancialIndependence requires setting up multiple income streams to replace your income from your labour. #Downshifting may mean that...

Finally There (Guest post)

Contender 4 financial freedom, guest post, Happiness, stress, Work 15:48

<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/AVvXsEjw1WCkyaKCq3EEOWSB75XeTWgC5EaOABURk0j-Zue04TvSAFsmn6m3pqM58tx-UL8tbyyhfbikXy7UPPnVLOG1E6ohiuAPxyqkGm-A_rd-MR9pGdA3cPm5QLu9gSxG6GKzp5nZwm-9gg2p/s1600/Mountains.PNG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="337" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjw1WCkyaKCq3EEOWSB75XeTWgC5EaOABURk0j-Zue04TvSAFsmn6m3pqM58tx-UL8tbyyhfbikXy7UPPnVLOG1E6ohiuAPxyqkGm-A_rd-MR9pGdA3cPm5QLu9gSxG6GKzp5nZwm-9gg2p/s1600/Mountains.PNG" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">The Pyrénées, "un réservoir de beauté", by <a href="http://www.flickr.com/photos/feyte/11624814914/in/photostream/" target="_blank">Pierre-Paul Feyte</a></td></tr>
</tbody></table>
Mrs C's New Life 
 
This evening whilst I was sawing some wood for our evening fire and at the 
same time looking at the sunset on the French Pyrenees, it suddenly happened. 
This is it, my dream of a Good Life, finally there! 
 
The majestic mountains, all 
pink and blue in the sunset, the cold crisp evening air after a beautiful warm 
spring day. It was not much really, just chopping a big oak branch we cut off a 
tree a few days ago that needed to be cut into smaller chunks to fit in the 
fire place.   
 
But that was it, with hands firmly gripping the oak branch, all 
covered in lichen and a beautiful bottle green and grey colour, I was finally closer to Nature – far closer than I had ever been in the last 20? 25 years? 
 
Tonight, when I was closing the shutters of my kids’ bedrooms and putting them to bed, I saw our French friend Paul-Alexandre, who is a very busy corporate executive, come and pick up his 12-month old child from the child-minder at 7 pm. It made me realise that I could not live that busy corporate life anymore. I am not saying any more ever never never, but right now, this is not for me. 
 
No more power suits from lovely Italian labels that make a lovely thin waist and a terrible dent in the wallet and Harvey Nicks newsletter with more lovely dresses to get. Just a cotton skirt or a pair of dark blue jeans. No more high heels (and the back pain that goes with it) and no more carrying a so-called book bag to hide a pair of sports shoes for when running from meeting to meeting becomes impossible to manage in Louboutins. Just a really comfortable pair of dark green Hunters bought years ago when still dreaming the dream. 
 
No more macho bosses, even the female bosses are macho in the City. Just lovely neighbours who invite us to parties and to watch the 6 nations at home or share home-made cakes and biscuits. No more tossing and turning every night whilst worrying about work where I had to negotiate 300-page long commercial contracts and be an impossibly hard negotiator (the Iron Lady was the lovely nickname clients gave me). 
 
Just getting enough sleep so that we can go for a walk to town (6 km back and return), take the girls swimming and spend 2 hours gardening without feeling tired. 
 
I could go on and on with the list of “no more's” and “just's”. Now I am appreciating those long years of effort, saving every penny and planning every step we made. 
 
Thinking, Planning, Money..... 
 
The effort of our monthly financial reviews and planning have finally paid off....even if at the time I had to be dragged screaming to each financial review for our little tribe. I found that these reviews could sap what was left of my limited post work energy and..... 
 
It is true that I have never enjoyed talking or even thinking about money, other than seeing is as a both a way to control people and a mean to travel to far away places. Two sides of the same coin, if you excuse the pun, which interested me but I never wanted to spend more time arranging my finances than was strictly necessary. 
 
I was a passive saver and stayed away from debt. Also I have always liked to manage my pension funds and investments by choosing funds and monitoring their performance myself. But that’s just because I have always seen myself as a feminist and never wanted to have to rely on a man for financial support. Hence I wanted to do “all” by myself, studies, career, travelling, and investing my savings. It is also down to not wanting any man to control my destiny, whether a boyfriend or a financial advisor. 
 
Changing to an Early Financial Independence Mindset 
 
I was set on the normal path, work util retirement in my 60's. I was happy with the returns on my savings and investments were generating. I could leave them on autopilot until later in life. I was a “don’t touch if not broken” type of woman.But I was seeking a "way-out" out of the rat race, feeling it was not going to make me happy and that the sacrifices required to obtain the top managerial role would not be worth the results. 
 
But change we did as a couple when we started putting our heads together to look at our finances. After all these years of planning for financial independence and creative freedom for our family these efforts are paying off. I did resent the monthly financial reviews a bit Mr C says "a lot") but they were to be done. How could we get to our dream if we sleep-walked all our life and not got our house in order? 
 
And here we are in the south west of France! We work in our vegetable patch together every sunny day (i.e. almost every day). The girls are playing in the field full of daisies (paquerettes) and we all go for cycle rides on paths with views over the Pyrenees mountains. 
 
Mrs C 
 
Welcome New Readers! Please take a look around.<a href="http://getintheringwithme.blogspot.com/p/about-me.html" target="_blank">Click here</a> to find out more about THE.TriBe and the blog is or perhaps browse the <a href="http://getintheringwithme.blogspot.com/p/all-posts-get-in-ring.html" target="_blank">all posts list</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 like this post please spare a few seconds to share it >>

Finally There (Guest post)

The Pyrénées, "un réservoir de beauté", by Pierre-Paul Feyte Mrs C's New Life This evening whilst I was sawing some w...

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10 Reasons Why Financial Independence is Good for Society

A Road to Freedom Our little TRiBe is trying out the financially independent, idle life in France. Here are a couple of background post...

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)