WordPress has been a great help.  Boy do they make it easy to set up a website and go live.  However with ease of entry does come some limitations.  There are areas of control I’d like to have that the free hosting at WordPress.com does not allow.  Because of that it’s time to move to a different hosting arrangement before this blog gets any bigger and more difficult to migrate to an independent host.

For that reason, I’ve chosen now as the time to make the jump.  I hope you’ll come with me.  Minding My Own Business is still in business…so to speak, just with a different address.  Please update your bookmarks and RSS feeds with the new links.  There’s lots of excitement ahead….

http://www.mindingmyownbusiness.net

From the Halls of Montezuma,
To the Shores of Tripoli;
We fight our country’s battles
In the air, on land, and sea;
First to fight for right and freedom
And to keep our honor clean;
We are proud to claim the title
Of UNITED STATES MARINES.

Now that every US Marine presently surfing the internet is standing at attention, I’d like to draw yours to Semper Finance, a blog I recently happened upon that has a lot of great information.

Semper Finance is authored by Ryan Delany who is a former Marine…well, once a Marine always a Marine as my sister service likes to say.  He writes about a wide variety of topics ranging from managing personal finances (Ryan knows how to Mind His Own Business ) to great pieces on the basics of the Stock Market and how it operates.   He’s even put together an interesting read on the history of the Stock Market.

I have a special place in my heart for the Marine Corps.  I spent the better part of five months at Naval Air Station Pensacola, Florida as an Aviation Officer Candidate with my face in the dirt, soaked in sweat while the drill instructor, Staff Sergeant Wilson, United States Marine Corps yelled at me to quit messing up his dirt and get back into the push-up position.  Just like my DI, Ryan knows his stuff!  He’s written several guest posts for a variety of finance blogs and is quickly growing his site as well.

Check it out and let Ryan know what you think.

-Jeff

I’m Minding My Own Business, are you minding yours?

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I’ve also come to the conclusion that the best ways for me to achieve an early retirement is to pursue individual business ownership and start a REI portfolio.  This blog is a small step on the business front (I’ll be making some changes here soon to further that effort) and recently I started to execute my REI plan.

Initially, I had intended to invest in my backyard here Virginia Beach, Virginia.  However, after several months of searching the MLS and foreclosures, I’ve come to the conclusion that Eastern Virginia is too expensive an area for me to start out investing in.  After some brainstorming on how I could become a real estate investor in an affordable market I settled upon the Kansas City area.  There are many reasons why KC has great real estate potential, several are outlined here.  Bottom line, KC is affordable, familiar (I grew up in the suburbs of KC), an easy market to enter, has solid potential, and is a place I might reside someday (post-military, of course).  So for now I’m going to try and hang my real estate investment hat there.

In June my family and I spent two weeks in KC on vacation to spend time with family and friends (my wife grew up in KC too).  Being an opportunist, I spent some time with my Realtor, Chris Lengquist looking at potential investment properties that he felt would meet my stated goals, which have been to maximize monthly cash flow income.  If you want to live an active lifestyle on passive income….you’ll need a decent amount of passive income, so I figured that is what I needed to place my emphasis on.

Let’s just say that I was underwhelmed with the investment properties we looked at.  Yes, underwhelmed.  The properties weren’t in the nicest areas of town and wouldn’t be at the top of my list of things I’d be proud to show my parents that I own.  This wasn’t my Chris’ fault, not in the slightest.  He showed me what the combination of my goals and investment capital enabled.  In past conversations I told him I want to prioritize and maximize positive cash flow with about 15K of investment capital.  The result, we were looking at Section 8 (government subsidized) housing.  Don’t get me wrong, I’m sure Section 8 is lucrative and serves the greater good, but I’m not ready to jump into this niche area of REI as my first endeavor.

I felt bad that I had wasted valuable time (both mine and Chris’).  But the experience was worthwhile.  I learned some more about REI, my goals, my desired property criteria and how much capital investment would be required to pull them all together.

The major lesson I learned is that if I want to maximize cash flow and have a nice property I need to bring a fairly large amount of capital to the table.  The corollary is that with limited capital you can get cash flow if you lower your property criteria.

I prefer to have a nicer property so one of two things needs to happen, either my goals need to be adjusted a bit (less emphasis on maximum cash flow) or I need to save more capital to invest.  Since goals are easier and quicker to adjust, I’ll be modifying those first.  Basically this means trading monthly cash flow for a higher quality property in a better neighborhood with greater long-term appreciation potential.  I don’t normally sacrifice my goals, but I think it’s important to have the highest quality investment properties in my portfolio that I can afford.  I don’t need the cash flow today, so I can practice some delayed gratification on this one.

With a new goal in hand, I continue to stash away cash for a down payment, peruse the MLS for that perfect property and continue to mind my own business.

-Jeff

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Managing your own investments is neither as glamorous nor as difficult as many think, but being your own money manager is certainly doable if you have the drive to accomplish this goal.  I have successfully managed my own investments for almost 16 years now.

While I am an advocate of the DIY approach, I do believe that investment advisers have a place in the business.  They provide valuable services (albeit at a price) for many people that might not invest/save/plan for retirement otherwise.  My father has an adviser that he pays fees to (no it’s not me) and is quite pleased with his results.  While he may be happy, I desire much greater wealth than he has amassed and am doing it on my own without paying exorbitant fees.  I must be honest, however, and admit that I do get a little help here and there from an investment expert but at a significant discount compared to most investment advisers.

My professional help comes in the form of a weekly, nationally syndicated talk radio show on the subject of personal finance and investing called Money Talk by Bob Brinker.  Bob is all about helping those who want to help themselves.  His program mixes politics, finance and education in a manner that lends itself to the layman who desires to take control of his investments.

Managing your own investments, while not difficult, is not for everyone, but I think that if you value your hard earned money and have a dedicated drive for success, you’ll be able to learn what you need to in order take control of your investments and mind your own business.

Good Luck,

-Jeff

I’m Minding My Own Business, are you minding yours?

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It will be an interesting road ahead as this unfolds.  Check it out at 7m7y.com.  Now just because you’re not one of the seven, doesn’t mean you can’t reap the same rewards.  Adrian has promised to post every task and exercise he has planned for his seven grasshoppers on the 7m7y website.  I’ll be following their progress closely and plan to participate in as many activities Adrian suggests as possible.

Who knows, maybe I’ll have seven million in seven years too.  You never know if you don’t try.

-Jeff

I’m Minding My Own Business, are you minding yours?

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Keith was gracious enough to allow me to share his outline with you.  I hope you enjoy these distinctions as much as I did.

10.  Prosperity flows from your heart – Poverty grows in your mind
9.  Prosperity breeds generosity – Poverty breeds selfishness
8.  Prosperity promotes peace – Poverty promotes violence
7.  Prosperity has a wide perspective – Poverty has a narrow mind
6.  Prosperity congratulates others successes – Poverty criticizes others successes
5.  Prosperity is the result of patience and perseverance – Poverty is the result of impatience and giving up
4.  Prosperity seeks and finds opportunities – Poverty seeks and finds problems
3.  Prosperity is being rich in every area of life – Poverty is being out of balance in life
2.  Prosperity is the blessing of knowledge – Poverty is the curse of ignorance
1.  Prosperity comes through faith in life – Poverty comes through fear of death

-Jeff

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Harvey’s article is about how winners use goals.

Harvey asks the question… “What’s really more important, goal-setting or goal-getting?”

My reaction was they’re both equally important.  I blogged a while back about goal-setting and how important it is, but what’s the point of setting a goal if you’re not going to try and get it.  They both must be important.

Harvey continues…  “We all know companies that were household names, the bluest of the blue chips, that are fading memories today. W.T. Grant. Woolworth. Zenith. Studebaker. Montgomery Wards. Every salesperson knows an ace who was on top of the sales charts for years and all of a sudden lost his stroke. He didn’t go from first to second, he went all the way to the bottom.

In each of these cases, the goal was the same, to get on top. But once they got there, they started to lose their way.

They lost the hunger, the ability to innovate, to listen to their customers, to adopt to change, to be humble.

They had achieved their goals. Now was the time to reap the rewards. About 20 years ago, a fellow named Parkinson, wrote a series of books in which he cleverly framed his observations into “Parkinson’s Laws.” Most are just as valid today, because these rules of human nature are timeless. One was, and yes, I’m paraphrasing a bit, “Whenever a company proudly announces the establishment of their beautiful, new, modern, efficient corporate headquarters, you can be sure they’re heading downhill.”

Why? Because instead of focusing on their business, the company’s managers are focusing on themselves.”

The lesson I learn from these examples is that we need to be careful once we reach our goals.  Without a goal in front of us to guide the way and keep our focus on Minding Our Own Business, we’re teetering on the edge.  Will it all come crashing down?  Let’s not find out.  Let’s set another goal.

Harvey advises… “As success piles upon success, the goal changes.

If you ever achieve your goal, be like Curt Carlson, the billionaire founder of the Carlson Companies, the parent of the Radisson Hotels.

It’s not goal-getting that matters. It’s goal setting. You never want to reach your goal.”

As a young soap salesman, Curt used to set yearly sales goals for himself, write them down and stick them in his wallet. About halfway through the year, when he reached his annual target, Curt would tear up the slip of paper, toss it, and set another goal.

Great advice Harvey.  While I agree with most of his last line above, I would change it just a bit.  I’d have it read…

“It’s not goal-getting that matters the most.  It’s goal setting.  Once you REACH a goal, immediately SET new one.”

I think it’s important that we actually achieve the goal’s we set, then set new ones.  Be like the runner who is constantly looking for that next race.  Cross that finish line, then move it back out in front of you.

You can read this column by Harvey Mackay in its entirety here.

- Jeff

I’m Minding My Own Business, are you minding yours?

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Do you think this couldn’t happen to you?  It almost happened to me several years ago.  I had an unexpected brush with death where I came extremely close to cashing it all in, leaving my wife and two kids on their own.  Fortunately for me (and my family) I escaped with nary a scratch.  I was too dense at the time to realize the mess I almost left behind.  So what, you ask, has made me finally realize the ignorance of my early thirties?  In mid-April my father-in-law passed away unexpectedly, leaving his wife a puzzle of finances and life-insurance to sort through.

My father-in-law was a very nice person and very astute entrepreneur and business man, but his personal record-keeping and organization methods took a fair bit of effort to sort through.  I was out of the country at the time, so I was not able to help much.  Rather, my wife and one of my mother-in-law’s friends did most of the work organizing the financial records after his death.  Their time wasn’t spent so much organizing records as much as it was spent searching for records.

By the time I arrived, most of the tedious work was done.  Insurance policies had been found and bank records had been located.  But it took several days of ups and downs before it was all sorted out.  Hopefully they found everything.

I learned several financial success lessons from this experience.  Some my father-in-law did well, like provide enough insurance to allow his wife to live comfortably.  Others, I think he could have done better, like invest in things other than just his business and make it easy on his loved ones to pick up the financial pieces after his death.

After this experience, I made a list of several things I need to improve in my own financial plan that I think are extremely important.  I’ll share them with you in future posts.  My point here today is that I think you need to first focus on organizing all your information so that it can be easily found, accessed and used.

The first thing is to determine what type of information your loved ones might need in your absence.  Think about what things you do almost exclusively for your family.  Are you the Money Earner/Saver like I am?  If so then you likely have the organizational structure of your family’s banking, investments, taxes, insurance and other similar items tucked away in the corners of your brain.  Unfortunately your brain will not be around after your death.  You need to get this info out of your brain and on paper or the computer where those you trust can find it.  Better yet, tell them where it is!  You need to organize your affairs in a manner that is clear, understandable and easily accessed.

For me this means ALL the financial and money related information needs to hit a computer screen.

Personal information is equally important.  While making some phone calls on behalf of my mother-in-law I was asked several times for dates of birth, dates of marriage, social security numbers etc.  Trust me, it’s not fun to have to ask a grieving widow what her husband’s social security number is.  Do you know your spouse’s number off the top of your head?

I’ve begun the process of organizing this type of information.  Here are the pieces I’m bringing together in a “one stop shop” document on the computer:

1. Personal Information – I’m including information on my immediate family (me, my wife and our two kids).  While some pieces might seem trivial, your significant other may not be the one using the information.

• Names
• Dates of birth
• Social Security numbers
• Dates of marriage
• Location of birth and marriage certificates

2. Banking and Investment Information – For each institution where I have a bank account (checking, savings, money market, credit cards, loans, mortgages etc), investment or brokerage accounts, I’m including the following:

• Institution name – including a phone number and web address
• Internet banking log on information – User IDs and passwords
• Account numbers – including a description of its use/purpose and any “automatic transfers”, beneficiaries and ownership information (joint, individual etc.)

3. Insurance Information – For each insurance policy I have (home, auto, life, boat, etc.)

• Institution name – including a phone number and web address
• Internet access log on information – User IDs and passwords
• Account numbers
• Life insurance pay off amounts and beneficiary
• Policy documents location

4. Vehicle Information

• Title and maintenance records location

5. Professional Advisors – Names and phone numbers of:

• Realtor
• Attorney
• Accountant
• Financial Advisor

As you bring all this information together, you’ll need to make sure you safeguard it appropriately.  It’s not something you’ll want to leave lying around the house or on an unsecure home network.  In today’s world of internet access, letting the wrong person have access to it could cost you everything….while you’re still alive.  I’ve password protected and encrypted my records to keep them safe.  I’ll be adding instructions in my Will on where the file is located and how to access it.

It’s no small task and it’s not much fun planning for your exit from this world, but it’s absolutely essential work.  What preparations have you made?  What have I missed in my organization effort?

- Jeff

I’m Minding My Own Business, are you minding yours?

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The Government is obviously looking for us to put the money back into circulation for the economy’s sake, and for theirs as well (almost every transaction will be taxed).  I love it…go out and do your patriotic duty to the United States and spend money.  I guess that explains why so many Americans have so little savings.  Not only has our society become one of instant gratification, but now our Government is encouraging the same thing wrapped in the cloth of Economic Patriotism.  Good or bad, you decide, but my parents didn’t raise me that way.  My money will be spent when the time is right for me.  But it will be carefully planned and on something that will help me create enduring wealth.

I’m sure there will be some folks who will use the check just to make ends meet.  For them, I hope it helps make their life a bit easier.  However, for most of the rest, I have to believe that this payment will merely be money burning a hole in their pocket.  It’ll be used for that flat screen TV they’ve wanted or maybe a down payment on a new car (and 5 years of debt payments).  I’m not criticizing those choices, but this is a blog about Financial Success, and I don’t see them as measured steps toward that goal.

So what would a person seeking financial success do with the money?  Here are the best ideas I can think of:

1. Pay down debt and make the decision to not incur more unless it’s necessary or it’s good debt (a future post I promise)

2. Save it for a rainy day.  An emergency fund of cash is a great cushion to have, especially in volatile economic times such as we appear to be in right now.  Typical recommendations range from three to six months of cash reserves.

3. Invest it.  Put it towards your annual IRA contribution or add it to your taxable investment strategy.

4. Spend it…on something that will yield a return.  That sounds like investing, I know.  But I was thinking more along the lines of an improvement project that could add or restore value to your home.

Those are the best choices I can think of for someone who is interested in Minding Their Own Business.  For me, I’ll be investing it.  I’ve already added it to my real estate down payment savings.  Hopefully I’ll be spending it by the Summer.

- Jeff

I’m Minding My Own Business, are you minding yours?

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I came across an article on Motley Fool that I wanted to share with you.  If you’ve ever read David Bach’s books the concepts will look familiar.  I find it truly amazing how many people fail to save for their future when it takes only a small amount per day.

Fully funding your Roth IRA can be done for $13.70 a day.  In today’s world, it doesn’t take much in the way of cutting expenses to yield that much savings.  Sharing a ride to work or even brown bagging your lunch could easily free up that much cash.  I’m sure you’ve heard it all before, but the earlier you start the more wealth you’ll build.

As a point of reference that I’m practicing what I preach, my family is saving $99 per day.  Yes, each and every day.  Now, not all of that is for retirement, but it covers two 529 plans, two maxed out Roth IRA’s, an emergency fund/real estate investment account and one 401K plan with the government.

How much are you saving each day?

- Jeff

I’m Minding My Own Business, are you minding yours?