Its headline is Can the Family Tax Cut Entice Families to Work Less? Read more
The Single Best Investment: Creating Wealth with Dividend Growth, is the title of a classic investment book first published in 2006 by Lowell Miller, who heads Miller/Howard Investments.
It came to my attention via Wes Moss, who I interviewed for an upcoming MoneySense column, whose book You Can Retire Sooner Than You Think we reviewed here at the Hub. I mentioned the book in passing last week in this MoneySense blog last week. That blog focused on asset allocation but provided a big hint about Miller’s philosophy: there’s no place for bonds in Lowell’s investment worldview.
The book’s first chapter sets the tone in its title: Say goodbye to bonds and hello to bouncing principal. Like many stock believers and bond haters, Miller takes it as a given that the investing environment generally includes inflation. Since “safe” investments like t-bills, bonds, money market mutual funds and CDs (Certificates of Deposits in his native USA; known as GICs in Canada) are all “poor investments because what they give is less than inflation takes away.” Read more
Here’s my latest MoneySense blog, which they’ve titled Working to Live Better, Longer. Since it’s based on a reading of books about Longevity and even Immortality, we’re housing it in the Reviews, Encore Acts and Longevity & Aging blog categories of our sister site, the Financial Independence Hub.
Click on the blue link above to reach the MoneySense version or if you want to see images of the book covers discussed, they are in the version posted below. (The two sites tend to use different images to illustrate):
By Jonathan Chevreau
Whenever I suggest in a blog that investors might want to rethink Early Retirement, I usually hear from a few readers who insist that after 30 or 40 or more years in the workforce, they have a “right” to spend their last decade or so in the pursuit of leisure.
Readers are of course perfectly free to reject exhortations to “just keep working” but if I end up in email correspondence with them, I may reply that my stance is not predicated on the desire to give the financial industry still more assets to place under management.
Rather, it’s based on my growing perception that life expectancies are on the rise and the pace of medical breakthroughs in biotech and gene therapy does not appear to be slowing. Read more
Happiness, longevity, health and money are all (as you might expect) intertwined. In his book, You Can Retire Sooner Than You Think (also reviewed at the Hub), Wes Moss focuses on the five money secrets of the happiest retirees.
One of the books he mentions is Dan Buettner’s The Blue Zones: Lessons for Living Longer From the People Who’ve Lived the Longest. We will review that book, first published in 2008, in due course.
In the meantime, we’re going to look at Buettner’s followup book on happiness: Thrive: Finding Happiness the Blue Zones Way, originally published by National Geographic in 2010.
To research the book, Buettner travelled to four of the world’s allegedly happiest countries, two of which I’ve visited myself: Denmark and Mexico, and two I haven’t: Singapore and San Luis Obisco (in California). In each locale he contacts local elders known for their wisdom about happiness and how the city or country built its infrastructure to maximize it.
He then wraps it all up by summing up what these nations have in common with a chapter entitled Lessons in Thriving.
He concludes there are six “life domains” that can be shaped to boost one’s chances for happiness. These six “thrive centers” are:
Where you live is hugely important to happiness and the happiest spots tend to promote economic freedom, a high employment rate, tolerance, quality government, more community space, limited shopping hours, a limited workweek (37 hours in Denmark), support for the Arts, walkability, quiet surroundings and plenty of sidewalks and bike lanes.
The happiest workers are in jobs that don’t have long commutes, limit the workweek to 40 hours, take six weeks of vacation a year, socialize with co-workers and have the right boss. However, the self-employed and business owners report higher levels of well-being.
3.) Social Life
The wider your social network, the happier you’re likely to be. Buettner suggests joining clubs, creating your own Moai (a group of mutually committed friends), reconnecting with your faith, marrying the right person (someone similar to you with similar tastes and earning ability).
4.) Financial life
The book quotes Ed Diener to the effect “the key to greater well-being is to have money but not to want it too much.” (author’s emphasis). He recommends paying off your house (consistent with the Hub’s stance that the foundation of financial independence is a paid-for home, something Wes Moss also advocates), enrolling in automatic savings programs, avoid credit cards, create a giving account and invest in experiences rather than stuff. (also consistent with the motto in Findependence Day: “Freedom, Not Stuff!”).
The happiest homes have fewer television screens, ideally only one, they cancel their cable TV, own a pet, create a meditation space, create a “pride shrine” of family awards and trophies, grow a garden, maximize sunlight and reserve bedrooms for sleep, not electronic distractions.
6.) Self & Purpose
To yield well-being benefits for the long run, the book suggests you “recognize your values, strengths, talents, passions and gifts.” Once you do, this should help you realize your life purpose: determining “your reason for getting up in the morning.” He mentions Richard Leider’s bestselling The Power of Purpose, which uses the simple formula G+P+V=C. That is, Gifts plus Passion plus Values equals Calling.
Here’s my latest MoneySense blog, which bears the headline When dividend investing trumps a balanced portfolio.
That’s an accurate depiction of the content but here at the Hub we’re sticking with the more offbeat headline used above. Because this column really does begin with a true story about harness racing in Florida.
How can that possibly relate to asset allocation and dividend investing? Click the above link to find out, or the Hub’s version below. And yes, the happy winner depicted below clutching a winning ticket is my wife, Ruth Snowden.
She’s known in her industry by that name. When we got married more than a quarter century ago she was concerned I might take offence that she didn’t want to use my surname in business circles. My response won’t surprise those who know us: “Honey, you can call yourself whatever you want as long as you pay half the mortgage!”. Of course, the mortgage has long been paid off, consistent with the Hub’s philosophy that “the foundation of Financial Independence is a paid-for home.” Read more