If you have been fortunate enough to work for an employer long enough to qualify for a pension, and your boss offers you one big check when you leave, in exchange for the smaller – and everlasting — monthly checks, would you take it?
J. Scott Trubey, a reporter for The Atlanta Journal-Constitution, has found that many big Atlanta companies are doing that. His report was published in the Oct. 14, 2012, edition.
On its face, it appears that the employers are bearing a big cost now, in lieu of mounting costs later. If the companies fund their pension plans, they won’t have to contribute nearly as much in the future by paying workers off now. If the numbers work well for the company, that’s all well and good.
But should the workers take the offer? There are several schools of thought. First, if you are ill and not expected to live a long life, you might think about taking the big payment now to cover your medical costs, presuming your employer doesn’t provide retiree insurance beyond Medicare. Of course, that would leave less for your spouse, if you are able to cover him or her in your pension. Then again, if you are a healthy, active retiree, expecting to live a long life in retirement, those monthly checks would be very nice to have for as long as you live. And, if you are fortunate to live a long and healthy life, you’d have collected so much more than that lump sum over time.
But let’s look at things a different way. Obviously, if you are not a careful money manager, or are not a savvy investor, or feel that having that much money in your pocket at once is too much temptation to spend frivolously and quickly, then the monthly pension payouts are best for you.
WHAT COULD $200,000 AT ONCE DO FOR YOU?
But if you have some financial smarts, or get good, reliable financial advice, you could invest that money with a return greater – even much greater – than your pension plan would get. To use round numbers, a $200,000 lump-sum payment in your hands could double every five years, whereas it might double every 10 years in the pension plan’s overly cautious investments. Naturally, pension plans have to be careful with their investments. But having the money in your hands give YOU power to invest it as YOU would want, with potentially more attractive returns.
Using those same numbers, if the $200,000 lump-sum investment doubled every five years, and you lived 20 years in retirement, you’d have a $3.2 million nest egg if you didn’t touch it. If that’s not practical – you need the money to live the retirement of your dreams – you can live off the returns of your money. An 8 percent annual return is not unheard of in the investment world, so you would make $18,000 a year to live on – and still have your lump sum. Compare that to your monthly benefit, multiplied by 12.There may not be much difference, or there could be a big difference in your favor.
The bonus: you would ALWAYS have that lump sum in its entirety working for you, no matter how long you lived. Just think if you took a part-time job you enjoyed. You might be able to put, say, $5 every paycheck from that job into that account to augment it. If you are money-savvy, you’d been saving all your life. It would be no big deal to keep it up.
If you already have decent savings over and above your pension and Social Security, and you add that lump sum to augment your account, how much more interest, dividends and capital gains would you make? Would your monthly pension matter?
So, if you are in a position to take a lump-sum payment in exchange for your monthly pension, give it a lot of thought. Get some good, trustworthy advice from someone other than a representative of your employer. Think about it from the perspective of control. If you like to control your own destiny, the choice you would make might be different from a person who doesn’t want the worry of financial management, or who budgets based on knowing what he gets every month.
Either choice has risks. You risk market performance with the lump sum, and you risk pension plans going belly-up with the monthly payment. Many pension plans are in trouble today and, even if you worked for a government agency or a very solvent company, that pension might not always be what you think it will be.
One more idea: what if you took the lump sum and invested a small portion of it into something that would give you a potentially substantial residual income that would dwarf your monthly pension? There are several ways to do that. To check out one of the best, visit www.bign.com/pbilodeau.
Most of all, if you get that choice,be thankful. So many people work hard and have NO pension. If you are young, don’t PRESUME you’ll get a pension, even if your employer promises it. Lots can change over time.
Peter
Author Archives: pbilodeau01
CLASS OF 2013: FEAR THE DEBT REAPER
It’s early, but Kyle Wingfield, columnist with The Atlanta Journal-Constitution, thinks it’s time to address graduates.
His October 2012 column suggests that graduates – mainly high school graduates – think about their options before going to college.
Wingfield suggests that they not end up like Katie Brotherton, a young Cincinnati woman who is $190,000 in debt from college and graduate school. She’s living in her parents’ basement.
Brotherton is “looking for answers.” As Wingfield points out, it started with her decision to go to college with borrowed money.
You can envision a pattern: a person goes to college, thinking she would get a good job when she got out. She doesn’t. So, she decides to go to graduate school, thinking it might broaden her qualifications and buy her time for the job market to improve. Meanwhile, she’s incurring more debt.
She gets out of graduate school with no good job and lots of debt. She moves back home. She doesn’t want to be living at home, but she has no choice. Her debt and lack of employment leave her unable to afford to live on her own. Her parents sympathize with her plight, but they, too, would rather see her out on her own.
A few decades ago, we were told to go to the best college we could possibly get into. The best schools would open more doors, we were told. The best schools, often, were usually the most expensive. But if those schools opened more doors, you’d be able to pay back your education fairly quickly with a good job.
Many of the “good” jobs that students thought would be there are not. In fact, they may have disappeared permanently.
As Wingfield points out, education inflation is rampant. There could even be an education “bubble” getting bigger by the day. We all know what happened with the housing “bubble.” It’s not that students should not get an education, it’s that some education does not provide a great return on investment, in terms of career opportunities.
Certainly, there is nothing wrong with getting a degree in history, literature or some of the other liberal arts. No education is really wasted. But students have to evaluate whether that education is worth the debt incurred, or, worth the sacrifices your family might make to provide it.
ARTS, HISTORY MAJORS: YOU HAVE OPTIONS
If you love history, the arts or psychology, you can still pursue them. But you can do so at less expensive schools close to home. You may be able to parlay those degrees into a good career, but you have to understand that most people with such backgrounds cannot convert them to real dollars.
All is not lost, however. You can get one of those degrees without using it as an income producer. There are many excellent ways to produce income outside your educational background. To check out one of the best, visit www.bign.com/pbilodeau.
Even if you have a degree in engineering, the sciences, technology, mathematics or other fields in great demand, you might want to have a Plan B if your career plans don’t turn out the way you want them to. There are excellent income streams that can get you out of your parents’ home as an adult.
So, as Wingfield addresses the class of 2013, he suggests that they not lower ambitions, just understand the reality. Not all college degrees are the same. Most college degrees can be obtained from schools that are not cripplingly expensive. Remember that as you get older and proceed in your career, or life, where you went to school becomes less important in terms of whether you get hired. A degree is a degree. You will succeed largely on your experience.
Success comes in many forms. Being a great historian may not produce lots of income, but it may produce great successes. Just realize that you may have to find another way to make a living, or create wealth for yourself.
Educational institutions need to be aware of the “bubble.” It could burst, and they could find themselves with great, expensive programs, and no students that can afford them. Students need to be aware that there are ways to make an income regardless of education. You just have to be willing to check them out.
Peter
TOUGH PERSONALITIES, EGOS ? WE NEED THEM!
Have you ever worked for someone who was so driven to accomplish what he wanted, he didn’t care who might get hurt – physically or otherwise – in the process?
Have you ever dated someone that was so driven with ambition of one sort or another, that you were an afterthought to him?
As difficult as these people are to be around, we need them.
They usually accomplish great things. We need to be a society that allows them to do their thing, as obnoxious as they may be, New York Times columnist David Brooks says in an October 2012 column.
Prosperity is often driven by small enclaves of extraordinary individuals that build new industries, and amass large fortunes, says Brooks. These folks often are unpleasant to be around.
He uses Elon Musk as an example. Musk, 41, grew up in South Africa, migrated to Canada at 15, worked on farms and at a lumber mill until going to Queens University in Ontario. He transferred to the University of Pennsylvania to major in physics and economics.
He believes the Internet, sustainable energy and the space program will be the future prosperity drivers. He dropped out of Stanford’s graduate physics program to start Zip2, an Internet map and directory company. He sold that to Compaq for more than $300 billion.
He helped create PayPal, then SpaceX, a space exploration company. He also helped create Telsa, an electric car company, SolarCity, a solar power company and Everdream, a data-center software firm.
He’s found success in everything he does, but, though many employees love him, there has been at least one blog set up to catalog his mistreatment of those he deems mediocre, Brooks says.
He’s been through two marriages, and one of his ex-wifes took him to task brutally in an article in Marie Claire, according to Brooks.
DO YOUHAVE TO BE SO OBNOXIOUS?
The lesson here is that we need people who think big, who are brutally focused on their visions and don’t stop until they accomplish them. The question is: do they have to be so, well, obnoxious, if they don’t think you are as good as they are? Is all that success really worth being a difficult husband or employer? Does a path to success have to be completely non-stop, or involve trampling others in the process? Many say it’s not the success that’s most rewarding, it’s the journey. And, it’s the people you meet, and help, along the way that matter.
Are you a person who prefers the leisurely drive or the quick flight? Would you rather take a walk through the park or the ride around the block to a destination? Is money, power and wealth your be all and end all? Are you getting richer, at the expense or off the backs of others, just because you can, and you think you are entitled to? Are the folks who may have tried to help you on the way insignificant?
It takes many kinds of people to make a world. It takes many kinds to create a world in which we all benefit. It’s great to be bottom-line focused, but you are probably missing something if you pay no attention of how you got there, whom you helped along the way and whom you’ve hurt.
If you are a driven person, take stock of who you really are. Choose relationships carefully. It would be wrong to have the person who loves you the most be unable to hang with you. A few pleasant stops on the way to the top never hurt anyone – and may have helped many.
Ideally, driven people also are nice people. They don’t expect everyone to be like them, and they love those near them for exactly who they are. They work around the “stops” with pleasure, even if they get to the top later than they’d planned. If you are that kind of person, or would like to be, visit www.bign.com/pbilodeau. Most successful people you will see never let success get in the way of the journey.
If you’re like Elon Musk, check out the site as well. You may be surprised at how pleasantly a fortune can be made. You might even learn how helping others can help you.
Peter
A DREAM RETIREMENT OR DREAMING YOU CAN RETIRE?
At age 45, some years ago, Denise McColister felt very secure in her job. She believed she would retire comfortably at 62.
Then, her husband became disabled. Their house, which was paid for, had to be leveraged to pay for his care. So now, at 55, she’s working a part-time call-center job. There is no retirement in sight.
McColister’s story was one of several told in an article by David Markiewicz, in the Sept. 23, 2012, edition of The Atlanta Journal-Constitution.
Over the years, retirement has evolved. Decades ago, workers longed for the day when their pensions, Social Security and retirement savings could be pooled into a comfortable life in the last years of life. They’d spent many years of hard labor and this was their reward.
They combined what their employers, their government and their own diligence did for them over the years to reach their dream. They hoped they would have enough good years of life, without sickness, disability or ordinary ravages of age, to travel, enjoy their hobbies or just relax with family and friends.
Today, the Baby Boomers look at retirement differently. If they are lucky, they have a pension, they have, or will have, Social Security and, if they were smart, a nest egg of savings and investments. But, presuming they are healthy, they can, and want to, still work at something that they can do largely on their own terms, so there is time to enjoy “retirement.”
The economy, however, has produced a number of folks like McColister who are not working at a job because they WANT to. They are working because they HAVE to. They are in this predicament through no fault of their own. The economy, or some other life catastrophe, has put them in a position in which, as Markiewicz quotes McColister, they will be working “until I am called home.”
If you are at or near retirement age, hopefully you have things in place that will allow you to enjoy some kind of “retirement,” or at least get you out of the rat race. If you are looking for something that will help in this regard, visit www.bign.com/pbilodeau. This vehicle could be the financial solution you are looking for, if you see yourself working until you die. Despite the ravages of a horrible economy over the last several years, there are ways out there to generate income. This is one of the best.
STILL YOUNG? START THINKING NOW!
If you are young, and not yet thinking about retirement, start now to prepare for that day. Check out a way you can work full-time at your job, and part-time on your fortune. Put a little money away each paycheck, and don’t touch it until you reach the age you want to retire.
Of course, should you be hit with a layoff or some other calamity,that may be easier said than done. Still, you must prepare for the worst and hope for the best.
Bad things happen to good people. Having multiple streams of income will help cushion the blows. We must presume that promises made to us, either by employers or government, will NOT be kept. If we do what we can do to prepare for trouble, and it never comes, we are that much ahead of the game. We also have to learn not to blame ourselves, or others, if misfortune comes. If we’ve prepared for the worst, we can use our energy to deal with misfortune, rather than retaliate against whomever or whatever we believe caused it.
What should you do now? First and foremost, don’t presume anything, other than YOU having control over your adversity. Secondly, think about creating multiple streams of income. If you do that, it won’t matter much what happens to you. You’ll be able to deal with it comfortably, without the angst and stress McColister and others face.
The greatest moment of your life is being able to leave a job that has consumed you, on your terms, with a smile on your face. Then, to quote former U.S. Sen. Fred Thompson in the AAG reverse mortgage ad, “live the life you’ve dreamed.”
Peter
YOUNG, ANGRY, VIOLENT
The violence in the Middle East is attributed to lots of things – inflammatory movies or other media, ruthless dictators etc.
But, in the Middle East, the center of the trouble, as New York Times columnist Thomas Friedman and other experts have said, is angry young men who are fairly well educated, but have no job to go to, and are otherwise inhibited from using their talents most profitably.
In the U.S., we also have many young people who feel left out of the process. They see a few people making lots of money, but don’t see a way to break into the action so they can do the same.
They see that they’ve gotten an education, and all they have to show for it is a big debt and, at the moment, no way to pay it. Perhaps they engaged in a field of study that is not in demand, or cannot be converted to a job that pays well.
Perhaps they grew up in an atmosphere in which competition was de-emphasized. Everyone got something, just for joining the club, or just for showing up. The real world is teaching them that showing up – or getting a good education – may not be enough. The parents have no way to bail them out, except by allowing them to live at home as adults.
We can find much to blame for this predicament. But, let’s not waste a lot of energy blaming someone or something. Let’s focus on where we go from here.
No one wants to see thousands, or even millions, of young people saddled with college debt and no job to pay for it. So, let’s try to solve that problem first.
The best way for a young person to get out of debt is to set up a business that he or she can work. For a look at one good possibility, visit www.bign.com/pbilodeau. This and other vehicles can help young people start to build their fortunes. The good news about this is that ANYONE can do it. No special background or requirements needed. The person just needs the drive to get it going, and get his or her friends in the same predicament to do the same. It can happen overnight, but typically it takes time and diligence. If things go well, you’ll whittle down that college debt in a very short time. You’ll have ups and downs, but just stay with it.
Remember, when the economy picks up, or when the young person finds work in the regular job market, he or she can take that job, and work their business with whatever other time they have. If they work at it consistently, having a regular job might be unnecessary.
If you are a young person not yet in college, you and your parents need to think not just about what college to go to, but also whether college is right for the student. There are many ways to make money that don’t require education (see above). Think about the job possibilities in the field you want to study. Would it be worth incurring the debt to study that, and risk not having an income to pay for it?
Think of the reverse. Make your money first, then go to college to pursue your interests. You’ll have the money to pay for it and whether you can make a living with it won’t matter.
Don’t get angry. Don’t do things that will set you up to fail. If you are already in a difficult situation, work diligently to get out of it. It didn’t happen overnight, and it probably was not your fault, even though others will blame you. It’s not about how you got there, it’s about how you are going to get out of there.
The alternatives for making money don’t involve government. They are not for the lazy or the impatient. The ambitious young people are just broke. They can fix that with energy, diligence, time and the right vehicle. The lazy and impatient will end up poor, unless they change.
Protests solve nothing and hurt innocent people. Some of the alternatives available to us in the U.S. may not be available to the young folks in the Middle East. In those countries, it may be more about breaking down barriers to success.
There are no barriers in the U.S. There is no need to protest. Use your energy to get out of trouble, or avoid trouble, rather than to blame those you feel got you in trouble.
Peter
HOBBIES, LUCK AND FORTUNE, PART 2
Are you an E person, an S person, a B person or an I person?
Robert Kiyosaki, with Sharon Lechter, explain the different types of people in their book, “Rich Dad: The Business School For People Who Like Helping People.”
E stands for employee. People in this category usually have a job, and are distressed if they don’t have one. They work for someone else, building someone else’s dream. They are OK with that. They work for money. They have to keep working or the money stops. They look forward to weekends (or days off), vacations and, ultimately, retirement. They’ve resigned themselves to a long, hard road – newly pocked with insecurity since 2008 – until they can retire.
S stands for small business owner. These are rugged individuals, wanting to be their own bosses. Most want their businesses to grow. Some don’t want them to get TOO big, where they can’t run them alone. These individuals believe they are the best and the brightest within their company. Everyone works for them. They may admirably spend their lives building their businesses, shun vacations and hope they will have something valuable enough to sell when they are ready to retire.
The B person owns a BIG business. He has many people working for him. He’s the boss, but some of his employees may be smarter than he. He’s OK with that. In fact, he strives for it. You see, he’s still, and always will be, the boss. (Note: Most CEOs are in the E category. They make a lot of money, but still work for someone else). Those in the B category will own their big businesses until they die. They will probably work in those businesses until they die. It’s financial security, certainly, but where’s the freedom?
The freedom rests in the I category. These folks build wealth, not income. They never have to worry about where their money will come from. They can do what they want. They can go anywhere, anytime for any reason – or no reason at all. They have as much, or more, wealth, as the B person, but they have the TIME the B person does not. These folks have residual income, defined as getting paid over and over again for doing something once. That’s normally associated with people in the movie, TV or recording business getting residuals from reruns. But those in network marketing build initial teams, and help them grow – usually by working with those they’ve brought in to build their teams – and their dreams. The best day of the week for them is the day the weekly check comes in, regardless of what they did the week before.
SECURITY AND INCOME VS. FREEDOM
The Rich Dad book goes into great detail about these types of people, but we’ll sum it up here. The E person craves security. He may envy the rich, or criticize the rich, but never see himself as rich. You can put a fortune in front of him, and he may never see it, or may fear it. Some may make good money at their jobs, but they are still working for someone else.
The S person sees HIMSELF as the catalyst for his life/business. People may help him get rich, but that task is so consuming to him and he doesn’t have time to help others. The important thing for him is that he is beholden to no one. He may tell others what to do, but no one – save, perhaps, a spouse or parent – can tell him what to do. Often, this person’s ego can take over his life.
The B person’s success is undisputed. He is among the fortunate in life. But his fortune comes at a price. He has little time for anything, other than business – or making money. He hopes he doesn’t die before he can relax.
The I person is the dreamer. He dreams not just of financial freedom, but also time freedom. He works for time, not money, though money gives him time. He builds his big dreams by helping others do the same. Chances are, he’s in network marketing, if he’s not in show business. Although, network marketing IS show business. You SHOW others how to do what you are doing.
If you see yourself as an I person, visit www.bign.com/pbilodeau. It may be the financial freedom vehicle you’ve been looking for. If you are among the other types, and REALLY WANT to be an I person, it would be worth your time to check out the site as well.
We are who we are, but can become who we want. But you have to WANT to become who you want. You can be an E, S or B, and work toward becoming an I – if you want. Many work full-time on their jobs or businesses, and work on their fortune and freedom as a sideline – until the fortune kicks in. Then, they grab the freedom. They say, goodbye E, S or B. Hello, I.
Peter
HOBBIES, LUCK AND FORTUNE: PART 1
Debbi Fields loved to bake chocolate chip cookies. Little did this California housewife know that her hobby would become a big business – Mrs. Fields.
Ken Hannah started a steak house restaurant in Massachusetts. But it was his homemade salad dressing that would become his empire – Ken’s salad dressing.
We often dream that our hobbies, our passion or something we create would earn us great wealth. It happens rarely, so most of us have to be content with just loving our avocations. If we turn them into an income stream, that’s a bonus.
But there is hope for all of us – even those who don’t yet have avocations about which they are passionate. It’s the greatest anti-poverty program in the world for two reasons: it makes average people wealthy AND people get wealthy by helping others get wealthy. It’s known as network marketing.
Robert Kiyosaki, with Sharon L. Lechter, in the series of “Rich Dad, Poor Dad,” books, has written a book titled “Rich Dad: The Business School For People Who Like Helping People.” In it, he shows that it’s not the invention itself that makes one rich. It’s the network by which that invention is distributed that makes people rich.
Debbi Fields and Ken Hannah invented something special, but didn’t become rich until that invention was widely distributed. In network marketing, the product(s) have already been invented or created. The average person gets rich by building a network to distribute that product. Here’s the beauty of it: you don’t have to build these networks through anything other than talking to others about it, and showing it to them.
Kiyosaki did not build his fortune through network marketing. But through his research, as his book states, he’s become a fan. Why? You see, many people get rich AT THE EXPENSE of others. They use others’ labor and others’ talent to enrich themselves. Those who made them rich get very few of the spoils.
Through most legitimate network marketing companies, one cannot get rich unless he helps others do the same. Anyone can do it, yet, network marketing is not for everyone, Kiyosaki says. Donald Trump and Warren Buffett also have invested in network marketing companies.
To do anything well, you have to believe in what you are doing. Belief turns to passion. Passion oozes out of you as you talk about your product, and recruit others to work with you. Those who are looking to change their lives will see that passion in you, and want to follow you. The passion becomes contagious, and the people who see your passion and join you, become passionate themselves and attract others. That cycle builds networks that can make everyone in it rich.
Why is it not for everyone? There are lots of folks who NEED something to come into their lives that will change it for the better. But not everyone LOOKS FOR IT! Many are content enough with what they have, even though they envy others who have more. Many others are clearly not content, but even if you put a fortune in front of them, they will never see it. Still others see it as too good to be true, and are so skeptical they won’t get near it – no matter how well they know you, and no matter how passionate you are. To borrow a phrase from the U.S. Marines, you are looking for the few, who will ultimately become the proud (and rich). Along the way, you’ll find the many who will not.
There are many good network marketing companies out there. To check out one of the best, visit www.bign.com/pbilodeau. How will you know that the one you are shown is among the best, and won’t burn you? You can do your own research, of course, but here is your first clue: is the person showing it to you SHOWING, rather than SELLING? How will you know that? He’ll take NO for an answer, and walk away.
He may update you periodically on how he’s doing, if you show some interest, but he won’t keep bothering you. Remember, he’s interviewing you for his business. He’s not looking for any special talent. He’s looking for desire and interest. Sure, he may sell you a product that you will use anyway, and may not want to sell yourself. But he’s really looking for business partners.
The next time someone you know – or perhaps someone you don’t yet know – offers to show you something that they say could change your life, check it out. Say no if it’s not for you. Say yes if you believe it is. But unless your life is so good that you don’t need a change, take a look. Then, decide.
Peter
MIDDLE CLASS DISAPPEARING? TOO LATE FOR BLAME!
Many of us dreamed of a good job, nice house, great family and never having to worry that all that will go away.
Slowly – or perhaps not so slowly – it may be.
In August 2012, Kansas City Star columnist Mary Sanchez took a look at the problem, thoroughly examined by reporters Donald L. Barlett and James B. Steele in their book, “The Betrayal of the American Dream.”
The book details how the middle class is eroding, and how those who consider themselves part of the middle class are voting in favor of people and policies that may be against their own economic interests.
Barlett and Steele, according to Sanchez, point to 1985 as a pivotal year. From 1950 through 1985, the number of American workers with defined-benefit pension plans grew. Since 1985, employers have killed 84,350 defined-benefit pension plans.
These pensions, combined with Social Security – also in peril over time – kept the middle class in the middle class during their elder years.
One may argue that pension plans with employee contributions, combined with company matches, are even better for the employees. That certainly may be true if the employees contribute to or near the maximum allowed by law, AND the financial markets behave.
In recent years, the behavior of the financial markets has been less than stellar. Companies and other employers have had difficulty sustaining their pension plans. The Baby Boom generation is retiring in earnest, thus stressing any type of pension plan.
BLAME NOT IMPORTANT! WHAT TO DO NOW?
Who is at fault here? That’s no longer important. The important thing is what workers do now.
If you have a job in which working past normal retirement age is tenable, that’s an option. If that is not an option for you, you probably need a Plan B. There are many Plan B options out there. To check out one really good one, visit www.bign.com/pbilodeau
If you have a pension that has not gone away, consider yourself blessed. You’ve worked hard for it and certainly deserve it. However, others who’ve worked just as hard may not be as lucky. Their employers have broken their promises. Or, their employers never made the promise. Or, their employers have stopped making promises. If you have contributed toward your own pension, you will still have something. But your elder-years lifestyle, or perhaps your current lifestyle, hangs in the balance.
As many advocate less dependence on government, they are in effect advocating more dependency on employers – and many employers like that. Many employers like to see a certain amount of desperation among their staffs. They want people not to get too comfortable in their jobs. They want to maintain the right to break a promise if it proves too difficult to keep.
As an employee, there is little YOU can do about that, other than to leave. The goal becomes to hang in until YOU decide it’s time to go. That may not always be possible.
Consider carefully your own economic interests before making any decision. Don’t be fooled into thinking you’ll be taken care of, by either government or your employer, when neither may be the case. Not all pensions – even those from the government — will be guaranteed.
If you are young, PRESUME no one will take care of you. If you are older, and have been jilted by your employer, find a Plan B. Try not to work longer than you want to – easier said than done, certainly.
It’s not a matter of what’s happened and whose fault it is. It’s much too late for that in most cases. It’s a matter of how YOU solve YOUR problem, even if YOUR problem is not YOUR fault. Choose carefully.
Peter
DO YOU CLIP COUPONS AND THROW THEM AWAY?
We are inundated with coupons.
Merchants use them for effective marketing.
But many have an expiration date on them.
Wise shoppers clip coupons for only what they use – or might use.
If you happen to need that can of artichokes before the coupon expires, you put a few cents in your pocket when you buy it, using the coupon.
But here’s the reward: if you didn’t need it before the coupon expires, you put the entire cost of the item back in your pocket, and throw the coupon away.
As you do, do you feel as if you’ve thrown THE VALUE of the coupon away, or have you saved money by not buying the item?
If you have storage space in your home, you could have bought the artichokes at the coupon price and stored them until you needed them. That would have been wise, if you could do it.
Or, you could shop several stores and see what artichokes go for. If you find them below the coupon price at a store that won’t take your coupon, the shopping effort is worth it, providing you won’t see your savings burned up in gasoline to get to that other store.
The point here is that when you buy things you use, there are ways to save lots of money with a little effort. Countless people don’t bother to use coupons. They can’t be bothered clipping them. They throw lots of money away. Over years, those little, unused savings add up. They might even mean the difference between retiring at, say, 60, and having to work until, say, 70.
Saving money is not rocket science, but you have to devote some time. Very few people go into the first car dealer they see to buy a car. Very few people would have a Realtor take them to look at one house, and buy it on the spot. But we seem to think that a penny here, a nickel there, a dime over here makes no difference in our lives.
LITTLE THINGS, BIG PICTURE
This is where little things form a big picture. It’s OK to clip a coupon and throw it away. Obviously, you didn’t need the item when it was on sale. You may know people who will buy something JUST BECAUSE it’s on sale. They’ll take it home, and maybe they will figure out how they can use it.
Know what you use, and buy only what you use!
By the way, electronics are usually big-ticket items. One could go broke keeping up with the trends in gadgets. Have you ever met a person who will cheap out and cover over a roof leak only with shingles, and not replace the wood underneath, but has every electronic gadget imaginable inside their homes?
These are misplaced priorities. Do you have your spending priorities straight? That will go a long way to a great life.
If you are a careful shopper, visit www.bign.com/pbilodeau. Check out the plethora of big savings, and little ones. You’ll also see a way to earn potentially a lot of money.
The next time you see a person down on his luck, and you feel comfortable giving that person advice, ask him whether he knows where every penny of what he earns goes. Chances are, he does not. He spends without thinking, much of the time. Those who spend carefully may not have every trendy thing, but they have what they need – and much of what they might want. Little actions, multiplied over time, can pay big dividends.
Peter
WHO BUILT ME
“You didn’t build that.”
That quote, by U.S. President Barack Obama in the summer of 2012, implied that entrepreneurs had plenty of help building their businesses. It was taken wildly out of context.
Related to that, New York Times columnist David Brooks, in August 2012, fielded this question from Confused in Columbus: “How much of my success is me, and how much of my success comes from forces outside of me?” In other words, “who built me?”
Brooks answers by saying: “As you go through life, you should pass through different phases in thinking about how much credit you deserve.”
He basically says that younger folks have full control to build their lives as they see fit. Some call that sowing wild oats. But it’s more than having a good time, and doing things you might regret later. It’s a sense of starting fresh to build “you.”
As you reach middle age, Brooks says, you are more governed by circumstances. Your part in your life may be more navigational through those circumstances, than creative. As you hit your 50s and 60s, says Brooks, you start to see relationships as more important than individuals. Who influenced you through your life? Who helped you? Steve Jobs’ greatest accomplishment was building a company, not a product, Brooks says.
In your elder years, you are struck by how you got there. You are struck by the astonishing importance of luck – whom you met, where you worked, Brooks says.
Brooks concludes that you should start life in complete control of what you do, and will be, and you should finish life recognizing that you probably got better than you deserved.
The latter statement probably refers to humility, not that you “didn’t deserve” to be where you are.
WE ALL DESERVE GREATNESS
We all deserve greatness, but it must be achieved, not just received. Some obstacles will befall us on the road to greatness. Those who go around, climb over or go through — take your pick – those obstacles will eventually see greatness. Hopefully, you will go through those obstacles without hurting others – in fact, you will help others. The process of becoming great is as important as the greatness itself.
Also, greatness comes in many forms. As you progress through life, you will find not only the type of greatness you wish to achieve, but also how you wish to achieve it.
You will learn that you cannot do it alone. Help others as others have helped you. Parents, teachers, mentors, spouses and others who become part of your life will play a large part in building you. Be grateful to them, long before your elder years.
You play a big part in building you. Other people and things help along the way. Sometimes we have control of those people and things. Sometimes we don’t. We come to realize that people, working alone, can only do so much. We realize that this is not meant to discourage us, it’s meant to motivate us, and instill gratitude within us.
Don’t let circumstances discourage you. Let them show you what you need to do to achieve greatness. Have faith that you can achieve what you want to achieve, but will need and want help along the way.
In fact, you deserve to see potentially a great life for you. Visit www.bign.com/pbilodeau.
You may start as the architect to build you, but will use many subcontractors as you mature. The entrepreneur in you knows he can’t do everything alone. You can HELP build you, but you need the proper context for the complete you to emerge.
Peter