THE IMPORTANT THINGS.

The Goal of Life is Living In Agreement With Nature."
Zeno, written in ~335BC


I Love This Place. I know most of my readers check this blog to find out about financial topics. I agree this is my main function and I spend a considerable amount of time studying the financial markets. On the other hand, I don't want to overlook the really important things in life. We bought this place in 1995, not because it was a spectacular house but because it puts us in closer contact with nature. It is an acre in the woods and, although that is a "micro spread" by Texas standards, it's affordable and about all I can take care of.


What's In Store For Your Retirement? In my last post, I discussed the importance of the ability to earn income. I hope no one took that to mean that it was important to live out your life in a job you hate. My first career as a chemist was fascinating to me....for the first 10 years. Things change and domestic chemical companies began to put less and less emphasis on research. My favorite job was at Marathon Oil Company on 7400 S. Broadway. If you drive by today, you'll see what was once a beautiful research campus turned into a vacant field which will probably someday be turned into a luxury housing development. When I ended up in management at a production facility, the job was no longer fulfilling. In a sense, I retired at age 41 when I entered a profession for which I had little in the way of formal training. At age 71, I still enjoy my second career, although I can hardly call it work.


The Important Thing Is Freedom. For me, the important thing is to be able to do the things I find fulfilling. That's why I was happy doing research and why I enjoy my life so much now. In my life, that's the purpose of money. Assets mean little. What is important is the ability to generate cash flow from those assets. It is that cash flow that allows me the freedom to study, read, write, play music, and do the things I want. Hence the name of this blog. Despite the problems I've encountered in the markets of late, I still want to concentrate on building income streams rather than increasing the value of my assets. This might not be the right objective for you. I highly recommend that everyone spend considerable time developing goals for their "retirement" before attempting to develop an investment strategy.


Still Working On My Reverse Mortgage. My biggest problem was finding someone interested. The only institution with appropriate follow up was Bank of America. I would guess that I'm 60% through with the process. I still recommend that clients interested in cash flow consider a reverse mortgage as a vehicle. While they might not be right for you, they can be used in a variety of ways to increase your cash flow including providing an lifetime guaranteed income, cash to invest, or eliminating current mortgage payments. For those worried about heirs, ask yourself which your heirs would prefer: A free and clear house or other assets that you have preserved because you got extra income from your house.


Looking Forward To Seeing You In Colorado. I will be there from April 14-22. Call Susan or send me an email if you want an appointment. Susan can be reached at 720-449-0200. If you have an ARM or sub-prime mortgage and you want to take advantage of the current low rate environment, this would be a good time to discuss it.