My Next Big Bone to Gnaw on

 Ever since 2016, I have been crafting and honing my investment strategy. During this time, I have come across a handful of stocks and sectors that have consistently outperformed and provided my clients with above average returns. There's a used bookstore in town that my family frequents. It's called McKay's and it's simply magical. Amongst many of the gems I've found there, a book by Henri Arslanian titled Entrepreneurship in Finance - Successfully Launching and Managing a Hedge Fund in Asia made it's presence known to me. Other awesome finds include a signed copy of Extreme Ownership by Jocko Willinck and Leif Babin and a book called My Electrician Drives a Porsche? 

In his book Henri lays out in great detail the process to start a hedge fund, utilizing offshore accounts, as well as the many variables in Fund structuring, management, and tax implications. It's going to be a long journey, I won't be able to launch overnight, but while I organically grow Caelian Capital while also serving families as an Electrician, I think there's a giant opportunity.

Part of being a successful investor and investment advisor is successfully predicting the future based on the extrapolations of information we have. While the AI gold rush may be happening, we have to accept that, just like in the Industrial revolution, new jobs were created as old ones were replaced by automation. For me, this means nothing new. Helping others and serving is built into me. I'm not sure how people overall feel, I have friends who are excited at the opportunity AI may provide and others who are job scared - their career is actively being replaced with AI. For me though, it means the opportunity to continue expanding my skillset. Learning to do the things that robots can't do, but we need done. At the same time, financial advisors are being replaced by robo advisors and now AI can give any DIY investor a solid strategy to set it and forget it. from my perspective, this has always been the modus operandi of the industry, AI or not. Humans tend to laziness, so the bigger a firm gets, the more it creates Blanket Recommendations that cover most people. Most people are mostly the same. Of course that never sat well with me, I think there are more intentional strategies and trading that can be done. It's important to be directionally correct so that we can focus on other facets of life during our investment journey, but it helps having someone who can place the trades, for everyone at the same time, especially if the market (made of humans) is being emotional. AI may never be able to fully grasp human emotion. That is our edge and always will be. 

An evolved future landscape of careers and job opportunities to me looks like more and more people utilizing AI to reduce the time they currently work in order to free up time to perform other requests demanded by the open market. Those that seek to help supply theses demands will be able to leverage not only the evolving landscape of AI but also the Supply/Demand curve. Long gone are the days where people are defined by one career or job. With visionaries like Elon and others who own and direct multiple companies are setting the example to those of us who would see humanity drive forward into the future. If you're worried or anxious of what AI will do to your career choice, analyze the market and do the things that need doing to support civilization. Be necessary. If that means leveraging AI to replace the work you currently do so you can free up time to learn something else, like a trade, start. One day, a robot will show up to your house to fix your plumbing or install that EV Charger, heck, one day we may all have robot in the closet next to the broom and vacuum cleaner, but until then let's get to work building a better future of service, kindness, and more

Resolutions and checklists. Starting a new path to financial freedom doesn't need to just be a New Year's thing

Paula Pant wrote this great article recently. I think it follows up on some of the ideas I've laid out on my site and goes into detail about things I don't focus on. It is worth taking a look and making sure to bookmark to check up each decade.


Below is a short excerpt of the bullet points I found most helpful. Credit Paula Pant

In Your 20s

• Build your savings. This includes an emergency fund and funds for any special savings goals like vacations, holiday gifts, etc.

• Start saving for retirement. The earlier you start, the more time your money has to grow. Start off by opening a 401(k) or Roth IRA and see if your employer offers matching contributions. 

• Avoid consumer debt like the plague. Nothing you're thinking of purchasing is worth spending the next few decades of your life repaying. Find a way to pay for your purchases in cash, and avoid the "everyone has debt" mentality.

• Get insured. Even though you're fairly carefree right now, you should absolutely have renter's insurance, health insurance, car insurance and life insurance. Don't cut corners; skipping insurance is penny-wise and pound-foolish. If you think owning insurance is not cost-effective, please educate yourself on insurance more. Owning it actually increases your wealth through leveraging.

• Live within your means. This is interpreted as "Buy what you earn."

In Your 30s

• Up your savings game. Your savings goals are bigger now –- paying for a wedding, putting a down payment on a house, having a baby. 

• Continue your retirement contributions. Aim to put aside 10 to 15 percent of your income.

• Invest. You don't need to be a stock market whiz. 

• Start estate planning. Create a power of attorney, healthcare proxy (also known as a living will) and a will that outlines who will get your assets should you pass away.

• Avoid lifestyle inflation. As your salary increases, channel those funds towards goals like savings and retirement, remember?

In Your 40s

• Save for your children's education. If you haven't already done so, it's time to start, pronto. Open a tax-advantaged account like a 529 College Savings Plan.

• Check your retirement goal progress. You should be able to replace 70 percent to 85 percent of your current income when you retire. Are you on track? Use an online tool to see how close (or far) you are from your retirement goals.

• Maximize your tax savings. You're likely paying the highest taxes of your life, but you may also qualify for some great deductions. Meet with a CPA to make sure you're claiming everything you can.

In Your 50s

• Gather an advisory board. As you near retirement, you want to make sure all your ducks are in a row and your retirement and investment strategies are ready to take you through the financial stretch. Research and meet with fee-only financial advisers and CPAs for professional advice. Make sure your financial adviser is bound by a fiduciary obligation"to you, meaning that they legally must give you advice that's in your best interest, not theirs.

• Evaluate your portfolio. Review your asset allocation-are you being too conservative (or taking more chances than you're comfortable with).

In Your 60s+

• Review your estate plan. Does anything need to be changed with your will, health-care proxy or power of attorney?

• Create a retirement budget. You'll lose some expenses, like that mortgage you'll have paid off, but you'll gain others, like additional medical expenses or the need for someone to help you with the yard work. Work out a budget to make the most of your retirement funds in this stage of your life.

• Plan out your withdrawals. How will you make use of your retirement assets? In what order will you withdraw your funds, and how much will you withdraw at a time? Sit down with your financial advisors to discuss what makes the most sense for tax purposes.

• Downsize. Stretch your funds further by moving to a smaller home or apartment. You'll save on maintenance, property taxes, utilities and more.

While it may seem daunting to stay on track and working with all the obstacles life throws at us, this is an excellent guideline from Paula to help you stay on track! Check out her blog, Afford Anything

How to make a Million from Nothing: Part III

             Readers, I apologize for the hiatus. I have been busy with recovery, travel, working, and note-taking. Pondering, Self reflection, wasted time, and continuing studies...


            That brings me to my third, likely not final post as I help guide you to Financial Freedom.


            There is no Formula, There are no experts, There is only advice from those who have done it before and those that are finding new ways to do it.

Patience

              Religions teach it as a virtue, elderly praise it as the trait direly needed. I believe the sooner one learns to be patient, all aspects of life will drastically improve; namely, relationships with others and yourself, ultimately the pursuit of happyness.

              In the effort of achieving something, from nothing and our goal of starting out with whatever can be dug up out of the streets, sought for on the ground and then transformed into ownership, value, "money," etc... Patience is one (learned) trait that will help guide you to success.

             Skipping the long, educated introduction that you can now just search on the internet, I will define a specific form of patience. Our goal is focusing on 50 years instead of 50 days. If you followed my advice and do I say, not as I do then instead of worrying what your mutual fund, IRA, or stock fund is returning, worry about whether or not you should have worn that shirt today. After you build a stable foundation and your Side Hustle is generating decent returns, stress less, Be Patient. Keep following your Financial Regime.


             Remember in my post about defining Frugality I stated, "Behavioral studies show that people who are Frugal have the tendency to acquire economic goods or services in a patient manner in order to achieve a long term goal."
             Are you reinvesting your dividends? Are you using your Side Hustle earnings to reinvest in said Side Hustle to earn more profits?

Perseverance

            There is no Formula, There are no experts, There is only advice from those who have done it before and those that are finding new ways to do it. It must be repeated. Perseverance is one of those attributes that I think is taught through Discipline. Perseverance is tantamount to achieving your goals. Follow your own advice, stay the course.