Tuesday Tips- #4 It’s The Economy Stupid (Part 2)

It has been quite a while since we have had any posts in this series from reader MK, and thus the time is right for issue #4. Today’s topic is the economy, yet again. As always, these comments are not mine, and their inclusion in my blog doesn’t necessarily mean I support them. I include them as food for thought and discussion.

It’s been months since the last Tip. My excuse? I’ve been productive: a nice 2016 harvest (1,500 pounds of fish and game plus half this weight in crabapples). Look, teen boys flat-out eat. And this merely supplements an annual consumption of 1,500 pounds of oat & rice plus 14,000 eggs. Protein? It’s kind of a big deal here.

This sidebar conveniently relates to my prior TT, which concludes: For those who can adjust their [economic] mindset and take action, real opportunity exists. So forget the theory; let’s get specific about the opportunity:

1) Read the book Dividends Still Don’t Lie (Wright). Invest accordingly. Educate yourself regarding stocks. Grok book value, PE ratio, and dividend yield. Extra credit: read The Intelligent Investor (Graham). Extra-extra credit: read Graham’s classic Security Analysis. Look, knowing about money is just what men do, like fixing cars, shooting guns, or hanging drywall. You simply gotta know it. Especially if you are young.

2) Follow the Investment Quality Trends newsletter for at least a year. This value-investing methodology has yielded double-digits since 1966 in very conservative manner. Too much work? Just dollar-cost-average your savings into the Vanguard Total Stock Market. While higher risk and lower return than IQT value investing, it’s not a bad option and requires little education. Extra credit: put savings outside of a 401k or IRA into an investment partnership (easy to start). This shields the money from lawsuits (cheap insurance). Remember, the primary cause of bankruptcy in the US is medical issues, and this could happen to anyone. We all get sick and die eventually. Be prepared.

3) Be a saver, not a spender. Select friends and romantic partners who are also savers. Avoid family members who spend recklessly. Hang with the kind of guys who actually play sports and do productive things, not the guys who watch other people do them on TV.

4) Kill. Your. TV. ‘Nuff said. 90% of consumerism (and cultural filth) comes from our media. Don’t even allow a TV in your house, especially if you have kids. Whisky and loaded guns seem less dangerous, to me.

5) Get serious about life. Do hobbies that produce health and wealth, not decrease them. For example, learn to fix everything. Buy less, and only buy quality. Eat at home. Vacation where you live. Learn to cook from scratch, sew, and tailor. If married, expect your wife to do this, and do it well. Grow a garden. Cut your own hair. Caveat: an alternative to this DIY approach? Pour excess time into a productive career. I prefer to live a fuller and leaner life and retire young, but heck, why not do both? Go big or go home!

6) Invest in yourself by trying new and productive things. For example, buy a house, improve it, and sell it for tax-free profit. This works for all sorts of things: cars, appliances, whatever. As Scott Adams says, each new skill you learn doubles your chance of future success. Life is short, think big.

7) Keep at least 6-12 months of cash outside the system (remember that withdrawals of $10k are recorded, so take your time). Store it carefully against fire and theft (e.g., vacuum-pack and bury). This is base insurance. If you get sued, divorce-raped, or forced into bankruptcy due to a medical crisis, you will be glad you did this. The money must remain private and easily accessible. Remember, if you are a traditional Christian, you should anticipate persecution. It’s not a question of if, but when.

8) Keep 10% of your net worth in physical precious metals and/or jewelry. Again, outside the system and stored carefully. Don’t even consider a safe-deposit box! For the same reasons as above. This is longer-term insurance; unlike cash, it will match inflation over the decades. Personally, I like to sell half when prices go high, and then replace it at lower prices for profit later. It’s nice to get paid to have insurance for a change!

9) Act. Everyone talks. Very, very few have the balls to DO. Be the doer. Take a risk. The odds are, you won’t do any of these things, even if you like the ideas. Why? Inertia is the greatest force in the world. Trust me, none of these things are easy to do. But I can’t recommend them enough. Act.

Lots of guys don’t see much point in it all today. They are listless and uninspired. I get this. I assume this is generally due to a poor diet, lack of exercise, and the declining economic and social situation that defines our hopeless era. Lack of hope is a lethal spiritual wound. Men ask: what are the options today for a serious religious guy? Become a monk, or a cuckolded provider for a woman cashing out of the SMP? The game seems rigged. The deck stacked.

Well, I say: Don’t fall into this trap. Forge your own economic lifestyle. Ignore the crowd. Become financially independent. Live with focus and purpose. Never look back. Demand more. You will be amazed at the number of people – especially women – who will follow you. I know I would. Hope, confidence, and excitement about the future are highly contagious.

 

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3 Comments

Filed under Civilization, Men, Red Pill

3 responses to “Tuesday Tips- #4 It’s The Economy Stupid (Part 2)

  1. My general thoughts on finances echo yours.

    1. Put 90-95% in the market, in passive total stock market index funds. Vanguard works well.

    2. Keep 5-10% liquid and have cash and guns if SHTF.

    Profit if the worldly system does well, and you’re prepared if it fails.

  2. anonymous_ng

    One thing I would add is that most of us in the US should open our minds to the rest of the world. The US stock market is expensive. The Japanese stock market, is not.

    While the probability may be small, the possibility exists that a day will come when it would be more comfortable to live outside the continental US. If that day comes, you’ll be ahead of the game if you’ve given thought ahead of time, considered where else you’d like to live, learned the local language, and considered how you would support yourself there.

  3. MK

    DS, nice plan if dollar-cost averaging into the market (although 90% is hanging low!). You know what bites? Even ignoring profit, ZIRP forces us to play just to match inflation. Pisses me off, for sure.

    Regard SHTF I prefer the 10% precious metals/jewelry (many 1930 Jews fled using gold, even as the their currency collapsed). Christians may well face a similar fate, this time around.

    anon_ng, they call the Japanese market the Widowmaker for a reason (30 years of lows!). Low price doesn’t always mean value, and increasing price doesn’t always mean low value. International stocks also hold currency risks, which complicates things beyond my weak skills. It’s hard enough to calculate value in my own currency!

    But I agree: based on the Dow PE & yield (20 & 2.4%) we are prob are near a turning point. But 18% of the Dow’s select blue chips are still undervalued (based on historical yields) & that’s all I own (I sell anything becoming overvalued). There is always value in the market of stocks, even at peaks…

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