Lazy Man and Money

Five Thoughts To My Future Children…

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I got the latest edition of Money Magazine yesterday, and Pat Regnier in his The Bottom Line column used the letter to his children as a literary device. It’s not unique (I’ve even written a letter to my high school self in the past), but nonetheless, I thought the idea was worth stealing flattering Mr. Regnier with my own letter to my own children. [Note: I probably wouldn’t use bullets and bolding in a real letter to my children, but I think you’ll find it easier to read.]

Dear Xetra and Dax,

  • Your Names – Sorry about the names. They seemed cool at the time. I didn’t think your mom would take my bet. Even so, Matt Cassel himself didn’t expect to win the Super Bowl.
  • Your Education – I’ve seen a lot of specialists make a lot of money. I was a specialist myself – one of a dozen or so people in the United States who could program a computer in a very propietary computer language. However, like me, a lot of specialists lose their jobs when that specialty goes away and have nothing to fall back on. There’s something to said about doing one thing and doing it well, but there’s also a lot to be said for networking well, writing well, speaking well, and knowing technology well. There are a lot of other valuable skills as well, but that’s a fine start.
  • Your Time – It’s the most valuable commodity you have. Right now, you probably view it as an infinite resource. It gets more finite with each passing minute. Look for ways to do something well once instead of having to do repetitive work. Many mistake your Dad as Lazy, but it’s more about being efficient with your time.
  • Your Money – If you haven’t learned it by reading Dad’s website by now, money is important. It buys you freedom from doing things that you don’t want to do. It buys you freedom to do the things that you do want to do. It also buys you the ability to help friends and family in time of trouble.
  • Your Happiness – I don’t have it quite perfected yet, but I’ve been working on a recipe for this. Beyond that, I’ve found four factors of focus: family, friends, freedoms, and fitness.

Getting Ready to Buy Some Stock

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Wednesday my wife said, “You know we have a lot of cash sitting around, we should start to invest it while everything is cheap.” It’s amazing how I can write about this stuff everyday, while she spends about 4 minutes a year on it, and we both come to the same conclusion. Then Thursday happens and the stock market store just slashed prices another 7%. Friday morning, I hope to open up a Zecco account (why do people pay commissions?) and see how quickly we can get some money in the market. I say “hope”, because I expect them to give me lots of paperwork and/or ask for me to fax something. Faxes don’t work well with my Vonage phone lines.

I make it sound like an easy decision to invest. We have a long-term view and could wait out quite a bit of a downfall. I realize that earnings and cash-flow are likely to drop making stocks, even at this price, fairly valued. Still, I have to agree with Chad at Sentient Money when he says, “This market might be the best buying opportunity in the next 10 years.”.

So what would I buy? I think, I’ll stop by Vanguard and look for some cheap broad-based ETFs. My first target will be to load up on Total Stock Market ETF (symbol: VTI). I’ll add some Small-Cap ETF (symbol: VB), just to overweight ourselves in that area a little bit. I would also look to their REIT ETF (symbol: VNQ) to diversify quite a bit. I may then look to diversify more by looking at PowerShares DB Oil Fund (symbol: DBO) and PowerShares DB Agriculture Fund (DBA). These last two typically go up as oil and food prices go up. This is a great hedge and if oil goes back up to $140 a barrel, we’ll have solid stock gains to offset the pain at the pump.

Would you buy tomorrow? If yes, how would you reduce risk, but still try to capitalize on these relatively cheap prices.

Update: Looks like it might take a few days to get the Zecco account set-up. I did everything to set up an active account yet it doesn’t look like I have an account set up to fund. Once I do have an account set up, I will need to decide how to fund it. If I go with the free ACH method it’s going to take 5 days. If I going with the wire transfer it will cost $20, but be quick. I’m leaning towards the wire transfer at this point.

My Six Word Memoir

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For those of you who don’t follow such things, there’s a thing in the world of blogging (often called a blogosphere) called a meme. Basically someone takes a topic, writes about it, and then “tags” others to write about it. I suppose if you don’t write about it, you get stuck being “it.” As we learned at an early age, no one wants to be “it.”

The point of the story is that I’ve been “tagged” by credit addict. I need to write six words that encompass my thoughts. So I had six words together:

Be Ben Franklin… healthy, wealthy, wise.

However, fate has changed my memoir. I was tagged for the same meme by Fat Man Unleashed to write one for Lazy Man and Health. This means that I’m going to have to split my single statement into two reflecting each personality.

Thus for Lazy Man and Money, I go with:

Money – freedom to do almost anything

This is really what Lazy Man and Money is about. I talk about being Lazy, but that’s just one example of what is possible when you are financially independent. I feel that it strikes a chord on some level with most people.

If you are curious what my health memoir is, please check my six word memoir at Lazy Man and Health.

The proper thing at this point is to tag some others. I’m not one to support pyramid schemes, so I’m going to tag three people total from my two websites. This is a more “sustainable” meme that will help it last longer. And rather than tag the big blogs, I’m going to bring attention to three blogs that have unique viewpoints, only a handful of posts, and could benefit greatly from your attention.

These sites are:

For those people the rules are simply:

  • Write your own six word memoir.
  • Post it on your blog and include a visual illustration if you wish.
  • Link to the person who tagged you in your post.
  • Tag at least three more blogs.
  • Leave a comment on the tagged blogs with an invitation to play.

Weekend Personal Finance Review – High Cholesterol Edition

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My wife got a cholesterol test yesterday. We’ve known that she’s had high cholesterol in the past, but this was off the charts bad. As some people know, the ratio of good to bad cholesterol is also important. Unfortunately this number isn’t on her side either. I’ve spent the morning researching what can be done to improve her numbers. Sadly, she’s doing a lot of the recommended things already. I did get a few ideas to ask the doctor about – one of which will be increasing her garlic intake.

While I’m studying, enjoy these links:

Celebrities and Money: Sarah Michelle Gellar

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Today I thought I’d unveil a new series focused on celebrities and their money. It’s not going to be a regular series – I’ll only post when I find relevant articles. If you have a link to a celebrity and money, feel free to contact me.

The first feature comes from an unlikely source (at least for the Lazy Man)… Self magazine. My wife has subscribed to the magazine for the past couple of years. While doing a little re-organization of the junk that I’m too lazy to clean, I came across the October 2007 issue. It features Sarah Michelle Gellar on the cover. As an obsessed fan of the Buffy the Vampire series, I was curious what she’s up to nowadays. I lost track of her career when she started doing Scooby Doo and The Grudge.

Well it seems like Scooby Doo, The Grudge, and some cartoon voices were the big career things. The article focused more on her life outside of work. This is what people want to read anyway. While some magazines make headlines out of Britney Spears or Lindsay Lohan, Self took Sarah (I’ve watched enough Buffy to pretend I’m on a first name basis with her) and her relatively boring life.

Here are the money related from the magazine:

  • Her transportation – For the first season of Buffy, it was a Chrysler LeBaron… “You hear about people… get their first pilot and get the Porsches…, but I just couldn’t do that.” Now she just uses a bike to get around New York City, “It’s bright pink, with the bell and streamers… it has Hello Kitty tires.” You can’t beat the frugality, but the image just made me throw up in my mouth a little.
  • Upbringing – “I was raised by a single mom. Finances were tight.” She took up acting at age 4 in an attempt to make a little extra money for private school. She notes, “100 commercials still doesn’t cover a private school education.”
  • Frugality – While she has birthday parties on two separate coasts (I suppose it’s tough to have half your friends in NYC and half in LA), she saves money just like us. “I take my reusable bag to Whole Foods, so I get a discount. I go to Bloomingdale’s on double-rewards days. I always print my dry cleaning coupons before I go.” I guess all of us can’t afford to shop at Whole Paycheck, but other than that, you have to commend her.
  • Charity – She chooses to support CARE whose main mission is to fight global poverty. The only way Sarah would do the interview is if she got to promote the charity which, of course, Self had no problems with.

One can never be sure if all the things said of stars are true. However, I believe there’s some truth to every story. I’m inclined to believe that Britney and Lindsay have “some issues”, while, in general, Sarah is a money-smart star.