Income for Life

Father Forgets

Tuesday, December 28, 2010

As this is a holiday week, I have something special for you. It's a short story written many years ago by W. Livingston Larned titled, "Father Forgets." I also have an amazing video for you that seems to fit perfectly with this story. You can find a link to the video at the end of the story!
 

Father Forgets by W. Livingston Larned

Listen, son: I am saying this as you lie asleep, one little paw crumpled under your cheek and the blond curls stickily wet on your damp forehead have stolen into your room alone. Just a few minutes ago, as I sat reading my paper in the library, a stifling wave of remorse swept over me. Guiltily I came to your bedside.

There are things I was thinking, son: I had been cross to you. I scolded you as you were dressing for school because you gave your face merely a dab with a towel. I took you to task for not cleaning your shoes. I called out angrily when you threw some of your things on the floor.

At breakfast I found fault, too. You spilled things. You gulped down your food. You put your elbows on the table. You spread butter too thick on your bread. And as you started off to play and I made for my train, you turned and waved a hand and called, "Goodbye, Daddy!" and I frowned, and said in reply, "Hold your shoulders back!"

Then it began all over again in the late afternoon. As I came up the road I spied you, down on your knees, playing marbles. There were holes in your stockings. I humiliated you before your boyfriends by marching you ahead of me to the house. Stockers were expensive - and if you had to buy them you would be more careful! Imagine that, son, from a father!

Do you remember, later, when I was reading in the library, how you came in timidly, with a sort of hurt look in your eyes? When I glanced up over my paper, impatient at the interruption, you hesitated at the door. "What is it you want?" I snapped.

You said nothing, but ran across in one tempestuous plunge, and threw your arms around my neck and kissed me, and your small arms tightened with an affection that God had set blooming into your heart and which even neglect could not wither. And then you were gone, pattering up the stairs.

Well, son, it was shortly afterwards that my paper slipped from my hands and a terrible sickening fear came over me. What has habit been doing to me? The habit of finding fault, of reprimanding - this was my reward to you for being a boy. It was not that I did not love you' it was that I expected too much of youth. I was measuring you by the yardstick of my own years.

And there was so much that was good and fine and true in your character. The little heart of you was as big as the dawn itself over the wide hills. This was shown by your spontaneous impulse to rush in and kiss me good night. Nothing else matters tonight, son. I have come to your bedside in the darkness, and I have knelt there, ashamed!

It is a feeble atonement: I know you would not understand these things if I told them to you during your waking hours. But tomorrow I will be a real daddy! I will chum with you, and suffer when you suffer, and laugh when you laugh. I will bite my tongue when impatient words come. I will keep saying as if it were a ritual: "He is nothing but a boy - a little boy!"

I am afraid I have visualized you as a man. Yet as I see you now, son, crumpled and weary in your cot, I see that you are still a baby. Yesterday you were in your mother's arms, your head on her shoulder. I have asked too much, too much.

Definitely puts things in the proper perspective, doesn't it?

And before I part ways for this week, check out this short video titled, "Which hand should I hold the baton in?" It will make you smile! Here's the link to the video:

http://www.choralnet.org/268945.html
 
Happy New Year!

  

Investing Lessons from a Winning Stock Market Trader

Tuesday, December 21, 2010

Market Update:  Property Taxes Keep Rising...
Feature Article: Investing Lessons from a Winning Trader
Critical Reads: 2010's Top U.S. Real Estate Sales
The Funnies: Cute Christmas Story

 

Property Taxes Keep Rising Even Though Home Values Have Dropped

Want to save some money next year? Consider petitioning to have the value of your home reassessed for your property tax valuation.

Turns out that property tax rates are set based upon the budgets of each local government, not based upon property values. Many local governments have dramatically increased their property tax rates because it's their only option to generate more revenue.

As an example, property tax rates in Northern Jersey have increased 12% while property values have fallen. If you have a few minutes, check out an article by Charles Hugh Smith at  this link. It almost makes you worry about what property tax rates will be in the next year or two...

 

Investing Lessons from a Winning Trader

Several years ago, Jack Schwager released a book featuring numerous interviews with successful stock market traders. In the book, he asked each trader about lessons they had learned and how they became ultra successful investors. This is a great book and strongly recommended for all investors. The title of the book is, " The New Market Wizards - Conversations with America's Top Traders", and you can find it at Amazon.com, including a Kindle version.

One of the experts interviewed was Randy McKay, who turned $2,000 into $70,000 in his first 7 months of trading. He went on to winning trades in 18 out of 20 years. This is an amazing track record in the stock market. The author of the book asked Randy Mckay the following question:

"You were a winning trader right from the start. Is there anything different you did that helps explain that early success?"

Here's Randy's answer:

"One of the things I did in those early years that worked was analyzing every single trade I made. Every day I made copies of cards and reviewed them at home. Every trader is going to have tons of winners and losers. You need to determine why the winners are winners and why the losers are losers. Once you figure that out, you become more selective in your trading and avoid those trades that are more likely to be losers."

 When Randy mentioned that he copied cards and reviewed them at home, he simply meant he reviewed and studied all of the stock trades from each day.  He analyzed why he made the trade, what happened with each trade and detailed lessons learned.

Maybe we could use Randy's strategy to evaluate our investments. What investments did you make in 2010? How did they go? What went well and why? What didn't go well and why? What can you learn from each investment? What mistakes can you avoid in 2011?

Believe it or not, we can apply Randy's strategy to just about any area of our lives including projects at work, family relationships, real estate investments, and progress towards our goals. The key seems to be analyzing what we've done and to looking for ways to improve.

The next question the author asked Mr. McKay was:

"What other advice would you have for traders?"

His answer was:

"The most important advice is to never let a loser get out of hand."

Are you holding on to some bad investments that you might be better off letting go? It's best to think mathematically about each investment instead of emotionally. Seems like Randy learned this lesson early on and it helped him become one of the greatest stock market investors throughout history. 

 

 Investors Buy 233 Unsold Condos in Michigan

An article recently appeared in Crains Business Detroit highlighting a large real estate investment of 233 condos. Two firms partnered to buy into a large unsold condo project in Ann Harbor that stalled out when the housing market sagged. They paid on average of $60,000 for each condo, which was $71,000 less than the last sale price of $131,000.

The most interesting part of the story is what the investors plan is for the condos. "For now, we plan to continue renting the units and create a community atmosphere," he said. "Then, depending on the market conditions, we'll decide in three-to-five years whether to change it."

Looks like the big time investors are buying properties at the bottom of the market with intentions to rent the properties for 3 to 5 years. Based on our research, 2011 looks like it might be the best year to invest as the real estate market bottoms out. Click here to read the article.

2010's Top US Real Estate Sales

If you've tried selling a home this year and were shocked at prices, take a few minutes to check out these top 10 home sales. Believe it or not, these sales might make you feel a little better. The "Le Belvedere in Bel Air, California was originally listed for $85 million and ultimately sold for $50 million. Ouch. Here's the link to the article which includes pictures.

Want to cook in Jessica Alba's Kitchen or Sleep in Mick Jagger's Bed?

A new article reported, "Many celebrities own two or more homes and a surprising number of these big-name stars will rent you their home -- as long as you can afford it. Yes, it may seem strange that a privacy seeking celebrity is willing to rent out his or her home, but it makes financial sense. The income from renting a house helps defray the high cost of a mortgage, property taxes and maintenance." Click here to see how much it will set you back to rent Mick Jagger's home.

Cute Christmas Story

There was a man who worked for the Post Office whose job was to process all the mail that had illegible addresses.
 
One day, a letter came addressed in a shaky handwriting to God with no actual address. He thought he should open it to see what it was about.
 
The letter read:
 
Dear God,
 
I am an 83 year old widow, living on a very small pension.
 
Yesterday someone stole my purse. It had $100 in it, which was all the money I had until my next pension payment.
 
Next Sunday is Christmas, and I had invited two of my friends over for dinner. Without that money, I have nothing to buy food with, have no family to turn to, and you are my only hope.. Can you please help me?
 
Sincerely,
Edna
 
The postal worker was touched. He showed the letter to all the other workers. Each one dug into his or her wallet and came up with a few dollars.
 
By the time he made the rounds, he had collected $96, which they put into an envelope and sent to the woman.
 
The rest of the day, all the workers felt a warm glow thinking of Edna and the dinner she would be able to share with her friends.
 
Christmas came and went.
 
A few days later, another letter came from the same old lady to God. All the workers gathered around while the letter was opened.
 
It read:
 
Dear God,
 
How can I ever thank you enough for what you did for me?
 
Because of your gift of love, I was able to fix a glorious dinner for my friends. We had a very nice day and I told my friends of your wonderful gift.
 
By the way, there was $4 missing.  I think it might have been those b@stards at the post office.
 
Sincerely,
Edna
 
I for one, don't think the folks at the post office get enough credit. They work their tails off during the holiday season and are forced to deal with a lot of cranky customers! I couldn't imagine having to deliver the mail 6 days a week throughout the winter months!

Merry Christmas!

Rob Minton

 

 

A Simple Strategy You Can Use To Make More in 2011

Market Update:  Team Hoyt & CAN!
Feature Article: A Simple Way to Make More in 2011
Critical Reads: Santa's Top 10 Favorite Cities
The Funnies: The Funeral Procession 

 

Team Hoyt & CAN!

I don't have a market update for you this week. Instead I have something even better...

Last week I had dinner with a few friends. We had competed in a few sprint triathalons this past summer and were swapping stories about who was better. You know, the typicaly trash talking guys tend to do! Before we changed topics, one of my friends, Dave Berrow, brought up Team Hoyt and suggested I watch the video. I grabbed my iPhone and sent myself a reminder email.

I'm glad I did, because I learned about Dick Hoyt and his son Rick. From TeamHoyt.com:

Rick was born in 1962 to Dick and Judy Hoyt. As a result of oxygen deprivation to Rick's brain at the time of his birth, Rick was diagnosed as a spastic quadriplegic with cerebral palsy. Dick and Judy were advised to institutionalize Rick because there was no chance of him recovering, and little hope for Rick to live a "normal" life. This was just the beginning of Dick and Judy's quest for Rick's inclusion in community, sports, education and one day, the workplace.

The story continues...

In the spring of 1977, Rick told his father that he wanted to participate in a 5-mile benefit run for a Lacrosse player who had been paralyzed in an accident. Far from being a long-distance runner, Dick agreed to push Rick in his wheelchair and they finished all 5 miles, coming in next to last. That night, Rick told his father, "Dad, when I'm running, it feels like I'm not handicapped."

This realization was just the beginning of what would become over 1,000 races completed, including marathons, duathlons and triathlons (6 of them being Ironman competitions). Also adding to their list of achievements, Dick and Rick biked and ran across the U.S. in 1992, completing a full 3,735 miles in 45 days.

Today Dick and his son participate in Ironman Competitions. Dick pulls his son through the water in a raft during the swimming course. He carries him through the transition areas, rides with him on his bike, and pushes him through the marathon using a specialized running wheelchair. 

It's one of the most inspiring stories I've heard in a long time and makes me want to work a little harder. If Dick Hoyt can do this for his son, what can you and I accomplish? Take some time to check out their story and make sure you watch the video. Here's the link to their site: TeamHoyt.com.

A Simply Way to Make More in 2011

A recent study from DayTimer.com found that workers with the highest incomes and most success in the workplace had written goals.  The study revealed these individuals had the habit of writing daily task lists with priorities associated with each task. The simple task of setting goals seemed to keep them focused on the most important activities, which allowed them to get more accomplished week-after-week.

You've probably experienced something similar in your life. Think about the last time you went on vacation. Did you get more accomplished the week before your trip than you had in the previous month?

Probably.

For some reason, were able to get twice as much accomplished the week before a vacation than in a normal week. This is true for almost everyone and it seems to happen for each and every vacation. Sure were motivated and excited about our upcoming vacation, but could there be more to this massive level of activity? Could our massive level of activity be the result of a detailed list of specific goals?

Yes!

Before a vacation, we typically have several "To Do" lists for work and home. These "To Do" lists include things we have to get completed before we leave. Maybe you have to get a report finished at work so it's ready while your gone. At home, you've got detailed lists of things you must do. These lists include everything from stopping the mail while your gone to what you need to pack.

When you stop and think about it, our vacation "To Do" lists are really specific written goals and these written goals seem to be the foundation of our high level of activity and accomplishment.

Maybe you've heard of the famous Harvard Business School study on goal setting performed some time ago where they studied a group of students 10 years after graduation. Here's what they found:

• 27% needed financial assistance. This group of students had absolutely no goal setting process in their lives.
• 60% were living paycheck to paycheck. This group of students had basic survival goals (having enough money to cover the bills)
• 10% were living comfortably. This group of students had general goals for the next 5 years.
• 3% were financially independent. And guess what? This group of students had specific goals that were written out including detailed steps.

I'm not sure if this study is legit or not, but it sure seems to make sense and it's pretty easy to test. Take a few minutes right now to list everything you accomplished last week. Will use this list in our little test.

Now, for next week, take some time to set specific goals you'd like to accomplish. Be as detailed as possible and include daily activities you must accomplish to reach your goals. Track and measure your progress each day by crossing off the things you've accomplished.

At the end of your second week, compare what you accomplished without detailed written goals to what you accomplished with detailed written goals. See if you were more productive with written goals. My guess is that you'll find you've accomplished significantly more with written goals than without.

Guess what?

This level accomplishment compounds from week-to-week when you consistently set written detailed goals as evidenced in the study highlighted above.

As a special gift, you can download my book "Achieve" on how to set and accomplish goals, without charge, at this link. You'll also receive specific worksheets you can use to set and achieve more in 2011. Links to download the book and workseets will be emailed to you!

I only have two items for you this week and they're definitely not critical. They're actually more on the fun side. Here they are..

Santa's Top 10 Favorite Cities

The folks over at Zillow published a list of Santa's Top 10 Favorite cities. Click here to see if your city made the list. Believe it or not, they factored in many variables to formulate this list including: weather, number of fireplaces, number of children, the number of single-family homes and more. It's fun read as head closer to Christmas!

Celebrity Homes (Including Pictures)

Did you know Miley Cyrus secretly bought a 1.9 million dollar beach home in Florida last year? Well she did! NYDailyNews recently posted pictures of celebrities and their homes which you might find interest. You can see these homes at this link.

The reason why we've included this as a critical read is to hopefully insire you to set big goals for 2011. Our feature article highlighted the power of setting written goals and maybe a new home might be on your list!

The Funeral Procession

A man was leaving a convenience store with his morning coffee when he noticed a most unusual funeral procession approaching the nearby cemetery.

A long black hearse was followed by a second long black hearse about 50 feet behind the first one.

Behind the second hearse was a solitary man walking a dog on a leash.

Behind him, a short distance back, were about 200 men walking single file.

The man couldn't stand the curiosity. He respectfully approached the man walking the dog and said, 'I am so sorry for your loss, and this may be a bad time to disturb you, but I've never seen a funeral like this. Whose funeral is it?'

'My wife's."

''What happened to her?"

The man replied, 'My dog attacked and killed her'

He inquired further, 'But who is in the second hearse?'

The man answered, 'My mother-in-law. She was trying to help my wife when the dog turned on her.'

A poignant and thoughtful moment of silence passed between the two men.

'Can I borrow the dog?'

The man replied, 'Get in line.'
 
Have a geat week!

Rob Minton

  

  
 

A book you MUST read...

Tuesday, December 7, 2010 Market Update: A Book You MUST Read This Month! Feature Article: Short-Term Thinking Destroys Long-Term Results  Critical Reads: Mortgage Interest Rates Increase 3 Weeks in a Row The Funnies: Funny Answers from Last Years GED Examination    A Book You MUST Read This Month! In early 2009, two friends suggested I read a book titled, "Guide to Investing Into Gold & Silver" by Michael Maloney. Based on their advice, I immediately ordered the book and spent the next few days reading every page. I'm very thankful for their recommendation! This book highlights the history of gold and silver and explains why we should consider adding these assets to our investment portfolios. When I read this book, gold was priced around $950 an ounce. Today it's valued at over $1,400. The numbers are even better for silver. Silver was priced at $12.50 in early 2009 and this week it crossed over $30 an ounce. There are many reasons why gold and silver are increasing in value and these reasons are critical for you to understand to protect your financial well-being. Short-Term Thinking Destroys Long-Term Results Last year, we rented a lovely home on Lake Norman for 3 weeks. I wrote about how I paid for this home, which is rather expensive, in one of our monthly Income for Life newsletters. You can test-drive the Income for Life membership for just 1 buck at this link. We enjoyed the home so much that we reserved the home for 3 again for next year. Because we reserved so far in advance and we were repeat customers, the owner didn't require us to pay a deposit. We signed the rental contract and planned to send the deposit this month for the next vacation. The owner received a request from another vacationer to rent the home during one of our weeks. Because we hadn't sent the deposit, the owner had decided to cancel our agreement and rent to the new vacationer. This isn't the end of the world, because there are many other homes available for rent. We would have simply found another home. However, we would have never gone back to this owner and their home again. Does it make sense to cancel a 3 week rental with a previous renter, to get a one week rental from somone else? Not really. The bad decision was magnified when you consider that we were repeat customers who took very good care of the home and paid as agreed. Even worse, we probably would have continued to rent this same home each summer going forward. This one short-term decision may have this owner 3 week rentals for years to come. Why do so many people make short-term choices without thinking about long-term consequences? If you stop and think about things for a minute, you'll see limited short-term thinking is the main reason so many people are struggling financially right now. Here are a few examples to show you what I mean: Do I buy the $3,000 flat screen TV on my credit card now, or save up and pay cash? Short-term thinking kicks in and we want instant gratification. What happens when the credit card bill comes in next month? Do I lease a new car because the monthly payment is lower, when I could buy the car and actually own it someday without having a monthly payment? Short-term thinking is going for the lower monthly car payment, instead of owning the same car long-term. Do I postpone saving for my retirement now because times are tough economically, or go make some extra income so I can continue to save? A significant number of people have decided to stop saving for retirement now.  Do I stop investing in real estate today because the market is flat, or do I think long-term and buy as many properties at discounted prices to maximize my long-term wealth? If everyone would think long-term before making any financial decisions, they would be much better off.  The best short-term decisions usually have the worst long-term outcomes. Interest Rates Increase 3 Weeks in a Row The Wall Street journal recently reported that mortgage interest rates have increased 3 weeks in a row. These rate increases were noted in fixed rate mortgages and adjustable rate mortgages making new homes a little more expensive. You can read the article by clicking here. For Home Buyers, A Season for Deep Discounts According to the New York Times, home buyers and investors can lock in some great discounts during the holidays. Historiically, December has always been a great month to buy a home. This is because there are fewer buyers looking and sellers tend to be more motivated. If you're thinking of buying a home or grabbing a great investment, now may be the time! You can read the article at this link. New Rules Require Rental Property Owners to File 1099s On December 31, new rules kick in requiring rental property owners to issue 1099 forms to service providers for payments of $600 or more during the year. These rules will now require you to issue 1099 forms at the end of 2011 for any repairs or improvements to your properties over $600. And as to be expected, there are penalties for not following the new rules. You can read the story at this link.   GED EXAMINATION Funny answers from last year's GED examination: Q. Name the four seasons. A. Salt, pepper, mustard, and vinegar. Q. Explain one of the processes by which water can be made safe to drink. A. Flirtation makes water safe to drink because it removes large  pollutants like grit, sand, dead sheep, and canoeists. Q. How is dew formed? A. The sun shines down on the leaves and makes them perspire. Q. What causes the tides in the oceans? A. The tides are a fight between the earth and the moon. All water tends to flow towards the moon, because there is no water on the moon, and nature abhors a vacuum. I forget where the sun joins the fight. Q. What guarantees may a mortgage company insist on? A. If you are buying a house, they will insist that you are well endowed. Q. In a democratic society, how important are elections? A. Very important. Sex can only happen when a male gets an election. Q. What are steroids? A. Things for keeping carpets still on the stairs. Q. What happens to your body as you age? A. When you get old, so do your bowels and you get intercontinental. Q. What happens to a boy when he reaches puberty? A. He says goodbye to his boyhood and looks forward to his adultery. Q. Name a major disease associated with cigarettes. A. Premature death. Q. What is artificial insemination? A. When the farmer does it to the bull instead of the cow. Q. How can you delay milk turning sour? A. Keep it in the cow. Q. How are the main 20 parts of the body categorized (e.g. the abdomen)? A. The body is consisted into 3 parts - the brainium, the borax, and the abdominal cavity. The brainium contains the brain, the borax contains the heart and lungs, and the abdominal cavity contains the five bowels: A, E, I,O,U. Q. What is the fibula? A. A small lie. Q. What does "varicose" mean? A. Nearby. Q. What is the most common form of birth control? A. Most people prevent contraception by wearing a condominium. Q. Give the meaning of the term "Caesarean section." A. The caesarean section is a district in Rome. Q. What is a seizure? A. A Roman Emperor. Q. What is a terminal illness?   A. When you are sick at the airport. Q. Give an example of a fungus. What is a characteristic feature? A. Mushrooms. They always grow in damp places and they look like umbrellas. Q. Use the word "judicious" in a sentence to show you understand its meaning. A. Hands that judicious can be soft as your face. Q. What does the word "benign" mean? A. Benign is what you will be after you be eight. Q. What is a turbine? A. Something an Arab or Shreik wears on his head.