The Misnomer of Flat and the Madness of Market Timing
Play • 35 min
This episode of MM discusses the market timing syndrome that so many investors face. Two very long and seemingly “flat” market periods are examined. This history lesson reveals that with dividends reinvested, returns were significantly positive and not “flat” after all.
The Power Of Zero Show
The Power Of Zero Show
David McKnight
My Interview with Former US Comptroller General David Walker (Part 1)
David Walker is a certified public accountant and has spent many years in public accounting. He’s run three federal agencies, two in the executive branch and one in the legislative branch. As the Comptroller General of the United States he was the chief performance and accountability auditor of the US. More recently, David Walker has run two non-profit companies and been a distinguished visiting professor at the US Naval Academy and has been on a number of boards and advisors groups dealing with a number of issues facing the US. Historically, there have been four things that have defined a superpower and the question is whether the US will still be a world superpower by the year 2040. The four main things are global economic, diplomatic, and military power, and global cultural influence. Under these definitions, in the years after World War 2 the US was the only country to qualify as a superpower, but in modern times China is beginning to overtake the US in many of those areas. China has already passed the US in terms of GDP on a Purchasing Power Parity basis. They have more embassies around the world than the US does. China is currently the #2 military power in the world today but they are dedicated to becoming #1, and they are spending a lot of money on it. Culturally, Chinese investors own the largest movie chain in the United States as part of their effort to have a cultural impact. Economics, demographics, and foreign alliances are starting to work against us instead of for us. It’s important that we wake up, learn from history, and heed the lessons from our nation’s founders, and that we start to change course so that we can remain a superpower and make sure our future is better than our past. The reasons that we are currently having problems today is because we have strayed from the values on which the US was founded. We have also not heeded the prescient warnings of George Washington: to avoid foreign wars, not have excessive debt, to avoid regionalism and factionalism. We are actually experiencing the same challenges as the Roman Empire did before it fell. It’s important that we learn the lessons of history so that we can do what is necessary to stay great and ensure greater opportunities for future generations. We were on an unsustainable fiscal path before Covid-19, and now we are in much worse shape. Debt-to-GDP in 2020 increased by 20% which is the most important metric we need to be paying attention to. It’s clear that additional legislation will be passed now that Biden will be President and the democrats control the House and the Senate. We will defeat Covid-19 but once we do, we need to put a mechanism in place that will allow us to make the tough choices that will get the debt-to-GDP ratio to a reasonable and sustainable level over the next 10 to 20 years. Prior to Covid-19, the Social Security and Medicare trustees estimated that the trust funds were supposed to go to 0 by 2035 and 2026, respectfully, but because of the economic effects of Covid-19, the years are now 2031 and 2023, respectfully. This means that revenue will still be coming in but any bills would have to be paid out of those funds. In the case of hospital insurance, payments will have to be cut 10-15% immediately and across the board, with cuts of 20-25% to Social Security benefits. All the more reason we need to recognize reality and start making the tough choices now. What are the implications of having debt balloon out of control? We have passed the all-time record for Debt-to-GDP which was previously set after World War 2. Unlike then though where we rapidly decreased Debt-to-GDP dramatically after the war, we are now adding Debt-to-GDP and plan to add more. Currently, our interest expense is not increasing because we are not experiencing regular market conditions. The Federal Reserve is buying significant portions of US debt and artificially holding down interest rates, which isn’t sustainable. The other problems stem from the proponents of Modern Monetary Theory, a theory that runs contrary to history and long established economic history. Politicians are already fiscally irresponsible, the last thing you want to do is give them an excuse to be even more fiscally irresponsible. History has shown that when debt as a percentage of the economy reaches unsustainable levels, it has an adverse effect on economic growth and this has a knock on effect on personal opportunity. Over 70% of the national budget is already on autopilot, the remaining 30% covers all the governmental responsibilities envisioned by the founding fathers. Modern Monetary Theory is dangerous and fundamentally flawed. The Biden administration will probably not adopt the theory, but even if that’s true we still need to make tough choices on spending and revenue. The problem can not be solved solely by controlling spending and economic growth, revenue will have to go up because of the reality of compounding and math. A wealth tax will enter the conversation, but it’s not possible to solve the issue only by taxing the rich. There is no question that the tax base will have to be broadened and that most individuals will have to pay higher taxes. One of the most important things to understand is that tax rates will never be lower than they are now. Assuming you will pay lower tax rates in retirement is no longer a viable plan. Tax rates may still have to double in the future, the longer we wait to make changes the more likely that’s going to be the case.
24 min
Self Storage Income
Self Storage Income
AJ Osborne
Pricing a Storage Unit - How to Know Exactly What to Charge to Increase Value
Welcome back everybody to the Self Storage Income Podcast! This is your host AJ Osborne. Today we have the big daddy of them all… unit pricing. If you own, operate, or are looking at investing in storage, have you every asked yourself: What should you be charging for the units at your storage facility? How do you know what the storage market can handle in your area? How much can you increase the rate of your storage units? What’s the BEST price you should charge for your storage units? If you’ve asked these questions before, you’re certainly not alone. You’d be surprised how many storage facilities we come across that are extremely under valued. They’re not charging the rates they could be. This is a great problem to have as an owner or investor, because you can immediately and simply resolve this issue. Not only that, you can increase your revenue by incredible amounts. This is what we’re going to jump into today. We’re going to cover everything unit pricing and help to answer all the questions you might have in regard to pricing units. To do this, we need to be able to accurately measure supply, demand, how to increase storage demand, value of our tenants (even over time), finding your ideal customer, and much more. One super important thing I want you to take away from this episode is to realize that each and every single one of the storage units at your facility is an individual product. I talk more on this idea on the podcast and why this frame of mind is so important. As always, thanks a ton for all your amazing support everybody. Thanks for listening! AJ Be sure to go to Selfstorageincome.com to get your copy of my Self Storage Playbook. This step by step playbook walks you through from start to finish - how to identify a self storage market, how to perform due diligence, how to contact a current owner, and ultimately how to land a deal and purchase a storage facility. You can also find the Self Storage Income Podcast on: * iTunes * Spotify * Stitcher The Self Storage Income Podcast is Sponsored by: Janus International - https://www.janusintl.com/ Store Local - https://www.selfstorage.coop/aws/SL/pt/sp/home_page Live Oak Bank - liveoakbank.com/incomepodcast
32 min
The David Bach Show
The David Bach Show
David Bach
026: How & Why You Must Protect Yourself and Your Family
What do you need to do financially to protect yourself and your family? If you’ve followed me for any length of time, you’ve heard me talk about my 3-basket approach to financial planning. Basically, Grandma always said not to put all your eggs in one basket. Well, she was right. And this same principle applies to your finances too! Today specifically, I want to go over The Security Basket — which is all about protecting you and your family against the unexpected (such as a medical emergency, the death of a loved one, or the loss of a job.) In this episode, you’re going to be reminded why the security basket is so critical. I’m going to help you commit to getting financially organized and teach you the 4 things you must do to protect you and your family. Are you ready to make this the year that you finally fix your finances? Then don’t miss this episode! In this session, here’s what we cover: * The single most important piece of advice for making financial progress. * The importance of knowing your net worth. * What happens if you die without a will? HINT: BAD IDEA! * Why life insurance is critically important - and the fastest/cheapest policy you can buy to protect your family! * Setting up a security account to survive emergencies - and why you should have enough savings to cover at least 6 months of expenses. * The 100-day financial challenge that will push you to set up a security account that will be there when you need it most. * The reason I’m retiring soon, and how we can spend more time together this year. Your Invite to GrowthDay Coaching David Bach now offers his monthly coaching on GrowthDay, where you get David and a dozen other world-class personal growth teachers LIVE every month, all year long. CLICK HERE to get LIVE coaching from David and other experts for less than $1/day! Interview Resources * GrowthDay Coaching with David Bach * The Best Life Insurance Companies * Smart Women Finish Rich * Smart Couples Finish Rich * The 3 Minute Sunday Newsletter * The Latte Factor: Why You Don’t Have to Be Rich to Live Rich * 11 Ways to Improve Finances * The Best Life Insurance Companies * Personal Capital * Clarity Money App * Mint.com Get Access to More Great Content! To get access to the best financial tools, resources, and advice to help you LIVE RICH NOW, visit www.FinishRich.com Connect with David Bach * Instagram * Facebook * Twitter * YouTube
25 min
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