The Propeller – Win Gold in the Tech and Finance Olympics. No Running Required! – 8-4-2024

Everyone wants freedom.

Financial freedom to support our families.

Geographical freedom to travel.

Time freedom to spend our most valuable asset how we’d like.

These tend to be the main motivations for building wealth. 

But there’s another type of freedom that’s probably even more important: the freedom to make the right decisions.

Despite fear, uncertainty, and doubt. 

Having the discipline to do what’s best for us despite the excuses, temptations, distractions, or what others may think.

That’s true freedom.

If you don’t have power over yourself, you have no power and no freedom—no matter how much wealth you have.

One of the most common mistakes I see when it comes to retirement investing is when people contribute to their retirement account or transfer money to their brokerage account, assuming their job is done and the money is “invested” simply because it’s in their account at Vanguard, Fidelity, Schwab, etc.

In reality, many people let their money sit idle for years or even decades because they didn’t take the crucial next step: actually purchasing investments like an ETF or mutual fund.

[Before some sticklers respond saying, “but you can do it in one step!” and make the purchase so the cash goes directly into your investment of an ETF or mutual fund: Yes, that’s true for some of us, but unfortunately, most people don’t take that step.]

Action To Do: Review all your accounts and check if you have any cash sitting around that you intended to be invested in the market. If you do, initiate that transaction to get it working for you!

I recently discovered a friend who had a few thousand dollars sitting in one of her Vanguard accounts, so i helped her promptly make a purchase of an Index fund to get it invested.

Investing is a two-step process, make sure you are doing both steps.

Struggling with slow Wi-Fi in certain parts of your home? Before you invest in expensive hardware, try this simple hack to boost your signal:

Position Your Router Strategically

Central Location: Place your router in a central location of your home. Wi-Fi signals spread out in all directions, so the more centrally located your router is, the better the coverage.

Elevate the Router: Position the router on a higher shelf or mount it on the wall. Wi-Fi signals travel outward and downward, so elevating the router can help spread the signal more evenly.

Avoid Obstacles: Keep your router away from thick walls, metal objects, and electronic appliances that can interfere with the signal. Even a fish tank can disrupt your Wi-Fi!

Angle the Antennas: If your router has external antennas, angle one vertically and the other horizontally. This helps cover both horizontal and vertical spaces in your home more effectively.

By optimizing your router’s position and making a few adjustments, you can significantly improve your Wi-Fi coverage without spending a dime. Give it a try and enjoy faster, more reliable internet throughout your home!

Investing can be intimidating, especially if you’re new to it. One of the most common questions beginners face is whether to pick individual stocks or invest in index funds.  I’ve seen it far too often, that people will pick some stock because one of their freinds said it was a hot pick – only to lose money or not make as much as picking a simple index fund.   Here’s why index funds are often the smarter choice:

Simplicity and Diversification
Index funds automatically diversify your investment by pooling money into a wide range of stocks. For example, an S&P 500 index fund invests in the 500 largest U.S. companies. This diversification reduces risk because your money isn’t tied to the performance of a single company.

Lower Costs
Index funds typically have lower fees compared to actively managed funds or buying individual stocks. Because they track a market index, there are fewer transactions and less management required, leading to cost savings that get passed on to you.

Consistent Performance
Historically, index funds have performed well over the long term. While individual stocks can be volatile and unpredictable, an index fund’s broad market exposure tends to smooth out the highs and lows. This consistent performance helps your investment grow steadily over time.

Less Time and Effort
Picking individual stocks requires research, time, and expertise. With index funds, you don’t need to worry about analyzing company reports or tracking market trends. This hands-off approach makes it easier for beginners to invest confidently.

Proven Strategy
Many investment experts, including Warren Buffett, recommend index funds for most investors. They argue that trying to beat the market by picking individual stocks is difficult and often unsuccessful. Index funds, on the other hand, are designed to match the market’s performance, which is a reliable and proven strategy.

Investing in index funds offers simplicity, diversification, lower costs, consistent performance, and requires less effort. For those new to investing, index funds are a practical and effective way to grow your wealth without the complexities of picking individual stocks.

Summer heat can drive up your energy bills, but smart technology offers an efficient solution. Here’s how a smart thermostat can save you money on air conditioning:

1. Programmable Schedules: Set your smart thermostat to adjust the temperature based on your daily routine. Cool your home only when needed, reducing unnecessary energy consumption.

2. Remote Control: Use your smartphone to control the thermostat remotely. Forgot to adjust the AC before leaving? No problem – change the settings from anywhere.

3. Energy Reports: Many smart thermostats provide detailed energy usage reports. Monitor and analyze your consumption patterns to identify savings opportunities.

4. Learning Capabilities: Advanced models learn your preferences and automatically adjust settings to optimize comfort and efficiency.

5. Integration with Smart Home Systems: Integrate your thermostat with other smart devices. For instance, smart blinds can close during peak sunlight hours, reducing the load on your AC.

6. Geofencing: Some thermostats use your phone’s location to adjust the temperature when you’re close to home, ensuring comfort when you arrive without running the AC all day.  It will also adjust the temp in your house when you leave to save money.

Investing in a smart thermostat can result in significant savings on your energy bills while keeping your home comfortable. Enjoy a cooler home and a fuller wallet this summer!

In Disappointing Affirmations, Dave Tarnowski masterfully captures the essence of mediocrity with such finesse that I almost feel accomplished just reading it. This book takes you on a rollercoaster ride of lukewarm encouragements and half-hearted high-fives, leaving you thinking, “Well, I guess that’s… something.”  This is one of the funniest books I’ve ever read. Instead of cliché affirmations about happiness, it’s filled with witty and hilarious sarcastic affirmations.

The affirmations are truly unparalleled in their ability to lower your expectations to ground level. Gems like, “You can’t win ’em all, and that’s okay because you’re not trying that hard anyway,” offer a refreshing take on self-help that screams, “Aim for the middle, and you might just hit it.”

Tarnowski’s writing is so endearingly underwhelming that it feels like getting a pat on the back from a sloth—slow, deliberate, and mildly comforting. Each page is a gentle reminder that it’s perfectly fine to be average, maybe even below average, and that mediocrity is the spice of life.

Here are a few of my favorite quotes from the book: 

No one is coming to save you. You are the adult. I’m so sorry.

I am exactly where I want to be. At home, avoiding people.

If you’re looking for a book that redefines the meaning of “meh,” Disappointing Affirmations is your go-to guide. It’s the literary equivalent of eating plain toast: blandly satisfying and surprisingly reassuring. Five out of five stars for making me feel exceptionally ordinary.

Pick up your copy here:  https://amzn.to/3yfyuca

Remember, life’s a lot like the Olympics—sometimes you stick the landing, and sometimes you trip over your own shoelaces. Keep going for the gold (or at least a solid bronze)!

This is re-published from the weekly email sent by Leonard Mack entitled The Propeller. To subscribe, visit https://www.LeonardMack.com/subscribe and read it every Sunday evening.

This intellectual nourishment is intended for informational purposes only. One should not construe anything herein as being legal, tax, investment, financial, or other advice.

My rule is this – I have no advice to give, only experience to share. I have no interest in being a guru or telling people what they should do. Rather, I share my own experience because there is no right or wrong. Your mileage may vary.