The Propeller - August 20, 2023 - Landing a Plane with No Brakes

The Most Important Investment there is: Time

I’m protective of my time. After all, it’s our most precious asset: the one asset we can’t get more of.

In realizing this, I’ve noticed something like “time drag.”

Let’s say I scheduled a 30-minute meeting. (My day is full of these 30 and 60 minute meetings)

I think it’ll just be 30 minutes of my time, but that’s not reality.

I’ll spend 10 minutes before the meeting prepping and maybe another 10 minutes after the meeting to get back into the rhythm of what I was doing.

There goes 50 minutes.

The next time you decide to take something on, be aware of its true cost in terms of time away from being productive.

How you decide to invest your time is as important an investment as any.

Tax Gain Harvesting

You’ve probably heard of Tax Loss Harvesting, but a not as well-known strategy is Tax Gain Harvesting. Using this strategy can potentially save you quite a bit in capital gains tax.

Tax gain harvesting is a strategic financial practice employed by investors to optimize their tax liabilities while managing their investment portfolio. The concept revolves around intentionally selling investments that have appreciated in value, thereby realizing capital gains. Then immediately re-buying the investment. This resets your tax basis for this investment. This approach is typically employed in scenarios where an investor’s taxable income is lower, enabling them to take advantage of the favorable tax rates on long-term capital gains. By “harvesting” gains strategically, investors can offset these gains against any capital losses they may have incurred, minimizing their overall tax burden. This is a strategy that many early retirees (FIRE) do once they retire and lose their main source of income. You could potentially have a 0% tax rate. This technique requires careful consideration of both investment performance and tax implications, making it an essential tool for those seeking to maximize after-tax returns within the bounds of the tax code.

Here is a recent CNBC post about this strategy: https://www.cnbc.com/2023/08/16/how-to-leverage-0percent-capital-gains-with-tax-gain-harvesting-.html

War Costs Comfort, Peace, and apparently, Brakes

Russian airline Aeroflot has been struggling to maintain its aircraft in the face of the ongoing sanctions against their home nation.

Banned from doing business with American and European countries, Russian commercial airlines have faced repossession and economic sanctions that make it hard to repair their aircraft.

In fact, earlier this year, Aeroflot had to send aircraft to Iran for maintenance. Because Iran has faced similar challenges in the past, privately-owned airline Mahan Air had “the necessary equipment and facilities, certificates and vast experience,” according to an Aeroflot spokesperson.

However, it seems that may not be enough, as their most recent announcement shares that NINE aircraft are now flying with deactivated brakes, a move they report is authorized for up to 10 days. Though it’s an accepted practice to deactivate brakes on one or more wheels to defer maintenance, it’s not exactly a confidence booster before a big trip.

Instead of grounding the planes, the airline has simply released a memorandum to its pilots, reminding them to pay attention to the turning of the aircraft, which will be impacted by the brakes. With many exclamation points, the pilots are also reminded not to overrun the runway… duh.

Tech: Update your Routers Firmware TODAY!

A router is a device that typically uses an Ethernet cable to connect to a cable modem or other internet connection. It shares your home’s single internet connection with all your wired and wireless devices, creating a local network. It’s also used for network management and hiding and protecting your local devices from the World Wide Web. It doubles as a “firewall”

Updating your router’s firmware (Its internal software) is of paramount importance, especially when considering the critical role that routers play in maintaining the security of your network. Even if it is just your home network, a router with an out of date firmware can leave you and your devices vulnerable. Firmware updates provide essential patches and fixes that address vulnerabilities and security loopholes discovered since the router’s initial release. Neglecting these updates leaves your network exposed to potential cyber threats, as attackers continually exploit weaknesses to gain unauthorized access, intercept sensitive data, or launch malicious attacks. By keeping your router’s firmware up to date, you ensure that its security mechanisms are robust and equipped to fend off emerging threats, safeguarding your digital privacy and maintaining the integrity of your online activities. Regular firmware updates are a proactive measure that underscores your commitment to maintaining a secure and resilient network environment.

Here is an article that goes in-depth on how to update your router’s firmware. Each brand of router is slightly different. If you need help, reach out to me!

https://www.slashgear.com/1096525/how-to-update-your-wi-fi-routers-firmware-and-why-you-might-want-to/

What I’m Reading/Listening To This Week

My goal of reading one book a week in 2023 is still underway. I am on book number 33 this week!

What I read Last week:

12 Rules for Life: An Antidote to Chaos by Jordan Peterson is a personal growth book that combines psychological insights, philosophy, and practical advice to guide readers toward a more meaningful and well-structured life. I have followed Peterson for quite some time and enjoy his podcasts and speeches.

Peterson’s twelve rules are designed to help individuals navigate the complexities of existence, drawing on his expertise as a clinical psychologist and his understanding of mythology, religion, and human behavior. Here are his 12 rules:

Stand Up Straight with Your Shoulders Back: This rule emphasizes the importance of adopting a confident posture, both physically and metaphorically, to assert oneself in the world and face challenges.

Treat Yourself Like Someone You Are Responsible for Helping: Peterson encourages self-care and self-compassion, urging readers to prioritize their own well-being and mental health.

Make Friends with People Who Want the Best for You: Surrounding yourself with positive and supportive individuals can contribute to your growth and development, while toxic relationships can hinder your progress.

Compare Yourself to Who You Were Yesterday, Not to Who Someone Else Is Today: Focusing on personal progress rather than external benchmarks helps to cultivate a sense of continuous improvement and self-acceptance.

Do Not Let Your Children Do Anything That Makes You Dislike Them: Discipline and proper upbringing are essential for raising well-adjusted and responsible children.

Set Your House in Perfect Order Before You Criticize the World: Before attempting to change the world, individuals should first address their own issues and responsibilities, which leads to a sense of empowerment.

Pursue What Is Meaningful (Not What Is Expedient): Seeking meaningful goals and values, even if they require effort and sacrifice, leads to a more fulfilling and purposeful life.

Tell the Truth – or, at Least, Don’t Lie: Honesty and integrity are crucial for personal growth, healthy relationships, and contributing positively to society.

Assume That the Person You Are Listening to Might Know Something You Don’t: Practicing active listening and open-mindedness fosters understanding and effective communication.

Be Precise in Your Speech: Clear and precise communication helps avoid misunderstandings and allows for productive discussions.

Do Not Bother Children When They Are Skateboarding: Allowing children to take reasonable risks and explore their limits contributes to their personal development and resilience.

Pet a Cat When You Encounter One on the Street: Small moments of joy and connection with the present can alleviate stress and enhance your overall well-being.

12 Rules for Life offers readers a framework for leading a more purposeful and balanced life, with an emphasis on individual responsibility, self-improvement, and the cultivation of positive relationships. By following these rules, individuals can navigate the complexities of existence with greater resilience and meaning.

Pick up your copy here: https://amzn.to/3seOAz5

What I am reading this week:

I Will Teach You to Be Rich: No Guilt. No Excuses. No B.S. Just a 6-Week Program That Works (Second Edition)

From the Amazon Description:

“A unique voice on money, one singularly attuned to…his generation.” (San Francisco Chronicle)

Buy as many lattes as you want. Spend extravagantly on the things you love. Live your rich life instead of tracking every last expense with Ramit Sethi’s simple, powerful, and effective six-week program for gaining control over your finances.

This isn’t typical advice from a money expert. In this completely updated second edition, Ramit teaches you how to choose long-term investments and the right bank accounts. With his characteristic no-BS perspective, he shows how to squeeze every hidden benefit out of your credit cards. Crush debt and student loans. Learn the exact words to negotiate a raise. Set up an automatic payment system and get on with your life. Plus, new material on overcoming psychological barriers, love and money, new investments options, and real audience stories of how applying Ramit’s principles led to a rich life.

Pick up your copy here: https://amzn.to/3OC9Wy0

Hasta La Vista Baby!

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.

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