The Propeller – It’s Almost August Already? Time Flies When You’re Having Sun! – 7-28-2024

If you ever wondered why people are saying sitting is the new smoking, here’s why:

Data shows that people are sitting more now than ever before, often sitting more than 8 hours a day.

A study of nearly 800,000 people found that those who sat the most had a:

112% higher risk of diabetes

147% higher risk of heart disease

50% higher risk of death overall !!!

Studies even found strong links between too much sitting and a higher risk of anxiety and depression.

Fortunately, there’s a simple solution to combat this: Go for a 20-minute walk every day.

One study found that 20 minutes of walking improved mood, improved cholesterol levels, and lowered the risk of dying from cancer by 40% and dying from heart disease by almost 50%.

There are also a ton of benefits to getting fresh air and sunlight.

So, if you want to be happier and live longer, simply go for a light walk every day.

“You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.”
Charlie Munger

Compounding has three essential components, but most people tend to focus only on the first two:

Rate of Growth (%)
The rate of growth, often expressed as a percentage, indicates how quickly an investment increases in value over time. For instance, an investment with an annual growth rate of 10% will grow faster than one with a 5% rate. While aiming for higher growth rates is common, it’s only part of the equation. High growth rates can lead to substantial gains, but they often come with higher risks. It’s crucial to find a balance that suits your financial goals and risk tolerance.

Starting Amount
The initial sum of money you invest plays a significant role in the compounding process. A larger starting amount can generate more significant returns over time, even if the growth rate is modest. Conversely, starting with a smaller amount requires a higher growth rate or a longer time horizon to achieve similar results. This component emphasizes the importance of saving and investing early and consistently.

Length of Runway (Patience)
The length of time you allow your investments to grow is perhaps the most overlooked yet crucial element of compounding. Having a long runway means being patient and letting your investments mature over decades. The power of compounding increases exponentially with time. The longer you let your investments grow, the more significant the impact of compounding becomes, leading to substantial wealth accumulation.

Warren Buffett and Charlie Munger exemplify the power of the third component—time. While they achieved an impressive annual growth rate of around 20%, it was their patience and long-term perspective that truly set them apart. They maintained this rate for over 50 years, which is a testament to the power of a long runway.

As Morgan Housel aptly put it: “His skill is investing, but his secret is time.” This highlights that while Buffett’s investment acumen is undeniably exceptional, the true secret to his immense wealth lies in the duration of his investment journey.

An astonishing 99% of Warren Buffett’s net worth was accumulated after he turned 65. This fact underscores the incredible impact of compounding over an extended period. It’s a compelling reminder that time in the market can be more critical than timing the market.

Index Fund Investing
Warren Buffett often advocates for index fund investing, especially for the average investor. Index funds are designed to track the performance of a specific market index, like the S&P 500. They offer broad market exposure, low operating expenses, and low portfolio turnover. By investing in index funds, investors can achieve a rate of growth that mirrors the overall market, which historically averages around 7 to 10+ Percent annually after inflation.

Buffett’s endorsement of index funds is based on their simplicity and effectiveness. They eliminate the need to pick individual stocks and the risk of underperforming the market. For most investors, consistently investing in low-cost index funds and allowing them to compound over a long runway is a reliable strategy to build substantial wealth.

While the rate of growth and the starting amount are important, the length of the runway—patience and time—is what amplifies the power of compounding. Following Buffett’s advice on index fund investing can provide most investors with a straightforward and effective path to financial success.

In an era where technology continues to revolutionize our daily lives, home security is no exception. One of the most transformative advancements in this space is the smart lock. These innovative devices offer a seamless blend of convenience, security, and modernity, making them an increasingly popular choice for homeowners. Let’s explore the key benefits of using smart locks on your home.

1. Enhanced Security

Smart locks provide robust security features that go beyond traditional locks. Many smart locks offer advanced encryption and two-factor authentication, ensuring that only authorized individuals can access your home. Additionally, you can monitor access in real-time, receiving notifications whenever someone enters or exits, providing peace of mind whether you’re at home or away.

2. Convenience and Accessibility

Gone are the days of fumbling for keys. With smart locks, you can unlock your door using your smartphone, a key fob, or even a fingerprint. This convenience is especially beneficial when your hands are full or when you have guests arriving. You can also grant temporary access to family, friends, or service providers without needing to physically hand over a key.

3. Remote Control

One of the standout features of smart locks is the ability to control them remotely. Whether you’re at work, on vacation, or simply running errands, you can lock or unlock your door from anywhere using a mobile app. This remote functionality ensures that you never have to worry about whether you remembered to lock the door and allows you to let people in without having to give them a key ahead of time.

4. Integration with Smart Home Systems

Smart locks seamlessly integrate with other smart home devices, creating a cohesive and intelligent home environment. For instance, you can set up routines where your door locks automatically at a certain time or when you leave the house. Integration with voice assistants like Amazon Alexa or Google Assistant allows for hands-free control, adding another layer of convenience.

5. Activity Logs and Alerts

Keeping track of who enters and exits your home is effortless with smart locks. Most models offer activity logs that record every access event, providing valuable insights into your home’s security. You can also set up custom alerts to notify you of specific activities, such as a door being left unlocked for an extended period.

6. Customizable Access

Smart locks offer unparalleled flexibility in managing access to your home. You can create unique access codes for different individuals and specify when those codes are valid. This feature is perfect for short-term rental properties, where you can provide guests with a code that only works during their stay.

Smart locks are a smart investment for any homeowner looking to enhance security, convenience, and connectivity. As technology continues to evolve, the integration of smart devices in our homes becomes increasingly beneficial, offering us greater control and peace of mind. Embrace the future of home security with a smart lock, and experience the multitude of advantages it brings to your daily life.

“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent.”
— Calvin Coolidge

Persistence is the bedrock of achievement. When we persist, we transform obstacles into stepping stones and setbacks into comebacks.

Imagine if we gave up at the first sign of difficulty. We would never discover the depths of our resilience or the heights of our potential.

Consider the power of persistence:

• You overcome seemingly insurmountable challenges, proving that determination can conquer all

• You learn from failures and setbacks, using them as fuel to propel you forward

• You inspire others with your unwavering commitment, even when the path is unclear or arduous

Persistence turns dreams into reality.

Best wishes as we dive into August—where the weather is hot, and the days feel like they’re on fast-forward!

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.