Friday, July 17, 2009
Personal MBA Update: Work Less Live More - The New Way to Retire Early, was fairly underwhelming to say the least. For those who don't know I have been completing the Personal MBA (read the manifesto here) which is a book list dedicated to providing those who are committed to pursuing self education with a core group of books that represent many topics and concepts you would learn in an MBA program. So far I have really enjoyed every book from the list. This is the first one I haven't been too impressed with. It definitely has some good information in it, however having read many other personal finance books I found that this did little to educate or entertain me. Maybe part of that is my fault due to the numerous other books Ive read, but part of the fault lies on the book as well. I would recommend skipping this one ladies and gents. Here are the few notes I took from the book.
- "What do you want from life?" - The Tubes
- First rule of early semi retirement: figure out why you want to do this
1. Identify and honestly face up to aspects of your life that just aren't working anymore
2. Grapple with questions like: If I had all the time and money what would I do? What would it feel like? What could I become?
- "We work in order to have leisure." - Aristotle
- The importance of working together: requires buy in from spouse
- Moderation is key: you can get obsessive about saving but burnout will be waiting for you
- What do you want to make of your life when you have it back?
- Create your spending plan: 1. make it reasonable 2. make it easy to track 3. make it a group effort
- Fastweb.com & collegeanswer.com
- Rational Investing: 1. Allocate your investments 2. Rebalance your portfolio 3. Keep management fees low
- Myths: Find a hot fund manager, bonds are for wimps, all bond portfolios are all safe, good companies make good stocks, the S&P is the stock market, foreign assets are un-American
- Sandwich portfolio pg 163
- A safe withdrawal rate is about 4% a year
- Graphs showing withdrawal rates on page 190