32 Comments
Inline Feedbacks
View all comments
Jake
Jake
11 years ago

Rich Dad Poor Dad – work to learn not to earn I think is what you’re referencing at the beginning of the episode.

Eaglesteel
Eaglesteel
11 years ago

My uncle that passed away last Friday at the age of 71 was proof that you don’t have to have a degree to become successful. He first worked at a gas station when he was a teen. He learned how to do auto body work while being employed at the station. He eventual started his own auto body shop while still working at the gas station. Once he was able to leave the gas station and focus on the Auto body shop he started to buy rental homes. By the time he was 50 he closed his auto body shop and kept buying and fixing up rental homes. My uncle had a 6th grade education and became a millionaire. The thing he had that majority of young folks don’t is work ethic! He could buy whatever he wanted to because he earned it! Kids today want whatever they want but don’t want to work for it and earn it.

Jake
Jake
11 years ago

The formula should be 10 * age / (average income over lifetime)…. because otherwise I’m 23, just got a 50k a year job last year and I should have 115k net worth….

Rick
Rick
11 years ago

I believe Liberal Arts is the degree your were trying to reference.

smokinwill
smokinwill
11 years ago

If you go to Sanibel you should come off island to meet some local listeners. That and there’s some good fishing spots off island as well.

Ronnie in Iowa
Ronnie in Iowa
11 years ago

SUPERIOR show! I sent it off to my (at present loser assclown) grandson in hopes he will listen, learn and not mess his entire life up.

frost91750
frost91750
11 years ago

People chasing dollar denominated returns in a permanently contracting economy (peak oil and energy return on energy invested) with a permanently expanding monetary supply (indefinite quantitative easing) are going to be disappointed.

frost91750
frost91750
11 years ago

I hope you’re right … but oil at one point yielded an Energy Return On Energy Invested of 100:1. Now, it yields maybe 20:1, and we’re developing tar sands at an Energy Return On Energy Invested of 5:1. So, we’re not exactly harvesting the low hanging fruit on the tree.

The New Mike
The New Mike
11 years ago

@Jack
I read the article and in my opinion its full of a lot of holes. The graph he shows at the bottom is eye rolling at best. A comparison of 100+ years of oil production down to a single decade graph? No thanks.

There are some decent points in the article, but my mind the best way to view this is the Chris Martensen approach. Exponential curves. Exponential growth of consumption (tomorrow is faster than today’s). The amount of oil that has to be pulled out has to increase as fast or faster than growth. Also Chris Martensen clearly points out something you’ve stated. Is peak oil real? Of course it is. Is it right now? Who knows, but it may or may not effect us right now or in some decades to come, and its likely not going to be we hit it and its a free fall cliff. Chris martensen completely avoids the entire topic of “are we in peak oil right now this very minute” by going, that’s for academia, and isn’t really that relevant.

In general i think permaculture and survival and just good living practices just kind of solves this issue and makes it more of a non issue. Even more so I think a revisit of our view of our neighbors, community and our place should fix alot of this. I read an article by Mish Shedlock today that I just completely disagree with. Everything in life, to include purchasing, doesn’t boil down to a dollar price. In fact in a lot of ways that is some serious sources of our problems. The continued devaluation of quality human labor via hyper-efficient oil ran robots. They sure can put out a shit load of hoes and shovels, but none of them are worth a shit.

By the way jack, your off hand recommendation in one video of the rogue hoe, says to me you should get back to making a few quick videos on products you recommend. I bought that same rogue hoe, and shit is that not a damn good product. Also have a serrated “sickle” coming my way for buckwheat harvesting.

The New Mike
The New Mike
11 years ago
Reply to  The New Mike

@Jack part 2

Just came across this article to bolster your opinon on NatGas.
http://www.cnbc.com/id/100796328?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=100796328|Start%20Your%20Engines:%20NatGa

I personally disagree with the idea we’ll have emmense amount of production and wealth due to natgas supplies. For those who are in the business, yeah they’re probably going to do EXTREMELY well. But for those uninvolved no so much. I also am skeptical of the natgas car because the amount of capital required to put in the consumer level infrastructure (shifting gears with car factories, gas stations) and the amount of time needed for people to make the transition. (I can tell you personally i’m not buying another car unless i absolutely have to and its kind of already looking like the cheap credit bubble in cars is probably going to pop soon anyways).

While I can fully and completely see the economic boom argument for nat/gas I think global headwinds are likely to just make it more of a bad timing situation for any soon to be positive effects as a whole. Industry is definitely starting to use more nat gas, but they have to make stuff for people to consume. People need money (or cheap credit by those willing to give it to them, and those willing to take on credit) in order to buy consumptive goods. The headwinds in the global economy are basically indicating that industrial level goods are about crash. (Yay for copper/lead prices).

Keep making the argument and presenting more info as you get it because I’m of course always looking for contrarian arguments to mine.

TheBuddhist
TheBuddhist
11 years ago

Couple other options for college investing that never seem to be mentioned, yet are gaining in popularity.

Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA). The best alternative to the 529 plans that Uncle Scam pushes. Act more like a Roth-IRA: more investment options depending on where you open the account. We have our son’s through our credit union: stocks, bonds, mutual funds, it is all available for investment.

Depending on the plan, the money is released to the child from age 18 to 21. All money is put in after tax, however, the money can be used for ANYTING. I am in it more for the fact that I have multiple options for investment.

Just my 2 cents of info.

Scott Painter
11 years ago

My daughter will hate this savings idea but we as parents love it. She is 9 and broke again within a week of receiving birthday or other money. She’s a bright kid in gifted who will probably qualify for scholarships but that doesn’t she couldn’t learn a lesson on money management. My wife and I finished college with a grand total of $4000 in student debt between the 2 of us.

Brent Eamer
Brent Eamer
11 years ago

Jack, the problem with the abundance of Natural Gas is that it is shale gas, ie) unconventional. The drop off rates are 50% in the first two years. The need to drill thousands of them to keep up. The proverbial Alice in wonderland running faster and faster to stay in the same spot. The shale gas is a bubble

Brent Eamer
Brent Eamer
11 years ago

Understood Jack. I was listening to the guys up here talking about the Fredrick Brook Shale in New Brunswick and how many wells they have to drill to get the equivalent flow rates. I am all for energy independence for both our countries, I just hope the media temper the enthusiasm and understand this is not conventional gas. Fracking costs more. James Howard Kunster interviewed a geologist that pretty well said the same thing.

http://kunstlercast.com/shows/kunstlercast-224-jhk-chats-with-independent-energy-analyst-bill-powers.html

I know you and James disagree on some points. I am learning about this as I go, since I am invested in CDH (Corridor Resources). Which is trying to get a JV for Shale Gas up in New Brunswick. They claim 60TCF in ground, with 15% recoverable. Fascinating to see the technology mature as well. Excellent Episode by the way

Brent Eamer
Brent Eamer
11 years ago

The end game is that the easy fruit is gone. We may have lots of NG but where is the capital to get it out? I think we hit the wall sooner. Obama Keystone shutdown, U.S refusing Alberta oil sands. So now the U.S has to rely on domestic production of energy; which I think is pie in the sky. They just announced a huge LNG export facility in Guysborough Nova Scotia, This facility will export gas to Europe and India. My point is “We dont’ have as much Natural Gas, at an affordable price as we think”

blueyedmule
blueyedmule
11 years ago

Jack, wondering if you have had a chance to look more into Harry Brown’s investment thinking (show 1070)? And if so how it fits with this.

Derek M
11 years ago

Hi Jack,
Do you recommend any books (and/or other episodes) for those looking to wise up on investing? I’ve adopted Ramsey’s debt snowball approach to reduce my debt, and we’re almost at the point where we can start investing. I’ve put the Millionaire Next Door and Rich Dad, Poor Dad on the list. Anything else that should be required/recommended reading?
Thanks,
-D

Matt
Matt
11 years ago

Fantastic episode! I John has a lot of great information.

I read The Millionaire Next Door about 5 years ago, and unfortunately my wonderful Father-in-law passed away about a month ago. I found out a few days after his passing he was “that” millionaire next door and then some. In retrospect it’s amazing to see what can be done through disciplined savings, not being “flashy”, and very hard work.

I’ll have to listen to this episode again so I can fully digest it and take action. My wife and I already have plenty in savings/cash in case I get laid off, and that was hard considering I do very well but work/commute to a pricey area and she stays home. We only have the house and a few months on my car payment left re debt. (We’ll see what happens in a few years when the kids start prepping for college.) Yet listening to this and the recent events in my family’s lives makes me realize how much I still have to learn and what I have to aspire to.

Thank you very much for this one Jack.

Matt

Lucas
Lucas
11 years ago

Lightbulb moment happened listening to this show. I’ve been contemplating getting into some contract work on the side, and I started thinking what else that could turn into and lead to. This show helped me make a decision to make a change and start moving in the right direction. Thanks Jack and John!

Adam
Adam
11 years ago

Out of curiosity, what’s the basis of your issue with Porter? I haven’t bought any products but I generally enjoy his podcast. Decent market info with a libertarian bent I usually agree with.

Adam
Adam
11 years ago

I don’t disagree with that. His marketing has a lot of hyperbole and is a more than a bit shady. I do enjoy the podcast though both for his current market commentary and his guests. I think you’d be surprised by the list. It’s a lot of people you respect.

Lily
Lily
11 years ago

I second the motion that the formula for net worth may be wrong or I’m thinking about it wrong. Would net worth include what is already invested in your house or not.