Monday Assorted Links

1. Students’ grades determine where they eat lunch at Florida schools. While trying to process this, I was overcome by a strong desire to excise the peninsula along the Alabama-Georgia borders. Let it drift away I say.

2. Olympic marathon champ Jemima Sumgong banned four years for EPO. This is so common place, why doesn’t the Olympic Organizing Committee wait four years and distribute the awards right before the next game’s Opening Ceremony. And while we’re at it, let’s all agree to wait ten years to give wedding gifts. Make sure the relationship sticks before springing for that state-of-the-art toaster oven.

3. How to Get Entirely Tax-Free Retirement Income. An excellent explanation of why Health Savings Accounts rock.

4. When Your Shitty Health Insurance Doubles in Price.

“Remember, health insurance is not really health insurance. It’s just “large medical bill insurance” – a shaky precaution against having to pay for expensive procedures, so you can keep your investments instead of using them to pay the bills, perhaps eventually becoming poor enough that you are covered by public health insurance (Medicaid). A better name for it might be wealth insurance.”

5. Here’s why you may want to stop judging your emotions.

“. . . research from the University of California, Berkeley found that the pressure to feel upbeat can make you feel downbeat, while embracing your darker moods can actually make you feel better in the long run.

“We found that people who habitually accept their negative emotions experience fewer negative emotions, which adds up to better psychological health,” said senior author Iris Mauss.

At this point, researchers can only speculate on why accepting your joyless emotions can defuse them, like dark clouds passing swiftly in front of the sun and out of sight.

“Maybe if you have an accepting attitude toward negative emotions, you’re not giving them as much attention,” Mauss said. “And perhaps, if you’re constantly judging your emotions, the negativity can pile up.”

Don’t Just Follow The Money

Saturday night the Gal Pal and I (and Kris and Brian) went to a concert at Traditions Cafe in downtown Olympia. When we go out, we go all out, which means some grub beforehand. Traditions concert tickets are $15. I counted about 40 peeps tucked into the small cafe. So I started to do the math because I’m always doing the math, can’t help it. Actually, MaggieZ does math, I do arithmetic. $600 divided between three musicians minus one-third to the cafe (guessing) equals $400 divided between three or $133/per. Don’t forget to factor in a few CD sales, but still less than $200/per.

And yet, all three musicians, Larry in particular, performed like it was a stadium concert with 40,000 people. His technical prowess as a guitar player and singer was impressive, but not nearly as much as the profound joy he had for sharing his gifts. The intrinsic genesis of his art was a beautiful, downright spiritual thing to observe.

And it got me thinking about whether I’d share my teaching gifts with the same committed passion if I only had a few students. And how I like to be well compensated for my time. And how I want to be more like Larry when I grow up.

Fast forward a few days to a story our local on-line paper ran on a local citizen who is doing a mindfulness workshop for local educators. Interested in mindfulness, I snooped around her website only to find a “shopping” section with bullshit mindfulness products. And her teacher workshop costs twenty Tradition’s concert tickets. I don’t begrudge her the right to run a profitable business or her desire to build wealth as a young person. Also, people pay decent money for yoga classes, but the overt commercialism and explicit selling of mindfulness, not only makes me want to run the other way, but likely turns off others who could benefit greatly from it.

Granted, it’s easier to take my advice to be like Larry and not just follow the money all the time, when you have some money. But whether you do or don’t have money, nonstop selling becomes habitual, meaning the extrinsic overwhelms the intrinsic until one’s work contributes very little to the greater good.

I’ve referenced two PressingPausers—Kris and MaggieZ—whose loyalty to the humble blog I greatly appreciate, but I’m thinking about a third who shall remain nameless because that’s the way he’d want it. Check out this other article from our same local on-line paper, “Puget Sound Honor Flight Recognizes Veterans One Flight At A Time”. When I first saw it, I immediately skimmed it for my friend’s name, but somehow he didn’t make it into the article. The fact that no one is watching him get up at 4 a.m. to drive to Sea-Tac Airport monthly, or watching him sometimes accompany local veterans on the actual flights, or watching him attend board meetings, makes all those activities much more meaningful.

Larry didn’t need much if any money. All he needed was a small group of people to share with. Same with our esteemed, third PressingPauser. All he needs is an appreciative veteran or two to share with.

 

 

 

The RepubliCON Tax Plan

From Money magazine:

“According to a 2015 report from Congress’s Joint Committee on Taxation, 4,700 estate tax returns reporting tax liability were filed in 2013, out of 2.6 million total deaths in the United States. That means the estate tax hits roughly 0.2% of Americans, or 1 out of every 500 people who die.”

Paul Ryan, Kevin Brady, and company are betting that the American people are complete idiots. The midterm elections will tell us if they’re right or not.

The proposed plan is great for the five thousand Americans each year that pay up 40% in estate taxes. Nah, that understates it. The plan is fucking unbelievable for the five thousand Americans that pay up to 40% in estate taxes each year. If Frump is in fact a billionaire, when he dies his heirs will save $400m in taxes.

Social mobility in the U.S. already lags most every other developed country in the world. The elimination of the estate tax will create a large, entrenched aristocracy that will put the British to shame.

Somehow we’re supposed to believe that working families that are not invested in the stock market are going to benefit from a 15% reduction in the corporate tax rate. Trickle down my ass.

There are only two questions that matter, but they’re not ones the Republicons want asked, let alone answered:

• Can we flourish as one country given the current differences in wealth?

• Will this plan reduce the rich/poor divide?

Don’t buy the bullshit the Republicons are selling. The answers are no and hell no.

And thanks to Dan, Dan, the Transpo man for teaching me how to spell Republicon. I have mistakenly been using an “a” for many years.

Postscript: Is there a Congressional Medal for this?

 

 

What Endures?

Thomas C. Corley asks why are some people rich and some people poor? Following a five-year long research project, he concocted a supposed blueprint for becoming wealthy. Unsurprisingly, his findings have found a large audience.

Most interesting to me about his methodology is what he doesn’t do or ask. He never tells any wealthy individual’s story; consequently, they remain mythical superior beings. Corley’s work contributes to the myth that wealthy people’s lives are way better than everyone else’s. It’s as if the wealthy have no experience with negative emotions; failed relationships; existential crises; health challenges; and even death. Jeff Bezos, Bill Gates, and Warren Buffett will live forever won’t they?

People need a philosophy of wealth more than a blueprint. How much is enough? Wealth towards what ends? What endures?

 

Don’t Be Bob Marley

Approximately two-thirds of American adults do not have wills.

Hua Hsu in the New Yorker:

“When Bob Marley died, on May 11, 1981, at the age of thirty-six, he did not leave behind a will. . . . Drafting a will was probably the last thing on Marley’s mind as his body, which he had carefully maintained with long afternoons of soccer, rapidly broke down. Marley was a Rastafarian, subscribing to a millenarian, Afrocentric interpretation of Scripture that took hold in Jamaica in the nineteen-thirties. By conventional Western standards, the Rastafarian movement can seem both uncompromising (it espouses fairly conservative views on gender and requires a strict, all-natural diet) and appealingly lax (it has a communal ethos, which often involves liberal ritual use of marijuana). For Marley, dealing with his estate probably signified a surrender to the forces of Babylon, the metaphorical site of oppression and Western materialism that Rastas hope to escape. When he died, in Miami, his final words to his son Stephen were ‘Money can’t buy life.'”

That’s cool, except for the fact that he had many other children and left about $30m. . .

“No one metric captures the scale of Bob Marley’s legend except, perhaps, the impressive range of items adorned with his likeness. There are T-shirts, hats, posters, tapestries, skateboard decks, headphones, speakers, turntables, bags, watches, pipes, lighters, ashtrays, key chains, backpacks, scented candles, room mist, soap, hand cream, lip balm, body wash, coffee, dietary-supplement drinks, and cannabis (whole flower, as well as oil) that bear some official relationship with the Marley estate. There are also lava lamps, iPhone cases, mouse pads, and fragrances that do not. In 2016, Forbes calculated that Marley’s estate brought in twenty-one million dollars, making him the year’s sixth-highest-earning “dead celebrity,” and unauthorized sales of Marley music and merchandise have been estimated to generate more than half a billion dollars a year, though the estate disputes this.”

In the intervening years there have been more lawsuits than there are albums in Marley’s discography. I respect his unconventional worldview, but it’s sad that a bevy of lawyers have benefitted most from his artistic genius.

Apple, Foxconn, Wisconsin

After reading Janesville, I couldn’t help but be interested in this perfectly titled piece in The Atlantic.

Numbers to ponder:

“It has up to $3 billion in tax breaks, to be passed and provided by the state government. Those kinds of tax incentives can get a manufacturer to plant a factory in a given location—but generally at a significant cost to the state budget, and without doing much to help the economy overall.”

What does $3b mean?

“The Washington Postestimates that the breaks could cost the state as much as $230,700 per job created. Tim Culpan at Bloomberg Businessweek puts it at $1 million per job, enough to buy every man, woman, and child in Wisconsin a new iPhone.”

So the margin of error is only $770k/per job created. I recommend the rest of the succinct piece.

What to Do When Stocks are Pricey

Insightful blog post by Carl Richards titled “You’re No Coward If You’re Keeping Some Money Out of Stocks”.

What should “some” be as a percentage? Conventional investment wisdom is subtract your age from 110 or 100 and invest that much in stocks.

Better yet, think about risk like Richards:

“You see, I hate losing money in investments that are outside my control. It ties me up in knots and distracts me from just about everything. So awhile ago, when I moved some money out of a 401(k) plan into my retirement account after a job change, I left it in cash.

I told myself that I was fine with missing out if the market continued to go up. But I wasn’t fine with investing this pile of cash just in time to get my head taken off in a big, scary market drop. And guess what? That was and still is true. So, I’m fine sitting in cash earning 0.16 percent or whatever the rate might be. I just don’t want to lose.

This decision has cost me in paper gains that I might have achieved, given how well the stock market has done since that decision, but I don’t care. I don’t see it as a real cost. Instead, I see it as an investment in my sanity and my human capital.

The fact that I didn’t have to worry about losing money in that area of my life allowed me to feel comfortable taking risks in other areas. I’ve started two or three new businesses and moved my family to New Zealand. The risks I have taken have provided, and will continue to provide, a much higher return than what I might have received if I remained fully invested in the markets.”