All or None

No, the world is not going to end.  In this all or none era, we tend to forget that there are shades of gray.  We no longer recognize that perfect can be the enemy of good, and that longevity is a better indicator of success than skill.  We bounce from anxiety to elation without leaving much space in between.  This is an exhausting roller coaster existence buoyed by the hype cycle that plays itself out on our social media streams and our favorite cable news networks.

And it’s all a bunch of hooey.  Slow and steady wins the race.  So why do we let ourselves get distracted with all this noise.

Why are we having such a hard time differentiating signal?

The Market

No, the world is not going to end.  The latest drop in the stock market is not the impending sign of the apocalypse.  No, it’s not a good time to sell, nor a good time to buy.  It is a good time to stick to your long-held financial plan that is ignorant to the ebb and flow of the ocean.  Like waves, low and high markets will crest and come crashing against the shore.

And then they dissipate.

There is only one all or none question you must ask yourself.  Do you think the market as a whole will increase? If you are a stock picker, do you think your companies have value and longevity?  If the answer is yes, then you may want to form a certain amount of market apathy.

The anxiety and anticipation are more likely dangerous to your health than any fleeting material gains or loses you will suffer from such short-term choppiness.

Career

We suffer through promotions and demotions, and celebrate raises and decry when we are passed up.  We get so caught up in the short-term minutia, we forget that ultimately it doesn’t matter.  Will your career survive the  technological revolution around us?  Are your skills in need for the long-term?

Again, the all or none lens only works when talking about overall employability.  Otherwise the details probably won’t matter.  A few percentage points up or down in salary will not send you to financial independence much faster nor make you feel more fulfilled once you get there.

Enjoy your work if you can.  It will make the journey much more pleasurable.

Real Estate

There are rules.  We have all heard of the 1% and 2% rules, and understand the math used to calculate the cap rate or cash on cash return.  We consider ourselves savvy if we find a way to fit into these narrow criteria and avoid this important asset class if we can’t.

All or none.

The truth is there are many ways to use property that don’t fit neatly into these rules.  In Chicago, I decided to buy and rent condos.  To your average investor, my numbers would look lousy, yet my properties cash flow nicely.  They form a nice barrier of diversification and hedge against the ups and down of the stock market.

Final Thoughts

I think we need to stop looking at financial success, and even life, as an all or none proposition.  It is actually in the shades of grey where I believe most of us live.  I, of all people, know this to be true.  I consider myself a seven-figure failure.

My  inefficiency shows in terms of the stock market.  I have thrown away cash by using a financial advisor.  My career has taken turns for both the better and worse.  And my real estate portfolio is nothing if not atypical.

Yet, it works for me.