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279. The Groovy Guide to Financial Independence: How to Escape the Tyranny of Mandatory Toil in Fourteen Years or Less

Rating:  ☆☆☆1/2

Recommended by:

Author:   Mr. Groovy

Genre:  Non Fiction, Personal Finance, Economics, Self Improvement, Politics, Public Policy

448 pages, published January 23, 2018

Reading Format:  e-Book on Kindle

Summary

Summary:   The Groovy Guide to Financial Independence is part memoir, part instruction manual, part freedomnista manifesto on how to retire early, indeed on how to retire in 14 years or less.  It is written by “Mr. Groovy,” a libertarian early retiree who blogs at freedomisgroovy.com.   Mr. Groovy is not a fan of the government (and explains their failings in detail) and is not a fan of having a job (and explains in straightforward terms how to retire early).  He also includes advice on how to improve parts of your life outside of finances, including your health and fitness.  The topics in his book include the following:

 

  • Financial moronity is very likely the only thing separating you from building wealth.
  • Good financial habits or GFHs are the key to curing financial moronity.
  • Honor begets tremendous financial dividends.
  • Why you don’t want to be a “teat-sucking layabout.”
  • How to become a personal responsibility warrior or PRW.
  • Why it’s damn near impossible to out-exercise an undisciplined mouth.
  • Why it’s damn near impossible to out-earn an undisciplined wallet.
  • Why Hannibal Lecter is the most unappreciated financial guru of our time.
  • How mastering the art of strategic ignorance, strategic aloofness, and strategic participation is the key to subduing your materialistic impulses.
  • Why you should get married if you aren’t already.
  • Why college is one of the biggest scams ever perpetrated against the American public.
  • How to become an opportunity monger.
  • How to track your spending with Google Sheets.
  • How anyone armed with a tracking spreadsheet and a functioning brain can reduce his or her spending.
  • Why you should strive to be half normal in the consumer arena.
  • What is a Financial HAL and why it’s indispensable to financial independence.
  • What is asset allocation and how you tweak it for bigger returns or less volatility.
  • Why a $5,000 emergency fund is sufficient for most people.
  • What is false wealth and why it should keep you up at night.
  • How medical tourism can save you from the ravenous maw of the healthcare-industrial complex.
  • How the four-percent rule begat the twenty-five times rule.
  • How the twenty-five times rule became the default understanding of financial independence.
  • How to hack your way to a 50 percent savings rate or better with geoarbitrage, spatial arbitrage, or egotrage.
  • Why creating, building, fixing, or cleaning something is key to finding happiness after your money woes have been addressed.
  • What Big Freedoms and Little Freedoms have to do with personal finance.
  • Finally, why curing your financial moronity and achieving financial independence in a country with half-assed freedom are hollow victories.

Mr. Groovy, the Author, didn’t achieve financial independence because of any special circumstances.  He was a C student in high school, a C student in college, and the most he ever made in a year was $76,000 (way back in 2005). His journey was the result of dropping bad financial habits and embracing good financial habits.  A strategy anyone can master.

Summary

After enjoying the freedomisgroovy blog for several years, I was interested in reading Mr. Groovy’s take on financial independence and other topics.  He has a light, fun writing style which allowed me to breeze through his book.  As a fellow libertarian, I found myself agreeing with him on most of the topics he addresses, especially the importance of not relying on the government to rescue you.  His financial advice is also spot on and a great guide (along with JL Collins’ The Simple Path to Wealth) for young people just starting out.  I will be recommending it to my kids.

 

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Red Notice: A True Story of High Finance, Murder, and One Man’s Fight for Justice

Rating:  ☆☆☆☆

Recommended by:  Katy Fassett

Author:  Bill Browder

Genre:  Non-Fiction, Memoir, History, Foreign, Politics, Business

380 pages, published February 3, 2015

Reading Format:  Audio Book

 

Summary

Red Notice is a real-life political thriller memoir written by American businessman Bill Browder who made multi-millions investing in Russia in the early days after the Berlin Wall came down.  After the Russians started to target Browder and his Hermitage Fund, his attorney Sergei Magnitsky was ruthlessly jailed and murdered by the Kremlin.  Browder then led an effort to expose the corruption inside Russia and obtain justice for Sergei.

 

Quotes 

“Seventy years of communism had destroyed the work ethic of an entire nation. Millions of Russians had been sent to the gulags for showing the slightest hint of personal initiative. The Soviets severely penalized independent thinkers, so the natural self-preservation reaction was to do as little as possible and hope that nobody would notice you.”

 

“I arrived in the late afternoon at Saint Petersburg’s Pulkovo Airport. I stared out of my window as the plane taxied to the terminal and was astonished to see the burned-out carcass of an Aeroflot passenger plane lying on the side of the runway. I had no idea how it had gotten there. Apparently it was too much of a bother for the airport authorities to have it moved. Welcome to Russia.”

 

“There’s a famous Russian proverb about this type of behavior. One day, a poor villager happens upon a magic talking fish that is ready to grant him a single wish. Overjoyed, the villager weighs his options: “Maybe a castle? Or even better—a thousand bars of gold? Why not a ship to sail the world?” As the villager is about to make his decision, the fish interrupts him to say that there is one important caveat: whatever the villager gets, his neighbor will receive two of the same. Without skipping a beat, the villager says, “In that case, please poke one of my eyes out.”

 

“After Khodorkovsky was found guilty, most of Russia’s oligarchs went one by one to Putin and said, ‘Vladimir Vladimirovich, what can I do to make sure I won’t end up sitting in a cage?’ I wasn’t there, so I’m only speculating, but I imagine Putin’s response was something like this: ‘Fifty per cent.”

 

“The imagination is a horrible thing when it’s preoccupied with exactly how someone might try to kill you.”

 

“This whole exercise was teaching me that Russian business culture is closer to that of a prison yard than anything else. In prison, all you have is your reputation. Your position is hard-earned and it is not relinquished easily. When someone is crossing the yard coming for you, you cannot stand idly by. You have to kill him before he kills you. If you don’t, and if you manage to survive the attack, you’ll be deemed weak and before you know it, you will have lost your respect and become someone’s bitch. This is the calculus that every oligarch and every Russian politician goes through every day.”

 

“While Putin expected a bad reaction from the United States, he had no idea what kind of hornet’s nest he’d stirred up in his own country. One can criticize Russians for many things, but their love of children isn’t one of them. Russia is one of the only countries in the world where you can take a screaming child into a fancy restaurant and no one will give you a second look. Russians simply adore children.”

 

“Early in this book, I said that the feeling I got from buying a Polish stock that went up ten times was the best thing to ever happen to me in my career. But the feeling I had on that balcony in Brussels with Sergei’s widow and son, as we watched the largest lawmaking body in Europe recognize and condemn the injustices suffered by Sergei and his family, felt orders of magnitude better than any financial success I’ve ever had. If finding a ten bagger in the stock market was a highlight of my life before, there is no feeling as satisfying as getting some measure of justice in a highly unjust world.”

 

“This was not what they wanted to hear because ever since Barack Obama had become president in 2009, the main policy of the US government toward Russia had been one of appeasement.”

 

My Take

Author Bill Browder knows how to tell a compelling tale and I thoroughly enjoyed listening to the audio version of Red Notice.  The first half of the book takes you through his interesting childhood.  His Grandfather ran for President of the United States representing the Communist Party and his parents were both Socialists.  Browder rebelled by going into business with the aim of making as much money as possible.  He was able to do this by capitalizing on unique opportunities in Eastern Europe and then Russia.  During the second half of the book, the Russian government turned on Browder and killed his attorney, the idealistic Sergei Magnitsky.  Browder then recounts his pursuit of justice against Vladimir Putin and his henchmen in honor of Sergei.  A captivating read from start to finish.

 

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223. Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa

Rating:  ☆☆☆

Recommended by:   Dennis Prager

Author:  Dambisa Moyo

Genre:  Non-Fiction, Economics, Public Policy, Politics, Foreign

208 pages, published March 17, 2009

Reading Format:  Book

 

Summary

In the past fifty years, the rich countries of the world have spent more than $1 trillion in development-related aid in Africa.  Shockingly, all of this money has not improved the lives of Africans.  Instead, things of gotten worse.  In Dead Aid, economist Dambisa Moyo seeks to explain how this happened and what can be done to improve the lives of ordinary Africans.  Moyo draws a sharp contrast between African countries that have rejected foreign aid and prospered and others that have become aid-dependent and seen poverty increase.  She explains how overreliance on aid has trapped developing nations in a vicious circle of aid dependency, corruption, market distortion, and further poverty, leaving them with nothing but the need for more aid.

 

Quotes 

“In a perfect world, what poor countries at the lowest rungs of economic development need is not a multi-party democracy, but in fact a decisive benevolent dictator to push through the reforms required to get the economy moving (unfortunately, too often countries end up with more dictator and less benevolence).”

 

“In 2004, the British envoy to Kenya, Sir Edward Clay, complained about rampant corruption in the country, commenting that Kenya’s corrupt ministers were ‘eating like gluttons’ and vomiting on the shoes of the foreign donors.”

 

“Africa is addicted to aid. For the past sixty years it has been fed aid. Like any addict it needs and depends on its regular fix, finding it hard, if not impossible, to contemplate existence in an aid-less world. In Africa, the West has found its perfect client to deal to.”

 

“What is clear is that democracy is not the prerequisite for economic growth that aid proponents maintain. On the contrary, it is economic growth that is a prerequisite for democracy; and the one thing economic growth does not need is aid.”

 

“It is worth pointing out that there has been some notable success with a concept known as ‘conditional cash transfers’; these are cash payments (in a sense, bonuses) made to give the poor an incentive to perform tasks that could help them escape poverty (for example, good school attendance, working a certain number of hours, improving test scores, seeing a doctor). The idea of conditional cash transfers has met with much success in developing countries such as Brazil, Mexico, Nicaragua and Peru (a similar programme is now being tested in the boroughs of New York City).”

 

My Take

While economist Dambisa Moyo posits an interesting idea that less foreign aid is the key to solving Africa’s poverty issues, her book Dead Aid reads a bit like a master’s thesis.  It was interesting at times, but also a bit boring at other times.  I particularly enjoyed her discussion of micro-lending as part of the solution for Africa.  I was also fascinated to read how much China is investing in Africa, something I was vaguely aware of, and how the future of the continent is likely to be Chinese.

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219. Republican Like Me: A Lifelong Democrat’s Journey Across the Aisle

Rating:  ☆☆☆1/2

Recommended by:  Mike Brady

Author:  Ken Stern

Genre:  Non-Fiction, Politics, Public Policy

288 pages, published October 24, 2017

Reading Format:  Book

 

Summary

In Republican Like Me, Ken Stern, a former CEO of National Public Radio and card carrying Liberal, takes a year to  crisscross the country in an attempt to better understand what makes  Republicans tick.  He spent a good deal of time listening, talking, and praying with Republicans from all corners, neocons to traditionalists, fiscal conservatives to social conservatives, moderates to libertarians.  He considers the issues that divide and provoke the left and right:  immigration, gun control, abortion, the environment and global warming, elitism and the establishment, the government, the “makers” and the “takers,” and attitudes toward gender and race.  He introduces the people he met and the viewpoints and opinions he heard, and examines their impact on his own long-standing views.

 

Quotes 

 

 

My Take

Many Americans are still wondering how Donald Trump was elected President.  Much like J.V. Vance in Hillbilly Elegy (which I really enjoyed), Ken Stern, the author of Republican Like Me has some answers.  Stern (a lifelong committed Democrat) looks at political issues from a Republican viewpoint and discovers that they have some good points and things are not as clear cut as he had always assumed.  He also takes on the left-wing media bias that infects our newspapers and newsrooms.  If you are interested in understanding why our country is so polarized and what can be done about it, I recommend checking out this interesting book.

 

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