Archive: Financial Planning Posts

Financial Physics – Part III

15% profitability is your breakeven Why do businesses need a profit? To stay in business! Profits are used to expand, to invest in new ideas, to replace old equipment, and to hire new employees. Businesses that succeed reinvest and reinvent themselves because the world is always changing. If they don’t adapt, the business will fail.

Financial Physics – Part II

Never pay fixed bills with variable money In the second law of financial physics, we move our discussion to the importance of understanding cash flow. In my years of advising clients, I have noticed one main difference between those that find perpetual peace and those who don’t. It all lies in how they pay their

Controlling the Uncontrollable

When you really think about it, the only thing absolutely outside of our control or influence is the weather. The weather does whatever it wants to do, whenever it wants to do it. All we can do is respond – but is this really all? In his forthcoming book entitled, “Why Not You?”, author Rich

Dallas to Flagstaff

 “What’s that noise?”   “Not sure, heard it over Dallas but then it went silent again.” Taylor and co-pilot Billy Short where headed to Flagstaff Arizona, 257 passengers on board and a plane full of fuel.  An inconvenient noise became an in-flight emergency.  “(Master Warning Chime) We have an in-flight emergency – need clearance to land

The Certainty of Uncertainty

In response to PepsiCo announcing they will cut 8,700 jobs in 2012, PepsiCo CEO Indra Nooyi said the following, “When the only certainty is uncertainty the whole guidance thing becomes a challenge.” Nooyi continued, “This will be a transitional year…anything you do in short-term just to meet short-term guidance would be detrimental to the company


Bricolage is a French word every financial planner should be familiar with. The core meaning of the word is to be creative and resourceful with whatever materials at hand regardless of their original purpose. To be able to adjust and innovate in real time. Musicians call it “playing by ear.” A chef uses bricolage in

Learning from Failure

Mike Kryzewski or Coach K is the winningest basketball coach in NCAA history, a graduate of West Point and arguably one of the smartest people in sports. Why was he so successful? He believes in failure. His philosophy was forged at West Point where you go to learn to fail in the classroom so you

Finding the Perfect Picture

My good friend Dewitt Jones, who was instrumental in helping me set the course for the book, just recently spoke at an event in Chicago. If you have not seen Dewitt speak, it is something I highly recommend. Dewitt was a photographer for National Geographic for over 30 years. In the hundreds of events he