| Sunday, 07 October 2007 | |
| Don McNay will be on Comment on Kentucky, Friday October 13. The show is broadcast live on KET-1 at 8 p.m. Eastern Standard Time and repeats at 12.30 p.m. on Sunday. You can also watch streaming video at www.ket.org, download the show to your IPOD or watch on a podcast. |
Sunday, October 7, 2007
Don McNay on Comment on Kentucky Friday October 13
Don McNay on Comment on Kentucky Friday October 13
Saturday, September 22, 2007
Lessons from Powerball Jack
Lessons from Powerball Jack
"Looking for love in all the wrong places."
- Johnny Lee
Five years after hitting the Powerball, Jack Whittaker admitted that he doesn't have any friends.
Jack doesn't have a lot going for him. He has run through millions of dollars, been involved in over 450 legal actions, had his granddaughter die of a drug overdose, had his wife file for divorce, and has been a public embarrassment.
It took years of blowing money on booze and strippers, but Jack seems to be wising up.
I read an interview where he offers other lottery winners some sound advice.
Jack's best tip was to not start giving money away. "The more you give away," he said, "the more they want you to give. And once you start giving it away, everyone labels you an easy touch and they are right there after you."
Jack found out that money can't buy you love.
People come into money unexpectedly and think their newfound money will buy them respect.
Instead, it buys them a lack of respect. A person with a soft touch is seen as a "mark" by con artists or "friends" with an entitlement mentality.
Those wanting handouts try to befriend the Jack Whitaker's of the world. They figure a guy like Jack won't miss a million dollars or so.
People who didn't like you before you had money won't suddenly start to like you when you are rich. They may like your checkbook, but they don't like you.
At some level, Jack figured it out early on. He walked into strip clubs with hundreds of thousands of dollars. The strippers may have appealed to various parts of Jack's anatomy, but they were only concerned with Jack's wallet. Jack knew their motives, but he didn't care.
Now, the money is gone and so are his fast money "friends." I hope Jack enjoyed it but it doesn't sound like he did.
Jack understands that he screwed up big time stating, "I'm only going to be remembered as that lunatic who won the lottery."
He is absolutely right.
He set up the Jack Whittaker Foundation, which built churches and gave out college scholarships. He made a positive impact on a lot of people, but no one is going to remember that. They are only going to remember all his screw ups.
If Jack had been smart, he would have given a big, tax-deductible, chunk of money to the foundation. Then he could have told all the beggars and borrowers wanting money that they needed to qualify for a foundation grant. The foundation would have decided which cause was worthy and which was not.
I doubt that strippers would be on the list.
If Jack's friends needed to borrow money that is what banks are for. Every city has one. Banks understand the criteria for making a loan and the likelihood of it being paid back.
Banks know a lot more about lending than individual people do. When people ask me for a loan or try to borrow money from my clients, I send them to a bank. Banks are in the lending business and I am not.
When Jack became the personal banker for his friends, he lost his money and his friends.
I understand why people give money to friends and relatives. They love the people and want to help them.
They are using the wrong device to show love.
There is a scene in the movie, Oh God, where a televangelist told his flock, "I want to talk about the kind of love where you reach down in your pocket and dig DEEP!"
Like the movie character, too many people equate love with receiving gifts and too many people equate showing love with how much money they spend.
Powerball Jack learned about love the hard way. Before he won the lottery, he had a wife and a granddaughter. His wife left and his granddaughter is dead. As Jack admitted, none of his "friends" from the strip club are hanging around anymore.
He learned that by looking for love in all the wrong places, he lost the real love he had at home.
He has gotten the message but at a terrible cost.
Story Behind the Song
"Looking for Love" was the biggest hit from the Urban Cowboy soundtrack. It was one of the best movie soundtracks ever recorded. Ironically, it was for a terrible movie that almost destroyed John Travolta's career.
Although Debra Winger was incredible and the movie made her a huge star, Travolta, was terribly miscast in a part that originally was supposed to go to Dennis Quaid.
I am a huge John Travolta fan and have seen Saturday Night Fever over 40 times. I can't make it through Urban Cowboy. Mike Behler, my college roommate, described it as "Vinnie Barbareno goes to Texas" and Mike hit it right on the head.
"Looking for Love" made Johnny Lee a brief star and is one of those songs you either love or really hate. I love it, like I do every song on the Urban Cowboy soundtrack.
The Poll
The following are the results from the last poll:
1. What is your primary source of news?
Internet - 60.0%
Newspapers - 20.0%
Radio - 13.3%
Television - 6.7%
Other - 0.0%
2. How many newspapers do you subscribe to?
None - 55.0%
Two - 25.9%
One - 14.8%
Three or more - 3.7%
This week there are two poll questions:
1. Do you loan money to your friends?
2. If you won the lottery, what percentage would you give to charity?
To vote in this week's poll follow the link below. The poll will be on the left hand side of the web page.
Weekly Poll
Don McNay is the author of Son of a Son of a Gambler: Winners, Losers, and What to Do You When You Win the Lottery. The book is available at http://sonofagambler.com/. You can write to Don at don@donmcnay.com and read other things he has written at http://donmcnay.com/. McNay's award winning syndicated column appears in over 200 publications.
"Looking for love in all the wrong places."
- Johnny Lee
Five years after hitting the Powerball, Jack Whittaker admitted that he doesn't have any friends.Jack doesn't have a lot going for him. He has run through millions of dollars, been involved in over 450 legal actions, had his granddaughter die of a drug overdose, had his wife file for divorce, and has been a public embarrassment.
It took years of blowing money on booze and strippers, but Jack seems to be wising up.
I read an interview where he offers other lottery winners some sound advice.
Jack's best tip was to not start giving money away. "The more you give away," he said, "the more they want you to give. And once you start giving it away, everyone labels you an easy touch and they are right there after you."
Jack found out that money can't buy you love.
People come into money unexpectedly and think their newfound money will buy them respect.
Instead, it buys them a lack of respect. A person with a soft touch is seen as a "mark" by con artists or "friends" with an entitlement mentality.
Those wanting handouts try to befriend the Jack Whitaker's of the world. They figure a guy like Jack won't miss a million dollars or so.
People who didn't like you before you had money won't suddenly start to like you when you are rich. They may like your checkbook, but they don't like you.
At some level, Jack figured it out early on. He walked into strip clubs with hundreds of thousands of dollars. The strippers may have appealed to various parts of Jack's anatomy, but they were only concerned with Jack's wallet. Jack knew their motives, but he didn't care.
Now, the money is gone and so are his fast money "friends." I hope Jack enjoyed it but it doesn't sound like he did.
Jack understands that he screwed up big time stating, "I'm only going to be remembered as that lunatic who won the lottery."
He is absolutely right.
He set up the Jack Whittaker Foundation, which built churches and gave out college scholarships. He made a positive impact on a lot of people, but no one is going to remember that. They are only going to remember all his screw ups.
If Jack had been smart, he would have given a big, tax-deductible, chunk of money to the foundation. Then he could have told all the beggars and borrowers wanting money that they needed to qualify for a foundation grant. The foundation would have decided which cause was worthy and which was not.
I doubt that strippers would be on the list.
If Jack's friends needed to borrow money that is what banks are for. Every city has one. Banks understand the criteria for making a loan and the likelihood of it being paid back.
Banks know a lot more about lending than individual people do. When people ask me for a loan or try to borrow money from my clients, I send them to a bank. Banks are in the lending business and I am not.
When Jack became the personal banker for his friends, he lost his money and his friends.
I understand why people give money to friends and relatives. They love the people and want to help them.
They are using the wrong device to show love.
There is a scene in the movie, Oh God, where a televangelist told his flock, "I want to talk about the kind of love where you reach down in your pocket and dig DEEP!"
Like the movie character, too many people equate love with receiving gifts and too many people equate showing love with how much money they spend.
Powerball Jack learned about love the hard way. Before he won the lottery, he had a wife and a granddaughter. His wife left and his granddaughter is dead. As Jack admitted, none of his "friends" from the strip club are hanging around anymore.
He learned that by looking for love in all the wrong places, he lost the real love he had at home.
He has gotten the message but at a terrible cost.
Story Behind the Song
"Looking for Love" was the biggest hit from the Urban Cowboy soundtrack. It was one of the best movie soundtracks ever recorded. Ironically, it was for a terrible movie that almost destroyed John Travolta's career.Although Debra Winger was incredible and the movie made her a huge star, Travolta, was terribly miscast in a part that originally was supposed to go to Dennis Quaid.
I am a huge John Travolta fan and have seen Saturday Night Fever over 40 times. I can't make it through Urban Cowboy. Mike Behler, my college roommate, described it as "Vinnie Barbareno goes to Texas" and Mike hit it right on the head.
"Looking for Love" made Johnny Lee a brief star and is one of those songs you either love or really hate. I love it, like I do every song on the Urban Cowboy soundtrack.
The Poll
The following are the results from the last poll:
1. What is your primary source of news?
Internet - 60.0%
Newspapers - 20.0%
Radio - 13.3%
Television - 6.7%
Other - 0.0%
2. How many newspapers do you subscribe to?
None - 55.0%
Two - 25.9%
One - 14.8%
Three or more - 3.7%
This week there are two poll questions:
1. Do you loan money to your friends?
2. If you won the lottery, what percentage would you give to charity?
To vote in this week's poll follow the link below. The poll will be on the left hand side of the web page.
Weekly Poll
Don McNay is the author of Son of a Son of a Gambler: Winners, Losers, and What to Do You When You Win the Lottery. The book is available at http://sonofagambler.com/. You can write to Don at don@donmcnay.com and read other things he has written at http://donmcnay.com/. McNay's award winning syndicated column appears in over 200 publications.
My 25th Anniversary: Reflections on 25 Years in the Financial World
McNay on Money
My 25th Anniversary: Reflections on 25 Years in the Financial World
"For 25 years of touring, we remained partners, brothers, and friends. We keep it together because we think we could be big time before it all ends."
-Nitty Gritty Dirt Band
September 22nd marks the 25th anniversary of the day I joined the financial business. I was 23, right out of grad school at Vanderbilt, after a stop on the clean up crew at the Kentucky horse park.
The Dow Jones average was hovering around 1000, interest rates were in the double digits and we were in the midst of a horrible recession. Tax rates had approached 70% for some people.
Almost everyone told me it was a terrible time to get into the financial business. They were wrong. I started at the bottom and rode the wave upward.
My first clients, the few who would talk to a 23-year-old with no experience, did incredibly well as the economy improved and more opportunities became available.
It has been a very good run.
The defining moment of those 25 years was the 1987 stock market crash.
I had about 400 clients on Black Monday. I talked to almost every one that day and only four pulled their money out of the market. They got burned. The rest did extremely well and many are still clients today.
Although the stock market crashed in 1987, the bond market went dramatically up on the same day. People in fixed investments, like annuities or certificates of deposit, remained fixed. They did not lose any money or any sleep.
The 1987 meltdown was a great lesson. My clients learned to stay calm during fear and irrational panic. They learned the value of being diversified in the first place.
It was harder to communicate in 1987. We did not have email or the Internet. Only a few people had fax machines. I got my immediate news from cable television. I watched FNN, a forerunner to CNBC and Moneyline, with Lou Dobbs on CNN.
Many people did not know about the drop in the stock market until they read the newspaper the next day.
Today, very few daily newspapers carry stock market quotes. It is easier to track investments on the Internet.
This week, when the Federal Reserve got in touch with the real world and cut interest rates, the announcement made it around the world in seconds and the Dow Jones average immediately jumped over 300 points. If Bernanke and his crew had done something stupid, which had previously been their pattern, stocks would have dropped in that same warp speed.
The key to doing well in a rapidly changing world is having clear goals and sticking to them. I've been reading a tremendous book called Poker Nation and it had an interesting point. The key to success in gambling is the same key in money management. You have to ignore the ups and downs of each day and look at the long term trend.
Casinos keep making money as they know the long term trend favors them. Individual investors do well when they stay focused on the long term too.
Like the song says, if you keep it together, you might be big time before it all ends.
Like the Nitty Gritty Dirt Band, I plan on being big time and will give you another report at the end of the next 25-year run.
"For 25 years of touring, we remained partners, brothers, and friends. We keep it together because we think we could be big time before it all ends."
-Nitty Gritty Dirt Band
September 22nd marks the 25th anniversary of the day I joined the financial business. I was 23, right out of grad school at Vanderbilt, after a stop on the clean up crew at the Kentucky horse park.The Dow Jones average was hovering around 1000, interest rates were in the double digits and we were in the midst of a horrible recession. Tax rates had approached 70% for some people.
Almost everyone told me it was a terrible time to get into the financial business. They were wrong. I started at the bottom and rode the wave upward.
My first clients, the few who would talk to a 23-year-old with no experience, did incredibly well as the economy improved and more opportunities became available.
It has been a very good run.
The defining moment of those 25 years was the 1987 stock market crash.
I had about 400 clients on Black Monday. I talked to almost every one that day and only four pulled their money out of the market. They got burned. The rest did extremely well and many are still clients today.
Although the stock market crashed in 1987, the bond market went dramatically up on the same day. People in fixed investments, like annuities or certificates of deposit, remained fixed. They did not lose any money or any sleep.
The 1987 meltdown was a great lesson. My clients learned to stay calm during fear and irrational panic. They learned the value of being diversified in the first place.
It was harder to communicate in 1987. We did not have email or the Internet. Only a few people had fax machines. I got my immediate news from cable television. I watched FNN, a forerunner to CNBC and Moneyline, with Lou Dobbs on CNN.
Many people did not know about the drop in the stock market until they read the newspaper the next day.
Today, very few daily newspapers carry stock market quotes. It is easier to track investments on the Internet.
This week, when the Federal Reserve got in touch with the real world and cut interest rates, the announcement made it around the world in seconds and the Dow Jones average immediately jumped over 300 points. If Bernanke and his crew had done something stupid, which had previously been their pattern, stocks would have dropped in that same warp speed.
The key to doing well in a rapidly changing world is having clear goals and sticking to them. I've been reading a tremendous book called Poker Nation and it had an interesting point. The key to success in gambling is the same key in money management. You have to ignore the ups and downs of each day and look at the long term trend.
Casinos keep making money as they know the long term trend favors them. Individual investors do well when they stay focused on the long term too.
Like the song says, if you keep it together, you might be big time before it all ends.
Like the Nitty Gritty Dirt Band, I plan on being big time and will give you another report at the end of the next 25-year run.
Saturday, September 15, 2007
Son of a Son of a Gambler
Son of a Son of a Gambler: Winners, Losers, and What to Do When You Win the Lottery
Published by RRP International
Advanced copies of Son of a Son of a Gambler: Winners, Losers, and What to Do When You Win the Lottery are available now. There are only a limited number of advanced copies available and orders are limited to four books per person. You will only be able to get this limited edition copy through the link below until November 1, 2007 when the book goes on sale in bookstores and everywhere else. All advanced copies are autographed and sure to be a collector's item!http://www.sonofagambler.com
Al Smith and Transitions
Al Smith and Transitions
"Keep on rockin' in the free world."
-Neil Young
Al Smith, my mentor in all aspects of life, was going through a list of things that he plans to do in the next year. He concluded by telling me, "It is better to wear out than rust out."
I don't see any signs of Al doing either. He is 80 on the calendar but 16 in his heart. I can't keep up at his pace. I don't know many people who can.
November is when Al is going to make a life change. He is ending his over 30-year career as host of Kentucky Educational Television's longest running show, Comment on Kentucky. His last show will be November 16th.
I am a frequent guest on the show and love the energy and preparation that Al brings to the production. He spends countless hours prepping guests and tracking down breaking news.
Viewers get information they cannot find elsewhere. No one can calculate the show's influence on Kentucky's history. Many a journalistic career, including mine, has been launched or enhanced by a Comment on Kentucky appearance.
I am glad that Al is leaving at the top of his game. He set his own terms and gave everyone time to prepare.
It reminds me a lot of when Johnny Carson left The Tonight Show. Carson left in good health and at the top of the ratings. He went out with class and dignity, just like Al will.
He is leaving his successor an incredibly loyal audience and a legacy. Like Jay Leno, following Carson, it could be that the transition to a different host works well, or it could be like when Louis Rukeyser left Wall Street Week and the show quickly died. The audience wanted Louis and no one else.
A lot depends on how the transfer is coordinated.
Although Al is normally the teacher and me the student, the transition of Comment is a situation where I can provide my mentor with advice.
I have had my own business transition.
Exactly twenty-five years ago, I started in the financial planning industry. Shortly after, I started my own business focused around my persona and image. My name, picture, and penguin mascot are on everything.
Just like Donald Trump, Charles Schwab, or Oprah, the business was based around one personality. A lot like Comment on Kentucky is.
Last year, we made a change in how we manage the business. I see more clients than I ever did but I don't run business operations. I spend more time writing and doing research.
It took some adjustment but the business has prospered and has had record growth.
I had advantages that Al doesn't. I got to pick my successors and he does not. Each member of my senior management team had over a decade of experience with the company and literally "grew up" with the business.
I assume the next Comment host will be a veteran journalist who has frequently appeared on the show. It would be a gamble to make a format change or bring in an outside host. Katie Couric's failed attempt to revamp the CBS Evening News proved that news audiences don't want a lot of change.
Al has never shied away from taking a stand. Even though the show is on public television, Al has always pointed out the failings of office holders and his audience appreciates his candor. A host that tries to "water down" the show to please politicians will find audiences quickly tuning out.
A guy who won't be tuning out is Al Smith. On or off the air, he will be as busy as ever. I pointed out to Al that based on his health, energy, and family history, he could easily be active for another twenty years. Until I recently made some weight and lifestyle changes, he had a longer life expectancy than I do, despite his 32-year head start.
When Al made his "better to wear out than rust out" statement, I thought of Neil Young's line, "better to burn out than it is to rust." I don't see Al burning out or rusting.
He will be rocking in the free world for a long time to come.
The Poll
The following are the results from the last poll:
1. Have you ever invited a neighbor to share a holiday with you?
Yes - 56.5%
No - 43.5%
2. What is your favorite holiday?
Other - 28.6%
Christmas - 25.0%
Thanksgiving - 25.0%
Fourth of July - 21.4%
This week there are two poll questions:
1. What is your primary source of news?
2. How many newspapers do you subscribe to?
To vote in this week's poll follow the link below. The poll will be on the left hand side of the web page.
http://www.donmcnay.com/
Don McNay is Chairman of the Board at McNay Settlement Group and author of Son of a Son of a Gambler, Winners, Losers, and What to Do When You Win The Lottery, which is available at http://www.sonofagambler.com. You can write to him at don@donmcnay.com or read other things he has written at http://www.donmcnay.com.
"Keep on rockin' in the free world."
-Neil Young
Al Smith, my mentor in all aspects of life, was going through a list of things that he plans to do in the next year. He concluded by telling me, "It is better to wear out than rust out."I don't see any signs of Al doing either. He is 80 on the calendar but 16 in his heart. I can't keep up at his pace. I don't know many people who can.
November is when Al is going to make a life change. He is ending his over 30-year career as host of Kentucky Educational Television's longest running show, Comment on Kentucky. His last show will be November 16th.
I am a frequent guest on the show and love the energy and preparation that Al brings to the production. He spends countless hours prepping guests and tracking down breaking news.
Viewers get information they cannot find elsewhere. No one can calculate the show's influence on Kentucky's history. Many a journalistic career, including mine, has been launched or enhanced by a Comment on Kentucky appearance.
I am glad that Al is leaving at the top of his game. He set his own terms and gave everyone time to prepare.
It reminds me a lot of when Johnny Carson left The Tonight Show. Carson left in good health and at the top of the ratings. He went out with class and dignity, just like Al will.
He is leaving his successor an incredibly loyal audience and a legacy. Like Jay Leno, following Carson, it could be that the transition to a different host works well, or it could be like when Louis Rukeyser left Wall Street Week and the show quickly died. The audience wanted Louis and no one else.
A lot depends on how the transfer is coordinated.
Although Al is normally the teacher and me the student, the transition of Comment is a situation where I can provide my mentor with advice.
I have had my own business transition.
Exactly twenty-five years ago, I started in the financial planning industry. Shortly after, I started my own business focused around my persona and image. My name, picture, and penguin mascot are on everything.
Just like Donald Trump, Charles Schwab, or Oprah, the business was based around one personality. A lot like Comment on Kentucky is.
Last year, we made a change in how we manage the business. I see more clients than I ever did but I don't run business operations. I spend more time writing and doing research.
It took some adjustment but the business has prospered and has had record growth.
I had advantages that Al doesn't. I got to pick my successors and he does not. Each member of my senior management team had over a decade of experience with the company and literally "grew up" with the business.
I assume the next Comment host will be a veteran journalist who has frequently appeared on the show. It would be a gamble to make a format change or bring in an outside host. Katie Couric's failed attempt to revamp the CBS Evening News proved that news audiences don't want a lot of change.
Al has never shied away from taking a stand. Even though the show is on public television, Al has always pointed out the failings of office holders and his audience appreciates his candor. A host that tries to "water down" the show to please politicians will find audiences quickly tuning out.
A guy who won't be tuning out is Al Smith. On or off the air, he will be as busy as ever. I pointed out to Al that based on his health, energy, and family history, he could easily be active for another twenty years. Until I recently made some weight and lifestyle changes, he had a longer life expectancy than I do, despite his 32-year head start.
When Al made his "better to wear out than rust out" statement, I thought of Neil Young's line, "better to burn out than it is to rust." I don't see Al burning out or rusting.
He will be rocking in the free world for a long time to come.
The Poll
The following are the results from the last poll:
1. Have you ever invited a neighbor to share a holiday with you?
Yes - 56.5%
No - 43.5%
2. What is your favorite holiday?
Other - 28.6%
Christmas - 25.0%
Thanksgiving - 25.0%
Fourth of July - 21.4%
This week there are two poll questions:
1. What is your primary source of news?
2. How many newspapers do you subscribe to?
To vote in this week's poll follow the link below. The poll will be on the left hand side of the web page.
http://www.donmcnay.com/
Don McNay is Chairman of the Board at McNay Settlement Group and author of Son of a Son of a Gambler, Winners, Losers, and What to Do When You Win The Lottery, which is available at http://www.sonofagambler.com. You can write to him at don@donmcnay.com or read other things he has written at http://www.donmcnay.com.
Saturday, September 8, 2007
Can You Handle Being Self-Employed?
Can You Handle Being Self-Employed?
"It's only half past twelve, but I don't care. It's five o' clock somewhere."
- Alan Jackson and Jimmy Buffett
Five o'clock is important to many people. It is the time that they leave their jobs and stop thinking about work.
Five o'clock has never been a big deal for me. I've been self-employed for 25 years, and my work does not conform to a time clock.
My father was a gambler and never lived a nine to five life. Thus, I never grew up wanting one.
Several of my clients are trial attorneys. Along with the bond of working with injured people, we have another common tie: we don't know when we are going to be paid.
The book and movie A Civil Action is a good example of how an attorney can go broke working on an important case.
Many professionals, like real estate agents and others in the sales industry, have the same kind of up-and-down incomes.
Few people are suited to be their own boss. Most people want a regular work routine. Their lives are based on a 40-hour work week and a steady paycheck.
When people tell me they want to start their own business, I ask them if they can really live without a regular income. I tell them to talk to their families and get their honest answers. I ask them if they could stand to go weeks or months without money coming in and how they would deal with it.
They need to understand they are trading their steady paycheck for an "unsteady paycheck."
Many people want their own businesses for the wrong reasons. Like the character in the Jackson song, people decide that they don't like their jobs and that it would be fun to be self-employed.
They don't realize that self-employment means that it is never five o'clock anywhere.
I've told many professionals that they should not go into business for themselves. They may be good workers with good ideas, but they could not handle the stress from not having a guaranteed income.
Never being off work can be hard on families. I had a friend try to be an independent insurance agent. He worked a lot of hours and his wife put their children on the phone and had them say how much they missed him.
He went back to a steady paycheck at a big insurance company. He has less independence but he is still married.
Some people, like me, became self-employed because no large organization would hire them. Once I started my financial business, I realized that I needed the independence of being self-employed more than I needed a steady paycheck.
I had a brief career at a company that decided to impose a dress code. I immediately started coming to work wearing blue jeans, a tee shirt, and a Cincinnati Reds baseball cap.
I killed the dress code and any hope of my advancement at the same time. I went back to working on my own.
Education and upbringing are important in deciding whether a person can make it as an entrepreneur. I was with Barbourville, Ky. attorney Sam Davies when a woman told him that she was sending her son to military school. "He will learn how to follow the rules," she said. Sam replied, "He would be better off if he found a school where they taught him how not to follow the rules."
Sam, who has never had a partner, is one of the best attorneys in the United States. Many trial lawyers practice by themselves or with a few associates. Most have the same anti-authority attitude that I have.
The attitude that makes them unafraid to take on billion-dollar businesses makes it impossible for them to fit into a big corporation.
They produce an "unsteady paycheck," and they never know when five o'clock rolls around.
Before a person decides on self employment, they need to figure out how important five o' clock is in their lives.
Story Behind the Song
It's Five O'clock Somewhere
This song was a monster hit that seems to hit a nerve. Also, it brought Jimmy Buffett back on the popular charts about 25 years after his last visit on the top 20.
Here is a link to the video:
http://www.youtube.com/watch?v=ib8nH4kHjxk
- Alan Jackson and Jimmy Buffett
Five o'clock is important to many people. It is the time that they leave their jobs and stop thinking about work.
Five o'clock has never been a big deal for me. I've been self-employed for 25 years, and my work does not conform to a time clock.
My father was a gambler and never lived a nine to five life. Thus, I never grew up wanting one.
Several of my clients are trial attorneys. Along with the bond of working with injured people, we have another common tie: we don't know when we are going to be paid.
The book and movie A Civil Action is a good example of how an attorney can go broke working on an important case.Many professionals, like real estate agents and others in the sales industry, have the same kind of up-and-down incomes.
Few people are suited to be their own boss. Most people want a regular work routine. Their lives are based on a 40-hour work week and a steady paycheck.
When people tell me they want to start their own business, I ask them if they can really live without a regular income. I tell them to talk to their families and get their honest answers. I ask them if they could stand to go weeks or months without money coming in and how they would deal with it.
They need to understand they are trading their steady paycheck for an "unsteady paycheck."
Many people want their own businesses for the wrong reasons. Like the character in the Jackson song, people decide that they don't like their jobs and that it would be fun to be self-employed.
They don't realize that self-employment means that it is never five o'clock anywhere.
I've told many professionals that they should not go into business for themselves. They may be good workers with good ideas, but they could not handle the stress from not having a guaranteed income.
Never being off work can be hard on families. I had a friend try to be an independent insurance agent. He worked a lot of hours and his wife put their children on the phone and had them say how much they missed him.
He went back to a steady paycheck at a big insurance company. He has less independence but he is still married.
Some people, like me, became self-employed because no large organization would hire them. Once I started my financial business, I realized that I needed the independence of being self-employed more than I needed a steady paycheck.
I had a brief career at a company that decided to impose a dress code. I immediately started coming to work wearing blue jeans, a tee shirt, and a Cincinnati Reds baseball cap.
I killed the dress code and any hope of my advancement at the same time. I went back to working on my own.
Education and upbringing are important in deciding whether a person can make it as an entrepreneur. I was with Barbourville, Ky. attorney Sam Davies when a woman told him that she was sending her son to military school. "He will learn how to follow the rules," she said. Sam replied, "He would be better off if he found a school where they taught him how not to follow the rules."
Sam, who has never had a partner, is one of the best attorneys in the United States. Many trial lawyers practice by themselves or with a few associates. Most have the same anti-authority attitude that I have.
The attitude that makes them unafraid to take on billion-dollar businesses makes it impossible for them to fit into a big corporation.
They produce an "unsteady paycheck," and they never know when five o'clock rolls around.
Before a person decides on self employment, they need to figure out how important five o' clock is in their lives.
Story Behind the Song
It's Five O'clock Somewhere
This song was a monster hit that seems to hit a nerve. Also, it brought Jimmy Buffett back on the popular charts about 25 years after his last visit on the top 20.Here is a link to the video:
http://www.youtube.com/watch?v=ib8nH4kHjxk
Don McNay is Chairman of the Board for McNay Settlement Group in Richmond, Ky. He is the author of the soon to be released book: Son of a Son of a Gambler: Winners, Losers and What to Do When You Win the Lottery. You can write to him at don@mcnay.com or read other things he has written at www.donmcnay.com. His award winning column is syndicated to over 200 publications.
Saturday, September 1, 2007
Birdbrain Bernanke
McNay on Money
People think I am hard on Federal Reserve Chair, Ben Bernanke, but I am beginning to think that I am not hard enough. I want for the world to avoid being plunged into worldwide panic, famine, and devastation.
Bernanke seems determined to do the opposite; look at the recent activity in the markets.
I do not think Ben is evil nor has an economic death wish; I think he is totally clueless. We could have picked any person working in a 9 to 5 job, and they would make a better Federal Reserve Chair.
Some people, like myself and Kentucky Senator Jim Bunning, were saying this before Bernanke got the job. However, the United States Senate was clueless as to what kind of person should have the most important economic job in the world, and they let Ben sail through the confirmation hearings.
The key to being a good fed chair is being in touch with where we are and where we are going. Ben spent all of his life in an ivory tower and does not have an idea what it is like in the real world. He thinks hardship is when they run out of clean silver spoons at the Princeton Faculty Club dining room.
I would love for people to ask their United States Senators why they voted to confirm Bernanke and if they stand behind that vote now. I think that Bunning was the only one to vote against Ben.
There is an excellent article in the Wall Street Journal this week about when Dave Thomas, the founder of Wendy's, interviewed their current CEO, who is an MBA and a CPA. Thomas told her, "You cannot think like an accountant. You have to take care of your customer."
If Thomas were alive today, he would tell Bernacke, "Ben, you can't think like an academic, you have to take care of the American people."
I would feel a lot happier with a guy like Dave Thomas, who was a high school dropout, running the Federal Reserve Board than Ben. Ben has more degrees than a thermometer but doesn't understand the concept of taking care of the people he was appointed to serve.
This incident is the epitome of how out of touch Bernanke and his band of followers on the fed are:
Fed Underestimated Spread of Debt Crisis, Worried About Prices
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYrqhzCehuJM&refer=home
Here are some previous columns I have written on Ben Bernanke:
Big Shot Bernanke
Nice Guys Make Lousy Senators
Subscribe to:
Posts (Atom)
