This morning my wife asked me if had been it had been 10 years since I first shaved my head. I had to think about it for a minute. Yep, 10 years!

Since this is the diamond anniversary of my relationship with baldness, I believe it is time to reflect on the experience. What have I learned from being bald? Are there any hidden gems of wisdom to be discovered, polished and shared? I believe there are a few.

Me with hair... a lot of it

First, let me provide some history that lead to what I call ‘The Zen of Baldness’. As a kid, I had a full head white hair. During college, my hair grew down to my shoulders. I was cool and unstoppable. Then a funny thing began to occur in my early 20s. I noticed my scalp would get sun burned. Interesting, I thought God gave me hair to protect against that. However, upon closer examination, I came to the terrifying conclusion that I was losing my hair. Denial took over. Continue Reading…

Aristotle believed that thunder was caused by the collision of clouds.

Wikipedia defines ‘Thunder as the sound made by lightning. The sudden increase in pressure and temperature from lightning produces rapid expansion of the air surrounding and within a bolt of lightning. In turn, this expansion of air creates a sonic shock wave which produces the sound of thunder, often referred to as a clap, crack, or peal of thunder.’

Earlier this week I was awakened from my slumber by a massive storm rolling through North Texas. A flash of white light flooded the room for a nanosecond. It blinded me for a few moments. Then, I could hear thunder being born in the distance, that crackling sound somewhere in the atmosphere. I could perceive the general direction of its origin but I could not pinpoint the exact place where the sound was created. After its emergence, its echo faded into silence. Then, a distant rumble made its way toward our location. As it approached, it grew louder. The reverberations caused by the low frequency shook the earth. The force compressed the air and my entire home was engulfed by a shock wave which vibrated everything in its path. It was if a giant locomotive was rushing through our home. It was at this moment that I truly appreciate the magnificence and power of thunder. Continue Reading…

Do you remember your last vacation? Recall the planning and preparation it took to get you there? Kathryn and I just returned from a 6-day vacation to beautiful Manuel Antonio, Costa Rica.

We booked direct flights into San Jose. Then, we booked a one night’s stay at a hotel near the airport because we had to catch an early morning flight to Manuel Antonio. After several weeks of research, we found the perfect place to stay. Our private villa was perched in the trees on a hillside offering 180 degree views of a protected cove overlooking the azure waters of the Pacific Ocean in a small community called Tulemar. Our villa had a full kitchen, maid service, gas grill, shuttle transport and a private beach outfitted with kayaks, boogie boards, comfortable lounge chairs and a friendly wait staff.  One day, as I watched clouds drift by and the golden sun sink into the calm sea, I took a sip of my Pina Colada and reflected on the amount of effort and planning it took to park our butts on this beautiful patch of sand. Continue Reading…

Calming the Storm: 5 Steps to Meaningful Devotional Time aka Quiet Time

• Have you ever wondered why your day spirals out of control?
• Have you disconnected God from your work?
• Do you ask yourself “Where is God at 3 O’clock in the afternoon”?
• Do you go to bed wondering why God seems so far away?

Continue Reading…

If you missed the Cashion Financial Webcast discussing the ’2 Stages of Financial Life’, there is no need to worry. Below is a link to watch the ’10 Minute Takeaway’. These short Webcasts are designed to teach you something you did not know about personal finance in about 10 Minutes.  In the ’2 Stages of Financial Life’ I discuss accumulation specialists vs income specialist and the difference. I also briefly discuss how you can avoid the next 2008-2009 market downturns in regard to your retirement accounts.  You can also visit my Webcasts page where all webcasts will be archived.

Play Video Below or Click on WMV Link below post. Continue Reading…

There are retirement lessons from 2008 and 2009 that we need to discuss. Millions of retirement accounts and portfolios where decimated or seriously damaged in those years. I’m not going to discuss the mortgage crisis or politics. I’m going to focus on market performance and its relationship to the value of retirement accounts. Then, I’m going to give you some action steps to insulate yourself.

What happened?
The S&P 500 is the industry benchmark for performance for the majority of portfolio managers. In fact, most active large-cap fund managers try to beat the S&P 500. Sadly, over the last 3 years 64% of those managers have underperformed the benchmark.

In 2008, the S&P 500 lost over 13%. This means that if your accounts value was $1,000,000 at the beginning of 2008, it was worth $870,000 by the end of the year.

In 2009, the S&P 500 lost approximately 26%. This means that your $870,000 account would now be worth a whopping $640,380 at the close of 2009.

Continue Reading…

401k plan Fees and Disclosures:
In May of 2012 there will be major regulatory changes occurring to employer sponsored retirement 401K-type plans. I’ve chosen two changes that will affect clients the most and I will cover them on a high level so, that you can act accordingly. I’m not going into great detail. However, I will provide you with resources to get more information.

For over a decade there has been a growing movement for more transparency on the part of the 401k industry particularly in regard to fees and expenses. While plans disclose some fees and sales charges, etc., other fees exist in a murky world of non-disclosure.

How much does it cost to own your retirement portfolio?
Continue Reading…

Loss Aversion has a Hidden Cost

“In human decision-making, losses loom larger than gains.”
- Kahneman & Tversky (Prospect Theory)

In economics and decision theory, loss aversion refers to people’s tendency to strongly prefer avoiding losses to acquiring gains. Some studies suggest that losses are twice as powerful, psychologically, as gains. (Wikipedia).

Simply put, losses have the same psychological effect as pain and have twice the impact of gain (pleasure). Our brains are wired to avoid pain. This affects the decision making process without our being conscious of it. The ramifications can be devastating. It leads to risky behavior.

The loss averse person attempts to avoid loss at all costs. But what are those costs? Continue Reading…