What I Have Been Reading – December 2019

Earnings growth Through Life:

For the rich and poor alike, the economists found that “the bulk of earnings growth” happens in the first 10 years of work, typically between the ages of 25 and 35. During the next decade of their career, men can expect smaller raises overall.

After 45, those in the bottom 90 percent of lifetime earners see their earnings decline as a group, in part because people often start cutting back their hours around that time, especially if they do manual labor for a living. Meanwhile, even 1 percenters only see relatively minor pay bumps after middle age.

Business Insider


The Levels Of Wealth

Level 1.  Paycheck-to-paycheck:  You are conscious of every dollar you spend.  This includes people with crippling debt.
Level 2.  Grocery freedom:  How much specific grocery items cost don’t impact your finances.
Level 3.  Restaurant freedom:  You eat what you want at restaurants regardless of the cost.
Level 4.  Travel freedom:  You travel when you want, how you want, and stay where you want.
Level 5.  House freedom:  You can afford your dream home.
Level 6.  Philanthropic freedom:  You can give away money that has a profound impact on others



Invest Like Peter Lynch

you should buy what you know… Small investors often have an edge because they can spot trends in their lives before the pros do in the aggregate. Take discount retailer TJ Maxx (TJX), headquartered near Boston. Lynch recalls: “I got a tip from a nurse working with me after I had a knee operation. One day, she said, ‘Gee, I just got a call, and my afternoon patient can’t see me. So I’m going to the mothership.’ I said, ‘What’s the mothership?’ She just looked at me. She said, ‘I’m going to TJ Maxx. I love going there. It’s fun. They had something different every time.’”



Negative Compounding 

When people talk about harmful stress — the kind that can affect health — they usually point to big, life-changing events, such as the death of a loved one. A growing body of research suggests that minor, everyday stress — caused by flight delays, traffic jams, cellphones that run out of battery during an important call, etc. — can harm health, too, and even shorten life spans.

Washington Post


Getting Superior Returns

The three hallmarks of a great investment are superior returns, low risk, and long duration. The whole world concentrates on Category 1.But if you’re a leader of any merit at all, you should be treating these three as what? Co-priorities.



Christmas Royalties

This time of year, it’s hard to go a day without hearing Mariah Carey’s “All I Want For Christmas Is You,” whether it’s playing in a store, in an Uber or on your holiday playlist. … The singer has earned more than $60 million in royalties from the song.




Overall, 6 in 10 working-age Americans haven’t even seen inflation above 4 percent. A quarter of them haven’t even seen a sustained stretch above 3 percent.

Washington post


The Placebo Effects turbocharged

Placebos are so effective that placebo placebos work: A pain cream with no active ingredients worked even when not used by the patient. Just owning the cream was enough to reduce pain.



Shipping Costs Are A Deterrent

“The reaction to free shipping goes beyond the normal way of looking at cost and benefit,” Dhar explains. “A 20 percent discount, which would add up to the same $5 or $8 that shipping costs—that’s not as effective as giving free shipping.” In general, Dhar says, shoppers are even willing to pay more overall for the same goods if there isn’t a separate shipping charge. What bothers them most is the nickeled-and-dimed feeling, not the total amount of the tab.

The Atlantic



Six reluctant Chinese hitmen who hired each other to carry out a murder went to jail when their outsourcing scheme collapsed.