What's in Envelope Number Five?

Every generation has dealt with it; some more successfully than others. To serve, entice, mislead and help those new generations, the purveyors of happy answers always seem ready to parcel out sound advice on money management. The financial advice comes in new flavors and colors but the taste remains the same. It takes hard work to manage your money and in our capitalistic society, the carnival barkers are always there to help you along the way or so they say.

Now-a-days: it’s Buy now – Pay later. Student debt, Consumer debt and the national debt have become distasteful tidbits of conversation best left to crisis management. For many, instant gratification seems to be the answer to everything. Order it on line this morning, have it on your door step by this afternoon. The bill will come later so don’t worry about it now.

When Sharon and I first got married, ours was a different world than it is today. In the greater scheme of things, it was plainly old-fashion, neither better nor worse than today, just different.

Back in the prehistoric ages of the early 70s, we were living outside of Baltimore, Maryland in a suburb called Reisterstown; a colonial outpost back in the day. I was working at the Maryland Center for Public Broadcasting and Sharon was a stay-at-home mom.

I wanted to buy a house. Sharon was non-plus but insisted that if that was our goal then saving for it should be our total focus. She decided to budget all our expenses out of envelopes. I think she had a total of ten envelopes. If there was no money in the envelope by the end of the month, no can buy. It was our version of forced savings and it didn’t hurt us one bit. Granted, we would often miss out on the latest, greatest movie in town. We weren’t looking to live in a fancy new-build. We didn’t drive the latest model car. Summer vacations were one week away, someplace, but nothing fancy.

Starting out, we had splurged on a 3-week honeymoon in the Virgin Islands. Then our first rental was the top floor of a duplex in town. Moving to Tennessee, it was another rental. In Maryland, it was a year in an apartment and then we focused our financial energy on savings for the down-payment for our first house.

Our first home cost us $25,000. A year later, our second home in Apple Valley, Minnesota was $49,700. We’ve been there ever since. Our continuing savings plan was very simple. First came money set aside for the kid’s college education and only after that, did we start to save for retirement.

The engines driving our savings came from two incomes, my side hustles in business and real estate and a simple, yet very comfortable, lifestyle that fit our personalities. We’ve always tried to be thrifty smart and not stupid cheap. Our spending habits balanced each other out. I hate to spend money on anything. Sharon is more rational and reasonable in our purchases.

That simple savings plan has worked well for us. But time changes all things and recently I came across a fascinating article about another approach to savings for younger generations. I was jaw-boning about this new approach to financial literacy with an investor friend of mine. We talked about our own divergent pathways to retirement and he mentioned a new movement that he’s become intrigued with now.

It’s called FIRE and it purports to have found a new route to financial freedom for the younger generations. For the two of us, that would be anyone under the grand age of sixty. My friend tells me that millennials in particular seem to have gravitated toward this new ‘routine in financial living. FIRE is an acronym for ‘Financial Independence, Retire Early.’ To better understand the concept, I’ve borrowed some of the high points of this philosophy from the Investopedia web site.

The web site explains that: ‘Financial Independence, Retire Early (FIRE) is a movement of people devoted to a program of extreme savings and investment that aims to allow them to retire far earlier than traditional budgets and retirement plans would permit.

Born out of the 1992 best-selling book Your Money or Your Life by Vicki Robin and Joe Dominguez, FIRE came to embody a core premise of the book: People should evaluate every expense in terms of the number of working hours that it took to pay for it.

Key Takeaways of FIRE

• Financial Independence, Retire Early (FIRE) is a financial movement defined by frugality and extreme savings and investment.
• By saving up to 70% of their annual income, FIRE proponents aim to retire early and live off small withdrawals from their accumulated funds.
• Typically, FIRE followers withdraw 3% to 4% of their savings annually to cover living expenses in retirement.
• Detailed planning, economic discipline, and wise investment are key components in achieving a FIRE retirement.
• The FIRE movement was inspired by the 1992 book Your Money or Your Life, written by two financial gurus.

The FIRE movement takes direct aim at the conventional retirement age of 65 and the industry that has grown up to encourage people to plan for it. By dedicating a majority of their income to savings, followers of the FIRE movement hope to be able to quit their jobs and live solely off small withdrawals from their portfolios decades before they reach age 65.

To cover their living expenses after retiring at a young age, FIRE devotees make small withdrawals from their savings, typically around 3% to 4% of the balance yearly. Depending on the size of their savings and their desired lifestyle, this requires extreme diligence to monitor expenses as well as dedication to the maintenance and reallocation of their investments.

Several FIRE retirement variations that dictate the lifestyle that the FIRE movement’s devotees are willing and able to maintain have evolved within it, as reported by Forbes Advisor.

• Fat FIRE—This is for the individual with a traditional lifestyle who aims to save substantially more than the average worker but doesn’t want to reduce their current standard of living. It generally takes a high salary and aggressive savings and investment strategies for it to work.
• Lean FIRE—This requires stringent adherence to minimalist living and extreme savings, necessitating a far more restricted lifestyle. Many Lean FIRE adherents live on $25,000 or less per year.
• Barista FIRE—This is for people who want to exist between the two choices above. They quit their traditional 9-to-5 jobs but use a combination of part-time work and savings to live a less-than-minimalist lifestyle. The former lets them obtain health coverage, while the latter prevents them from dipping into their retirement funds.

Sprinkled throughout the web site are some interesting points about good old simple planning ahead for retirement. For many folks, that’s easier said than done. One pundit commented that the best time to save is when you’re first starting out in a new job or getting married and settling into a new lifestyle. Of course, he never mentioned that that period in our lives is when we generally incur a lot more expenses than later on in life.

The FIRE movement has many solid, common-sense arguments in its favor. While I have no desire to poke holes in their concept, I do find one equation that is either seldom mentioned or just passed over briefly; that is, living the life you want to live. Postponing life events, small pleasures, and everyday occurrences just to save a buck doesn’t seem to me a good way to spend one’s life.

In the end, I think those FIRE proponents and I are probably talking about the same ‘means to an end.’ I’ve always felt that living within ones means, spending money wisely but still ‘having a life’ is the best way to go.

It doesn’t hurt to be able to recognize the difference between ‘having to have’ verses ‘wanting to have.’ Our good old capitalistic society thrives on the economic engine of consumption and always wanting more. But it doesn’t have to.

Real success lies in ‘living a satisfying, fulfilling life.’ It means spending as much time as you can with your kids and/or grandchildren when they’re young. It means spending quality time with your spouse or partner in life. It means taking the time to ‘smell the roses’ and treasure each day as a gift to be shared, used, enjoyed and relished as if it were your last day on earth.

Because at some point, it will be your last…and all the money in the world won’t make up for lost time or opportunities to live your life the way you want to.

Just sayin’.

En Plein Air

Since the earth was formed ions ago, the desert has been constantly rearranging itself in subtle yet sublime ways. Despite the harshness of summer and bone-chilling winds of winter, people have found refuge and relief in the barren wilderness they called their desert home. As much as times changes all things, the desert remains a kaleidoscope of colors and hues and textures and form.

By the late 1800s, the dry desert air proved to be a haven for tuberculosis patients who came to the Palm Springs area and the high desert to recuperate and recover from their illness. A few of them were painters and word began to spread back east about the vast desert wilderness with its stunning mountain backdrops as a special place to paint.

But the real breakthrough came in the early 1900s with the growth of the plein air movement in painting. “plein air” derives its meaning from the late 19^th century French term “en plein air” or translated “in the open air.” The phrase was used to describe the practices of the French Impressionist painters who sought to capture the effects of light and atmosphere by completing their work out-of-doors and by using loose, open brushwork and vibrant colors.

Many experts believe the plein air movement attained its most dramatic articulation in the desert of the southwest especially in the distinctive quality of light sought and expressed by the early California desert painters. Local artists such as Carl Eytel in the early 1900s and later John Hilton in the ‘40s helped spread the word of this desert wonderland as a magnificent natural palette.

Another one of the famous painters of that era was Stephen Willard who wasn’t a painter at all. Originally a photographer, Willard is best remembered for his iconic postcards from the Palm Springs area. After color painting some of his local photographs, Willard found a ready market for those paintings as postcards. Each postcard perfectly captures the true essence of the iconic Palm Springs lifestyle.

Gradually the movement lost its power and modern art came into vogue. Then in the 1970’s, California impressionism soared back into favor among collectors. Art itself like some strange virus continued to grow unabated in the valley. Now every community seems to have its own art walk, festival, show or art tours. Several distinct areas have slowly morphed into showcases for some of the most popular artists in the valley.

The Perez Art District and Backstreet Art district are located several miles from downtown Palm Springs. Located in an old strip shopping mall, Backstreet Art showcases dozens of artist-owned galleries and working studios which feature paintings, sculpture, photography, jewelry, ceramics as well as performing arts.

A much larger area for artists is located north of downtown Palm Springs. Years ago, North Palm Canyon Drive was a slow growing area where local artists could find cheap rent outside of the main part of town. At one time it was a barren stretch of boarded up storefronts and half empty motels that offered none of the glamor and cache of old or new Palm Springs.

It was like Greenwich Village, Soho and Dumbo before the beats and hipsters and other so-called outcasts found a home there. And like those venerable neighborhoods, the Design District also found itself home to struggling as well as established artists looking an appreciative audience of like mind souls.

The area is now thriving with notable shops such as Trina Turk, thirteen forty-five, just modern and a pop-up store called Raymond/Lawrence. That store describes itself as ‘a new indoor marketplace with handpicked pop-up shops by creative brands.” They make no secret of the fact that they are selling the Palm Springs lifestyle in home décor, furnishings, men’s and women’s fashions and fine art.

The Ultimate in artistic regeneration and commercial display is located down the valley in Palm Desert. It’s a mile long commercial strip that is generations and millions of dollars from the mud huts of early painters deep in the desert. It is meant to embody the style and elegance of high society in the desert. This art-strung boulevard houses over 250 retailers, professional services, renowned restaurants and locally owned boutiques. It is the ultimate avenue for anything and everything you never knew you needed.

Desert art has come a long way from those first ancient petroglyphs through ‘en plein air’ to the rich tapestry of creative talent that resides here now. There are a plethora of art shows, film festivals, world-class gallery and museum events, rotating exhibitions, national touring and locally produced theater, classical to contemporary music concerts, couture fashion shows and architecture and design tours.

Yet as much as time changes the flavor of art, we still get to immerse ourselves in the daily show all around us. Each morning, sunlight still dances off of the mountain sides and the casts imaginative shadows over our lives.

It’s like a new show that takes place every day and we get to be in the audience and live it along with that celestial talent from above.

If Only... in My Mind

We’ve all had those moments of ‘what if?’ Live long enough and you’ve probably had more than a few. It often comes as a pause, a moment, a gleam backwards inside your head. Just enough reflection to catch your breath and wonder how things might have turned out: ‘if only.’

It was a middle-aged secretary who would have done it for me. At that point in my life, I thought I had finally found ‘it’ then didn’t know what to do when I did. If only she had felt the same way. If only she had been real? This is what happens when a writer’s mind begins to ruminate and wonder and creates a ‘what if’ storyline. That is what happened with Glady and I…in my imagination.

‘Agnes, Memories of First Love’ is my latest novel. It’s also a mini web site that I’ve attached at the end of this sad Lalique.

As the story unfolds, I was living in a depression-era hovel and had just gotten my first job as a writer at the U of M. Glady was a secretary on staff and the first woman who made me feel grown up, despite our age differences. We could talk easily about almost anything and every-thing.

It began innocently enough. Coffee after work. Friday night folk sessions at the old Scholar coffee shop in Dinky town. Then a first surreptitious rendezvous in my apartment, talking foolishly about the future, her life and mine. That liaison morphed into long meandering talks about hopes and dreams and foolish expectations. It meant making love in the dark but never staying the night. In truth, it was kidding ourselves every step of the way.

I’ve outlined my tale of Glady and I in the attached mini web site. A nostalgic trip back in time when my ‘what if’ became reality and a love story was born out of it.

Agnes, Memories of First Love