Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings

Having a job? You can make it to the top 5%

There are 100 people at 65 years old:
One will be rich.
Four will be financially independent.
Five will be working.
Thirty six will be dead.
Fifty four will be dependent.

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Let’s suppose that most men and women start working at 25 and retire by 65.
How much money do you suppose an average man earn in 40 years?
According to CNBC( https://www.cnbc.com/2017/08/24/how-much-americans-earn-at-every-age.html ), this figure would be over $1.6 million. This is a substantial amount. This is a fortune.

Earl Nightingale in his popular audio program “Top 5%” talks about a research. There are 100 men and women at 25 starting out equally in America, the richest country on earth. Each has as much opportunity as the rest. By the time they are 65 years old:

  1. One will be rich.
  2. Four will be financially independent.
  3. Five will be working.
  4. Thirty six will be dead.
  5. Fifty four will be dependent.

Earl’s tape was in 1960s. However, the stats holds even in this present time. Only 5% are financially independent. This is the top 5% that we all want to belong to.

So according to CNBC above, most people will earn at least $1.6 million ($40K per year * 40 years) by the time they are 65 if they started working at 25. Only 5% makes the grade. 95% are either dead or don’t become financially independent. As I wrote in the article “Making 6 figure? How to avoid being one of 69% of Americans who have less than $1000 in the bank“, the survey by GoBankRates year after year still points out that many Americans who make 6 figures have less than $1000 in the bank. So where does the money all go? What’s the problem?

If you practice karate 40 hours a week, 50 weeks a year, for 40 years, you will agree that you will be an accomplished martial artist. I use Karate in this example as I practiced Musokai Karate for over 10 years. I realized the difference between an accomplished karate master and the rest is how much time they put into practicing persistently. My Shihan Arakaki is a living example of an accomplished Karate master through hard work and persistence.

If you practice anything (piano, acting, investing, programming, …anything) 8 hour a day, 5 days a week, 50 weeks ago, for 40 years, you can become an expert. 

In the above research, the fifty four men and women out of 100 who arrive at age 65 without having become financially independent in the richest land in the world have worked in the economy for 8 hours a day, 5 days a week, 50 weeks ago, for 40 years and have not figured out how to be financially independent for the remaining years of their life. 

The experts say that only 5% make the grade because that is the group that does not conform. They do not follow the crowd. 

Conformity is to act like everybody else. And by acting like everyone else, the odd is that 95 to 5 that we will miss the boat of becoming financially independent.

Why do people conform?

The reason to conform is simply because it is an easy thing to do. We have been taught to conform. From the time we were born through school, we were told what to do. We don’t want to be different as being different is ridiculed by others. We want to be liked and to belong to the group. We spent at least 18 years learning to conform.

Out of school, suddenly we find ourselves to be on our own for the first time. We get a job. The most natural thing for us to do as we have been trained to conform is to look around and see how other fellows are doing their jobs. Since we have always been told what to do, why should we start thinking for ourselves? Thinking for ourselves is much hard than to conform.

By starting at 25 and retiring at 65, you know that people have 40 years to become great at their craft. However, 95 percent won’t do it. The reason is because they do like everyone else, they follow the crowd.

Everyone has a choice. You can choose to follow the crowd to be like everyone else or to join the top 5%. The choice is yours.

If you don’t want to conform, you must think now before it’s too late.

If you decide to join the top 5%, let’s continue. If not, reading more will waste your time.

There are only two steps when it comes to financial independence. And anyone can do these two steps:

  1. One’s attitude toward their work.
  2. The money one can save.

First, no matter what your present job is, it contains many hidden opportunities. Take a moment in quietness, ask yourself those questions, and silently write down the answers:

  1. How can you become an expert in your present industry?
  2. Do you know your job and your industry like a doctor knows about medicine?
  3. What will your job be like in 5 years? Can you do it the same now?
  4. What are some ways that have not been done before to improve your job?

No matter what your job is, it contains the key to greatness. Look for it until you find it.

Second, your financial success has nothing to do with the money you earn but only with the money you save. Unless you save 10% or more of what you earn, you are doing yourself a disservice. Following those steps consistently and you will know the power of saving as well as enjoy your life, especially the later part when you need it most.

  1. First, save one-tenth of what you earn and dont touch it.
  2. Second, for every dollar you save, make it work for you. Make your savings your slaves. Make their children your slaves also.
  3. Third, control your expenditure so that you never have to tap into your saving. Better yet, slash your expense so that you may have some extra dollars to put into your saving. Remember #2, your saving will work for you along with its children, grandchildren,
  4. Fourth, guard your capital. Remember that getting rich is not a quick venture. You must be patient and not jump into any venture that causes you to lose your saving.
  5. Fifth, be disciplined and remember step #4. Warren Buffett follows this principle by saying “the first rule of investing is to not lose money. The second rule is to never forget rule #1”.

For detailed explanation, you can read more at: Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.

Don’t follow the crowd. Start thinking for yourself now. Look for the key to greatness in your job. Start saving and put your saving to work.

Remember that 95% won’t do it. You want to be financially independent. You want to join the top 5%. And you can.

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Other popular articles:

  1. Life lessons from a Uber driver who was laid off
  2. Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings
  3. How to guard yourself against negative influences
  4. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
  5. How to get your dream job with no experience – Lessons from Bill McDermott
  6. Leaders are readers
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  8. 20 minutes that can change your life
  9. This simple skill is worth millions, helped many become millionaires, billionaires

About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.
If you are curious about the above method and how you can apply it to your life successfully, open your email and send me an inquiry at coach@hoanmdo.com

 

 

Why has experience helped some and not others?

career

In recent hirings, I talked with several managers about experiences of candidates. We wanted to look for candidates with experiences that we needed. We put that in job description. Many resumes we received had 15 years of experiences in a particular field but those candidates either moved too often but stayed too short from organizations to organizations or did not grow much from their positions. They looked like having one year of experience 15 times. There were candidates with fewer years of experiences but they passed our strict tests with a high flag.

Why has experience helped some and not others?

Dr. John C. Maxwell said that we begin our lives as empty notebooks. Every day we have an opportunity to record new experiences on our pages. The problem is that not all people make the best use of their notebooks. Few who do make use of their notebooks often reread what they wrote and reflect on it. Reflection turns experience into insight. Experience teaches nothing, evaluated experience teaches everything. In other words, experience is automatic, insight is not.

Dr. John C. Maxwell taught about experiences:

  1. We experience more than we understand. In order to close the gap between understanding and experience, write it down and reflect on it daily.
  2. Our attitude toward unplanned and unpleasant experiences determine our growth.
  3. Lack of experience is costly.
  4. Experience is also costly. We can not gain experience without paying a price. Experience gives the test first and the lesson later.
    Mark Twain: I know a man who grabbed a cat by the tail and he learned 40 percent more about cats than the man who didnt.
  5. Not evaluating and learning from experience is more costly. It’s a terrible mistake to pay the price for experience and not receiving the lesson.
    Mark Twain: if a cat sits on a hot stove, that cat won’t sit on that hot stove again. In fact, that cat won’t sit on a cold stove either.
  6. Evaluated experience lifts a person above the crowd.

How do we apply this lesson? I have a habit of writing down what happened to me since high school. Shihan Arakaki (founder and grandmaster of Musokai Karate) taught me to write down both what happened as well as what I learned. Now Dr. Maxwell taught me to write down my experience, my thoughts, my learning, and really spend time to reflect on it. The entire process takes less than 15 minutes daily but it has been a life-changing habit. It will be for you too.

For more details, please read Leadership Gold by Dr. John C. Maxwell or join one of my mastermind groups.

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How to get your dream job with no experience – Lessons from Bill McDermott

Bill McDermott is the CEO of SAP, the world’s largest business software company. He worked at Xerox for 17 years climbing its corporate ladder from an entry-level salesman to the corporate officer and division president. Bill then went to become the president at Gartner. Bill joined SAP as its CEO for North America in 2002. He again climbed the SAP’s corporate ladder to become SAP’s CEO.

How Bill got the jobs he wanted is a valuable lesson. It demonstrates a key principle: if you really want it and are willing to ask for it, you will get it.

1982 Bill’s first job at Xerox when he was 21 and just got out of college ( he didn’t go to any prestige school):

Bill went to the interview at Xerox’s office in New York. He wore a $99 suit (an expensive suit at that time) as he believed in overdressing and showing his professionalism.

When he said goodbye to his dad, he told his dad: “I just want you to know I’m coming home with my employee badge in my pocket. I guarantee it….Dad, I love you. I am coming home with a badge in my pocket.”

Bill realized that his chance of getting into Xerox was very slim. He was competing against people who went to Yale, Princeton, Notre Dame,…

Instead of panicking, Bill connected with other interviewees to learn as much about them as he could. He asked about where they came from, what schools they went to, what they were at Xerox for…. In other words, he was interviewing his competitors.

Bill completed several rounds of interviews and was ushered into a senior sales executive’s office for the final interview.

Instead of being nervous, Bill remembered his mom’s words and took them to heart: Just be yourself.

When the interview with the executive completed and Bill was told that he would hear back from Xerox after they reviewed all interviews, Bill did not want to wait. He knew exactly what he wanted: a job at Xerox.

He told the executive: “I told my father as I left him at the train station today, that I guaranteed I would come home tonight with my employee badge in my pocket. In twenty-one years, I’ve never broken a promise to my dad, and I can’t start now.” He then looked the executive into the eyes with silence. He knew that all he could do was to ask for what he wanted.

Bill got the job on spot. He did not leave immediately but closed the offer: “I do want to confirm that you’re going to hire me at the Xerox Corporation and I’m going to work for this company, yes? You’ve given me the job, is that right?”

Bill’s first sales manager job at Xerox:

After securing the support from the man in charge of Xerox’s New York operation, Bill applied to become a sales manager.  Bill was the least experienced, youngest candidate.

Bill arrived at the interview dressing above his present grade. While in the waiting room, he interviewed his competition. He asked about why they wanted the job, what their plan would be if they got the job…. Once he’s done, he knew that he had an edge: he wanted the job more than anyone else and he was prepared more than anyone else in the room.

Bill then interviewed with an executive who had the hiring authority. He showed her his plan in writing and told her what he would do as a sales manager.

Then he closed the interview after the executive told him to wait for HR to communicate the final decision: “You know that I can sell. And I know that I can get everyone on the team to sell. Give me this chance, and I will make this team number one in the country. I guarantee it. Number one.”

“Well, Bill, that is very different from everyone else.” She was smiling. “I appreciate everything you’ve done today.”

“I respect you, and therefore I don’t want to ask you tedious questions. I only want to ask you one more: Will you give me your trust and give me a shot at doing this job?” Bill asked.

“Bill, there’s a process we have to go through . . .”

“My trust is in your hands, and I believe the right thing will happen. I’ll be in the office early tomorrow if you’d like to talk some more.” Bill concluded.

Bill got the job. Once again, Bill asked for what he wanted and got it.

 

 

 

If you really want a job, ask for it. Go straight to the decision maker and ask for it with all your passion and energy. Be sure that it’s your dream job.

Learn another skill to ASK for what you want: “This simple skill is worth millions, helped many become millionaires, billionaires

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Join 11,548 other followers

Other popular articles:

  1. Life lessons from a Uber driver who was laid off
  2. Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings
  3. How to guard yourself against negative influences
  4. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
  5. How to get your dream job with no experience – Lessons from Bill McDermott
  6. Leaders are readers
  7. A SPECIAL GIFT FOR YOU – WHY SHOULD I HIRE A COACH?
  8. 20 minutes that can change your life
  9. This simple skill is worth millions, helped many become millionaires, billionaires

About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.

PS: if this article inspires you, don’t wait. Take action immediately. If you want to talk, contact me by sending me an email to hoandojmx@gmail.com . To get a response, be sure to tell me your dream.

PSS: Read Bill McDermott’s memoirs: Winners Dream

 

How to think BIG – the Jeff Bezos’ way

When Jeff Bezos announced to his boss that he would quit his job to start an online book store, his boss advised him to think about it for 48 hours. The important thing to know is that Jeff Bezos was working as a vice president for the famous firm D.E. Shaw. D.E. Shaw hired only genius (1% acceptance rate among math and computer scientists). Quitting his job would mean that Jeff Bezos would be leaving behind the high-paying job at one of the most famous firms on the Wall Street.
He did and outlined a framework to make BIG decision. This framework called Regret Minimization Framework centered around the question: “If you are 80, what will you think?”
For Jeff Bezos, leaving a stable, high-paying job with a big bonus was not a regret. He would be regretting if he did not take the opportunity to become an entrepreneur on the Internet.
Jeff founded Amazon in 1993 and as of this post, it’s a $761 billion company. Jeff is the richest person in the world with a $129.9 billion net worth.
Jeff Bezos’ words on decision-making:
I wanted to project myself forward to age 80 and say, “Okay, now I’m looking back on my life. I want to have minimized the number of regrets I have.”
I knew that when I was 80 I was not going to regret having tried this.
I was not going to regret trying to participate in this thing called the Internet that I thought was going to be a really big deal.
I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not ever having tried.
I knew that that would haunt me every day, and so, when I thought about it that way it was an incredibly easy decision.
And, I think that’s very good.
If you can project yourself out to age 80 and sort of think, “What will I think at that time?”
It gets you away from some of the daily pieces of confusion.
You know, I left this Wall Street firm in the middle of the year.
When you do that, you walk away from your annual bonus.

That’s the kind of thing that in the short-term can confuse you, but if you think about the long-term then you can really make good life decisions that you won’t regret later.

If you are facing a BIG decision, project yourself at the age of 80 and ask yourself: “What will I think?”, “Will I regret?”
Just remember that Jeff Bezos left behind a high-paying job with a big bonus as a vice president of one of the most famous firms on the Wall Street. He followed his dream and embraced a decision that he would be proud of when he’s 80 year old.
As you read this, you might say that only Jeff Bezos could do so and this does not apply to you, or this method does not work for you. You are absolutely right. The mere reason for your thinking so is what stops you from taking on something big.
Steve Jobs, the co-founder of Apple Inc, put the question differently: “if today were the last day of your life, would you want to do what you are about to do today?”
In Steve Jobs’s most inspirational speech:
For the past 33 years, I have looked in the mirror every morning and asked myself: if today were the last day of my life, would I want to do what I am about to do today?
Whenever my answer has been NO for too many days in a row, I know I need to change something.
Remembering that I will be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life.
Because almost everything, all external expectations, all prides, all fears of embarrassment or failure, these things just fall away in the face of death, leaving only what is truly important.
Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There’s no reason not to follow your heart.
Don’t let yourself regret at your death bed that you have not done something extraordinarily. Or as my mentor said, don’t die with the music still in your ear.
Like/share/put + if this helps someone.
Recommended reading:  The Amazon Way: 14 Leadership Principles Behind the World’s Most Disruptive Company by John Rossman
#thesamuraicoach

How to invest – Warren Buffett’s 2017 annual letter to shareholders

Warren Buffett released his annual letter to shareholders today Saturday 2/24/2018. Though Warren Buffett has not published a book, his annual letters contain much of his wisdom in investment success and life-changing principles. Since his early years into investment, Warren Buffett has been sharing his own success freely.

The following contains excepts from his letter:

Berkshire Hathaway’s per-share book value has grown from $19 to $211,750 or 19.1% compounded annually. Readers of my article (Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.) can look into Berkshire Hathaway’s shares if they are looking for investment ideas.

Buffett again warns investors not to pay much attention to short-term results: Berkshire owns $170 billion of marketable stocks and the value of these holdings can easily swing by $10 billion or more within a quarterly reporting period. For analytical purposes, Berkshire’s “bottom-line” will be useless.

Buffett chose to communicate his annual report by late Friday or early morning Saturday for a reason not to cause fluctuate in Berkshire Hathaway’s stock price, since investors have the weekend to analyze anything they want to before the market opens.

At Berkshire what counts most are increases in normalized per-share earning power.

There are four building blocks that add value to Berkshire:

  1. sizable stand-alone acquisitions;
  2. bolt-on acquisitions that fit with existing businesses;
  3. internal sales growth and margin improvement at many and varied businesses;
  4. investment earnings from stocks and bonds.

The key qualities Buffett seeks when doing M&A are:

  1. durable competitive strengths;
  2. able and high-grade management;
  3. good returns on the net tangible assets required to operate the business;
  4. opportunities for internal growth at attractive returns;
  5. and, finally, a sensible purchase price.

In 2017, the price of most stocks hit all-time high. Price seemed almost irrelevant to an army of optimistic purchasers.

Buffett warns about deal heat: Once a CEO hungers for a deal, he or she will never lack for forecasts that justify the purchase. Subordinates will be cheering, envisioning enlarged domains and the compensation levels that typically increase with corporate size. Investment bankers, smelling huge fees, will be applauding as well. (Don’t ask the barber whether you need a haircut.) If the historical performance of the target falls short of validating its acquisition, large “synergies” will be forecast. Spreadsheets never disappoint.

Buffett’s simple guideline: The less the prudence with which others conduct their affairs, the greater the prudence with which we must conduct our own.

On leverage: we never will operate Berkshire in a manner that depends on the kindness of strangers – or even that of friends who may be facing liquidity problems of their own. During the 2008-2009 crisis, we liked having Treasury Bills – loads of Treasury Bills – that protected us from having to rely on funding sources such as bank lines or commercial paper. We have intentionally constructed Berkshire in a manner that will allow it to comfortably withstand economic discontinuities, including such extremes as extended market closures.

On investing in stocks: Charlie and I view the marketable common stocks that Berkshire owns as interests in businesses, not as ticker symbols to be bought or sold based on their “chart” patterns, the “target” prices of analysts or the opinions of media pundits. Instead, we simply believe that if the businesses of the investees are successful (as we believe most will be) our investments will be successful as well.

On borrowing to buy stocks: There is simply no telling how far stocks can fall in a short period. Even if your borrowings are small and your positions aren’t immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions.

Investment’ philosophy: When major declines occur, however, they offer extraordinary opportunities to those who are not handicapped by debt. That’s the time to heed these lines from Kipling’s If:

“If you can keep your head when all about you are losing theirs . . .
If you can wait and not be tired by waiting . . .
If you can think – and not make thoughts your aim . . .
If you can trust yourself when all men doubt you . . .
Yours is the Earth and everything that’s in it.”

The last portion of Buffett’s letter dedicates to his bet against portfolio managers: a virtually cost-free investment in an unmanaged S&P 500 index fund would, over time, deliver better results than those achieved by most investment professionals, however well-regarded and incentivized those “helpers” may be.

Lessons from his 10-year bet:

  1. Investment funds: Performance comes, performance goes. Fees never falter.
  2. Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics or a familiarity with Wall Street jargon such as alpha and beta. What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period – or even to look foolish – is also essential.
  3. Stick with big, “easy” decisions and eschew activity.

The annual meeting falls on May 5th and will again be webcast by Yahoo!, whose web address is https://finance.yahoo.com/brklivestream. The webcast will go live at 8:45 a.m. Central Daylight Time.

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Join 11,548 other followers

Other popular articles:

  1. Life lessons from a Uber driver who was laid off
  2. Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings
  3. How to guard yourself against negative influences
  4. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
  5. How to get your dream job with no experience – Lessons from Bill McDermott
  6. Leaders are readers
  7. A SPECIAL GIFT FOR YOU – WHY SHOULD I HIRE A COACH?
  8. 20 minutes that can change your life
  9. This simple skill is worth millions, helped many become millionaires, billionaires

About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.

If you are curious about the above method and how you can apply it to your life successfully, open your email and send me an inquiry at coach@hoanmdo.com