How to live longer, happier – practice part time for life (PTFL).

Timothy Brown

Recently, I was speaking with Dr. Milan Somborac, the founder of the Monday Morning Millionaire program and he produced this quotation: “Retirement is the leading cause of death, so let death be your retirement.”

I coined the phrase “part time for life” (PTFL) many years ago to explain the phenomenon of mature professionals (dentists) continuing to work part time, as opposed to full time, in order to stay active and to stay stimulated.

Dentists can do this. They can sell their practice today but keep their license and continue to practice dentistry part time for the remainder of their lives. There are many corporations and individual practice owners who are thrilled to have a senior experienced dentist in a part-time associate position.

The high stress level related to dentistry is in part connected to the business side of dentistry.  The primary source of stress in dental practice ownership is human resource management. Most dentists are not properly trained for human resource management. Given it is a micro/small work environment, toxic employees impact everyone – and it happens everywhere – more often that we as owners even know. Thus, turnover is frequent. Turnover is also in part due to the fact that most of the people working in dental practice are young females.

Getting out of ownership equals getting out of stress. Keep your license. Continue to work part time for 10, 20 or 30 years and watch out for retirement. According to Milan, it is a leading cause of death.

First, a thank you to all who gifted a membership or a one-on-one zoom meeting to friends and relatives. We think that they make ideal gifts. Consider it.

Next, our sincere gratitude to all members who took the time to respond to our Friday, April 8 survey about EVs. Time is an irreplaceable resource. We appreciate your involvement.

You can see our survey results below.

You can you read some worthwhile comments below.

Timothy’s contact info: ‭(416) 520-7420‬, timothy@roicorp.com

Last Saturday, Timothy Brown and I discussed a succession plan for me as CEO of the Monday Morning Millionaire program. He and I started this program together in November 2017. Soon after, he had to bow out because of demands that arose and needed his attention.

He now has them resolved and is ready to look after the Monday Morning Millionaire program together with me, and take over. He is the ideal person for that role. I am 82 years old, and Timothy is in his fifties.

Timothy is uniquely qualified to direct the Monday Morning Program. As CEO of ROI Corp. He has an exceptional understanding of business in general and professional practice ownership and transition in particular. His core competency is identifying and transferring latent value within the dental industry. His record is unmatched.

He has published hundreds of articles in peer-reviewed journals and has lectured at major conventions and universities internationally and in Canada, addressing legal, accounting, financial and health care professions.

Timothy not only subscribes to the six habits of the Monday Morning Millionaire program, he also advises and shares the philosophy with his clients, a large family, and his extended network in his spare time. His 7-figure portfolio speaks to the success of adhering to the six habits.

I am as delighted that Timothy has reconnected with the Monday Morning Millionaire program as I am confident that our members and subscribers will benefit from his involvement.

You can learn more about Timothy here.

And now, here is how  our fearless, intrepid investor made out last week and her plans for today.

In 2021 she lost $65,700 in 2021 writing covered calls.

What she did correctly was to do so in her “fun” portfolio.

Last week, the market went down 1.4%. Since our fearless, intrepid investor has a 50/50 asset allocation in her core portfolios (50% SPY and 50% TDB166) she lost 0.7% last week.

As we stated previously, this is meaningless! Investors need a long-term mindset. Twenty years from now, SPY will most certainly be up, similarly, 10 years from now and likely five years as well.

What will our fearless, intrepid investor do when the market opens at 9:30 AM today?

On April 8, 2022, from Danny Rain DDS,  Sudbury, ON, Canada

Question:

NVAX and BAC  are rated as buys by analysts. Both “INDIVIDUAL” stocks are down a fair bit. I know that you don’t advise stock picks other than in the “fun” portfolio but would you add to your position on these?

Monday Morning Millionaire Program Answer:

History shows that picking stocks does not get the results that index investing does. We wrote about that recently.

However…

… there are only two ways to beat the market . One is to dollar-cost average it and the other is to ignore one or more of the six habits about which we frequently write. One of these is picking individual stocks correctly. The latter is reliable only with hindsight!

Of 7 analysts, 2 consider NVAX a hold and 5 consider it a buy.  Of 19 analysts, 6 consider BAC a hold and 13 consider it a buy.

So, what to do?

One of our followers recently stated that our posts have a lot of redundant content. They don’t bring  something new that isn’t already on the site but just more of the same.

The reason why that is true is that our evidence-based message is as simple as it is effective. It encourages the development of the six habits which show that historically, 1.) over the long term, 2.) properly selected US market index exchange-traded funds, 3.) held in tax-advantaged accounts, 4.) in an appropriate asset allocation, have been the investors’ best way for growing savings and are likely to remain so for many years.

Investing in US market index exchange-traded funds instead of picking stocks is part of the reason for that. Stock pickers have a great deal to talk about. To listen to Talking Heads or to read what is published in any one day would take more than a month.

And the result?

Over the last 20 years, the average stock-picking retail investor earned 4.25% annually.  During that time, the S&P 500  averaged 6.06%, inflation-adjusted. The average stock-picker is 42.6% behind!

Interestingly, after fees, about 95% of professional money managers, stock-pickers all,  failed to equal the S&P 500.  

All of them think that they are above average – the superiority bias.

So, how can investors equal the S&P 500?

We can teach that to a high-school student.

Last week, the market went up 0.4%. Since our fearless, intrepid investor has a 50/50 asset allocation (50% SPY and 50% TDB166) she made 0.2% last week.

Meaningless! Investors need a long-term mindset. Twenty years from now, SPY will most certainly be up, similarly, 10 years from now and likely five years as well.

Writing (selling) covered calls is exciting because it can increase the income from your portfolio. You buy Novavax (NVAX) at, say $100, and you sell a covered call with a strike price of $110. If NVAX does not go up very much, the option expires and you get to keep the premium. If it does go up, you have a $10 capital gain plus the premium. If it goes down, the premium offsets the losses. If it goes sideways, the premium looks like finding money on the street.

From the foregoing, it looks like investors cannot lose.

But… in her “fun” portfolio, our fearless, intrepid investor bought NVAX at $226.56! That is close to the very top! NVAX proceeded to decline to a much greater extent than the premium which she received. She lost $65,700 in  2021, premium income notwithstanding.

As we stated previously, the risk of writing cover calls entirely comes from the selected security.

What will our fearless, intrepid investor do when the market opens at 9:30 AM today?

Albert Einstein said that compound interest is the eighth wonder of the world. Some writers have stated that he discovered the rule of 72 and that he considered it more important than discovering E = mc²! That could be an exaggeration, nevertheless….

A brief review of the rule of 72:

If we take the rate of return and divide it into 72 we can easily calculate how long it takes for a portfolio to double its value without adding additional cash.

Over the last 200 years, the US stock market has returned 10% annually, not inflation-adjusted. That means that a portfolio invested in the US stock market, as represented by the  S&P 500 and its former equivalent would double every 72 divided by 10 = 7.2 years. (The S&P 500  was launched in 1957.)

We can use the same formula to calculate the rate at which money loses half its purchasing power during an inflationary period.

Time is an irreplaceable resource. Our sincere gratitude to all members who took the time to respond to our Friday, March 25 survey about electric vehicles (EVs).

An important issue which this survey does not explore is the safety of EVs. EVs don’t have an engine in the front that can be pushed into the driver during a frontal collision. Rather, they have a crumple zone that absorbs much of that impact.

A while ago, a friend driving a Ford Edge, a mid-size crossover SUV, collided with a Tesla. My friend sustained seven broken ribs, a broken collarbone and other injuries. The Tesla driver walked away.

Tesla representative can tell many similar stories.

You can you read some worthwhile comments below.

Our fearless, intrepid investor lost $65,700 in  2021, writing (selling) covered calls on Novavax (NVAX) in her “fun” portfolio.

The risk in writing covered calls is entirely associated with the underlying security.

The S&P 500 rose 6.2% in  a recent week — its biggest weekly gain over the previous year and a half.  Our fearless, intrepid investor rebalanced her portfolios and took profits.

Here are her plans for today. We respect Monday Morning Program members’ time, so our posts are under 500 words and actionable.