Importance of Striving To Not Do Bad (The LinkedIn Campaign)

I’m a 60 year old, retired, somewhat disabled Veteran of our Armed Forces. I’m an Eagle Scout, an Appalachian Trail Thru-hiker (2,200 miles), former Reserve Deputy in the Sheriff’s Department. I am a trusted member of the FBI’s Infragard (White Hat community of cybersecurity professionals). I’ve gone thru the door with joint teams of deputies and US Marshalls to serve warrants for wanted persons while actively working full-time as Vice President and Senior Vice President roles in Fortune 100 and Music Industry businesses. I’ve held Top Secret security clearances, briefed Generals, deployed to War Zones, been injured horribly several times in the field, Graduated from elite schools at the top of my class. I’ve been neuro-psych tested so many times I can regurgitate the tests. (I passed them all, still).

I’ve led teams of people in all walks of life; military, white collar, Law Enforcement, teams so good technically anybody would put them up against any other. I’ve fought for those teams, sacrificed my own rewards and damn near my own career for some of them.

I’ve got advanced degrees in Computer Science and Finance. I’ve had tremendous impact on industries through their early adoption of technology before, during and after the .Com boom. I’ve been responsible for tens of millions of IT budgets and raised well over $100 million in funding for startups. And, I’ve made and lost ($180 million) in four days because deals signed on a Friday don’t last through a Monday when planes run into buildings. That money would have made it harder for me to be a good person so I was never that sad.

Been There, Don’t That.

I’ve worked for a lot of leaders and a few people assigned over me. For the most part, I saw what I would expect, military leaders are rock-solid having been formally trained and raised in a meritocracy and the larger the company most likely the better a leader the Ceo is. I’ve seen a lot of young entrepreneurs who will succeed because they care about the team they picked to get them there, I’ve seen old, wise Billionaires willing to spend their time with younger leaders to impart wisdom (thanks Mr. Eskind).

I’ve seen leaders and some assigned over me who had strategic vision and believe in what we were doing and knew the rewards would follow, and those who money at any cost was the norm. I’ve seen teams of leaders start health care companies with an idea that wellness should be rewarded and it works. I’ve seen new technologies absolutely storm several industries and the success those that can bring.

I’ve also worked for people that no matter what, they thought they should be rewarded because they deserved it. Regardless of the size of the business, the model, whatever, some leaders think they are worthy of what they see others get. I remind them money is the root of all Evil.

My career ended a little different than I expected. What arrogance to think what I expected would play out. Sure, I got to retire mid 50s and hike the Appalachian Trail. Got diagnosed right in the middle as you know if you have read this blog. The 4-5 years leading up to that retirement was one of heart attacks, strokes, dying in transport from one hospital to another for yet another heart surgery, monthly spine steroid injections, kidney stones, falls, seizures and failed leadership assigned over me in dealing with losing their “Tech Guy” when a deal was in the works for what they thought they were entitled to.

The past 5 years since “retirement” was spent trying to fulfill a lifelong dream to hike the AT, progressing with Parkinson’s Disease at a rate so fast it has its own sub-category of research, having an advanced, computer controlled stimulator (Medtronic Deep Brain Stimulation (DBS)) inserted into my brain. That stimulator allows me to walk, talk, eat and sometimes sleep. It has allowed my cognition to improve to a point I am finally done with the brain fog that set in after my 2017 heart reconstruction. And most important, It allows me to remain alive because without it I wouldn’t remain.

I am in all practicality a cyborg. Damn, pretty cool for a “Tech Guy” but pretty damn scary for a Cybersecurity guy. Absolutely terrifying.

Getting to this current state has been quite a journey. As soon as diagnosed with Parkinson’s my Movement Disorders Specialist (MDS Parkinson’s doctor), began the job of finding the right mix of chemicals to relieve my symptoms and help me live better. Those drugs work several ways but essentially you start with some neuro protective drug (rasagiline for me). From there as you progress, and I did fast just like I did the prior three years, they add the gold standard “levodopa”. Essentially a dopamine replacement therapy that makes it past the blood brain barrier. This helps your muscles system “move” and with Parkinson’s you really start to understand what body processes are controlled by muscle movement.

Since I was hiking the Appalachian trail and using more dopamine than usual, my MDS added several dopamine agonist drugs to the mix. These help dopamine hand around longer than normal for use. They also have horrible side effects, interactions with other medications and can cause cognitive and behavior problems. Couple them with anti-anxiety meds for panic attacks and you have one hell of a psychological profile to manage for a Type A, smart, aggressive, trained warrior who was trying to survive. Add in divorce lawyers, bosses that cared more about their own “deals” than their teams, doctors too aggressive with meds and all you can do is get by and try to do no harm. By the way, rantings on social media aren’t’ harm if they are true.

I do believe that If I hadn’t realized the meds were making me crazy and stopping them on my own, I would not have survived. Luckily I did and was able to suffer along well enough for DBS surgery, the ensuing two years of programming DBS correctly and having stimulation turned up so high I am me again. Seriously, I haven’t been this clear mentally since 2017.

I sit here now, five years retired, a life I never dreamed of, happiness, technology that has effectively “cured” me with emerging hopes of stem cell therapy that will make it permanent. I am off all pharmaceutical drugs, my heart has relaxed now that I’m not responsible for success and failure for Global IT systems that failure means stock price deterioration, failed bonuses and I feel great.

I also sit here, an old man, looking back at a great Career and knowing I can hold my head up every single day because I treated people well and tried to do the right thing. My name, my reputation are important to me because my actions are a reflection of Him and He has high expectations for me and YOU.

Be good. Be good to other people. Care about your teams, Reward people and do your damn job and you will be rewarded.

I’m done. BMI needs new leadership. If that isn’t apparent then I’m blind. The songwriters need their interests looked after not the rewards of a public company management team going to a quasi-not for profit monopoly. Want riches, start or grow a company for other rich people, don’t force a deal that sells out almost a century of history.

Oh, and I’ve warned a lot of you in the past, investigate who works for you. It isn’t’ that damn hard. Hell, give me a call and I’ll do it for you. Getting pretty good at OSINT and love uncovering Evil. Special discount to husbands in a divorce. LOL

Seriously, regardless of skill, if a person is of questionable morals or ethics, do you want them leading your teams?

I’m bored, available for speaking events, light strategic consulting, done both a lot. Thinking about a book. Want to read it?

Hike On!

DBS Pictures eeewww look away

Freedom Portfolio Income December 2020

Check out the dividend income in the Freedom Portfolio for December.

Wow what a year 2020 has been. Pandemic, economic doom, stock market drop of over 30% and I retired. Not all bad and proof that if you are financially prepared even life’s tough times can be easier.

This month is my low month for dividend income on a quarterly basis but still a fantastic month for cash incoming. All dividends are still reinvesting (except for RDS.b because of their dividend cut). My general rule is to sell any position cutting their dividend but RDS.b should bounce back nicely and it still had a good yield after the cut. Its good to have investing rules but even better to be flexible when you have put in the research.

On to the dividends:

RDS.b (Royal Dutch Shell) $333.00

EMR (Emerson Electric) $104.59

JNJ (Johnson and Johnson) $102.23

CVX (Chevron) $317.59

O (Realty Income) $60.22

ADM (Archer Daniels Midland) $110.35

LMT (Lockheed Martin) $39.72

SO (Southern Company) $260.42

CHCT (Community Health Trust) $20.02

DOW (DOW Inc.) $266.93

XOM (Exxon Mobil) $232.07

Total for December $1,847.18

What a great month. I love seeing this cash come in each month especially when I am confident in all of my holdings to continue paying their dividends and raising them over the long term.

How did you do this month?

What are your income goals and how are you building a portfolio to reach them?

Thanks for reading!

Projecting Dividend Income

Watch how I plan to grow my portfolio from $40k in income to $80k in income over 5 years. All passively.

You want to know what real freedom is? For me, it is watching my income grow while I do absolutely nothing while the businesses I own earn money and reward shareholders. The rest of freedom is pursuing a life of adventure, enjoying family or doing nothing at all. All things I sacrificed early in my career to earn enough to save enough to be retired at 55.

If your serious about living off passive dividend income in retirement, at some point before you retire you should have sat down and taken a hard look at your holdings. That hard look includes deep diving into a:

  1. Reasonable understanding of where the company’s revenue is made
  2. Where profits come from
  3. How capital spending leads to growth
  4. How much free cash flow is really available for shareholders
  5. The dividend’s coverage ratio and what that means

Once you have done that, regularly keeping an eye on what the investing community says about the stock will make more sense. If you just read analysis or pundits, you have no basis to agree or disagree with whether you should take a position or keep holding a stock.

If you’re not willing to put in the work, stick with index funds.

When you have done the work and you think you know your portfolio the next question is will the dividend income meet my future needs. To do this with any chance of success in reaching the crossover point, where your income exceeds your expenses, you must make some guess as to where you believe the income will be at points in the future.

Otherwise, you could find yourself welcoming shoppers at WalMart when you planned on being at the beach. Not a place I hope to find myself in.

Projecting that income is not an exact science. It requires variables that do not remain static over a period. You must make some assumption on stock prices, dividend growth rates and even whether you think the company can safely pay the dividend in the future. 

To keep it simple, let us look at generic numbers over a single year with a $1000 investment. Assume 100 shares of XYZ at $10 per share with a current 5% dividend yield reinvested each quarter. We want to know how much that 5% means in real dollars for the year.

In the 1st quarter, we get 12.5 cents per share for our 100 shares for a total dividend of $12.50. Those shares are reinvested at a price per share of $10.10 reflecting a 1% gain in stock price for the quarter. We now have 1.24 new shares.

In the 2nd quarter, we get 12.5 cents per share for our 101.24 shares for a total dividend of $12.655. An increase in income of 10.5 cents. Those shares are reinvested at a price per share of $10.10 for  a flat quarter. We now have 1.25 new shares.

In the 3rd quarter, we get 12.5 cents per share for our 102.49 shares for a total dividend of $12.81. An increase in income of 15.5 cents. Those shares are reinvested at a price per share of $9.9 reflecting a 1.98% loss for the quarter in market price per share. We now have 1.294 new shares.

In the 4th quarter, we get 12.5 cents per share for our 103.784 for a total dividend of $12.97. An increase in income of 16 cents. Those shares are reinvested at a price per share of $10.12 reflecting ~1% gain for the quarter. We now have 1.28 new shares.

So for the year, we project $50.94 in total dividends. 94 cents of increased income and total new shares of 105.064.

This scenario included no increase in dividend. Every position I hold has at least an annual increase of 2% with some increasing their dividend by over 10% per year. I ignore dividend growth when I project income because it isn’t guaranteed, and I like a natural conservative variable to give myself a crossover cushion. For some real numbers, because no one is counting on retiring with just $1000 of investments if the same scenario is applied.

At $10,000 invested you would have $509.40 in annual income.

At $100,000 invested you would have $5,094.00 in annual income. The first $100k is the hardest but with that income it starts growing faster and fasters.

At $500,000 invested you would have $25,470 in annual income. That is starting to cover some serious expenses.

At the mythical $1,000,000 invested you would have $50,940 in income. Probably not enough for most people to retire at a lifestyle but lifestyle is your choice.

My personal projections for the freedom portfolio in 2021 are to generate $40,436.70 in dividend income. 100% of that without any new Capital and without me lifting one finger in anything resembling work. Just the way I like my income, free of effort.

In the next 5 years while the portfolio sits and reinvests, and dividends are increased I conservatively project the Freedom Portfolio to throw off over $80,000.00 in annual income. $80k without working and even when I am asleep.

Stick around and watch how that works out for me. Maybe we can all learn something.

How do you project your income?

Thanks for reading!