Tag Archives: clean sport

High Finance

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2016-09-24-10-14-55Keep your ears open this week. There will be a rare opportunity to learn about finance.

For my international friends, many of the American techniques (in the news) are available in your home countries. I have been applying finance, across four continents, for more than 25 years.

2016-09-25-18-48-42The overall financial system works great. However, when I try to explain certain shortcomings to my friends, their eyes glaze over and I lose them.

I wish I was more skillful.

Whether your favorite billionaire is a Cuban, a Koch, or a Buffett, we can learn a lot from insiders. A constant refrain from wealthy insiders is “complexity creates opportunity for the system to be gamed for economic benefit.”

Finance is a complex system. The system has been gamed extensively.

  • Offshore accounts (Panama Papers type stuff)
  • Thinly-capitalized investment vehicles, with lots of debt
  • Applying non-cash losses today, while deferring cash gains to tomorrow
  • Receiving preferential tax rates on gains associated with financial work
  • Using trusts to avoid estate and generation skipping taxes
  • Using special accounts to shelter income and gains across generations
  • Income reclassification to avoid income and payroll taxes

If the collective wants to run the system like that then I’ll bow to its will. However, I’m not sure the collective knows what’s up.

2016-09-28-10-43-49-1Like professional sports, my beef isn’t with the system. What irks me is the lack of integrity when insiders pretend the system is different than reality. The politics of the people I named above are different but their observations are often similar.

I’m grateful I can explain my personal reality without fear of banishment or loss.

Living a life you can disclose saves a lot of suffering.

Can’t Be Bought

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bearLooking forward to 50, I will find myself with 10, 7 and 6 year olds living under my roof. Those are great ages to accompany a 50-something man as he explores the world.

There remains a lot to look forward to.

The key advice that I give myself, and offer you, is to approach life with the understanding that you can’t be bought.

The reality is, often, we can be bought. If that describes your current position then keep your mind open to the possibility of increasing your price until you remove it all together. That’s what I’ve been working towards for the last 20 years, or so.

What’s your price?

I must remember the dissatisfactions have come from letting money influence my life choices. I’ve taken on assignments because I thought I should, rather than because they fit my principles. I’ve sustained a double-whammy when those assignments took me away from the people closest to me.

What are better principles to guide my thinking?

  • Lean towards marriage, family, friends, local community – let’s call these Core People
  • Share experiences with Core People
  • Pay attention to spending that has an immediate beneficial impact – my highest utility spending is childcare that enables me to share experiences or spend time alone
  • Aim to help all people – keep broadening my circle of altruism
  • Set aside time for continuous simplification – automatic bill pay, empty time in my schedule, reduced admin, streamline possessions
  • Don’t pay for luxury – adversity makes fond memories

Every day offers a chance to turn toward my principles.

The Body You Want

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When my wife was a teenager, she really wanted curves.

coach_monsyThings worked out.

My teenage desires were different, but common. I wanted to be jacked.

gordo_crunchThat worked out too.

By the time we both got exactly what we wanted, we wanted something else.

We wanted to be whippet skinny so we could run fast.

We wanted to look like tall, but ripped, 14-year-olds!

G_WhipThat worked out, again.

I spent twenty-five years only to get right back where I started.

I noticed that there is an enduring feeling of my body being slightly unsatisfactory.

Once I noticed this pattern with my body, I saw it elsewhere.

Personal safety, other people’s driving, my house, my finances, my life situation… In many situations, there is a slight feeling of unsatisfactory.

I’m always striving to attain satisfaction that’s is just-out-of-reach.

As a young man, I might have seen striving as a good thing. My drive for improvement, my competitive urges, a desire for self-improvement… we have lots of names for the feeling.

Some cultures call it misery.

See what it feels like for you.

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When I work with others, we use a simple technique.

  • Write down what will make you satisfied.
  • Write down what will make you less afraid.
  • Write down what will make you feel secure.

Out of your list, choose one thing and work towards it.

Work slowly, pay attention, write things down.

Give yourself at least 1,000 days.

Ten years might be better.

You might get there quicker.

With my body, I didn’t start to notice my pattern until I’d been at it for twenty-five years!

With finances, I was lucky, I saw my pattern after a decade, took a leave of absence and enjoyed my first retirement.

++

The fact that the lesson took a long time was helpful.

Good things happen slowly.

It’s tempting to short cut the process via cosmetic surgery, performance enhancing drugs, or cutting corners (fraud, tax evasion, deception).

Short-cuts rarely work because we fail to notice the slightly unsatisfactory feeling is following us everywhere,

My victories didn’t work, either. My successes left me wanting more and the feeling followed me around.

++

So I tried enjoying myself…

Pleasure can temporarily mask the unsatisfactory feeling and many use drugs, alcohol, fatigue and other techniques.

The trouble is… the associated hangovers are increasingly unsatisfactory as I age.

What to do?

If you can see the unsatisfactory nature of things then you might ask “who’s not satisfied?”

Once I could see the “unsatisfied person” it was easier for me to decide he wasn’t going to run the show.

At least, some of the time.

😉

Hometown Hero

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820My buddy, Justin Daerr, won Ironman Boulder this month. Even bigger, the ladies at my health club have started chatting about him!

He’s truly made it.

Not many people make the transition from average to champion. I was along for the ride.

epic_konaIn October of 2004, Justin came out to Hawaii for a camp that we were hosting. He had a big week of training and finished third in his age group in Kona. I didn’t know it at the time but October 2004 marked the high-water mark of my athletic career.

hawaii_run18 months before that camp, Scott Molina asked me, “What if that’s it?” At the time, I replied, “There’s always more.” Scott was a little early with his question but it was a good one.

What’s next?

After Justin became really good, he put in another 10,000 hours to become great. It’s the profile of a clean athlete, many years of plugging away. No quantum leaps.

runI like to focus athletes on 1,000 days of effort. After 1,000 days, of racing pro Justin was going far faster but didn’t have a whole lot to show for his efforts. He was a long way off the top athletes and, like me, only competitive over long distances.

The link in the paragraph above shows J’s results. He was speedy for a long time. Thing is, everyone else at his level is speedy too! Eight years of consistent sub-9 Ironman times. That’s really fast, for a very long time.

How do I measure my return on investment?

…is a question we should ask

…especially about time we will spend

Absent conscious effort, we will default to the values of our community. My athletic community values vanity and victory. These values rule what I see around me and lead to athletic errors.

As a champion, expectations and self-image change. My champion pals, closer to my age, experience pain with the inevitable transitions that life brings. Whenever that transition happens, I hope Justin keeps what’s best from the last decade.

  • He was willing to inconvenience himself to do the right thing.
  • He persisted in the face of evidence that he might not make it – a good lesson for me to re-learn!
  • He never mentioned the slings and arrows that were tossed at him. Justin’s non-response made me a better person.

These are the good old days.

Remember to enjoy them!

Vanity And Victory

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Kids have an amazing capacity to reflect and absorb the world around them.

I can see this ability, most clearly, in how they pick up the phobias and idiosyncrasies my spouse. With regard to my own traits, I see my strengths reflecting in the kids. By the way, my wife sees the same thing – just reversed.

There is a great scene in the movie, Parenthood, where Steve Martin exclaims, “I just can’t figure out where he gets this obsessive behavior from!” I think about that quote a lot and smile at myself. I own obsession in our household.

As an elite athlete, I valued physical power, domination and winning. You can see these characteristics expressed in other fields (finance, business, perhaps the military). These values have strengths and weaknesses. For a young person, they help you get a tremendous amount of work done (good) but they can leave you blind to the feelings of others (less good). Lacking empathy isn’t always a bad thing, say if you’re combat infantry. However, when that value flows up the organization, it can lead to harassment and corruption.

Over the last two years, I saw the risk of maintaining my values of vanity and victory. I became aware of corruption and scandal throughout the lives of my peers. We always tell ourselves that we’re different but the evidence was so overwhelming that I had to admit that I was fooling myself. Elite performance is a high risk field for ethical strength.

Most athletes sort the world into fast/slow and fit/fat. This differs from business, expressed as rich/poor and beautiful/ugly.

I get resistance when I point these splits out of people (they are obvious in my own thinking). If you can’t see them then listen to other people talk about individuals with mixed characteristics. For example, fast/fat and slow/fit create confusion in athletic populations.

Back to the start of this piece – my children learn little from what I say but they learn most everything from what I do. Bringing them up in a household that prizes winning, and looking good, above all else might not be the best way to play it. They’re going to get plenty of that in the local Boulder community.

Widening the net, consider an individual that achieved the difficult task of creating a lot of wealth. If your #1 value (expressed in peer admiration) is wealth then you are setting up a conflict with your kids, who crave your admiration. If they reject you then they might be protecting their self-image from realizing that they can never be successful on the terms you prize. Look outside your family for examples, they are easy to see.

Millionaire, Champion, CEO… these are difficult to achieve – you deserve respect for the work required to achieve.

  • Achievement become identity
  • Identity becomes values
  • Values become skewed
  1. Remember that the value lies in the work, not the achievement
  2. Goodness requires neither beauty nor money
  3. Listen to how your friends speak about others
  4. Consider if you may need to adjust your friends

As always, I’m talking to myself, not you.

Spot Testing Is A Waste Of Money

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I read that US Cycling is going to start a whereabouts and spot testing program for age groupers.

Perhaps they don’t realize that many of the top athletes (certainly in my AG) spent most of their adult lives successfully avoiding such testing?

Here’s what might work…

Have an elite licence and want to collect prize money at any race, or compete at prestige events (National or World Champs), then you contribute, say, $1,200 per annum towards a full bio passport.

Have an amateur licence and want to race prestige events then you contribute $250 per annum towards a blood bio passport.

An up-coming piece on Endurance Corner will address common objections that we hear. I’ll tweet that up, when live.

Pay attention to the people that say it can’t be done, or isn’t necessary.