Two Cash Flow Levers

Revisiting the Two Levers Philosophy of Cash Flow Management

One of the major lessons I’ve tried to teach is that building your net worth comes down to two levers: Cash in and cash out. That’s it. That is the entirety of the game when you peer past the distractions and gaze into the heart of the mathematical reality. From a financial perspective, every action you take for your career or business ultimately only matters in so much as it someday serves to exert force on one of those levers so that more cash is flowing in than is flowing out, leaving a surplus. It sounds so simple but when you see things through the focus of this particular lens, you can more quickly identify the actions that are likely to have an outsized effect, both for good or bad, on net worth.

President Obama Foreign Tax Increase Proposal

About That Proposed One-Time $280 Billion Tax on Foreign Corporate Profits …

President Obama’s administration has announced that he wants to impose a one-time tax levy of up to 14% on the $2 trillion in foreign profits American companies have built up and not repatriated in exchange for making repatriation on future foreign profits that were subject to at least a 19% tax rate tax-free, encouraging domestic…

JP Morgan Benefits of Saving Early

The Power of Compounding, Student Loan Debt, Communism, and Stealth Wealth

A friend of mine, a nuclear engineer, once explained that he doesn’t bother to contribute to forums or message boards when the topic of nuclear energy is brought up anymore because people are irrational about it, interested in their own confirmation bias rather than learning or having an honest discussion.  Almost everyone I know working in…

US Corporate Tax Form

A Basic Overview of Corporate Inversions

There has been a lot of talk over the past few days of corporate inversion.  Corporate inversion happens when an American company changes its domicile to another country by merging with a foreign entity.  Inversions have been occurring at a rapidly accelerating rate.  Pfizer attempted one of the largest inversions in history with the AstraZeneca merger that…

Don’t Silent Trust Funds Constitute a Massive Loophole in Financial Aid Calculations?

My morning was spent reading the New Hampshire Bar Journal, Winter 2010 edition because I was interested in a piece by Joseph F. McDonald, III called Migrating Trusts to New Hampshire: The “Why” and the “How“.  New Hampshire, along with a very few other states, allows the existence of something known as a “silent trust” or “quiet…

Net Worth and Income By Education Level

Household Income, Net Worth, and Unemployment Rates By Education Level

The most recent statistics on household income, net worth, and unemployment, sorted by education level, are really interesting.  Following our discussion about the splits that have emerged along geographic fault lines in the electoral body, I thought it would be important to highlight the economic differences and how enormous the income inequality is for the…

1924 Income Tax Payers

The Top 14 Federal Income Tax Payers of 1924

In Wealth and Democracy: A Political History of the American Rich, Kevin Phillips looks at the biggest Federal income tax payers shortly after the income tax was introduced.   Taxpayer Taxes in 1924 Dollars Taxes in 2012 Dollars John D. Rockefeller (oil) $6,278,000 $84,249,292 Henry Ford (autos) $2,609,000 $35,012,170 Edsel Ford (autos) $2,158,000 $28,959,856 Andrew Mellon…