Notes From Gordon ~ Happy New Year! Buckle Up.

Author

Gordon Phillips
January 01, 2024

Hi Gang,

Now that we all survived 2023, it’s time to look ahead to 2024.

This is the year in which various experts expect full-on ground war to begin in Europe.

Armstrong Economics’ (thus far) infallible Socrates AI forecasting system pinpoints May 7th of this year as a key, high-volatility date.

DUCK DILEMMA
That being said, it might be a good idea to get some ducks in order before then, what do you think?

But how to do that when you don’t know how many ducks you have right now?

I find that most families really have no clear idea of where they stand in the way of true financial preparedness.

Allow me to share a concept that you might not have thought of before.

I call it…

TRUE NET WORTH (TNW)
Imagine adding up everything in your entire financial world from your savings, investments, home equity, riding lawn mower, golf clubs, etc., down to the pennies in your pockets (and under the sofa cushions).

Let’s refer to this as your “financial body.”

Now lets do what medical doctors do and run your financial body through a proprietary analytical spreadsheet that I call Wealth MRI.

A report is generated showing some financial metrics that you’ve probably never seen before.

Metrics like…

Income risk: Transactional vs. passive income
 Dollar risk: The degree to which your world is priced in paper money
 Market risk: The degree to which your net worth is exposed to a major market crash.

Among other factors that a Wealth MRI forensic financial analysis will reveal is the value of your True Net Worth (TNW).

True Net Worth is the number of days that you can survive forward from today on what you have right now.

A squirrel facing a long, cold winter would understand.

“How many nuts do I have right now, and how many more will I need?”

Which begs asking, dear reader, how many “nuts” does your family have stored away to survive a long, cold financial winter?

FINANCIAL SURVIVAL INDEX
We are about to calculate your Financial Survival Index.

You can do the calculation on the back of an envelope in 15 minutes.

Here are the instructions.

1. Jot down the “fire sale” cash value of everything you own, as if you had to get rid of it all within 90 days at whatever price you could dump it for. Label this “Assets.”

2. Now jot down all of your debts including the $200 your Uncle Ernie owes you. Label this “Liabilities.”

3. Now calculate the equivalent daily cost of every single bill and expense. Multiple bills that you pay monthly by 12, then divide by 365. Now add these all up to determine your Total Daily Cost of Living (TDCL).

4. Now subtract Liabilities from Assets to get Total Net Worth (TNW).

5. Final Step: Now divide TNW by TDCL to obtain your Financial Survival Index.

This is the number of days that you can survive forward from today, with what you have right now.

Have you ever done anything like this before?

I’m guessing… probably not.

But not to worry, most people haven’t either.

“YOU ARE HERE”
I remember once walking into a shopping mall looking for a rest room.

I knew there would be one in the Sear’s store.

I spotted a large, Plexiglas map of the mall with a big red “X” labeled, “YOU ARE HERE.”

There was something existential about that sign that made me laugh out loud.

Which leaves me to ask the reader, do you know where “HERE” is, financially speaking?

Are your investments exposed to a dollar that lost a true 6% in purchasing power (inflation) last year and will certainly lose a lot more this year?

I should point out that 6% annual erosion in purchasing power will result in HALF of your savings having disappeared within 8-9 years, even sooner if negative compounding is factored in—i,e., $100,000 today could be worth around $50,000 in 2032 unless you know what to do to arrest this slow-motion tragedy.

Are your investments exposed to a stock market that—while still climbing higher today as money flows in from around the world seeking safe haven in the U.S.—will almost certainly drop like a rock when the derivatives casino finally cracks?

Do you know how to evaluate weekly and monthly candlesticks on a stock market chart to know when a market is weakening and likely to tip over? (i.e., down)

Have you diversified your savings into so-called “hard assets” that stand a good chance of increasing in value as the world flees from national currencies into tangibles?

MODESTY AND MCMANSIONS
My children’s grandparents live in a modest, 1,200 square foot home.

They paid off their mortgage years ago, they bought their cars with cash, they have no credit card or other debts, and they live modestly and frugally.

They could survive for over 3,000 days on what they have right now.

Now drive through a luxury neighborhood and note the many 4,000 square foot homes on large lots with luxury cars parked out front.

Ironically, many of these families have as much debt as they do assets and could not (from a squirrel’s point of view) survive 30 days on what they have right now.

A friend of mine once quipped that these folks are “broke at a higher level.”

AND HERE YOU ARE
In closing, 2024 isn’t just coming, it’s here.

Have you counted your nuts lately?

I would be pleased to run a Wealth MRI analysis for your family.

The current cost of a Medical MRI to detect tumors, vascular restrictions and organ blockages runs around $8,506.

The cost of a Wealth MRI to detect debt tumors, wealth restrictions and cash flow blockages costs 94% less at just $495.

Plus, for each family you send my way I’ll be happy to send you $95.

FINANCIAL DISCLAIMER
What you receive from a Wealth MRI is a detailed report showing you exactly where you stand, financially speaking, and what your true exposure is to various risk vectors (political, geopolitical, dollar, market, preparedness and situational risks).

Please note that performing this forensic analysis for your family (or small business) does NOT constitute providing you with personalized financial advice which I never do since I’m not licensed to do that.

What you do with your report would be up to you.

I MISS MY MOM
On a closing note, I was looking through some of my parents’ effects this weekend and came across something I hadn’t seen in years.

It’s a World War II coupon rationing book issued by The Department of the Army that my mom had to fill in each week with government stamps authorizing her to purchase her share of eggs, milk and meat.

BUCKLE UP
2024 has arrived.

Feel free to get in touch.

The first ZOOM is always on the house.

Gordon