Barefoot the Beetroot

Hi Scott,
 
I’m the librarian at Mornington Primary School. A Grade 5 student named Liam nominated Barefoot Kids for our book of the week. His reason was “because this book changed my life and made me want to start a business”. Now I imagine you get lots of mail from our younger generation, but Liam is a very quiet, shy student. I know it’s a big ask, but even a reply from yourself that I could show him would be such a confidence-booster.

Anna
 
Hi Anna,
 
Thank you for getting in touch. I’ll address this one straight to Liam.
 
Liam, thank you so much for getting my book into your school!
 
And because you’ve read the book, you’ll know about the secret I never told anyone before:
 
I’m actually pretty shy myself.
 
When I was your age and had to talk to anyone, I’d stare nervously down at my feet, my mind would go blank, and my face would turn as red as a beetroot with embarrassment.
 
And that’s why I came up with a little saying to help me when I got nervous. It’s called S.E.A. (Smile, make Eye contact, and Ask questions like “How’s your day going?”).
 
It really works!

Even better, the more you practise it, the easier talking to people gets.
 
Now I don’t know what your Barefoot business is, Liam, but I’m hoping it gives you the chance to spend a lot of time swimming in the S.E.A. Doing that will really change your life! 

Scott.

A Super-Simple Way to Stop Rate Rises

Hi Scott,
 
If inflation is a society-wide problem, why is our only reaction to take money from a specific group (mortgage-holders) and give it to a specific industry (banking)? I read an ABC article that suggested it would be fairer and more effective to let people stash that money in something like super (which reduces people’s spending) so it still belongs to them and can flow back into the economy through spending once the crisis has passed. What are your thoughts?
 
Doug
 
Hi Doug,
 
I think it’s a deliciously simple solution …   and it will absolutely not work.
 
Mainly, and most boringly, because the level of our interest rates – relative to other countries – determines the value of our dollar. If we keep our rates low, our dollar will likely be hit, which will make everything we import more expensive.
 
My view is that the real problem we’re grappling with is that money should never have been priced at zero. That decision – which was driven by central bankers around the world, not just the RBA – was pure madness. It fuelled a mania in housing and the sharemarket (and, in the late stages, even in rubbish like Dogecoin). The net result? The rich got richer, the poor got screwed, and an entire generation has been priced out of the property market.
 
And now you want low income earners to bail you out?
 
Because that’s effectively what would happen. Those people at the bottom of the income ladder, who are struggling with the cost of soaring grocery prices and rent, would be forced to take home even less in their weekly pay packet (because they would be forced to put more into super), so they can save homeowners’ (and their landlord’s!) backsides.
 
Good luck with that!

Scott.

You’re a Total Jerk

Scott,
 
Your answer to last week’s question from the 90-year-old man, wanting to see whether he should implement your financial plan (‘Old Dog, New Tricks’) would have to be the most insensitive, egotistical slap-back I have ever read in your column. The man is asking a question about finance, not asking for family therapy. He genuinely wants to get a sense of purpose, build his nest egg, and still feel there’s a reason to go on. Telling him to focus on his family and friends not only doesn’t answer the question ... it implies: “What’s the point of looking forward? You’re nearly dead anyway.”
 
Angie 
 
Hi Angie
 
My answer to the old fella’s question was the most insensitive and egotistical thing you’ve read in my column?
 
Hold my beer.
 
So you think the reason for him to go on is to … make more money?
 
He already told me he was financially secure. His problem – which he admitted to – is that he’s nearly dead.
 
That’s life. He’s probably not buying long-dated milk these days!
 
Yet what you got right is that he wants a sense of purpose. And that’s why my financial advice was – where it is prudent – for him to give away some of the excess money he was planning to leave in his will to his loved ones while he’s still alive. That way he gets to watch the joy and hear about the experiences his gifts bring.
 
After all, Angie, we all want a sense of purpose. Some people get it by giving away money to their loved ones in the golden years of their lives. Others get it from writing angry emails to strangers on the internet.

Scott

Launching a Class Action Against the RBA

My inbox is still melting from last week’s column on interest rates!
 
It seems that right now everyone wants to stomp on RBA Governor Philip Lowe’s spectacles.
 
One of my readers was so ‘alpaca angry’ that he’s actually talking to his lawyer about launching a class action against Phil and his funky bunch of bureaucrats.
 
Here’s what he said…
 
Launching a Class Action Against the RBA
 
Hi Scott,
 
Why is there no class action being taken out against Philip Lowe and the RBA? How can the head of the RBA make unequivocal statements (not predictions) that interest rates will not rise until 2024 and then wash his hands and take no responsibility for the trauma (financial and mentally) his words have caused? Thousands of people, myself included, proceeded to purchase property based on these statements and are now in serious financial stress. To my mind, Philip Lowe’s statements were grossly negligent and have caused serious financial stress to thousands of hardworking Australians.

I have contacted my lawyer to investigate what options are available, but I am surprised that I have not heard of any legal action. I will willingly join in any class action that might be looming. What are your thoughts?

Ben
 
So I have a couple of thoughts.
 
First, Philip Lowe deserves to be benched.
 
He is, after all, one of our most powerful and highest-paid officials, and he stuffed up right royally.
 
(And, in doing so, ‘the Guv’ actually proved something I’ve said for years in this column: no one can predict where interest rates are going … even the bloke who sets them!)

Yet what he doesn’t deserve is the ugly media pile-on that’s happening right now. Apparently, there are paparazzi camping out at his home. What juicy pic are they thinking they’ll get? A snap of Old Filthy doing his morning sudoku over a cuppa on his porch?
 
However I agree with you: as taxpayers we should hold our highly paid (unelected!) officials accountable.
 
But while we’re talking about accountability, Ben … where is yours?
 
Did you really base a significant long-term financial decision on a relatively short-term prediction from the Reserve Bank?
 
And did you even read the published RBA statements before you went in paws and all?
 
If you had, you’d have realised there was incredible uncertainty around Covid, and that the global economy was in a state of flux (which is why Phil should have known to put his crystal ball away).
 
Instead, what most people did was listen to the pundits in the media who took Phil’s soundbite and shouted it from the rooftops. The same people who are now calling for his head. It’s not financial advice, it’s financial porn, plain and simple.
 
Look, no one put a gun to your head and told you to borrow too much money when interest rates were at their lowest levels in recorded history. I’ve written about this every week for the last decade, mate! So sorry, Ben, but I won’t be joining your pity party.
 
 Tread Your Own Path!

Who You Gonna Call?

Hi Scott,
 
My partner and I are looking at combining our insurance now we are moving in together. He has always used an insurance broker, I never have. He says it gives him peace of mind in case something happens, but I don’t know if I can justify paying an extra $250 a year. Are brokers worth it?

Gabe
 
Hi Gabe,
 
So this is controversial. However, like your partner, I get almost all my insurance through a single insurance broker, who charges me a commission.
 
Yes, I pay a bit more than I would going direct. Yet, as someone who’s lost a home, crashed multiple cars, had flood damage and more (you name it, I’ve claimed it), I’ve found that insurance is all about claims management.
 
And when something goes wrong my broker really earns his money. I just pick up the phone, call him, and let him sort everything out. Reading policies, understanding what I’m covered for, talking to insurance companies, sorting replacements, handling claims ‒ he does it all for me.
 
However, only you can decide whether you’re willing to pay the extra ‘insurance’ for claims management.
 
Scott

Old Dog, New Tricks

Dear Barefoot,

I am now 90 years old and have just completed reading The Barefoot Investor. I wish I had done so much, much earlier! My family house pays for all overheads and so I am able to exist on a pension and have a small nest egg. My question is: should I go with the Barefoot investment plan at my age, as who knows what the future may bring? Recently my wife passed away and now I’m lost without her. Is it all too late for me now? 
 
Sam
 
Hi Sam
 
My condolences for your wife’s passing. I can’t even begin to imagine how hard it would be to lose your best friend after so many decades together. But I think the most important thing for you to focus on is spending time with your family and friends, not on changing your finances!
 
In fact, here’s something to think about: if it is financially prudent to do so, you might consider giving some of your inheritance away to your loved ones now. That way you get to see the good your money will do, and connect with your grandchildren and great-grandchildren!

Scott.

New Vanguard Kids’ Account

Hi Scott,
 
Vanguard has recently released a new product, the Personal Investor Kids account. It starts with as little as $25 and offers a regular savings plan. However, Vanguard ETFs are not available within the account, only their managed index funds. Considering that managed funds are generally outperformed by ETFs, is it still worth creating an account for my five-year-old son?
 
Lina

Hi Lina,
 
Your question makes me feel like I’m at the breakfast table at 5am.
 
It’s like you’re my two-year-old arguing that his Wheaties taste better in his favourite Bluey bowl. (I’ve had this argument way too many times.)
 
Lina, you are buying exactly the same index, and the exact same stocks. In fact, Jack Bogle (who founded Vanguard and pioneered index funds) favours managed index funds over ETFs, as they are less prone to trading.
 
What matters is that you invest. And that you then casually reinforce the investing lesson by reminding your five-year-old of all the companies he owns shares in (“You’re a part-owner in Woolies … and Coles … and Macca’s!).
 
Go on, plant that apple tree!

Scott.

My Sister is a Leech

Hi Scott,
 
My older sister is 41 and still heavily dependent on my retired parents. She recently lost her job and has no savings, and also has mental health issues. My parents keep bailing her out when she runs out of money, but I’m concerned they are now using their retirement funds for this. She won’t take steps like reading Barefoot to help her out of her financial funk, and when she does have money she blows it on takeaway food and online shopping. How can my parents stop enabling her and help her become financially independent at such a late age?
 
Tanya
 
Hi Tanya,
 
Here’s how I’d look at it:
 
Your parents and your sister are in a beaten-up old Kingswood on a long, bumpy drive.
 
None of them are paying any attention to where they’ll end up … they’re just glad the old banger keeps on keeping on.
 
You’re not in the car with them, Tanya.
 
So what can you do?
 
Three things.
 
First, show them where they’ll end up: your parents’ money will eventually be gone (even if she gets an inheritance after they pass) and your sister will likely be stone cold broke.
 
Second, offer to help your sister help herself (again), perhaps by referring her to a financial counsellor or working through the Barefoot Steps with her.
 
Finally, let everyone know that you will not be taking your parents’ place in the driver’s seat when the old banger runs out of juice!

Scott

What’s Next for Property Prices?

The Reserve Bank (RBA) is in full arse-covering mode.
 
They had one job to do: keep inflation (that is, prices) from rising out of control … and they failed.
 
 And, now inflation is running rampant, the RBA has no other option than to keep jacking up rates each month to try and bring it down.
 
Yet it gets worse.
 
As a result of their previously terrible forecasts (“no rate rises until 2024 at least”), right now many Aussies find themselves paddling on a boogie board.
 
And this year they’ll look up and see a tidal wave approaching them: the fixed rate period is about to end for one in four home loans …  causing their repayments to go from 2% to 6% (or higher).
 
Wipe-out!
 
Again, despite all this, the RBA has to keep hiking.
 
The current thinking is that the RBA will continue pushing rates higher until something snaps in the economy and forces them to paddle in the foam for a while.
 
So, the $64 million question is: what will break, and when will it be?
 
To find out, this week I decided to talk to one of the few experts who accurately predicted both the COVID boom and the subsequent fall in the property market: Christopher Joye, the founder of Coolabah Capital, who manages $7 billion of fixed interest assets.
 
“So when do you think the housing market will break?” I asked.
 
“What do you mean ‘when’? It’s already breaking!” he told me.
 
“Across the five capital cities, index prices are down 10% right now, and they’re falling at more than 1% a month. So we are one month away from the biggest losses on record in 40 years.”
 
Back in October 2021 – before the RBA had started hiking – Joye stuck his neck out and suggested that property prices would fall between 15% and 25% because the RBA would be forced to hike.
 
Today, he has three forecasts:
 
First,  he believes the RBA will hike three more times before they pause and paddle.
 
Second, the impact these rate rises will have on the economy will be widespread and painful.
 
(I agree.)
 
Finally, property prices will continue to fall at least another 5% to 10%, which would be smack bang in his original forecast.
 
Look, it must be said that I have no crystal ball, and neither does anyone else. 
 
Still, even a grommet in floaties understands there had to be consequences for going on a borrowing binge when rates were at all-time historical lows. This year we’ll find out just what those consequences will be.

Surf’s up!
 
Tread Your Own Path!

The Christmas Miracle

Hi Scott,

I bought your new book for my nine-year-old son. It was Christmas night, and putting him to bed was proving challenging. I thought I had tucked him in for the night, but he stayed up in his room reading your book. At 9pm he got up to “get some water”, and renegotiated his weekly chores for more money. He came back out at 10.30pm to tell me he wanted to start a business making greeting cards and could we talk about supplies. I considered confiscating the book until morning, just to get a good night’s sleep. Still deciding if this was a Christmas miracle or nightmare!
 
Demmi
 
Hi Demmi
 
Oh, it was definitely a Christmas miracle.    
 
On the one day that’s totally focused on getting, your son was learning about working, investing and (if he stayed up late enough reading) giving.
 
Let your son know that I think his greeting card business is a goer. Fact is, Aussies spend a mind-boggling $500 million on cards every year … we’re the third-largest purchasers of cards in the world. Yet most are lame, and cost way too much. Your son will make cool cards.
 
Congratulations on having a Barefoot kid!

Scott

Help, My Dentist Wants My Super!

Hi Scott,
 
We have been blessed with seven kids, some of whom have unfortunately not been blessed with straight teeth. Blimey, $7,500 for braces is no walk in the park, especially when you start multiplying it by three, four or more! Apparently, in some cases you can gain early access to your super for compassionate reasons. Do straight teeth fall into this category? Otherwise, unless I sell a kidney, there is no way I can come up with the cash. I’m 40 and have about $265,000 in super. Is it worth accessing my super early?

Dennis
 
Hi Dennis,
 
Right now I’ve got my mouth open and I’m saying “aaaah”.
 
The rules for a compassionate release of super are as follows:

• To treat a life-threatening illness or injury, or

• Alleviate acute or chronic pain, or

• Alleviate an acute or chronic mental illness. 

That all seems fair enough, but I don’t know how little Benny’s braces would apply to any of these.
 
However, I spoke to the ATO (which administers the applications) and they told me that last year 9,700 individuals applied for compassionate release of super for dental treatment expenses, and 82% were approved. Out of those approved, 9% were for a dependent child’s dental treatment, which could include braces.
Uh-huh.
 
So what are my thoughts?
 
First, with seven kids you know you’re setting an expensive precedent: if one kid gets a Hollywood smile, they all do, right?
 
Second, each time you dip into your super, you’re killing off the power of compound interest (plus potentially paying tax on the lump sum). In the end, it’s not going to cost you $7,500, it’s going to be something likely $30,000, or even more.  
 
Finally, this question has given me a serious toothache.

Ultimately it’s your decision, but I’d look at every other option than raiding your super. And if you do, steer clear of these groups that have sprung up to help people access their super. Some of them charge as much as $800 to “help” you apply for the compassionate release of super. Yet it’s a basic friggin’ form that anyone can fill out in the time it takes to floss!
 
Keep smiling.

Scott

You’re a Joke, Barefoot

Barefoot,
 
You are a joke. Telling people to put their money into a savings account while the fake CPI numbers are off the charts with inflation! The real CPI would be unimaginable. Inflation is blatant central banking and governmental theft. Case closed. If you really want to help people, teach them about sound money, like the gold standard. You’re only slightly better than the fake news financial pundits on MSM (mainstream media). Our currency is completely manipulated by the RBA and government policy. FIAT is garage. Stop brainwashing the public with your Keynesian bulldust.
 
Luke
 
Hi Luke,
 
It sure is nice to be back at the crease … and the first ball is a bouncer aimed at old Barefoot’s head!
 
So I’m guessing you made a typo when you said “FIAT (as in government-backed currency) is garage”. I’m sure you meant to write “garbage” but I’m going to run with “garage”, because the savings strategy in the Barefoot Steps is all about having a getaway car ready for when life happens. It’s not about a financial return, but a psychological boost. And it works.
 
Now, let me take a swing at a few of your deliveries:
 
First, gold-bugs like you (and their children, Bitcoin bros) believe it’s only a matter of time before the world goes to hell and we end up with hyperinflation, like in the Weimar Republic in 1920s Germany.
 
And that could end up happening.
 
However, for me, the world is far too complicated to bet on any one binary outcome, much less waste what could be decades of your life waiting around for it.
 
Second, you can live your life believing that the powers that be are manipulating and lying to you.

Yet that’s not a worldview that equates to happiness, sunshine and cupcakes.
 
Finally, since the dawn of time capitalism has worked, and that is the driver of the Barefoot Steps: you systematically save and invest in profitable businesses and hold them for the long term.
 
Is that all too idealistic for you?
 
Maybe.
 
Yet which outlook leads to a more peaceful life?

Scott

The Princess and the Plague

My seven-year-old son was having a bad day.
 
Not only was it the last weekend of the school holidays, but his little sister was hosting her fifth birthday party — a princess-themed party with dress-ups, sparkly shoes, and lots of fairy bread.
 
“The party is all girls, Dad!” he cried.
 
“Well, we’re having a princess-themed piñata, and with your cricket skills you’ll absolutely dominate that, champ”, I said, trying to cheer him up.
 
Yet it was no use. He huffed and puffed, and buried his head under his pillow.
 
“Trust me, mate, in ten years’ time, you’re going to love hanging out with all those girls”, I assured him.
 
At that point he looked up from his pillow and scowled at me like I was Cinderella’s Wicked Stepmother:  
 
“No way, Dad. Girls are BORING!”
 
Okay, so my son was doing what we all do: extrapolating the recent past well into the future.
 
And, financially at least, last year kind of sucked:

The Reserve Bank yanked interest rates by 3% (and they’re still yanking), and both the share market and property prices dropped by over 5%, with homes falling at their fastest pace since the GFC (and they’re still falling). Bitcoin was absolutely mauled, falling over 60%.
 
So the sixty-four-million-dollar question is: will things continue to suck in 2023?
 
You probably have a hunch.
 
And that hunch about the future will likely guide the decisions you make today.
 
Here’s the thing though, very few people ever put their predictions under the microscope … and those that do are shocked at how bad they are at it – even highly paid investment managers.
 
So right now I want you to make — and track — your financial predictions for the year ahead. Specifically, spend a moment now thinking about where you think housing, shares and Bitcoin will be at the end of the year.
 
Then take out your phone and repeat after me:

“Hey Siri/Hey Google/Hey FBI,
 
“On the first of January 2024, at 9am, remind me of the following predictions I made today:
 
“Aussie shares will go up/down XX%.

“The Aussie housing market will go up/down YY%.

“And Bitcoin will be trading at $ZZ.”
 
It’s easy to be a hero in hindsight (“I knew 2023 was going to turn out like that!”), but much tougher to do it in real time. So go on, do it now!
 
Oh, and to his surprise, my son ended up having a great time at the party. However, 24 hours later we received some grim news — it turned out that one of the princesses had the dreaded plague. The day before their very first day of school! Who would have predicted that?
 
Tread Your Own Path!

You Can’t Write, Barefoot!

Hi Scott,
 
You really need to employ an editor for your writing! Your articles read like you dictate them, without any thought to sentence structure or punctuation. I don’t mean to be rude, it’s just that I’ve been an editor for 30 years and I’m a stickler for good writing!
 
Wendy
 
Hi Wendy,
 
Throughout my career I’ve had many professionals give me similar advice.
 
In fact, legend has it that a publisher turned down the original Barefoot Investor book because, and I quote:
 
“He writes in one-sentence paragraphs!?”
 
How infuriating. And they were right, of course.
 
Being a wordsmith, you’d know that whenever someone starts a sentence with “I don’t mean to be rude” … they’re about to be rude!
 
So, Wendy, I don’t mean to be rude, but The Barefoot Investor went on to become the bestselling book in Australian publishing history, one infuriating sentence at a time.  

Scott.

Merry Christmas

Scott,

Your advice has literally saved my life. After 11 years of losing everything in a violent relationship that led to multiple hospitalisations, I am now on an upward trajectory and have a safe place to live. I had no reason to stay alive except your advice and the personal stories of others who had been marginalised. Your book gave me strength. Although I have severe PTSD, I know that I can overcome this too. Your books are always my go-to gift. Merry Christmas!

Helen
 
Hi Helen
 
Your message of strength and resilience is what we all need to hear at this time of the year.
 
Here’s to you finding your safe space.
 
Merry Christmas to you, Helen, and to all the Barefooters out there.
 
I’m taking school holidays off (as always!) and will be back in February 2023.

Scott.

Help! A Duffer Got Me Up the Duff

Hi Scott,
 
My partner and I have just found out we are pregnant. We have only been together six months and had our first financial Date Night scheduled for the weekend following the news. It has definitely not been ideal! While I don’t have much in savings, I do have an apartment and a car. He has neither assets nor much in savings: a total of $7,000 in his account and last night he told me he wants to buy himself a bike worth $1,300! I am freaking out about combining my assets with someone who is financially irresponsible, particularly while I am pregnant and then on maternity leave. I know you advocate sharing bank accounts, but are there instances when they should be kept separate?

Narelle
 
Hi Narelle,
 
Congratulations on your news!
 
Now, I don’t know anyone who’s ever been fully prepared for their first child. It’s a shemozzle from the get-go (and then you have another one).
 
You sound like you’re a few financial bases further on from your partner, which is a good thing, but don’t write him off yet.
 
My advice?
 
Do the Barefoot Date Nights, starting next week.
 
The first Date Night gets you to set up a bank account. Here’s where you have your first of many honest conversations. Let him know that you’re not going to share a bank account with him right now, because you need to protect yourself and your baby financially. 
 
Then explain that the way to prove he’s committed is to follow the Barefoot Steps. They’ll not only keep you on the same page, they’ll guide your new little family to financial safety.

Scott.

I Gave My Parents the Best Christmas Present Ever

Last year I bought my parents the best Christmas present ever.
 
It’s called ‘Storyworth’, and it’s a really cool way to get people to tell their life story.
 
Once a week, Storyworth emails my parents a question that inspires them to write, like:
 
“What is one of the funniest things you’ve ever done?”
 
“Did you have any pets growing up?”
 
“Where were you at the moon landing?”
 
They reply to the email, and then at the end of the year their stories are bound together in a printed book to keep and treasure forever. Or at least that’s the guff on Storyworth’s sales page.
 
Unfortunately, my old man didn’t really take to it.
 
Storyworth: “Where were you at the moon landing?”
 
Dad: “At home watching it on TV.”
 
It was shaping up as not so much a book as a pamphlet.
 
My mother, on the other hand, took to it with gusto. Her Storyworth will probably be a trilogy!
 
Now, Storyworth is really just a simple way for Boomers to write their memoirs … one emailed question at a time.
 
But you, dear reader, are probably not as old as my parents.
 
In fact, you’re actually living your life right now. So what will your story be?

The key to making it a blockbuster – and not Groundhog Day – is working out what matters most.
 
The fastest way to do that is what I call the ‘funeral test’:
 
As we approach Christmas, put down your phone and spend a few minutes thinking about your own funeral. Many people (men in particular) spend much of their lives pursuing things that look impressive on their resumé: Fancy titles. Money. Power. Respect. Status trophies.
 
However, the person delivering your eulogy won’t talk about the car you drive, the title you attained, the balance of your bank account … or any of the other things society has you chasing.
 
Instead, they’ll talk about the kind things you did. The courage you showed. The difference you made.
 
Our entire lives are a story. Make yours one worth reading about.
 
Merry Christmas!
 
Tread Your Own Path!

I’m Going to Lose My Apartment

Hi Scott,

I’m at risk of losing my apartment! I am $16,000 in arrears on my loan repayments, and the mortgage is more than I could sell the house for. I have zero credit rating due to blown-out credit cards, and the mortgage is for 30 years, taking me to age 77 before it’s paid off. I can travel on public transport with my work so I’m thinking of selling my car (worth around $5,000) to build up my Mojo and then start knocking off some smaller debts, as you suggest in your book. Is this a good first move?

Lauren
 
Hi Lauren,
 
It’s like you’ve walked into my office bleeding all over my carpet, and you’re asking for an aspirin.
 
This is serious. It’s time for surgery, not solubles.
 
Here’s a list of priorities:
 
First, cover the essentials: food, electricity, gas, and fuel/fares to get to work.
 
A very close second is securing the roof over your head.
 
Third, deal with everything else, including your credit cards.
 
Finally, should you sell your car? Maybe, but only if you don’t really need it. Still, selling the car will save you on rego, repairs, insurance and petrol. Plus, having $2,000 in Mojo is an awesome psychological buffer, and you could use the $3,000 to buy some time with your bank.
 
Then again, I don’t really know the full picture. So please call the National Debt Helpline on 1800 007 007 and speak to a financial counsellor, who will help you work out a game plan.

Scott.

Barefoot Got Hacked!

Hi Scott,
 
Have you been hacked? Recently I was tagged by ‘Scott Pape’ from a Facebook page congratulating me on being one of 20 people chosen to ‘win $1,000’. According to a Facebook user called ihack on this page, all I had to do was to ‘follow a few simple steps’ such as clicking on the link to the ‘official website’ and registering my credit card details. I have reported the post, but I also wanted to bring this to your attention.
 
Sarah
 
Hi Sarah,
 
Yes, this is one of the many Facebook scams that target me, or more specifically my followers.
 
Let me be crystal clear:
 
I will never contact you via social media, and for a very good reason: I can’t.
 
You see, my long-serving assistant controls all my social media profiles and I don’t have any of the logins. Honestly, I spend zero time on social media.
 
As in none.
 
Finally, Sarah, if anyone actually fell for this scam it’s a sign that it’s time to delete their Facebook account. After all, the scammer’s profile name is ‘ihack’?!
 
Get off the grass!

Scott.

My Husband Won’t Let me Stop Working, Even Though We’re Worth $7 Million

Dear Scott,
 
My husband is in his 60s and happily retired. I am in my mid-50s and still working. We are childless. We have nearly $7 million in assets (including a paid-off house worth about $1.5 million), our dividends are about $500,000 a year gross, and I want out. He is concerned that we’ll run out of money if I stop working. I just don’t know how to sit down and work out when ‘enough is enough’? How do I get my husband to see my point of view?

Christina

Hi Christina,
 
Your question reminds me of a legendary story by John Bogle:
 
“At a party given by a billionaire, author Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds: “Yes, but I have something he will never have – ENOUGH”.’
 
The same could be said for your husband. You could stop working today! With no debts, and $500,000 passive income a year, you have more than ENOUGH.
 
It sounds like you need a Barefoot Date Night. And if he still doesn’t listen to your concerns, you could gently tell him you could live off $250,000 a year … which is what you’d get if you divorced him. Not that you ever would, of course.

Scott.