Get Rich Quick. Possible Applications to Life and Laboratory. Disclaimer . There is probably no worse person to advise you on financial decisions, so I won’t. Advice is NOT the point of this lecture. Backing up my claim to financial incompetence. 1971 – Soda jerk $1.17/hr
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Possible Applications to
Life and Laboratory
There is probably no worse person to advise you on financial decisions, so I won’t.
Advice is NOT the point of this lecture.
1971 – Soda jerk $1.17/hr
1974 – Forklift driver & bean walker $1.73/hr
1976 – married art history major
1981 – Postdoc ($15K) instead of IBM ($30K)
1983 – LSU ($24K)
1983 – Sell house in tech boom state, buy lesser house in oil bust state for more money.
1990’s – private schools
2000’s – LU, ATHM, BLDP
1990’s and maybe 2000’s
*Vincent Corbo, Hercules…a close paraphrase, not direct quote.
One can draw strong parallels between professional opportunity and the things Get Rich Quick people advise.
Some are true, some not. Either way, GRQ schemes are a fun read that can stimulate thought.
$100,000/year is not rich (Chemistry, 20 years)
$175,000/year is not rich (Engineering or MatSci, 20 years)
$500,000/year is getting close (Chancellor)
$1,200,000/year is rich (Football coach)
$90,000/year is not rich (start with postdoc)
$250,000/year is not rich (corporate scientist)
$5,000,000/year is rich (CEO)
A rich person does not need to work another day, secure that adequate assets for his or her desired lifestyle are in place.
Thrift—deeply ingrained into our culture
“The Thrifty Housewife”
“A Scout is….
….trustworthy loyal helpfulfriendlycourteouskindobedientcheerfulthriftybravecleanreverent.”
Download from STSC website: InvestmentProfile.XLS
Investing this way at 5% yields $200,000
after a 30-year career. Big deal, but this is hardly an aggressive savings plan…and your employer (when & if you have one) will tuck away more $$$ for you through a retirement plan.
Bottom line: Yes! If you start saving early, you can retire rich at age 55 – 60. This risk-free path is available to academics, industrial scientists who never lose their job or divorce, and national lab scientists. Cool, eh?
Bad planning, worse execution.
College for kids—tuition up 100% in some states this year alone.
Living longer—sure, the house will be paid off, but it only consumes about 12% of takehome anyway. We’d miss not spending the other 88%!
Maybe you won’t live longer: pressure to do stuff before you cannot.
Got into Harvard
Will tell you he hopes to complete his education
Why he’s richer than you:
So, why? "There are probably more smart people per square foot right here than anywhere else in the world, but Bill is just smarter."
–Mike Maples, executive VP at Microsoft
Apparently, still clips coupons to save $0.50 on Dove Bars! And drives his own Mercedes!
Educational Attainment, 1910-1998(taken from http://ssocs.berkeley.edu/~olney/fall02/econ113/lect101702.pdf who in turn cites Statistical Abstract 1999, Table 1426)
Left LSU and Baton Rouge for….Akron!
Poker with shrewd Europeans and polishing the boss’ car did not work. Earns a tad more with his PhD than his wife does without one. What next?People: two case studies: what will people do for money?
It is possible to separate
research from work:
--- Jim Robinson.
Research: one of several hobbies you do for fun.
Work: what you do for money.
“If You Want to be
Rich and Happy
Don’t Go To School”Rich Dad, Poor Dad Robert Kiyosaki
When a NY Times best-selling author writes books with titles like this, it is time to pay attention. Apparently, the book was written well before Kiyosaki was rich or a best-selling author.
A little more than the traditional
“buy property with no money down” approach.
His main message: take responsibility for your own finances.
Definitions of assets, put, hold, etc. that are useful.
Lessons taught to him by his “rich dad” while his “poor dad” languished as an academic administrator/professor.
He kept great notes for a 9-year-old!
Alternative viewpoints is putting it mildly.
Assets, Cash Flow, Leverage & Optimism
A good exposure to the philosophy of money-centered people. Sociopath?
“Contempt for traditional education and the educatedThe book is almost entirely contemptuous of formal education and those who have graduated from universities. He wrote another book called If you want to be rich and happy, don't go to school? On page 64, he delights in the fact that “educated people” now “came at [rich dad’s] beck and call, and cringed when he did not approve of them.” This is a bit sick. ….. Kiyosaki takes the prize for the real-estate guru with the most tangled psyche.”
Maybe a little bit harsh—graduates of the school of hard knocks are often a little contemptuous of the well-educated. Example: Richard Nixon
(Kiyosaki) says, “...the main reason people struggle financially is because they have spent years in school but have learned nothing about money.”
I disagree. The main reason people struggle financially is bad decisions about getting an education, bad luck, too much spending, too little savings and investing, too much reliance on organizations for their livelihood, and not enough reliance on themselves.
Here, Kyosaki’s reviewer incorrectly insists on an either-or position. People ARE undereducated financially AND this is why they do the things he identifies, leading to “bad luck”.
Elements of truth, but spoken like the West Point grad & Harvard graduate he is!
As Kiyosaki points out, most people were “entrepreneurs” just 100 years ago, if you count farming.
He does not point out that most were glad to be shut of it for Ford’s factories & $5/day.
Academic life is possibly the perfect platform for carefully exercising financial creativity.
Job for life
Hobby for life
Summers to pursue “other interests”
Extremely ironic: if “poor dad” ever existed at all, he may have been ideally suited to be a rich man.
Many of the people I have seen become discontented with their financial situation are very altruistic.
Still, there are all kinds of wealth.
Think about money sooner rather than later.
Believe people when they tell you getting older costs money: kids, health, long retirements all cost.
Separate education from earning.
“Rich Dad, Poor Dad”
“Retire Young, Retire Rich”
both by Robert T. Kiyosaki with Sharon L. Lechter, C.P.A.