Are Systems Inherently Fragile or are they Broken - CrowdStrike | Economies | Politics | Health

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
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Just wakin' up in the mornin', gotta thank God

I don't know, but today seems kinda odd

No barkin' from the dog, no smog

And mama cooked the breakfast with no hog

Ice Cube ~ It Was a Good Day

Fragility - Vantage Point: CrowdStrike (CRWD)

CrowdStrike Holdings Inc NASDAQ: CRWD

I was just wakin' up in the mornin' and I already has a few messages. Computer screens around the world were BLUE, literally, and companies were feeling the BLUE. They were finding out that their businesses were coming to a screeching halt. Airlines could not fly, employees could not login, and the government could not operate. The news was a "normal" update from the cybersecurity company, CrowdStrike, contained errors and had disrupted how Microsoft computers were operating. Ahhh who cares. Well, I like to put things into perspective by providing some context. Roughly 70% of computer systems run Microsoft software and I've recently heard CrowdStrike is the endpoint detection solution for a majority of companies. For me directly, it meant that I was not able to log into my company laptop. I had two simple takeaways from this event:

1. Systems are Fragile - It's amazing that one faulty update, that happens frequently, brought companies and their systems down. How does that happen??

2. CrowdStrike's Reach - I know CRWD is big, but I felt their reach firsthand

Value Trading - I've been watching this stock for quite some time and used this opportunity to buy some options in CRWD as the stock fell hard and fast Friday. The day went by and finally at 3:45 I received a message on how I needed to fix my laptop to get logged in. Then strangely I saw a message saying that I had purchased some stock in CRWD. But I had not placed an order? Remember when I said that I had been watching this stock? Well, I had an "open" order that basically would be triggered if for some strange reason CRWD were to drop to levels I thought were worth buying. Maybe I believe that systems can be fixed just like that update I received. 

Fragility - Vantage Point: Economies and Ecosystems

I have often written about the boom then bust nature of economies. In the economic world we call this growth and then recession or inflation and then deflation. The question is why does this happen? Is the system fragile, are ALL systems fragile -- or is the system broken? I'm not here to truly answer the question today, but I wanted to share this question after watching the CRWD issue bring businesses to their knees. From an economic perspective:

1. Economic Fragility - Will debt bring the US to its knees?

    OR

2. Economies Inherently Broken - Is this part of the regularly scheduled program?

How about our crazy weather. For the first time, in a long time my old city Chicago was impacted by a tornado that touched down. Shingles flew off my roof of the home I still own there and then at my current home I think I heard my howling from the fast-paced winds as the house shook. From an ecosystem perspective:

1. Ecosystems Are broken? - Is the rapidly changing climate going to continue to erode coastlines, cause houses to fall of mountainside cliffs, tornados to touch down in the Midwest and cities to flood around the world?

    OR

2. Ecosystems are Fragile - Are systems inherently fragile and this is how it is and will always be?

Fragility - Vantage Point: Politics

I'll let you fill in the section. Is the system broken or is politics inherently fragile? When the US, the superpower of the world, sees an assassination attempt of a former president during a campaign -- are we really just like the rest of world and ALL politics is fragile? Or have we gotten to the point where the system is broken.

Fragility - Vantage Point: Health

Finally, what better sums up fragility than health. I'm watching President Biden on the campaign trail and compare what I am seeing to my experiences with my aging parents. Is that what we are all thinking? This week, I listened to a neighbor describe her husband's response to chemotherapy as he battles cancer and recalled how that hit a similar tune to experiences in my family. 

I've read and continue to follow the stories around Nate Robinson's health. He was literally called 'Superman' as the 5'9 former NBA guard won 2 slam dunk contests catapulting over people. Now he is battling the fragility of his health as high blood pressure and kidney failure have dunked him to the point of depression. His story discusses how the disease may be genetic but also speaks to human desire as he chose to continue playing as he found out about the diagnosis early in his career. I relate so much to his story as I and many others battle high blood pressure and its wide-ranging effects. Are my issues genetic, caused by my choices, factors beyond my control -- or just part of a fragile system to complex to comprehend. Human life is truly amazing -- but I wonder if it's because we ALL share a story of fragility. One disease, one paycheck, one accident and fragility shows its face. But family, friends, memories, and experiences have the amazing effect of pushing fragility to the back of our minds.

CAPRI HOLDINGS LIMITED - Is the owner of Versace | Jimmy Choo | Michael Kors a BUY, SELL, OR HOLD?

 

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments) Use the "SEARCH" bar to see if I've written about a topic you are interested in.	Get Updates to Your Email When I Create A New Post: Use the "Subscription" feature to receive free updates to your device.

CAPRI HOLDINGS LTD (NYSE: CPRI) POSITION UPDATE

As a small business owner, I have to make decisions often about what is an optimal outcome for my clients, staff, and me.  I get heckled for my consistent response of "What is the risk"? If we don't know the risk, then we should not be doing it. I then get a look of surprise when I share teachable moments to people by applying and concepts from business, cybersecurity, finance, marriage, and raising children. I believe in the 'Circle of Life' and how complex systems share similar principles. I ironically ask my business team to consider the risk of what they are doing and how it impacts our business and then I come how and discuss with my kids (all under the age of 10) about the risks of their actions.  The goal is to create accountability for one's own actions. I stay consistent because instead of accountability I often hear the opposite when things go awry. With my kids, I might hear "well I didn't know" and in the corporate world I see two things: 1) analysis paralysis - the inability for departments to make a decision without escalating to the highest levels of the organization and 2) 'call a guy' mentality - let me outsource my task or decision to another person by adding them to an email or meeting even when they don't add value. This article is to hold me accountable for my investment in CAPRI HOLDINGS.

Human nature is to only write about our investments when they go up. When people ask for financial advice, I joke they should find the podcaster, blogger, influencer, or coach that will be honest about their investments that aren't working. That is someone I want to talk with because there is integrity there. For CAPRI, the buck stops with me and my current investment is not working out and currently has me down or under water by 5 figures! My job is to keep it real, I haven't log into my account recently but I'm sure my investment is down roughly $10K or so. The amount is significant because CPRI represents my largest investment in my personal account. I made a series of trades to amass this position and I have to reflect on whether I miscalculated the risks. Let's revisit the details:

Details by Capri

In the 3rd Quarter of last year, my spidey senses tuned into an announcement from a stock I used to have a decent position in called Tapestry, Inc. In August 2023, Tapestry slid into the DMs of Capri. I saw this hook up of high fashion as a investment that made sense for my portfolio. 

Tapestry, owner of Coach, was approaching the house of Versace. So, what were the risks I weighed:

1. Risk of Capri Saying No: I didn't think this was a high risk because on August 10, 2023, Capri made the announcement that they wanted to hook up with Tapestry as the terms of engagement were favorable. I personally think it makes sense because as a connoisseur of hip-hop I hear in songs that the fashion trends are constantly changing. I presume to compete with fast, every day, and high fashion, these brands will acquire each other to keep the marketing efforts in your face, costs down, and prices premium.

2. Risk of Government Regulators Blocking the Acquisition: I didn't think was a high risk because my assumption is fashion is global. One would believe the various countries where these fashion brands live would be on board with supporting their local brands. I have no knowledge of high fashion but image France not supporting Louis Vuitton or Italy and their iconic brands. Heck, I've read that even if these two brands combined, they would only be the 4th largest luxury company in the world.

But why isn't the investment working:

I thought I was correct on all fronts. Capri accepted the terms of marriage and agreed to the hookup. Next, I read that Japan and the European Union regulators even signed off on the marriage and regulators are like parents who approve of marriage. All that was left were US regulators known as the Federal Trade Commission (FTC). I joke someone must have known something because this investment has not done well since I made it. Or I should have calculated a higher probability or rejection by the FTC because I got burned on my Tegna investment last year. The FTC has been very aggressive in looking into these deals and just about a week ago they voted to block the marriage. This is bad news for an investor like me but I would agree if I thought communities and companies would be harmed. What is the harm to my community when high fashion brands link up??

Per the FTC, Coach, Kors, and Kate Spade all participate in the handbag and compete and monitor each other to make strategic decisions pricing. Also, every large acquisition could result in the reduction of employees to save costs (and often do).

My response would be: I assume all of these products are out of the common persons reach. I love my spouse and have never attempted to purchase any of these products. Heck, I thought Birkin was the sought after bag according to Cardi B and other celebrities. So whether prices stay high, doesn't impact the average American. Maybe if outlet prices go up it would but again these are vanity purchases...or so I thought.

What I didn't calculate was the FTC's comment on the potential for harm via job reductions. I never even factored that into my equation because that is a normal action or outcome of acquisitions. Looking at this scenario now, I'm not sure Tapestry is all of a sudden going to have all of these products being sold out of super stores, therefore cutting tons of employees. That type of action could water down the experience of these high end brands. So in my opinion the logical loss of employees is limited to the administration functions: marketing, finance, legal, purchasing, etc. 

What's Next - Well, Tapestry has sued the FTC's blocking of the merger. If this heads to court, my assumption is that fashion is a competitive contact sport for the luxury brands. I can't keep up with the name dropping in hip-hop songs of new brands every day. Next, a judge may ask why the FTC is the only regulator to block the hook up when Japan and the EU had no problem with it. Finally, I assume the rationale for the merger is it is getting hard to compete in this space and these companies want synergies, or to benefit from best practices, of the combined organization to compete against the onslaught of competition I assume comes from all ends.

For me I will hold, now that I've had a chance to spit out all my thoughts here on paper. I truly struggle with seeing how high fashion impacts the "average" consumer. My assumption is most of these brands are a bit out of reach of the average consumer so the harm is limited to the occasional premium outlet purchase for the consumer (her) feeling good, date night, and influencing on Instagram. I missed the jobs angle and will log that away for the future but if that is critical -- the world would never let any companies merge. I'll watch closely and hold because I think I've learned 2 things - where Capri is valued from here on out based on the terms of the deal and my current assumption that 2/3 approvals may sway a judge to get this across the finish line.

Drop a comment if you agree or disagree

#tapestry #capri #coach #versace #katespade #hookup alert #federal trade commission

How to Find Value? -- Start with Stocks Down Quarter 1 2024

   

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments) Use the "SEARCH" bar to see if I've written about a topic you are interested in.	Get Updates to Your Email When I Create A New Post: Use the "Subscription" feature to receive free updates to your device.

How to Find Value? -- Start with Stocks Down Quarter 1 2024

Sometimes I like to find value in stocks that are a bit down and out. They all have their own stories for why their stock prices are down. It can be a good starting point, if you like to do a bit of research to see if there is some value there. Take a look at this list and tell me, are you a buyer?

Here is a quick list of stocks down in Q1 2024:

Stock Name	Ticker	Quarter to Date % Decline
TESLA	TSLA	-28%
BOEING	BA	-26%
MARKETAXESS	MKTX	-25%
CHARTER COMM	CHTR	-24%
NIKE	NKE	-13%
INTEL	INTL	-13%
APPLE	AAPL	-10%

Bitcoin (GBTC) Update | Coming Soon: Splunk (SPLK) | Capri (CPRI) | Reddit (RDDT)

 

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments) Use the "SEARCH" bar to see if I've written about a topic you are interested in.	Get Updates to Your Email When I Create A New Post: Use the "Subscription" feature to receive free updates to your device.

Hello everyone, out there. 2024 has been a blur so far! Wait isn't that the name of Drake's current tour? All I know is the first three months of this year, I have been skating by like Tyla's hit single --- "Water". So, for my first post I want to revisit some trades that have been at the top of my investment playlist. Some have worked, others are clearly on vacation.

Grayscale Bitcoin Trust (BTC) (GBTC) Update

Bitcoin! I've been called many things but don't call me a flip flopper. I recently had someone say, "See I told you about Bitcoin and now you like the investment". My response was as follows "You clearly didn't read my previous post, What? Am I Investing in Bitcoin:  https://urbanomics.blogspot.com/2023/11/what-am-i-investing-grayscale-bitcoin.html "

What I have been called over time is a penny pincher, miser, or as I like to call myself -- a Value Trader. I love to find value. My cryptocurrency friends don't like to tell you about the lumps they absorbed if they bought Bitcoin when it was trading at roughly $60K over a year ago and then precipitously saw it drop to roughly under $20K. The 'Day 1' crypto lovers probably held on to their investment but your average investor may have seen their investment fall almost 100% (...if they bought at the highs) and sold out of fear.

I have to admit, I was triggered into investing in Bitcoin. I watched this Bitcoin drop for over a year and felt for those crypto investors that bought at the highs. But more importantly from my post last November, I was triggered by the fact that crypto industry was suing the SEC to allow them to create and offer Exchange Traded Funds (ETF). ETFs are investment vehicles that allow an investor like me to easily buy and sell, say a commodity (like corn, wheat, gold, crypto, etc.) without having to take ownership of the actual good. I did not want to buy crypto outright because as a cyber professional I've seen the supposed crypto exchanges get hacked (remember Mt. Gox). I have seen crypto influencers post on social media about their wealth only to have crypto robbers (usually friends) beat them up and force them to give up their passwords to their crypto accounts or cold storage devices. Even worse, I saw how FTX and the saga Sam Bankman Friedman played out and the pain it caused many of FTX's crypto investors. An ETF means, no crpto exchange needed, no cold storage required, and no hassle. The VALUE logic I believed was when Bitcoin hit the lower end of $20K there was much more upside than when it was trading at highs of $60K. So, I bought GBTC back in November 2023 at roughly $20 a share. because of the value but more importantly because of the catalyst of the SEC losing this all-important court case. So, I remind my fellow value traders who read my posts on Urbanomics the path that got us here: Value (investment trading at a perceived reasonable discount) + Catalyst (positive legal decision in this case) = great trade even for an investment you may not like or plan to hold forever.

Splunk (SPLK) Update - Deal Close, Trade Done

Stay tuned for my new post of how Splunk is no longer...congrats to Cisco on this hook up. It went down in the DMs and this was a profitable trade for me.

Read my previous post, here: https://urbanomics.blogspot.com/2023/11/lets-go-splunking-splunk-inc-nasdaq-splk.html

Capri (CPRI) - Trade Underwater

Next, I'll visit my failing trade in Capri. The FTC has stepped in like a thoughtful parent and put this discovered hook up on ice so far. Is this hook up in danger, like my failed Tegna trade.

Read my previous post, here: https://urbanomics.blogspot.com/2023/08/savage-over-avid-technology-nasdaq-avid.html

Pay It Forward - Reddit (RDDT)

Stay tuned for a post on Reddit. I have a gentleman I mentor tell me how he broke out his old Robinhood account and finally made a trade. While he said it was easy money, I reminded him it was a thoughtful trade similar to what Mansa Musa network trader Peter Lynch would do. My friend simply bought something he knew about, used, and had much more insight into that I do.

Let's Go Splunking - Splunk Inc (NASDAQ: SPLK)

I finally get to write about a stock in my line of work -- CYBERSECURITY! So awhile back, I was tracking the DMs of a few friends in my Mansa Musa Network. I don't recall which ones, but it may have been my guys from the A-Billi squad: Mario Gabelli (Gamco Investors) or Jeffrey Smith (Starboard). But long story short is SPLUNK had been underperforming in the stock world. In the regular world it's like the person that has been single for too long and is finally looking for someone to "Put a Ring on It". So, like the horrible reality TV shows of today, they announced they were looking to hook up in a very public way. I saw my buddies mentioning the value in SPLUNK, but I didn't pull the trigger early on. I was tardy and finally decided to pick up some shares ONLY when they finally announced they had found a partner. This partner was the deep pocketed company, called CISCO. They are well known for their enterprise networking and routing equipment. If you don't know what I'm talking about, it's the device most people attach to their home network for internet that allows you to have wireless or WIFI service.

Definitely do not quote me because it has been a while, but I believe the buyout price was set at $157.50. So, what I did was use a well-known trading strategy on wall street. You've heard me refer to it before at the arbitrage approach. This means if I have high confidence that the deal (or hook up) is going to get done, an investor like me can benefit from the "spread" or difference between the price of when the deal is announced and what the final buyout or hook up price is. The risk becomes IF the deal does not get done (if the bride is left at the altar), this situation becomes a train wreck. Is this possible? Yes, it is --- see my posts on Tegna. This deal was thought to be all but certain and then the FTC stepped in and said the deal was harmful for customers across the country. So, you saw a stock go from $17 to nearly $22+ and come all the way back down because the deal was under investigation and ultimately canceled.

Now back to SPLUNK. I wanted to show you all what corporate governance looks like and what ownership looks like from an investor's standpoint. I got an email telling me it's time to vote on whether I think the merger should occur. I've pasted that screenshot here. I hope and believe this means we are one step closer to closing the deal. This is a great example of how hookups can help your portfolio.

Hunting in Packs - Sam Biglari -- El Pollo Loco (LOCO)

I have had quite a busy year. I've not invested heavily this year because I was concerned about the increase in inflation and the impact to stocks. I think my thesis has generally been correct, but November is trying to upend this trend. What's important about November? Well, this past month aligns with the Federal Reserve signaling they will halt increases in interest rates. This usually bodes well for stocks. So, it may be time to slowly start reinvesting the funds I moved to boring old cash. But some smart money folks in my Mansa Musa Network still are calling for a recession in 2024 or 2025. So, I'll come back to this subject soon but for now I'm TRYING to be a bit cautious with my trades by being less active. The strange thing about investing is that it takes patience. Because I've been busy, I recently learned that a trade that I researched back in August 2023 just filled. How is this possible? Well, I use a strategy that will only execute a stock trade IF my terms are met. I hope this sounds familiar as I often write about navigating through life and trying to ensure that you do things the right way and on your own terms.

Now there is no need to babble any further about what the trade is the trade I found out was recently executed and I only realized it because it was sitting in my inbox "unread".

Hunting in Packs - Sam Biglari -- El Pollo Loco (LOCO)

I got a great hit in my feed about an investor, named Sam Biglari, who is in my Mansa Musa network. I've never hunted for stocks with him, but I've read about the brother as I learned he had a significant impact over Steak 'n Shake. Now Steak 'n Shake is never at the top of my radar and that could have been a reason why Sam made investments into the company years back which was in a dire situation. I heard they turned a profit back in 2021 and much is likely attributed to shrewd moves that led to roughly 90 locations closing. As I wrote this I wondered if Steak 'n Shake was a franchise operator and just learned he is moving to that model as well as turning them into more of a fast-food restaurant to reduce the labor costs of dining in (which is what they were known for).

Sam's name was on my radar back in August when I read he was picking up a large stake in another restaurant chain El Pollo Loco. They say it goes down in the DM, and in stock trading Sam is definitely interested in LOCO. I believe he picked up enough shares in the company that would put his ownership stake at just north of owning 9% of the entire restaurant chain (see what I did their with "stake"). Based on his track record and the fact that he's putting a $33 million dollar investment in, I'd like to nibble here at the stock and trade along. Do I just jump in --- hell no. Like Flo Rida and T-Pain once rapped you gotta go Low Low Low Low, I like to build a margin in by betting on the lower side of where a stock has been trading. I did my research (usually by analyzing the stock's movement in the last year) and set a price I'd like to get in.

Call me crazy, or should I say LOCO, but let's see how our trade does. I like LOCO around the $8 level and for I'll enjoy hunting with Sam.

#HuntinPacks - designates investments I made alongside someone in my network

#MansaMusaMentality

Investing in You - Your Retirement Savings Bag

I was having a chat with one of my employees and the term 60/40 came up as I have the business news stations on as a requirement for my staff to learn about how business intersects with their everyday life. So, the topic of 60 / 40 came up and he said quite, simply --- "What is 60 / 40?". I immediately responded with the answer that it is a commonly used term for the ratio of your investment of retirement portfolio that should be allocated across stocks (60%) and bonds (40%). He then whipped back who in the world would know that and I kept insisting that it's common knowledge. I then realized once again the purpose of this blog and why I've been writing for the last 20 years. There are so many things that I take as common knowledge but when shared with the world in a simplified way --- it can change minds and lives. 

Saving for Retirement 101

There are no special tricks when it comes to planning for your retirement. It takes balance, discipline, courage, and humility. 

Balance - You must be able to balance your personal finances and position yourself in a way that allows you to save extra money after ALL of your business and personal life expenses are covered. EASIER SAID THAN DONE. This is why I'm not a fan of all of these modern-day financial podcasts. You're telling me to retire but no one is there to guide you along the way. You want my clicks and eye balls but you don't have the true playbook. I'm not going to get into details today but you need to monitor your expenses daily and save from when you first start working or retirement may be difficult or a burden to your loved ones.

Discipline and Courage - If dieting is hard, imagine how hard it is to save money each paycheck for something 10/20/30/40/50 years from now. That takes a type of discipline most people aren't ready for. Find a system that works for you. If your company takes money out of your paycheck then great do that. If you put it in a savings account that you don't touch, perfect. If you need a financial coach or advisor -- they get financially fit. It take courage to do something not everyone is doing.

Humility - I always like to add in the concept of legacy. There is a certain amount of humility that is needed to save not only for yourself but to be humble enough to know that eventually you won't be around and your family or extended family may benefit from a boost. I've heard the phrase the rich get richer, but I truly believe it's the rich pass on wealth from generation to generation which only makes it harder for them to be broke. We speak of a simple term call compounding interest and at some point your funds or the legacy funds you leve behind with accumulate to a level where it truly generates enough income for someone to survive upon. To understand that you may not benefit from this but your future generations may --- take some mind-blowing humility in how life works. There are some truly self-made millionaires and billionaires but if you ever did some research on some of the famous or rich people that you follow --- chances are they inherited that wealth of skillset. 

I would fail if I was asked the question, what book are you reading. I tend to read and save webpages of articles. My phone has over 30 open pages of articles I want to get back to. One of those was about 401(k) accounts. This has become the default type of account for many people who work corporate jobs and usually do not have a pension. Sadly, this isn't available to every person in the world or even every American. The concept behind the account is what we write about here all the time ---  saving money after each paycheck for a rainy day or retirement.

So here is a quick rundown of how to save for retirement:

Save Cash - Save cash after every paycheck and put it in an envelope or savings account. The problem with cash is if you can easily get to it you may easily spend it or like bitcoin --- if the amount gets large and you begin to get unwanted attention it becomes ripe for stealing.

Individual Retirement accounts (IRAs) - Often called traditional IRA, this type of retirement account is tax deductible from your income and if you set it up seamlessly the money comes out and you now have rules imposed on you that penalize you from pulling funds out. There are US government limits on how much money you can make to contribute so do a quick search to see if you qualify. I'm getting old but awhile back the limit was roughly if you're single and make over $75K a year the full contribution begins to scale down. There are limits for other filing types such as married jointly, etc.

Pensions - This is a dinosaur method of saving money for retirement. It was a gem when you had a company of government entity pay for your retirement. You work and they foot the bill for a defined amount of cash you would receive for all those years of service. If you ever get an opportunity to earn a pension with an organization, consider this a huge huge incentive to work for them. As this is a great way to get money during your golden years.

401(k) - The vehicle that took the reins from pension accounts many years ago. The simple way to think about this is you are responsible for your retirement as the money comes directly from your paycheck. To incentive people, the money is tax deductible, so this was effective way to create and increase the wealth gap. If you don't work for a company that offers this type of retirement account or you don't have a good handle of your personal budget --- then you'll be left behind as pensions are a thing of the past. You miss out on reducing your taxes and free money as many companies provide a small match (think donation that tax deductible for companies 👀) into your retirement account.

Roth 401(k) - similar to its sibling, this retirement account is funded with after-tax money. The cool thing is the word "after-tax", so it grows tax-free. It's cousin is the Roth IRA, but you get to stash away way more than the paltry amount allowed for a Roth IRA, and don't forget that match of donation added by companies is still allowed.

I'm planning to continue to learn more about the mega backdoor roth path that were pushed to the headlines by the likes of Peter Thiel and others just a few years ago. It is a way to move after tax contributions into a retirement vehicle that can no longer be taxed. Ironically Peter then used his "retirement account" to invest in companies that went on to earn him over $6 Billion dollars in returns if I recall correctly. We are now in High Earning Not Yet Rich (HENRY) status for those of us that want to explore if their company offers this in their retirement plan. Further, not many of us can use our account to invest in startups the way Peter did. But hey we can all dream so that's what I'll be researching in the future.