Monday, September 1, 2008

Earl Flormata - Feeling Lucky? Born to be a Millionaire

Once a mentor of mine asked me whether I would rather be lucky or smart. I answered him - why not have both? But if I had to choose one over the other, luck is something that cannot be bought, whereas the expertise of many smart people is on sale every day as job postings as job postings are numerous. I still believe in the idea that luck favours the brave.

I find that the harder I work, the more luck I seem to have.
- Thomas Jefferson (1743-1826)

This brought to my attention one of the tests that I ask people who seek to reach their financial freedom. I'm sure you've all heard of the home lottery programs that exist - where you can win a dream home (usually in the middle of nowhere), or you have the option of taking the cash. It's time to test that luck vs. smarts ratio in the manner of which path do you choose? Do you take the cash, or the house? With luck already on your side, the only choice left is the wise one. To have your cake and eat it too, one would find it wise to choose the asset - the house. From an investment side, people naturally want to take the money however choosing the house allows for both. Simply mortgage the house, rent it out and now you have both a cash flowing asset and sufficient capital to invest or spend as you choose - alongside a tax deduction on the interest spent on borrowing from the house. Now you have 3 "prizes" in lieu of one.

The last piece I have on luck is a personal one. My son Erik was born on June 16th, 5:47PM in 2008 at a weight of 7lbs 14 ounces. Maybe the luck gene has been passed down, for if you check out the winning lotto numbers the draw after his birth, 6, 7, 14, 16, 17, 27... 6 and 16 for the date, 7 and 14 for his weight and 17, 47 for the time. He was one number away from being born a millionaire. A little more luck wouldn't hurt, but here's to hoping he gets the best of both worlds when his time comes.

Thanks for Reading,
Earl Flormata

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