Ace Wisdom

The computer inflitrates everybody’s life. It helps us make decisions with instant information in any form you want it. Ain’t it a great modern marvel. You can watch e-Bay bids as they happen. You can check your credit score any time. You can transfer money instantly! The computer can be a great decision-making tool! Too bad they didn’t have computers years ago.
But they did! The year was 1870. John D. Rockefeller, the founder of Standard Oil ran a telegraph wire to his home in Cleveland. His oil fields were in Pennsylvania. When he came home for lunch in Cleveland, he would check his personal “teletype” machine for updates on gushers and dry holes. He would then telegraph his brother in New York to adjust the price of oil for the European markets and his brother would pass on price adjustments via Atlantic Cable to Europe. John D. Rockefeller had learned to do morse code so that he could send and receive his own telegraph transactions by himself. Isn’t that the same as sending and receiving e-mail? By golly, the instruments may have been “crude” (to use a pun), but “John D.” had the equivalent of his own computer helping him make decisions. Say it ain’t so. 1870! People making quick decisions using the power of electronic information.
In the business world (and personal world), the speed of information transmission has improved. Wal-Mart has learned to follow inventory every moment of everyday. I am reminded of a Wal-Mart store in Chicago that was low on Panasonic TV’s. They checked their computers and found that there was a truckload of TV’s enroute to California. The GPS system located the truck in New Mexico at mile marker number 262 on Highway 66. The decision was made to turn the truck around and move the TV’s to Chicago where they were needed the most. The time of arrival was calculated for Chicago and customers were told what time they could drop by and pick up their TV’s. I know why Wal-Mart makes money!. They manage their business very, very well using computers to transmit information..
So Grasshoppers, as you send your next e-mail or post your next e-Bay offering, don’t be so smug. John D. Rockefeller figured out how to use current information to become the richest person in the world. Now that you are “armed” with the knowledge that instant data is very valuable, go forth and make yourself filthy rich!
Love,
Dad

It has dawned on me that you older Grasshoppers did not get to attend plays and musical presentations as much as Grasshoppers No.4 and Grasshopper No.5. There was no oversight here. Some of it had to do with life style and affordability.
There are some musical presentations that happen to be very memorable.
Number one on my memory list is “The World Goes ‘Round”. Mom, Grasshopper No.5 and myself had taken a trip to Washington D.C. We had a Sunday without much planned so we decided to go over to the Kennedy Center. We just wanted to experience the ambiance of the Performance Center. We got there around noon on a warm June day (No.5 must have been about 17 years old). We found out that the presentation of the play “The World Goes ‘Round” was going to start at 1:00 PM. We never intended to see a play. We bought tickets on the recommendation of the sales agent. After a light lunch on the top floor of the Kennedy Center, we attended the play. It was a surprising delight. It was kind of magical. You couldn’t have planned the moment. We had a good time. Some of the tunes are on my walkman.
Number two on my memory list is “The Phantom of the Opera” performed at an old theater in Chicago. It had been recommended by a business associate as the best thing he had ever seen. So your Mom and I dragged No.4 and No.5 screaming and kicking to an overnight stay in Chicago topped off by “Phantom”. It didn’t disappoint. It was spectacular. The music is legendary to this day. All the way home from Chicago, we played cassette tapes containing the familiar Phantom music. No.4 had to be around 17 or 18 years of age.
Number three and last on my memorable list of musical presentations is “Joseph and the Amazing Technicolor Dreamcoat”. We had heard about the play and again we headed for Chicago. This time it was only Grasshopper No.5 (she must have been around 16) joining Mom and myself. The play starred Donny Osmond dressed only in a loincloth. The story was fun and the music is classic. Your Mom says it is her favorite play.
So Grasshopper No.1, Grasshopper No.2, and Grasshopper No.3, I apologize for not being able to expose you to the “arts” as much as desired but you got to experience other important things in life.
Why this rambling about favorite musicals? Well, we have a visit coming up soon to Minneapolis to visit No.5. The only way you can spend time with her is to invade her turf. She probably is telling all her friends that her Mom and Dad are coming! Yuk! During our visit we have tickets to attend “Joseph and the Amazing Technicolor Dreamcoat”. It should bring back memories for No.5, your Mom and myself.
The lesson Grasshoppers is that you will share differernt moments with your own children creating precious memories. Memories for each child will be different. That is okay. Treasure those moments.
Love,
Dad

No, we are not talking “rot gut” booze. More later.
This weekend is the last UW-Badger football game at home for the season. God the fall season goes by fast. Weather is predicted to be cool but dry. Michigan coming in is like Darth Vader descending on the Star Troopers. Should be a good game. A plus could be a few Air Force jets flying over since it is Veterans Day on Monday. Add the “Bud” song and you could lose yourself in the excitement.
I also heard that Grasshopper No. 3 took his boat out for maybe the last time this season with a new 300 HP Mercury “hummer” engine. This could take him over the magic 85 mph barrier. He warmed the engine and cruised at lower speeds for awhile. Collin challenged his Dad by saying “lets see what this thing will do”! It went 50, 60, 70, and then easily to 80 mph.
The excitement must have paralleled breaking the sound barrier. Whoops! A sputtering. A dreaded “missing” sound from the engine and then a slow dying growl. Grasshopper No. 3 had a friend in another boat in the area with a video tape recorder. I would guess it is embarassing to be on tape being towed to the boat landing (there was something about sticking up a middle finger). The engine had burnt a cylinder head or something. Hey, the challenge is still there and wait till next year. I know all about engines dying.
Okay, the subject is “rot gut”. We are talking about term life insurance protection for a family that is dependent on one person (or two) for major income. The Financial Planning course your Mother and I are taking recommends “buy as much term insurance as you can afford, for as long as you can, at a locked in fixed premium”. Imagine losing the major breadwinner in your family without sufficient insurance.
My opinion is you should have a minimum of $500,000 total term insurance. In your 30’s and 40’s, you can get that kind of insurance for around $300-$400 per year. If the breadwinner dies, $500,000 would be paid out. If your family invests the $500,000 at 5% per year in a safe certificate of deposit, they would get $25,000 per year. That is not a lot per year. It is slightly more than social security. If the family decided to use the $25,000 interest and $15,000 from the principal, they could spend $40,000 per year but after 20 years, the $500,000 would be gone. If you presently have some life insurance, maybe you only need $300,000 term. You get the idea.
The lesson Grasshoppers is that term insurance in an excellent estate planning tool because it is so cheap. They call it “rot gut” insurance because the agent selling it does not make a big commission. It is a good value. You can get competitive quotes “online”. Check it out.
Love,
Dad

Your Mom and I have been attending classes at UW-Fox Valley on the subject of Wills and Trusts. The subject of dying is easily put off. Actually, when Harry Stroebel died as owner of the City Club, there apparently was no will or trust and the result as near as I can tell is total chaos. The lack of planning inspired me to get more information.
One classroom session remains. This week two lawyers are being brought in answer questions about death and taxes. Great subject, huh! The course is taught and coordinated by Christina, a crusty old broad who is almost likeable. I think she is rich!
There are some things that are crystal clear.
Draw up a will. There are simple “do it yourself” Wills available and talk show host, Clark Howard, has websites to visit to get effective documents. A Will defines how your assets get distributed. Otherwise the State of Wisconsin decides.
Prepare a Durable Power of Attorney. This allows somebody you trust to make financial decisions on your behalf should you become incapacitated or mentally incompetent. As people get older and older, the chances of gumming your food and losing your mental capacity get greater. Car accidents happen. Affliction with a serious illness can occur. A simple document can be attained to name financial appointees.
Prepare a Durable Power of Attorney for Healthcare. This appoints someone to make a decision regarding your fate in serious health situations. My instructions are pretty simple. If I’m going to be a “vegetable” for the rest of my life, pull the plug. You need to name the person or persons who will make that decision. Again, effective do-it-yourself documents are available.
Our course can get very complicated. The use terms like “pour over wills”, “testamentary Trusts”, and “tenants in common”. The net is that after the course, they want you to visit lawyers and financial planners and they will help you. Ka-ching! The dollars start to flow for all the help. It almost leads you to believe that the course is promotion for planning services. No, they wouldn’t be that self-serving.
The lesson Grasshoppers is that you don’t have to take a college course to discover you need a “Will” along with Powers of Attorney for financial and medical situations that occur in your life. Do it.
Love,
Dad

Okay Grasshoppers, the subject is “basic money management”. I know I can do this!
Get a mirror. Look into it. Who do you see? If you don’t seen anyone you are either a vampire or a witch. Assuming that isn’t you, you should see yourself. That good looking, beguiling, beautiful creature is you. Not bad, huh?
Now while looking into the mirror, ask yourself “who is the most important person in the world”? If you hesitate, you are in deep sh–. It is YOU (as my mother would say “it is you, you dumb sh–)! Yes, there are lots of very, very important people in your life but you are most important to you. You manage yourself everyday. Do what is best for you. “You, You, You”! I think there is a song that starts that way.
Now, when you earn money, the first thing you should do is pay yourself! Take the cash from each paycheck, go down to a bank of choice and deposit money that is payment to yourself for all the hardwork, sweat, and sacrifice. You owe it to yourself. Keep the account separate and don’t use that money for anything else. That is your money. You are rewarding yourself. Why do you pay yourself? Who else is going to take care of you? Remember who is the most important person in your life. You owe yourself some money from every paycheck.
Keeping this very simple, it is very important that you make a special effort to physically place the money you are paying yourself someplace special. Make it a bank, a savings & loan or a credit union. You can deposit cash or write a check. The money stays there and grows. You don’t use it for self-gratification. That new I-Pod does not come from this money.
Keep doing that routine. Keep investing in yourself. Remember the mirror. Who did you see in the mirror? You saw the most important person in the world…You!
The lesson Grasshoppers is that you control your own destiny. Once you reach a point where you have accumulated 3-6 months worth of “pay”, the focus can start shifting to longer term goals. Never stop paying yourself. Love yourself.
Love,
Dad

I joke about investing $200 in the late 1990’s for a share of Packer stock. It has very little value because Packer stock is not traded publicly so there is no market price. I have to admit asking myself, “why would I do this”?
I remember now. As I drove to work in Ripon each Monday, if the Packers had won the day before, there was a magical giddiness that seemed to overcome all employees. There was lots of wasted time around the water cooler or in the lunch room discussing a Packer win but there was always a positive bounce in everybody’s step. I can’t prove it but productivity actually went up. The two years that the Packers went to the Super Bowl in the late 1990’s caused the State of Wisconsin to act like “high schoolers”.
Yes, the Packers charge too much for tickets for each game.
Yes, we are inundated with syndicated talk shows such as “The Donald Driver Show” or the “Mike McCarthy Show”. But you don’t have to watch. Fans tune in to keep the magic of a win going.
Yes, merchandise is available everywhere at outrageous prices.
When the Green Bay Packers win, people are happy! Wisconsites won’t admit to being happy. We are German, Polish and Dutch descendents and we wouldn’t dare show “happiness”. But come on Wisconsin! Admit it! You are happy when the Packers win.
I kept witnessing the phenomenon of happiness from a Packer victory. Why wouldn’t I want to own a share of Packer stock and maybe someday have a voice in their future. With all the negative fear in the world, the Packer stock purchase may have been one of the best things I ever did. Hey, I’m happy. I remember now.
If you question my theory, I reference Grasshopper No. 4’s coaching escapade this season with his youth football team. With job offers coming at a snails pace, you can make a case for believing that sometimes life sucks. But the youth football team kept developing. The team kept winning. No.4’s team won the championship and the world seemed to “be right”. Don’t tell me a positive sports encounter can’t be uplifting.
Yes, I remember now. Being around something positive is special. It is necessary. It is fun.
Love,
Dad

In over 50 years of driving an automobile, I have never had a flat tire or “disabling” performance of any type. As you might guess, that was all about to change.
Your mom and I were in Sheboygan last Saturday morning and after a light lunch we were headed back to Appleton. Just outside Sheboygan on Country Trunk Y (adjacent to the Vollrath Company owned Windway estate), our high performance Saab “puked”. It just died. It behaved like it was out of gas. The battery and electrical system seemed okay. With only 62,000 miles, you wouldn’t think we would have car trouble. Ironically the car was scheduled for a major maintenance service early on Monday morning.
We did have our cell phone and we called our favorite son, Grasshopper No. 4. His response was if we needed his help, “let him know”.
Just then a Sheboygan County Sheriff pulled up behind us. He offered help. Within 15 minutes a tow truck was lifting our car onto a flatbed and we were headed back to Appleton. It only costs $3 per mile to haul a car. Because of “tow truck rules”, your mom and I had to ride in the car on the back of the truck because patrons were not allowed in the cab. What a picture. “Ma and Pa Kettle headed back to Appleton on the back of a truck”. No, I’m just kidding, We rode in the cab and the ride back to Appleton was very pleasant.
The car was dropped off at Bergstrom’s and Monday morning it got fixed. I was right. It wasn’t getting gas. The fuel pump had failed. So if you add up the towing costs and replacing the fuel pump, $1,000 just about covers the escapade. Fear not. I have towing insurance. I will get reimbursed $50.
So the odyssey ended. We were fortunate that the Sheriff pulled up almost immediately after engine failure.
I put myself in the shoes of Grasshopper No. 4 and ask, “what would I do if my Mom and Dad were broke down on the side of the road”? I would rush immediately to their aid. Where was the help when we needed it?
Those that know me well would predict that there will be a different car in my garage pretty soon!
To avoid many, many disclaimer e-mails and attempts to correct my story, I must say that Grasshopper No. 4 did offer to do whatever necessary to get us home.
Love,
Dad