Pete the Planner

***Disclaimer*** This is true, but the analysis is purely speculative

Early Monday morning in Las Vegas a famous NFL wide receiver was found beaten and robbed lying on the street. He was found at 7:18 am, 45 minutes after he left a nightclub. What was he doing at the nightclub at 6:30 am? Well, he had just bought $15,000 worth of champagne that he was spraying all over the other club goers. There is a video on YouTube (by the way). He had done the exact same thing early in the night at a different club. I’m not saying that spraying $30,000 worth of champagne in someone’s face is worth beating them up over, but I understand. 

Basically what I’m saying is this: he probably would not have been in a hospital this morning if he hadn’t sprayed $30k worth of champagne at other people. Why does anyone think that is cool?

This is a sneak preview of this week’s biggest waste of money. It is a regular segment on the radio show.

The item is “the ultimate honeymoon package”. I would prefer to call it the ultimate in stupidity.

Grand Velas Over-The-Top Honeymoon Package

Some couples spend heavy on the wedding, others prefer to focus on the honeymoon. If you fall into the later category check out the Over the Top Honeymoon Package from the Grand Velas Resort located 15 minutes north of Puerto Vallarta in Nuevo Vallarta, Riviera Nayarit, Mexico. The package includes a private jet from the continental US, all day fishing on a 32-ft yacht, golf daily, and a 3,300 square foot spa suite with daily massages for two. The Imperial Suite comes equipped with an in-suite spa with steam room, massage tables, and chromotherapy hydro-massage tub. An executive chef serves a gourmet food and wine pairing on the suite’s vast terrace with view of the Banderas Bay. The five-night, all-inclusive package is available until December 18th and starts at $77,265.

DUMB

If you have turned on the news in the last 30 years then you might have noticed that a whole lot of bad things happen to good people on a daily basis. Some of these events covered by the news cause us to perk up and listen, and some of these events are the mundane (but still awful). Recently there have been a great deal of terrible weather events that have negatively affected a great deal of people in our community. Many people have lost everything. Everything.

Let’s address everything for a moment. What would it be like to lose everything? It is hard to even phathom. You would have no home, no clothes, no car, no anything. Insurance in most cases won’t pay for these things because many people don’t have flood coverage. A flood is not covered by typical home owners insurance. Okay, so here you are with nothing except for one thing…the mortgage for your house that doesn’t exist anymore. So now, with your current income you must be able to pay off the house that doesn’t exist, replace all of your possessions, and pay for a new place to stay. It is impossible.

So what have I done to help? Nothing. Yet. I have been thinking about these people nonstop for about three days. Will giving $100 to the Red Cross help? I hope. Will giving $100 to the Red Cross make me feel better? I don’t think it will. I started guilting myself into making a bigger difference. How can I go to the movies this weekend and enjoy myself, while that $20 is better spent on someone’s food? Then my mind goes to what did I do to help during 9/11 or Katrina or when some kid that lives in my town needs leukemia treatments. Some of these things have gotten my dollars, but I usually have to shake myself into gaining some perspective before I give.

I am not urging you to give (but you should). I am simply urging you to ask yourself the tough questions. If spending money on worthless stuff still makes you feel empty, then why not give money to people that need to feel partially whole? The bottom line is this: we shouldn’t have to watch people suffer in order for us to give to the needy. But, if that is what it takes, then fine. But, if we can make it through all the tough questions without getting out our checkbook, then shame on us.

Today is all about realization and disappointment. I was flipping through the radio on the way to the Pete the Planner World Headquarters today, and was faced with a very vital realization. A man shouldn’t sing along to an Alanis Morisette song.

Disappointment. I am the mystery guest today at a childrens day camp. I am taking them piggy banks, and I am going to teach them a little bit about money. Can you imagine their disappointment when they realize that their mystery guest is me, and not someone like Peyton Manning or an Indiana Pacer. But, I guess if I was a Pacer then they would only see me at Gentlemens Clubs, and kids probably aren’t allowed in those places. Plus the Pacers would probably try to fight the kids. I guess it is better than I speaking to the kids after all.

consumption - the using up of a resource

How do you view consumption? My view of consumption has changed greatly within the last 12 months. I’m sure that yours has too. I think Americans, in general, have had a really strange view of consumption within the last 30 years. We don’t really view the product that we are consuming as a resource. 

As I pulled into the Pete the Planner World Headquarters today I noticed that there was a giant diesel pick-up truck parked out front. There was nobody in the truck, yet it was running. I heard the truck idling (empty) for about 15 minutes. How could you possibly justify doing that given the price of diesel fuel? Either he doesn’t care, or he doesn’t know. I am guessing that he doesn’t know how much he doesn’t care. 

There is an article in this week’s Indianapolis Business Journal that details the lawsuit filed by ex-employees of WellPoint charging that the company caused financial chaos when they slashed their earnings forecast. The lawsuit contends that the company should have warned employees who held the company stock that things weren’t looking good.

People. People. People. You should not be that much invested in your own company’s stock. Many company’s offer their stock within the 401k program. People tend to think that it is a good investment because they happen to know something about the company. They tend to think, “well, my department is doing well, that means that the whole company is doing well. I should invest more money in the company stock”. That is a really really bad idea. Your financial well being already hinges on your employer, you don’t want it to hinge on your employer even more by holding their stock.

Relax. Breathe. Divest yourself of your company stock if you have more than 10% of your balance there.

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A group of urban poets known as the Wu-Tang Clan once gave us great insight into our views on money. One of their classic songs was a song called C.R.E.A.M. C.R.E.A.M. is an acronym for “Cash Rules Everything Around Me”. Let’s examine this. Start by asking yourself, “does cash rule everything around me?” Does it? Does it? Answer me. Sorry

Anyway. Often times money affects decisions that it shouldn’t. I was talking to a friend the other day who happens to be a physician. We were discussing whether people make medical decisions based on their financial standing. Our conclusion was that they do. (This is not a call for universal health care). Isn’t that sad that your economic standing is affecting your health? 

Where else does this problem manifest itself? Have you ever tried to do your taxes yourself when you would have been better off employing an accountant? Have you ever given yourself a prison tattoo? Okay, that was a bad example. I realize that we don’t have an unlimited amount of money, therefore we must make tough choices. 

My point is that the Wu-Tang Clan is right…as always. R.I.P ODB.

Cal Ewing, the patron saint of high school economics, once told our class that there is no such thing as a free lunch. I have spent the last 15 years trying to disprove that theory, and I have miserably failed. Therefore, I have come to the conclusion that free is bad. I think that the old phrase “you get what you pay for” is probably the most accurate when describing frugality. 

I often find that people are overly consumed with getting a good deal on something. I think that is where the word value enters into the equation. You should always look for value, not just a freebie. Free isn’t good. For example this blog is free…

Do you remember when driving a Hummer was cool? I don’t either. I never thought they were cool. They were the epitome of excess. They always have looked obnoxious. 

Now, they are officially obnoxious. GM is considering selling the Hummer brand. Car lots are jammed with them as people try to trade them in. Most people who own them are upside down on them because they are falling in value sooooo much. Therefore, while they use to only look ridiculous, they are now officially financially ridiculous.  See what happens when you buy a car that is meant to make you look cool. 

We are currently sorting through different case studies to discuss on our radio show. Do you want to get great financial help on the radio? Please email me to discuss. We can talk debt, we can talk investments, we can talk about anything. Do you have questions about buying a house? Do you have questions about refinancing a loan? Do you have questions about spending money cars?

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