#RWRI Thoughts on the business model and cleaned up notes

RWRI has a fantastic business model.

  1. Make the faculty your friends and investment committee
  2. Get paid to meet for a week each trimester // you have a no-cost central office, you are getting paid to bring your international (virtual) business together for a week
  3. Record your talks to capture new ideas, spontaneous content
  4. Train the students who will take your work forward when you are gone
  5. Receive feedback about how your work is being used in the world
  6. Up-sell your most passionate (book) customers => Robbins model
  7. Create an environment where you expand your network with people likely to engage and help you => HUGE self-selection bias in student population
  8. Invite world-class speakers in areas where you’d like to learn

This business works well for its owners and they are (more than) smart enough to see that.

Keep it small, sell out each meeting, avoid the temptation to expand and remember why you started.

I cleaned up my handwritten notes via the creation of a Google Doc.

Mistakes remain my own.

Kids Don’t Lie

2019-07-09 10.57.59A segment of our local community is dealing with the fallout from treating child abuse as an internal issue – rather than seeking assistance from local law enforcement.

I have been bumping into this story for over thirty-five years.

There is never just one incident. 

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Years ago, I attended a child abuse prevention workshop.

Remember…

Kids don’t lie – in over 20 years, my teacher had instructed 100,000 kids. Out of the 400 reports received, none were false.

20 years, 100,000 child interactions, 400 reports, zero false positives.

The perpetrator will have primed your child that you will be angry and not believe them. The most likely perpetrator is a male you know.

Have a no secret policy in your home – predators use secrets against our kids – let the kids know that kisses and touches should never have to be kept secret.

It is awkward to live an open life. Awkward is better than creating a culture of secrecy exploited by evil people.

Create a support network – have your kids name five people they know and trust (ideally women) – discuss places in their neighborhood where they feel safe.

When I’m walking around town, I’ll ask my kids… “Show me a safe person.” “Why is that person safe?”

Teach your kids that adult authority should never go unqualified => even your own!

Teach your kids… If you feel uncomfortable then:

  • Leave
  • Tell
  • Get Help

As a parent, the most important thing you can say is “I Believe You.” I say this a lot, I will “believe” somewhat ridiculous things.

People that commit evil deeds are hoping you will look away.

Be Brave.

 

Supporting Public Education

In my community, many families opt out of the public school system. Public schools are better with all our kids attending. We’d love to have you opt back and join us.

Three kids imply $100,000 per annum, pre tax, in the private system. Three million dollars of future value when my wife reaches retirement age.

For a whole lot less, consider…

Volunteer in the district — I started by helping in the classroom but realized my skill set was most useful at the district level. Monica rotates between our kids’ classrooms on a weekly basis. If you want better treatment then give.

Hire public school teachers to tutor – the single best investment you can make for your kid – you will be amazed at the benefit one session per week brings to your child.

Join education.com // it’s a no-brainer and gives you access to worksheets you can do with your kids.

Smarter application of family finances:

  • childcare to support your marriage and the young adults that work for you
  • after school activities because fit kids have greater capacity to learn
  • swap money for time and use the time to make yourself a better person
  • live walking distance to a great public school, kill your kids’ commute and be a hub of goodness in your community

I often catch myself fixating on external problems that distract me from taking action on what I control.

Choose wisely where you invest time, money and emotion.

A Million Dollars of Education

What first got my attention on education was realizing that a month of my daughter’s pre-school was costing more than a semester of my finance degree at McGill University. Digging a little deeper, the long-term cost of education blew me away when I ran the numbers.

Like most parents, we believe our daughter is a gifted genius and we want the best for her. Since I’m the CFO of my family, I’ve been approached to share my thoughts on private education.

What’s the default option with private education?

  • We want the best for our kids
  • Private education costs more so it must be better
  • I can afford it, today
  • Therefore, let’s start down the path

Duscussing education with parents I see the full range of human misjudgement. We all want our kids to succeed so our most-human tendencies manifest. I won’t give specifics as my sources are good friends. Just ask around and you’ll see what I mean.

Similar to our discussion on housing, let’s run some numbers using actual education costs in 2012 dollars. The first figure is Colorado and the second is California. These are figures for the private track:

  • Pre-school: $6,000/$12,000
  • Elementary/Middle: $15,000/$25,000
  • High School: $25,000/$50,000
  • University: $50,000/$62,500

I did a little research on education inflation and it’s been running at 6% per annum. I created a spreadsheet to look at the cost per kid at a 5% inflation rate, which also matches my forecast portfolio return if I don’t spend that money on education. If you want to play with my assumptions then make a copy of the spreadsheet (file/make a copy).

Depending on where you live, the private track has a future value of $875,000 to $1,375,000 per kid.

Knowing that we won’t be rational when we look at our own kids, think about the brothers and sisters of your peers, spouse’s family and your cousins (that’s your reference group). Would it have been a good investment drop a million bucks (each) on all of their educations?

The questions are worth asking but most of us don’t ask, we default:

  • I love my kids
  • Private is better
  • I can afford today
  • I’ll do it

Stack the education default on top of the housing default and many of my peers are looking at $3-8 million worth of expenditure. That kind of money can make a lasting difference in your city when directed wisely.

Likewise, if you think carefully about your goals (and frame broadly) then you might discover alternative uses for those funds.

…you might enjoy working less and teaching your kids what you know

…you might have superior ethics because you haven’t placed pressure on yourself to earn millions over the next two decades

…you may be a better spouse without all that pressure

…your kids might do better if you back them financially as adults

…if you’re in a weak public school district then your relocation budget might be bigger than you think

A very successful friend of mine always wondered why his father refused to pay for any of his education. My friend got himself through MIT and, as it turned out, didn’t need help from anyone.

Perhaps his Dad ran the numbers.