September 28, 2023

Hey everybody! I’ve a brief submit in the present day. We had a really busy weekend on the RB40 family. I labored on our taxes and RB40Jr had 2 Final (Frisbee) video games. The taxes weren’t too worrying as a result of I’m submitting an extension. Nonetheless, there have been extra taxes to cope with for Portland. We needed to pay the Artwork tax, the Portland enterprise tax (weblog), the Trimet tax (public transportation), the Homeless tax, the Rental tax, and the State revenue tax. I swear, Portlanders by no means met a tax they didn’t like. I completed them and paid on-line. That made life a bit less complicated. Now, I’m good for six months. Anyway, I’ve been following the Jack Teixeira case within the information and I need to share my considered it.

Jack is in HUGE hassle. He was a younger IT specialist with the Massachusetts Nationwide Guard. Over the previous few months, he acquired and shared lots of of presidency secrets and techniques on Discord together with his on-line buddies. He advised them to not inform anybody. Yeah, like that’d work. In fact, somebody shared the paperwork on different platforms and it prompted a sensation within the information. The investigation shortly led to Jack. Now, he’s in jail and can in all probability go to jail for a very long time. It appears he didn’t carry out a risk-reward evaluation earlier than changing into an inadvertent traitor.

Threat Reward Matrix

Right here is an easy risk-reward matrix that everybody ought to find out about.

It’s fairly easy. We make all kinds of selections each day. Each choice has dangers and advantages. Most of them fall into the Protected Zone. Sunday, I drove RB40Jr to play Final. It value 3 hours of my time and a little bit of gasoline. He bought good train and a lesson on easy methods to play on a group. Final is a no-contact sport so the danger of damage is minimal. That is the type of low-cost, low-benefit choice we make on a regular basis. Nonetheless, we want to consider it so much tougher if the danger is excessive.

Jack went to the No-Go Zone and he’s paying the worth for it. It was silly to share secret paperwork to impress his on-line buddies. He achieved his goal and bought some road cred for a number of months. Nonetheless, this can be a meager reward for the danger he took. When you share secret paperwork on-line, it’s extremely prone to unfold. As anticipated, his on-line buddies turned on him as quickly because the FBI confirmed up.

He ought to have thought in regards to the penalties earlier than breaking his safety clearance.

Keep away from the No-Go Zone

That’s a lesson for RB40Jr. We talked about it and he agreed that is high-risk, low-reward. It isn’t price it. I attempt to stay within the Protected Zone and the Win Zone. That’s the place life is nice. As soon as in a protracted whereas, I enterprise out into Hazard Zone, if the reward is excessive sufficient to justify the danger. I retired from my engineering profession once I was 38. It was dangerous, however it was price it. However I keep away from the No-Go Zone like a plague. Why tackle a lot danger if the reward is inconsequential?

What about you? Do you thrive within the Dangerous Zones?

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Joe began Retire by 40 in 2010 to determine easy methods to retire early. After 16 years of investing and saving, he achieved monetary independence and retired at 38.

Passive revenue is the important thing to early retirement. This yr, Joe is investing in business actual property with CrowdStreet. They’ve many tasks throughout the USA so test them out!

Joe additionally extremely recommends Private Capital for DIY buyers. They’ve many helpful instruments that can aid you attain monetary independence.

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