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Dyer & Co. turns 5


Five years ago I returned to the work of a financial planner. When I did, I made the conscious decision to “go independent.” That means I did not hitch my practice to a traditional bank, brokerage or insurance company. Places like that have countless commission and fee-laden products that they urge a guy like me to sell to a person like you. My product, I decided, was financial peace of mind. I believe it’s harder to find that peace of mind if you’re not working with a fiduciary like me who puts your interests first. 


Going off on my own also meant I could name this enterprise whatever I wanted to. As you may know, the name comes from the building supply business my grandfather ran many years ago in Martinsville, Virginia. The last five years have been far more rewarding than I anticipated. I am deeply grateful to you for your role in that. Thank you.

Headed for a Shutdown?

It would appear as though the U.S. Federal Government is headed toward a shutdown this weekend unless Congress can reach an agreement by midnight on Saturday. How does this affect investors?


According to the asset manager, Vanguard, there have been 21 U.S. government shutdowns since 1976. In February 2018 Congress reached a deal shortly after midnight, so the market never had a chance to react. Of the other 20 occasions, the S&P 500 went down nine times and up eleven times. Huh. The eleven day shutdown in 1979 saw the stock market decline most steeply by losing 4.4%. The most recent shutdown (December 2018 - January 2019) lasted over a month during which the S&P 500 rose 9.3%. 


What does this mean? It means there is no clear connection between short term government shutdowns and market performance. Yeah, but what about the economy, you ask? The Congressional Budget Office estimates that the most recent shutdown I mentioned a moment ago (also the longest on record) dinged Gross Domestic Product (GDP) to the tune of 0.1% thanks to the delay in federal spending on goods and services and the loss of contributions from furloughed federal employees. 


The bottom line? You may experience some pain or frustration from a government shutdown in the coming days for other reasons. But historically speaking, shutdowns haven’t created any major concerns for investors.


Not Your Father's 529 Plan

The FAFSA Simplification Act will introduce important changes for the 2024-2045 academic year. You may be familiar with the FAFSA (Free Application for Federal Student Aid). A family inputs a variety of financial information and the FAFSA calculates their ability to afford higher education. Many schools use it to assess a student’s financial aid eligibility. 


College savings held in a 529 plan and owned by a parent can diminish a student’s eligibility for financial aid. This is not the same for an account owned by a grandparent. Up until now, however, distributions from a grandparent’s 529 to pay for tuition has counted as student income on the FAFSA, which has also diminished aid. This consideration is going away for the upcoming academic year, however. That means that 529 accounts owned by grandparents aren’t counted at all by the FAFSA, making them an attractive haven for those saving for college.

Where I've Found Wisdom

4,000 Weeks, Time Management for Mortals by Oliver Burkeman


In addition to being funny, this book challenged my notion of time itself and how to think about the 4,000 weeks the average person experiences. Time management itself is a bit of a false promise, Oliver Burkeman wants you to know right off the bat. Proper time management, we are told, results in Inbox Zero at the end of every day; resting at home in a state of Nirvana. The author sees through this, however. Anyone who develops a mastery of task completion is quite naturally assigned more tasks. It reminded me of a friend who made partner at his law firm. It was like winning a pie eating contest, he told me, where the prize was all the pie you can eat. Ug. This book explores how might we “manage time” in a more fulfilling way.


Mr. Burkeman gave me several good things to contemplate. Even before I saw Neo learn Kung Fu in The Matrix through a data port in the back of his head, I’ve longed for a faster way to process information. I’m a really slow reader. (I can, however, listen to most podcasts and audiobooks at 2-3 times normal speed.) Burkeman would urge us to accept the fact that any task takes some amount of time to complete. Whatever task you’re engaged with at any given moment, give it the time required to do it as well as you need to. Reading a book. Mastering a skill. Cultivating a relationship. Part of their value comes from the time invested. This is how life works, he reassures us. Problems, too, sometimes simply require time for a solution to emerge.


Here’s a concept that I keep thinking about. Time is a network good. We can argue that money is valuable based on its quantity. More is better. Smart phones don’t work that way, however. We don’t need more than one smartphone for it to enjoy its full utility. Its value comes largely from its networked ability to connect us to others with smartphones. Time works the same way. A life of leisure and luxury spent in complete isolation is really not very valuable at all. The value of our time increases based on our ability to find ways to spend it with people we like. That should be the stuff you cram into your 4,000 weeks. I hope you find some ways to connect with those you care about this weekend. Thanks for reading.

Thank you for reading. If you liked this content, please share with a friend. You can always reach me by replying to this email or at 704-323-6872.

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