“You Wrote Me a Letter”

While I often write about money I also write about my personal experiences.  One of my favorite posts was about how one seemingly small step out of my comfort zone changed my whole life.  Today I want to write about a pivotal email I wrote seven years ago that led to the biggest promotion in my career and to the slightly early retirement I enjoy today.

 

My entire thirty plus year career was with a single company.  But I also worked for three different chemical companies during my career.  Say what…?  No, it is not a clever riddle, I just worked for a company that was sold off twice while I worked there.  Corporation A owned our company when I was a summer intern and later a graduate engineer.  Corporation B bought our company from Corporation A six years later.  Corporation C made Corporation B an offer they could not refuse and my company once more became part of something new.  This post is about my last four years of work, at Corporation C and how taking action to do one little thing made all the difference.

By the time Corporation C bought the plant I had already done just about every job imaginable for our company.  I was an intern, an engineer, a senior engineer, a supervising engineer, an engineering manager, a plant manager, a Vice President of Operations and the Vice President of Government Affairs.  My career had been a fast and steady climb up the corporate ladder and had only recently been derailed slightly when I was transferred from VP of Operations to the Government Affairs position.  It isn’t that I didn’t like being in a lobbyist role.  I did, it was fun and extremely different than my previous work but it was clearly a step down and the kind of sideline role given to a fast riser who has topped out in terms of his advancement potential.  As a super competitive personality type I did not like being shunted off to the side.  Also, the position was something of a luxury for a company our size and was very vulnerable to being eliminated during future hard times or if our company was sold to a larger corporation.

And of course that is exactly what happened when Corporation C decided to buy our company.  I was in a precarious position because Corp. C already had a Vice President of Government Affairs and probably did not need two of us!  For the first time in my career I was scrambling to save my job.  Fortunately, I had just discovered that there was a possible way to get a thirty million dollar tax break for the company and was able to convince our new masters that we should take a shot at it.  I was assigned to work with one of their executives and between the two of us we turned about 12 weeks of work into a $36 Million profit!  It was a huge win, one of the largest of my career, and it did get me noticed by the CEO. However, it was obvious he was all about the future and did not think I would be able to repeat that once in a lifetime bonanza.   And to be truthful it was not likely I would ever stumble over something that big again.

Six months later the CEO and his team put together a list of redundant people.  I was on the list, as was our company attorney, and several other people that had duplicates in the Corp. C ranks.  He called each of us in for an interview, actually he visited us in our offices instead of the other way around.  He just walked in with no warning and asked me “What do you do here, and why should you stay?”  No pressure, right?  As a lobbyist I usually had a glib answer for any question but I was kind of stumped.  The fact was I never volunteered for the job and always felt my skills were better used running the company than influencing legislators and regulators.  That apparently showed through whatever lame answer I made and I could tell he was mentally crossing my name off the list of people to keep. I left that interview feeling very defeated.

The last thing he asked me was “How did you get so beat down?”  I was floored because until that moment I did not realize that I had been feeling “less than” for the last few years.  I knew I had been diverted off to the side, away from where the really big decisions were being made.   But I was winning a few fights and what about the $36 Million I had just brought in?  But he was right, I had gone from being a shining star at the company to being in the administrative backwaters.  I was the guy who had run the whole place, and this 40 year old CEO could not imagine how anyone with talent could allow themselves to get derailed from the fast track. He walked out and all the things I should have said flooded into my brain…too late.

I have to step aside from this story to tell you about my dad.  My dad was a believer in writing letters (this was before email!).  If a company did something really cool, he would write the CEO a personal letter.  He loved to fish and it occurred to him that fishing gear tackle boxes ought to have wheels on them like rolling suitcases.  So, he wrote the CEO of the leading tackle box manufacturer a letter suggesting that. The CEO wrote him back and said they agreed and to expect a package in the mail.  They sent him the factory prototype of a huge rolling suitcase type tackle box that they decided against making, because it was too big, but they wanted him to have it.  Another time I was riding in my car listening to a guy who used to have the radio program with the most listeners of any program in the world, Paul Harvey.  He mentioned my dad’s name in one of the commercial breaks, and then he mentioned my name and my brother’s.  Ten’s of millions of people were listening as he went on to explain that my dad had written him a letter about a product he advertised, a Bose Acoustic Wave machine. It was a very nice compact stereo system in its day, that Dad had given to me and my brother and it made for a great commercial.  Those are just two times, out of many, that come to mind when my dad, a man who wrote letters, got surprising results.

 

Back to my story. I was looking at being fired from the only company I had ever worked at.  A company where I had gone from part time intern to running the entire operations. A prestigious company that was a household name in the region with billions in sales and hundreds of employees.  Getting fired because I was redundant and irrelevant!  What to do?  I thought about my dad and I wrote a letter.  I wrote an email of course since letters are kind of 1985, but same thing.

 

The email opened with thanking the CEO for pointing out something I had been blind to.  I had indeed lost my mojo accepting a job that did not inspire me.  But I had talent, I knew the plant, the logistics and the people and I could lead.  I told him if he gave me a job, any job, I’d show him.  That’s pretty much all I said, I made no excuses.

 

A few days later he walked into my office again, unannounced as usual, with just one thing to say, “You wrote me an email.” And then he walked out of my office, that was all he said.  Later that day his number two guy came into my office, sat down and asked me if I’d agree to run the company again.  I said yes and that started the most exciting, profitable and intense part of my entire career leading up to my early retirement four years later.

 

Life swings on such little things.   Early in my life everything changed when I stepped out of extreme shyness to act in a play.  And then decades later after a terrible interview I threw a desperation long pass toward the end zone and life changed again.  Most people placed in the position I was in would have been fired.  Because they wouldn’t have written the email.  I certainly would not have sent it except for my dad, the man who wrote letters and achieved surprising results.  Maybe you need some surprising results in your life?  Sometimes it pays to go to straight to the top with what is in your heart.  What do you have to lose?

 

What about you, have you ever written an email that made all the difference?

 

Did you ever face a crisis, and then realized what your dad would do, and did it? 

 

Please leave a comment by clicking on the title of the post.

Dinner with Personal Capital

If there is one company’s name that pops up in more blog posts than any other it surely has to be Personal Capital. One reason might be that this generates some micro-income for bloggers but more likely it is because Personal Capital’s free suite of personal finance tools are arguably the best thing since Diet Mountain Dew.  Let me assure you I get nothing for promoting Personal Capital or any other entity (including PepsiCo).  I pay for this website because I like to write and I do not monetize anything associated with this hobby.  I do have some hobby side gigs that are profitable but they don’t include blogging.

Just because I’m not getting paid does not prevent me from being a fan. But unlike most in this community I am not only a user of Personal Capital’s tools to track my net worth, income and expenses I am also a paying client.   And because I have over $1 Million under their management I’m also in their Private Client group. Yesterday my wife and I hopped in our $7,000 car and drove five hours to attend a private client appreciation event in Dallas, TX.  We checked into a brand new Hampton Inn in Plano and killed a couple of hours reading then headed to the restaurant.  Let me apologize here for destroying your dreams of what life is supposed to be like if you have millions of dollars and spend your time however you want, free of a 9 to 5 job. Yes, we do have a 2008 model car with 170,000 miles on the odometer and I stay in a lot of Hampton Inn’s, both on leisure and consulting trips.  In fact,  it was a very nice new hotel and it was only $87.  And for people that do not think older cars are reliable we just got off of a 3,050 mile road trip in that car without a single problem so driving five hours to Dallas was no big deal.

 

The restaurant was new to us, a place called Jasper’s, and it had great ambiance, terrific service and excellent food.  Although we were being treated by Personal Capital I did look up the menu and the prices were lower than I would have expected for the quality that was delivered.  We valet parked and were led to the room that had been reserved for the event and found ourselves in the company of about 30 other private clients with at least a million under Personal Capital’s management.  It was a little odd, how often are you ever in a room where everybody is a millionaire?  It was fascinating to mingle and observe these millionaires in their native habitat, a trendy swank restaurant.  I do not know the net worth of the group but the median account in Personal Capital’s private client group is about $2 Million.  Also, most people, like me,  have other million dollar accounts in their portfolio besides their Personal Capital investments so it is reasonable to assume that everyone there was a multi-millionaire.  It was almost all husbands and wives together with only a few singles.  The average age was probably late 40’s, at 62 we were among only a handful of boomers there. Everyone looked very fit and slim and the preponderance of the group were involved in IT as engineers, network specialists or in sales.  There was no dress code specified on the invitations and people ran the gamut from faded jeans to suits.  I think I was the only oil and chemical guy in the group which surprised me considering Dallas is, well, Dallas.  And Dallas used to be all about oil, now not so much.

The two other couples at our table were both involved in networking IT, the husbands quickly found common ground having both worked for Cisco in the past.  One wife worked for a big bank and the other maintained a vow of silence all evening so we never learned anything about her. Interestingly one of the two guys was currently unemployed which doesn’t fit most people’s millionaire model.  Neither professed a plan to retire early.  Neither couple professed any frugal tendencies and the houses they mentioned were 4,500 square foot McMansions.   They were very bright, good conversationalists and nobody seemed interested in one upping anyone else.  They all complained about Dallas traffic on their commutes.  I did not meet anyone else there that was retired but I only got to speak to a few of the attendees.

 

Our main host was one of the big dogs at Personal Capital, Michelle Brownstein.  She was young, brilliant and is the Director of Private Client Services.  She had a couple of representatives from the Dallas office with her as well.  While we ate Michelle and her teammates presented on the current markets, Personal Capital’s newest tools and some “inside baseball” on how the company functions.  It was very interesting and I came away feeling even better about their management of one of my investment accounts.  Was it worth ten hours of driving and a night in a hotel?  Yes it was, and especially valuable to my spouse who knows where every penny is but who prefers to let me direct where we invest.

You may wonder why I pay anyone to handle my investments and it is a fair question.  After all, I currently help manage  $65 Million in foundation trust investments as a volunteer and have managed two similarly sized company retirement plans in my working past, plus I’m a personal finance blogger.  I have the knowledge to handle this myself and not pay anyone else a fee to do it yet I have most of my portfolio split up between Personal Capital, Vanguard Managed Accounts and Betterment, all of whom charge management fees.

Why do I pay fees?  I do it because I do not enjoy managing my money, I prefer to trust professionals and the fees at my stage of life are not going to significantly impact my net worth.  Plus, wives outlive husbands in most cases and if I take a misstep on one of our extreme hikes or ski off a cliff (again) she can just leave everything on auto-pilot if she so chooses and be assured that all will be well.  Personal Capital charges me 0.79% for managing my account because it is over one million.  There is another fee discount for accounts higher than three million and I may move enough money to qualify for that at a future date but I’d like to ride out a major correction or bear market with all three and see how their different takes on diversification hold up.

Now my wife would be upset with me telling you this next thing, if you knew who she was. But since my anonymity is still iron clad I’ll go ahead.  My wife and I had ribs, one of three choices on the event menu.  We are runners and tennis players and cannot afford to haul around any extra pounds so we are pretty light eaters.  The four-high stack of rib clusters on each of our plates was twice what we could scarf down on our best day, so as usual, we left half of our food untouched even though it was incredibly tasty.  When the waitress picked up our plates she asked if I’d like it boxed.  I usually would not do that at a social event because, I don’t know, it seems way redneck? But since she asked I thought, why not? She took the plates away and discretely handed us our doggy bag on the way out.  So, half of last night’s meal is riding in our cooler in the back seat as I type.

I am pretty sure nobody else did that and I would not have if the waitress had not made the suggestion, but I’m glad we did.  Wasting food always feels wrong and eating leftovers from a nice restaurant meal feels kind of like finding a ten dollar bill on the sidewalk.   We are not strict frugalists by any stretch but compared to most of the others in the room we were.  We have a modest house and older cars and we do get left over doggie bags frequently when we eat out.  We stay in borderline budget hotels.   And there was one other difference.  We have both been retired for several years at a slightly earlier than conventional retirement age, and the other people at the event did not seem to even realize that was possible.  The unemployed fifty-something multimillionaire sitting next to me was actively promoting himself to the guy on his other side as a job candidate for another 9 to 5.  It had not even occurred to him that maybe he did not need a job.  Being immersed in the FI and FIRE communities I had come to think that most millionaires probably were just like the rest of us and saw money as giving them the option to hang up the 9 to 5 in favor of something new and exciting.  Sitting in a room with thirty multi-millionaires has convinced me that most do not think they can afford to retire.  I felt like the odd man out or maybe the only one in the room that really “gets it”.

As an aside I’ve heard people speculate that the Millionaire Next Door model of the discreet stealth wealth millionaire, who used to be represented by the small businessman who ran a scrap metal yard or a small plumbing business is now more likely to be an IT person.  By far the majority of the people at the client appreciation event were in the IT or corporate sector.  I did not meet anybody that met the old small family business stereotype.  I think that the model has changed since the world has become so small and interconnected by the web.  Yesterday’s scrap metal guy is today’s app coder or search engine optimization expert.

I am a Personal Capital fan because I like their investment philosophy but I also hedge my bets by having Vanguard and Betterment do their own unique style of investing with my other investment accounts.  My wife and I started out with nothing except our college degrees. We got here by living below our incomes, saving aggressively and avoiding lifestyle creep.   And in no small part due to the fact that I found a career that I loved and that loved me back with affirmation and strong compensation. We used all the investment vehicles available to us including 401k’s, IRA’s, Roth’s and taxable brokerage accounts.  The simple truth is how you invest is relatively unimportant compared to how much you invest and how early you start investing.  But if you are not keen on managing your own investments then Personal Capital is one place you might want to check.  They have a fairly unique stock investment plan that is not market cap weighted.  That means I am not so concentrated in Facebook, Amazon, Netflix and Google as an S&P 500 index fund would be.  They have great tools and are growing exponentially in the amount of money under their management.

 

So what about you, is anybody else a client of Personal Capital’s money management services? 

 

Does it surprise you that a room full of multi-millionaires was not familiar with the concepts of financial independence or aware of the early retirement movement? 

 

As always, if you’d like to make a comment just click on the title of this post!