RENEWABLE ENERGY: A COMPLEX SYMPHONY TO BE CONDUCTED, NOT REGULATED

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The U.S. energy industry is undergoing a change of direction, as President Trump focuses on economic policies that help the U.S. economy, rather than taking misguided action in the name of global warming.

When it comes to the energy industry, the goal is to make America energy independent, through an “America First” energy plan. America’s historic dependence on imported energy (most significantly oil) makes it vulnerable to hostile regimes and forces the U.S. to compromise its foreign policies. A true leader of the world has to be independent.

Renewable energy will change the international power scale and rules as it can give countries freedom from the oil monopolies (i.e. OPEC). This is an opportunity that must be seized by the U.S. to ensure its future independence.

The complex industry of renewable energy

The main challenge facing the renewable energy industry today is that renewable energy is variable and unpredictable. When tasked to power a city’s energy grid, using an energy source that is unpredictable is not an option. The city (with all its essential services such as hospitals, street/traffic lights, etc.) cannot wait for the weather. Thus, the use of fossil fuels is necessary. Fossil fuels are very predictable and reliable: the supply is guaranteed (at least for the foreseeable future), you burn the fossils and produce power. This allows for the power grid to always be on.

States have started to introduce renewable energy into the grid system to compliment the use of fossil fuels. Energy from both renewable and fossil resources are being used together to power a city’s power grid. As long as there is renewable energy available, the power grid decreases the use of fossil fuel energy and gradually increases the use of renewable energy.

This process of gradually shifting to a renewable energy-predominant power grid is rather complex because it has to orchestrate supply from different energy sources, in different doses, at different times of the day. In U.S. there are 66 power grids cooperating with each other to use energy from at least 6 energy sources (utility-scale solar, distributed solar, hydro, natural gas, wind, and storage energy) in different doses, at different times. Building a system that can correctly and consistently rely on renewable energy to power the nation’s power grid is a very complicated. This system will have to employ the use of big data to understand and predict the behavior of both the weather (supply) and the people (demand).

Digital technology will be a requirement of such a system. The digitization of the electric system will increase the range of possible options, which will make decisions much more difficult for management to make, in too short of a time. The digitized renewable energy system will require the integration of machine learning and artificial intelligence technologies into the power grid operations.

Most new renewable energy power systems will face the issue of curtailment. Curtailment seems to be the bottleneck of the renewable energy industry at the moment, and it happens because of the inefficiencies present in the new and complex power system. Once curtailment is reduced from an average of 10% to close to 0%, it makes renewable energy sources more efficient and predictable; this will represent a big victory for the power markets and financial structure of the renewable energy industry.

Policy Recommendation:

Any policy meant to cripple traditional energy source use (i.e. coal, oil) on purpose must be eliminated. Shutting down a coal plant does little else other than hurting the economy (especially the local economy). Instead, President Trump should double down all resources on policy meant to encourage and aid the development of renewable energy.

The most complex part of the federal energy policy is to work with the private sector to create the most advanced and reliable renewable energy infrastructure/grid in the world. This is not simple; it is rather difficult: a power grid system that relies fully on renewable energy sources will resemble an immense computer system that feeds big data into machine learning technologies to create an artificial intelligence system that is always able to keep the power on. Multiple new industries must come together. As a businessman himself, President Trump and his Administration must use its business savviness to listen to the private sector and craft legislation and incentives that allow renewable energy companies to thrive. This new legislation must also allow and encourage easy cooperation between industries (renewable energy, big data, AI, machine learning, security).

President Trump should take the funds saved from the Paris Agreement, and part of his $1 Trillion Infrastructure budget and invest them in the renewable energy infrastructure system. Renewable energy proves to be much cheaper in the long term and will be easier to install once economies of scale are achieved. Because of this, redoing the entire U.S. infrastructure to include renewable energy components (i.e. roads repaved with solar panels) is more enticing and economically viable than rebuilding the U.S. infrastructure the old way (only brick and mortar without smart technology).

By focusing a large part of the $1 Trillion budget towards renewable technologies, President Trump would create thousands and thousands of jobs, would help renewable energy/clean tech companies innovate new technologies, and massively grow their production lines of supply to meet the increased demand. All the while, modernizing the United States and earning energy independence.

Currently, the clear world leader in renewable energy investment is China, which increased its spending by 17% to $103B in 2015, or 36% of global total. China has been extremely committed to developing its renewable energy capacity. Since 2011, it more than doubled its investment in renewables, achieving an impressive 38% CAGR over the past 10 years. Although the United States increased its investment this year by 19%, it came in a distant second, with $44B invested in 2015, or 15% of global total. Unlike China, the United States has not shown the same enthusiasm for renewable energy, recording a 21% CAGR over 2004-2015.

However, U.S. is still the number one country in terms of company-level funding: PE/VC financed renewables with $2.2B, while the public markets issued shares worth $9.7B in 2015. If President Trump would make it clear that renewable energy will be a large part of the $1 Trillion infrastructure plan, both the private and the public renewable energy markets would grow at a rapid pace, providing even more capital available to companies in the U.S. to develop and dominate the global renewable energy industry. Nothing spells security for capital markets like long-term energy contracts with the United States government.

In conclusion, the renewable energy race is much too important for the independence of the United States. It is a very complex industry and rapid success requires a close cooperation between the U.S. government and the private sector. The government’s efforts must be fully focused on growing the renewable energy industry, instead of regulating into oblivion parts of the coal industry. President Trump made logical business decisions when he pulled the U.S. out of the Paris Agreement and challenged the CPP. That was the easy part. The hard part will be to pass policies that allow the cooperation between renewable energy and multiple necessary industries such as artificial intelligence and machine learning. President Trump must get the government out of the way, by adjusting any legislation that would make it difficult for the renewable energy industry to grow. The President can turbo-charge the growth of this industry by dedicating a large part of his $1 Trillion infrastructure budget to rebuilding the U.S. infrastructure using renewable energy systems.

 

SOURCES:

International Energy Outlook 2016, US Energy Information Administration online

Global Trends in Renewable Energy Investment 2016, Bloomberg New Energy Finance online

World Bank Fossil fuel energy consumption
(http://data.worldbank.org/indicator/EG.USE.COMM.FO.ZS)

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The FATCA Debacle Requires Repeal

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In April 2017, U.S. Senator Rand Paul (R-KY) finally brought efforts to repeal the Foreign Account Tax Compliance Act (FATCA) to U.S. Congress. Senator Paul further testified before the U.S. House Oversight and Government Reform Committee’s Government Operations Subcommittee on the benefits of FATCA repeal. According to Senator Paul, “FATCA disregards the Fourth Amendment and privacy rights by requiring the bulk collection of innocent Americans’ financial records.” FATCA, enacted in March 2010 to December 2012, purportedly serves to detect, document and collect taxation on non-US financial assets of U.S. citizens and legal U.S. immigrants. According to the IRS, over nine million U.S. corporate entities and individuals fall under FATCA reporting requirements. FATCA has been supposedly introduced to provide transparency in international tax policy, especially pertaining to traditional offshore private banking activity. In 2015, the now infamous leak of Mossack Fonseca’s Panama Papers further exacerbated banking privacy laws, forcing an even more punitive FATCA enforcement regarding offshore transactions.

Good governance requires transparency. However, should transparency hold a country’s citizens to reporting ransom without taking context into play? Most U.S. citizens holding accounts abroad may have professional duties that require a foreign checking account, or that requires dual signature on guardianship accounts with parents, children and other family members. Not all offshore accounts are created to hold nameless shell companies such as was exposed via the Panama Papers fiasco. Yet, U.S. citizens under onerous FATCA reporting pay a heavy price in both documentation and in dollar amount. Since 2010 the international offshore community has found it nightmarishly difficult to handle new U.S. clients that may cause bureaucratic and legal issues with the IRS. Chapter 4 of Code Sec. 1471, FATCA, demands that IRS withholding agents garnish a whopping 30% of foreign financial institution income concerning U.S. citizen accounts, even on minor reporting errors.

The FATCA reporting process is confusing at best. The FBAR filing, also known as the Report of Foreign Bank Accounts, FinCEN Form 114 or TD F90.22-1, is not the only filing that is due to the IRS. The majority of fined U.S. taxpayers fall under this unfortunate category. All U.S. citizens with non-U.S. financial assets must also file Form 8938, which is the Statement of Specialized Foreign Financial Assets. As confirmed by Parent & Parent LLP, IRS penalties for non-filing are as follows:

  • A non-willful penalty, not to exceed US$10,000, may be imposed on any taxpayer who violates or causes any violation of the FBAR filing and record keeping requirements;
  • A willful penalty may be imposed on any taxpayer who willfully fails to file the FBAR, with the cap on the penalty being the greater of US$100,000 or 50% of the balance in the account at the time of the violation.

As we see, IRS penalties are enforced regardless of intention, and can also be implemented if the filer has all documents correctly submitted, but may be one day late.   It is noteworthy that any account in question need not be active and running over with funds to be penalized. In other words, Grandma’s account opened for her dual citizenship grandchild abroad, with no more than US$1500 in total, will be up for an IRS fine of up to US$10,000 if reporting errors are unintentionally made.

In addition, while the statute of limitations for FBAR penalties is 6 years, the statute for Form 8938 is limitless, and applies to an individual’s entire tax return. Specifically, this means the IRS can choose to conduct yearly audits on the faulted individual for an entire life span. The need for tax governance and transparency should not amount to such legal punishment, especially for individual clients.

Double taxation and or double tax reporting under FATCA have made U.S. citizens residing abroad vulnerable to legal shenanigans. And contrary to popular sentiment large corporations and multi-billionaires are not being punished as harshly as are U.S. expats, U.S. professionals abroad, and U.S. citizens who have foreign families with regular accounts abroad. As Parent & Parent LLP satirically stated, a foreign drug lord with stacks of cash parked offshore is safe tax-wise in comparison the average U.S. citizen affected by FATCA’s punitive international tax dictates. Senator Rand Paul and Congressman Mark Meadows (R-NC) have recommended the following steps to U.S. Treasury Secretary Steve Mnuchin regarding FATCA repeal:

  • To introduce the issuance of a Statement of Administration that welcomes the FATCA repeal not only as a stand-alone tax problem, but as an integral part of the total tax reform package to be drafted and enacted by the Trump Administration.
  • To cease and desist the signing of any new intergovernmental agreements (IGAs) enforcing FATCA reporting until the U.S. House can review and act on the FATCA repeal bill.
  • To review existing IGAs under the U.S. Treasury’s jurisdiction, and to declare invalid ab initio any IGA that the U.S. Treasury deem unfit upon examination.
  • To grant temporary compliance to foreign financial institutions that have been found unfairly impacted by FATCA dictates until full review by the U.S. Treasury.
  • To instruct the IRS on granting provisional ‘mercy’ to U.S. individual taxpayers who especially have not willfully made errors on FATCA reporting.

We applaud Senator Paul and Congressman Meadows in their endeavors to repeal FATCA and redefine such an abysmal international tax policy that serves to burden the U.S. individual taxpayer involved in international banking. In addition, U.S. citizens involved in long term financial transactions abroad should seek U.S. legal counsel in regards to FATCA reporting, and not leave such documentation solely up to the discretion of a foreign financial institution or a foreign CPA.

 

REFERENCES

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The Financial Power of Impact Investing

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For many years the divide between instruments of philanthropy and investing has been clear cut. Investing strategies typically did not involve social organizations focused on non-governmental organization (NGO) concerns. However, the advent of millennial investing power, the rise of social enterprises, and the need for further asset diversification have blurred the line between both industries. Environment, Social, Governance (ESG) investing, informally known as impact investing, is on the rise with both active and passive investors. For example, ESG assets under supervision at Goldman Sachs have grown from US$3.8bn in 2015 to US$6.5bn end of fiscal 2016. As Goldman Sachs poignantly stated, ESG investing is now mainstream even within the pension fund and insurance sectors.

Even though financing social causes has overlapped between philanthropy and ESG investing, by no means is the latter non-profit seeking. First, while impact investing may dive into sectors once thought as solely philanthropic, let us make it clear that the investing strategies used to generate returns do not veer from tradition asset management practices. Specific return objectives are set, even if the companies that are in the portfolio may comprise all social enterprises. In fact, Goldman Sachs recommends that investors should be even more aggressive with risk/return analyses when it comes to ESG portfolios, to ensure even more accountability. Traditional sectors tend to put the bottom line first by nature, so it is of utmost importance to hold for-profit social enterprises accountable for revenue and profit estimates.

U.S. Trust’s “Impact Investing: A Guide To Doing Good While Also Doing Well” gives an excellent overview of impact investing. According to the U.S. Trust, managed U.S. assets committed to impact investing in total grew from US$640 billion in 1995 to US$6.57 trillion at present. Impact investing can be broken down into further categories of socially responsible investing (SRI), faith based investing, green investing, and values based investing (VBI). For example, an investor who is against tobacco use but is not necessarily pro-environment may seek investment in an SRI portfolio, but not a green portfolio. As with traditional ETFs and mutual funds, diverse social investing asset classes are available via equities, bonds, REITs and even private equity. Investment funds including these ESG options in have indeed increased from 55 to 925 within the last two decades. In particular, U.S. Trust’s ESG investor pool jumped 23% from 2015, with a whopping 93% of millennial investors who have added ESG components to their portfolios!

ESG investing is an excellent mechanism to be considered by shareholders through engagement and by Board of Directors through guidance and governance. Rick Scott, Vice President of Finance and Compliance at the McKnight Foundation, gave great insight as to the need for adding and monitoring ESG components to investment strategic directions at the Board level. The McKnight Foundation has allocated 10% of its US$2bn portfolio strictly to impact investing with a focus on US clean water and carbon footprint. Scott enlightens that the Board must call for a “triple bottom-line for financial, programmatic, and learning return.” Boards must have an investment or risk committee assigned to give oversight on risk/return objectives specific to the triple bottom line, and with C-Suite determine the healthy mix of ESG and traditional components for portfolio investments. We have said time and time again that clear internal corporate governance goals and procedures, in this case adopting a “triple bottom line” approach, is the most pertinent form of corporate social responsibility an organization can practice.

While global institutional investors have now become ESG investing stalwarts, retail investors, individual private investors, and minor shareholders may still need direction in how to effectively embark on the ESG investing journey. In addition, the ESG investing sphere has been known to be have quite a few ‘greenwashers’ with more public relations talk than actual profit generating. As with any investment vehicle, extensive research is recommended. Global investment firm Cambridge Associates has developed the Impact Investing Benchmark which comprises 51 private investment closed-ended funds dealing strictly with the intent to generate social impact. From this data, Cambridge Associates created and MRI Database, and uses ImpactBase extensively as well. U.S. Trust as well has developed benchmarks via an IMPACTonomics™ program, which has specific in-house and third party impact investing platforms such as the Breckinridge Sustainable Bond Strategies and IMPAX Global Environmental Markets Fund.

Many have the misconception that impact investing precludes investing in traditional industries, such as the fossil fuel and mining industries. Absolutely not! The smart and savvy investor must see diversification opportunity in line with tailored return objectives. There is financial power in such comprehensive asset management. The end point is return on investment, whether from most profitable traditional, social, and technologically advanced companies in the market. A gold mining company with a strong, proven corporate responsibility background can share the same portfolio as a profitable microfinance company that lends globally to small entrepreneurs. Again, the crux of investing in any asset class lies with return objectives. ESG investing, like smart technology, is no longer the niche market. As Rick Scott and Goldman Sachs put it, the point is to find the “right tools for the right time.” The time is right to consider impact investment vehicles in tandem with traditional market portfolios.

SOURCES

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Turning around the US Economy:- My Top Recommendations for President elect Trump

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The people have finally spoken. Donald J. Trump has won and will be our next President for the next four years … and if things are done right, maybe the next eight too.

It is not going to be easy given the mess he inherited from President Obama which basically sums up as below.

  1. Total US debt, including private and business debt, is today $67 trillion, or just under 400% of GDP.
  2. We have 95 million people not in the labor force; 15 million of them not employed. That’s twice the number officially unemployed.
  3. We have almost 2 million prison inmates, 43 million people living in poverty, 43 million receiving food stamps, 57 million Medicare enrollees, 73 million Medicaid recipients and 31 million still without health insurance.
  4. The US federal government debt will be slightly north of $20 trillion before Obama leaves office in January. Local and state debt is another $3 trillion. That is a total of more than $23 trillion of government debt and a debt-to-GDP ratio of somewhat over 121%. That debt has risen roughly $10 trillion under Obama, in just eight years. This US debt total does not even take into account the over $100 trillion of unfunded liabilities at local, state, and federal levels that are going to have to be paid for at some point.

Bottom Line:  We are still witnessing a disaster in the making. The more we increase our debt, the more difficult it is going to be to grow our way out of our problem with the debt.

Something like $5.5 trillion is “intergovernmental debt.” And even if we did dismiss this internal debt, the government’s debt-to-GDP ratio would still be almost 100% when you include state and local debt….And after eight years of the slowest economic recovery in history, we are growing our debt dramatically faster than we are growing our country—even when we include inflation. Go figure.

My recommendations for President elect Trump

Cutting corporate and individual taxes, effecting significant regulatory rollback and fixing the Affordable Care Act may help stimulate growth but will not be a sufficient condition to stimulate growth. Significant regulatory rollback will help. It is also necessary but not sufficient.

Some more serious actions should include but not limited to:

  1. Reinstituting first and foremost the Glass-Steagall Act because Wall Street cannot be trusted to manage their risk properly. This would separate true banking activities from the high risk gambling that brought the economic system to its knees. Privatizing the profits and socializing the losses is unacceptable.
  2. Appointing the right next four people out of the seven governors to the Board of Governors of the Federal Reserve. People coming from the business world; neither economists nor academics please. Also having a Federal Reserve that is more neutral in its policy making and that realizes that the role of the Fed should be to provide liquidity in times of major crisis not to fine tune the economy, will do much to balance out the future.
  3. Putting the value of the dollar relative to the currencies of other countries under the purview of the Treasury Department, not the Fed. Too much power to the Fed already.
  4. Having the currency of the US backed by hard assets. A basket of gold, silver, platinum, uranium, and some other limited hard commodities would back the USD. If politicians attempted to spend too much, the price of this basket would reflect their inflationary schemes immediately.
  5. Directing to have the FASB to make all banks and financial corporations value their assets at their true market value. An orderly bankruptcy of all insolvent financial firms involving the sell-off of their legitimate assets to well-run risk adverse banks that didn’t screw up should ensue. Bondholders and stockholders would realize their losses for awful investment decisions. The economic system would be purged of its bad debt.
  6. Having the Social Security System completely overhauled. Anyone 50 or older would get exactly what they were promised. The age for collecting Social Security would be gradually raised to 72 over the next 15 years. Those between 25 and 50 would be given the option to opt out of Social Security. They would be given their contributions to invest as they see fit if they opt out. Anyone entering the workforce today would not pay in or receive any benefits. The wage limit for Social Security would be eliminated and the tax rate would be reduced from 6.2% to 3%.
  7. Dismantling Obamacare in its entirety and converting it from a government program to a private market based program. The Federal mandates, rules and regulations would be eliminated. Senior citizens would be given healthcare vouchers which they would be free to use with any insurance company or doctor based on price and quality. Insurance companies would compete for business on a national basis. Doctors would compete for business. The GAO would have their budget doubled and they would audit Medicare fraud & Medicaid fraud and prosecute the criminals without impunity.
  8. Repealing the healthcare bill. Insurance companies would be allowed to compete with each other on a national basis. Tort reform would be implemented so that doctors could do their jobs without fear of being destroyed by slimy personal injury lawyers. Doctors would need to post their costs for various procedures. Here again, price and quality would drive the healthcare market.
  9. Dismantling completely the entitlement state.  The criteria for collecting welfare, SSDI, food stamps and unemployment benefits would be made much stricter. Unemployed people collecting government payments would be required to clean up parks, volunteer at community charity organizations, pick up trash along highways, fix and paint houses in their neighborhoods and generally keep busy in a productive manner for society.
  10. We must make a serious effort to have a balanced budget and to fund healthcare and Social Security. I would propose some form of a value-added tax (VAT) that would specifically pay for Social Security and healthcare. I would also propose that we eliminate Social Security funding from both the individual and business side of the equation and take those costs from the VAT.
  11. We also need to get rid of the shackles on growth and get the incentive structure right with the proper tax mix. Then American entrepreneurs can probably get us out of the hole we’re in without it getting too much deeper. With the amazing new technologies that are coming along, we can probably get to a point where we can in fact grow our way out of our debt problem over the next 10 to 15 years.
  12. It is one thing to talk about unfair trade agreements—and we have certainly signed a few. But we also need to recognize that some 11.5 million jobs in the US are dependent upon exports (about 40% of which are services). If we drop our corporate tax to 15% and work on reducing the regulatory burden, I think we will be pleasantly surprised by how many jobs are created just by those steps alone.

As a conclusion, let me be very clear. If we don’t get the debt and deficit under control—and by that I mean that at a minimum we bring the annual increase in the national debt to below the level of nominal GDP growth—we will simply postpone an inevitable crisis. We have $100 trillion of unfunded liabilities that are going to come due in the next few decades. We have to get the entitlement problem figured out and we must do it without blowing out the debt. If we don’t, I am afraid we will have a financial crisis that will rival the Great Depression and maybe worse.

We’re in a world where most major economies are also in trouble. If the US starts printing again money merely to service its debt because people don’t buy its debt, then I foresee total global debt in the $500 trillion range and global GDP topping $100 trillion. A total global economic disaster.

I have tremendous faith in President elect Trump and his team and just hope all those prescriptions will not go unheeded although they certainly go far, long-term, in fixing a system which is quite dysfunctional and broken.

“Draining the swamp” of our present economic morass will certainly require drastic action tantamount to a real revolution in both thought and practice.

The Old Order has gotten us into this mess, and cannot, or is unwilling, to get us out. It is past time for them to go.

Nothing much in a positive, productive sense can be accomplished under our government, as presently constituted, as it has devolved into a Fascistic, crony-corporatist construct.

Until those who govern are forced to experience outcomes consistent with those experienced by the governed, I am afraid the Republic will drift ever further away from the establishment principles envisioned by those rebellious Founding Fathers, who were intoxicated upon the fumes of liberty, fraternity, and equality of opportunity.

God bless our new President elect Trump and the United States of America…. Time to roll up our sleeves and start making America great again.

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To all those wide-eyed millennials looking for a break

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It breaks my heart to see millions of millennials still chasing rainbows and hoping that the US government or a cartoon character such as Berne Sanders or crooked Hillary Clinton were ever going to change their lives.

Maybe it is time to grow up folks and grow some too and realize that no one is going to take care of you other than yourself if you want to build anything meaningful in your life….whether nailing a big corporate job or creating your own empire. NO ONE. So get used to it, life is not fair and this will never change.

Ever since the paleolithic era we’ve been fighting over scarce resources. Whether this was food, shelter or trendy sabretooth skirts.

Times have changed – but the essence remains the same; it’s resources we’re after.

Money mainly.

In the old days, we used to have a trading system where hunters would trade their catch with fishers for example. This is an equal exchange of value of differently skilled people.

The same concept still applies today. Money simply has made trading your entire life easier.

This system allows us to tap into the expertise of others. The more difficult the task, the more money they get.

Being able to do what others cannot is what makes you “valuable”.

Anyone can sell shoes, anyone can run behind a dumpster truck, anyone can sell fast-food. But not everyone knows how to build a house, lay electrical wiring or perform an open-heart-surgery. The more difficult and in-demand your skills are – the higher your value will rise.

If you want more income – You have to deserve it first.

How?

By building up difficult skills that are high in demand based on your strengths….Nothing else will do it

This means that the barrier of entry for competitors will be high (less competition) and you work in a field where your skills are highly valued.

Additionally, building on strength gives you an “edge” on others….Sounds sweet right?

So what are strengths? Have you ever asked yourselves this question?

Strengths are the things we naturally excel at – the things that come “naturally” to us.

How Do I Find My Strengths?

You find strength through self-analysis

The best way I’ve found to do this is by keeping a journal of my life in which I’m able to spot different trends. Over time you’ll be able to hone down on what you’re really good at.

Here are three ways to discover your strengths:

1. Self-Assessment

Here are some questions you should ask yourself when looking for your personal strengths:

  • In what did I grow up around? Competence can arise from early practice, what types of activities were you involved in as a child?
  • What do strangers compliment me on? You/your direct surroundings often notice your natural strengths faster than you do. Just ask around.
  • What did I want to become as a child? What were the underlying trends?
  • What have I been doing the last 10 years? Competence comes from doing a certain thing for a long period of time.
  • What can I effortlessly talk about without losing drive? An interesting topic is most likely something you’re highly skilled at or highly interested in.
  • What are the things I effortlessly excel at? What activities come easy for you?
  • In what areas do I learn quickly? Some skills are perfectly suited to our temperament and therefore we’re able to pick these up much faster than others.
  • Who do I envy/admire? Jealousy is a nasty but beautiful emotion as it shows us what we truly want. The same goes for admiration.

2. Reading

Furthermore, a great book that will help you find more strengths is Managing Oneself by Peter F. Drucker

Read the summary and define for yourself:

  • Am I a reader or a listener?
  • How do I learn best?
  • Do I work well with others or do I perform better alone?
  • Do I produce results as decision maker or as an adviser?
  • Do I perform well under stress or do I need a structured environment?

Alright – what’s next?

3. Personality Tests

A great way to explore further is by doing some personality tests (although they are often too general – it’s quite likely that they’ll give you some more career-indicators)

Here are the ones I recommend:

  • MBTI-test
  • DISC-assessment
  • Enneagram

Learn more about each type by simply Googling the results you’ve gotten.

Put all of these answers in a separate word-sheet and try to determine for yourself the answer to this question;

How can I combine my skills (based on strength) and my interests to solve a need for other people?

Going Deeper

In our current information society it might be not enough to be simply highly skilled in only one particular field. The combination of different, highly valued skills is also often what elevates your value.

Here’s some other tips to prepare for the future:

Enjoy the power and beauty of your youth. Oh, never mind. You will not understand the power and beauty of your youth until they’ve faded. But trust me, in 20 years, you’ll look back at photos of yourself and recall in a way you can’t grasp now how much possibility lay before you and how fabulous you really looked.

Don’t worry about the future. Or worry, but know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum. The real troubles in your life are apt to be things that never crossed your worried mind, the kind that blindside you at 4 p.m. on some idle Tuesday.

Be Impeccable With Your Word. Speak with integrity. Say only what you mean. Avoid using the word to speak against yourself or to gossip about others. Use the power of your word in the direction of truth and love.

Don’t Take Anything Personally. Nothing others do is because of you. What others say and do is a projection of their own reality, their own dream. When you are immune to the opinions and actions of others, you won’t be the victim of needless suffering.

Don’t Make Assumptions. Find the courage to ask questions and to express what you really want. Communicate with others as clearly as you can to avoid misunderstandings, sadness and drama. With just this one agreement, you can completely transform your life.

Always Do Your Best. Your best is going to change from moment to moment; it will be different when you are healthy as opposed to sick. Under any circumstance, simply do your best, and you will avoid self-judgment, self-abuse and regret.

Keep track of global trends. Where is the world going and how can I prepare for this? Especially the technological boom is very prominent – stay ahead of the robots!

Work for yourself. Everyone will need to become an entrepreneur in the future

The world is your oyster …. Just because the past didn’t turn out like you wanted it to, doesn’t mean the future can’t be better than you ever imagined.

Essence

The world is an inherently competitive place. You’ll need an edge to become indispensable & the only way to become indispensable is to excel at things others cannot do.

Of course competence at a skill will lead to enjoying the activity more – enjoying it more means you’ll be doing it more which in turn makes you more competent.

It’s an endless loop.

Eventually you’ll start to LOVE it and it’ll become your “passion”. So don’t go searching for something until it “feels just right” but create it by building on strengths. Don’t waste time and energy on an endless passion-chase.

Note: Strengths are solely performance indicators (not unchangeable truths). So don’t obsess about them. You can still “be whoever you want to be”, but you won’t perform optimally if you build your life on weakness. It can be stretched – just not indefinitely.

So tell me; what are your strengths?

I hope this personal analysis is timely for you. There’s so much wasted time & energy (and frustration) in fields where we just don’t have a natural advantage in. And the world is simply too much of a competitive place not to use this.

Now that you know the basics, go for the kill and never look back.

The BEST revenge is “OBSCENE WEALTH”.

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