Why Tom Dyson Lives Like He’s Retired

BALTIMORE, MARYLAND – People often ask us how we afford to live like this, drifting from place to place… with no home or full-time jobs… and homeschooling our three kids on the road. 

To launch this traveling lifestyle, I had to give up my career. (I worked for a publishing company in Delray Beach, Florida.)

Now I get paid a little to write these Postcards, plus I write a special-opportunities advisory, Tom’s Portfolio.

But the main way I plan to support my family in the long run is through investing…

(More below.)

Connecting the Dots With Bill and Dan

Greetings from Baltimore, Maryland…

I left Kate and the kids in New York – where we’re “camping” at Grandpa’s apartment – and came to Baltimore by myself.

I’m here to meet with colleagues Dan Denning and Bill Bonner. It’s the first time Dan, Bill, and I have all been together since before the pandemic.

We’re talking about the markets, and trying to join some dots together so we can publish a big new report. Here we are…

The Fed Is Trapped

The message of the dots is pretty clear, in my opinion.

As regular readers know, we’re in the greatest credit and investment boom in all of human history… but this boom is unsustainable.

And now that inflation has arrived, the Federal Reserve is trapped.

It can’t raise interest rates, nor can it be seen to be “doing nothing.” (I know Fed Chairman Jerome Powell has said he’ll start a traditional rate hiking cycle next year, and nearly everyone believes him, but I don’t believe it.)

We’re already seeing signs of stress in the financial markets.

For example, in the summer of 2020, the bond market began what I think will one day be seen as an epic collapse. 

And, as I’ve explained many times in these Postcards, I think the dollar is where the bond market’s losses will show up next.

Which brings us back to how I plan to support my family financially in the years ahead…

How We’ll Protect and Grow Our Nest Egg

Kate and I have a nest egg which we’ve saved up over the last 20 years.

To protect ourselves, we withdrew our savings from the bank. And we bought gold, silver, and other cheap hard-currency proxies – like second-hand steel cargo ships and banged-up container boxes.

Effectively, our mindset is that of a retired couple. By investing in the financial markets, I’m going to use our nest egg to produce the income we need to live off for the rest of our lives.

I’ve “trained” for this “job” for nearly my whole life.

I bought my first stock at age 11. Since then, I’ve tested myself in almost every arena of speculative combat.

I’ve played high-stakes poker against professional poker players. I’ve bet on horses at the racetrack. I’ve bet on almost every sport it’s possible to bet on.

I’ve dabbled in cryptocurrency. I have even gambled on my health (I once lost $5,000 on a weight loss challenge).

I’ve managed money for friends and family. I’ve speculated in real estate. I’ve speculated on vintage guitars and rare stamps. I’ve traded internet domain names.

And obviously, I’ve seen a lot of combat in the stock market… both as an individual investor and investment strategist.

I’ve read hundreds of books and letters on the art of speculation and investing. And I’ve spent time with some very successful self-made investors. I’ve survived three major stock market crashes now. 

I figure I just need to make about 5% a year after inflation with our nest egg, then Kate and I will never have to worry about money again.

It sounds easy… and in the past, it would have been. But now? I’ll need to draw on every ounce of my experience, intuition, and knowledge to protect and grow our nest egg.

I consider myself very lucky to be facing this challenge. And most of all, I love sharing the journey with you.

– Tom Dyson

P.S. Colleague Dan Denning gave us a new cheap hard-currency proxy idea in The Bonner-Denning Letter last week… 9mm ammunition.

Rounds cost about 50 cents each… about half what they cost a year ago. I think I’ll buy 20,000 rounds, put them in storage, and hope I can sell them for a profit in a few years.

(Paid-up Bonner-Denning Letter subscribers can catch up on Dan’s update here. If you’re not paid-up yet, learn more about a subscription right here.)

P.P.S. In other news, I’m starting a file on the “weird things that happen when you don’t carry a smartphone.” (I’ve been a chronic smartphone addict for years. But two months ago, I got rid of my smartphone.)

Yesterday, I was trying to get to New Rochelle train station to catch my Amtrak train to Baltimore. I walked up the wrong street and came to a dead end abutting the train station.

To avoid having to go all the way back around and possibly missing the train, I had to fight my way through some weeds and bushes, climb over an eight-foot chain link fence at the top of a steep railway cutting above the Metro North tracks, and jump down into a disused parking lot on the other side.

I could easily have rolled my ankle or ripped a hole in the seat of my Hugo Boss trousers, but I made it.

I imagine I’ll be adding plenty more entries into this file… (If you have any weird stories about life without a smartphone, share them with us at [email protected].)

Like what you’re reading? Send your thoughts to [email protected].

More praise for Tom’s son, Dusty, and his young perspectives on life after he penned his first Postcard…

Reader comment: Dusty, since you shared your age, I am a lad 52 years older than you. This is just to put me in context. I was born in England, though left at six months, so sound American. I have nieces in Britain, who speak with a strong British accent, but also speak Hungarian. I am glad you are encountering kind people. It is good to appreciate people for who they are.

Your father wrote a very nice report about his longtime interest in gold. I am very glad to have read his perspectives, because I thought some of the same things, but instinctively, and not so formally. It was good to hear from a true and learned believer in gold, to help me better appreciate that I am one as well. As we go through life, we can find new interests and learn new things, even at my age. If I could not do this, this would be disappointing. So nowadays, I study the internet for information about gold and silver mines. I like them more than baseball now.

Meanwhile, a reader has a “worldschool” suggestion for the Dysons…

Reader comment: You should read about William Stanley, the Sixth Earl of Derby. He is the author of all those things attributed to William Shakespeare. Shakespeare could barely sign his own name, had no contacts with aristocracy other than being an actor in William Stanley’s acting troupe, he had no education, and no contacts.

I’ll leave it up to you to do your own research and the research is easy since it’s all on the Internet. It’s quite fascinating. I hope you read about this and you will see that it was quite impossible for William Shakespeare to write anything. I think your children will be enthralled with this information.

And finally, others thank Tom for sharing his investment advice, as well as his family travels…

Reader comment: Thank you for sending the Postcards! It’s great to hear about your travels! You and your family stay safe and God bless you for all the advice you give!

Reader comment: Truly enjoy your Postcards. Stay well and don’t change.

Tom’s note: Thanks for writing in! As always, please keep your questions and comments coming at [email protected]. I’ll answer as many as I can in a future Friday mailbag edition.