Obelisk

Review: Blink by Malcolm Gladwell

2012-02-01T17:00:00.000-05:00

Blink by Malcolm Gladwell
My rating: 3 of 5 stars

Gladwell shares intriguing examples of the role of the unconscious in making decisions. He tells of the surprising accuracy of snap judgments, and how people’s experiences greatly influence their decisions, despite their unawareness. Many of his stories are fascinating, but his slow, winding way of telling them is frustrating. I wanted to shout, “I get the point! Move on!” I didn’t like this book as much as Outliers (read my review), but I wasn’t as interested in this topic as the subject of Outliers (achieving success).

I really liked the investigation into how ignorant people are of the factors that affect their decisions. One of my favorite sections was about how people perceive food to taste better or worse based on the food’s branding and packaging. Gladwell also shows that, counter-intuitively, too much information or too many choices inhibit judgements, because they become distracting. This idea is also explored in Nudge (read my review), which I highly recommend.

I had heard of this book before, but finally decided to read it after Brendon Sinclair recommended it in the The Web Design Business Kit 2.0 from SitePoint. In the kit, Brendon explains that web designers need to design websites that make great first impressions and are simple enough to facilitate quick, unconscious decisions. I’ll try to keep these lessons in mind for my web design company, OptimWise.

Gladwell shows that snap judgments can be quite accurate because of thin slicing; the brain is able to get a “read” on a person or object based on a very short exposure to them. Of first impressions, he says that “sometimes we can know more about someone or something in the blink of an eye than after months of study.”

We make judgments based on our experiences and situations, so prejudice and stereotypes can lead us astray. To minimize their effects, Gladwell suggests that we change our experiences. For example, by spending more time with the people against whom we’re prejudiced, we can retrain our brains to overcome the prejudice.

View all my reviews

Review: Fahrenheit 451 by Ray Bradbury

2012-01-25T17:00:00.000-05:00

Fahrenheit 451 by Ray Bradbury
My rating: 4 of 5 stars

This story is a powerful warning about the dangers of both intellectual lethargy and censorship. In a dystopian future that’s eerily familiar, Americans have replaced philosophical and critical thought with mindless entertainment, and the government burns books to keep the populace peacefully unenlightened. The novel made me more appreciative of books, and more disgusted with the current culture that’s obsessed with worthless, “fun” entertainment.

As the plot unfolds, we learn that Americans have stopped reading, turning to radio and TV for entertainment. In the past, minorities of every race, religion, and political party began ripping offending pages out of books. To restore order, the government began burning books and suppressing the intellectuals and philosophers whose ideas were disturbing the peace.

One of the characters, Faber, explains that their oppressed, bookless culture lacks 3 things: quality of information, leisure to digest it, and the right to act on it. He regrets not speaking up when the book burnings begin. One of his major points, however, is that the books themselves aren’t magical; it’s the ideas they contain, any medium could carry the ideas.

I’ve known about this book for years, but finally decided to read it after seeing it on NPR’s Top 100 Science-Fiction, Fantasy Books (book #7).

View all my reviews

Review: Great by Choice by Jim Collins

2012-01-16T17:00:00.000-05:00

Great by Choice: Uncertainty, Chaos, and Luck--Why Some Thrive Despite Them All by Jim Collins
My rating: 4 of 5 stars

This book is an engaging exploration of why some companies become great while others don't, despite experiencing similar uncertainty, chaos, and “luck”. It shows that greatness depends on action and discipline, not circumstance or luck. Essentially, success depends more on what we do than what the world does to us. This finding is encouraging and empowering, since we often feel that we’re at the mercy of forces outside our control.

I liked the point that one of the most important forms of luck is people luck, or "Who Luck"; having the right mentor, partner, friend, etc. Because the right people can be key to success, I've been trying to expand my network and maintain strong relationships.

I read this for the Holland Chamber of Commerce Business Book Group. Jim Collins is known for his thorough research, and this is no exception. I liked this book more than Good to Great (see my review) because it’s more about individuals than companies, so I found it easier to apply the lessons to myself and my web design business, OptimWise.

Core behaviors of 10Xers
Fanatic discipline: they have relentless focus, independence of mind, and extreme consistency.
Empirical creativity: they base decisions on empirical evidence, not conventional wisdom or authority figures.
Productive paranoia: they’re hyper-vigilant of changes in their environment, and respond with preparation and productive action.
Level 5 ambition: they balance personal humility and professional will. They’re ambitious for a cause greater than themselves.

20 mile march
Hit specified performance markers consistently over the long term. This requires high performance in hard times, and holding back in good times.

Fire bullets, then cannonballs
Once you’ve met your industry’s innovation threshold, being innovative doesn’t matter much.
Bullets are low-risk, low-cost tests to see what will work. Based on the resulting empirical evidence, concentrate your resources and fire a cannonball (a higher-risk, higher-cost action). Be creative, but validate your ideas. Then, keep 20 Mile Marching to make the most of the big success.

Leading above the Death Line
Prepare for bad events by building cash reserves and taking other precautions.
Pay attention to risk and respond to changes.
The sign of mediocrity isn’t unwillingness to change, but chronic inconsistency (always changing with every new trend; being controlled rather than taking control).
“Not all time in life is equal. Life serves up some moments that count much more than other moments. We will all face moments when the quality of our performance matters much more than other moments.”

SMaC
Create a SMaC recipe: a Specific, Methodical, and Consistent success formula, and amend it only rarely. Think of the US Constitution and its amendments.

Return on luck
The authors define luck as a significant, unpredictable event.
10Xers didn’t have more good or bad luck, but they had a better return on luck (ROL).
The question isn’t whether you’ll have luck (good or bad), but what you’ll do with it. The problem isn’t a lack of good luck; it’s failing to execute on it.

View all my reviews

Review: 50 Self-Help Classics: 50 Inspirational Books to Transform Your Life, From Timeless Sages to Contemporary Gurus

2012-01-11T17:00:00.000-05:00

50 Self-Help Classics: 50 Inspirational Books to Transform Your Life, From Timeless Sages to Contemporary Gurus by Tom Butler-Bowdon
My rating: 3 of 5 stars

This book is a decent introduction to some of the most popular self-help books. It does a good job summarizing the main points of each book, explaining each book’s influence or claim to fame, and giving some biographical information about each book’s author. Since it’s really a reference book, I felt like I was being dipped into and out of the ideas, rather than immersed in them. For that, there’s no substitute for the books themselves.

The author uses a looser definition of self-help than I had anticipated. I expected modern self-help books like How to Win Friends and Influence People and The 7 Habits of Highly Effective People. In addition to these, the list also includes books like Rand’s Atlas Shrugged and Thoreau’s Walden. There are also several ancient philosophical and religious works such as The Bhagavad-Gita and The Bible.

I didn’t like the list's inclusion of New Age, paranormal “spiritual” works, advocating pseudo-scientific nonsense about using your mind to influence the physical world, bring good luck, and heal yourself and others.

Only a few of the books from my self-help shelf appear on this list. The list of all 50 books is available on Butler-Bowden’s site.

Common themes in self-help books
• Take control of your life, and take action! Don’t just float through life.
• Set high goals.
• Success depends on hard work, not luck.
• Be optimistic; think positively.
• Maintain a mindset of abundance, not poverty.
• Achieve “flow”, the mental state in which work comes naturally and brings joy and fulfillment.

Additional notes
• Effectiveness is more important than efficiency. (The 7 Habits of Highly Effective People)
• Be prosperity-conscious, not poverty-conscious. Appreciate the abundance of what you have, rather than focusing on what you lack. (Real Magic)
• Benjamin Franklin embodied the essence of self-evaluation and self-improvement. The Autobiography of Benjamin Franklin is an excellent guide to self-improvement.

View all my reviews

Review: The Five Love Languages by Gary Chapman

2012-01-04T17:00:00.000-05:00

The Five Love Languages: How to Express Heartfelt Commitment to Your Mate by Gary Chapman
My rating: 4 of 5 stars

This book is unsurprisingly “touchy-feely”, but it contains insightful and practical lessons about love in marriage. Chapman says that people express love in five broad ways, or “love languages”, and he shows how to determine and speak your spouse’s love language. Chapman stresses the importance of communication and expectations in marriage. The book is mostly about love between spouses, but there’s a chapter near the end applying the lessons to parent-child relationships.

It sounds cheesy, but the main concept is that each person has a “love tank” that must be filled for a person to feel loved. Your goal in marriage is to keep your spouse’s love tank full by speaking their love language. I liked Chapman’s idea of a Love Tank Game in which spouses ask each other each evening after work, “On a scale of 0 to 10, how full is your love tank? What can I do to fill it?”

My pastor recommended this book during premarital counseling. My wife had already read it, and recommended it as well. Chapman is a Christian and he references the Bible throughout the book, but the lessons apply to anyone regardless of religion.

The 5 Love Languages
Words of Affirmation: praising & complimenting
Quality Time: undivided attention
Receiving Gifts: spontaneous gifts
Acts of Service: chores and errands
Physical Touch: hugging, kissing, sex

Clues to determine your love language
What you ask your spouse for
How you express love to your spouse
What you love or hate about your spouse
Take the quiz at http://www.5lovelanguages.com/assessment...

While reading the book, I guessed that my primary love language is Words of Affirmation or Quality Time. According to the quiz, my languages rank as Quality Time, followed closely by Words of Affirmation, then Acts of Service, Physical Touch, and Receiving Gifts. I’m a minimalist, so gifts aren’t very important to me. A good point for me to hear was that even if you’re frugal and rarely buy yourself gifts, you’d do well to buy gifts for your spouse, if gifts are her love language. It’s not about you, it’s about your spouse.

Additional notes
Request, don’t demand that your spouse perform acts of service.
Don't give advice unless you’re asked for it; just listen and sympathize.

View all my reviews

Review: Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard H. Thaler

2011-12-28T17:00:00.000-05:00

Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard H. Thaler
My rating: 5 of 5 stars

This book opened my eyes to how humans make decisions, and how easily they can be influenced by their peers and by the way choices are presented to them. Through engaging research and entertaining anecdotes, it shows how to “architect” choices to nudge people towards certain decisions. The authors call this “libertarian paternalism”, because it uses incentives to motivate desired behavior rather than using command and control measures like laws and bans. I highly recommend this book for its practical insight into behavioral psychology and behavioral economics.

In an ideal world, people would have the time, knowledge, and motivation to make the perfect choices. In reality, humans are irrational, emotional, ignorant, apathetic, or downright lazy, so simply providing as many choices as possible rarely works. Libertarian paternalism strikes a balance between freedom of choice and incentivizing behavior.

I read this book because it was listed in .net Magazine’s The top 25 books for web designers and developers. I picked up a few ideas to use when creating websites for my web design business, OptimWise: use incentives to nudge users in certain directions, provide good default options, and gracefully handle user errors.

The authors explain that humans have “automatic” and “reactive” systems; the automatic system is the subconscious, emotional “gut instinct”, while the reactive system is the intellectual conscious. Nudges help the reactive system overpower the automatic system.

The authors use liberal paternalism to advocate specific policies for public and private institutions, dealing with topics in personal finance (saving, retirement, debt, mortgages), health care, education, and politics. They also address the ethical issues of choice architecture.

I love personal finance, so I especially liked seeing how nudges can lead to better retirement saving and investing. The authors show how something as simple as automatic enrollment in retirement plans results in a significant increase in participation.

I liked the RECAP (Record, Evaluate, and Compare Alternative Prices) concept, which says vendors and service providers should give consumers a statement of the costs associated with different hypothetical patterns of service usage to help them make informed choices about things like electricity and gas consumption.

I liked the authors’ idea that people should be able to waive the right to sue for medical malpractice, in exchange for lower medical costs. I’m not sure how I feel about their proposal to privatize marriage; they say this would give religious organizations the freedom to set rules about homosexuality, divorce, etc., while allowing the government to honor civil unions with benefits.

6 principles of good choice architecture
• iNcentives: motivate behavior with incentives
• Understand mappings: show the outcomes that will result from the choices
• Defaults: provide default options
• Give feedback: show people the effect their choices are having
• Expect error: make choices foolproof
• Structure complex choices: present complex choices in easily understood ways

Miscellaneous notes
• The more you ask for, the more you get.
• People hate losses twice as much as they like gains.
• People like to do what they believe most people think is right. They also like to do what most people actually do.

View all my reviews

Review: A Feast for Crows (A Song of Ice and Fire, #4) by George R.R. Martin

2011-12-21T17:00:00.000-05:00

A Feast for Crows by George R.R. Martin
My rating: 2 of 5 stars

This is my least favorite of the Song of Ice and Fire books so far. Why? This book follows only half of the series' characters, and I don't like most of them, especially Tommen, Cersei, Robert Arryn, and Jaime. I didn't mind the stories of Brienne and Samwell as much, but I much prefer to read about Tyrion, John Snow, and even Daenerys.

As its title indicates, the book contains several violent fights, so readers with bloodlust won't be disappointed. It's also full of the series' usual richly detailed descriptions of people, towns, traditions, religions, and foods, bringing the stories to life.

I didn't enjoy it, but I'm considering this book a necessary bridge to A Dance with Dragons and the rest of the series.

View all my reviews

Review: The Thank You Economy by Gary Vaynerchuk

2011-12-07T17:00:00.000-05:00

The Thank You Economy by Gary Vaynerchuk
My rating: 4 of 5 stars

I really liked this thought-provoking and relevant look at how social media is bringing small-town shop values back into business. Vaynerchuck shows that businesses need to build long-term, personal relationships with their customers by caring about them. Social media, because it magnifies word of mouth, is more effective at making emotional connections than broadcast marketing.

Vaynerchuck uses stats, case studies, and firsthand experience to make his points and recommend actions. Although he mentions several specific platforms, the ideas transcend the tools. I was inspired by Vaynerchuck’s Crush It : Why Now Is the Time to Cash In on Your Passion and I plan to use the concepts in this book to make OptimWise succeed in the Thank You Economy.

How all businesses should use social media
• Care. Respond to comments and invite people to share their thoughts. Outcare competitors that are bigger, cheaper, or more popular.
• Show up first to connect with early adopters (first-mover advantage).
• Be authentic. Be yourself and speak from the heart.
• Connect with the individual, not the business. Behind every B2B is a C.
• Build a community to turn buyers in to advocates. Join or create conversations around topics related to your product or service. Thank people when they provide feedback, positive or negative.
• Focus on quality, not quantity of fans/followers.

Consumers in the Thank You Economy
• People do business with people they like.
• 70% of people turn to family and friends for purchasing advice.
• Make every customer feel special.
• Dissatisfied customers are opportunities to fix problems and build relationships.

Social Media in the Thank You Economy
• Social media takes time; it’s a marathon.
• Provide quality content followed by quality engagement.
• Evoke emotion (positive or negative) so people are compelled to share.
• Let consumers decide that they want to know you; don’t try to persuade them.
• Pull people in; don’t push your message out.
• Start and join conversations about your general interests first to build relationships. Later, talk specifically about your business.

View all my reviews

Review: All About Asset Allocation by Richard Ferri

2011-11-30T17:00:00.000-05:00

All About Asset Allocation, Second Edition by Richard Ferri
My rating: 5 of 5 stars

The best book I’ve read on asset allocation. It’s a practical guide to constructing a portfolio based on modern portfolio theory (MPT). Full of recent data (2010), studies, charts and graphs, it’s relatively easy to read, but better for intermediate investors, not beginners.

Research shows that about 90% of portfolio performance depends on asset allocation. I liked the point that the goal of investing isn't to get rich; it's to not get poor. Ferri’s advice: don’t try to outguess the markets, but control what you can: costs, taxes, and risk. Buy, hold, and rebalance using low-cost mutual funds and ETFs. I’m a fan of Vanguard founder John Bogle and passive investing, so I agreed with most of this book, although I invest more aggressively than Ferri recommends.

I picked up this book after hearing Richard Ferri interviewed on The Index Investing Show.

Lessons
Allocate across multiple asset classes to reduce risk.
Invest broadly within each class to eliminate the specific risk of any single security.
Keep costs as low as feasible, including taxes.
Rebalance periodically (annually).

Early savers (20s and 30s)
6 months living expenses in checking or money market
Short-term bond or CD for large purchases such as home
60-80% stocks and REITs
20-40% bonds

Why not to have 100% in stocks
Most people can’t stomach the volatility.
You need money to move into stocks in down markets.

Early Savers Moderate Basic Portfolio
40% US stocks (total US stock market index fund/ETF)
20% international stocks (total international index fund/ETF)
10% real estate (REIT index fund/ETF)
30% bonds (total bond market index fund/ETF)

Early Savers Moderate Multi-Class Portfolio
US stocks
25% core (total US stock market index fund/ETF)
10% small value
5% microcap
10% real estate

International stocks
5% Pacific
5% Europe - large
5% international small cap
5% emerging markets

Bonds
20% investment grade bonds (total bond market index fund/ETF)
5% high-yield bonds
5% inflation-protected bonds/TIPS

Asset location and taxes
Tax-deferred or tax-free accounts
corporate bonds and bond funds
CDs, agency bonds, mortgages
high-turnover mutual funds
REITs
commodities

Taxable accounts
low-turnover mutual funds, index funds
broad market ETFs
muni bonds

Real estate
A well-diversified portfolio with real estate alongside stocks and bonds has higher returns.
The long-term risk and return on US real estate has been on par with US stocks since 1930.
Use home ownership and commercial real estate investments as long-term investments.
Hold a max of 10% in REITs.

Miscellaneous asset allocation notes
The more asset classes the better, up to about 12. This reduces risk and increases returns.
Include assets with no or low correlation.
Globally, small and value stocks have higher returns due to higher risk. Add a small cap value fund to a total US market fund.
Foreign bonds aren’t worth owning due to high fees.

Skip commodities. They have no real returns; they don’t earn more than inflation in the long term.
Skip hedge funds. They have high costs, lack of diversification, and poor performance consistency.
Investing in collectibles can be worthwhile if done right.
The real after-tax, after inflation return on T-bills is 0.
Use “your age in bonds” as a guideline for the percentage of bonds to hold. Adjust according to circumstances.

View all my reviews

Review: The Time Machine by H.G. Wells

2011-11-28T17:00:00.000-05:00

The Time Machine by H.G. Wells
My rating: 4 of 5 stars

Another imaginative sci-fi classic from H.G. Wells. A time traveler visits the year 802,701 AD to discover that humanity has conquered nature and achieved social and economic perfection. Pests and disease have been eradicated, and the planet is a peaceful garden. However, all is not well for humanity.

The human race has split into the capitalist haves (Eloi) and the laboring have nots (Morlocks). The Eloi are descendants of humans that have atrophied due to their lack of physical work. These surface dwellers only play, swim, and eat fruit; they don’t produce or trade goods. Their utter ignorance and laziness irritates me.

The time traveler’s journey teaches him that hardship and freedom are the driving forces behind humanity’s intelligence and ingenuity. He concludes that “we are kept keen on the grindstone of pain and necessity.”

I liked Wells’ description of how the trees, buildings, and Earth’s changing surface looked to the time traveler as time passed rapidly. I also liked the ancient museum showcasing humanity’s discoveries and inventions. Before returning home, the time traveler witnesses the cold desolation of Earth at its end in 30 million AD.

I enjoyed H.G. Wells’ The War of the Worlds, so I wasn’t surprised that I liked this one. I listened to the free Librivox audiobook.

View all my reviews

Review: The New Abs Diet by David Zinczenko

2011-11-26T09:00:00.000-05:00

The New Abs Diet: The 6-Week Plan to Flatten Your Belly and Firm Up Your Body for Life by David Zinczenko
My rating: 4 of 5 stars

I really liked the nutritional info in this practical guide for busy people. Despite the title, it’s not just about superficial six pack abs; it’s a holistic approach to diet and exercise. The author, editor-in-chief of Men’s Health, provides nutritional research and studies, recipes, a meal plan, and an exercise regimen. The book’s basic equation: more food + more muscle = less flab.

I read this for its nutrition guidelines, not its exercise advice, but I picked up a few tips in the exercise chapters. The diet is practical and realistic; it explains the role of the right fats and carbs in a healthy diet. The Abs Diet is structured around 12 power foods (and close substitutes) represented by the acronym ABS DIET POWER. My diet already includes most of these foods, excluding protein powder; I'm not trying to increase muscle mass or lose fat. Below is a cheat sheet including these foods and other tips from the diet. I agreed with most of the book's nutritional guidelines, but I’m sticking to my 3 meals a day and no snacking, not adopting the book's 6 meals/snacks a day.

Why focus on the abs? As Zinczenko says, a flat stomach is the hallmark of people in control of their bodies and health. The benefits of a flat belly: reduced risk of life-threatening disease, better sexual performance, protection from injury, a stronger back, reduced joint pain, and better sleeping.

I’m a fan of Zinczenko's work in Men’s Health and the Eat This, Not That! books, so I wasn’t surprised that I liked this one too.

The New Abs Diet Cheat Sheet
Eat six meals (including snacks) spaced evenly throughout the day.
Plan most meals around the ABS DIET POWER 12 food groups. Each meal should contain at least two of the following:
• Almonds and other nuts
• Beans and legumes
• Spinach and other green vegetables
• Dairy (fat-free or low-fat milk, yogurt, cheese)
• Instant oatmeal (unsweetened, unflavored)
• Eggs
• Turkey and other lean meats (lean steak, chicken, fish)
• Peanut butter (all-natural, sugar-free)
• Olive oil [or canola, peanut, sesame; not vegetable oil or margarine]
• Whole-grain breads and cereals
• Extra-protein (whey) powder [or ricotta cheese]
• Raspberries and other berries

Emphasize protein, fiber, calcium, and healthy fats (mono- and polyunsaturated).
Limit refined carbohydrates like baked goods, sugar, white bread, rice and pasta, saturated fats, trans fats, and high-fructose corn syrup.
Drink mostly water. Limit yourself to two or three alcoholic beverages per week..
Cheat once a week by eating anything.
Exercise for 20 minutes 3 days a week. Total-body strength workouts can be done at the gym or home. Add interval training programs. Two of the strength-training workouts should contain abs exercises.

Nutrition
Restricting carbs forces the body to burn fat, not sugar.
High carb foods that flood the body with sugar calories, not just sugary foods, lead to diabetes.
Don’t eliminate carbs, just aim for low- to moderate glycemic load. Choose foods with high fiber, especially whole grains.
The body needs carbs and fats; low carb and low-fat diets aren’t healthy, and don’t work long-term.
Fats are filling and add flavor. Shoot for 0.5 g of fat per pound of desired body weight.

Protein fills you up, digests more slowly than carbs, spurs lean muscle growth, and elevates fat burn.
Refried beans are often high in saturated fat. Look for fat-free versions.
Broccoli florets have 3 times more beta-carotene than the stems.
Take an Omega 3 supplement even if you eat fish.
HFCS (high fructose corn syrup) is dangerous because it shuts off natural appetite control, and it’s in so many foods.

Exercise
Exercise to alter your basal metabolism. The calories burned during exercise aren’t important.
Strength training is better than aerobics for long-term weight management. Aerobic exercise only burns calories during the workout; strength training causes the body to burn long after.
Aerobic exercise burns calories, controls stress, improves cardiovascular fitness, lowers blood pressure, and improves cholesterol profile.
Keep abs firm throughout the day to develop muscle memory. Flex your abs for 1 minute per hour when sitting. Walk tall.
A short, fast, high-intensity workout is better than a longer, steady workout for weight loss.

The New Abs Diet Workout
Strength training: 3 times a week. Total-body workouts with 1 workout emphasizing legs.
Additional cardio: optional, on non-strength training days. Do an interval workout 1 day a week and light cardio like walking on 2 of the 3 off days.
Abs exercises: twice a week, before strength training or interval workouts.

View all my reviews

Review: Money Girl's Smart Moves to Grow Rich by Laura D. Adams

2011-11-23T17:00:00.000-05:00

Money Girl's Smart Moves to Grow Rich by Laura D. Adams
My rating: 4 of 5 stars

This straightforward guide to basic personal finance covers money management, debt, investing, retirement, real estate, paying for education, and taxes. Each topic includes an explanation of key concepts and practical advice. I liked Adams’ emphasis on automating as much as possible for efficiency and avoiding emotional influence. I read this book because I’ve been a longtime fan of Adams’ Money Girl podcast.

I wish there was more advice on asset allocation and building a portfolio. Adams simply recommends using target date funds, and gives a few general tips such as setting your stock allocation to 100 minus your age.

Insurance
Consider using an HDHP and HSA for health insurance.
Get a term life insurance policy worth 10 times your income.

Debt
Make loan payments biweekly instead of monthly to accelerate repayment.
Investing vs. paying off debt: invest when after-tax investing returns are higher than after-tax interest rate on debt.

Investing
Use target date funds, or model your portfolio after them.
Percentage of stock in portfolio: roughly 100 minus your age.

Time horizons
1 year: cash (savings, money market, checking)
2-10 years: cash, bonds, stocks (CDs, 529s, Coverdells, brokerage accounts)
10+ years: bonds, stocks, real estate, commodities (retirement accounts, 529s, Coverdells, brokerage accounts)

Self-employed retirement plans
• Keogh: complicated but flexible. High contribution limits.
• SIMPLE IRA or 401(k): simple, low cost. Must have earned $5000 minimum in prior year. Low contribution limits.
• SEP: simple, low cost. High contribution limits. No Roth option.
• Individual, Solo, or Self-Employed 401(k): more complex and costly. High contribution limits. Traditional or Roth 401(k) options.

Real estate & mortgages
Don’t buy a house unless you can keep it for at least 5 years.
Benefits of renting over buying: avoid property maintenance, repairs, insurance, property taxes.
Benefits of buying over renting: lower long-term cost of ownership, appreciation, tax deductions.
To know if you should pay points on a mortgage, take the difference between the monthly payments with and without points, and divide it into the points charged. That gives the break-even point in months.

Paying for education
Coverdells can be used for kindergarten through graduate school.
529s are better for college; no contribution limit, more flexible.

Miscellaneous personal finance tips
Microwaves use 30% less energy than ovens.
Keep vehicles as long as possible.
If married, filing jointly usually results in lower taxes than filing separately.

View all my reviews

Review: The Trimmed Lamp by O. Henry

2011-11-21T17:00:00.000-05:00

The Trimmed Lamp by O. Henry
My rating: 2 of 5 stars

I didn't like these stories nearly as much as the ones in O. Henry's The Four Million. In O. Henry's style they have romance, twist endings, and humorous observations about human nature, but something made them less interesting than those in the other book. However, I liked a few stories: The Pendulum, A Harlem Tragedy, The Last Leaf, and The Tale of a Tainted Tenner.

I listened to the free Librivox audiobook.

View all my reviews

Review: Sir Gawain and the Green Knight

2011-11-19T09:00:00.000-05:00

Sir Gawain and the Green Knight by Unknown
My rating: 2 of 5 stars

The legendary quest of Sir Gawain, one of the knights of King Arthur’s Round Table. I wasn’t impressed by the story, especially since this is one of the most popular Arthurian tales. I felt it lacked character and plot development, but that may simply be due to its aged style. You get a sampling of medieval life, from feasts to hunting parties to single combat. There’s a lot of symbolism, and several themes such as temptation, chivalry, and honor.

I listened to the free Librivox audiobook of the translation by W.A. Neilson.

View all my reviews

Review: The Four Million by O. Henry

2011-11-16T17:00:00.000-05:00

The Four Million by O. Henry
My rating: 3 of 5 stars

A collection of O. Henry’s short stories bearing his trademark irony, comic misunderstandings, and surprise endings. I liked the memorable characters, the humorous slang, and O. Henry’s use of obscure vocabulary and analogies.

Besides the popular The Gift of the Magi, I also liked the stories Between Rounds, The Cop and the Anthem, Lost on Dress Parade, Memoirs of a Yellow Dog, and A Service of Love.

I listened to the free Librivox audiobook of The Four Million.

View all my reviews

Review: Enchantment: The Art of Changing Hearts, Minds, and Actions by Guy Kawasaki

2011-11-14T17:00:00.000-05:00

Enchantment: The Art of Changing Hearts, Minds, and Actions by Guy Kawasaki
My rating: 4 of 5 stars

Kawasaki shows how to apply the psychology of persuasion, influence, and marketing to business. In addition to his own experience and anecdotes, he borrows heavily from books, studies, and experts. I liked his guidelines for becoming more likable and trustworthy, which are invaluable in both personal and business life.

According to Kawasaki, enchantment is the process of delighting people with a product, service, organization, or idea to achieve voluntary and long-lasting support that’s mutually beneficial. This requires changing people’s hearts, minds, and actions by getting them to internalize your values. When you enchant people, your goal is not to make money from them or get them to do what you want, but to fill them with great delight. You’re going for long-lasting change, not a onetime sale or transaction.

Never one to provide theory without application, Kawasaki gives specific tips for effectively using presentations, email, blogs, and social media to enchant. I noted several points that I’ll use to make OptimWise, my web design business, more enchanting.

I agreed with Kawasaki for most of the book, but disagreed about part of the chapter “How to Enchant Your Boss.” In it, Kawasaki says, “drop everything and do what your boss asks.” I found this advice odd, because he usually advocates being authentic, genuine, and true to yourself, not sinking to political maneuvering.

Forms of reciprocity
Do something with the explicit expectation of receiving something in return. Not enchanting.
Do something as an investment in the future; “paying it forward”. May be enchanting.
Do something for intrinsic reasons. Most likely to be enchanting.

When someone thanks you, don’t say "you’re welcome”, but “I know you’d do the same for me". By this you're telling them that you think they're classy, and that they owe you a favor.

How to write a positioning statement
Short. 10 words max.
Clear. Answer the question, “What do you do?” Focus on your function, not your title.
Different. Use words most people don’t use. Use verbs to explain what you do, not adjectives.
Humble.

Illustrate the salient point
Take facts and use them to communicate the effect of a decision. Don’t give data, give information to help people make good, fast decisions. For example, miles per gallon versus cost of fuel per year, or gigabytes of storage versus number of songs a device holds.

How to overcome resistance
Provide social proof. Show people that others are embracing your cause.
Create the perception of ubiquity. Make people think everyone is using your product or service.
Create the perception of scarcity (if social proof and ubiquity aren’t feasible). Make people think your product or service is scarce so they think it’s more valuable.

Principles of push technology (presentations, email, Twitter, etc.)
Respond quickly, within 24 hours whenever possible.
Treat everyone equally; don’t focus only on important people.
Provide value.
Give credit.
Limit self-promotion.

View all my reviews

Review: The Consolation of Philosophy by Anicius Manlius Severinus Boethius

2011-11-09T17:00:00.000-05:00

The Consolation of Philosophy: Revised Edition by Anicius Manlius Severinus Boethius
My rating: 3 of 5 stars

In this work from 524 AD, Lady Philosophy (philosophy personified) leads the imprisoned author, Boethius, through discussions about fortune, happiness, justice, predestination, and free will. Through logical reasoning, they make deductions that build throughout their conversation. They often refer to the philosophies of Socrates, Plato, and Aristotle. Lady Philosophy and Boethius believe in a monotheistic God similar to that of Christianity, although there’s no explicit mention of Christianity.

There are a few main themes. One is that happiness doesn’t come from wealth, power, dignity, fame, or material pleasures; in fact, it comes from independence from material things, but ultimately from God, its true source. Another theme is that God knows and controls everything, but that this doesn’t impinge on man’s free will.

I read this because The Tolkien Professor podcast recommended it for its treatment of the doctrine of predestination and free will, which I’ve never felt I’ve quite understood. This book made things a little clearer, but it remains a nebulous concept.

I listened to the free LibriVox audibook based on the translation by H.R. James.

God’s nature
The world isn’t governed by random hazard, but God the creator rationally governs his work.
All things proceed from God.

Human nature
Humans have a spark of true knowledge from God, but they can forget it.
Humans are insatiably covetous.
People are naturally good. Those who are too weak to be good are evil. All men seek good, but some fail to achieve it because of their perversion.

Fortune and material possessions
Humans are never content; they always have something they’re discontented about. The better a man’s fortune, the more sensitive he is to misfortune.
All passes; neither good fortune nor material things last.
The more possessions a man has, the more care they require; they end up owning him. A man with fewer possessions is free of the worry they involve.
There’s no such thing as misfortune. All fortunes are either just (such as punishment for evil) or useful (such as the correction of bad behavior).

Happiness
Happiness doesn’t come from wealth, power, dignity, fame, or pleasures. It comes from independence, especially from material things.
All men are pursuing happiness.
Happiness doesn’t depend on fortune or material possessions.
God is the source of highest good and happiness.

Justice
We misinterpret the good as suffering and the evil as being rewarded, but the good are always favored and evil always punished.

Predestination and free will
God guides all events in his providence. Humans can’t fully understand His plans.
Free will exists despite God’s foreknowledge and providence, even though humans can’t understand the apparent paradox.
God is eternal, and lives in an eternal present; there’s no past or future. Because He’s outside of time, the time-dependent concept of foreknowledge doesn’t actually make sense.

A paraphrase of the discussion of free will from Book 5, Song 5:
Compare two events: the sun rising, and a man walking. At the moment of their occurrence, they must be taking place; yet the sun’s rising, before it took place, was necessarily obliged to be, while the man’s walking wasn’t. The things which to God are present exist without doubt. But some come from the necessity of things, and others from the power of the agent. From the standpoint of the divine knowledge, all things take place of necessity; but considered of themselves, from a human standpoint, they’re free of necessity.

So, if it’s in a man’s power to change his purpose, does that make providence void, since you could change something God foreknows? You can change your purpose, but providence is inescapable, just as it’s impossible to escape a present spectator. God’s ever-present comprehension and survey of all things comes not from his seeing future events, but from his very nature. So man’s will exists despite providence and foreknowledge, and humans are still responsible for their own actions.

View all my reviews

Review: The Aeneid by Virgil

2011-11-02T17:00:00.000-04:00

The Aeneid translated by John Dryden by Virgil
My rating: 2 of 5 stars

As a fan of Greco-Roman mythology, I thought I’d like this story. Maybe it was just the particular translation, but I didn’t enjoy it nearly as much as The Iliad and The Odyssey. It takes place after the Trojan War, recounting the story of Aeneas, a Trojan who travels to Italy and becomes the ancestor of the Romans. Later, he leads the Trojans against the Latins. The story is full of violent, bloody fights, and you get a real sense of the chaos of ancient battles.

It includes many themes common to Greco-Roman stories, including honor, heroism, and fate. The gods play major roles in the story, interfering in each others’ plans and in human affairs. The humans frequently appeal to their patron gods. During a single combat scene, Jove/Zeus hangs life and death in a scale to determine the fate of one of the combatants.

I liked Aeneas’ visit to Hades, where he talks to the shades of dead heroes. I also liked the mythical tale of Rome’s founding, including the wolf suckling Rome’s twin founders, Romulus and Remus.

I listened to the free Librivox audiobook of the translation by John Dryden.

View all my reviews

Review: A Storm of Swords (A Song of Ice and Fire, #3) by George R.R. Martin

2011-10-26T17:00:00.000-04:00

A Storm of Swords by George R.R. Martin
My rating: 3 of 5 stars

The further I get into George R.R. Martin's A Song of Ice and Fire series, the more I like it. It helps that I’m becoming more familiar with the people, places, and history. This book’s title is apt because it contains so much fighting, including hand-to-hand combat and full-scale battles. It’s more violent and bloody than the first two books.

The pace quickens and the plot thickens in this book. Besides an increase in violence, there’s more magic and hints at deeper mysteries. There’s also more political manipulation; there are betrayals, alliances forged and destroyed, and several puppeteers pulling strings. You never know who’s really in control. Martin isn't afraid to injure or kill prominent characters, which keeps you guessing. Many chapters end with cliffhangers.

This series is one of gritty realism; it’s not “clean”, romantic fantasy like Tolkien’s The Lord of the Rings or Lewis’ The Chronicles of Narnia. Martin’s books feature gore, profanity, and sex.

In this book, I liked reading about the training regimen and ethos of the Unsullied. Tyrion’s and Jon Snow’s stories were my favorites; Jaime’s and Catelyn’s were my least.

I listened to the unabridged Books on Tape audiobook. Roy Dotrice masterfully uses a variety of voices to bring the story to life.

View all my reviews

Review: Reality Check by Guy Kawasaki

2011-10-12T17:00:00.000-04:00

Reality Check: The Irreverent Guide to Outsmarting, Outmanaging, and Outmarketing Your Competition by Guy Kawasaki
My rating: 4 of 5 stars

Another of Guy Kawasaki’s excellent handbooks for startups. He dispels many myths and provides practical steps to starting and growing a business. The chapters are short but thought-provoking, and will enhance your “entrepreneurial quotient” whether you sell products or services.

Kawasaki expands on the lessons of The Art of the Start, which I found very worthwhile (read my review). In addition to his ample firsthand experience, Kawasaki includes interviews with experts, research from recent studies, and wisdom from popular books. I liked the advice on starting, executing, innovating, marketing, and selling. I skimmed the chapters that aren’t yet applicable to me: fund raising, hiring and firing, and managing.

Raising money
“Venture capital is something to do at the end of your career, not the beginning. It should be your last job, not your first.” You need real-world experience, ideally in engineering or sales.

Planning & executing
A business plan should take less than 1 week to write and be less than 20 pages. Write deliberate, act emergent: write as if you know what you’re going to do, but execute flexibly to react to new information and opportunities.

The primary goal of a startup: don’t run out of money.

Bootstrapping
Cash flow is more important than profitability.
Ship when the product/service is good enough, then improve it.
Focus on function over form.

Innovating
Build something that you want to use.
Make meaning. Enable people to do old things better, do things they always wanted to do, and do things they never knew they wanted to do.
Don’t worry, be crappy. Don’t wait for perfection; the first version can be crappy.
Don’t stay crappy. Improve every version.
Don’t be afraid to polarize. Create great products that make segments of people very happy, even if it makes other segments unhappy.

The purpose of innovation is not cool products but happy people.
To be successful, be the sole provider of something people really want.

The most powerful ideas in business are the ones that set forth an agenda for reform and renewal - the ones that turn a company into a cause: strategy as advocacy. Reshape the sense of what’s possible for customers.

Marketing
The most important lesson of marketing/branding: do one thing well.
The foundation of successful branding is to create an excellent product/service.

Selling & evangelizing
Sales fix everything. Sales means cash, and cash means you can fix your team, technology, and marketing.

People don’t buy revolutions. They buy aspirins to fix the pain or vitamins to supplement their lives.

Beguiling
Give people value and they’ll want to return the favor.
Every time someone thanks you, immediately ask for a testimonial or referral.

Influencing
Reciprocation. Take care of your customer, and they’ll take care of you.
Scarcity. It’s easier to sell your product if people perceive it as popular and in short supply.
Authority. The customer will believe in you if you’re knowledgeable.
Liking. Customers will only buy from you if they like you.
Consensus. Customers are more likely to buy when everyone around them is buying your product.

Don’t point fingers, just fix the problem.

Schmoozing
It’s not what you know or who you know, but who knows you.
Ask good questions and listen.
Unveil your passions.
Follow up.
Give favors, return favors, and ask for favors.
Make small talk to discover common interests and experiences.

Sucking up
Appeal to empathy. Take advantage of people’s desire to help an underdog.
Provide present or future value.
Thank for what you’ve already received.
Give favors.

View all my reviews

Review: The Giving Tree by Shel Silverstein

2011-10-05T17:00:00.000-04:00

The Giving Tree by Shel Silverstein
My rating: 3 of 5 stars

A simple, bittersweet story about giving and receiving, appreciation, selfishness, selflessness and sacrifice. Are you the tree or the boy in your relationships?

View all my reviews

Review: Life, the Universe and Everything by Douglas Adams

2011-09-28T17:00:00.000-04:00

Life, the Universe and Everything by Douglas Adams
My rating: 3 of 5 stars

This one isn't as interesting as the first 2 books in the Hitchhiker's Guide series. There's something lacking from the story, but it does have Adams' humorous language and plenty of farfetched events and plot twists, including fun with time travel paradoxes. I think Marvin, the Paranoid Android, is funnier in this book than the first 2.

View all my reviews

Review: Anathem by Neal Stephenson

2011-09-21T17:00:00.000-04:00

Anathem by Neal Stephenson
My rating: 1 of 5 stars

I didn’t enjoy this book due to its slow pace and lack of novelty and profundity. The story contains almost no humor or other compelling qualities; I’d describe it as fairly lifeless. I found I simply didn’t care about Erasmas or the other characters. I can’t believe this book ranked #85 on NPR’s Top 100 Science-Fiction, Fantasy Books. Its only redeeming value is that it provides some thought-provoking insights into the interaction of science, technology, and religion in society.

I liked Cryptonomicon (see my review), so I was especially disappointed by this one. Stephenson is known for his weak endings, but the finale was even more anticlimactic than I was anticipating. The story is set in an alien world, so Stephenson invented a new vocabulary for it. Although this added realism to the story, it was distracting to have to keep referencing words in the glossary, especially near the beginning of the book. There are a few action scenes that are page turners. There are some surprises and twists, and hints at deeper mysteries, but they never materialize.

I’ve heard Snow Crash is pretty good, so I’ll give that one a chance.

View all my reviews

Review: The Restaurant at the End of the UniverseThe Restaurant at the End of the Universe by Douglas Adams

2011-09-19T17:00:00.000-04:00

The Restaurant at the End of the Universe by Douglas Adams
My rating: 3 of 5 stars

This book continues the humorous sci-fi parody that began with The Hitchhiker's Guide to the Galaxy. Adams isn't shy about using his stories to lampoon philosophies, professions, and religions. His jabs are usually funny, but I didn't appreciate his thinly veiled mockery of Christianity.

The audiobook narrated by Martin Freeman is excellent.

View all my reviews

Review: Mere Christianity by C.S. Lewis

2011-09-16T17:00:00.000-04:00

Mere Christianity by C.S. Lewis
My rating: 3 of 5 stars

C.S. Lewis presents a calm, logical defense of the Christian faith. He addresses several common objections to Christianity with rational, level-headed arguments. He doesn’t promote any specific denomination; his purpose is to introduce mainstream Christianity to atheists and members of other religions.

Lewis says that when you cut through all the doctrinal disagreements, the simple purpose of the church is to draw people to Christ. However, he does say that doctrine and theology are practical and necessary; they serve as the map to our destination (Heaven); it’s not enough to go by spiritual feelings.

Christianity is commonly accused of being old-fashioned and anti-progressive, but Lewis says that becoming a Christian is, in fact, progressive, because it’s returning back to the path of truth:

"We all want progress. But progress means getting nearer to the place where you want to be. And if you have taken a wrong turning, then to go forward does not get you any nearer. If you are on the wrong road, progress means doing an about-turn and walking back to the right road; in that case the man who turns back soonest is the most progressive man."

A few other points I liked:

Choose a church based on the truth of its doctrine, not anything superficial like its worship style.
The Devil really exists and acts in our lives.
Jesus must be God or a lunatic; he can’t simply be a good moral teacher.
A Christian isn’t someone who thinks he’s doing everything right; he’s someone who repents and tries to get better each day.
Christians should be so charitable that it hurts; they should give until they can’t afford everything you want for yourself.

Because he’s generally non-confrontational, I was somewhat surprised that Lewis defends the Bible’s teachings about homosexuality being forbidden, and that the husband is the head of the wife in marriage. Lewis unapologetically admits that these views are unpopular, but they are part of God’s law for human relationships. He has an interesting proposal regarding marriage: he wishes there were separate definitions of marriage for the church and state, so that the Christian rules of marriage don’t impinge on those of other faiths, just as Christians wouldn’t want Islamic marriage rules enforced on them.

I disagree with Lewis (and many other Christians) about the interaction between human free will and God’s sovereignty. Lewis says that we can resist God and prevent our own salvation; that free will overpowers God’s will. I believe the Bible teaches that God’s will overcomes all others’ (see Romans 9:13-18).

View all my reviews