The Financial Engineer

Another Backdoor opens to fund Roth IRAs.

2015-01-17T12:59:00.000-06:00

If you have aftertax 401k funds or can make additional aftertax contributions, you may be interested in a new IRS rule. As of September 2014, the IRS has made it easier to fund your Roth IRA through a backdoor. Find more details at this Link to Forbes article.

Will you take advantage of this change in IRS rules? Do you currently fund a Roth through the traditional IRA backdoor?

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Calling Out the lies! Health insurance is available for those with pre-existing conditions

2009-09-12T22:05:00.004-05:00

News Flash! If you have a pre-existing condition that precludes you from getting insurance from a private insurer, you are eligible to become part of the Texas Health Insurance Pool. The pool provides affordable health insurance to those who are denied coverage. And it's not some fly by night insurance outfit, it's with BlueCross and BlueShield.

How is it that this little program has been kept a secret from POTUS and his cadre of Dems who keep claiming that it's impossible to get insurance with a pre-existing condition? The state of Texas has been providing this safety net since 1998!

What? you don't live in Texas? Well, just come visit, after 30 days you can have insurance. Seriously, check it out.

How on earth did I discover this? It certainly is not widely known and there is no advertising in any media that I have ever seen. I learned about the pool through a friend who was diagnosed with cancer. He didn't have insurance because he would rather spend his money on a $300,000 house and a boat, a deer lease and a new Ford 4x4, etc ad nauseum. Consequently, he thought he had no choice, but to pay for ala cart cancer treatments which BTW are at a substantial discount when paid for with cash. Because of his limited available funds, he had to make choices as to which treatments were the most cost effective. Eventually, after several treatments, his doctor mentioned that he could be eligible and should apply for the health insurance pool. My friend survived the cancer and the pool has saved him a fortune, plus he kept all his toys.

So, it begs the question, why even buy health insurance when such a pool exists? Why not save your money or spend it on 4x4 trucks, and just wait until you actually might need insurance then apply for the health pool safety net? Think of all the neat stuff you could have with the cash saved from not paying insurance premiums!

Sure, that would be abusing the system, and it is predictable that the corrupting forces of socialism will continue to be a deleterious drag on human character, even in the overly proud state of Texas.

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BIGGER GOVERNMENT = smaller people

2009-09-01T20:45:00.004-05:00

By now, we have all heard plenty of reasons why people are against and/or for an increase in government's role in healthcare. But the reason that resonates most is the effect on the individual. This article gets to the core of the issue concerning the deleterious effects of excessive government on human character.

A summary of the five ways big government kills character:

1. People who are able to take care of themselves and do so are generally of better character than people who are able to take care of themselves but rely on others. Also known as pride.

2. The more people come to rely on government, the more they develop a sense of entitlement. Why work when there are handouts?

3. People develop disdain for work. Work is no longer considered a noble and worthy use of time.

4. People become preoccupied with vacation time.

5. People are rendered more selfish. Ever work at a can bank handing out food? The people that come in for free handouts are downright demanding.

As a result, Bigger government increases the number of angry, ungrateful, lazy, spoiled and self-centered individuals. Which is the same result that parents get when they never say "no" to their children!

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Capitalism to the rescue with a real stimulus plan

2009-02-11T20:13:00.004-06:00

Leave it to a private businessman to offer some stimulus that makes sense. It seems obvious now, but who else but a true capitalist would come up with a great way to encourage new business?

Mark Cuban, owner of the Dallas Mavericks, is offering funding for those who share their idea for a new business on his blog. The really interesting part is that he is calling it an "open source funding environment". Since the plan will be available to all who visit the blog, there is a good chance others will "steal" the plan and duplicate it elsewhere in the country. After all, he says the idea is to help the whole country, not just one or two.

What a refreshing idea this is compared to the absurd pork spending that our government is offering. It's comical to even suggest that our overbloated, non-functional government would know anything about starting a competent business.

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Going against Nature is for Fools

2009-02-10T19:40:00.002-06:00

Does it seem odd to anyone that our government is so interested in discouraging saving? How can anyone argue that savings is not the very essence of our personal security. Our savings are the primary foundation we have to fall back on in tough times, to get us through ordeals such as what we are now facing, and of course, to build a better life. Yet, our dear leaders, have little interest in encouraging savings.

Why is saving no longer in the interest of the public good? Simply put, the economy has been depending on consumer “overspending” for years with the government injecting stimulus at every downturn. It is a false economy. The consumer has been driving this engine and this dependency is not a healthy underpinning for any free market.

It hasn’t always been that way. At one time, a very long time ago, saving was encouraged. Saving and then investing money into one’s private business or even into the stock of other businesses helped to fund the building of products and drove job creation. When US products could no longer compete in price with other countries, we stopped building and the economy began to rely excessively on consuming.

This didn’t happen overnight. It took years to change laws and eliminate sound lending policies to free up the credit to fuel this monster, to keep consumption growing. It has been a case of growth at all costs. Leverage yourself to the hilt, take out more credit, just keep the engine going a little longer.

Obviously, we are desperate for change, but it has now become apparent that there will be no change in economic policy. This administration plans to keep on kicking the can down the road. In fact, the “can” is doubling and tripling in size. It is and has been easier to keep kicking, rather than to actually stand up and lead; to make the tough, unpopular decisions. Eventually, all of this will settle out, this farce can only continue for so long. Propping up unsound businesses will not work. There was a day when a business did not make a profit, it got squeezed out. It was economic survival of the fittest and this natural process produced the strongest and most competent businesses. Evidently, there are many who think they can change this law of nature, but we all know that nature can not be fooled.

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Two chances to win Money

2009-01-24T10:06:00.005-06:00

Here's an opportunity to win a couple of free gift cards.

Your Money Relationship is offering a contest for a $50 Amazon gift certificate. You can increase your chances of winning by doing various things on the site such as asking a question, subscribing to the feed by email, leaving a comment, etc. The contest runs until 11:59 PM on January 31st.

Single Guy Money is offering a $100 gift card to your choice of Target or Wal-Mart. To enter the contest just leave a comment on his site describing how you would like to spend the money.

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Novel device provides feedback to stop slouching

2009-01-20T21:35:00.001-06:00

Now, here’s a gadget that I would really like to try out: the iPosture.

“The iPosture is an intuitive electronic device designed to improve posture. Just over one inch in diameter, the iPosture automatically senses when the body slouches, and it alerts the user with brief vibrations to correct it.“

I have no doubt that it’s just as tough as this reviewer says it is. He actually had sore muscles from just a few hours of use. Of course, as with any new habit, good or bad, it typically takes 3-4 weeks for good posture to become natural.

Like most people, I would like to improve my posture. I remind myself several times during the day, particularly when at my computer keyboard, to straighten up, throw my shoulders back, etc. So, I have decent posture for a few minutes and then before I know it, I find myself drawn in closer to the PC and scrunched over the keyboard once again.

Even though, it may be distracting at first, I think the continuous feedback from an active monitor like the iPosture just might get me over the hump, so to speak.

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Save Thousands in Taxes with an “honest” mistake

2009-01-17T06:15:00.001-06:00

It has never been more obvious than now, that we live in a society of haves and have nots. The nominee for Secretary of the US Treasury did not pay taxes for several years and when he got caught in an audit, he paid only the back taxes that the auditors found, not all of the taxes that he knew about. On top of that, he was not fined, no penalty. If you don’t think we have a double standard between public figures and regular, non celebrity-type citizens try that and see how you are treated in the federal pen.

But that is not the end of this guys sordid tale. The WSJ points out a few more “goofs” of this supposed genius:

“Other tax issues also surfaced during the vetting, including the fact Mr. Geithner used his child's time at overnight camps in 2001, 2004 and 2005 to calculate dependent-care tax deductions. Sleepaway camps don't qualify.

Amended tax returns that Mr. Geithner filed recently include $4,334 in additional taxes, and $1,232 in interest for infractions, such as an early-withdrawal penalty from a retirement plan, an improper small-business deduction, a charitable-contribution deduction for ineligible items, and the expensing of utility costs that went for personal use.

The other cloud for Mr. Geithner involved an immigrant housekeeper whose work-authorization papers expired during her tenure working for Mr. Geithner. “

It takes some real audacity to try to deduct your kids summer camp. Sure some accountant could have prepared his paperwork for him, but once again try that excuse with your tax filings. You and you alone are responsible for what goes on your tax forms.

The other real kicker for me is the fact that this financial whiz took an early withdrawal from his retirement plan and lied about it to the IRS. That action calls into question not only his honesty, but his money management skills. After all this is no run of the mill, inconsequential nominee, this guy is going to oversee the IRS!!! And all of our tax dollars in US Treasury.

His defense is simply that all of this was an “honest mistake”.

The guy can’t manage his own personal finances let alone oversee the finances of the country. This is the change that we have been promised?? This is considered acceptable behavior by BHO?? What would be unacceptable?

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Going cashless - against the grain

2009-01-15T19:05:00.001-06:00

Forever the contrarian, it seems. While others are opting for cash only transactions to avoid credit card balances, I am doing just the opposite. I have streamlined my wallet to include only my ID, one credit card, an ATM/Debit card and a couple of insurance information cards.

I have a few reasons for making this change:

Thinner, smaller wallet that is easier to conceal and carry
Faster transactions
Cash back on card purchases means more money in my pocket
Eliminate hassle of carrying change coins

Some other potential benefits:

Reduce chances of overpaying. For example, handing over a 20, but receiving change for a 10
Eliminate the handling of tainted and/or counterfeit bills

And of course, some of the cons might be:

Credit card not accepted everywhere
Vendor refuses transaction due to low purchase amount
More people handling my credit card could increase chances of ID theft/fraud

I decided to put the new system to test this past week while on a three day business trip. At first, it seemed a little strange to use a card to pay for a 2 dollar and 17 cent item. However, the cashier didn’t hesitate at all when I handed over a credit card. The best part is that the deal is cleaner and much faster, since a signature is not required on transactions less than $25 and some vendors accept even larger amounts.

It all went smoothly, except for a couple of instances. In one case, I stopped at a kiosk for a newspaper and coffee in an airport. Payment was on the honor principle! The kiosk had a container with a slot and a sign “please pay with correct change”. Since I was so impressed with the fact that anybody would use an honor system in a large city airport, I just had to participate. By throwing a couple of bucks in the pot, I wanted to show the vendor and the world that there is some hope for the future of humankind! That’s right, some folks will pay for services simply because it’s the right thing to do, not because it’s the law.

Fortunately, I didn’t do this cashless experiment cold turkey. I had three dollar bills and a twenty – just in case.

The next cash only situation occurred at my hotel. The hotel offered complimentary breakfast buffet and it was so good and the waitress so friendly that I wanted to leave a tip. I could have asked to have a tip placed on my room bill, but who knows if the waitress would have received that? Leaving cash on the table was the best way to make sure she got the tip.

From this trial, I can see that I still need to stash a few bucks for tips, especially when I travel. So, my wallet may not be as thin as I would like, but then again, I just found another way to eliminate my ATM/debit card by turning my drivers license into a debit card!

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What’s working in your Investment Portfolio?

2009-01-07T06:54:00.005-06:00

This past year has been brutal for equities across the board. In times like these, when nearly everything is tanking, I can’t help but notice the miniscule portion of my portfolio in US savings bonds that is leading the way with positive returns. I never thought I would see the day. I have been purchasing savings bonds over the last 20 years mainly to keep my employer off my back. Every year, the company recruits employees to canvass the masses and urge all to participate through payroll deduction. I have been one of those canvassers and I can attest that convincing engineers of the financial benefits of bonds has always been a hard sell, so instead the canvassers tout patriotism! Love

America

, buy a bond.

To track my bond holdings, I use a Savings Bond Wizard tool and it is currently reporting that many of my EE bonds purchased 10, 15 and even 20 years ago are yielding a whopping 5.6 %. I’m thrilled! A snapshot example of the wizard screen is shown below. For those of you holding savings bonds, the wizard software, available for download at the TreasuryDirect website, is an easy way to keep track of this newly, exciting asset class. Once you have entered the serial number of each bond, the wizard will track it, provide accrual and maturity dates, automatically update to the latest rates and yields and provide the current dollar value of the bonds all free of charge.

This past year was a great time to be holding bonds, but what about previous years? For some very interesting data check out this graph provided by The Savings Bond Advisor comparing the value of equal monthly investments in series I savings bond and the Vanguard Index 500. The differences between the two over the last year are pretty dramatic, but the data also shows that savings bonds have been in the running over the last several years. Hmmm, an investment paradigm shift may have finally arrived for at least one engineer.

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Setting the Stage for a better 2009

2009-01-05T21:38:00.001-06:00

Every year I set several goals that are typically related in some way to sports or athletic endeavors. This year I have expanded that to include some other areas that need improvement. Here are four of my goals:

#1 Goal

More bonds in my portfolio! I always have trouble adding bonds, it just seems to go against my grain. For many years I have steered away from bonds and their boring returns with the argument that I was diversified in various equities, commodities and real estate. That false sense of security worked for a long time. It seemed that things balanced out because when one asset class was down another was booming. That didn’t hold true for the bust of 2008 where equities across the board took steep losses with few exceptions. The losses have gotten my attention and convinced me to reduce my overall risk. I will not sell any assets, but will re-direct a large portion of new money into bonds.

#2 Goal

Exceed my 2008 walking/hiking mileage. Last year, I strolled along for just over 3 million steps or 1500 miles. 1.27 million of those steps were with my dog, Brownie Boy. Dogs can be great motivators – how can anybody say no to a walk when the little guy is so excited about going?

#3 Goal

Read More. I don’t care what the topic, just read. I read twenty books last year ranging from personal finance to mysteries with romantic undercurrents. I am giving myself free rein to read anything that interests me because reading something is better than not.

#4 Goal

Take off on an Adventure. I want to live life with no regrets and one way to help make sure that happens is to do something every now and then that is frightening! Okay, that may be a little over the top. My aim is to do something that forces me to stretch in some way. One of the possibilities for this year is a sea kayak trip, camping and fishing for 8 days along the coast.

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Find your Personality Type

2008-11-19T09:00:00.004-06:00

Check out this interesting website: Typealyzer.com. The site attempts to determine the blog authors personality using a psychological text analysis. Here are some examples:

http://thefinancialengineer.blogspot.com/ was typed as ISTP, the mechanics. The independent and problem-solving type. They are especially attuned to the demands of the moment are masters of responding to challenges that arise spontaneously. They prefer to think things out for themselves and often avoid inter-personal conflicts.

http://thefinancebuff.com/ was typed as ESTJ, the guardians. The organizing and efficient type. They are especially attuned to setting goals and managing available resources to get the job done. Once they've made up their mind on something, it can be quite difficult to convince otherwise. They listen to hard facts and can have a hard time accepting new or innovative ways of doing things.

http://earlyretirementextreme.com/ Was typed as ESTP, the doers. The active and play-ful type. They are especially attuned to people and things around them and often full of energy, talking, joking and engaging in physical out-door activities.

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The UAW has already bought their Bailout

2008-11-17T20:31:00.003-06:00

Bailing out the big 3 automakers is nothing more than kicking the can down the road and that road is headed over a cliff.

Will the ruling party stand up and make the hard choice, the unpopular, but necessary decision to force these companies to declare bankruptcy? Bankruptcy would allow these unwieldy, behemoths to restructure, reorganize, streamline and break the juggernaut of the unions. That is the key - No industry can survive paying an average of $73 per hour to low skilled labor.

The unions seem to be trying to stop time by refusing to adapt and change with new technology (robotics). They are so consumed with preserving their old, outdated jobs that they are willing to kill the mothership, herself.

Bankruptcy is not the end. Many companies emerge stronger, leaner and more competitive. Frankly, there is not much chance of this happening since the unions own the president elect. Can you imagine the outcry if BHO doesn't give these folks everything they demand?

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Another 401(k) plan bites the dust in Argentina

2008-11-10T09:16:00.001-06:00

Argentina’s government has announced their intention to expropriate $30 billion held by Argentine citizens in private pension funds (similar to 401(k) retirement savings accounts). The money is needed to refinance old bad debts so that they can borrow yet more money to keep the country afloat. The announcement rocked investor confidence in Argentina and sent the Buenos Aires stock market plunging. More details can be found here.

Expropriation refers to confiscation of private property with the stated purpose of establishing social equality. Argentina is quickly falling into economic socialism. The country's rank plummeted from 19th-freest economy in the world (out of 156 countries) scored in 1998 to 108th out 162 countries by 2008 as calculated by the Index of Economic Freedom.

This action by Argentina sounds eerily similar to the plan currently under consideration by our own US government.

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Your 401(k) is at RISK

2008-11-09T06:46:00.002-06:00

Just when you thought the situation with your 401(k) account couldn't get any worse, our new democrat-controlled government is preparing a plan to nationalize your personal, private 401k retirement account!

The plan calls for the elimination of tax deferred 401(k) contributions. No more 401ks. Instead, the federal government will pay every worker $600 per year (inflation adjusted each year) and require every worker to invest 5 percent of their after-tax pay into a new retirement account to be administered by the Social Security Administration. The money would be invested in a new class of government bond which would yield 3 percent per year, adjusted for inflation.

That would be a drastic reduction in the amount that I currently invest in my 401k. I contribute the maximum amount of $15,500 per year and my company match gives me a couple thousand more to add to my personal retirement. My 401k is a big part of my retirement plan. I love the fact that it allows me to plan for my own retirement. I never want to depend on social security or the government in any way.

Why does the government want to take away that independence?? What's their motivation?

Money, of course. By removing the tax deferral of 401k contributions, the dems can increase federal tax revenues by about $80 billion a year. In addition, this plan would allow the government to take over the largest pool of private savings in the U.S. And, as with the Social Security fund, the government could borrow and spend all the annual proceeds over and above any payout to retirees.

This ingenious plan will enable the government to redirect some $3 trillion which would provide the money to fund the massive expansion of government programs, subsidies and tax "cuts" promised by Barack Hussein Obama.

If all of this sounds inconceivable, then consider another democratic President, Lyndon Johnson, who promised not to raise taxes to fight the Viet Nam war, but rather he suggested borrowing money from the SS fund for ONE year.

The federal government has borrowed this annual "surplus" every year since. And now SS is nearing a deficit with nothing but a bunch of government IOUs to pay the retirees. Click here for more information and find out who is behind this "grand" scheme.

And here's another viewpoint from Investment News.

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Free Blu-ray Disc player with TD Ameritrade Deposit

2008-11-08T09:46:00.001-06:00

TD Ameritrade sent me another “exclusive” offer for a Sharp AQUOS Blu-ray Disc player in exchange for a deposit of $50,000 into my TD Ameritrade account. For another $50,000, I can get one year of 3 DVDs at a time from Netflix.

While these items are some pretty nice gifts, it just isn't attractive enough to get me motivated to tie up 50Gs for one year in a brokerage account. The Blu-ray can be purchased for $240 or less with a little internet searching.

And even more disconcerting is the possibility of your account falling below the minimum, in which case TD charges your account for the disc player.

Evidently these give away offers are effective. Last June, TD Ameritrade offered a free Nuvi for a deposit of 50 grand. Either that or they are grasping at ways to encourage investors to get back in the game.

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Bailout pays for Mango Towel Service

2008-11-07T21:38:00.005-06:00

While the president-elect talks about yet another bailout/stimulus plan, we learn how Fannie Mae executives have chosen to spend over $6000 of their last $200 Billion of bailout money on a golf outing that included mango towel service and $1700 worth of buffet food and $555 for drinks.

Where's the outrage?

As reported by the star telegram: "I am outraged by this," said U.S. Rep. Jeb Hensarling, R-Dallas, who serves on the committee that oversees Fannie Mae.

And then the Quote of the day that had me LMAO:

"They have 200 billion dollars of taxpayer money from the schoolteacher in Mesquite, the factory worker in Garland, the policeman in Dallas, and they’re running around golfing, getting mango towel service," Hensarling said. "I’m not even sure what mango towel service is, but I know the taxpayers of Dallas County and America shouldn’t have to be paying for it."

Have you ever experienced mango towel service??

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Largest Market Crash following US election in History!

2008-11-05T19:28:00.005-06:00

Buyers ran for the exits as declines lead advances 4 to 1. It was the largest percentage drop following a presidential election in 112 years of data (shown below) according to Reuters.com. In fact, we have to go all the way back to 1932, during the depression, to find numbers anywhere close to today's blowout.

The US is having a fire sale on its corporations, yet a ton of foreign money sits on the sidelines. The magnitude of today’s market direction speaks volumes about the lack of confidence the global business community now has in this country.

Year Dow S&P Nasdaq President elect

2008 -5.05 -5.27 -5.53 Barack Hussein Obama

2004 +1.01 +1.12 +0.98 George W. Bush

2000 -0.41 -1.58 -5.39 No decision: G.W. Bush v Al Gore*

1996 +1.59 +1.46 +1.34 William Clinton

1992 -0.91 -0.67 +0.16 William Clinton

1988 -0.43 -0.66 -0.29 George H. W. Bush

1984 -0.88 -0.73 -0.32 Ronald Reagan

1980 +1.70 +1.77 +1.49 Ronald Reagan

1976 -0.99 -1.14 -1.12 James Carter

1972 -0.11 -0.55 -0.39 Richard Nixon

1968 +0.34 +0.16 --- Richard Nixon

1964 -0.19 -0.05 --- Lyndon Johnson

1960 +0.77 +0.44 --- John Kennedy

1956 -0.85 -1.03 --- Dwight Eisenhower

1952 +0.40 +0.28 --- Dwight Eisenhower

1948 -3.85 -4.15 --- Harry Truman

1944 -0.27 0.00 --- Franklin Roosevelt

1940 -2.39 -3.14 --- Franklin Roosevelt

1936 +2.26 +1.40 --- Franklin Roosevelt

1932 -4.51 -2.67 --- Franklin Roosevelt

1928 +1.20 +1.77 --- Herbert Hoover

1924 +1.17 --- --- Calvin Coolidge

1920 -0.57 --- --- Warren Harding

1916 -0.35 --- --- Woodrow Wilson

1912 +1.83 --- --- Woodrow Wilson

1908 +2.38 --- --- William Taft

1904 +1.30 --- --- Theodore Roosevelt

1900 +3.33 --- --- William McKinley

1896 +4.54 --- --- William McKinley

* George W. Bush ultimately was determined the winner of the

2000 election.

Source: Reuters EcoWin

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The Market is always looking ahead

2008-10-07T22:01:00.004-05:00

As we watch the carnage on Wall Street where investors are cashing out of the market, it appears nothing can stop this train wreck - not an economic stimulus plan (remember that tax rebate?) and now not even a $700 Billion cash infusion.

Why is nothing helping? Where is that quick fix?
Confidence in the markets has been damaged and as the market looks to the future - it doesn't like what it sees ahead: Higher capital gains tax rates, increased regulation and bigger government. In a nutshell - the move to socialism.

This progression has become clearer over the last two weeks as the election polls have been edging towards Barack Hussein Obama. BHO has promised to increase the capital gains tax and significantly grow government (federalizing health care, expanding the IRS, unprecedented increases in foreign aid, etc, etc). In a lame attempt to defend his tax increases, BHO plays the class warfare card by saying that this tax will not affect regular folks since their 401ks are not subject to the capital gains tax upon withdrawal and only the wealthy who own stocks will be punished.

Does BHO really believe that? Let's go back and review econ 101.

By raising the capital gains tax rate, investing in stocks becomes less attractive. This will cause investors to move money out of stocks and into fixed income investments. As they do this the stock market will decline in value which will in turn hurt the overall value of stock investments and mutual funds that BHO's "ordinary folks" have in their 401Ks, IRAs and other retirement funds.

A bailout will not change this; a tax rebate will not change this. Such tactics are nothing more than band-aids. The underlying issue driving the market downward is lack of confidence in tomorrow. Today's market has lost hope in tomorrow's market.

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Who's to blame for this financial crisis?

2008-09-23T21:10:00.003-05:00

Follow the money. Where did it all go? Mortgage companies made easy cheap loans to people that should not have qualified for any loan because they could never repay them. In turn those folks used the money to buy houses and to hire contractors to build houses, which in turn stimulated the economy. The Gov't supported this - growth at all costs. It was affirmative action for housing - no one could be turned down for a loan.

Seven years later the well ran dry.

The subprime debacle has been the largest economic stimulus plan in history. 700 Billion and counting. And now the Dems say the gov't needs to do something for the poor homeowners. Haven't you done enough already?

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The Storm that is Sarah Palin

2008-09-08T06:30:00.001-05:00

Wow! How did this news get to such monumental status? Yes, it is exciting. I am inspired – I want to move to Alaska and become a mayor. LOL I am also completely amazed at the storm this has stirred up.

Some observations:

The media went after her aggressively because they were left standing flat-footed. The press does not like surprises and Sarah Palin was a bolt from the blue to EVERYONE. McCain wanted to steal the DNC convention thunder with a surprise announcement, and it worked but it also created this media attack attitude. The press didn’t have any stories, nothing to report on her, because they had no clue. They were left out and they hate that.

I never dreamed the Republican party would have a woman on the Presidential ticket. Ever. And she would not be there if it weren’t for John McCain. He is certainly a maverick and a reformer of the party for taking that risk.

Speaking of risk, Sarah Palin is taking a big risk - with a part of her life that many are uncomfortable risking - their families. In this world, women are not seen as risk takers. Some of her biggest critics are women. They say she can’t do it – what they mean is they can’t do it. This is way too risky for the average woman to even contemplate, meanwhile men seem to have little issue with it at all.

The VP job will seem like a vacation to the Palin family compared to the Governorship of Alaska.

Any time we are confronted with change, we do a little risk assessment. I have to believe that she and her husband assessed the risk both to their family and the country and came to the conclusion that not running for VP posed an even greater risk to this country.

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Risks and the Road to Early Retirement

2008-09-07T13:57:00.003-05:00

We may not realize it, but we all make risk assessments everyday in almost everything we do. For example, some folks will drive nothing but the safest car on the road, typically a Volvo with airbags in every direction, while others ride motorcycles without helmets.

It’s no different with personal finance. Some of us are very risk averse - shying away from stocks, investing in bonds, wanting to secure our futures with reliable investments. While others love taking risks – day-trading stocks, shorting stocks, chasing returns. Ideally, a smart investor finds a middle ground that will allow for some growth while still maintaining a strong core.

When I first started investing, I would often say that I was willing to take on more risk because I wanted to build a portfolio that would allow me to retire early. I knew I had to invest in stocks to achieve that. And I reasoned that if I failed, then I would simply continue to work like every other poor slob until my normal retirement!

In those terms, it seemed like a no-brainer. Why not take discretionary income and invest it instead of spending it? While my friends and co-workers bought bigger homes, lavish vacations and more toys, I enjoyed having a "higher goal". Whenever I mentioned retiring early to them, they looked at me like I was speaking a foreign language. For many, the concept had never occurred to them. And as they gave it some thought, you could see the painful realization in their faces that they will never be able to do such a thing.

Many of us have similar goals in life. We aim to graduate from high school, then college, then we want to land a good job. What comes next is not so well-defined. Some wish to climb the corporate ladder, others want their own business, while others seek challenging assignments. For me, I never desired to ascend into corporate bureaucracy, I never wanted my boss’ job ( even though I did eventually get it). I wanted interesting work, but even more, I wanted security. Typical woman, eh? My goal to retire early was driven by that need and the fact that I prefer to work for myself. I like my job, but to this day, I would much rather spend time working on one of my personal projects than going in to work. I craved that freedom and early retirement was the answer.

The real bonus is that now that I have the means to retire early, I also have new-found powers. I can pick and choose my work assignments, I call more shots, I take off when I want to, I don’t worry about where my career is going, what the boss might say, what co-workers might think, I can walk out any day, any time. I am in charge! My job is so much more fun.

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Google Chrome speeds past clunky Internet Explorer

2008-09-02T19:18:00.002-05:00

I switched my internet browser from IE7 to Google’s new Chrome, today. And, I found Chrome to be just like advertised: sleek and fast. I have read some complaints that only the tech geeks will change to Chrome. I don’t really consider myself a computer techie and I don’t usually try out new software on the first day of a release.

My decision to give a new browser a try centered around a problem with utilizing the latest version of Macromedia Flash with IE7. Initially I though it was a firewall or antivirus issue, or maybe an ActiveX script issue, but after much trial and error – IE still would not play flash. I am sure there is a way to correct that problem somewhere out there, but I don’t care to spend another minute trying to figure it out. I was about to download Firefox, when I learned that Chrome was available.

What’s cool about Chrome?

Speed – pages download much faster!
Less clutter on the header and the footer only appears when you hover over a link.
It has a bookmarks bar – you can drag your favorite site links right to the bar for easy access, similar to the home page icon. For instance, I have my favorite weather site, sports team, netflix, etc., one click away all of the time.
It has tabs, similar to IE7, with the added feature that when you open a new tab, several of your recently visited sites appear as thumbnails.
And for those of you concerned about losing your bookmarks - all of my bookmarks transferred over from IE.

As for the nay-sayers, who think Chrome will flop, they may have discounted the strength of Google’s brand. I would have never tried out a Microsoft product on the first day of release, yet I did not hesitate with Google. And, of course the biggest factor – speed rules. IE was getting so clunky and lethargic on my PC that I was considering upgrading the machine! Instead, I switched to a new free browser, saved $1200 and left IE in the dust.

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Snakebit!

2008-08-28T21:12:00.001-05:00

It seems such things happen when you least expect it. Fortunately, I was ready with basic first aid. My dog, a small terrier mix, got bit by a snake last week. I was cutting tree saplings/suckers out of an english ivy bed and the dog was in the ivy, also. He let out a yelp, jumped straight up about two feet, and then ran, eventually circling back to me. I could not find any wound on his legs or body, but 20 minutes later his snout and neck were swollen. He was in a lot of pain and lethargic. I could see a puncture wound in his muzzle and reddish/brown liquid oozing out.

I figure worse case it was a copperhead and best case just a bull snake. I have never seen a rattlesnake on this property. Since I could not identify the type of snake, it escaped in the ivy, I assumed the vet would not be able to give an anti-venom. I checked the internet for dog snake bites and found that vets do not typically give anti-venom for copperheads, anyway (because the mortality rate is low).

I gave him 25 mg of Benadryl with peanut butter ( 1 mg per lb body weight). That helped immediately, swelling did go down and his head perked up. He curled up next to me and we took a nap. He was significantly better a couple of hours later.

The next day the puncture wounds on his muzzle were much more visible and I noticed that he had a bruised sore spot inside of his upper lip. I took him to the vet and received a weeks worth of tablets of prednisolone, clindamycin (antibiotic) and neomycin ointment (topical treatment for the puncture wounds). The vet thought it was most likely a copperhead and a defensive strike (less venom) - since it didn't kill him! He also said he never gives anti-venom because it can cause reactions that are more harmful than good. The best treatment is Benadryl followed by antibiotics - good stuff to know.

In my internet research I came upon an informative list of things to do and not to do when a pet is snake bitten:

"Do's"
Remain calm. Do everything possible to keep your pet calm and quiet. Excitement and activity cause the venom to be circulated more rapidly through the victims system. Obviously, the calmer and quieter you are the calmer and quieter the victim also will be.

Call a veterinarian. Tell the vet what medications you have on hand: antibiotics, prednisone, Benadryl, etc.

Administer Benadryl. The proper dosage is 1mg/pound.

Clean the wound with an antibacterial solution. Be gentle, the bite site will be extremely painful.

Administer a broad-spectrum antibiotic. For a 20 lb dog, administer approximately 250mg of amoxicillin.

Loosen or remove the victim's collar. If the bite is the head or neck area, the extreme swelling (which occurs quickly) could cause strangulation from the collar.

Encourage the victim to take fluids.

Keep the victim warm if he/she appears to be in shock.

"Don'ts"
The "don'ts" listed below represent the most recent advice and thinking.

Don't apply ice. The most recent thinking on the use of ice for snakebites is that while ice will aid in controlling swelling, it also slows circulation of the body's chemical defenses to the affected area. Additionally, applied incorrectly, ice can further damage the already traumatized tissue.

Don't cut a "X" across the puncture wound and attempt to suck out the venom. The cut further damages the injured tissue. Additionally, while venom is not harmful if digested, its absorption via the membranes in the mouth may envenommate the person trying to suck the venom from the wound.

Don't apply a tourniquet unless you are experienced in the use of this highly risky procedure.

This list did help as I had considered applying ice to help reduce the swelling. And I was fortunate to have small 25 mg tablets of Benadryl on hand that could be cut up and fed to the dog with peanut butter. Even with the peanut butter, one of his favorites, I had to coax him into eating it. He would not take any water. Something he usually laps up after a little peanut butter.

Later in the evening, I gave him another ½ dose of Benadryl to help him with the pain and keep the swelling down over night. By morning, he was much better, swelling reduced, and he actually ate his cup of dog food. It’s amazing how resilient dogs are!

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Did your pay raise beat inflation?

2008-08-17T20:40:00.005-05:00

In 2008 the average pay raise in the USA was 3.7%. That was 1.8% over the projected rate of inflation. So the effective pay rate increase was (3.7-1.8) = 1.9%. Unfortunately, those projections for inflation were low.

In reality, the actual inflation rate, year to date, is up 5.6% from its level a year ago. And that is the government’s calculation of the inflation number -which always seems lower than the effective rate.

Just out of curiosity I checked my budget expenses in MS Money and calculated my own inflationary rate for gas and food. For the year to date, I have spent a whopping 34% more on gas and another 30% more on groceries compared to last years expenses.

What can we expect for pay raises in 2009?

According to this Wall Street Journal article merit increases for next year are expected to average around 3.7%. Given these numbers, it seems there is no correlation between the average pay increase and inflation. The old cost of living adjustment, COLA, has long given way to performance only raises, which has conveniently ended any ties to inflation. A raise is only a raise when it exceeds the rate of inflation. Anything less and you are losing ground.

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