The World of Wealth

Why Your Finances Are Never In Perfect Order

theworldofwealth@gmail.com (MEG) — Tue, 14 Jul 2009 21:45:00 +0000

No matter how much time and effort you put into financial planning, there is always another item on the to-do list, another concept to research, another change to be made in the budget.

Not only do regulations and tax laws change, but our career paths and income levels and personal lives change as well - and sometimes all at once! Nothing is constant. A new career, marriage, layoff, divorce, raise, child, medical problem, or inheritance and and often does require changes to your budget, insurance policy, estate plan, retirement contributions, and so on.

This is obvious I suppose, and should be expected. But it can still be a bit frustrating if you're a perfectionist (like me). Here is a list of things in my financial plan which are causing angst, despite the fact that I read and write about personal finance every single day:

I feel guilty for spending so much money on shopping and restaurants.

I worry about whether my tenant will pay rent on time or whether I'll have to dip into reserves to pay the mortgage.

I struggle to get my vacant rental unit leased.

I know I should have more cash reserves.

I wonder whether I should be saving for future goals that I don't really have yet (new car, wedding, kids, vacations)

I don't know what kind of monthly bonus I'll get, so budgeting is now and endless task.

I'm dipping into savings to pay off my credit card again???

I haven't reviewed my home insurance policy in awhile, and I have this nagging feeling that if something were to happen I wouldn't be covered. I assume auto is OK, and that the disability coverage I get through my company is sufficient...

Surely I don't need a will or an estate plan...I'll do that after I'm married. But what if that never happens? I should at least update my beneficiaries and write up a holographic will...

I should probably talk to a CPA about some tax planning...that's been on the to do list for awhile.

I should do some research about putting my rentals into an LLC. Or getting an umbrella insurance policy. Or both.

Retirement Plan Brings Peace of Mind

theworldofwealth@gmail.com (MEG) — Tue, 14 Jul 2009 20:41:00 +0000

There's a lot of angst surrounding my personal financial plan in general. Despite this, one area of my financial plan is a happy, confident, closed book: My Retirement Plan.

Why you ask? How can I be so content with my retirement plan when the markets are uncertain and social security is strapped and soon there will be fewer workers paying more retirees?

Because first of all I know what to do. This is key. Budgeting and investing in rental properties requires constant analysis and management and all the variables are constantly changing.

But for all practical purposes, retirement planning is pretty simple. I started early, it's all automatic, and if I keep on keeping on I should end up in great shape (unless the whole system fails, in which case I'll have bigger problems and everybody will be in the same boat anyway!).

Get this:

I opened a Roth IRA when I was 18 years old, and each January since then I've contributed the maximum allowed. Current Balance is around $21,000.

I opened a Roth 401k the day I became eligible when I was 22 years old and since then I have contributed 10% of my gross income each and every month. Current balance is around $15,000.

My employer kicks in another 3% to my 401k (and next year that will bump up to 6%!!).

All retirement funds are invested in very low cost broadly diversified index funds.

I intend to keep this up for as long as I'm eligible for those accounts (otherwise I'll save at least 10% of my income in a taxable account).

Between my employer and me, this year I'll invest $12,800 into retirement accounts, and I plan to increase that annually until I contribute $22,000 at age 35. At that point I should have $325K in retirement funds assuming an annual return of 8% between now and then.

Even if I stop investing altogether at that point, my retirement funds would grow to be over 10 times that amount by the time I'm 65 (assumes 8% annual return). Of course that's before inflation is factored in, but it's still pretty amazing. Best of all, that money is in tax free accounts from which (unless laws change) I'll be able to withdraw 100% tax and penalty free. And even if I go bankrupt that money will be protected (again, unless laws change).

I intend to keep saving after 35, and I intend to have rental properties paid off and generating additional income - but you never know what can happen. The fact is that my "retirement" is so far off I can't even begin to try to plan or imagine it. But no matter - I'm saving now so that I'll have flexibilty to make plans later. And I'm sleeping soundly as a result.

Model Employee vs Model Parent

theworldofwealth@gmail.com (MEG) — Mon, 13 Jul 2009 17:39:00 +0000

In my last post I quoted Jack Welsh as asserting that "There's No Such Thing as Work-Life Balance."

Trying to "balance" work and life is very difficult, which is why the topic generates so much discussion. Doing both at once requires constant effort and calculation: "Thursday I'll leave the office early and catch Timmy's soccer game, but Saturday I'll play golf with my colleagues...I'll go on the business trip next week, but I'll make sure to leave early and get home in time for dinner the week after that..."

You might be able to strike a balance that works for you - and that's the whole point of course - but being a model employee in a traditional professional setting just isn't compatible with being a model parent. Don't believe me? Consider the following profiles:

Being A Great Employee
Those who are model employees (and future executives) are those who are dedicated, reliable, hard working and well connected. This means that you are the one in at 7am and still in at 7pm, doing anything and everything that needs doing. You are the one who can be counted on to come in on the weekend to finish a big project. You take time to train and mentor others. You are always trying to improve, always excelling - and you are continually on the lookout for ways to minimize costs or increase revenue.

You never turn down an invitation to socialize with colleagues. You are spending time after work and on weekends networking, attending industry events, sitting on boards, playing golf with colleagues or the competition. You are constantly on the lookout for ways to impress and get friendly with your boss. You grab any opportunity to get more development or training even if it's an out of town seminar; you plan your social life around rubbing elbows with important people in your field;

Being A Great Parent
Those who are model parents are a constant reliable presence in their kids lives, consciously monitoring and assisting their development. They never miss a teaching moment, have the time and patience to properly discipline their kids, and keep their children engaged and stimulated.

They're scouring the internet for the safest, best, most cost effective crib/stroller/bike. They're analyzing the household budget to trim excess and make room for extracurriculars and college savings plans. They prepare three balanced meals a day for their kids. They somehow manage to keep their kids and homes clean and safe.

With small kids they play games so their brains develop properly, shower them with attention so they don't develop emotional attachment disorders, take them to parks and activities to get exercise, supervise play dates so they learn proper social interaction and read to them.

Older kids need help with homework so they maintain a decent GPA and get shuttled to as many valuable extracurriculars as possible so maybe they can get into a decent college one day. They need supervision so they don't end up pregnant or on drugs. They may be resentful and rebellious but you persevere, enforcing rules and checking in and meeting their friends' parents and not being afraid to embarass them - or yourself - in the process.

Comparison
To me the Model Employee sounds like the much easier job! Both can consume 100% of your attention and energy, but the Employee has more tangible rewards - respect at work, recognition in the way of bonuses and promotions, and the security of a benefits plan and salary.

The Model Parent doesn't have as much control along the way or security in the outcome of his or her efforts. Of course you CAN be a parent and work at the same time - millions of people do. But I think we can all agree that it's impossible to reach your full potential in either capacity when trying to balance your time and focus in both areas at once.

No Such Thing As Work-Life Balance?

theworldofwealth@gmail.com (MEG) — Mon, 13 Jul 2009 17:05:00 +0000

A generational catch phrase if there ever was one, the "work-life balance" is currently discussed at length in books, articles, seminars, universities, and even in company policies themselves.

Men and women alike are beginning to recognize the importance of creating a "work-life balance," but appreciating the concept and implementing it on a daily basis are two very different things, especially if you are pursuing a traditional corporate or professional career which requires you to be away from home for 8+ hours a day.

Consider these words from former General Electric Co. Chief Executive Jack Welch in a recent Wall Street Journal article:

Welsh has some blunt words for women climbing the corporate ladder: you may have to choose between taking time off to raise children and reaching the corner office.

"There's no such thing as work-life balance," Mr. Welch told the Society for Human Resource Management's annual conference in New Orleans on June 28. "There are work-life choices, and you make them, and they have consequences."

Mr. Welch said those who take time off for family could be passed over for promotions if "you're not there in the clutch."

First of all, we should recognize that Welsh's comments apply to both men and women - she OR he who chooses family over work on a regular basis is not likely to be the one promoted fastest or farthest.

The hard truth of the matter is that you CANNOT be a model employee and a model parent at the same time. You can't be fully present and dedicated and engaged to your job AND to your kids at the same time. You can't plan appropriately and put in enough time and dedicate your best energy to your job AND to your kids at the same time.

IT IS RENTED! New Tenants Moving In

theworldofwealth@gmail.com (MEG) — Fri, 10 Jul 2009 21:34:00 +0000

FINALLY, after two long months of toiling, I have officially leased the vacant unit in my duplex. Technically I only toiled to rent it for about 6 weeks, but I lost out on two solid months of rental income (May 15 - July 15).

I am really excited about the couple who finally rented it, and I think they will be a much better fit than the other folks who showed interest along the way.

It's a husband and wife, middle aged, steadily employed, and very excited about living in my place. They've been in an apartment and miss having a yard and a garage. The woman has taken to giving me big hugs, which seems weird but fits her big shining personality. I'm sure they'll get along well with the neighbors.

The woman teared up when she told me the story of how they toiled for years and finally bought a house and then lost it when her husband fell ill and couldn't work last year.

Their credit was ruined and she was so afraid they wouldn't qualify to rent my place. I kept assuring her that bad credit scores alone wouldn't disqualify them (past evictions and unverified income are the main red flags I look for). She hopefully gave me a deposit check anyway when I met her this morning to take her application.

When I called to tell her they'd been accepted she exploded with delight and said I was like her own little angel (a description she later repeated when meeting my other tenants). When I met her just now to sign the lease and hand over the keys he gave me another huge hug and kept gushing about how wonderful and "compassionate" I am.

I was a bit bemused, but I couldn't help being flattered. I'm just really glad they love it and are happy to call it home. And that they seem very willing and able to pay me RENT.

Why I Should Pass the CFP Exam

theworldofwealth@gmail.com (MEG) — Thu, 09 Jul 2009 20:43:00 +0000

In my last post I discussed some of the frantic warnings I'm beginning to hear about how difficult the CFP Exam is, how low the pass rates are (53-56%), and how much preparation is required (300 hours recommended).

To cheer myself up, I decided to come up with a list of reasons why I should pass the exam - keeping in mind that I have yet to begin to prepare for it in earnest.

1. I am taking the educational courses in one year leading up to my exam. Most CFP hopefuls take two or more years to complete the educational component, putting them at a disadvantage as concepts fade from memory. In addition, many facts and figures change from year to year (particularly with regard to tax and estate planning), so what was learned 2 years ago may no longer be relevant.

2. I will take an Exam Preparation course (probably from Kaplan). Those who take review courses have a much better pass rate on the exam (companies admit there is no unbiased way to calculate their pass rates, but averages exceeding 80% have been reported). These prep courses teach specific strategies for taking the exam, in addition to providing a study plan for pointedly reviewing the actual information to be tested.

3. I'm taking the required educational courses at a well renowned university. The University Program at which I am completing the educational component boasts that over 85% of their graduates have passed the exam on the first try (although they don't have very many years worth of data yet, and most of their graduates take a review course as well). Many exam takers do their review courses online or at institutions which don't offer great professors or a strong guided curriculum.

4. I am a good test taker. I have no excuses along the lines of "I have ADD" or "I have dyslexia" or "I'm just not good at taking tests." I have always been a good test taker, the kind who was irritated to have her concentration broken with the mandatory short break during the SAT exam. I can sit and focus and read quickly and analyze swiftly and generally score higher on standardized tests than my general academic performance would otherwise warrant.

5. I have plenty of time to prepare. I have always been prone to cramming for tests and procrastinating, but I have 4.5 months before the CFP exam. If I start now I have more than enough time to establish a thorough study plan and execute it.

CFP Exam Looms as Courses Near Completion

theworldofwealth@gmail.com (MEG) — Thu, 09 Jul 2009 20:13:00 +0000

I will be taking the CFP Exam in November, and I'm starting to dread the preparations I'll need to make between now and then.

In order to sit for the 2 day long CFP exam, you first have to complete 7 required courses. Some universities offer a 2 year program, but I enrolled for an accelerated track so I could have all the courses done in one year. It's been quite a time commitment, but the months have flown by. I can't believe it's already been nearly 10 months since I began my CFP program.

Last fall I enrolled in my first two classes - Fundamentals of Financial Planning and Investments. In the first quarter of this year I completed two more - Principles of Risk and Insurance and Retirement Planning and Employee Benefits. In the first part of the summer I completed Tax Planning.

Now I've begun my last two 11 week courses - Estate Planning and Financial Planning Strategies & Case Study, in which I assume we'll learn to put together all that we've allegedly learned.

The time commitment has been a drag (and I still can't figure out when/how to eat dinner when I have class from 6pm to 9pm after work), but the classes haven't been that difficult. I quit doing all of the required readings during my first quarter and barely commit any time to studying outside the 6 hours a week of class time.

I have managed to make an A or B in each course so far, and I'm sure these last two will be no exception. But that doesn't mean I'm prepared for the CFP exam.

As we near the end of our courses, the professors and other students have begun spreading horror stories and warnings and tips and rumors about how hard the exam is, how low the pass rate, how many hours must be committed to exam prep outside of course study (300 is the going recommendation), and so on.

"Have NO LIFE outside the CFP!" seems to be the mantra. Forget your social life, forget your family, put everything on hold, you will have no life for the next four months. One professor kindly assured us that with the proper preparation we could all pass it the first time just like he did - then he told us that he completed over 4,000 practice problems in preparation.

I am wearily concerned in the face of all this. I am certainly not ready yet for the exam, and I hadn't really planned to start the intense study part until the month or so before the exam. Now I'm thinking I might need to reconsider my strategy...

I Have Two Years of Mint Data!

theworldofwealth@gmail.com (MEG) — Wed, 08 Jul 2009 19:47:00 +0000

I finally have two solid years of financial data recorded on Mint, which means I can compare year over year data and more thoroughly analyze and understand my spending.

The data is not pleasant. I DID have a significant increase in income over the last two years, but it hardly justifies the nineteen percent increase in overall spending in Year 2 (see below for details).

I actually decreased spending in a couple of categories (travel, giving, utilities, and "other"), but every other category increased - and shopping and entertainment both more than doubled! I already wrote about my horrifying food and dining spending, which increased 41% in Year 2 on Mint.

The worst part is that I was spending freely in Year One and should have decreased my spending from there - my Year 2 spending was just outrageous!

A few highlights:

Home (incl utilities/cable/internet) increased from $17,686 to $18,051.

Food & Dining (incl bars & alcohol) increased from $6,577 to $9,297.

Shopping increased from $4,191 to $8,260.

Travel decreased from $4,907 to $4,587.

Giving decreased from $3,854 to $3,559

Health & Beauty increased from $2,058 to $3.243.

TOTAL SPENDING increased from $44,319 to $52,792.

The Good News-
Despite my reckless spending, I have managed (thankfully) to continually contribute at least 10% of my gross income into my Roth 401k. I've only been with my company for three years, and my 401k is worth almost $15,000 today, despite the steep market declines over the past year.

I also picked up 2 rental properties in the past two years (none of my investment real estate spending is reflected in the Mint figures).

-But It's Not Good Enough
While my savings have not decreased in spite of real estate start up costs, they also have certainly not increased - despite my best laid plans year after year. With 2 rental properties I need liquid reserves more than I need retirement savings at this point. I put a big chunk into it every month, but over the course of the year I dip into it to pay for shopping sprees and vacations.

The Plan
Obviously some of my current spending needs to be redirected to my EF. "Shopping" and "Travel" (which averages nearly $11,000 a year) should be slashed by a third. Food and dining will be cut by 20% (read about my food and dining budget here).

That should free up $6,000 for my emergency fund over Year Three, putting me comfortably into the "6 months of expenses" savings zone.

Oh What A Beautiful Morning...

theworldofwealth@gmail.com (MEG) — Fri, 03 Jul 2009 14:25:00 +0000

This morning I had my clothes laid out, my bags packed, and everything ready to start the day right. I just have to get through one client meeting, and then I'm free as a bird on vacation!

The first hour went by smoothly as I got ready, humming along with my iTunes. I didn't have the heart to make breakfast though, because my sister had thoroughly cleaned the kitchen the night before in preparation for her BF to visit this weekend while I'm away (I'd planned to saute mushrooms and tomatoes and put in an omelet).

Then I couldn't find my keys and had to drag her out of bed to help; she'd taken my car to run to the store the night before. It took us 10 minutes to find them, and I was starting to sweat with anxiety - and because it was already 87 degrees before 9am.

I raced to work in great traffic conditions, and even remembered to deposit a check from one of my tenants - the lone payment so far this month. While I was at the teller stand one of my coworkers came up behind me and pointed out that I have a rip in the back of my shirt. My $185 shirt that I love and that I just bought earlier this year.

I was impressed with myself as I nonchalantly reached back to feel it, thanked him for letting me know, and joked that it was a good thing I have my whole suitcase in my car! Incidentally, in this situation it also paid off that this married man is always checking me out. I even muttered that my sister had worn this last and I'd have to get on her about it (a lie, which I have no idea why I told).

So there I am in the 90 degree heat, standing over my open trunk and suitcase and realizing that - surprise! - I have not packed any work appropriate shirts for my long weekend in Florida. I settled finally on a black Lacoste tee (paired with my yellow and white skirt and white flecked with charcoal python heels).

I looked good, but it's not exactly the kind of look I needed to go meet a new elderly lady client in her home. I breezed back into work and, in response to the receptionist's smile / raised eyebrows, started belaboring my situation. Should I go home to change? Tell the client what happened? Just act cool like I dressed casual on purpose?

Then she pulled out a zip up black cardigan from behind her desk! I hesitated only for a second and then accepted it graciously. It fit me perfectly and although I might literally die in the 93 degree heat, I am very grateful. In fact, when I popped in to say hi to my boss, she exclaimed "you look so cute!" I laughed as I told her how I managed to throw the outfit together between what was in the trunk of my car and what I could borrow from coworkers.

Crisis averted. Now if I can just get through a totally unnecessary meeting with a woman who is not even my client and make it to the airport on time without melting in the now 95 degree heat (which will very shortly rise above 100 as it does every day now) I will be home free!

To Florida for Five Days

theworldofwealth@gmail.com (MEG) — Thu, 02 Jul 2009 21:34:00 +0000

I will be out of town and far away from any computer screen for the next five days, so I apologize in advance for a slight lull in blog posts.

I plan to come back with a tan and slightly enhanced tennis skills.

In addition I hope to be well rested, to have read at least one whole book, and to have somehow balanced some quality time with all of my family and friends who will be in the vicinity.

On a financial note, there will be a $5,000 shift in my balance sheet during this trip; I'll be making a $5,000 loan payment to my grandfather in person.

Other than that the trip shouldn't affect my finances much. I paid for my flight months ago, and between mooching off family for the majority of my meals and not spending any more money than usual going out, it shouldn't affect my budget at all.

Happy 4th of July!!!

Time to Slash Outrageous Food & Dining Spending

theworldofwealth@gmail.com (MEG) — Thu, 02 Jul 2009 20:49:00 +0000

I am hereby officially attempting to limit my food and dining spending - which includes fast food, coffee shops, restaurants, bars & alcohol and groceries - to $600 a month.

This might seem like an easy feat (and it should be), but during the first half of this year I have spent an embarrassing $893 per month on average in that category. $893 a month! On consumption. How can this be?!

My restaurant sub-category accounts for 44% the total. After estimating that half of that is really going towards alcoholic beverages and adding in the "bars and alcohol" subcategory, I calculate that exactly 40% of my food and dining spending has been on alcoholic beverages alone!

Now I don't consider myself a lush (all evidence to the contrary), but I have allowed myself to get used to much too expensive habits. A $20 bottle of wine here, an afternoon of $10 margaritas there, and suddenly I'm spending over $350 a month on alcohol!

Absurd. I'm way to cheap to accept that kind of data. So my total consumption of all food and beverages shall not cost more than $600 a month from this day forward!

Incidentally, this new consumption budget correlates nicely with my goal to lose a few pounds.

It should be relatively easy to slim down my spending and my waistline without even really changing my lifestyle. I plan to:

Simply pass on that third $10 martini or $8 glass of wine whenever I go out. If I do that three times a week I've saved $120 and over 1200 calories with virtually no effort!

Eat at home two extra nights per week rather than picking up a $10 salad on the way home from the gym. Yes I'm tired, but if I plan ahead I can have a dinner ready to easily prepare at home and save $12 a week or $50 a month.

Order appetizer portions whenever I dine out. I'll save roughly 30% on calories and on the bill. Estimated savings $65 a month.

Suggest cheaper dining options when I go out. There's no reason to have a midweek lunch at Palomino's when Cafe Express will just as easily suffice. And choosing Tex Mex over sushi once a month will save me $15 right there!

There are a dozen other ways I could cut my consumption spending, but these simple actions should get me under the $600 a month mark with very little effort. Once I master this I can move on to more advanced food planning budget ideas.

Tenant Offers to Pawn Items for Rent Money

theworldofwealth@gmail.com (MEG) — Thu, 02 Jul 2009 14:43:00 +0000

I got a phone call this morning from a tenant who owes rent as of today. I told him earlier this week that I wanted to meet him today to collect the rent before I leave town, and he said he would "work on it," which made me wearily suspicious that he may not have the money.

Naturally, I was right. He told me today with a shaking voice that he was doing his very best but that he can only give me $300 today (he owes $1,125). He started to ramble about how he asked his boss for an advance to no avail, how he could try to "pawn some stuff" today to get the rest...

At that point I cut him off. I told him my concern is that if he's talking about pawning stuff to pay this month's rent, then I am worried about their long term viability as tenants. How are you going to pay next month if you have to sell your possessions to pay this month?

He explained that his wife goes back to work this month so going forward it should be no problem. He also reminded me that they have never paid late and used to pay early when she was working (which is true, which I appreciated). I know his wife has had some serious medical problems in the last few months (she was pregnant, she miscarried, and there were complications that had her in the hospital for nearly a week), and I was very relieved to hear that she's going back to work.

He went on about how he gets paid again the 10th and will drive the money right to me, and I interrupted his panicky ramble again to tell him that would be fine just this once since they've always paid on time before, and that the late fee is $50. He said I can expect him to pay $100, and I was touched but told him not to worry - the fee is $50 and as long as I get the rent by the 10th I'll be happy.

I've never been thanked so earnestly for anything in my life. You'd think I just saved the guy's first born child. *Sigh* What a lot to deal with before 9am in the morning.

Obesity Continues to Rise, Medicare Braces for Cost

theworldofwealth@gmail.com (MEG) — Wed, 01 Jul 2009 16:55:00 +0000

The latest obesity rankings are in, and "not a single state shows signs of slimming," according to the Associated Press. The percentage of obese adults rose in 23 states and declined in none.

What's worse, in every single state "the rate of obesity is higher among 55- to 64-year-olds — the oldest boomers — than among today's 65-and-beyond." That means a big increase in obese Medicare patients is looming, which could spell disaster for the already financially crippled program.

According to the article, the average obese person costs Medicare an additional $1,400 to $6,000 per year. And contrary to previous studies which suggested that obese people may actually die sooner and cost the system less over their lives, new data indicates that "they live nearly as long but are much sicker for longer," requiring much more costly treatments along the way.

It seems to me that our "health care crisis" is really a "health crisis" - and more specifically it may be a "fat crisis" since being obese (or even overweight) can be a root cause of the myriad of health problems that plague Americans and our health care system.

To be sure, being fat isn't technically the problem - many fat people are healthy just as many thin people get sick - but the fact is that obesity is a direct cause of a myriad of health conditions and other problems, and there are quite frankly better things our tax dollars could be going towards besides dialysis treatments and knee replacements for millions of obese seniors.

If Americans as a group would shape up a little bit, our health care crisis may just solve itself. There is more than one way to lower health care costs - we can authorize the government to take control and use its massive scale to force doctors and drug companies to lower their prices (like the insurance companies and Medicare currently do), or we can all just get a bit healthier and require fewer treatments and drugs.

Of course that is much easier said than done. Any ideas?

College Degrees Worth Less and Less

theworldofwealth@gmail.com (MEG) — Mon, 29 Jun 2009 19:18:00 +0000

As with many things in life, what people tend to get out of college is in direct proportion to the time and energy they put in.

But even for those who study hard, take more classes than they have to, utilize resources such as the campus career center and spend the rest of their time being involved on campus and making connections that will hopefully last a lifetime, the value of a college degree is decreasing steadily.

This is particularly true when the value of the degree is compared with the cost of obtaining one. The cost of a college degree continues to increase, despite wider access to information and resources. Without leaving your bedroom you can find university course schedules from Google, purchase textbooks on Amazon, download lectures from iTunes, and join an online chat discussions with students and professors from all over the world - all for a small fraction of tuition prices others pay to do the same from their dormrooms.

In his article "Is a College Degree Worthless?" Jack Hough from SmartMoney argues well that the problems with our education system aren't just those of rising costs:

A student who secures a degree is increasingly unlikely to make up its cost, despite higher pay, as I'll show. The employer who requires a degree puts faith in a system whose standards, you'll see, are slipping. Too many professors who are bound to degree teaching can't truly profess; they don't proclaim loudly the things they know but instead whisper them to a chosen few, whom they must then accommodate with inflated grades. Worst of all, bright citizens spend their lives not knowing the things they ought to know, because they've been granted liberal-arts degrees for something far short of a liberal-arts education.

The author does not argue against higher education, mind you, but rather of the degree system as it stands in America. He describes elite universities which have evolved into "machines that cull the bright from the dull and charge mightily to brand them for success -- which these students would have achieved anyhow, because they're bright."

He argues that we need a national, independent standard for certifying what students have learned, similar perhaps to the comprehensive AP exams given to high school grads with which students can obtain college credits in various subjects.

The system must change before students are made poorer, society grows less equal, the bright are left ignorant and "college" comes to mean a four-year pajama party intruded upon by the occasional group discussion on gender studies. The answer is to relieve schools of the job of validating knowledge and return them to a role of spreading it.

He advocates "knowledge transcripts" which could be continually updated much like a resume or credit report, regardless of where a person learned the information or how much they paid for it. What would these standardized, independent reports accomplish?

Employers would have better proof of what students knew. Policymakers, too. Students wouldn't pile on debt. They wouldn't be misled by a college degree into believing they knew more than they did. They'd become true stewards of their own lifelong education.

A grand vision indeed.

I'm Going to Win the Lottery!

theworldofwealth@gmail.com (MEG) — Thu, 25 Jun 2009 20:07:00 +0000

I bought a lottery ticket today. I have only done that on a few occasions in my life, and I'm not exactly sure what prompted me to do it again now. Probably fate, or divine intervention.

The chances of winning the lottery aren't very high, but they increase tremendously upon purchasing a ticket. :)

During my 7 hour roadtrip to see family this past weekend, I spent a solid hour pondering what I would do if I won the lottery. This isn't something I frequently wonder about, but I was bored out of my mind and probably saw a billboard that sparked it. Anyway, I wasn't dreaming of what I would do with the money - I never really got to that - but literally what I would do after finding out.

To whom would I make my first phone call?
(A tax attorney, or to several key people to get a referral to a good tax attorney, preferably one who has dealt with lottery issues.)

Would I tell my friends, family, blog readers?
(No, parents only at least at first, and I'd have to start a new blog to ensure total anonymity.)

Where would I put the money right at first?
(I'd consult my tax attorney about how and where, but in general it would go into cash while I research my options for the better part of the next year).

This last question is where I got stuck, and without resolving it I couldn't move forward to the fun money fantasy part. I kept debating - with all the intensity of actually having to decide - with which institution to start a new financial relationship, whether to go in person or do it all electronically, whether I would go with TIPs or a CD ladder or a high yield money market fund, and how to get the proper advice without getting roped into expensive relationships with very many brokers and advisers and attorneys.

I have a vague awareness of how nerdy/crazy this makes me seem.

Why I'm Going To Win
Anyway, I finally made it home, but the thought of it has still been nagging me. My horoscope one day this week (which I occassionally read online at work) had a lottery reference, and then I think I had a dream about it...

Today when I found myself standing in line at the gas station, the inspiration struck me and I was reminded: I should buy a lottery ticket!

I knew the jackpot was probably small, and I should plan out when and where to buy the ticket, and I wasn't in the mood to pick numbers - and I always pick my own numbers. Plus when I looked at the lottery section there were like 6 different games to choose from.

But I felt like I had to - I couldn't be struck with a great idea like that and then just walk out! After staring at all the options for a few minutes, I went to the cashier and said carefully that "I'd like to buy a lottery ticket." He mumbled a question in what could have partially been English, and I nodded with no idea what game I was buying. Then he said "cash only" when he saw me reach for my debit card, and my face fell - I never carry cash.

Then I looked, and I actually had $1 in my wallet. I have no idea where it came from, but was sure it wouldn't be enough. I asked him how much the ticket was, and he said "one doller." I brightened instantly and handed it over. Then the cashier said "good luck" and foreshadowed my success with as much certainty as if you'd seen the exchange in a movie.

As I walked back to my car I looked at the ticket and saw the cash value jackpot is over $11 million! After taxes that's around $5 million, which is the same amount I was working with when doing my analysis in the car that day.

So anyway, I'm pretty much going to win for sure.

My New Savings Plan

theworldofwealth@gmail.com (MEG) — Thu, 25 Jun 2009 16:50:00 +0000

My current savings plan isn't working as well as it should, as I discussed in a recent post on savings accounts. Currently I have one savings account, I deposit a huge chunk of money into it each month, and I pull money out regularly for everything from annual property taxes to shopping sprees and vacations.

Therefore my "emergency fund" never really grows, and I don't track my progress - or lack thereof - towards any specific short term savings goals.

After asking for reader input, I've decided to open an INGDirect savings account and divide it into the following sub-accounts: Giving, Fun (i.e. Travel and Shopping), and Car. I will keep my Vanguard Prime Money Market fund as my Emergency Fund. and for Irregular Bills - namely property taxes and insurance premiums.

I'll start July with 3 months of expenses in my EF (after taking out a chunk to make a loan payment to my grandfather) and $1,000 in Giving, but I'll be starting from scratch in Fun and Car (I've already spent my Fun budget for the year anyway).

The primary tenants of my budget will stay the same - 10% of my salary goes for retirement and 10% for emergencies. That is never meant to be touched, but the rest of my "savings" is really money set aside to be spent sooner or later.

Here's the plan:

Save 10% of my salary for Emergencies (VGPMM).
Additionally, save exactly the amount needed monthly to cover annual property taxes and insurance premiums (VGPMM).
Save 5% of my salary for Giving (ING).
Save 3% of my salary for a future car purchase (ING).
Save 2% of my salary for Fun (ING).

In case you're curious, this comes out to the following savings per month from my paycheck: $500 for emergencies, $388 for taxes/insurance, $120 for car, and $80 for fun.

I know what you're thinking: $120 a month isn't going to buy me much of a car, even if I save for years, and $80 a month falls far short of the current $500 a month I'm spending on shopping and travel (annualized).

Ah, but those savings figures are only from my paycheck. I do have other sources of income. These include a bonus (payable monthly), annual tax refund, periodic monetary gifts (Vegas trips with grandmother, holidays), and other small trickles like amazon sales , blog income, and prosper payments. In the past I was simply spending or saving that money with no plan, but not anymore!

Here's my plan for Irregular Income:

70% will be saved for Fun (ING).
20% will be saved for Car (ING).
10% will be saved for Giving (ING).

I'm most excited about this part of my plan. Using most of my irregular income (namely my bonus) for fun will motivate me to stay focused and work harder at my job. Basically, I can't shop or travel unless I am earning a bonus!

Currently I am taking home around $500 a month in bonus, and that figure should really never dip below 10% of my salary (unless I'm really performing poorly at work, in which case I'll have bigger problems than no travel fund).

So when you combine my regular and irregular savings, according to my calculations I should be able to save the following amounts each year:
$6,000 for Emergencies
$4,225 for Giving
$8,140 for Fun
$3,497 for Car
In addition I'm investing $6,000 for Retirement in my 401k and the rest is going to bills or regular monthly spending.

New Tenant - Almost!

theworldofwealth@gmail.com (MEG) — Thu, 25 Jun 2009 16:36:00 +0000

I was this close to having a new tenant in place. I showed him the place several days ago, he returned his application yesterday.

He is willing to pay the full deposit and the rent I'm asking, and he wants to move in this weekend.

So when I called him this morning to let him know he's been approved, I was disappointed when he asked me if we could postpone meeting until next week to sign the lease. He said he's on his way to the emergency room because his sister was just in a car accident.

I got the feeling he was headed out of town to see her - I can't remember whether he said that or if I put it together because he listed all his family members on the application and they all live in other cities.

I expressed a professional level of concern for his sister and then asked him if there's any way he can pay the deposit before next week. I explained that there are other people who want to see the unit and that typically I don't quit showing it until I have a deposit in hand.

He said he would see what he could do and call me back later; maybe he can pay me in the morning. But at the latest he wanted to meet before July 1 (Wednesday) so he can move and start the new lease by then.

Ugh. So the bottom line is that I have to keep showing the place and I still don't have a definitive tenant. Who knows what could happen with this guy?

I was SO looking forward to canceling my other appointments with prospective tenants; I am SO tired of driving out there to show this place over and over.

Still No Tenant - Cash Getting Tight

theworldofwealth@gmail.com (MEG) — Tue, 23 Jun 2009 19:16:00 +0000

I still have no tenant in place, and my unit has been vacant for over a month now. Five weeks to be exact.

Of course I'm dealing with a vacancy at the exact time that my mortgage payment has gone up (due to increased property taxes) and the building inspector has mandated about $1,000 of maintenance expenses. I also took the opportunity to remodel the bathroom and have the carpets cleaned.

I've run through the slush money in my business checking account, and if I don't get somebody to pay a deposit by the end of this month, I'm going to have to take the mortgage payment out of reserves!

I still get calls daily, but people are either unqualified ("how many felonies is too many?") or are looking for something bigger/cheaper or they seem interested but never follow through with an application.

I've considered waiving the deposit requirement in exchange for a (markedly) higher rent payment. I've also considered lowering the rent if I don't get somebody in there soon. I'm showing it again this afternoon. Please let this person rent my unit!!!

Update on my Upscale Gym

theworldofwealth@gmail.com (MEG) — Mon, 22 Jun 2009 19:06:00 +0000

It's been over a month since I joined my new upscale gym, and I have never looked back!

It costs over $130 a month (compared to the $44 a month I used to pay for a regular gym), but I have not had even a twinge of buyer's remorse. At first it was wishful thinking, but now I am relatively sure that this new gym is an impetus for real change in my lifestyle, my energy level and, ultimately, in my waistline!

I used to go to the gym an average of less than twice a week. Since joining my new gym I have more than doubled that and kept at it with relatively little effort. I actually look forward to going to the gym - a true first for me! It has become a habit, part of my day that I look forward to. I've even chosen it over happy hour a few times when I've had a bad day!

Although I haven't lost any weight yet I am still appreciating the benifits of regular exercise. In addition, I just like the feeling I get when I go. Going to the gym makes me feel strong, healthy, and energetic, but this one in particular - like any upscale spa or designer boutique - also makes me feel pampered, composed, and worthy.

Also, there is plenty of good eye-candy!

Requesting Reader Input: Savings Accounts

theworldofwealth@gmail.com (MEG) — Mon, 22 Jun 2009 18:00:00 +0000

I am considering a change in the way I manage my savings.

Currently I have one savings account - the Vanguard Prime Money Market Fund. I use it for many purposes:

My Emergency Fund.

To pay property taxes and insurance premiums which are due once or twice a year.

To pay for sporadic travel and shopping expenditures, which I do not provide fro in my monthly budget.

For gifts and charity.

So the end result is that I deposit a huge amount into my VGPMM account each month - over one full paycheck - but part of that "savings" is designated for insurance and taxes, while much of the rest is taken out irregularly for discretionary expenses.

In short, my savings account is pretty much just treading water. It grows a lot in the first part of the year and decreases a lot over the second.

Combining all forms of "savings" in one account fails to limit me in my travel and shopping budget. When the account balance swells over my 3-6 month EF threshold, I don't think twice about dipping in for something I want.

Another problem is that I'm not deliberately saving for midterm goals such as a car or a wedding.

I think the solution is to open up at least one other savings account. My VGPMM will be my emergency fund, and I will contribute to it evenly at least until I reach 6 months of expenses. I could also continue to use that account to save for taxes and insurance (which I'd put in monthly on top of the EF savings). I would only dip into it to pay taxes/insurance or for emergencies.

I'm considering ING Direct for my second account because I've heard you can split it up into sub-accounts for specific goals. That way I can have a shopping/travel subaccount, a car subaccount, and so on as I come up with other short or mid term goals.

Does anybody have any experience or advice regarding ING Direct, or other suggestions or insights?

Benefit From The Recession?

theworldofwealth@gmail.com (MEG) — Tue, 16 Jun 2009 03:11:00 +0000

Is it possible to benefit in a time of financial hardship for many others? Of course. Is it potentially insensetive and offensive to talk about it? Apparently.

Kim Peterson at MSN's MoneyBlog, along with many commenters, has bashed Elisabeth Eaves at Forbes for her column The Recession is Great. In her article Eaves talks about all the various ways that this recession is perhaps "a purifying fire," "an opportunity for change," and in general, "a good thing."

I happen to agree with Eaves. Yes, many people are suffering and have no money to spare to take advantage of all the good deals abounding. But that doesn't change the fact that, as Eaves says, "if your own income hasn't plummeted, the getting is good."

She also rightly points out that:

Credit worthy borrowers have access to unbelievably good rates and terms right now.

Property prices and market rents have plummeted in many places, putting buyers and renters back in the power seat.

Those in the service industry are serving again (that girl at your favorite shop and the local car salesman are likely far less snooty these days)- and those doing a bad job are no longer able to overcharge.

There are amazing deals to be had if you are looking to buy a car, electronics, jewelry, women's clothing, or a vacation.

If you've been laid off, it's a chance to re-evaluate your career path and goals. If not, it's a chance to seize new responsibilities at work and be first in line when raises come back.

It's easier than ever to gracefully decline spending money on anything from a cousin's out of town wedding to an aquaintence's invite to dinner.

Personally I have benefited from the recession in several ways.

I finally got that new flat screen HDTV that I've been eyeing for nearly 3 years - complete with all the fixin's, with no interest due for 18 months, and for only 60% of what I was planning to spend.

A property next to one of my rentals was listed as a short sale, and my offer was accepted. If the deal goes through I'll have an identical property to one I already own, at less than 80% of what I paid a year ago.

When I went to Vegas earlier this year - and when I go back in July - it is much less crowded, they are giving away many more freebies, and the table minimums are lower.

I've noticed many more restaurant deals around town - bottomless drinks, extended happy hours, buy one get one free offers, etc. Plus my friends have quit going out as much. So I'm saving a lot of money on dining out and entertainment.

What about you? Have you benefited from the recession at all?

I Paid Off All My Credit Cards!

theworldofwealth@gmail.com (MEG) — Tue, 16 Jun 2009 03:08:00 +0000

It turns out that there really is a difference, psychologically at least, between actually having NO credit card balances and having a few balances at 0% that you could pay off anytime with cash reserves.

I've carried a balance on at least one credit card for the last year. Can you believe it?!All balances were at 0% - I've never paid a penny in interest on a credit card - and I convinced myself that this sort of "credit card arbitrage" was preferable to paying cash that could otherwise be earning interest in the bank.

My new opinion is that the interest you earn isn't worth the time spent organizing and managing one's credit card accounts. In addition this practice can and eventually will encourage even the most disciplined personal finance blogger to spend more money than she otherwise would.

From February 2008 to January 2009 I carried a $3,000 - $5,000 balance on a business American Express Card. I paid it off just before interest was to begin accruing. The reason I opened and used this card was to renovate my new rental property which desperately (and unexpectedly) needed repairs and maintenance just after I bought it.

From September 2008 to just last week, I carried a $3,000 - $4,000 balance on an HSBC card. I have all my monthly bills put on that card while I "pay" them into my savings account each month instead of paying off the card.
Then - with great regret as it turns out - I applied for yet another card two weeks ago in order to "take advantage" of their 18 month no interest offer on a new TV and DVD player!

In addition to this, lately I've been in the habit of using my credit cards to make regular purchases and "taking advantage of" (aka "needing") the entire grace period before I could pay off the balance! Shocking, I know. And shameful.

The worst part of it all is that I have been thinking I could afford things because I tended to look with pride at my fat savings account balance while mostly ignoring the corresponding credit card balances in the liabilities column of my balance sheet.

Realizing that I would suddenly be wanting to apply for a mortgage loan, I frantically (and finally) pulled a chunk of money out of savings and paid off all my balances. Including the entire balance of my brand new credit card which I now wish I had never gotten.

Now I have a bunch of "empty" credit cards in my wallet and a much more meager looking savings account. My personal finance pride has been deflated somewhat, and I'm determined to get back to living within today's budget - which means not using credit cards AT ALL, not looking at annual figures at the expense of monthly ones, and not counting tax refunds and bonuses and gifts as savings when I'm spending more than I make on a monthly basis.

The Lesson: Don't play money games with yourself! You'll always lose. Save first, spend later, and eschew debt. Period.

How Should Airlines Handle 'Passengers of Size'?

theworldofwealth@gmail.com (MEG) — Wed, 10 Jun 2009 16:17:00 +0000

In Wide Passengers Don't Sit Well With Airlines, the Wall Street Journal discusses how various airlines deal with problems and complaints on both sides of the issue. Larger passengers feel discriminated against by being crammed into small seats or forced to buy two, and smaller passengers feel abused for having to share their seats with neighbors.

A few excerpts which outline what a few airlines are now doing:

United said it received 700 complaints last year from customers who had to "share their seats with their neighbor," said spokeswoman Robin Urbanski. With those complaints rising, the airline found eight other competitors had instituted "passenger of size" policies, and so United joined in.

If a passenger doesn't fit into the confines of his or her seat, United can force the oversized customer to leave the plane and wait for another flight with two empty seats side-by-side. If the traveler doesn't want to wait on the standby list for two empty seats, United will sell a second seat at the same ticket price the customer paid.

Southwest has had a similar policy since the 1980s. "Customers of size," in Southwest parlance, can book two seats online by repeating the passenger's name with XS as a middle name for the second seat. At check-in, the customer gets a boarding pass, a Reserved Seat document to block other passengers from the extra seat during open boarding and a form for a refund if the plane doesn't oversell and the airline doesn't bump passengers.

Some airlines require an extra seat for passengers who can't buckle up without a seat-belt extender, though most handle the issue on a case-by-case basis. Even when rules are strict, standards aren't uniformly enforced.

Frequent travelers and advocates for the obese would like to see airlines offer a few rows of wider coach seats and charge extra -- just as they do with rows of expanded legroom. "We're willing to pay for what we are rightfully using," says Peggy Howell, spokeswoman for the National Association to Advance Fat Acceptance. Buying two seats is a bad solution because of safety issues with seatbelts and comfort issues with armrests that don't fully retract, she notes. Plus, most people don't need two full seats.

Some 34% of Americans now meet the criteria for obesity, Ms. Puhl says, and weight discrimination is prevalent. Obese workers face wage discrimination, for example, research has shown.

But frequent fliers say the issue is real estate, not discrimination. If they buy a seat, they want the whole seat. "If people are so large or overweight that they can't get the armrest down," Mr. Marston said, "then these people should be required to sit elsewhere, pay for an additional seat or pay me for the part of my seat they are spilling into."

I often feel bad for overweight people I observe in airlines, stuffed into small seats between two armrests boring into their sides. The seats are too narrow at 17 inches - a Harvard study of trains in the 50's (way before the obesity epidemic) found that 18 inches should be the minimum acceptable seat width, but later planes were designed with a cabin allowing only 17-inch wide coach seats because they needed a narrower body to give planes the speed and range to fly coast-to-coast.

So do we require airlines to widen seats (which on many planes would require eliminating an entire column of seats), at what would surely be an enormous cost? Or should they offer a few wider seads for those who need them? Or should overweight people simply be made to pay for two seats or avoid air travel altogether?

Can Women Have It All? (And Should They Try?)

theworldofwealth@gmail.com (MEG) — Tue, 09 Jun 2009 22:52:00 +0000

Ginger at Girls Just Wanna Have Funds just wrote a great post on Having it All. And since I couldn't get her site to let me post a comment, I just had to link her post here to discuss!

Ginger, like me, believes that women can have it all - "just in staggared moderation." I think that's a perfect way to describe it. You can't do it all at one time, and you can't do it all perfectly either.

Developing a fulfilling relationship complete with a satisfying sex life, building a rewarding career, maintaining a nurtured spirit and healthy body, and raising healthy well-attached children all at once is as close to impossible as I can imagine. You might be able to do two things well at a time, but to be well balanced among all categories? Probably not. And I didn't even mention friendships or leisure or pets or ongoing education or a retirement portfolio!

We should all remember that none of us are entitled or required to "have it all" anyway! Millions of women all over the world would give anything for the chance to have any one of the following:

An education

A career

A loving, supportive, loyal husband

A healthy body and access to complete medical care

Resources to protect and nurture their children fully...

...or birth control

A decent enough wage to save money

Free time to relax or enjoy with friends

And yet countless American women may have almost everything on the list but consider themselves failures for still lacking one. (And let's be honest, even those lucky enough to have all this still render themselves incomplete because they don't have a "hot" body or a sizzling sex life or enough money to travel the world or some other fill-in-the-blank).

Commenter The Feminist Breeder on another fantastic post of Ginger's aptly puts it this way - "I don't think the feminists of the 70's realized that GETTING to do it all might mean HAVING to do it all."

An Interesting Brand of Sexism

theworldofwealth@gmail.com (MEG) — Tue, 09 Jun 2009 16:14:00 +0000

I have lately been prompted to think critically about an interesting new blend of sexism and sexual harassment. It is an interesting and relativley new phenomenon that I am sure many women deal with, react to, and participate in on a regular basis.

SEXISM
Sexism can take many forms and is firstly defined as "discrimination based on gender, especially discrimination against women." A more general, secondary definition is "attitudes, conditions, or behaviors that promote stereotyping of social roles based on gender." (source)

As you can see from the broader definition, sexism is so pervasive in our culture that it often goes unnoticed even to the women it most directly affects. While the discrimination brand of sexism is fading rapidly in our culture, anytime a person (or advertiser) displays an expectation, creates a situation, or makes a comment that underscores traditional gender roles, it's technically sexism.

SEXUAL HARASSMENT
Sexual harassment is more generally and readily opposed, being defined as "unwelcome advances made by an employer or superior, esp. when compliance is made a condition of continued employment or advancement." (source)

These days women are increasingly in positions of authority, and it must be noted that they are as capable of sexual harassment as men are. Still, because of sexism it is more often women who are harassed by men in our society. So what is it when the tables are awkwardly half-turned? When the woman is being sexually harassed, but not necessarily by somebody in a position of authority over her? It may still harassment, but it isn't the kind people are inclined to become outraged about (nor the kind you can sue for millions over).

AN INTERESTING BLEND
The interesting thing that we are experiencing now is sexism, less the discrimination factor, plus sexual harassment, minus any overt pressure to be compliant.

It's sexism because it tells us we should strive to be sexually desirable and bask in the glow of any male attention. But it (usually) no longer contains the blatantly offensive discrimination element a la "women are only good for cooking and sex and mothering."

It's sexual harassment because it puts us in an environment which involves unwelcome reference to our sexuality. It can involve flirting, inappropriate touching, relaying overtly sexual jokes or stories, belittling other women in your presence, and so on. But it is less likley to be done by somebody with any authority over you - in fact the offender may be your junior.

REACTIONS- THE PROBLEM
Now I will freely admit I have never been a women who fully opposes traditional gender role expectations. My parents did their best to bring me up a Southern Lady, and while their success level on that front is arguable in many ways, I do appreciate a sincere compliment and polite gesture by a well-intentioned male, in addition to supporting the preference that one's children be raised by a stay-at-home mother and other stereotypical gender roles (though I equally support a woman's right to education and a career too).

And while I think we can all agree that overt and deliberate sexual harassment is unacceptable and offensive, it is less frequently encountered than a more general and - dare I say it - innocent offense. This is why most women laugh off or ignore most forms of "harassment" rather than slapping very many guys in the face.

The problem then becomes that most women actually embrace sexism and do not really even oppose sexual harassment - except when it comes from an undesirable man! I have recognized this hypocricy in myself over the last week:

I recently called my (male) handyman to verify that he received my work order and see when he was planning to complete the work. As soon as I identified myself he interrupted me and exclaimed "Well hello there, beautiful lady!"

I took my sister to a retailer I frequent to have some alterations done, and the (male) store owner called me by a shortened version of my name, put his arm around me in a sort of a side hug as a "hello" and made a suggestive remark about another woman's breasts during my brief visit.

A tenant I was interviewing took to inappropriate flirting and advances, which you can read about here and here.

I was somewhat irritated and vaguely uncomfortable in the face of these encounters, but I brushed each of them with a laugh off rather than confronting or correcting my offender.

Why? I think the real reason I let it go - beyond the fact that I've been socialized as a female to avoid confrontation, to be polite, and to smile - is that these encounters only happened to be unwelcome!

If I were attracted to the handyman/shop owner/tenant - despite the fact that all three of these situations involved business transactions - I would have probably blushed and been flattered by their behavior rather than inwardly cringing. Okay, so the breast comment and the "lady" remark wouldn't have been appreicated no matter what, but you get my point. Furthermore, I bet all three of those men have gotten at least one positive reaction for every three or four women who ignore their behavior, so you can hardly blame them for trying.

Have any of you encountered this brand of sexism? Are you ever torn between being flattered by attention and offended by being viewed sexually? Do you hold men you like and men you don't to different standards of behavior?