Riscario Insider

Do Continuing Education (CE) Requirements Protect You?

noreply@blogger.com (Promod) — Sat, 13 Mar 2010 12:09:00 +0000

I invested in myself — in study, in mastering my tools, in preparation.
— Henry Ford

It's what you learn after you know everything that really matters!
— John Wooden

When you receive a professional designation, your studies aren't over. You'll face requirements for continuing education. The concept is fine. If you love your field, you'll keep your skills current. Without passion, will the whack of the stick motivate you?

The hassle comes when you're committed to learning but forced to prove it.

Different professions have different requirements. As an actuary, I'm required to have 100 hours of Continuing Professional Development (CPD) every two years. This gives more flexibility than requiring 50 hours per year. Say you're on maternity leave or a sabbatical. Besides, 100 hours sounds more impressive than 50+50. Maybe actuaries can market.

The 100 hours must include

Technical: 12 structured hours
Professionalism: 4 hours
Structured: 24 hours

So 76 hours can be unstructured, which allows self-study. This system is reasonable and gives actuaries leeway in judging what is suitable.

Some organizations which are much easier to enter mandate fewer hours but have full control over what qualifies.

What Qualifies?
The easiest way to get continuing education credits is by attending seminars.

Sit there half awake and earn credits as you lose hours from your life. Feel free to daydream: you're rarely tested for comprehension. If you'd rather sit in your jammies, study online. You'll be more comfortable but probably have to pass a test to show you were paying attention.

Are the tests tough? Try one from the CDIC, which insures bank deposits. Here's a description:

"This course is a simple “read and learn” program. The examination component is composed of 16 multiple-choice questions. The questions are based on material found in the course, many of which are word-for-word."

Some organizations require that presentations be certified and even charge for conducting their review. How counterproductive. This encourages trainers to recycle previously-approved presentations instead of developing new ones. Since the trainers are helping the members, why not treat them as allies rather than wallets.

Suppose you educate as a free public service. Would you eagerly hand over your intellectual property and then pay for the review? Not me. Let those lured by CE credits go elsewhere. That leaves more room for those who yearn to learn.

Self Reporting
Continuing education requirements get implemented in phases. First, the minimum requirements get established and members do their own record-keeping. Soon the records must be submitted to the organization, and probably input online.

Does mandated continuing education protect the public?

Do you trust self-regulation when the members vote on the minimum requirements? Government regulation is hardly a solution. Remember Canada's controversial gun registry? Costs rocketed from $2 million to $1 billion. Imagine if your investment returns zoomed like that.

When trouble arises, you invariably find the wrongdoer followed all the rules.

Ultimate Protection
The real protection comes from people who care. They continue to educate themselves to serve you better. You can get a sense of this informal education when you talk to them. Are they current on what's going on? Can they answer questions in a way that you understand?

If harm occurs, the courts can help but this gets expensive and time-consuming. The side with more money or better lawyers has the advantage. The profession often steps in to protect their members instead of the public. That's why we have incompetents treating us and teaching our children. It took six doctors to mis(treat) one toe. At least they left my other nine alone.

Another Threat
Some people have fake credentials. Fake institutions sell thousands of fake diplomas each year. These buyers needn't worry about continuing education. They have no education to start.

Links

Fraud U: toppling a bogus-diploma empire (Wired, Jan 2010)
Does mandatory continuing education really protect society from incompetent health professionals (academyprojects.org)
Six doctors (mis)treat one toe
How the CDIC protects your deposits (1 CE credit)
Looking back at the Firearms Act (CBC, Nov 2009)
Me an actuary? Seven questions from a student
image courtesy of Svilen Milev (Bulgaria)

Podcast 58 (5:28)

Direct download | Internet archive page

PS Even if you aren't forced to study, still study. If you won't invest in yourself, who will?

How To Find A Mentor For Free

noreply@blogger.com (Promod) — Sat, 06 Mar 2010 16:48:00 +0000

If I have seen further, it is only by standing on the shoulders of giants.
--- Isaac Newton

We get further with help. That's true for Olympic athletes and us. A coach helps you build specific skills. A mentor helps you build a better you. A mentor is more of a psychologist than a trainer. You set the agenda, typically.

The Ideal Mentor
The ideal mentor is

Free: giving back for what they've received, not taking from you
Compatible: you won't always agree but must be able to talk
Knowledgeable: have insights tailored to your situation. They are probably older but older doesn't always mean wiser.
Proven success: they have achieved what you want to emulate (ideally, more than more money)

A coach can also help, but a coach may not have succeeded. A coach is more of a teacher than a doer. Each has a role. You can have more than one mentor and more than one coach.

Know how to listen, and you will profit even from those who talk badly.
--- Plutarch

Yes, you can learn from flawed people if you're careful to avoid contamination from their bad elements.

Are You Ready?
To warrant a mentor's time,

be reasonable: Mentors have their own lives and issues. You can only ask for so much, so often.
help others: this is an ideal way to give thanks for what you've received
listen: before rejecting suggestions, reflect (which may take days or weeks or years)
act: apply what you learn to show progress
show you're worthy: how does investing in you payoff (not necessarily for the mentor; perhaps for your company, clients or society)

Can't Find One?
There are other ways to get mentored if you can't find a volunteer

Read books (e.g., from the library)
Read blogs for contemporary ideas, and participate by leaving comments
Listen to audiobooks (classics and current)
Attend group meetings (e.g., through Meetup but avoid the ones that are just selling)
Hire a coach, ideally one you have gotten to know through their blog

A book that's new to you doesn't need to be new to the world. You don't need to read the latest ones. There's great value in classics and they're usually available from the library without a waiting list. You can get mentored by people who died. Autobiographies and biographies can help you get inside the head of another. Books written in previous decades or centuries will show you how little we've truly changed.

When You're Done

Mentors move on and pass away. You might outgrow them.

Over time, you'll learn principles. You'll see the world though a new lens. You'll anticipate what the mentor would say. You'll think in new ways. You'll start cutting your own trail through the wilderness. You'll be ready to mentor.

Links

Are coaching and mentoring different? (coachingandmentoring.com)
How Seth Godin sparks your flame of insight
How to apply consistent persistent generosity (marketingactuary.com)
image courtesy of Thomas Mørkeberg (Denmark)

Podcast Episode 57 (4:20)

direct download | Internet Archive page

PS Avoid the word "mentor" because you might intimidate the person you're asking for guidance. There's a feeling of commitment. Instead, start by asking questions.

Happy Anniversary: Three Years of Blogging

noreply@blogger.com (Promod) — Sun, 28 Feb 2010 12:59:00 +0000

To succeed, jump as quickly at opportunities as you do at conclusions.

--- Benjamin Franklin

Riscario Insider is already three years old. The opportunity to write has resulted in this, the 156th post. That's about one per week. Hard to believe.

When you start, you don't know where blogging will take you or if you'll stick with it. I certainly didn't. I started as an experiment and then kept going. Habits form and so do reader expectations. This virtuous circle helps keep you going. You transform from a sprinter to a long distance runner.

Will you run out of ideas? Probably not. If you're passionate about your topic, writing de-clutters your mind and makes room for fresh thoughts. Just today, I jotted down how to pick a mentor and how to spot tricks that sales people use. Maybe those kernels will become blog posts.

It's easy to keep going if you love your topic and care about your audience. You'll then find the time and motivation to write. You'll find the right frequency for you. For me, it's once a week.

Successful?

Whoever says it doesn't matter if you win or lose, lost.
--- Unknown

There are different ways to measure success. In the beginning I thought I'd make a fortune from ads. I soon realized that a niche blog won't draw enough traffic to generate much revenue. So I went commercial-free. After all, you already pay generously with such valuable currency: your priceless attention.

I restarted ads a few months ago to help cover the costs of my online activities. Did you notice? The revenue may not warrant the aggravation to visitors. I'm not a fan of affiliate links either because they can taint your credibility. QRS is an amazing product. Click here to buy.

Your success in blogging comes in three intangible ways

generosity improves you: you become a better person when you're helping others
you learn: you look for clear, concise and memorable to communicate your messages
honing your skills: how can you lose by learning to write better?

What's New
I started podcasting on January 11, 2009 for the convenience of visitors who'd rather listen than read. You'll see the podcast embedded at the bottom of each post and all episodes on the Internet Archive. I also started using Twitter on February 19, 2009 (@riscario). There's usually a tweet or two a day.

The content continues to shift towards the wealthy. I wanted to write about risks facing average people (e.g., stagnant family incomes was the second post) but can't because I work primarily with the wealthy. Why write about what you don't know about? The insincerity would show. This blog is fact not fiction. Since writing about financial risks would bore readers (and me), there are detours. Some of the most read posts are technically off-topic.

Book
I keep getting asked whether I'm planning to write a book. There's certainly enough content that could be organized and expanded. A paper book is quite unlikely. I might prepare short free ebooks on selected topics.

Disappointments
I wish there were more reader comments. I know there are readers but for reasons I can't figure out, you aren't enticed to share your thoughts. That means there is no dialogue.

What's Coming
Riscario Insider is continuing as before. I'm planning to introduce more video for those of you who would rather watch than read or listen. Video would not be part of each post would be used to augment selected content. My goal is not to be on camera but to narrate PowerPoint slides. Video is the toughest medium for me because I don't have experience in editing but can learn the basics.

Bloggers really should have a series of posts written in advance. I have dozens of drafts on paper but they're not ready to publish. The consequence is that I generally write the post the day you see it. That allows the inclusion of latebreaking events but creates unnecessary time pressure. During my December sabbatical in India, posts were pre-written and published at scheduled times. This felt good.

Thanks for reading or listening.

PS What changes would you like to see? Your suggestions are always welcome.

Links

your favourite posts of 2009 and 2008
What's in a name? (the first post from Feb 18, 2007)
The pulse of content (Mitch Joel)
image courtesy of Helmut Gevert, Germany

Podcast Episode 56 (5:48)

Direct download | Internet Archive page

Comparing Camps: BookCamp, PodCamp and Personal Brand Camp

noreply@blogger.com (Promod) — Sun, 21 Feb 2010 22:57:00 +0000

These days you can go to camp even if you're not outdoorsy. That's great during a Canadian winter in February.

These camps help you learn, generally for free. No sales pitches. Here's how they work. Volunteers arrange the event. Sponsors donate space, refreshments and probably money. The speakers donate their time. In an unconference, if you don't like something you change it. If you want a session that isn't listed, add it. This democracy does not lead to anarchy. You feel like a part of the event rather than a mere attendee. I've helped put chairs and tables back in place at the end of the day.

Let's compare three camps

BookCampTO 2009
PodCampTO 2010
Personal Brand Camp 2 (2010)

These were all held in downtown Toronto.

BookCampTO 2009 [June 6, 2009 | University of Toronto]
This was my first unconference and I didn't know what to expect. The attendees seemed to be insiders in the book publishing world. This almost felt like an industry event. Maybe that's why this event was well-funded and even included a free lunch. The only cost was parking. This was where I first met social media rockstar Mitch Joel.

PodCampTO 2010 [Feb 20-21, 2010 | Ryerson University]
The sessions my son and I attended were run by passionate hobbyists. They focused on doing things cheaply. Example: don't spend $50 on a headset microphone because $20 will do. They were proud to be noncommercial.

The attendees were diverse and included many students. Few had their own podcasts, despite the ease of getting started. That's not a surprise. What's strange is how few listen to podcasts. Yet they still attended and very few left a session before the end.

Personal Brand Camp 2 [Feb 23, 2010 | Berkeley Heritage Event Venue]
This event is different because it's not open to the public. It's for students of the Humber College public relations program. I volunteered as mentor. The day ends with Third Tuesday where Mitch Joel talks about Your Personal Brand (sorry, all tickets gone).

Attendees here are goal-oriented. They want good grades and great jobs.

If you've never attended or volunteered at a camp, you're missing a wonderful opportunity. There may be events for other topics too. If not, you can organize your own. Please don't hold it where the bugs bite.

Podcast Episode 55 (3:38)

Direct download | Internet Archive page

Links
- PodCampTO 2010
- BookCampTO 2009 | How the plight of publishers and authors affects you
- Personal Brand Camp 2

PS BookCampTO 2010 has now been announced for May 15. Maybe I'll see you there.

What Happens When You Call 911 For A Medical Emergency?

noreply@blogger.com (Promod) — Sun, 14 Feb 2010 14:11:00 +0000

Hello? Operator?
Give me the number for 911!
--- Homer Simpson

I made my first 911 call last Saturday at 3AM for an ambulance. The process was underwhelming, which is good.

Virus

There's some virus going around. It's not H1N1. My son Jeevan's symptoms started Wednesday night: nausea, diarrhea and vomiting. Thursday morning, my wife, Sharmila, went to get electrolyte. We knew this helped after getting hospitalized for food poisoning while we visiting the Corvette factory in Bowling Green, Kentucky years earlier. That's another tale.

The drug store was filled with cosmetics and junk food but only had one bottle of electrolyte (children's apple-flavoured pedialyte). It helped. That evening I went to a 24-hour super-mega drugstore. They were out of liquid electrolyte!?! I got powder (eight individual packets), which was probably better.

On Friday, Jeevan was recovering. On Saturday, he was fine but Sharmila was tired. She rested most of the day but got worse. Around 3AM, she asked to go to the hospital with similar --- but more extreme --- symptoms.

911

I woke up Jeevan so he could get ready. I then called 911 for the first time. The operator instantly answered and asked if the call was for fire, police or an ambulance (maybe not in that order). I said an ambulance. She asked for the address and reason for the call. She asked probing questions and dispatched an ambulance. She reminded me to turn on the outside lights and unlock the door. Good tips.

I helped Sharmila get ready.

The Ambulance

Within minutes, the ambulance arrived with lights blazing but no siren. The two attendants setup the stretcher outside our door before entering. By now Sharmila was sitting on a chair in the living room. One attendant asked questions while the other administered tests. They determined that a hospital visit was warranted.

During this, firefighters arrived. The ambulance attendants sent them away since they weren't needed.

There are three hospitals near us but we couldn't automatically go to the closest because the condition was not life-threatening. Due to bad mobile reception, the Tester went outside to phone and soon found a hospital.

Jeevan and I followed in our car. Like the ambulance, we zipped through traffic at highway-like speeds but obeyed traffic lights. There was very little traffic at 3:30AM, which helped.

The Hospital

The hospital admission was quick (especially compared to airport security) because the ambulance attendants supplied most of the information. This is a big advantage over arriving on your own. Sharmila was put into a wheelchair and taken to a nearly deserted waiting room. Well-named. We waited nearly three hours. Diagnosis took a few minutes and then Sharmila was discharged with a prescription. She appeared to have the Norwalk virus, which might even strike the Winter Olympics. The hospital has been getting about 15 cases a night.

The Super-Mega Drugstore

The 24-hour drug store only had six tablets of pills that cost $21.97 each (plus a $11.99 dispensing fee). We needed 10, which meant a return visit. Instead of pricey medicinal electrolyte, the hospital recommended a sports drink like Gatorade. The cash register kept ringing in the wrong price and required a manager's override. Annoying at the best of times.

We got home around 7:30 AM. I'd been up since 7:00 AM the previous morning, a personal record I'm not eager to beat.

The Lessons

Health care has been labeled the biggest financial fear in Canada and perhaps in the United States and other countries. Napoleon Hill found ill health ranks #3 on the basic fears in 1937.

Given those concerns, the whole emergency process was reassuring

instant connection to 911
ambulance and firefighters arrived within minutes
quick admission into the hospital

The hours waiting in the hospital were a drag but what can you do when doctors judge that others need treatment more urgently than you? The two drugstores were the big disappointment because they lacked adequate stock of medical basics.

Movies show hustle and bustle in emergencies. Real life was calm and orderly, which is better.

Links

The Norwalk virus (City of Toronto)
Officials wary of possible viral outbreak during Olympics (CTV.ca)
Christmas in the Emergency Ward
H1N1 anyone? Why insurers won't insure you
What happens during a paramedical exam for life insurance?
One week in a Handicapped hotel suite
The six financial fears of Canadians
Napoleon Hill ranks ill health as the third basic fear
Image courtesy of Ryan von Schwedler (United States)

Podcast Episode 54 (5:32)

direct download | Internet Archive page

PS We received a $45 bill for the ambulance and paid $15 for parking.

How Did You Make Your Last $500 Purchase?

noreply@blogger.com (Promod) — Sat, 06 Feb 2010 21:34:00 +0000

How you spend your money reveals your values.

You may make small purchases without noticing how they quickly add up. That's the concept of the latte factor which was recently discussed on other blogs in Rethinking the Latte Factor (on Million Dollar Journey) and When the Latte Factor doesn't work (on Thicken My Wallet).

You probably notice your larger expenditures when you receive your credit card statement. Think back to your latest sizable purchase. Let's say costing $500 or more. Pick something smaller than a condo or house. What was it?

Here are some ideas.

a bike
a boat
a car
cookware
clothing
a computer
an exercise machine
golf clubs
a gym membership
an HDTV
a home renovation
jewelry
a pet
a purse
a smartphone
software
a stove top
tuition
a washing machine
a wrist watch
a vacation

Relax. This blog post won't ask why you buy or suggest you save the money instead. Maybe you're saving on lattes to buy something big. That's fine. We're looking the how, not the why.

Your Decision Process

When you made your $500 purchase, how did you decide what to get?

the brand
the design (elegance or functionality)
the features (as few as needed or as many as possible)
the price (low, medium or high)
recommendations from others
the retailer
the return policy
the warranty

How much time did you spend deciding? Did you buy on impulse or research extensively? Was your research online or in store?

Many Factors

Many factors affect our decisions. Most aren't logical because we aren't ... even if we pretend we are. What does how you bought say about you and how you can be influenced?

Links

Trading Up: Getting what we want by distorting our spending
Rethinking the Latte Factor (Million Dollar Journey)
When the Latte Factor doesn't work (Thicken My Wallet)
Why you can't know what you want
Why you can't (and don't) buy on price
image courtesy of Gustavo Bueso Padgett (Honduras)

Podcast Episode 53 (2:57)

direct download | Internet Archive page

PS The way we decide varies. You might buy electronics online and clothing in store. We might migrate from name brands to generic. Or vice versa.

uApple: The iPad Shows How Can You Be Like Apple

noreply@blogger.com (Promod) — Sun, 31 Jan 2010 21:33:00 +0000

Are you old enough to remember when Apple meant the record label of The Beatles. Now Apple means the iPod, the iPhone and the new iPad. There's such anticipation when Apple does something new. Fans speculate on what's coming, guess at product names (iTablet, iSlate) and even create prototypes. What rare devotion.

People trust Apple to do something that matters. How can you be like Apple too?

Let's start with a review of their latest product.

The Year of the Tablet?
2010 looks like the year of the tablet computer. A tablet lets you use a computer without a mouse and perhaps without a keyboard. Instead, you touch the screen with a pen-like stylus or maybe even with your fingers if you have a multitouch display.

Tablets never sold well. Why? Price and performance. Even now, a business-grade tablet from Dell, Fujitsu or Lenovo costs $2,000 or more. The designs trade speed and graphics for longer battery life and lower heat. Maybe Apple can make a breakthrough

What if consumer tablets were enhanced netbooks with multitouch displays? They'd be budget-friendly and easy to use. Wishes answered. These devices are starting to enter the market now. Some ditch the keyboard and stylus, which may be fine for portable web browsing and ebook reading on the 10" screens they typically have.

Apple's Magic
Cinderella and the garden of Eden point out the folly of biting into an apple. That doesn't stop the masses from lining up to bite into the latest from Apple. It's as if life isn't worth living without their latest gadget. What anticipation. Good for Apple and their shareholders.

Types of Tablets
Some tablets have no keyboards and are called slates. You use a stylus instead. This leads to a thin, light device. An attention-getter but limited in capabilities. If you want your handwriting to be converted to text what do you do? You can use Windows 7, which has tablet support (as did Vista and a special version of XP). Or you can type on a virtual keyboard, which lacks the tactile feel of a real keyboard.

The iPad is a slate but has no stylus. You use a virtual keyboard instead. Pounding on a flat screen instead of pressing down on real keys can't be good for you. There's no speech recognition either, which means you can't have what you say converted to text.

The most functional tablets have keyboards. They look like and can be used like a normal laptop computer. That shortens the learning curve and lets you do more. Typing can be faster and more accurate than handwriting.

Since websites aren't optimized for tablets, you might have trouble clicking on some buttons unless you have a stylus, touchpad or trackpoint.

The Success of the iPad
The iPad --- which is not even available yet --- has been called

the Kindle-killer, likely to become the ebook reader of choice (Amazon stopped selling all MacMillan books when the publisher demanded a 50% hike in retail prices on some titles; maybe Apple is looking for a $15 price for ebooks instead of the $10 US that Amazon established)
the paper book-killer (ebooks outsold paper bookk for the first time on Dec 25 2009 at Amazon)
the tablet-killer or netbook-killer because people have such high anticipation for Apple products

The reality is that Apple left out features normally found in cheaper netbooks: multiple USB ports, expandable memory, removable battery and webcam. The prices are higher (starting at $499 US). There isn't even a widescreen display (just 1024x768). On this blog, 55% of you use better displays. Would you like to step back to the 1950s and a 4:3 aspect ratio? Maybe.

We can't tell how well the iPad will sell. That didn't stop Apple from launching it.

How Can You Be Like Apple?
Look at what Apple has achieved with the iPad already

"A" for effort (maybe not "A+")
innovation without risking the company's future
shaking up the marketplace for ebooks, tablets, publishing and maybe cable TV

Perceptions affect reality. Imagine if your audience (clients, management, strangers) had high expectations of your next project. They'd expect the best even if you were doing the new. They'd forgive your mistakes --- they might even be blind to them. You'd a high balance in your Emotional Bank Account (a concept from The Seven Habits of Highly Effective People by Stephen Covey). You make deposits from a history of past successes, even if small.

I saw it once in a cartoon, but I think I can do it.
--- Stephen Wright

What would you do if you knew you couldn't fail? You've probably heard this annoying question which points out we don't live up to the light we have. Suppose we harnessed more of our potential without worry of failure. The way a kid does. You may not succeed, but more risk usually leads to more reward. If you mess up, you can try again. If you fail like Apple.

Links

Do you fail like Apple?
Hello, giant iPod Touch (John Dvorak)
Seven things Apple left out of the iPad (dvice.com)
9 upcoming tablet alternatives to the iPad (mashable.com)
20 guesses at what the Apple tablet will look like (BusinessInsider.com, 3 months before launch)
The critics weigh in (pcworld.com)
Apple iPad: bashed by bloggers around the world (The Guardian)
The iPad Showdown: Apple vs Comcast (Harvard Business Review)
image courtesy of Jay Lopez (Philippines)

Podcast Episode 52 (6:29)

direct download | Internet archive page

PS You can turn your current computer into a pseudo-tablet by adding a Wacom tablet like the Bamboo or Intuos.

Why We Accept Airport Security But Deny Our Financial Security

noreply@blogger.com (Promod) — Sat, 23 Jan 2010 23:28:00 +0000

Transport Canada recommends that passengers heading to the United States arrive 3 hours prior to their flight time to allow for security screening.
--- gtaa.com, Jan 21, 2010

Flying from Toronto to the United States used to be easy because you'd clear US immigration before boarding. You'd then arrive as if you took a US domestic flight.

That changed on December 26, 2009.

Now, you're advised to arrive at the airport three hours before departure. You go through US immigration screening and then the usual security screening where you walk through a metal detector while your outerwear, computer, metal objects and carry-on get x-rayed. There's more. On the way to my gate a surprise security inspection took place. Again, items out of pockets and on to the table. This time there was a physical inspection.

You wait and wait in line after line. There's no room for jesting or commenting on the delays. You don't want to draw attention to yourself.

Without any carry-on (none was allowed!), the whole process of arriving at the airport and getting to my gate only took 40 minutes (which included walking). The additional security measures were more bark than bite. But that still meant hours wasted at the airport. You may experience longer delays. Arrive early.

Travelling can have other other nuisances

adjusting to different time zones
speaking the language
concerns with safety and food
expenses (you're treated like a walking wallet)

Stay Home?
Why bother travelling? The destination is worth it.

Those who have a 'why' to live, can bear with almost any 'how'.
--- Viktor Frankl

Besides, we have no choice at the airport. We can't negotiate. Other forms of travel are probably impractical.

The Life You Control
Other parts of our lives aren't subject to stringent rules. Think of

improving health
learning marketable skills
investing quality time with family
giving to society
networking

Without rules, we do less. Unless

we have self-discipline
we know what we want
we know what's available

Let's turn to finances. We need self-control to

set aside money now for retirement later
stick to our plans while others quit
explore our options so logic can help guide us

When we care about the destination, we'll make sacrifices now and along the way. You may now put your shoes back on and head to your gate. All aboard?

Links

Three reasons why financial literacy eludes us
image courtesy of Mike Licht

Podcast Episode 51 (3:55)

direct download | Internet Archive page

PS Returning to Canada was a breeze. I brought my netbook and all my luggage as carry-on (they entered the US as checked luggage). Nothing triggered an alert. The process took mere minutes, which meant more time waiting at the gate.

You (Yes You) Are A Genius [The Linchpin Session from Seth Godin]

noreply@blogger.com (Promod) — Sun, 17 Jan 2010 01:41:00 +0000

Talent hits a target no one else can hit.
Genius hits a target no one else can see.
--- Albert Schopenhauer

Stand up if you're a genius.

That's not (m)any of you. At The Linchpin Session, Seth Godin asked geniuses to rise and got the same result. He was the only one standing, but that's not because he was the speaker. This was not his way of putting us down and no dunce caps were handed out. His question had a point. His explanation was like a Shawshank Redemption but without decades in prison.

An Example
The difference between genius and stupidity is that genius has its limits.
--- Albert Einstein

If you're not a genius, then who is?

How about Albert Einstein? You won't get many arguments by picking him. Remember the photo of him sticking his tongue sticking out? Only a genius, celebrity or boor would do that. You can stick your tongue out too. You can have messy hair (or wear a messy hair wig). That's as close as most of us can get to the E=mc² level of genius. Luckily, there are other degrees.

What Genius Does

It's not that I'm so smart, it's just that I stay with problems longer.
--- Albert Einstein

Let's look beyond IQ and worldwide acclaim. What does a genius do? A genius solves a problem in a way no one else could. A genius gives the world something it didn't know was missing. A genius looks a problem with fresh eyes. A genius changes the rules.

Here are examples of genius in varying degrees

Velcro: based on burrs sticking to fur
Post-it notes: a use of a glue that was too weak
Super glue: an adhesive that was too strong
tooth brush and dental floss
preshredded cheese
the computer mouse and now the touchscreen
chocolate mixed with peanut butter (actually, chocolate mixed with anything)
the stapler
the spelling checker
heated car seats

Like Einstein, we can also work on problems longer. We can find help, which is much easier in today's interconnected world with a wealth of online information. We can then come up with our own solutions.

Second Chance

Are you a genius?

When Seth asked near the end of his session, the entire audience stood up. We were immodest about our brilliance, but we felt uplifted. How about you?

Links

Three Lessons from Seth Godin live at The Linchpin Session (marketingactuary.com) [new]
The phenomenon of genius (aboutintelligence.co.uk)
What constitutes "genius" (with examples) (askville)
Undeniable examples of women geniuses (Ask MetaFilter)
Einstein: nutty professor or one cool dude? (MSNBC)
10 accidental inventions (with photos) (Pocket Gadget)
Top 10 accidental scientific inventions (Discovery.com)
image courtesy of Alan Levine (CogDogBlog)

Podcast Episode 50 (3:39)

direct download | Internet Archive page

Your Favourite Posts of 2009

noreply@blogger.com (Promod) — Sat, 09 Jan 2010 22:15:00 +0000

Welcome to 2010. Let's start the year by looking back at what you read here on Riscario Insider in 2009.

Overall

The trends look great once again. Your visits more than doubled (increased by 2.4 times for the second year in a row) and 82.2% of you were new. You stayed 18.3% longer per visit and viewed an average of 1.5 pages each time.

The Top 10 Posts

Here's what you read

Worth A Peek

These 2009 posts didn't make the most read list but might suit you

If you prefer, you can listen to the podcasts. Here are the top five:

Other statistics follow.

The Top 5 Countries

You read from 139 countries (up from 99). Here are the top five.

Canada: Toronto, Ottawa (was #3) Vancouver (was #2), Calgary, Edmonton, Winnipeg, Montreal
United States: California, New York, Texas, Florida (was #5), Illinois (was #4)
(by city: New York, San Francisco, Chicago, Houston, Atlanta)
United Kingdom
Australia (was #5)
India (was #4)

Source of Traffic

Search Engines: 46% (down from 61%) (94.0% from Google, 2.3% from Yahoo, 1.8% from Bing)
Referring Sites: 40% (TheBrain, Canadian Capitalist, Canadian Personal Finance Blog, StumbleUpon, Thicken My Wallet, The Globe & Mail)
Direct: 14%

Keywords

Here are the key words typed into search engines to get here.

seymour schulich
7 habits of highly effective people quotes
personalbrain 5 review
dwayne daku
six basic fears

Browser used

Internet Explorer: 48% (down from 59%)
Firefox: 34% (unchanged)
Safari: 8% (up from 4%)
Chrome: 7% (up from 2%)

Operating System

Windows: 85% (down from 91%)
Macintosh: 12% (up from 7%)
Linux: 2% (up from 1%)

Some visits came from portables such as iPhone, iPod, Blackberry and Palm devices.

Screen Resolution

1024 x 768: 23% (down from 35%)
1280 x 800: 20% (up from 18%)
1280 x 1024: 15% (up from 12%)
1440 x 900: 11% (up from 9%)
1680 x 1050: 9% (unchanged)

How's that for detail? Thanks for reading.

For more frequent updates, Follow @riscario on Twitter.

Links

Your favourite posts of 2008
Your favourite posts of 2009 for entrepreneurs (Marketing Actuary blog)
image courtesy of Ana Silos (Mexico)

Podcast Episode 49 (7:10)

direct download | Internet Archive page

The Gift of Networking

noreply@blogger.com (Promod) — Sat, 19 Dec 2009 12:16:00 +0000

It isn't just what you know, and it isn't just who you know. It's actually who you know, who knows you, and what you do for a living.
--- Bob Burg

No cost. No pollution. No limits. Networking makes a perfect gift. As with gardening, you harvest what you plant and nurture.

Are you committed?

Our son wanted a pet chinchilla when he was three. We got him a Tamagotchi (a digital dog on a keychain). Like a real animal, this pet required food, cleaning, rest and attention. Too much work for him. The digital dog soon died of neglect. Lesson learned. No pet.

It's easy to start networking online

join: pick LinkedIn, Facebook or Twitter, your choice
lurk: see what others do so you'll blend in
participate: help your network now and into the future

The challenge is sticking with it.

Like an Elephant

Like an elephant, the Internet never forgets. Your online activity leaves a permanent trace. So you're wise to think of the implications of your messages

don't say something that would offend you, a family member, a potential client or a potential employer
don't send something unless you're in a proper frame of mind; it's too easy to misinterpret others and too easy to be misinterpreted

When You Mess up

Despite your best efforts, you'll make mistakes. Some people go out of their way to find ways to get offended. If you've established a history, you'll have credibility with the rest. They'll be more forgiving. Plus the volume of your activity will bury the inappropriate statements.

The Science of Giving

The currency of real networking is not greed but generosity.
--- Keith Ferrazzi, Never Eat Alone
Give for the sake of giving. Give to make the world better. Your generosity will change you forever. If that's not reward enough, give because your network will reciprocate if you need help. Is that hard to believe?

Dr. Robert Cialdini explains why reciprocity works:
It becomes possible for one individual to give resources to another without giving them away. What you get instead is a credit. When you need something, you can call on other members of the group who you have helped in the past and they are very willing — in fact, they are waiting — to help because the saddle of obligation weighs heavy on us.
We want to repay our debts. We want to give back to others who have given to us.
--- Dr. Robert Cialdini

Caution: Build Then Invite

How would you feel if you visited a new store with empty shelves? Build your destination before opening the doors. On Twitter, this means having several tweets. On LinkedIn or Facebook, have a reasonably complete profile with your photo and the basics about you. Be sure to add the details later. You'll now make a stronger impression when it matters most: the first time.

Now find out who else you may know on the network. This is easy. Just upload your contacts and inform suitable ones. If they don't respond, be patient. You gain nothing by pestering them or feeling offended.

The best way to network is to start. Now. You don't need to wait for spring.

Final Post of 2009

The best to you and yours during the holidays.
May 2010 give you what you yen!

Links

Universal principle of influence #1: Reciprocity
Jerry Seinfeld's productivity secret
definition of yen: miss, long for
image courtesy of Henk L | Holland

Podcast Episode 48 (4:46)

direct download | Internet Archive page

The Three Ways to Make Money (Without Winning a Lottery)

noreply@blogger.com (Promod) — Sat, 12 Dec 2009 12:02:00 +0000

You can be young without money, but you can’t be old without it.

--- Tennessee Williams

There's more to life than money but money is an important part of life. How can you make more?

Here are the three ways

be efficient
be effective
be creative

We'll explore each.

Be Efficient

A rich man is nothing but a poor man with money.
--- WC Fields

Do more of what you're already doing and you'll get more of what you're already getting. Picture an assembly line.

You can work more hours. Your rewards won't grow in exact proportion but will improve until you're not getting enough sleep or spending enough time with your family. If you're on salary, you can still work longer but won't get much for it. Would you get better returns by investing the extra time in improving yourself?

You can also do more with less. Maybe you can reduce your costs by using more technology. Picture Wal-Mart.

Be Effective

Money can't buy happiness, but neither can poverty.
--- Leo Rosten

You can specialize. You target specific markets and discard what doesn't fit since those are distractions. Your costs may increase but your revenue goes up even more. If you're after a particular kind of fish, you must return other fish, no matter how they tempt you.

Think of Ghostbusters. Who you gonna call when only the best will do?

When you invest in yourself, you multiply your financial rewards when you push through the dip and apply the 10,000 hour rule.

Each of the approaches above has merits. One is not better than the other. Each works alone or together.

Be Creative

Money frees you from doing things you dislike. Since I dislike doing nearly everything, money is handy.
--- Groucho Marx

Keep more of each fish. Reduce wastage. Can you keep more of each dollar you earn? Financial literacy and tax planning helps. You can't change the tax rates but maybe you can increase your tax deductions to achieve the same result.

Links

Podcast Episode 47 (3:12)

direct download | Internet Archive page

The Power of Redundancy

noreply@blogger.com (Promod) — Sat, 05 Dec 2009 12:16:00 +0000

It looks like being a busy weekend on the ferries, particularly Saturday and Sunday.
--- Peter Powell

Go see it and see for yourself why you shouldn't go see it.
--- Samuel Goldwyn

What do you do when things break? Without a "Plan B", you're stuck or subject to expensive rush repairs. Even if you buy extended warranties, you'll pay in time lost. Enter redundancy.

These days you can get cheap peace of mind by having an extra fridge (mini or full-size). You may not have an extra washing machine but can use a laundromat. If your dryer breaks down, you can air dry your clothing. If the microwave oven breaks, you can use a regular stove --- if you remember how.

What about technology? Let's look at your phone, Internet access and computer. How can you reduce the stress of them breaking down?

Your Phone

If the wire-to-your-home phone line doesn't work, you can use your mobile phone. Even kids have them these days. If you're single, you may not even have a home phone. What happens if your mobile phone breaks or gets lost? I feel you shudder. Have you got your contacts backed up?

Maybe you can redirect calls to voicemail or another number. Skype can help you make calls. For $2.95 US a month, Skype Unlimited gives you 10,000 minutes of calls to phones in the US or Canada (landline or mobile). There's a limit of 360 minutes per day. This is also a cheap long distance plan.

Internet Access

We just cancelled our cable since we watch so little TV. We don't have satellite either. Last time we did this, Jeevan was about six years old and the service ended abruptly during a rerun of Scooby Doo. He was so angry. Tears poured and fists flew. This time, no one cared.

We wouldn't dare cancel Internet service. If anything, we'll upgrade from 10 Mbps to 25 Mbps. Maybe even to 50 Mbps.

If your Internet service stops working, what do you do once you stop convulsing and colour returns to your cheeks? You wait. Maybe you can get by with Internet access on your mobile phone. For a home office, that won't do. We had WiMax as a backup. More recently, we switched to a mobile Internet stick from a different provider. That's double redundancy.

Your Computer

When you get a new computer, why not keep the old one? The old equipment can easily handle simple tasks like accessing the Internet. You can even use different computers for different purposes. Here's my setup using notebook computers:

work (14"): to be replaced
home (17"): workhorse
mobility (10" netbook): go anywhere and for most email

Older computers can be cascaded to other family members. An older 12" notebook is used for web surfing.

With all this equipment, there's plenty of redundancy. We're functional if anything breaks down. Data is backed up on a home LAN, encrypted portable hard drives and now online too.

Rather than worry about breakdowns, you can get cheap insurance by having extras. After all, you probably have more than one slotted screwdriver.

Podcast Episode 46 (4:15)

direct download | Internet Archive page

Links

Picking a netbook computer
image courtesy of Mario Alberto Magallanes Trejo | Mexico

What happens during a paramedical exam for life insurance?

noreply@blogger.com (Promod) — Sat, 28 Nov 2009 23:06:00 +0000

When you apply for life insurance, your health (both medical and financial) gets evaluated. This process starts with data gathering.

What's needed depends on your age and the amount of coverage. The requirements usually show on the life insurance projection you signed when you applied. Depending on your answers and test results, more investigations may be required.

The Nurse

A nurse came to my home at the appointed time to conduct the tests. She was pleasant, efficient and experienced. She also works at a hospital. She asked many questions throughout. The process took about 40 minutes.

Sometimes, the insurer requires that your examination be conducted by a doctor of their choosing. To prevent conflicts of interest, you can't use your own doctor.

The Requirements

As with a normal medical checkup, the nurse collected the basics

measures your height
checks your weight on her scale
checks your blood pressure
asks about your use of alcohol, tobacco and drugs
asks about you use of prescription medication
asks about changes in your health

In addition, I provided blood and urine samples which go all the way to Kansas City for analysis. Why there? Who knows. You'd think local testing would be faster and cheaper.

I also gave

proof of identity with my driver's license, which has a photo
the name/address of my doctor

Past health affects future health. So you're asked many questions about yourself and some about your family.

Tip: When answering questions, pretend you're on the witness stand or at border security. Be truthful. Be concise. Be quiet. You gain nothing by continuing to yak.

A final question asks if any relevant information was not provided. Clever.

The EKG

An EKG was also required because of the amount of coverage I was requesting. This does not take a visit to a clinic for testing with a huge machine. Now a small device the size of a paperback novel suffices. Ten electrodes were connected over my chest. I sat comfortably with my feet resting on a chair. The results were converted to sound and communicated to the analysis centre by telephone. The squeals reminded me of dial-up modems connecting. Or R2D2 in a foul mood.

Had the EKG identified problems, the test would have been repeated.

Ouch! The EKG sensors attach to your body like bandages with metal probes on the back. The application is easy but removal stings if you have a hairy body like mine. The nurse asked me to remove the three most toughest probes.

Initial Results

The initial results look good and mirror my executive physical four months ago. If the insurance underwriters don't agree, you face

more tests, or
higher premiums (a poor health rating costs you just as a poor credit rating does), or
no offer of insurance (you're uninsurable)

Free

There's no charge for the examinations to you or your advisor. The insurer covers the entire cost even if you are declined for coverage or you decline to purchase the coverage.

Each party loses if you don't get insured. You don't get the protection you wanted. Your advisor doesn't get paid. The insurer doesn't get revenue to cover the costs incurred. Even so, the insurer would rather lose a small amount now than to pay out a large death benefit for which you paid too little. (See why insurers won't insure you.)

Privacy

If the underwriting process uncovers medical issues, your advisor never gets the details. To protect your privacy, the results go only to your doctor and you. You can then see if you can take steps to restore your health through treatment or changes in lifestyle.

Links

Podcast Episode 45 (4:48)

direct download | Internet Archive page

Get Results with the Process System for Planning Simply

noreply@blogger.com (Promod) — Sat, 21 Nov 2009 23:15:00 +0000

Is it a process?

Is it a system?

It's the Process System!

Unless you love details, planning quickly gets boring. Especially as you dive down into the depths and turn the murky details into visible steps.

Planning can feel like a treadmill, but guess what? The better exercise treadmills have Quick Start buttons. You can get moving without selecting a program, confessing your age or admitting your weight. Why? Because moving forward matters most. The fine-tuning is not essential to start. A shark must keep moving to keep breathing. We must keep breathing to keep moving.

Enter the Process System for Planning Simply (PSPS). I've it used again and again year after year for many purposes. Don't take the name too seriously or worry about complexity. All you need is a blank page and a pencil. There's nothing to buy and no one to pay. We'll look at two examples: weight loss and saving for retirement.

Three Simple Steps

With the Process System, you answer three questions.

What do you want?
Where are you now?
How do you get there?

These questions are great for consultants because they can be used in many situations. Let's dive deeper into each.

1. What Do You Want?

You start with your goal. In The Seven Habits of Highly Effective People, Stephen Covey calls this Habit 2: Begin with the end in mind.

Here's the dilemma: you can't know what you want until you know what's available (i.e., what's possible, even if it doesn't currently exist). For now, let's assume you know or can easily find out what you want.

2. Where Are You Now?

This is easy to answer because you look at cold, concrete facts. Example

for weight loss: factors like weight, blood pressure, cholesterol
for finances: factors like assets/liabilities, income/expenses

3. How Do You Get There?

This is the toughest part. The steps may look simple

reduce calories by a specified amount per week
increase savings by a specified amount each month

Knowing and doing are very different. This is where the nasty details enter. This is where discipline becomes required. You may be able to act on your own but getting support from a coach or others often helps.

When you're sailing, conditions change and you make adjustments to reach your goal. You do with the Process System too. Change is simpler when you're already in motion. How do you plan? Could the Process System help you?

Links

Podcast Episode 44 (3:26)

direct download | Internet Archive page

Unemployed: How To Make Your Exit Easier On You

noreply@blogger.com (Promod) — Sun, 15 Nov 2009 02:20:00 +0000

Wed, Nov 11: Remembrance Day

Thu, Nov 12: unemployed

Fri Nov 13: Friday the 13th

Sat Nov 14: pack up and depart forever

On November 11, we look back to past heroes. On Friday the 13th we worry about bad luck. So what happens on Thursday, November 12? We look to the future and hope for good luck. Even if newly unemployed.

November 12

The day started early in Cambridge, about an hour west of Toronto. The Benefit Guys were hosting a half day seminar on The 21st Century Consumer. I was presenting How To Succeed With Entrepreneurs Part 1. I left early, skipped lunch and raced through highway/city traffic for 70 minutes to get to my downtown Toronto office for a must-attend meeting on the annual retirement roadshow. Since I have no involvement with retirement products, I didn't know why I was needed. Minutes later, I found out.

Shortly after 1pm, a Senior Vice President led me to the Rogers Room just next to the President's office. In this cosy room with a gorgeous view north to the Ontario Parliament Buildings, sat a representative from Human Resources. Uh oh ...

I was reminded that sales through National Accounts were low, expenses were high and profitability was poor. There were no prospects for a quick turnaround. So I was losing my job effective immediately. I asked if anyone else was affected but they would not say. I figured I was the only one, which was not a pleasant feeling.

National Accounts have offices across the country and include the places most people bank and invest. I spent most of my time supporting independent regional firms but was part of the National Account support team.

I was left with the HR representative to review a two page summary of statutory benefits and additional severance. The package looked reasonable for 18 years and 5 months of employment. After she left, an outplacement consultant came in to explain the services they would provide.

My emotions were jumbled but I felt optimistic about the future. Although I didn't pick the timing, I was glad to have a financial cushion while searching for new opportunities.

Then There Were None

I went back to my office to pack up. That's when I learned the whole National Accounts division was shutting down. [Update on Nov 18: officially, these are structural changes and the division continues to exist] The 1pm meeting time allowed synchronized terminations from coast to coast. In my office alone, five people --- including my boss --- lost their jobs. In a strange way, it's comforting to know that others are going through the same thing.

Unaffected employees were being told the news in a meeting. I was advised to leave before returned. I did. In the confusion, I forgot to bring my package with me. I tried phoning home but my Blackberry had been wiped clean and disabled. That's efficient.

What You Think

A lot goes through your mind when an unexpected shock hits. Deep down, I was optimistic about the future since I've invested in learning and honing portable skills. We are in the information age and knowledge age are we not?

Leaving forever isn't easy for practical reasons. If you work in a corporate environment you face the challenge of extracting your personal information from your office, computer and smartphone. Thing like

files
contacts
calendars
emails
subscriptions to print publications

Since you're likely required to leave corporate equipment when you exit the building, plan ahead. The company probably has a backup of all your files. That helps them but not you. In my case, my company notebook computer was in my car and I took it home without thinking. What a blessing.

Getting Personal Files Off Your Work Computer

As a precaution, I already had backups of my personal files on a portable hard drive and home LAN. Each day, I followed a multistep synchronization process: work computer to portable hard drive to home computer to home LAN. And vice versa. At most, I'd lose one day's files.

Online offsite backups are worthwhile too. I have yet to investigate options but will soon.

If you have a desktop computer, a USB memory key works well (unless it's blocked). Ideally, you'd keep no personal files on company equipment. That was a key reason for getting a netbook computer recently.

You can probably find instructions for copying personal information by searching online. However, you should already have a scheduled backup strategy in place.

Backup Your Contacts

As I left the meeting, my Blackberry had already been reset. The contacts, calendar and emails were all wiped out. The phone still worked but I didn't realize this until the next day.

Synchronizing contacts was a bigger problem because the Outlook Import/Export feature was disabled. It only seems to work when connected to the corporate LAN. I found this out when exporting my contacts to LinkedIn months earlier. Luckily, I routinely scan business cards and store them in PersonalBrain (reviewed earlier).

Backup Your Calendar

Calendars are a problem. Mine are entirely electronic, which meant no paper backups. While Outlook synchronizes with my Blackberry, that's of no use when you leave your equipment behind. Luckily, Google Calendar Sync can help if you use Gmail.

Change Your Contact Information

Your contact and employer information is probably in more places than you recall. Here are some:

LinkedIn
Facebook
professional directories
groups and associations
email mailing lists (if you can remember which they are)

When you're ready, post a quick status update to let your connections know you're now self-employed. For dramatic effect, I waited until the next day, Friday the 13th.

Since all my future work commitments were now cancelled, I alerted the parties affected in the near future. Why not make your exit easier on them too?

Now it's time for a sabbatical before deciding on a future direction.

Links

Podcast Episode 43 (7:26)

direct download | Internet Archive page

Three Reasons Why Financial Literacy Eludes Us

noreply@blogger.com (Promod) — Sat, 07 Nov 2009 16:52:00 +0000

Although I am almost illiterate mathematically, I grasped very early in life that anyone who can count to ten can count upward indefinitely if he is fool enough to do so.
--- Robertson Davies

Yes, we want to make good financial decisions. Yes, we have the capability. However, universal financial literacy remains beyond our grasp for three reasons

trouble reading
trouble perceiving
human frailty

Let's examine them.

Trouble Reading

About one in seven Americans can't read. About 40% of Canadian adults can't read at the level of a high school graduate. Of this group, 15% have serious problems dealing with any printed materials. Maybe they can handle Dr. Seuss, but that won't get them far in life.

Do not worry about your problems with mathematics. I assure you mine are far greater.
--- Albert Einstein

While literacy result are bad, numeracy is even worse. According to the 2003 International Adult Literacy and Skills Survey (IALLS), 55% of Canadians have inadequate math skills. Other countries have issues too. BusinessWeek reports that "Americans are functionally illiterate". The University of Michigan found that only 18% of boomers could solve a simple question involving compound interest. Unfortunately, I can't find that question to share with you.

Even if you're comfortable with words and numbers, you may make the wrong decisions.

Trouble Perceiving

Let's look at snack food and fast food. You're overwhelmed with layers of flavours and sensations: smooth/crunchy, sweet/bitter, hot/cold, hard/soft. This makes food harder to resist. We eat based on the size of the plate. If it's on the plate, we think it'll fit in our bellies. Our bellies expand to accommodate us.

Financial products are hard to compare, which complicates our decisions. What is the cost of a floating rate mortgage compared with a fixed rate mortgage? How much does your credit card really charge you in a year: annual fees, surcharges on exchange rates, interest penalties for late payments? How would this compare with other credit cards? I met someone who pays annual fee of $400 for a credit card because of perceived rewards.

We're better at perceiving change that's linear than geometric. The pattern 1, 2, 3, 4, ... makes more sense than 1, 2, 4, 8, 16, ... but the latter is closer to real life. Compounding interest works for us when saving and against us when borrowing. An interest rate of 1% compounding monthly is higher than 12% a year.

If a mutual fund earns 9% over a year and charges a Management Expense Ratio (MER) of 2%, you'd expect a net return of 7%. You'll get something different because the fund value fluctuates daily and the MER is typically deducted daily a compounding effect).

Try these challenges from earlier posts

Human Frailty

Businesses make money from our weaknesses. Naturally, they propose their products as the solutions. Napoleon Hill identified our six basic fears in 1937 and they're still with us.

Education helps us fight temptation. Discipline keeps us on track.

Financial planning involves immediate pain for long term gain. We feel the pain of saving now but have difficulty visualizing the benefits of secure retirement income decades later. We think we can start saving later, which means we lose the substantial benefits of compounding growth.

Get Smart

Ontario students will learn financial literacy from grades 4-12 starting in 2011. That's great since habits start young. However, we can change at any age. This video from accountants gives helpful basics.

You can also learn from financial bloggers, your advisors and others you trust. You just need the spark of desire to start.

Links

Adult numeracy in Canada (Canadian Government)
Financial Literacy for Canadians (fundraiser from ABC Canada)
VISA revises its financial literacy website (Jonathan Chevreau, Nov 4, 2009) | many links
Financial literacy: the time is now (BusinessWeek, July 22, 2009) | many links
Finance Minister Jim Flaherty on financial literacy
Understanding Money website (Australian government)
Should Canada invest in financial literacy? (Ellen Roseman)
Our six basic fears according to Napoleon Hill
image courtesy of Sigurd Decroos (Belgium)

Podcast Episode 42 (5:41)

direct download | Internet Archive page

Why Insurers Won't Insure You (H1N1 anyone?)

noreply@blogger.com (Promod) — Sun, 01 Nov 2009 01:43:00 +0000

You can't always get what you want.
--- The Rolling Stones

You've got the money. What you want is legal and widely available, but you can't buy it. Who would turn you away? An insurer.

This isn't because of supply and demand. After all, an insurance policy is just a printed promise. The quality of the promises varies, but there's plenty of paper to print them.

Why Refuse Motivated Customers?

Conventional wisdom says that insurance is sold, not bought. If you're interested in getting coverage, you're viewed with suspicion. Who wants to buy insurance? Maybe you know something you think the insurer won't find out.

We're self-motivated to buy insurance when we think we're likely to get a higher-than-normal payoff. If we win, the insurer loses.

Underwriters

Underwriters classify risks. Bad risks pay more if they can even get protection. You undergo a similar process when you apply for a mortgage. The higher your creditworthiness, the more you can borrow and lower the interest rate you pay. Similarly, insurers look at your health rating and your finances.

Asymmetry Of Information

What if you know something the insurer doesn't? You stack the odds in your favour. Insurance spreads risks among large groups with similar characteristics. Smokers die younger and have more health problems. Suppose a smoker pays the same price as a nonsmoker. By overpaying, the nonsmoker is subsidizing the smoker. That's unfair. Insurers try to assess each risk fairly and charge accordingly.

Fear Motivates

Since we're attentive to bad news, the media gives us plenty (unless you live a low noise life). Take the current "swine flu" (2009 H1N1 Flu). In previous years, we've warned about West Nile virus, SARS pneumonia, mad cow disease and avian flu (H5N1).

If you've had a bout with a disease, you may want to buy insurance and find you can't --- especially if you were hospitalized. The insurer may require that you wait months to show that you've recovered. By then, you may forget or lose interest. The insurer would rather turn away business than take on an unexpected risk.

Links

Keeping promises: do you care about corporate governance scores?
how swine flu affects your insurance options (Canadian Business, Nov 2009)
how your health and risky hobbies affect your insurance options (Canadian Business, April 2008)
image courtesy of Melodi T (Aukland, New Zealand)

Podcast Episode 41 (3:04)

direct link | Internet Archive page

Why Is Financial Planning Ignored?

noreply@blogger.com (Promod) — Sat, 24 Oct 2009 21:36:00 +0000

If you don't know where you're going, any road will take you there. --- Lewis Carroll

Do you plan before you start or start before you plan?

When discussing finances, some advisors feel you must have a comprehensive financial plan but most recommend piecemeal solutions. You'll find background on Million Dollar Journey where a financial planner laments that Most Financial Planners Don't Plan Finances. Read the comments too.

Some financial planners get overzealous. They feel their way is the "right" way and look down on other advisors. You see similar divides in the Mac vs PC camps and the Microsoft vs Google groups. How unproductive.

Can you save for retirement without knowing how much retirement income you need? Certainly. You might not save the "right" amount but you're moving in the right direction.

Planning To Fail
Here are the problems with financial plans

they are expensive
they are boring
they are wrong

But they are better than nothing. You'll guess wrong on critical assumptions like investment returns, inflation and how long you're likely to live.

No Customers
You'll find financial planners who would eagerly prepare financial plans for a fee. They have trouble finding paying customers. A financial plan typically costs $750 to $5,000 plus ongoing maintenance plus tax . Do you get your money's worth?

You wouldn't pick a laser eye surgeon solely on price, but what about a financial planner? Are you paying for the expertise of the planner, as you would for a surgeon or are you paying for the hours they spend developing the plan? How can you judge the quality and relevance of the plan?

Slow and Painful
Financial planning is much like visiting your doctor for a physical. You answer questions, submit to tests and then get told to eat better, sleep more and exercise more. You already knew that. Will your behaviour change even if you're heading for trouble?

To get a financial plan, you sit down with a financial planner and perhaps an assistant who takes notes. You answer questions for what feels like hours ... and is. You leave your financial records (e.g., tax returns, bank statements, insurance policies, investment statements, etc). The assistant inputs the data into financial planning software (generally an Excel spreadsheet) which the planner reviews. Weeks later, you come back to review the plan, which may induce drowsiness. You'll find out what's wrong with your financial life and get recommendations in a thick, nicely bound report. By coincidence, your financial planner can often sell you the suggested products (their main source of revenue). You'll likely buy because you've already spent so much time and perhaps money too.

Because the process is painful, you probably won't get a plan from another advisor for comparison. You're less likely to switch advisors later. So financial plans are an effective business tactic.

Financial plans can be tough to grasp and we're in a world where financial literacy is a concern. Basics like how compound interest works aren't well understood. We're not known for making rational decisions either.

Ways to Pay
You can pay for financial plan in several ways

money: which may be refunded if you buy the recommended products (like a refundable deposit)
no fee: the advisor gets paid for selling the recommended products (which creates a potential conflict of interest)
free: as a reward for being a large customer (you're already paying for other services and this is a way to coax you to buy even more)

How Plans are Developed
Like tax returns, financial plans are developed using software. You'll find three categories

sophisticated commercial grade: e.g., FP Solutions, Naviplan (can be difficult or cumbersome to use)
simplified: generally point out deficiencies with your insurance or investments (which the planner can help you rectify); might be unique to the firm
proprietary: developed by the planner but not as well tested as commercial grade software

I've had FP Solutions Business Edition for years. This is extremely sophisticated tool costs $1,335 a year (plus tax). Since I didn't know how to develop financial plans, I got training (live, webcast and prerecorded). I rarely use it, though. I offered to develop free financial plans with advisors but got no takers. Zero.

Evidently, life goes on without financial plans.

Secrecy
Financial planners boast about their financial plans, but they're reluctant to show them. They certainly don't want competitors to see. Why this fear? A finished plan doesn't look distinct. I've seen dozens. They're generally

printed in colour on nice paper (though internal drafts may be in black & white on cheap paper)
include graphs and tables
in nice binders or bound with Cerlox or wire spines
have an executive summary because of the length
dozens of pages (though most of the content is generic)

You can't see the wisdom that went into developing the plan. You just see the printed result and wonder about the value.

The Real Reason

In the classic book Selling The Invisible, Harry Beckwith points out that our "financial" matters are private and sensitive. Also "planning" sounds tedious and difficult. Acting on the plans shackles our freedom. Now combine "financial" and "planning". Is it any wonder that financial planning and financial planners get ignored. What do you think?

Links

Podcast Episode 40 (6:59)

direct link | Internet Archive page

Why You Can't Know What You Want

noreply@blogger.com (Promod) — Sun, 18 Oct 2009 00:06:00 +0000

Don't it always seem to go,
That you don't know what you’ve got
‘Til it’s gone.
--- Joni Mitchell, Big Yellow Taxi

You can't get what you want

Till you know what you want.

--- Joe Jackson

Joni and Joe are both correct but there's another aspect: You can't tell what you want until you know what's available.

Some people try but they're cheating themselves. This is often when they're looking for the cheapest price today. In the prior post, we looked at why you can't (and don't) buy on price.

You can't decide without knowing your options.

An Example

Let's look at a concrete example: buying a computer. Here's a page from a old Best Buy flyer. Click on it to enlarge and take a look. Using only this ad, which computer would you pick?

You might buy based on

price: low, medium or high
brand
features or benefits
screen: size and resolution
performance: CPU speed and memory
portability: weight and size
intended usage: might pay more for business-grade
product life: more expensive might reduce the need to replace the computer

As you look at the ads, notice what's generally missing: weight, battery life, thickness and screen resolution.

What you think you want, may not be what you buy or what satisfies you. That's what happened when I bought one of those new-fangled all-the-rage netbooks.

Case Study

I thought netbooks were interchangeable and bought primarily on price (not from Best Buy).

I got an HP Mini 110 for $50 off. The price was fair, but I quickly found that what I got wasn't what I wanted. I got annoyed by the bilingual keyboard (a pet peeve), trackpad buttons on the sides instead of the bottom, the lack of Bluetooth, the weak wireless antenna, and the poor resolution anti-glare screen (1024x576).

Next, I spent a bit more for a Dell Mini 10v. This eliminated the problems with the HP but added three new ones

wrong screen resolution: 1024x600 glossy instead of the advertised 1366x768
a three hour battery instead of the previous six hours (assuming one hour per cell)
heat: runs too hot, which can't be good for the components or your lap

Finally, I got the Dell Mini 10, costs the most but eliminates the issues above:

screen resolution: 1366x768 (a real joy)
battery: 6 hours (estimated)
metal case: more rugged
low heat: uses a more expensive Atom Z chip in place of the usual N processor
no moving parts: more durable

The Surprise

Here's the big surprise with the Dell Mini 10: complete silence. Portable computers are generally quiet but the spinning hard disk and cooling fan make some noise. I paid an extra $130 for a 32 GB solid state hard disk (SSD) made from memory chips instead of the usual spinning 160 GB magnetic hard disks. Frigid winters, humid summers and foreign travel are tough on delicate mechanical devices. Even if nothing goes wrong, there's the worry that something could. What do you do then?

The multi-touch trackpad is a "free prize" that did not affect my purchasing decision but is very satisfying to use.

Lesson Learned

The point here is not to keep spending more because your needs are probably different. The lesson is that I didn't realize how much I valued silence before. There's no way I would have bought the Mini 10 at the outset because I didn't know what I wanted or how much I'd pay for it.

You've probably had similar experiences. We don't know what we want until we know what is available. We can't know.

Links

Podcast Episode 39 (5:42)

direct link | Internet Archive page

Why You Can't (and Don't) Buy On Price

noreply@blogger.com (Promod) — Sat, 10 Oct 2009 18:55:00 +0000

Today we're looking at prices from free to crazy.

The High Price of Free

We're getting the Toronto Star newspaper free for six weeks. This isn't a gimmick where you pay for Saturday and get Monday-Friday for free. We're getting the paper Monday through Saturday with no obligation. What a hassle. We glanced through a few issues but now the paper piles up in the recycling bin unread. Free has a price: time.

You probably get lots of free email that you don't read but which doesn't annoy you enough to unsubscribe. You probably gave away personal information to get the freebies. The Internet is basically free, but your behaviour gets tracked anonymously through cookies.

You can get library books free but popular titles have a waiting list and a seven day nonrenewable loan period (at least in Toronto). You pay in time, again. Television is free with commercials or ad-free with paid subscriptions.

There's nothing wrong with free, but you pay in some way. If lunch is free, count on listening to a sales pitch.

Different Prices For Nearly The Same

Have you noticed netbooks, the cute, light, inexpensive portable computers? Most models have nearly identical specifications thanks to pressure from Microsoft and Intel to cap the capabilities. For instance, Microsoft is chopping the maximum screen size from the current 12.1" to 10.2" for Windows 7.

Despite the similarities, you'll find surprisingly large differences in usability, design and quality. Unless you buy solely on price.

Think about macaroni & cheese. Prices differ when the ingredients differ. Real cheese costs more than simulated, powdered stuff. You'll also pay more in a restaurant than at home.

The Same Price For Very Different

Houses of the same price differ too. One place may have plenty of washrooms but use cheap carpet instead of hardwood. Or the kitchen may wow you but the guest bedroom may be the size of a large walk-in closet. Or the house may be perfect but on a major, noisy street.

Advisors

Advice differs because the advisors vary in quality. Professional designations and experience are often measures of quality. But not always. Either could be dated or irrelevant.

It's very difficult to identify the best advice since you're dealing with an intangible. Better ingredients usually mean better results, but some people can burn water.

Water Water Everywhere

Tap water is essentially free. That's the source of Coca-Cola Dasani and Pepsi Aquafina, but those brands cost more. Often more than soft drinks, which have the added cost of additional ingredients. If you like spending even more, there's Fiji natural artesian water and glacier water (which we drank free atop the Athabasca Glacier in Alberta).

It's all H₂O but if the choices were placed in front of you, which would you pick? Which would you want to pick?

Even if you normally drink tap water, what do you do when you're parched and there aren't any water fountains around? Price matters but so do many other factors. We don't always pick free or the cheapest.

Links

Podcast (4:11)

direct link | Internet Archive page

How Effective Are Tax Auditors?

noreply@blogger.com (Promod) — Sat, 03 Oct 2009 22:30:00 +0000

No one wants to get audited. Not even the tax auditors. But they get audited too.

The Auditor General, Sheila Fraser, looked at how the Canada Revenue Agency (CRA) audits Small and Medium Enterprises (SMEs). Despite 5,600 staff focusing on these businesses, earlier problems remain. As taxpayers, we want compliance with the rules to ease our tax burdens, which vary considerably by province, especially for entrepreneurs.

We're talking about big dollars. The CRA estimates there aren't many tax cheaters but those abusers cost us plenty. About $12.7 billion in unpaid tax according to their 2006-07 Annual Report. Of that, about $2.5 billion relates to SMEs.

Overall, the Canada Revenue Agency (the Agency) has made unsatisfactory progress in addressing the recommendations we selected from our previous reports for follow-up.
--- Auditor General, March 2009 Status Report

Sheila found the "taxman" fares poorly in

taxing the underground cash economy (targeted by 1,000 CRA staff): "about half of its underground economy audits over the past five years did not detect unreported income"
auditing too many low-risk files

Auditing The Wrong Files

The CRA "has difficulty demonstrating that it is selecting and auditing small and medium enterprises of high risk or priority."
--- Auditor General, March 2009 Status Report

The CRA uses computerized risk assessment to classify tax returns by the potential tax recovery into four categories from low to high. That makes sense.

However, the CRA focuses on low-risk files where they expect a $0 tax recovery. This is like targeting drivers going 0-10 above the speed limit but ignoring drivers zooming past at 50+.

In the last two fiscal years, the CRA audited 87,000 SMEs. Of these, 13% were tagged as high-risk and brought in 41% of the total tax recoveries. However, 56% of the audits were on zero or low-risk files and brought in 39% of the total tax recoveries.

"Available auditors may lack the experience necessary to do complex high-risk files and therefore audit lower-risk files."
--- Auditor General, March 2009 Status Report

What's going on? Among other explanations, CRA says their auditors are better suited to doing low risk audits. Also, audits do turn up problems even where tax recoveries are low. This is like a "broken windows" approach: tackle minor crimes like speeding and littering to prevent bigger crimes.

The CRA does not know why high-risk files bypass audits because the human screeners who make the ultimate decisions aren't required to document their reasons. Screeners favour their own judgement over computerized risk assessments. Human judgement leads to inconsistencies.

The Right Staff
During the Tax Roundtable in the 2008 CALU conference, a CRA official reported difficulties filling two senior vacancies in the Ontario audit unit. Why? The pay scale starts at $40,973 and caps out at $110,779. The private sector pays better. Also, tax auditors would rank among the least prestigious professions. Want proof?

At a party, announce that you're an actuary and people will leave you for fear of boredom. Say you're a tax auditor and watch them bolt even faster and go further away.

Cheaters

The study found that most people know little about the implications of tax cheating, and concluded that more communication would encourage better compliance.
--- 2007 public opinion research by the CRA

Honest taxpayers suffer. Cheaters prosper and encourage others to follow. Until they're caught. Let's see what happens.

Links

Auditing Small and Medium Enterprises by Canada Revenue Agency (Auditor General, March 2009 | 40 page PDF)
2009 Auditor General's Reports Released (KPMG)
Biography of Auditor General Sheila Fraser (about.com)
Mope, Gloat or Move: How tax compares by province
Surviving an audit: two lies and three tips
photo courtesy of Adam Ciesielski (Capetown, South Africa)

Podcast Episode 37 (5:45)

direct download | Internet Archive page

Three Steps To Keeping Financially Solvent

noreply@blogger.com (Promod) — Sat, 26 Sep 2009 22:27:00 +0000

It is hard for us without being flippant, to even see a scenario within any kind of realm of reason that would see us losing one dollar in any of those transactions.

--- Joseph Cassano of AIG on their credit default swap business (Aug 2007)

Well, a house of cards was never built for shock
You could blow it down in any kind of weather.
--- Dire Straits, Solid Rock

Julie Dickson addressed a sold-out audience at the Actuaries' Club of Toronto this week. She's the Superintendent of Canada's most important regulator, the Office of the Superintendent of Financial Institutions (OSFI). Her remarks were informative, interesting and have relevance for you. OSFI oversees the federally-regulated banks, trust companies, insurance companies and pension plans.

Julie was accompanied by my first actuarial boss, Stuart Wason, now a Senior Director at OSFI. We haven't met in years. During my summer job at Crown Life, I learned plenty from Stuart and Henry Essert. They inspired me to pursue my actuarial career. I'm in their debt and haven't thanked them enough.

Offend the tax department and you can appeal all the way to the Supreme Court. Offend OSFI and your company risks swift intervention. Don't expect much sympathy either.

Actuaries would be well served to sit up and take notice of the speed at which risk management expectations are changing.
--- Julie Dickson

OSFI's mandate is solvency: ensuring that financial institutions have enough capital to weather financial storms. How? By predicting the unthinkable, setting high standards, and intervening early. This process works wells in protecting the public and the politicians. Here only one financial services company cuts dividends (but they cut them in half).

You can protect your own financial solvency as you follow the four steps in wealth management. Let's look at three ways

predict the unthinkable
follow high standards
forget bailouts

Predict The Unthinkable

Your challenge as actuaries is to learn from the past but like your motto says, you need to "see beyond risk".
--- Julie Dickson

We underestimate risk, especially during periods of stability. Also, we fear the wrong risks. So we don't prepare for storms and get shocked when the tide reminds us that our castle was made of sand.

We can't predict and prepare for every disaster but we still benefit from planning.

We can look at different "what if" scenarios, especially the bad ones we like to ignore.

Suppose a car accident confines you to a wheelchair for life. What happens to your savings, your ability to work and your future earnings?
Suppose you're forced to retire five years early due to a layoff or ill health. What happens to your retirement income?
Suppose you live an extra 10 years or earn lower returns after tax and inflation. Would your money last?

You can examine your current and projected financial situation more regularly with your financial advisor. Ideally one who know how to stress-test your plans. Maybe you're following simple "rules of thumb". Changing conditions can make them obsolete. In Dumb Money, Daniel Gross identifies four simple but incorrect assumptions that leading to the financial crisis in the US.

Yes, we can over-prepare but we're more likely to do too little.

Follow High Standards

Life is going to be more challenging for "experts", and a premium will be placed on how well you can explain such things as actuarial reserves and capital.
--- Julie Dickson

Raise the bar on your risk management. Picking better quality investments does dampen the returns (the perennial risk vs reward quandary) but the chances of potential problems drops too. Diversification helps diminish risk too.

Canada trusts actuaries to apply principles, which requires judgement. The US prefers rules, which makes compliance easier to monitor. Since rules don't change quickly, companies can follow the letter of the law without following the spirit.

Forget Bailouts

You can take on extra risk if you've got someone to bail you out. Maybe you've got a kind rich aunt. The financial sector turns to us taxpayers. Without market discipline, companies can take undue risks with impunity. That's where we rely on the regulators.

We face four key financial risks: outliving your savings, dying too soon, getting sick and getting disabled. What are you doing about them now while you can? You are your own regulator (unless you have a spouse).

Links

The dangers of visiting OSFI's website
Text of Superintendent Julie Dickson's speech (PDF | Sept 23, 2009)
OSFI website
Only one Canadian financial services company cuts dividends (Reuters, Sep 24, 2009)
Fearing the Wrong Risks (with examples)
Finance Minister Jim Flaherty on the Economy and Financial Literacy
Keeping Promises: Do you care about Corporate Governance scores?
Our four key financial risks
The four steps in wealth management
photo courtesy of Simon Bond

Podcast (6:10)

direct link | Internet Archive page

How Advisors Fool You (and what you can do)

noreply@blogger.com (Promod) — Sun, 20 Sep 2009 00:00:00 +0000

You can fool some of the people all the time, and those are the ones you want to concentrate on.
--- George W. Bush

We're surrounded by companies and people who want to make money by fooling us. Look anywhere. The fine print taketh away. Restrictions apply. Supplies are limited. Previous investment performance is not indicative of future returns. Object magnified to show the fine detail. Limited time offer. Some terms and conditions apply. See dealer for details. Subject to credit approval. Excludes Hawaii and Alaska. New customers only. Subject to change without notice. May not be as illustrated. Penalties for early termination. Batteries not included.

We respond by becoming skeptical and cynical. We don't believe the claims and we don't know who to believe.

Congratulations! You Won $1,000,000.00

Did you ever receive a letter saying you won a million dollars? The first time, you might have believed. You at least wanted to believe. Did you tell someone excitedly and have them laugh at your gullibility? As you dug deeper, you realized the fine print said that's how a letter to you might look if you won by entering the contest. The fine fine print showed that your chances of winning were basically zero and that the contest was running for months and months. You also noticed the bulk mail stamp.

Won't get fooled again.

One To One

Folks are basically decent

Conventional wisdom would say
But we read about the exceptions
In the papers every day
--- Rush, Second Nature

Companies likely meet the letter of the law but perhaps not the spirit. You can find countless examples of shocking behaviour in Ellen Roseman's blog and at Consumerist. When you're dealing with an advisor, it's tough to gauge how much they know and if they truly have your best interests at heart.

I see life insurance proposals that are incomplete to the point of being misleading. Or assumptions distort the results. Or apples get compared with mangoes. Or no comparison is made with other options. Or the fine print has been left out.

Your Solution

You're not helpless. Here's what you can do: ask for a copy of the details.

Even if you don't think you'll understand them. Even if you're not planning to get a second opinion.

You're really after the advisor's reaction. Is the advisor willing to comply? If not, what are the "reasons"? How long does the advisor take to reply? Did you really get what you requested? Were pages left out?

Be sure to ask for this information by email along with a copy of what you've already been shown. What the advisor does may delight or disturb you. At least you'll know now.

The fine print taketh away. So does the lack of fine print.

Links

How to evaluate a proposal from an advisor
image courtesy of Miroslav Nagy

Podcast (3:47)

direct download | Internet Archive page

Toodledo does more than Remember The Milk

noreply@blogger.com (Promod) — Sun, 13 Sep 2009 02:22:00 +0000

You can't risk forgetting tasks. Maybe you’re a student back in school or a business wrapping up your fiscal year. Either way, you need a system to remember.

Last year, I looked at web-based task managers and picked Remember The Milk (see The Friendly Way: Remember The Milk and Everything Else). This year, I didn’t renew. What happened?

I switched to Toodledo instead. Here’s why.

Remember The Milk (RTM)

RTM feels friendly. You almost feel like organizing. The clean interface deceives you with its hidden power but never feels intimidating. You can even use RTM offline with Google Gears and synchronize when you’re back online. You can add tasks by email, voice (using Jott or Dial2Do), or your iGoogle homepage. You have access via your mobile phone. Some features are available only in the Pro version which costs a modest $25 US/year --- peanuts for you but bananas for mascot Bob T Monkey.

So why switch?

Subtasks
In real life, a task may have several steps or subtasks.

Say you want to brush your teeth but can't. You ran out of toothpaste because you didn't use an organizer before. You first need to buy toothpaste. Maybe you floss before brushing. Here's your task list

Brush teeth
a. buy toothpaste
b. floss

Get the idea? A simple sequential hierarchy helps.

RTM users have asked for subtasks since 2005. Nothing has been done and there's no workaround. Other organizers have subtasks, which puts RTM at a competitive disadvantage, but nothing was done last year.

If you’ve ever managed a project, you know there are tasks within tasks within tasks. For a big project, you might use Microsoft Project, but that’s excessive for most of us.

Enter Toodledo
What a weird name. It’s easy to say but hard to read and type toodledo.com. Your eye sees “too”, “led” and “do” but tooledo isn’t the name. Maybe the creators were being clever and converted “to do” into “toodle do”?

Get past the name and you’re confronted with a cluttered, ugly interface. It looks like the work of engineers rather than designers. Yet there isn’t a handy search box to help you find tasks easily. Functionality over elegance.

But what functionality! Toodledo has subtasks if you upgrade to Pro for just $14.95 US/year. Here's their comparison of To Do lists.

Toodledo has a timer which helps you track time painlessly. You may have allocated 30 minutes for something and find that your estimate was grossly off. This sytem lets you see how much time you really spent. You can't access tasks offline, but there's a workaround: you can print your tasks as a booklet by folding a normal page in a clever way. You can create goal chains, a technique Jerry Seinfield uses to keep writing jokes.

Which Suits You?

You can use most features of web-based task managers for free. This helps you pick the right one for you. Do you prefer Remember The Milk, Toodledo or something else?

Links

The Friendly Way: Remember The Milk and Everything Else
Comparison of online organizers (Toodledo.com)
Jerry Seinfield's productivity secret (lifehacker.com)
Getting Things Done (GTD): Three Big Lessons
Faster: How to deal with the rat race

Podcast (4:57)

direct link | Internet Archive page