With the Bush tax cuts set to expire next year, there’s going to be a big debate during the mid-term elections this November!  But, should there really even be a tax debate?  It’s obvious that we should NOT raise taxes on small business owners and higher income, hard working Americans in a nascent economic recovery!

Everybody knows roughly 47% of Americans pay no federal income taxes.  Hence, the ultimate solution for tax legislation is to strip away tax voting rights for the 47% of Americans who pay no tax, but who still get to enjoy the benefits of other people’s contributions.  If you’re one of the 100+ million Americans who pay no income tax, isn’t it good enough to enjoy free public schooling, nice roads, friendly firemen and police officers protecting your neighborhood?  Being thankful is a great disposition to have.  Being greedy is not.

An Example Of A Family Making $120,000 Paying No Taxes: Read more…

Hear that?  That is the sound of another self righteous employed person complaining about the unemployed sucking up resources and driving the government deficit further into the red.  Who cares employed people??  You guys aren’t the ones who are struggling to find a job in this economy!

There are several tautologies here:

1) Few can live a comfortable lifestyle off of unemployment benefits which average $200-3oo a week

2) The vast majority of people who are unemployed want to make more money, find jobs, and do something meaningful with their lives.

3) Our budget is headed towards a $1.4 trillion+ deficit, so who cares if we’re going to spend another $50 billion to help millions of unemployed people survive for up to 99 weeks?

THE BUDGET DEFICIT DOES NOT MATTER WHEN YOU HAVE NO JOB Read more…

Bloomberg highlighted an interesting chart stating that for the first time ever, working seniors outnumber teens in the labor force.  Currently 6.6 million people over the age of 65 are working or are looking for work compared to 5.9 million 16 to 19-year-olds.  Back in 1948, the numbers were only 2.9 million people over age 65 and 4.4 million teens, respectively.

This chart has enormous implications for the American workforce as people live longer and longer.  Let’s go into the reasons why there’s been a decline in teenage workers and such a rapid increase in older workers shall we?

TREND ANALYSIS Read more…

This is a guest post written by Mike, a financial planner / web entrepreneur who is pursuing his dream of running his online business. You can follow his progress at The Financial Blogger (RSS Feed) and read his other financial blogs at Green Panda Treehouse (RSS Feed) and Intelligent Speculator (RSS Feed).

3 years ago, I was told by many bloggers: “You will never make money blogging. And if you do, $200/month will be your highest peak ever”.

Three year ago, The Financial Blogger was averaging 500 visits per month and I was ecstatic when I made my first deal of $10 for a link.

Three years later, I now run three financial websites, bought 2 of them and flipped a blog within a year. I am now able to work 1 full day per week on my online business (while I still have to keep my “day job” in the meantime). I really like buying and managing finance blogs as I think it is currently one of the best investing opportunities we can find.

When I asked Sam if I could write a guest post for Financial Samurai, he asked me to include more details on how I appraised blogs and how do I decide or not to send $10K over the wire (or more!) simply to buy a “.com”.

Look at Blogs as a Real Estate Investing Opportunity Read more…

You guys know that the one and only data point I track religiously is the 10-year yield right?  Well, after the 10 year yield dipped below 3%, I went to the bank with a buddy of mine to go see how much money we could borrow.  The wiry banker sat us down like a loving couple and asked us to go through our finances at which point I kindly stepped out of the room and let him go first.  Five minutes later, he came out with a grin on his face, so I curiously went in.

I proceeded to disclose some of my finances, and he proceeded to tell me some curious news.  “Look here Sam, you can borrow up to $1.5 million dollars at a 5 year fixed rate at 3.75%!”

Holy moly really?  You mean little old me, just like that can borrow that much money at that low of a rate?  “So what’s the catch?”, I ask.

“Zero points, and $2,500 in closing costs.  But don’t worry, we are giving you a $500 credit for being a preferred member, and frankly, if you guys both take out loans, I’ll throw in another $500 credit,” said the banker.

“Done!  Where do I sign?, I ask as I think about the new Audi R8 I plan to buy with just $150,000 of the $1.5 million.  Or maybe I should be more conservative and spend $100,000 on the new 2011 Porsche 911.  Or actually, I heard the 2011 BMW  335i coupe is coming out for only $55,000 this fall.  With all the money “saved”, time for a bachelor’s trip somewhere fun!  (I’m still thinking to myself here).

NOT SO FAST FOOLIO! Read more…

Well, here we are!  It’s been six month since the original challenge was announced and I want to congratulate all of you for making it this far!  The network has grown to be a powerful one and now it’s up to us to harness it for the greater good  This is where the 2nd challenge comes in, which officially starts on August 15th when Yakezie.com is launched.

The 2nd challenge is simply to use the power of the Yakezie network to help others through monetary means or donations of our expertise, while at the same time grow our online revenue by various rates (i.e. 25%, 50%, 100%).  The good thing about percentage increase targets is that we can all challenge ourselves whether we have a $100/month site or a $10,000/month site.  More will be explained once Yakezie.com is launched.  The first challenge of getting our Alexa rankings below 200,000, and now below 100,000 still stands.  As long as we are part of the network, we should strive for progress or at least a steady state of satisfaction.

Some of the most interesting types of posts around the web are voyeuristic posts about what goes on inside the mind of the blogger.  Part of the reason why DVDs are such a hit is because of the “special features” section where you can watch outtakes and behind the scenes featurettes.  Many have asked whether I had a grand plan all along for this group, and the simple answer is no.  It was because all of you that the group flourished.  I’d like to share with you some of my thoughts as The Yakezie grew.  Perhaps you’ll do the same and post your own write-up as well!

DECEMBER, 2009 – BEFORE THE YAKEZIE.  Alexa Ranking 94,000. Read more…

As far as I’m concerned, the US economy is recovering handsomely.  How could it not with packed restaurants, and traffic that makes me want to pull your hair out?  The most anticipated IPO of the year is Facebook, which may very well go public for $20 billion plus dollars.  Meanwhile, the whole world is hooked on Apple products with iPads ($500-800) and iPhones ($200-300) selling like hotcakes.  Who needs yet another computing device?  I guess millions do!

There is so much money flowing into the Bay Area, it’s hard to imagine another financial crisis on the wing.  Yet, I’ve read plenty of posts on “steps to take when the next financial crisis comes” and I’m scratching my head.  Am I living in a parallel universe where every other car I see is a fancy German vehicle, and I can never get a reservation at my favorite sushi joint?  I feel like I’m living in a little optimistic bubble where the world isn’t falling off a cliff and is actually doing well.  Tell me if I am, because bubble living is delusional living at its finest.

The stock markets, although highly volatile have recovered some 50% from the bottom and generally serve as as a leading indicator for the economy.  Yet people are still talking about a double dip recession.  Yes, the biggest worry is stubbornly high unemployment, but you’ll never be able to tell if you walk the streets of San Francisco.

LOTS OF POSITIVE ANECDOTES Read more…

One of the most anticipated NBA free-agent announcements came when Lebron told the world he’s heading to South Beach to play for the Miami Heat.  Of the six teams coveting him, really only three stood a chance: Miami, Cleveland, and New York City for obvious reasons.  The other three teams: Chicago, LAC, and New Jersey will just be footnotes and forgotten.

What’s most interesting is not Lebron’s decision to make millions of dollars less to join two guys he thinks he can win championships with.  Instead, Lebron’s decision to completely spurn President Obama is what really gets me thinking!  No less than seven times has President Obama made a public statement insisting that Lebron join the Chicago Bulls. As you know, Obama was the Senator of Illinois before he became President.  Many pundits also believe that Chicago is a better candidate for Lebron to win championships with Carlos Boozer, Luol Deng, Derrick Rose, Brad Miller, and Joakim Noah.  But, nope.  Not Lebron.

If Lebron James, who is a huge Obama fan, doesn’t even listen to Obama’s words, why should the general public?  It wasn’t like Obama was saying go to the Minnesota Timberwolves where they have a snowball’s chance in hell of winning.  Chicago is a seriously legitimate team if not the best choice!

FIVE REASONS WHY LEBRON DOESN’T LISTEN TO PRESIDENT OBAMA Read more…

"Carried By The Wind" by Veronika Nagy

My nose plugs up and I can hardly breathe when I’m around cats too long.  I don’t know why I’m allergic, I just am.  One time I stayed over a friend’s place with three cats, and I woke up with red hives.  It was a surprise that I was able to fall asleep at all, because I could have sworn I sneezed over 100 times until the underside of my nose bled.

One of my best friends invited me over to visit her childhood home this fall.  Her mother lives near Boston, and unlucky for me another downside of East Coast living is the enormous pollen count.  I remember countless days when I couldn’t go to work because my allergies were so bad.  Ever since moving out West, my reactions have been much tamer.  The San Francisco Bay acts as a natural filter, sucking out stagnant air to sea.

In addition to being out East, my friend’s mother also has a couple of dogs and cats!  She sees this trip as a fun homecoming to introduce me to where she grew up.  To me, I have no attachment there and it’s like going to a gas chamber for vacation.  Imagine only being able to breathe through your two front teeth.  That’s how I feel sometimes when allergies attack.  You can’t get enough oxygen, so you aren’t able to speak.  You lose energy and let sleep take over even though it’s in the middle of the day.

THE QUIET PLEA Read more…

Here’s a short 10 minute video I stumbled upon which eerily highlights several things I do and why (ie play guitar), as well as touch upon reasons why some people are willing to do things for free, and others strongly consider giving up big salaries to just work on a hobby.

NODDING MY HEAD Read more…

Thanks to the invention of blogs and social media, you can intimately feel the summer malaise upon us.  To participate in the change in moods, I’ll be lightening things up a little bit.  I’ve always been kind of a joker and all this structured writing with beginning, middle and end is oh so well….. structured!  Also, to invoke Ralph Ellison’s Invisible Man from AP English class is going to the extreme of stiffness, right?  I’m not sure many really connected with the reference at all.

Who wants to read about the struggles of an African American man in the oppressive 1950s when everything is so hunky dory and harmonious nowadays.  I do, but I think most others don’t.  Does anybody even read the classics anymore?  A little Slaughterhouse V by Kurt Vonnegut or Crime & Punishment Fyodor Dostoevsky anybody?  Yeah, maybe 20 years ago, but not now.  Now, all we read are gossip magazines and blogs with bad punctuation (yours truly) that tickle our guts with spurts of information.

Hence, from now until the end of August I’ll be throwing a little wasabi on the teriyaki as they say in Japan.  I just made that up, but thought it sounded good.  You might read a little more rambling and a lot less structure as I attempt to change writing styles.  The Yakezie.com project is well underway and now is my time to goof around a little bit.

HIGHLIGHT POSTS OF THE WEEK Read more…

As a tennis fanatic, it would be remiss of me not to mention the greatest match in tennis history when American John Isner beat Frenchman Nicolas Mahut 70 to 68 in the 5th set last week.  That’s right 70 games to 68 games in the fifth set because one must win by two in the fifth set at Wimbledon.  The 11 hour, 5 minute match spanned over 3 days and finished when John Isner hit a solid down the line two-handed backhand to seal the deal.

The previous record for longest match was at the 2004 French open, lasting now just a paltry 6 hours and 33 minutes.  It is completely unfathomable that a match could last so long, simply because it is unconscionable how Nicolas Mahut could hold serve over 60 games in a row to survive!  The physical endurance is one thing, but what’s most impressive is the mental fortitude both players had to never give up.

LESSONS LEARNED Read more…

Despite an honest attempt to seek out more great things about the East Coast, several readers actually proceeded to bash the West Coast instead!  What’s up with that?  Some curiously mentioned that the East Coast is fantastic because the horrendous weather for half the year makes the other six months so wonderful.  Ummm, that’s like saying you appreciate your right hand more because you chopped off your left hand!  Wouldn’t you rather have both hands?

The only positive takeaway from the comments I agree with is the cluster of historically significant cities within a several hours drive.  Other than that, nobody came up with any stand out reasons other than the six I provided as to why East Coast living is great.  Given that the West Coast was attacked, I feel it’s important to stand up and defend our honor!

WEST COAST > EAST COAST Read more…

Even at 7:30pm the night is hot.  That’s what happens when you go barbecuing somewhere in the South Pacific in the middle of summer.  You can almost taste the grilled chicken from the remnant fumes simmering off the grill.  Dinner is served!

The family gathers around the picnic table.  We take a deep breath and begin to eat.  In just the first bite, my father freezes, tries to swallow and let’s out a little gag.  We ask him what’s wrong, and he shakes his head not knowing.  One of us gives him a glass of water, and still, no change.  My father raises up his hand, excuses himself and says that he has to go to the emergency room.

DOUBT AND CONFUSION

Read more…

The following is a guest post by Hime, one of Financial Samurai’s first readers.  Hime is a manager at a strategy consultant firm who likes the violin and going on unplanned adventures.  Hope you enjoy!

All right everyone, how many times have you read an email and said to yourself “I don’t feel like replying now I’ll just do it later” only to have that email disappear into the deep abyss and completely forget that you left the sender hanging?

Come on, I know you’ve done that at least once.  If you do that more like every third email – CLUNK!  That is me hitting you over the head with an oversized rubber hammer as I resist the urge to shake the stubbornness out of you.  Think I’m overreacting?  Maybe a little but I am trying to save your career and relationships so please pay attention!

DON’T LEARN THE HARD WAY Read more…