Samurai Reflections of October & Goals for November

"Fall" by Step Into Color

“Fall” by Step Into Color

Just like that, another month has come and gone.  I’m determined to make November as productive a month as October.  Who’s with me?  Below is a recap of October and what’s in store for this month.


“We’re Ignorant Idiots!  Tell Us Why A Flat Tax System Isn’t Fair!” - Is the first post to break the 100+ comment barrier as folks argue passionately about why we are ignorant idiots!  Thanks  Larry, Roger, Steph, Fredt, Matt, Kevin, BG, FB, Jon, Mike, Wookie and all of you for chiming in so passionately!  The key takeaways from the comments are: 1) Most are opposed to a flat tax system for some odd reason :) 2) An introduction of a “wealth tax” and/or “national sales tax” seems more equitable but frankly unfeasible 3) The really rich pay less taxes because most of their income comes from long term capital gains which is currently being taxed at 15%!

“What Renting DVD’s Teaches Us About CD Yield Maximization” - This is an original concept that slaps traditional CD laddering strategies in the face.  It was interesting to see the post picked up by The Bogleheads forum and debated there since those guys are usually hardcore on financial issues.  The bottom line: Regardless of the interest rate environment, one’s CD money should always be invested in the longest term duration possible.

“Party Like It’s 1999!  10 Key Takeaways From This Recession” - The recession is officially over as we grew 3.5% year over year (YoY) in 3Q09.  As we move into 4Q09 and 1Q10 results season, earnings will see a material YoY pick up partly due to low comparables from 3Q08 and 1Q09 levels.  Accepting the economic recovery is one thing, but investing new money in the markets at these levels is another.  I’m staying very defensive as I believe November is going to be another volatile month, vulnerable to a pullback.

“The Worst Seat On An Airplane Is The Best Seat In The Office” - This is a very simple but highly effective concept for those in offices who wish to increase their recognition.  If ever you have an office move, or see a spot near the rest room, take it!  You can buy me a beer 1 year later when you become the most popular guy in your office.

“The 30/30/3 Principle For Home Buyers To Follow” - Home buying is such an emotional decision, to counteract irrational thinking, we offer a simple guideline to follow before mortgaging your life away.  If everybody followed the 30/30/3 principle, we never would have had such a blow up in the economy.  In fact, the government should introduce a bill mandating a minimum amount of financial fitness before people can spend a multiple of their yearly income on housing.


And The First $1,000 MBA Giveaway Winner Is………..

The first winner is Eric, a senior from UCLA!  Eric commented sincerely about his concerns post graduation, and whether or not it is a good idea to go to a “2nd tier” business school or just work for whatever company that hires him first.

We’ll be working with Eric to strategize a plan after UCLA and coach him through the process of finding a job in his desired field of finance, or applying to business school.

You’re Rejected! How I Use Rejection To Motivate Me Every Single Day

Unless you’re perfect, there will be times when things don’t go your way.  You’re last to be picked in PE class, Yale says, “thank you, but no thank you”, and your girlfriend/boyfriend dumps you for another man/woman.  Do you start sulking?  Or do you get up, get angry, and prove to yourself you’re worth it?

Some people are so afraid of rejection, they never put themselves out there.  They reject themselves before even giving others a chance!

Lame Excuses:

“Why would this school accept me?”

“Why would she want to talk to me?”

“I don’t deserve a raise so I’ll never ask.”

“I’m not good enough to work for this firm, so I won’t bother applying.”

“What if everybody thinks what I say is stupid?”

“My writing is horrible, why would anybody want to read anything of mine?”

These types of thoughts crush dreams, lead to low-self esteem and mediocrity. 

Change the way you view rejection with these 5 strategies:

Financial Samurai $1,000 Giveaway & Your Chance To Make Millions Over Your Career!

“It’s not whether you have your MBA, it’s where it came from,” writes John Micklethwait, Editor-In-Chief of The Economist. I’m sure on at least two levels, he’s upsetting people. On one level, those without MBA’s are going to find it presumptuous that getting an MBA is a foregone conclusion.  On another level, there are thousands of MBA grads who didn’t attend the top tier schools who will take offense as well.

NA_table2-1 John is smart to be so opinionated because after all, the people who will be buying his magazine are those who have always wondered whether getting an MBA is a good idea.  He forces the assumption that if you picked up his magazine, you must get an MBA, and not just any MBA, but one of the top schools from his polls.

I don’t entirely agree with John, but let’s face reality, getting an MBA is gradually becoming the new standard for newcomers to the world of finance because some go-getter decided it was the right thing to do and succeeded to get others to follow.  The MBA is also too expensive to not try and go to the best school possible (although it’s not the end of the world).  The inertia is too strong to reverse now!

Here are some of the takeaways from the magazine:

The Latest “Did You Know” Video for Fall 2009

Fascinating video about the progress of technology and social media that everybody should know about.  This is my first attempt at posting up a video, so I hope it doesn’t blow up my site.  Thanks Gen Y Investor for the tips!

For all those who don’t know how to put up a video from YouTube on your site, simply go to your YouTube video, copy the HTML code on the right, past it into your HTML tab in your WordPress, click back to Visual, and edit accordingly!

Tomorrow we will reveal our $1,000 giveaway for those aspiring to get their MBA.  Even if you don’t want to get your MBA, you might know someone who does so stay tuned!


Readers, are you ready for the next 5 years?!


Financial Samurai – “Slicing Through Money’s Mysteries”

Follow me on Twitter @FinancialSamurai