10 Helpful Financial Moves To Make Every Year

Financial Moves To Make To Get To Santorini

Cheers to the best time of the year!

The end of the year is always the best time to reflect and plan. I’d like to share several financial moves you should make before the new year in order to protect your wealth and hopefully grow your wealth in a risk-adjusted manner next year.

Those of us who invested in stocks, real estate, and many other asset classes except for oil should be feeling fortunate. But don’t forget that good times seldom last forever. Never forget the Armageddon days of the 1997 Asian Financial Crisis, the 2000 dotcom implosion, and the housing + financial meltdown that began in 2008. Those of you who haven’t been investing at all better get ready to deploy capital when chaos returns, or else inflation will eat your wealth alive.

If you just started investing in the past five years, lucky you! Don’t worry. Your beat down will happen eventually. But like every beat down, things always get better over time. Look at all of us old farts who are still around.

Career Advice For Women From Female CEOs

HappinessOne of my goals in 2015 and beyond is to publish new forms of content such as infographics, short essays, podcasts, and comedy. I’m working on the podcast part (takes forever), and I can write short and long form content with some comedy infusion no problem, but I’ve got no graphic skills other than being able to draw an arrow. The solution I’ve found is to simply ask permission from relevant personal finance companies to be able to republish their infographics.

It’s an amazingly small world because one of the leaders in producing infographics is a company called Visual.ly, also based here in San Francisco. They raised a $8.1 Series A round of funding in January 2014 from well-known VC investors such as SoftTech VC, and Crosslink Capital. I think they charge anywhere between $1,000 – $50,000+ for a customized infographic! With companies the world over spending more on content creation, they are in a sweet spot for growth.

You might think I’m crazy for continuously encouraging folks to move to expensive San Francisco to find their fortune since starting Financial Samurai in 2009. But I’m pretty confident that if you work hard, develop the right skill-set, and get on that $120 Greyhound bus from anywhere, you will have a terrific chance of finding your fortune here.

Lending Club in SF is now worth over $7 billion after its IPO pop. I could have joined them three or four years ago, but didn’t like a donkey. HortonWorks in Palo Alto went public, despite losses of $80+ million this year. Then there’s Box, Dropbox, Uber, and Airbnb in the pipeline. A $40 billion dollar valuation now for Uber from just $18 billion at the beginning of 2014 is amazing! It sure feels frothy when companies are valued on price-to-sales multiples instead of operating profit multiples, but you might as well ride the wave and get off before it crashes.

Do You Feel It’s Our Duty To Help If We Can?

A helping hand Financial SamuraiI’d like to be fabulously wealthy. So wealthy that I wouldn’t think twice about taking a taxi home or booking a first class ticket to Europe on my next adventure. Alas, I still ride coach with terrific strangers who take both arm rests even though I’m sitting in the middle. It would be nice not to have to pontificate for years whether or not I should finally buy a new car. It would be lovely not to get upset about speeding or parking tickets.

To the mansion, Alfred!” would be a fun phrase to say once in a while.

But I’m happy because the journey is a riot. To be able to share stories with all of you makes life so much more fun. I swear, if I wasn’t already writing for free online, I’d consider paying Al Gore, the creator of the Internet, the right to continue publishing online every month!

So I got to thinking during hot tub time one day whether we all have the duty to help if we can help.

Candid Reasons Why You Didn’t Get The Job According To HR

Rejected From A Job

Rejection

There’s too much demand for any one job position. It doesn’t matter whether you are applying for a job as a barista at Starbucks, or as a marketing director at a tech company. If you get the job, it’s like winning the lottery. When demand is too great, companies deploy very quick and easy screening mechanisms to whittle down the pool. At Goldman, unless you were the son or daughter of a client or high level employee, you had to have at least an A- GPA to be considered for an interview. At least that was the case with my class in 1999.

Goldman hired roughly 60 Equities financial analysts total around the world my year. Somewhere around 8,000 candidates applied. By screening schools, GPA, and legacy, HR told me they culled the pool down to about 600 potential candidates for phone interviews, alumni interviews, and Super Day in NYC. Without screening mechanisms, the hiring process would take even longer than it already takes (my interview process took eight months).

Given the post, “Why It’s So Hard To Get A Mortgage According To A Loan Officer” was such a hit, I’d like to share with you some candid feedback I’ve received from several HR managers during my time.

Bankers, Techies, And Doctors: You’ll Never Get Rich Working For Someone Else

Although I estimate an entrepreneur needs to make at least 35% more to replicate his or her day job income to run in place, I’m truly beginning to realize after two and a half years how much more upside there is to entrepreneurship than to working for someone else.

I came from the world of banking where 23 year old graduates with one year of experience can clear $100,000 no problem. Despite ascending from Financial Analyst, to Associate, to VP, to Director within 10 years, and earning Director level compensation for three years before leaving, I still wasn’t able to earn and save enough money to buy my dream home in Kahala, Oahu.

Dream House In Kahala, Oahu, Hawaii

Contemplating on never being able to afford my dream home

The above is a picture of me sitting on a lanai, looking down the southeast coast of Oahu towards Koko Head. The home is on Blackpoint Road in the exclusive Kahala/Diamond Head neighborhood. Since I was a kid, I’ve always dreamed about living here one day. But I’ve come to realize my childhood dream will likely never come true.

The asking price for this 6,000 sqft Kahala home with 4 bedrooms and 4 bathrooms is $3.5 million ($583/sqft). The lower level is a 1,800 sqft rental apartment that is going for a below market rate rent of $2,500 a month. The main house is therefore not that huge. $3.5 million is actually great value given the view and the size of the house. Other houses in Kahala are easily asking for $900/sqft or more.

If I had $4 million cash, I would buy this house in a heartbeat. It needs at least $300,000 in renovations given it is quite dated. But the lanai and the spectacular view are priceless. All I think about when I’m looking for my dream home is being able to sit outside in 72-85 degree weather with an ice cold beer and write about various adventures.