Financial Samurai

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…

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…

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…

If I’ve learned anything in the work place, it’s that most people simply want recognition for a good day’s work.  Pay and promotion are secondary to a simple gesture of a pat on the back or a “well done.“  Yet, why is it that praise is so often lost in the shuffle?  When just saying “thank you” is so easy and cost effective, silence often replaces.

I remember going through a rough stage in my career where I felt invisible.  Like Ralph Ellison’s protagonist in the Invisible Man, even with 1,369 light bulbs shining brightly around his basement room, he still felt like nobody noticed.

“I am a man of substance, of flesh and bone, fiber and liquids – and I might even be said to possess a mind.  I am invisible, understand, simply because people refuse to see me.” This quote has stuck with me for well over two decades since first reading Mr. Ellison’s 1952 classic in high school.

THE MYSTERY Read more…

Every year, there’s inevitably a headhunter or a competitor who gives me a ring to ask whether I’m interested in leaving my current firm for a hefty salary increase.  And every year I turn them down because I respect the people I work with, like the camaraderie, and believe in my firm’s management and future.  My 10th year anniversary is coming up, and just like how I freaked out for a couple days before turning 30, I’m starting to wonder whether I’ve become too content and also too comfortable with what I have.

Dodging bullets is a myth, but I can safely proclaim that I dodged at least one bullet by not taking an offer from a firm that inevitably went bankrupt.  Phew, I sometimes remind myself.  But, what about the other firms I wonder.  If I joined them, would I be making more money and doing more in my career than ever before?  Maybe, I don’t know.  What I do know is that many who have job hopped have indeed made an incredible amount more and rocketed their careers than if they had stayed.

LOYALTY CAN BE OVERRATED Read more…

Dear Readers,

It’s been a wonderful journey so far and I want to thank you for visiting my tiny slice of the matrix.  We may not always agree, but that’s the beauty of it all.  Through differences of opinion, we’re allowed to learn from each other and flourish mentally, and hopefully financially as well.  Besides, it’s not like I’m going to hold your puppy hostage or something if you challenge my opinion!  Hope you feel the same.

Sometimes it’s hard to to respond to all of your wonderful comments (7,100+ so far), yet I will always try.  I wish there was an easy way to tag all of the most interesting comments and show case them.  Perhaps I still will!  It’s so fun to visit other sites, comment, and interact, I want you to experience the same here.

Each blog has a different personality and tone to it.  I’d like to think that Financial Samurai is unique with a flavor that challenges conventional thinking.  We can go back to basics regarding budgeting, savings, and retirement planning.  Or, we can continue blazing new trails.  It’s really up to you frankly.  What would you like to read more of going forward?  Generally we should enjoy writing what we’d enjoy reading.

Finally, I thought it would be fun to dedicate this song to all the female readers who helped share their viewpoints.  Five String Serenade was composed by Mazzy Star in her 1993 album, So Tonight That I Might See.  The original plan when I learned Five String Serenade 12 years ago was to sing to a girl after an evening picnic on a beach somewhere.  I never got the chance until recently, and now it’s been recorded, in my own version for you.  Funny how things never turn out quite like you plan.

Here’s to another 200 posts!  Thank you again! Read more…

While waiting at the dentist, I picked up the April issue of Inc. Magazine and stumbled upon an article entitled, “The Secret Of Their Success.“  The article discusses what really drives salespeople to succeed.  We are all salespeople, whether we know it or not, which is why being a happy loser helps bring out the best in everyone.

Clotaire Rapaille, a psychoanalyst and ethnographer describes a happy loser as someone who sees rejection as a challenge.  The first “no” stimulates their brains to want to try harder and not give up.  Clotaire highlights one example where a firm defines success not by how many wins a salesperson achieves, but by how many rejections instead. Read more…

I’ve been a little more active on Twitter recently and I noticed something quit interesting.  Starting at around 10pm PST, the chatter goes silent.  I tend to stay up until midnight to 1am, and because nothing is happening on Twitter, I focus my attention elsewhere.  I usually wake up sometime between 5:30am-6am and spend time checking e-mail, responding to comments, stretching and seeing what’s going on online.  Again, absolute silence until about 7am PST when things start coming alive.  Where is everybody during the silent times?  Sleeping?

There was a time where I’d sleep 7 or more hours a day, but no more.  For the past 10 years, my body automatically gets up after 6 hours of sleep and never later than 6:30am on the weekdays, and 7:30am on the weekends no matter when I go to bed!  Poker until 3am? Good morning sunshine at 7:30am!  Actually, I wish I could sleep in until 9am, but I just can’t.  Part of the reason for my automatic clock is that I eat regularly, and therefore have the desire to use the restroom regularly.  Time to go, my body says and I get up.  Unconsciously, there must also be a strong feeling of guilt that I’m wasting my life away sleeping.

7 HOURS A WEEK LEADS TO 30+ HOURS MORE A MONTH Read more…

The following is a guest post from @NealFrankle of Wealth Pilgrim.  Neal is a Certified Financial Planner, a fellow Yakezie member, and all around good guy.  Hope you guys enjoy!

During strong markets, anyone can make money. During weak markets, everyone gets hurt. For the most part, all ships rise and fall with the tide, financial adviser or not.

So what’s the point of having an adviser?

(I have my own answer to this question and it may surprise you.)

But before we get to my answer, let’s explore the wild and wonderful world of financial advisers and our clients.

1. Financial Advisers are Salespeople. Read more…

My mother is a white cloud.  Every time I see her, she smiles even bigger than I can ever smile.  She loves to talk stories about any of life’s teachings she’s discovered, and I generally just keep quiet and listen.  Sometimes I don’t understand everything she says, but that’s OK.  It makes me happy just knowing she’s happy imparting wisdom onto me.

One of the holiday presents I got my father was a signed copy of Andre Agassi’s autobiography, “OPEN.”  To me, the book was gold, because Andre is my idol.  It was my only copy, and I decided to give it to my father because I remember him loving to read and enjoying the game long ago.

When my father opened his present, he did thank me and showed his appreciation.  However, a week later, the book still lay on the coffee table unread.  Somewhat dismayed that Agassi was being ignored, I spoke to mom about perhaps taking the book back since I cherished it so much.  She mentioned her unused Barnes & Nobles gift card and had an idea.

Later that evening, my parents went to the Mall for date night without us.  Apparently, Carl’s Junior had a two-for-one special and my father was just dying to go!  When they returned, my mother brought me over to the kitchen and told me, “Shhhhhh, take a look at the book.  I bought another copy of “OPEN” and swapped it with your signed copy, so you can take it home!  Dad will never know!” We laughed so hard it hurt and gave each other high fives!  My mom was right, dad never found out.  Mom, who knows very little about tennis, was encouraged by my enthusiasm she even read “OPEN” before dad!

LESSON LEARNED Read more…

Oh, the monotony of it all!  Imagine clocking in, day in and day out with really no change to your job.  You’ve got little risk of getting fired, and in 10 years you’ll retire with several million to last you a lifetime.  In the back of your mind, you wish you didn’t have job security because you despise boredom.  At the same time, you realize you’ve got it made and shouldn’t be so spoiled in your thinking.

One day a headhunter gives you a ring asking if you want an opportunity to make 50% more money a year guaranteed for two years.  The catch?  You’ll be working for a start up with no such promises of job security after year two.  You’ll also have to move to a different city where the cost of living is also 25% higher.  The hours and stress will most certainly more as well.  Welcome to Kathy’s world.

10 YEARS COMPLETED, 10 YEARS LEFT TO GO Read more…

A fantastic topic came up over dinner one day regarding how to increase job security in today’s highly volatile economy.  The usual tips came up, such as: be invaluable, develop strong internal relationships, and never call in sick on a Friday (slacker).  All tips were logical, but the more we drank, the more out of the box we thought until we reached the best employment insurance strategy of them all: Make babies and start a family!

Starting a family could be the #1 way to ensure long term employment.  With a family, your employer must not only consider your situation, but the situation of every single person you support.  The more kids you have, the more bullet proof you become!  Imagine a scenario where your boss is faced with firing 10 employees out of 100, or 10%.  How do you think she chooses?

HOW MANAGERS THINK BEFORE FIRING YOU Read more…

Every large corporation has some type of annual “Diversity Training” course where we learn not to harass colleagues, send out crude jokes over e-mail, and discriminate against those unlike ourselves.  Everything generally makes sense except for one rule that I once read: “One shall not discriminate against someone over 40.”  I thought about this for a second, and I began to wonder if they had made a typo.

At age 40, one will have worked for 18 years out of college or 15 years out of graduate school on average.  If the accepted age of retirement is 65, or 25 years away from 40, then the rule is implying that age discrimination starts before you are even half way through your average 40 year long career!

The other interesting fact is that most people are living longer nowadays.  Forties are the new thirties as they say.  People are looking younger and younger at various age milestones.  Hence the question, why 40?  Let’s explore the various reasons.

NEGATIVE PERCEPTIONS ABOUT OLDER WORKERS Read more…

Insensitive statements by Senate Majority Leader Harry Reid (D) not only infuriates many, but also raises one titillating question: Why isn’t President Obama considered white? Obama’s mother is white, and his father is black.  He relates more to his white side of the family given his father left him as a child.  Hence, isn’t it logical to think Obama is more white than black?  Let’s see if we can change Obama’s default setting to the world.

THREE SUGGESTIONS AS TO WHY

1) “He doesn’t look white.”

Well, what does “white” look like?  Yes, Obama doesn’t look like a Norwegian Viking, but you can still tell he’s mixed.  Since when does being half black mean that he’s full black?  If a white person is only supposed to look like Tiger Wood’s wife Elin, then we need to revise what the definition of white is. Read more…