Financial Samurai

The luckiest people on earth are those who don’t make a lot of money.  They’ve got very little downside and can really pursue their childhood dreams.  Imagine if from the moment you graduated college, you landed a plum corporate job that paid just enough to keep you motivated, but not enough to enjoy your freedom.  The longer you work the more you realize there’s really no escape, because there’s simply too much at stake.  This is the problem that plagues my friend, Lyndon.

THE STRATEGY CONSULTANT WHO MAKES BANK Read more…

Back in the 9th grade, I remember goofing off quite a bit with my buddies.  We skipped class, stayed out late, and essentially did a lot of stuff that was detrimental to our grades.  Despite working with plenty of Spanish speaking colleagues during my part-time job, I still only got a “C” in Spanish because I didn’t care.   All I wanted to do was have fun, and fun is what I had!

My parents spoke to me one evening and asked, “How are you ever going to be a great business man if you can’t even get an “A” in math?  Do you think award-winning scientists get “C’s” in high school chemistry?  Do you think Andre Agassi doesn’t practice hard every single day?”

The questions stuck with me because ever since I was 12, I wanted to be a “business man.”  I remember getting picked up in a sweet Mercedes 300 SEL by one of my father’s friends to take us to their mansion party.  The whole experience with the infinity pool, car, food, and servants made me want to do what they did, whatever that was!

After the pep talk, I began caring about my grades through college.  I didn’t want a silly thing like grades to get in the way of my dreams.

THE QUESTION TO ASK ALL PEOPLE Read more…

Friday’s post entitled, “The People Asked To Get ROCKED And A Boulder Fell On Their Heads” wasn’t supposed to go up.  I’m trying to limit the amount of big government love related posts, but “every time I try and get out, they pull me back in”!  Let the record show that I’m not against Democrats, I’m just disappointed in the system.  I do apologize to readers for the John Edwards of the world though.  At least politicians make life a little less boring.

The Samurai Fund is down 2.7% YTD, which compares favorably to the S&P 500 down 3.7% YTD.  Still, losing money is disappointing and I wonder if we have to change our outlook and investments given the anti-capitalism rhetoric by the government.  Should we raise cash?  Sell some of the winners?  Need some thoughts from the contributors and readers in general who have investments in the markets.

Perhaps now is the best time to open up the fund to 2 or 3 new entrants given the declines.  I will need help from someone to do a screen shot each week, because my 12″ monitor on my rocking 5 year old iBook G4 can only fit 17 entries!

The Freedom Fund continues to chug along slowly, with a $2,000 increase for January.  Nothing special, just savings from cash flow.

VIDEOS AND POSTS OF THE WEEK Read more…

A reader e-mails in, “FS, I’ve just had one of the worst freaking days of the year today at work. I’ve been busting my butt for this one client for the past 6 months, and when it was time to do their semi-annual review, we actually got worse in their ranking. To add insult to injury, they also provided some negative feedback, and I’ve known this client for so long. I thought we had a good relationship. I’m so mad because I’ve spent double the effort on them this year, and went backwards. They aren’t even a big client! What would you do? Thanks, Frustrated.”

Hi “Frustrated”, I’m sorry to hear about your situation. I’ve been there before, many of times, and all I’ve wanted to do was give up and yell. What’s important is to NOT act emotionally. Go for a walk, grab a drink, and take some deep breaths before you e-mail/call the client or discuss the issue with your manager. Too many times, people write things they don’t mean in the heat of the moment and end up regretting their actions. You must go about this in a rationale manner.

5 Suggestions For Handling A Difficult Client: Read more…

ILWU May Day Strike

Back in 2002, the Oakland longshoremen went on strike because they were against new technology which cut jobs as well as to protest the Iraq war.  The issue was quite contentious, and it was a matter of “national security” the union get back to work according to many politicians.  What I remember most clearly, however, were salary figures that just boggled my mind.

According to widely spread documentation at the time, the International Longshore and Warehouse Union (ILWU) required their longshoremen to work no longer than 35 hours a week.  Furthermore, it was cited that the average income for an Oakland longshoreman was between $100,000-$120,000, with many senior employees earning $160,-190,000.  When I read the news, it was about 8pm and I had been in the office since 5:45am.  For that one day, I dreamt I was a longshoreman.

Right across the Bay, there are 448 San Francisco city workers who make over $100,000 a year, and that’s not from working.  $100K+/year are their annual pensions!  Top earner is retired Chief of Police, Heather Fong, who makes a tidy $229,000/year.  Over at the Fire Department, 246 former employees or their survivors are receiving pensions of $100,000 a year or more – with 15 topping $150,000. Read more…