Posts Tagged ‘finances’

Financial intelligence

laelene Posted in general blog，Tags: , , , , ,
21 May 2010
0

My mom lectured me about smart financial moves today and though I was tired and didn’t really want to think about it, she makes a good point.   I can save a lot of money if I take advantage of tax breaks, save and invest wisely, and limit my spending.   At this point, I don’t really want to think about it and plan for it, but it really is the time to start as I get a steady paycheck.  Unfortunately (and despite one of my majors being Economics), I’m not really interested in the financial field and have little patience for all the complexities of it.   At the same time, I can save a lot of money by knowing how to handle my money smartly and not pay a financial advisor to figure that out for me.

It’s a bit of a dilemma because I just don’t have the interest, but the stakes are pretty high and the ultimate benefits do warrant a closer look.  As of now I’ve been letting my Roth IRA money sit there, whiling away, but what I need to do is invest it in a somewhat aggressive mutual fund or index or something.  There are many other things to do, such as figure what areas of tax avoidance I can take advantage of (note that that’s not the same as tax evasion, which is illegal).  I need to put in a lot of time and effort into this area, but I just don’t have the interest.  I wish I could just let someone else handle it, but why spend good money on something I can learn myself?

At least if I start early in my working life (like now), I’ll be setting myself up for a better future that will be able to ride out the periodic financial downs.  I just wish it wasn’t so complicated.

Fire in the soul

laelene Posted in general blog，Tags: , , , , , , , , , , , , , , , ,
31 May 2009
0

Perhaps it is time for some soul searching of sorts (in terms of career potential).

Demoing health food forever?

Demoing health food forever?

A few weeks ago, Starfish requested a list of my passions to help me figure out what I want to do and where I can go.  It was surprisingly harder than I thought – after all, who doesn’t know what they love, right?  Yet, it seems that my trouble is what I truly love not always being a viable source of work to pursue.  First let me share what I came up with:

~ emerging forms of media (especially social media at the moment)

~ people’s stories (whether hearing them or sharing them)

~ observing people (their behavior, interactions, and body language)

~ novel things, places, and experiences (travel, broad interactions)

~ health issues (diet and exercise/fitness, organic/all-natural foods)

~ environmentalism (conservation, recycling, and sustainability)

My darling Simon.

My darling Simon. How can you not find him adorable?

~ volunteering with animals (mostly cats)

~ background/support work (researching, planning)

~ the military (particularly the Marine Corps!)

Ok, so where does that put me?

1. I’ve hardly used social media enough to claim expertise as so many do.  However, I am very dedicated to my blog and have made it a point to post on a daily basis.  Still, at best, this would be a supplementary service for some sort of package integrated marketing consultation service.

2. Though I like to hear people’s stories, I’m certainly not interested in journalism nor do I feel like the right vessel to help share those stories.  I’m also not that great a storyteller.  I have had dreams about talking to homeless people to find out how they got into their situation and then helping to groom them to reintegrate to society.

3. Noticing the little nuances in how people go about their days doesn’t exactly translate into a career and is more of an enhancement to how I learn to deal with people.  Maybe I’ll start a little side blog with snippets of the things I observe.

One of my favorite views - out a plane window.

One of my favorite views - out a plane window.

4. Being introduced to new people, new places, and new things would be a cool temporary thing to do or a nice addition to my job, but isn’t exactly a career in itself if I want to settle down.  This is where my dream of competing in The Amazing Race comes into play.

5. I’m not enough of a fitness or health food nut to delve into this so deeply.  At best I could be an advocate for eating less meat to save the environment, eating organic and local to save your community, and exercising regularly and eating well to save yourself.

6. I’ve been doing a lot of research and reading in the green field, since it is what I want to build a company from sometime in my life.  Starfish made a very wise suggestion in mentioning I can start to attend conferences of the sort, get involved in the field.  I’ll certainly be looking into that (hopefully there are free ones).  I’ve been meaning to go to the UCLA Institute of the Environment to see if there’s anything I can get involved in.

My precious Jerriey.

My precious Jerriey. Great for stress relief.

7. I actually started looking at cat sitting services and boarding houses to see the rates they charge at.  I’m not sure how I would handle spending time with all these adorable felines and not getting to keep them.  I think I’m more of a cat owner at heart, though I do like to go play with and take care of them at shelters.

8. Researching and other support work is yet another one of those things that I prefer to use to enhance my work rather than to define my work.

Yeah, I wanted to be one of them. The first Marines I ever encountered.

Yeah, I wanted to be one of them. The first Marines I ever encountered.

9. Once upon a time I had fantasies about being a Marine.  Then lots of things got in the way and I decided that I was not meant for that path.  However, my love/obsession/fascination for the military will always be strong, so I’d love to find a way to work with them.  At one point I considered trying to do their marketing.  That’s still an option…

What really invigorates me?  Sitting at my computer reading articles about green technology, environmentally-friendly

One of the half dozen military boot camps I want to. That's me holding the red guide-on!

One of the half dozen military boot camps I went to. They're strangely invigorating for body and mind. That's me holding the red guide-on!

products, and fresh wholesome natural food.  Spending time with and observing animals.  Traveling around the world and getting a peek at the lives of others so different from mine.  Hearing about the interesting backstories of people’s lives.  Spending time alone pondering and introspecting; also, watching people pass me by.  Contemplating (and trying to go out and do) fun ways to be fit and well.  Hearing about anything related to the military.

What I’m really looking for is freedom.  Freedom to sleep in and stay up ridiculously late.  Freedom to get work done in different places on different days.  Freedom to meet new people and learn new things all the time.  Freedom to step away from society.  Freedom to be on my own.  Freedom to think.

At the same time, I want financial security.  Enough to live comfortably, to support a family, and to send the kids off to college without loans looming over them.  Basically, what I had the privilege of growing up with.  There are few gifts like responsible and successful parents who allow you to start your working life loan-free.  I’d like to be able to provide that as well.  In terms of long-term career goals, my main focus is sustainability in all aspects – mentally, emotionally, financially, physically.

So… any ideas?

The economic downturn

laelene Posted in general blog，Tags: , , ,
27 May 2009
1

I’m sick of all this talk about the economic “crisis” and all the problems it’s causing.  At least there are some articles out there that address the upside of a downturn though.  But the thing is, to me, that’s all it is: a downturn.  It’s not a crisis, it’s not the end of the world, it’s just another down in the cycles that we’ll all experience in life.  Sure, the economy is much slower now, people are less confident and not spending or investing as much.  Think of it this way though – the more you think things are bad, the more conservative you will be and the more conservative you will be, the worse things will get.  When can we break out of this?  Does the government just need to come out and falsely raise our hopes to get things going again?  Why do people fall prey to this so easily?

It goes up, it goes down, but it goes up again. photo credit: financialsense.com

It goes up, it goes down, but it goes up again. photo credit: financialsense.com

Much of this is really just in our heads.  By allowing ourselves to believe that the economy is too weak and life just sucks too much, it limits a lot of people.  On the flip side, it’s a great time for innovation and creativity to find its way into life’s solutions as people have to figure out how to do more with less.  But really, this is really just a self-fulfilling prophecy.  If you believe you can’t find a job or will lose the one you have, you know what, you probably will.  But if you believe that you’ll find something and figure it out, you may end up with a job you never thought you’d have, but at least you’ve got something.  And who knows, maybe that will open a whole new world to you and show you a side of yourself that you really love.

Having faith in your abilities and things just working out makes you much more open to opportunities that come your way.  You’re far more likely to see a chance to do something new as compared to those who have a negative mindset, or even compared to your own mindset last year.  Plus, having this pressure may lead you in directions you never thought you’d pursue, which in turn could create some amazing new opportunities that you never would have considered or taken before.  Hard times breeds creativity and innovation if only because people have to find a new way, a new method, a new thought process.  Besides, limiting spending and making people think twice before they make purchases that ultimately mean very little to them is a great thing too.  When the pressure is on, it’s like a quality check on our lives.

photo credit: makakmedia.co.uk

photo credit: makakmedia.co.uk

I personally like having this “problem” at hand because companies are now looking internally to see how they can improve efficiency and productivity while also figuring out how to add the most value.  Quality is increasingly important and we’re finally getting back in touch with this whole idea of what good service really is.  Sometimes people get so caught up in the bottom line and meeting projected earnings or whatever else that they don’t stop to think about how they can improve the way things are done.  It’s the old adage: “If it ain’t broke, don’t fix it.”  Well, as I read somewhere recently, “it is broke now.”  So it’s time to fix it.  And what is it?  Well, it varies, but generally it seems to be the way we look at and approach what we do, from work to family life.  And though I agree that families get more time together now, I hope that’s not backfiring as stressful family members infect the rest of their relatives.  It’s always a double-edged sword, isn’t it?

Really what it comes down to is how you choose to frame it.  It’s the classic case of the glass half empty or half full.  Depending on your perspective, you’ll see something different from what others will.  Whatever you do choose to believe, the more you believe it, the more likely it is to be true.  Your mentality affects the way you act and the way you act affects what will happen to you.  People who are down and depressed will start to withdraw from others, stop doing things they love, and other destructive behavior that actually makes things worse and that’s what I see here.  Unfortunately, we need the whole world to buy into the idea that the economic situation really isn’t that bad for it to actually start improving again.  And with all the job losses and paycus you hear about, it’s no wonder people are reluctant to behave as if there isn’t a problem.  It would be a start (however small) to at least frame things like this: it’s just an economic downturn or slowdown.  It’s NOT a crisis.  That in itself can begin a better pattern of behavior from people – a more optimistic and hopeful one.

Credit scores and finances

laelene Posted in general blog，Tags: , , , ,
18 April 2009
0

I decided to go back to Mint.com today to check out how my finances are doing.  It’s really an amazing tool, putting all of my money in the same place for me to easily see.  It was always a chore for me to sign in to my bank accounts, then my various credit card accounts, all so I could see how much money I had, how much I owed, and how things were doing for me overall.  Now I just need Mint.com to keep track of it for me!  As I was filling out the information for my new retirement accounts (gosh, that is a strange thing to think about), I also completed the rest of my profile.  One of the questions they had for me was what my credit score is.  Well, I certainly don’t have a clue.  In fact, I’ve never known my credit score!  So, I decided it was time to find out.

It’s an interesting thing, these credit reports.  I spent ages filling out information at various sites, trying to find one that gives me my three credit scores (for free), period.  For some reason, whenever they ask me verification questions, I get a little nervous that I will answer incorrectly.  I should know my own activity and history with no problem, right?  And I do, but nonetheless, I have that little tinge of worry when I have to give a correct answer for authentication.  I guess it stems from my childhood fear of authority, where anyone with the power to affect my life can make me uncomfortable.  So in this case, it is their control over whether or not they believe I am me, which in turn determines whether or not they will allow me to access information I want, that scares me.

Well, it turns out my credit ratings aren’t half bad (all in the excellent range, yay), but I still have room for improvement.  Luckily, I’ve never been rejected credit and I tend to get way more than I need, but I still have a ways to go, once I start having a mortgage.  I don’t plan on having any loans, but who knows, maybe I will get a good financial adviser who can manage all that for me and actually make me better off by using loans.  I do believe my mom is a guru at that sort of thing.  I am also really pleased with Mint.com because they provide me the information I always was afraid I wouldn’t have once my mom can’t help me with finances anymore.  As of now, she’s always the one I go running to when I have a money issue (like not knowing what type of IRA to open up).  I feel more secure in being able to take care of my own money responsibly now.

I have been very lucky in my life, with parents who have always had the foresight to save money for things we needed/really wanted.  I never had to pay a cent for college, or take out a student loan.  It’s an amazing gift to start offmy career with no debt hanging over my head.  I don’t think I can fully appreciate it since I don’t know what it’s like to be in debt, but nonetheless, I am grateful.  At the same time, I tried not to exploit this privilege and got a scholarship that helped pay some of my way.  Also, we’ve never not had the money to purchase things when we really needed them.  Granted, that has a lot to do with our concept of what we actually need.  We’re not a very materialistic family, so all the nice things we get we get only when we more than have the means to get it.  I have learned some very good spending habits from my parents and I hope that I can retain that, and not live beyond my means.

My mom has always told me that too many Americans get trapped into spending more than they’re earning and borrowing a lot, which leaves little room for error.  On the contrary, our family only takes out loans we know we can pay back, only buy cars that are within our means, and only get houses that have mortgages we can handle.  I admire how well my mom handles money and I wish I had a knack for that myself, but if it were up to me, we’d all just live with cash and never worry about credit cards throwing you into debt or losing money on investments.  Ironic, I guess, since I studied finances quite intently during my undergrad career, but it’s not a topic I really care for.  It certainly is very useful though and it’s a pity I don’t know more.  But, with the booming internet, I can always look up what I need to so it won’t be too bad.

So, though I may not know the best ways to handle my money, at least I’ll make good choices with what I do know so far and just keep educating myself on what else there is.  Ultimately I’m hoping I can make enough to hire a financial adviser to do all that for me.  I’m not much of a risk-taker though, so I don’t know how I’d feel about my money being put into the volatile markets.  It seems lame to keep it all in a savings account though.  Which, by the way, has been disappointing me with the economic downturn.  Supposedly my interest rates are still higher than market rates and rather competitive, but it has been sliced to at least less than half of what it used to be!  It’s so unfulfilling to see your money growing so slowly.  With the magic of compound interest though, I just need to wait it out and see better results later down the line.

The opening of a roth IRA

laelene Posted in general blog，Tags: , , , ,
13 April 2009
0

Today, I got an e-mail from my mother asking if I had set up an IRA yet.  I had joined Mint.com a few weeks ago, which sent me a couple of e-mails since then, reminding me that if I opened up an Individual Retirement Account before Tax Day, I could save thousands!  Thrice I went, filled out all my info to see what I qualified for, and decided that I should go for a Roth IRA.  Thrice I left it at that, not daring to click on the links below to Fidelity, Scottrade, E*Trade, or Charles Schwab to actually set up an account.  So today, I decided it was now or never.  With only two and a half days left before the big deadline, I went ahead and tried out Fidelity.

After filling out some basic info, I was in and they had not only my Roth IRA info, but also the other retirement accounts I had from previous jobs.  The money I chose to transfer was due to show up in the account in a mere day or two, which is quite speedy for banking transactions.  I’ve got to say, setting up an account was never so easy!  In fact, a little part of me started to get paranoid that if it was that easy, perhaps it was a fake site I had somehow stumbled upon.  However, the little lock symbol at the bottom corner of my browser reassured me that this site was safe and legit.  I hope I’m not too dependent on that little thing!  Plus, Firefox has been amazing at finding phishing scams and redirecting me before I get to that site.  So all in all, it checked out and I was pleased.

Now I had just closed down my 401(k) from the University of California, since I stopped working there a few months ago, and my mom remembered hearing something about how I could still put that money into my brand new Roth IRA if I had not cashed the check.  Well, the check is still there and just a few weeks old, so I e-mailed in a question about how to take care of that.  Quite early into their work day, I got a very nice reply, complete with caring questions to make sure I knew what I was getting into before I chose to move my money like that.  I have always slightly feared having to take charge of my own money and figure out what to do with it, between stocks, bonds, mutual funds, CDs, and the myriad of investment options out there.  But with a message like that, I felt taken care of and it put me at ease.  Now that’ssome great customer service.

So, just before my taxes are due, I have taken care of something that makes me feel good about my future.  Yeah, sure, things aren’t looking up in the economy right now, but hey, that means the deals now should be the best as companies vie for your business through higher quality or better deals.  Plus, having the deadline extended four and a half months definitely encourages us to save!  Normally what happens in 2008 would have stayed in 2008 for this season’s tax reporting, but to push national savings, we were given the new deadline of April 15th.  Lucky me!  It’s about time I finally got around to it; I’ve been meaning to do something about a retirement fund for a couple of years now, but while in college, you don’t really feel it as much.  Now that I’ve entered the working world, it’s time to be responsible for what happens to my money and do what I can to maximize my returns while preparing for the future.

I’m feeling a lot better about my finances and I’m no longer so scared about not knowing what to do with my money.  It’s great to know there are knowledgeable people out there who can help me.  Thinking about this reminds of my ex-bosses from Smith Barney, who were financial advisers for people in the aerospace industry.  Maybe someday they (or their proteges) will be able to handle Panda’s finances for him.  😛  Ultimately, I would like to be well-off enough to hire someone to help invest our money for us.  Otherwise, it’s just too stressful to keep up with the changing markets and understand the latest benefits of putting your money in so-and-so.  For now, I’ll just keep putting as much money away as I can manage and try to reap the benefits of compound interest.

Related Posts Plugin for WordPress, Blogger...