Financial Fitness

Yeah, That Was A Fun Little Exercise, Wasn't It?

2011-08-31T17:11:00.003-07:00

It's pretty obvious by now that the team I was going to join has had some bigger issues to deal with, such as hiring the replacement for Mr. Crazy Random Who Needed To Retire And Finally Did.

Would I still join if they approached me, so much later after giving me the verbal offer?

I don't think so.

I have had a really good summer and gained some key clients, so I think I am going to stick to this route instead of that one.

I am glad it didn't work out because I would not have been able to see the upswing this summer brought my way.

Just goes to show, you never know how things will truly work out to your favor.

Cost of Kitchen Remodel

2011-05-02T12:16:00.000-07:00

I have dreaded and looked forward to this project for 8 years now: Kitchen Remodel!

Gutting it and removing a wall and everything Brand New.

It's a little anxiety-inducing, however.

As in, $80,000!

That's alot of money.

However, we have done almost everything else to this house, and this will be a kitchen for decades and for whenever down the road we sell it.

After next week we start packing everything up and going out to eat for all our meals for about 6 weeks.

I also feel good about the fact that we now have over $600,000 towards retirement.

I will just ground myself around that number when I start hyperventilating!

Yet Another Step

2011-04-22T10:13:00.000-07:00

I met 2 more members of the team yesterday.

Even though I have been given a verbal offer from the decision maker (that happened a couple of weeks ago at that breakfast), I am still in limbo until Crazy Pants' replacement is hired, which could take awhile, because it's a VP position.

I hit yesterday's meeting out of the park, so I am at peace with what I could have done.

This process has now gone on for 5 month.s

It started early December.

I no longer am emotional about it (as in, I don't have that 'excitement' you have when you want a job really bad) and I think that's a good thing.

I still want it, but am not really focusing on it right now too much, mostly because my LLC is doing really well and I have gotten some new clients lately.

I haven't had it up and running for a year yet but am really happy with how my first year went.

The first couple years are the hardest because of all the seed planting that is being done, but i have confidence things will work out the way they are meant to.

Tomorrow Is, Finally, THE Day

2011-03-29T16:03:00.000-07:00

Tomorrow morning Breakfast meeting. This is it. Holy, I can't believe how long this has taken.

This Is Driving Me Insane

2011-03-04T15:52:00.000-08:00

Heard from the recruiter on Monday.

Said I'd hear back 'end of this week'.

It's now 4pm on Friday.

Nothing.

I really don't want this to drag on anymore.

But it looks like it is and that I now have to go through the whole weekend until next week now.

*sigh*

Well Wouldn't You Know It: Amazing As App!!

2011-02-21T13:14:00.000-08:00

I think it was the best I have ever had. I was ON. But let me back up for a minute.

I haven't ever quite gone through such a process as this one, and it has definitely been frustrating at times.

But my contacts in the group have been supporting me and saying I am the #1 candidate and why that is.

When I finally got the As App on schedule (which took a month) and then the actual day arrived (last Thursday, another few weeks), I was prepared.

Simply put, I got the job.

I don't have the offer yet, but got a verbal.

This team is an amazing team with respect to calibre of knowledge and skill at their craft. I also like how it is a team based approach and holistic (trusts, estate planning, portfolio management, premier lending).

Now I have a very, very big decision to make.

As App Is Tomorrow; Can You Believe It?

2011-02-16T08:52:00.000-08:00

You might as well say ok I think tomorrow you will be getting on a rocket and going to the moon, that's how odd and unreal this whole process has been.

I have 2 phone calls today with others in the group to help guide me to what in the world to expect from this tomorrow.

I mean really, it's been over 2 months; it's the strangest process (or lack thereof) I have been through.

It's hard to really take it seriously.

I Am Breaking Up With Russell International Growth

2011-01-31T09:57:00.000-08:00

Gave it a go for 4 years as it was MSFT's first international fund (at least that I liked) to their 401(k) participants.

But it's been underperforming against it's benchmark, MSCI World Ex-US Growth while charging us .59% expense ratio.

So I am switching to the Russell International Value SMA instead (these are the best international funds offered in the 401(k) plan. I wish there were more and I wish they were passively managed but I am working with what I have here).

The Russell International Value SMA has a slightly higher expense ratio at .61% . Yet we need international diversification so there it is.

It's done a better job of at least meeting and actually exceeding it's benchmark, the MSCI World Ex-US Value.

This is a newer SMA for the 401(k) plan. It's only been offered for a couple of years. I was hesitant to switch to it earlier because I needed to find out more about it first, and I have.

I moved 50% from the Growth SMA to the Value SMA last week and am moving another 50% today.

I don't like making bulk moves (e.g. all at once) because I believe in averaging in and out of positions to buffer against any drastic one - day activities.

So buh-bye Russell International Growth SMA, I gave you a good 3 years but you did me wrong.

Dear Public, We Have Failed You

2011-01-28T17:24:00.000-08:00

Yes it's a vociferous thing to say, but not all people who call themselves financial advisers have your best intentions at heart nor are they required to even remotely be qualified.

Why?

Because anyone can call themselves a financial adviser, and pretty much those that sell financial products do call themselves that, instead of what they really are: Financial SalesGuys.

But how about an actual Financial Planner?

That's where the client is truly served by someone with no inherent conflict of interest, because they are not using the Financial Plan as a means to sell you product.

Only a Financial Planner who is compensated by you, not by an annuity company, mutual fund company, insurance company, will be working for you.

Why?

Because the one who writes the check (you) is the one they work for.

I Can't Believe I Am Saying This: I Have The As App And Could Care Less

2011-01-28T10:16:00.000-08:00

Yep, it finally got scheduled.

Lots of apologizing from the Hiring Manager and 'encouragements' (FWIW) that I am The Candidate (which I confirmed from my other contacts there).

I actually pushed it out a bit, so it'll be awhile before it happens (always a good thing).

But sheesh I am resigned to not going there now, due to this process (lack of) and how long it's taken (my work style is very very different from being measured in weeks, as it seems to be there).

Yet I don't want to burn bridges; that's very stupid.

I really like the team but I need to know more about the people I haven't even met yet. And I got super turned off on this opportunity by the Mr. Random (aka Hiring Manager), who really should have retired by now.

So, I will go, prepared of course, but I will be asking some pretty pointed, but fair, questions.

My AsApp is with the SVP but I don't care I am asking the questions anyway, SVP or no.

I just signed on 2 new clients this week and that makes me just that much more settled and happy about what I am already doing.

Latest Update: Total Train Wreck

2011-01-26T11:03:00.000-08:00

So I contacted Mr. Random to see what in the world was going on with the AsApp (I have been told I have it but that it's now a function of getting in front of the SVP).

I have been ambivalent about this all along, because I am in a pretty sweet spot. However I really like this team and how they function (as well as the fact that it's not one of the financial services institutions).

And it's a very good position.

However, Mr. Random really needs to go before I would seriously consider a move over there.

He did contact me after I pinged him to find out if he died or just got lost in his way to work one day.

Without getting into specifics, his response was raising some red flags for me, even though in general it was positive and telling me they can't wait to make me a final offer.

But I am not interested in having more drama in my life so I am going to pass.

I may reconsider after he has gone (which is in the next year, maybe even sooner), because I really like the team, the overall group, and the company.

Will The Real Financial Planners Please Stand Up?

2011-01-25T09:38:00.001-08:00

If you go to Ameriprise, or MetLife, or Edward Jones, or any other financial services 'institution' please acknowledge that you are dealing with a Financial salesperson that has conflicts of interest and not an actual Financial Planner who is providing you objective, tailored advice.

If you are not paying directly for the service then you are getting sold financial products and the compensation is coming to them from the products they sell you (you don't really think this is all free, do you?).

If you aren't personally writing a check to the Financial Planner for their services, then you likely are getting taken for a sweet ride (not sweet on your part though).

I've said it alot on this blog and it is still starkingly true: If you aren't working with an Hourly Fee-Only Financial Planner you are dealing with someone who has an inherent conflict of interest.

Why?

Because you aren't the one paying them.

The one who writes the checks is the one who the person works for.

These financial salesguys are, at best, advising you to buy financial products that may still be suitable, but are not necessarily the best fit for you.

Only Fee-Only Financial Planning, practiced by someone who has also at least passed the Certified Financial Planner (tm) Board exams, is objective and knowledgeable enough to provide actual, tailored, financial planning with no conflicts of interest.

You can find an Hourly Fee-Only Financial Planner through NAPFA or just do a Google or Bing search for one in your area.

Financial Planning and buying financial products (e.g. actively managed mutual funds, cash value life insurance, annuities) are not the same thing by a long shot.

Or Maybe Not

2011-01-21T16:53:00.000-08:00

What the hell is it with people in this industry?

As if I needed more randomness/unprofessionalism after Mr. Gold Link Bracelet.

I really would not have expected it from such a highly regarded firm.

Nor from people I have been networking with for almost a year now (granted, they aren't the Hiring Manager, but still).

And I didn't even pursue this one, they approached me.

Yet after having met with them the second week of December, then getting a follow up the third week of December that I'd be in the final round and that that would be set up the week of January 10, and yet, no word still?

It's beyond rude and I am beyond pissed. I don't want it now anyway but for the Love of All That Is Good can't you give me the effing courtesy to let me know one way or the other instead of leaving me hanging like this?

Totally disgusted with the Hiring Manager.

I am so glad my LLC is doing so well and that I have a pipeline going.

Because if I didn't this would have really shaken me to the core.

Instead it just irritates me and I can live with that.

Just One More Way That Chase Sucks

2011-01-12T09:31:00.000-08:00

Our Health Savings Account (HSA) is with Chase.

It was the only option available for our health insurance, which is with Cigna.

In order to have an HSA, you need to have a High Deductible Health Plan (HDHP), which we do through Bear's employer.

If you are a reader of this blog you know already that I am a huge fan of HSAs and that I am very excited we are able to participate in one.

So basically when Bear's employer provided an HDHP with an HSA as a Health Insurance option, we jumped all over it.

So we have been contributing to it for 2 years now and it has a nice balance on it that is becoming a pretty big number as opposed to just a rounding error on the balance sheet (well, it's still tiny on the balance sheet, but it is almost 5 digits so I am paying attention to it).

I looked up options to just having it in savings.

There are very restricted options, but they are there.

They are some index funds provided, of course, by JP Morgan (part of Chase).

But that's fine. Index funds are more or less index funds. There are some minor differences in them regarding how they track to an index but in the grand scheme of things are minor.

But in order to buy them I'd have to 'open an Investment Account'.

Care to know how much THAT would cost?

Try $2.50 a month!!!

Are you kidding me?!?!?

$30 a year just to open an account and then of course on top of that they still get their fees through the expense ratio for each of these funds.

I am so pissed.

I so hate Chase.

I can't even believe how crappy they are.

Again and again and again every single time I have had to deal with them has been a Massive Nightmare.

And believe you me as soon as Cigna has any other option for an HSA I guarantee you I will be the first customer in line to switch.

$30 a year, total rip off!!!!

What A Fabulous Year

2010-12-28T10:52:00.000-08:00

I'm just looking back on this year and amazed at how awesome it's been.

It went pretty fast for me and on so many levels it was a good year for me and for us.

In looking forward to 2011, I have alot of optimism and enthusiasm for what's in store.

Oddly enough the one thing that makes me cringe when I think about 2011 is the kitchen remodel, as it'll be such a huge project and disruptive.

But, focusing on the results; I don't know if I will ever want to leave my house again after it's done, it'll be so nice! (just kidding, I will leave my house).

I lost some dear relatives this year due to age and sickness, but have fond memories of them, and carry them in my heart.

I feel very blessed to have the marriage, family, friends, and overall abundance that I have.

I truly don't deserve it.

Merry Christmas and Happy New Year to you!

I hope that whatever situation you find yourself in as you enter 2011, that your heart can be reborn with hope and forgiveness towards those who you sense have done wrong by you.

Not Dead Yet!

2010-12-20T16:19:00.000-08:00

Well it looks like maybe I was overly negative in my takeaway from the 'meeting' (ok, interview) from a couple of weeks ago for The Opportunity (not solicited, it was a result of a lunch I had with a colleague who has been wanting to figure out how to work with me and bring me on board for 11 months).

I just this afternoon got an email from The Decision Maker that I am to meet with the Sr. VP after the holidays and he even apologized for not getting back to me sooner!

So, this opportunity is still alive and kicking and I'm still in the running!

I have been thinking that I wasn't, as I didn't hear back until now, and as I couldn't quite get a solid read on how it went with him, although it went very well with the other people I met.

Converted Traditional IRAs to Roth IRAs!

2010-12-20T10:58:00.000-08:00

That was a little nerve wracking, but I did it.

With only 1 1/2 weeks left to be able to do so!

I have been thinking all year the best portion to convert (all? partial? none?).

My decision to do this is the same as back in January, but I am glad I took the year to think about it (yes, I realize the values are higher today than back in January, but that is fine; I took the time to really think about it).

Going forward we will be 100% Roth for the 401(k) contributions, and have been for the last 2 years, but the future IRA contributions will have to be Traditional instead of Roth, since we exceed the AGI threshold for qualifying to contribute to a Roth IRA.

Not complaining, good problem to have.

So if you have been thinking about converting your Traditional IRA to a Roth IRA, time's almost up for being able to do it and spread it through 2 tax years (don't have to recognize the income until tax year 2011 and tax year 2012).

And, if you exceed the income thresholds ($177,000 for married filing jointly) then hop to it!!!!!!

Going To Sell The Rental House

2010-12-16T16:29:00.001-08:00

That's it.

Not worth it anymore.

One too many phone calls/emails and I am totally burned out on it.

Not blaming the tenant, just done.

I don't care anymore if it helps us with diversification blahblahblah.

I want paper assets; paper doesn't call me or email me with a new crisis that I have to cancel plans for to address, or find the right person to fix, or pay money to address.

We have had it for 8 years now and I don't regret it, but I am done.

December Balance Sheet: Up $10,240!

2010-12-13T16:49:00.000-08:00

But the more exciting part is we hit another big number on the odometer.

Very nice!

Every step forward is one step closer to more peace of mind and to our dream of financial freedom.

I know we are already a really long way towards that goal, and it is really fun to run the numbers and see it become more and more realized.

Separately, the thing I was so excited about earlier, has turned into an incredibly bizarre situation.

It's one that if I had experienced it when I was actively looking for a job I would have been a bit nutty by now.

It's a situation where I have been told, for 11 months now, that I would be a great addition to the team.

And it's a team I would want to join.

But I can't say much about it now because it's not quite done yet, even though it feels done because of how this latest instance went (as Bear said 'massive mindfukc').

I Hate Rebates

2010-12-10T10:41:00.000-08:00

So we bought our new washer/dryer, what, almost 2 months ago?

And 'of course' it had rebates associated with it.

Which, almost involuntarily, I filled out and mailed in.

7 weeks ago.

This is why I Hate Rebates.

Have I ever in my life sent in a rebate and not had to wait forever and a day? 0_o

Let me think no I don't have to think I already know the answer: No.

It is almost enough to make me not want to buy something, because when I see 'rebate' I get a sense of dread and would rather not buy it just to avoid the hassle.

So, I'd just like to take the time to say hey good work there, Washington State public utilities and State of Washington on getting those rebate checks in the mail!

/sarcasm

"I'd Be Afraid To Take You On As A New Client"

2010-12-09T11:38:00.000-08:00

So I have been interviewing for a new tax accountant (current one has made a mistake in each of the last 2 years).

I contacted one this morning who had been recommended by a peer.

He was slow on the uptake but when I told him what we were looking for, and that I passed the CFP, he said:

"I'd be afraid to take you on as a new client"

Hahahahaha!!!

Wow, well, that definitely is NOT the way to win me over and instill confidence in your abilities!

Oh Lordy Lordy I Am Excited!!

2010-12-06T12:16:00.000-08:00

Something big, something really truly unexpected.

Been working on it for a long time but truly absolutely did not think something would come of it.

Will know more after tomorrow but omg right now I can't quite believe this!!!

This will be very exciting and bigger than I had ever hoped for.

Oh Lord please don't let me mess this up tomorrow!!!!

Just be calm and cool and collected....deep breath.....

Exterior Shutters Done! 7th Home Project This Year

2010-11-28T12:58:00.001-08:00

We had shutters installed on all 4 sides; this is front and back for sense of what it looks like now.

We have had 7 home projects this year. And we are finally done with 2010 projects!!

They were:

1) Hardwoods installed in kitchen at rental house.

2) Exterior (planned) plumbing project (yuck!)-> pipe replacement

3) Interior (unplanned!!) plumbing project (double yuck!!)-> pipe replacement

4) Runner for stairs

5) House exterior painted

6) New washer/dryer (wow, when did washer/dryers get so nice?!?!)

7) ....and.....shutters!!

Sheesh.

That's alot.

So now we are finally ready for the next project on the list, and super excited about it too:

Taking the kitchen down to the studs, removing an interior wall, and....new kitchen!!! (no we are not doing this ourselves, no way!!).

That is 2011 Home Project.

It will be epic.

It will be so nice when it is done, I don't know if I will ever leave my house again! (I will, but I suspect I will really be very thrilled about getting this phase done with and no more Ghetto Kitchen).

November Balance Sheet: Up $20,031

2010-11-22T09:15:00.000-08:00

Great month!

Very fun to watch that.

Well I don't really have anything new to report about the Balance Sheet. I am going to be doing some rebalancing in January, but really nothing major needs to be done, as we are still pretty well balanced in the asset classes that match our goals and our risk tolerance.

We are about to turn another big number on the Balance Sheet odometer, I suspect in a couple months, after the annual contributions to the profit sharing account in January as well as the big annual bonuses that are realized in end of January.

January is a very fun month with all that!!

I keep wrestling with spending at this time of the year. I literally have to keep myself away from the stores because I just get in the zone and get carried away with myself.

Nothing too crazy but I still want to keep on target with the financial goals and going nutty with new things I don't really need (but maybe want) is not the way to do it.

Sheesh I even splurge when I go to Trader Joe's at this time of the year!!

I'm not going to worry too much about it, it's just that I know myself and want to stay true to my goals.

I have enough cute outfits and nice things for the house; I need to find contentment with what I have.

I definitely do believe though that you are influenced by your environment, and unfortunately for this anyway I am affected by it.

Also I have enough Christmas decorations, no need for more!

I am really excited, separately, about how my little LLC is doing. I got approved by the state in June and had a quiet summer, but now am on a pretty nice pace with clients and even just this weekend had 2 (separate) people tell me they want to hire me!

Nice!

Annual Damage

2010-11-15T17:10:00.000-08:00

Once a year I go shopping big time. I head to both Bell Square and downtown Seattle and shop!

OK, it's actually for Christmas presents for other people but...it does happen to be at the same time as Nordstrom 1/2 yearly and a Macy's Sale (yeah I know I know...Macy's is always having a sale).

And 2 things on my list:

1) Pair of black knee high boots that replace my amazing Via Spigas I had bought in NYC but are now 'out of date' according to the Style Gods.

2) A nice Hermes tote (but not Hermes but one that looks like Kelly bag please) that I can use as a nice big bag and laptop/papers when meeting with clients and that makes me look Money!!

I found BOTH!!!

And I got both on sale. Bags can be super hard to find at a regular price that I like, let alone on sale. This one, a Lauren by Ralph Lauren, was returned same day to Macy's and all I can say is I grabbed it as soon as I saw it. Almost like a natural reflex!

I got it for a ridiculous price. You know the kind: Already marked down and a further down on the One Day Sale thing.

Then at Nordstrom I really didn't think I'd find my boots on sale. But what the heck, right?

So I go to Salon Shoes and there they are on the sale rack that Nordstrom puts out for Anniversary and 1/2 yearly.

Again I reflexively grabbed them the minute I saw them.

I lovelovelove good quality leather that is buttery, well crafted, good detail...makes me swoon!

And I have absolutely no regrets about buying them, as I will use both for years and set out with them in mind.

(And yes I finished by Christmas shopping in the middle of all of that).

This Is What Happens When You Don't Have A Plan

2010-11-05T09:28:00.001-07:00

New show premiering tomorrow about a family that is having to learn for the first time what it means to live within it's means.

I suspect the financial planner in this preview wasn't as much of a hardass as this preview makes him out to be, but that he had to get this blunt with them because they likely were expecting him to pull a rabbit out of his hat (I may be speaking from experience here).

I didn't see the Dad going out and working as hard as the Mom (she has taken to cleaning houses, what is his equivalent)?

I feel way more sorry for the Mom and the kids than the Dad; just from what I saw it looks like he definitely needs to overhaul and go out there and find some work so his kids don't have to dumpster dive.

I haven't seen the whole show yet but if this family would have had a financial plan in place during the good times, I suspect they would not be going through what they are going through now....why?....because they would have had a plan for what to do when construction (which is MASSIVELY cyclical) dried up.

No I Don't Think This Market Makes Much Sense Right Now

2010-11-04T14:47:00.000-07:00

I mean I know the stock markets are a leading indicator of where the economy is headed, but this is ridiculous.

Oh don't get me wrong: I love the fun part about this (seeing our account values go upupup) but really it does feel like a balloon full of hot air.

Unemployment is still absolutely not budging and I totally agree with those that see this as a permanent shift in the global workforce: Jobs that used to be done here are far less expensive overseas and are never coming back.

Somehow Germany pulled it off (strong manufacturing core) but I suspect because they have superior engineering (general statement).

A couple of years ago a cousin of mine told me I don't live in the real world because I was making the argument that as long as you still sought to improve your skills and sought to improve yourself overall there would be a place for you at the table.

I no longer believe that.

I think alot of smart, capable people are getting left on the sidelines and are never going to get the kind of job they used to have.

I know alot of unemployed people right now.

Let me rephrase: I know alot of unemployed men right now. Some college degree, some not. Some grad degree.

What will it take?

Not everyone is cut out to be totally fit, culturally and stylistically fresh, intellectually sharp, edgy capitalists.

What happens to those that aren't?

Are they relegated to the economic scrapheap for the rest of their lives...the land of misfit toys?

I entered my v2 in an industry where looking older actually works to my benefit....but this industry is an exception.

What we saw with the abundance of the mid-century forward is never coming back: we will more and more be a nation with a minority of us who are sharp, savvy, with skills valued in the marketplace and the majority who...aren't.

The majority will need to learn to live on, and with, less.

I am not a proponent of this because I think it's killing alot of dreams, and replacing them with nightmares.

My cousin was right to freak out and yell at me and say I am not living in the real world: I am not. I know that. I know I am a minority and exception and I feel so effing grateful to have 'gotten it' with respect to living below my means and planning for the future and in a new industry where my age works to my advantage.

I really want those I know who are unemployed to get jobs.....but they have no prospects.

They are living on unemployment and drawing from their 401(k)s.

Put $600 In Savings (Unplanned)

2010-11-02T08:47:00.000-07:00

One of my favorite feelings is having more unplanned money after paying expenses than I anticipated.

We got $395 back from the refinance and had $200 extra in checking, so I transferred $600 to savings.

I really like that. I like it because I can add it onto the Balance Sheet and I like it because it gives us just that much more buffer in non-retirement accounts.

Also it sort of shores up the spending we have been doing these last couple of months (2 vacations, an unplanned trip for a family funeral, and 4 big ticket projects to the house).

Some of that (especially the house projects) was funded from non-retirement funds, although we did have to pull from those funds for some big ticket items we bought that were not house-related.

For some reason I am really struggling with the temptation to spend money, so it definitely helps to do this as opposed to cave and go shopping knowing it's there to spend.

I am trying to be content and not look at my clothes as dated or as needing new things (although I really want some new boots and a new black handbag).

$2100 Already On The Credit Card This Month

2010-10-29T10:45:00.001-07:00

Sheesh, I can't believe how fast it adds up. A little here a little there and boom!

We did a really good job last month of keeping it under $2k, but that was only by deferring a couple things into this month and really being tight the last couple of weeks.

Well here we are again and I really really want to keep it under $2500.

It's aggressive but if we are able to do that then we are able to put a solid 4 digits every month into non-retirement accounts.

I think we can do it, but I hate having to watch it, you know?

I much more enjoy the 'woo-hoo!' new month what do I want to buy?

How Not To Ruin Your Life

2010-10-28T15:26:00.000-07:00

'Guess who I ran into today?' asked by S-Mom 6 years ago.
'-?-' I said.
'K' she said.

Oh, wow. It had been a really long time since I had seen, or even thought, of K. A good 15 years at least. We were in college together and he was in the same business fraternity as I.

He was a total clown and always the life of the party. True, he was no intellectual heavyweight, but I always thought he'd come out alright.

'Hey K, guess who? How you doin'?' I sent him in email.
And so it began, we were 'back in touch'. He had had 2 marriages and 3 kids. Too many jobs to count. Still renting an apartment.

'I'm moving to LA, man, I can make 'x' amount of money out there vs. 'y' amount here!' says K.

I thought to myself well yeah K and it's also way more expensive to live in LA, but I figured he'd figure it out.

The next several years consisted of me being a spectator to one of the biggest train wrecks I've ever witnessed.

He kept losing jobs. Then moving to different cities. Then he got married again (huh? I didn't even know he was dating someone new!) and then bam baby #4 with baby mama #3.

Aaaayyyy......then......a year ago...he says he is moving......here.

He has a sister here and 2 of his kids were here, and he was unemployed again, so he figured, well, why not?

So he got a job with a Debt Settlement company and moved up here.

That lasted about a month.

Whenever he lost these jobs it was someone else's fault.

Another job. A car accident, his fault, but as a defense he decided hey there are so many accidents there it's the top 3 most dangerous intersection in the whole state (huh? I had driven that road many times, never heard or saw any problem like what he was describing).

He attended all kinds of seminars, always looking for the Get Rich Quick.

Taken in by the Bright Shiney Objects.

A student of conspiracy theories ('The US government created and distributed AIDS to black people in Africa and USA. They have the cure but US government keeping it secret to eradicate the blacks').

Then he got taken by a MultiLevelMarketing scheme.

You know it as Network Marketing or, what I call it, 'Trying To Sell Crap To Your Friends and Family'.

Then he decided to move. This town wasn't working out for him after all.

When we had him and his wife over for dinner before they left, he brought over a brochure.

I politely said no we are good and changed the subject.

He then went on to 'what an exciting opportunity it was' and that he 'just wants to share it with everyone'.

8/

Then when he moved I got a spam mail from him about how he wanted to share the news with his friends about this amazing opportunity he got in on on the ground floor.

There was a link in the mail and when I clicked on it it had absolutely no information but definitely wanted all my information a la email address, name, phone #, etc.

Then I had to admit, thinking back on the last 6 years we had been back in touch, he had exaggerated and fabricate alot of things.

I let them slide, but it started making me question his integrity and honesty.

Then last week he started calling me, leaving the vaguest of messages:
'Hey, this is K....just calling, call me back when you get a chance'.

To which my red flags were going off left right and center. Was he trying to play me?

I texted back "Hey, all ok? What r u calling about?"

He'd text back "Will call you tomorrow" or some BS like that.

So after him doing this 3 or 4 nights in a row, I called him back.

'Hey K, calling you back, what's up?'

'Heyyyy.....everything good with you guys? Yeah? Well, I am only 2 people away from qualifying for the A circle and.......'

'K, I knew this was what you were calling me about. It is absolutely unacceptable for you to be hitting up your friends and family with this. You have now approached me 3 TIMES about this.'

He immediately got defensive: 'You're the only one that is bothered by it' he said.

'That's because I'm the only one that has the guts to tell you, K. It's altogether uncool. I knew when you were leaving vague phone messages that you were trying to play me. Especially when you wouldn't say why you were calling me'.

When he mentioned how Robert Kiyosaki says you will lose friends, that only made it worse (Robert Kiyosaki, the ultimate scam artist).

So it ended with him getting quite defensive and unable to accept the truth (your friends and family want you to get a real job and stick to it!!!!), not to mention altogether incapacitated regarding accepting accountability.

I doubt I will ever hear from him ever for as long as I live, as he sent me an email to that effect and 'defriended' me on FaceBook.

October Balance Sheet: Up $17,091!

2010-10-19T11:13:00.000-07:00

Most of this month's increase is in the form of the stock market rally and the effects of that on our stock holdings.

It was definitely a fun month to watch values increase.

I don't think there's much wind behind this rally, and think it's pricing in the Fed move to buy Treasuries next month.

We have alot of big expenditures coming up for the house.

New shutters and a new washer and dryer as well as property taxes due next week.

Our biggest 'loss' on paper by far is the house; if we had to sell tomorrow we would get more than we bought for it 8 years but we would not recover all the money we have put into it in upgrades since then.

That's not something I am happy about but it could be way worse, in that we could be underwater and so I don't have anything to complain about.

Next month we are going to start the kitchen remodel project.

We are still planning on getting the kitchen remodeled next summer. It'll be a huge project and it's a bit daunting to think about no kitchen amenities for so many weeks, but it'll be so very nice when it is done!

I am very happy with the traction we are making on our retirement accounts; it finally feels like 'real money', especially when I combine it with the rental property, which is also intended for retirement income.

We have worked so many years to put so much aside, it is such a good feeling to see this progress.

Haven't Had An Issue With Tenant In 3 Months!

2010-10-05T09:47:00.000-07:00

When we bought the house we are in now, we turned the house we had been in into a rental property.

We have been here almost 8 years now, meaning we have had the rental property for same amount of time.

We never had a problem renting it out and never really any issues (it helps to have a smaller home in a very desirable neighborhood that pulls in professionals).

But, with this current tenant who moved in last March, we had a flurry of activity there for awhile.

Then starting in July, it got quiet.

'Was that it? Is she settled in? Are we good?' I asked Bear, holding my breath that she was finally all done with the activity.

Don't get me wrong, she has been an awesome tenant (especially the more time that goes on without any issues!).

But we heard more from here from March through June than any other tenant in the prior 7 years combined!

She really likes the house and is doing a great job keeping up the yard and taking care of it.

I'm hoping it continues through the rest of the year, because I'd like to get it to cash flow positive for the whole of the year (lots of outlays in February-June).

Big relief that we are here where we are now with it; I just hope that it continues!

September Balance Sheet: Up $11,128!

2010-09-21T13:03:00.000-07:00

September was a pretty good month only because of the market rally this month. Even with that, a large portion of this was contributions to the balance sheet.

But that's alright. It's plugging along, and we are doing pretty good in tracking to our goals.

There's not much to say about the Balance Sheet other than that I still want a higher asset allocation % to non-retirement brokerage funds.

It's a significantly larger number measured by $, but about the same as it has been as measured by %.

The thing that keeps hitting it is projects to the house.

Since I do cost basis for house, and the funds come from non-retirement brokerage for those, well it won't break out until after next year's kitchen remodel.

The house does make up a minority of the balance sheet...for that I am pretty happy; it means the majority of our Balance Sheet is made up of retirement and non-retirement as well as our rental property, which is income producing and has a good balance on the Balance Sheet (not much equity erosion due to fact that it's entry-level and in a very attractive area that's held it's value).

It all adds up to a real peace of mind when I look at where we are and where we want to be.

6 Months Without A Gold Link Bracelet In Sight

2010-09-20T14:39:00.000-07:00

6 months ago I left my job after being there for 4 weeks. I have already gone into all the lurid details on why I did, so I'll not revisit it.

Sitting here, I am really happy with how things have worked out.

I started my own sweet little LLC and get to focus on the clients I want to and actually do true fee-only planning, damnit.

I don't have to sell a bunch of stupid funds or, worse, watch as all my work is reviewed in onlly 10 minutes while Mr. Gold Link Bracelet spends the other 1 hour 50 minutes trying to get the poor client (read: widowed, or somehow single, older woman) to either 1) buy insurance from and or 2) transfer all her funds over for him to manage in the crap funds he picked or....BOTH....which was actually usually the case.

I've learned alot in starting up my little gig and I am tickled by how it's going so far.

I get to do true financial planning; not try to sell something or try to get someone to transfer their funds over so I can manage them and increase my assets under management (which is not a bad thing; I just want a client to do it for the right reasons).

They say the first year in this business is the hardest, and it is, as you are building up your base and getting the word out there.

But I am good with that and really pleased with it.

I see myself doing this the rest of my life, that is how much I am enjoying it.

My Money's On The Hairstylist

2010-09-16T15:50:00.000-07:00

I switched hair salons this year. You know how it is when you go to a new place; it's rude to just sit there so you ask topical questions and the usual suspects such as 'how long have you lived here?' blahblahblah.

My first appointment at the new place was January 11...and I was Freaked Out.

I had taken the November CFP (r) board exam and knew I'd be getting results ~ MLK Day; but true to form I starting being edgy and jittery and just plain nutty well in advance of that.

So obviously I was talking all about that damn exam and how on edge I was just wanting to find out how I did.

L, the hairstylist, immediately opened up about his money situation in a way I found very refreshing.

He didn't give a crap, he just laid it all out, almost like a confessional.

He had been on the brink of bankruptcy, had no idea what to do, and decided right then to stop fooling around and turn his life around.

He started tracking his money on a daily basis in excel. He stopped doing everything. Friends want to go out? He'd have a beer and nurse it all night. Want to go to a show? Too bad, paying off the damn debt first.

He started this over 2 years ago and when I went in yesterday to my appointment he was excited to tell me he had paid off the biggest of the 3 credit card balances! We usually end up talking just about behavioral finance and personal finance in general, but him reaching this milestone made me very happy for him and we spent the whole appointment talking about how far he had come and what he wanted to do next.

I am so happy for him!

It can be done!

In addition to that, he decided he needed to go back to school. He got his AA this last summer and now is starting to work towards his bachelor's. So exciting! So, he is really setting himself up for a fantastic future!

He will have a new career, he will be out of debt, and he will be watching his Balance Sheet growgrowgrow.

It's so nice to find someone who decided enough already with being broke and enough already with being in debt and actually doing something about it.

He says all he does now is studystudystudy and work and that he is fine with that because he knows where he is going and is already so encouraged by how far he has come.

After he pays his last debt off (next month!!) he is going to start throwing money into savings and then take it from there.

I was on a high the rest of the day; I just love it when someone turns their life around like that!

(P.S. yes I did get The Letter the following week and yes...I Passed!! Most exciting letter of my life!!!)

Are You Putting Enough In Your Kid's 529 Plan?

2010-08-31T16:09:00.001-07:00

It's a rough, but pretty accurate, generalization that most Financial Planners will tell you to prioritize retirement planning over education planning.

And, for the most part, it makes sense. Your kids can take out loans for college.

But you can't take out loans for retirement.

This is also why there is so much great information out there for retirement planning: It bar none is most people's #1 financial goal.

But education funding is also a big one, and while it's general knowledge that your next step after finding out you are expecting a baby is to open a 529, there tends to not be very structured planning for funding it.

That's why I am so excited about this Fidelity article that quantifies guidelines for 529 funding.

The numbers are bigger than I had anticipated, but just like anything else, once you know what your target is, you make adjustments to try to acheive it.

A classic approach to increasing your contributions for any goal is to do it in iterative steps: Increase a little at a time, but with high frequency, until you ease into the goal.

And no, there is absolutely no excuse to neglect your retirement planning for the sake of your kid's 529.

It may sound harsh and it may feel selfish, but the best gift you can give your future grown-up kids is your own financial freedom.

Fidelity Has Some Great Planning Tools For Free

2010-08-30T15:51:00.000-07:00

No, I don't get paid by Fidelity to say that, I just think they have a pretty good financial planning tool that is free (it's pretty much more relevant if you are already a customer).

You can plug in 3rd party holdings (as dummy holdings) so that you get a whole picture, and none of it costs anything.

One of the drums I ceaselessly beat is : Know Thy Asset Allocation!!

So often I come across someone who asks me a transactional question (e.g. should I buy Iraqi Dinar? yes you know who you are) and instead I say hey, step back.

First, what are your goals?

Second, now what do you know about how to get there from here? Do you understand investment basics (if not here is a great Morningstar tool I like, it's also free).

Third, then take a look at your asset allocation and see what you are heavy in (do you really need to be 90% large cap domestic stock?).

I love doing asset allocations; I think they are so illuminating and instructive.

My Refinance Got Super Ugly

2010-08-27T09:58:00.000-07:00

A couple of months ago I got a letter delivered UPS. I thought, hey, letter, must be important!

I opened it up and it was from my mortgage holder, CitiMortgage. It was offering a refinance. Since our rate is 5.625%, we were ripe for the picking.

I gave a call out of curiousity and got somewhat swept up in the process once I was offered a rate of 4.625% for a 20 year fixed.

So we started the paperwork and got underway. However things kept being unorganized on their part: We need this document, or that document, yeah sorry we didn't tell you initially and hey can you resend this or that and can you describe the reason this property of 22 years ago is in your history (which happened twice, I had to write up a lame ass sentence saying 'I lived at x address as a tenant in 1989 and 1990 for 2 years' and 'I lived at y address as a tenant for 5 months in 1994).

When they asked me to resend my tax forms for the second time I just about had it.

Then I read an article in WSJ about how hey, you don't want to go with the big banks and mortgage lenders, you want to go with smaller banks and credit unions because they will have better rates, a result of them wanting your business as opposed to the big banks who just take it for granted they don't need to offer the best rates.

Hmmmm.....so I contacted my credit union (First Tech Credit Union). Sure enough, great rates, but disconcertingly a full .5% lower than what CitiMortgage was offering me.

So I applied online.

I got a Good Faith Estimate outlining a rate of 4.125% for 0 points and 20 year fixed.

Then I let CitiMortgage know and said, hey, are you able to offer me a better rate, because the difference between 4.125% and 4.625% is pretty hard to ignore (let alone the fact that the settlement costs with First Tech were over $2000 less than CitiMortgage's).

It got ugly.

So I decided to post the thread, removing names to protect the 'innocent'.
-----------------------

Dear Crazy CitiMortgage Lady:

I am reviewing the basic terms of the refinance and have 2 questions:

1) What is the Loan Amount of $362,334 based on?

After paying our September mortgage (next week), our balance will be $355,470.

$362,3334-$355,470 = $6864 difference.

2) Rates have lowered even further since we started this process. Why is the rate you are offering for this loan still at 4.625% ?

I can get a rate from my credit union for 4.125% and 0 points for 20 year fixed term.

That's a .5% difference; enough to make me pause and wonder if this is the best terms you have to offer and that we could get in the market.

FG

-------------------

FG,
Interest rates have not gone down, since I locked you they have gone steadily up, in the last 2 months, it is just a gimmicky perception that rates have dropped, absolutely untrue. Once I lock you in, if rates go up or rates go down, you are locked, as we pay to commit your loan. We will get an up to the minute payoff, including payoff interest prior to closing, the loan amount is based on your loan payoff plus closing costs. Thanks
Crazy CitiLady

-----------------

CC,

I have a quote and am approved from my credit union of 4.125%.
That's a full .5% lower than the rate you all are offering.
20 year fixed.

FG
---------------
FG,

Credit union’s use mortgage brokers who charge $2,500 to $12,000 more than Citi to do the loan, typically $6,000 more than Citi to do the loan.
CC

--------------------

CC,

Credit Union is actually a full .5% LOWER and that would mean a mortgage payment of $2178.

Our current mortgage payment is $2302.

This means we 1) lower our interest rate from 5.625% to 4.125% and 2) our terms from 23 years to 20 and 3) our payment from $2302 to $2178. Their estimated closing costs = $2134.

We can do better than CitiMortgage

FG

-----------------------

FG,
Brokers and banks that use brokers have no funds to lend. They turn around and sell the loan to Citi or another manor bank. So they have to add their junk fees on top of ours. So their costs, which you typically don’t see all of until closing, are on average $6,000 more than mine. Plus you have to start the process, appraisal and everything from scratch.

I checked and interest rates have actually gone up since I locked you in on the 20 year fixed at a very low 4.625 @ 0 points 4.75 apr. I know you are looking at some gimmicky broker rates that will end up costing you thousands more. Since I have you ready to close, and you won’t have to repay for the appraisal, I have asked my manager if there is any concession I can offer you to close. I will left you know what I hear today.

The rate today for refinancing on a 20 year fixed at Citimortgage is 5% @ 0 points at 5.125 APR and you are at 4.625. It is very difficult when rates that are too good to be true are blared around to the web, I understand. If you go with another lender, your loan may not end up back at Citimortgage and if you have an escrow account with us for tax and insurance, you will have to pay 6 months taxes and 14 months of insurance to refinance with a different lender. Then wait a couple of months to get back your current escrow account. I will be back in touch. Thanks
CC
-------------------------------

CC,

Paying for a new appraisal is insignificant when I have an interest rate that is a full .5% lower than yours.

That equates to a much quicker breakeven point, not to mention thousands of dollars more, over your rate, saved through the life of the loan.

I have a 4.125% with 0 points from our credit union.

If you are able to match that please let me know.

FG

-------------

FG,

If that was a real, deliverable rate, without costing thousands more than Citimortgage would charge.

CC
---------------

CC,
In comparing your Good Faith Estimate with theirs, backing out box 10 (interest) on each, it's your costs that come in thousands of dollars more, not theirs.

Their Good Faith Estimate total estimate settlement charges = $1971 (backing out box 10).

Yours = $4146 (backing out box 10).

A difference of $2176 in their favor.

Not to mention the thousands of dollars I save over the life of the loan with a .5% lower interest rate than yours.

FG
-----------------

FG,
I just emailed you that you are at 4.625% @ 0 points at 4.75 APR on 20 year fixed. This is lower than the current 20 year fixed today. I will get back with you and let you know what we can do. Thanks CC

---------------------

CC,

I already have a lock on the 4.125 and there are 0 points.

Their origination charge, box 1,is $65.

Yours is $790.

Settlement Fees cannot go up by more than 10%; this is on page 3 of every GFE form.

The most my fees could possibly go up with the GFE I received from my credit union is less than $200.

Box 3 does not at all apply to my final settlement costs because I have no intention of using other services than what the credit union identifies, I do not do escrow, and homeowner's insurance as well as daily interest charges are not actual settlement 'costs', as they are functions of owning a home and are costs normally incurred through the course of home ownership.

The better rate for us, as well as lower costs when I compare GFEs (and even when I factor in 10% max increase in costs), is with our credit union.

FG
--------------------

FG,
I will cancel your loan. Good luck

CC

--------------

I just think it's a bit crazy that CitiMortage didn't really try all that hard to keep me as a customer, especially since we also have our rental property mortgage with them and I will be refinancing that one too after primary residence.

Guess who I won't be going with for that refi?

So, basically, CitiMortgage has lost out on not one, but two refis that are very good quality (high credit scores, high equity each property).

August Balance Sheet: Up $17,600!

2010-08-17T16:49:00.000-07:00

Wow and that is even with the stumble the market has taken over the last month.

I will take it.

We reached a really fun milestone in April and since then it's made gains look a little smaller in proportion.

I like looking at $ amount month over month vs % (I do % semi-annnually).

The funny thing is is when you start to build your Balance Sheet the $ is really small and the % are really big (assuming you are contributing to it's balance).

So you have these triple digit gains, fun!

Then the Balance Sheet reaches a certain point where the % looks small (single digit) but the actual number is quite large.

When I look at the fact that we are maxing out both IRAs, 401k, HSA, have rental house with positive cash flow, and reducing the term and loan rate on primary residence, well it feels pretty good and I have a whole lot of peace of mind that things will be just fine.

Just Bought More VWO

2010-08-17T10:28:00.000-07:00

I really like ETFs and I really like how efficient they are for buying into emerging markets. You really couldn't buy into emerging markets without buying an actively managed fund with an expense ratio close to 2% until these ETFs came on the scene.

I like VWO and VEU (although VEU is also developed markets).

I like the fact that their expense ratios are ridiculously low at .25% (the expense ratio, which every fund has, is what you pay on an annual basis. For actively managed funds, they can be high.)

Whenever I get a batch of $3000 in an IRA I buy an ETF; this helps me Dollar Cost Average and it helps keep me from buying too often, as ETFs do have commissions (they trade on an exchange, thus the name Exchange Traded Fund).

But my commissions are only $7.95 so that's very doable.

I have looked at iShares and do have EFA, but am underwhelmed with their emerging markets equivalent, the EEM.

Also, my very first Emerging Markets fund was ADRE. I like that it was larger companies and heavily weighted to Brazil.

But when I run a comparison of it to VWO, they mirror each other.

Since ADRE has an expense ratio of .30%, which is just barely above VWO's of .27%, but still higher, why pay more for essentially the same thing?

Anyway, also since getting higher asset allocation in Emerging Markets is a priority this year, this will help get us towards that asset allocation goal.

Stay Away From Anything Hoover Makes

2010-08-13T15:56:00.000-07:00

About 4 years ago I was vacuuming with a 9 year old Bissell I had bought at Target for, oh, $80 or so. I hadn't really expected it to last long since it was just a basic vacuum and I didn't pay much for it.

So I decided I'd go to Costco because I trusted them to have pretty good value for appliances and household items.

There were vacuum cleaners available: A super low end one of a brand I'd never heard of, and a 'Hoover WindTunnel2' that was around $400.

"Wow, must be a good vacuum cleaner if they want $400 for it", I thought.

Then the fun started.

"Whoa, this thing is heavy! And look how big it is!" said Bear once I got it home (I left it in car for him to take out...silly me...hadn't thought that someone would make a vacuum cleaner that was unwieldly for the normal vacuumer).

I started using it and, yes, it was heavy. It was hard to use because it was so cumbersome, but really, I have just never paid attention to vacuum cleaners! They just 'always worked!'

When I filled up the first bag, I went to my local home store to find a replacement.

Nope.

I ended up having to pull the frickin' Yellow Pages out and look up (and call) vacuum cleaner stores (they are still around, good thing!).

"$43.15" said the Salesperson as I bought 2 replacement bags.

I thought that was steep but realized, well, I just bought the dang thing so I had to use it.

And then it started falling over backwards on itself.

And through time, after falling backwards on itself several times, it stopped being able to stay upright all by itself.

And so, this picture above is exactly what it does unless you lean it up against a piece of furniture or a wall (try vacuuming stairs with this scenario, it's literally supported by my backside as I vacuum the stairs).

So that's it for me. After $400 and at least $400 more in replacement bags just in the last 4 years of ownership, I am beyond disgusted.

Didn't Hoover used to be a good brand?

One that you could trust?

Tomorrow I'm going with Dyson, and this piece of Hoover crapola is going to a new home: The Dump.

Refinancing Has Gotten Alot Harder

2010-08-09T15:51:00.000-07:00

I've only refinanced once in my life. It was the summer after we bought this house. Our mortgage broker called us and said 'hey! refi! might make sense!'. Or something close to that.

So we refinanced our primary residence and our rental property, and it took like 3 1/2 minutes (slight exaggeration).

Now here we are, 7 years after that last refi, and earlier this summer we got a letter delivered UPS from our mortgage company (that is a very good way to get someone's attention, btw).

It was a letter offering a sweet refi deal from our current mortgage lender.

I actually had already been thinking of refinancing, as our rate was in mid 5s. But I also was weighing whether it made sense or not, since we will be paying off the house within 5 years.

Oh heck I called anyway, no big, right? And got it reduced to a 20 year 4.6% WOW! So cool!

And then The Paperwork started. Now I expected some, since we had did the refi before, but this is ridiculous!!

It's now almost 2 months and I likely will next be asked for my birth certificate (sarcasm).

Some of the things we have been asked for that I have never ever seen before:

1) A description of 'property at x' that I rented, which was an apartment from 1988. As in over 20 years ago! And I was being asked what the nature of the tenancy was (what?!)

2) Same as 1); a description of 'property at x' for an apartment I rented for just 5 months before buying my first home with my ex-husband, back in 1995.

3) Copies of Social Security cards. Not just the numbers. The cards.

4) Schedule E of our 2008 and 2009 taxes (Really?!?!).

5) Copy of title for Grover, whom we bought last summer and paid off in January (carried loan for 6 months of 3.9%).

6) Copies of rent checks from our tenant at our rental house.

My gaw, I just know I am forgetting some stuff...but really....wtf?

The irony? The mortgage lender has the loans for both houses, of which obviously we have never missed payment, so what exactly is the big deal here?

I suspect this is just the new experience of refi.

That or the mortgage lender (CitiMortgage) is super gun shy right now and requiring their underwriters to get everything short of blood work.

I am excited about it though: 4.6x% for 20 years and our payment goes up only $12!!! Love it!!

The break even point for costs is 19 months, so we definitely see it as worthwhile (not paying the house off that fast).

Sheesh No Wonder I Don't Look At Those Red Plum Flyers, They Are Full Of Crap

2010-08-04T09:15:00.001-07:00

Every week or so when I am pulling mail out of the mailbox, I wrestle with those damn Red Plum ads.

I have a large mailbox like the one in this photo above, so it all expands and is a big fine mess in there when I open the side door to pull the mail out.

I usually just chuck the Red Plum papers without so much as opening it up.

But this week I decided, oh what the heck, let's take a look and see just what is in here anyway.

I tend not to use coupons as most of the things that have coupons are products that we do not use.

So I looked...and wow that's a bunch of crap.

I found absolutely nothing I would ever use AT ALL.

The closest were the grocery mailers, but I am not going to go to Safeway (which is a massive RIP OFF IMO) just because they have a sale on brocolli. (I once got a $50 gift card for Safeway and when I went there to use it, I could not believe how expensive the non-store-brands were).

I shop the stores I shop because I like the value and quality I get at them anyway; a mailer isn't going to change that.

Since we don't eat any of the highly processed foods from the main coupon providers, it is a lost cause to mail these to us.

But I did look, and I did give it a chance.

But no, won't be doing that again. What a vacuous waste of time.

I Don't Want To Jinx It, But I Think My Tenant Has Finally Settled In

2010-08-02T16:05:00.000-07:00

We have had a new tenant in the rental house since last March. We have never had a problem renting it out and have had great success with the tenants so far.

But when this one moved in well.....let's just say there were frantic phone calls and email slinging around for a good few months there.

Not acrimoniously, just 'hey this needs fixing and is that how that works' etc.

Squeaky wheel kind of stuff.

And while that was happening Mr. Gold Link Bracelet was as well.

So it was a bit much to juggle; that or I am super spoiled with stress levels. But, it sort of continued up until the beginning of July. I kept telling myself she was new to living alone, and coming out of a 25 year relationship, so she probably was in a little bit of a freefall was all.

And then...finally.....it stopped. And I waited. No email....no email....no new issues.....are we good?

I think we are good. Got the rent check last week and it's for full amount (priors were deducted for this, for that) and no new issues for over a month now.

So, whew! She really loves the place and I am hoping that it's a long term gig. I'd really like it to be a long term gig. It's always so much work when a tenant turns over.

This afternoon I got an email about the rental house but in a very good way: From a prior tenant asking if it's available, as she'd like to live there again!!

Now that's the kind of email from a tenant I will take with a grateful heart any day of the week!

July Balance Sheet: Up $10,903

2010-07-23T11:11:00.000-07:00

Which isn't much and actually is mostly our contributions that raised it.

Our brokerage accounts have flatlined.

OK, OK, not flatlined. They are actually all down.

Started sputtering in April.

Hey trust me I am not complaining, just putting it all in perspective.

We have had some big money house projects this summer which siphoned off the balances in our non-retirement accounts.

But, we have had alot of contributions to those accounts in the form of Mid-Year Bonus and vesting RSUs.

The Asset Allocation by % is nudging little by little away from primary residence, although we won't really gain traction until after next summer's kitchen remodel (which we are funding from our brokerage accounts).

So here's how the pie breaks down:

Retirement Accounts (incl. HSA) 28%
Rental Property 19%
Non-Retirement Accounts 7%
Primary Residence 46%

So our Primary Residence is not a majority of our assets!

That is really fantastic.

The Rental Property is part of our retirement strategy (when we retire we sell it, this strategy may change, but that is the strategy for it right now).

So when I add the Retirement Accounts and the Rental Property, thus all funds allocated towards retirement, they are 47%!

That is funny how they are almost same as Primary Residence.

I am happy they are more, even if it is only by 1%!

RePlumbing A House: The Height Of Remodel Misery?

2010-07-22T10:52:00.001-07:00

Bear and I bought this poor aging beauty of a house 7 1/2 years ago.

It hadn't been loved and maintained very well by it's prior owner.

It needed all systems updated and all the other usual suspects: new kitchen, bathrooms, windows, heck, how about just paint?

Yep.

So we approached the projects in order of priority/urgency (somewhat subjective to our inherent biases).

The kitchen would be last, as that would be our 'reward' to ourselves for getting so many damn things accomplished with it.

But 2 years ago, it was 'Replumbing The House'.

We have had all kinds of projects done on this house, and nothing comes close to the misery that replumbing provides.

Between the removal of walls, the EXPENSE for things you will never, ever see (hello, it's behind walls!), the multi-day nature of it, well let's just say I'd rather see an electrician 12:1 over a plumber.

So imagine my dismay, earlier this week, when water started dripping from below the 2nd floor toilet.

Into the kitchen sink.

When we had this project 'done', the plumber that did it, well, he didn't do a good job.

So the company has had to be out 3 times as a result.

Today is the 4th time.

Yes, that plumber got fired after the 1st time they had to come back.

But still.

I just really, really, hope this is it.

And, I am so very glad we did not get the kitchen remodeled right after that replumbing, because who knows what would have been damaged?

Seeing water coming down from kitchen ceiling into bright shiney kitchen would have really been beyond frustration.

I am glad this doesn't cost us anything (it is replacing a pipe that that EFFER that got his arse fired didn't replace to begin with and should have).

On a happier note though, our house looks lovelier than it ever has.

Between getting all the interior walls painted and the last batch of new windows last summer, a runner on the hardwood stairs and the exterior painted this summer, it is very encouraging and satisfying to look around now and see what we have done.

My advice?

If you ever buy an old home: Anticipate not just the cosmetic, but also the systems. And yes, you really do need a solid 5 digits put aside EVERY YEAR for stuff until you totally debug it.

Thanks For The Laugh, Kevin Turner, I Needed That

2010-07-15T08:19:00.000-07:00

Hoo boy here we go again. The corporate personification of the arrogant, awkward Teen with very low emotional intelligence is....yep.

MSFT.

And what do we find whilst stumbling through this morning's news, with coffee in hand?

Another bombastic article from one of the MSFT princes about how idiotic and out of touch their competition is.

*air sucked out of room*

Some of my favorite quotes:

"The 'go do' is don't let customers get Googled"

Turner even mocked Google's oft-sited corporate statement to do no evil.
"We don't have a mission statement to say don't do evil because we don't need a statement to not do evil".

Umm.....awkward....desperate....

And as if that isn't enough, how about this from WSJ?

Another quote:

"It looks like iPhone 4 is their Vista, and I'm ok with that".

This all reminds me of the obnoxious kid in high school that thought he was really funny and much smarter than everyone, but in reality everything he did and said came across as immature and only served to reveal his insecurity.

This guy used to work at Wal-Mart (hey I am sure lots of smart people there, I just suspect being a C-level at Wal-Mart is a bit of a different challenge than a C-level for a Technology company).

Another 50 something has-been golf player out of touch with the consumer market (Microsoft's Don Quixote Project) and who that customer is.

When Contributing To A 401(k) Isn't Enough

2010-07-14T09:00:00.000-07:00

For my whole adult life I have been increasing my contributions to the 401(k), always striving to max it out every year.

Having reached that target, we started contributing to IRAs, and striving to max those out every year.

This year Bear and I reached a very nice place to be: Having to radically decrease the contribution as a % of paycheck so that the 401(k) maximum is not exceeded, AND having maxed out our IRA contributions.

So....now what choices do we have to contribute to retirement accounts?

Well, there aren't many.

We are maxing out 401k, IRAs, and HSA. All tax deferred accounts.

We also have our rental house, which you could argue works like a tax deferred account, since it's not a taxable asset (with the exception of property taxes!) until we sell.

Once I start earning income in my LLC, I can throw up to $11,500 into a Simple IRA, so that will also help.

When I add those up we are definitely hitting over 20% gross pay, which is my personal goal with retirement-designated assets.

There is also cash value life insurance to consider for a tax deferred account, but no thanks. Between the fees, the complexity of the instrument, and the poor investment options with it, it seems like a viable option only when we are looking maybe for an ILIT (got a ways to go for that!).

You could also argue we could buy an annuity, but again, no thanks. High fees and opportunity cost just to buy some baseline income stream.

Alternative Investments: MLB ETFs?

2010-07-09T14:03:00.001-07:00

There's a new game in town: Publicly Traded Master Limited Partnership in the form of an ETF.

Seems like a great way to diversify, right?

Usually these MLPs are in oil&gas, which you can make a great argument are a good sector to be in for growth as well as the attractive dividends they throw off.

I think the tradeoff for losing the tax advantage for losses may be offset by the further diversification within the ETF, but that doesn't mean I am going to rush out and buy one of these.

The 3 on the market, so far, are:

AMJ
MLPI
MLPN

They are all pretty new and have a way to go, so who knows?

I will keep my eye on them to see if they makes sense for the future when I am looking at more diversification.

Mortgage Arbitrage

2010-06-14T10:59:00.000-07:00

...also known as, 'I could have put more down payment on my house, but I decided to chase windmills instead'.

Actually that's not quite fair.

It does make sense in very very select cases to do Mortgage Arbitrage.

But perhaps I am getting ahead of myself here, as you may not even know what Mortgage Arbitrage is.

It's basically buying into the concept that with money you would have put towards paying down your mortgage balance, you could actually make more yield investing the difference in the market, presumably because your mortgage rate is so low.

For example, you have $100,000 to put down towards a new house.

You decide to only put down only the bare minimum and 'invest the difference'.

Ah yes....'invest the difference'.

Are you sure you have the emotional discipline not to tap it through the years for, say, a vacation, a car, or other consuming asset? The emotional discipline to not sell when you get scared? Or, the reverse, the emotional discipline to sell after significant appreciation?

It's a pretty common 'strategy' I hear that people consider, but guess what, before you even consider it you have to Know Thyself.

This strategy is definitely not for most people because it is added risk and added leverage.

It's best left to those who are comfortable carrying a balance but see the trade-off as one of being able to realize arbitrage by investing in higher yielding assets than the % that the mortgage is in.

Don't let anyone talk you into doing this (beware if your mortgage broker is saying you should do this! Of course they want you to do this! They get a bigger loan amount out of it!!).

Seek out an experienced 3rd party who can walk you through the pros and cons and, most significantly, explore with you whether or not it maps to your future plans you have and whether or not it maps to your risk temperament.

For the record? I prefer to own a home free and clear. It may not make the most sense if, oh, I could realize a 4.x% loan, but there's no substitute for the peace of mind and options owning your own home provide you with.

Registered With The State and On My Way

2010-06-09T10:13:00.001-07:00

Wow, that was fast. The state completed my registration process in 2 weeks, wow!

(NOTE: I started the journey on April 23, but got my FINRA account, a process which took several weeks, just a few weeks ago)

I had a hard launch date of next week and am sticking to that; frantically getting everything set up so I am ready to go on Monday morning.

It's all very exciting! And I am affiliated with a CFP (r) and CFA who are very experienced and come highly filtered (No More Mr. Gold Link Bracelets!!).

I sent my website to a few friends last Friday after I launched it on my hosting server, and feel pretty good about all this.

This is exactly what I want to do and I see myself doing this for the rest of my life.

I wake up totally excited every day to be doing this!

It has been years in the making to get to this point but I am here!

And here are some tidbits I discovered along the way: Everyone freaks out about compliance. And...it's not that bad. If you break down the process, work with your state dept., it's pretty doable.

But you have to be pretty process driven and have a strong skill set around writing and organization (hi!).

So here I am, sitting in an upper room I have converted into my home office, with a view out one window of the north and a bunch of trees and a view out another window of the west and the mountains.

No complaints!

So I am now a Registered Investment Advisor and get to be what I have wanted to be: A fee-only financial planner.

No pushing financial product.

No selling.

Just financial planning and, for those that will want it, professional investment management.

Pinch me!

Finding Your Financial Confidence As A Woman

2010-06-04T13:14:00.000-07:00

It'll baffle me til the day I die, but women just don't think they have what it takes to manage their finances beyond clipping a coupon here and there.

It sometimes drives me to despair: Why do women abdicate this absolutely crucial aspect of their life?

So it was encouraging to see this new book come out specifically addressing women and their lack of confidence when it comes to money matters.

It's one of the things I am really excited about as a financial planner: helping women to get educated and empowered regarding their financial literacy and financial future.

If you are a man reading this, make no mistake: You have no inherent trait that makes you better at managing and investing money than a woman. Absolutely none. It's just a cultural legacy that desperately needs addressing.

If you are a woman reading this, stop being intimidated already. You are not stupid and your man does not have some genetic trait that makes him better at this than you. You have to own your future and you have to stop not understanding finances. If you continue to not empower yourself to gain financial literacy and be a partner with your future, you will have only yourself to blame when you are in your 50s and realize oops....husband didn't actually know what he was doing or worse, husband is gone due to deceased or divorce.

Perhaps one of the more bleakest scenarios I have encountered was when I was meeting with a team for a volunteer opportunity to do pro bono work.

One of the team members said to me "my wife hates anything to do with money, I (the husband) take care of all the finances...oh but of course on big items we *discuss* it". I blame the wife more than the husband, because she is just blindly going along with whatever he does, staying a child financially.

Even if they have a fabulous marriage and grow old together, she likely will become a widow, and do you really think financial literacy becomes easier with age?

"My husband always took care of that".....sadder words may not have ever been spoken.

Robbie Bach Leaves Microsoft: FINALLY

2010-05-25T09:57:00.000-07:00

Not only is he not being shuffled to another division, he is outright leaving.

Unfortunately, likely with a ton of cash from all the stock options through the years because he did such an amazing job of......?

He did pretty by that alright (stock options/awards), all while dismantling any viable consumer product MSFT had, which was a very very shortlist (Flight Simulator, anyone?), and while keeping loss 'leaders' (Zune, XBox, Windows Phone) chugging along bleeding red to the tune of 10 digits.

Call me crazy, but if you head up any sort of consumer technology, shouldn't you be pretty aligned to using, let alone understanding, the market for the technology?

The part about Ballmer espousing how RB personified 'creativity, innovation, and drive'.....wha? So....totally missing the mark on basically every single one of your products (again, exception is Flight Simulator) makes you 'creative and innovative'?

I guess the following statement about how RB is a 'personal friend' of Ballmer's, well that sort of explains the long long long leash this guy had that led every consumer product MSFT has ever launched to be stillborn and every team re-org'd under him to be run into the ground.

And then...J Allard 'has brought a game changing magic to MSFT for years'....huh?

I am not alone, by a long shot, in these sentiments.

Registering with FINRA and the State

2010-05-20T15:59:00.000-07:00

Oh this process is one only Kafka could love.

So 4 weeks ago I started down the path of creating my own LLC and registering with FINRA.

This.Is.A.Process.

I am only now sort of coming up for air and stepping back, as I have finished a significant portion of this and am beginning to get the sense that I have turned a key corner here.

The whole thing will take several months after submitting.

I found out today that my LLC paperwork, of which I filed 3 weeks ago, has a good 2 months to go still.

In parallel to that is filing with FINRA, which really is filing with the IARD, which really is filing with the state, but not necessarily the SEC.

And, since I only just last Friday got my FINRA account, I only just this week started this whole process.

But, I just finished Part 1 of it, and now am moving on to Part 2, so am feeling pretty good about it.

Once I get it all done and submitted, the queue and review process is 2-3 months.

And, in that 2-3 months, I will be continuing my search for the Right Printer, the Right CRM Tool, the Best Encryption Software, the Perfect web site design (I got a copy of Expression Web, we will see how far I get with it!), and all the other 1,001 little details that go into starting up my own Registered Investment Advisory firm.

The 3 weeks between submitting my FINRA account request and last Friday were spent writing up my Business Plan, Marketing Plan, Operations Plan, Technology Plan, Engagement and Financial Planning Process, Client Assessment, Investment Policy Statement sample, and Privacy Policy sample, Financial Planning Disclosure sample, and Compliance Policy sample, and designing my business card (thank you Microsoft Publisher!).

And sourcing a kajillion different sources for various software pieces I will need, sourcing sites to meet clients, and talking to various other financial planners out there who are also independent Registered Investment Advisors.

So this is just me taking a breather, lifting my head up, and taking a look around.

It's exciting to be doing this and I feel I have made great progress. I won't be up and running for a few more months because of the process to get registered with the state as a Registered Investment Advisor, but I need that time anyway to absorb everything and make sure I make the right decisions and get my office set up and my procedures in place.

Mr. Gold Link Bracelet seems like 2 years ago, not just 2 months ago.

I can't believe everything I've done so far (passing Series 65, submitting LLC and FINRA registrations, etc.) and now look back on those 4 weeks as having learned quite a bit that actually really helps me get started!

I am looking at a mid-July to mid-August launch and am super excited.

How Much Do You Give Away To Something Bigger Than Yourself?

2010-05-06T12:47:00.001-07:00

"Are we doing any better at giving our money away?" Bear asked when looking at our tax forms last month.

''3.5% of net take-home!", I said, after grabbing it from him and doing the math from Schedule A.

I was pleasantly surprised; we keep bumping up the amount we give away every year through payroll deduction and through monthly checks, but we weren't bumping up the % much in the past.

Well that did change with Tax year 2009.

3.5% sounds paltry and by % definitely is.

But it's a pretty solid number $ wise.

My goal for our charitable giving this year was to bump up payroll deduction by 10% and to give 10% in monthly giving.

So far so good.

We focus it on 5 organizations we very much believe in.

Why not all through payroll deduction?

Because 4 of those 5 are faith based or faith affiliated, and no match for that (although with the case of 1 of those 4, too small to be in Employer Give dbase).

The other 1 gets about 40% of the overall charitable contributions we plan for the year.

One of the things that really took me aback when I worked my 1 month gig for Mr. Gold Link Bracelet was how every client either did not give anything or gave to the tune of a rounding error.

I tried not to judge that; yet....these were people paying for the services of a planner....it was really hard not to judge.

I obviously wasn't succesful at not judging, because it made me feel all superior to be able to go 'hmpf! well! that's stingy!'.

I do believe very strongly in giving something back though.

All The Financial Plans In The World Won't Save You From Yourself

2010-05-05T09:16:00.000-07:00

"When can I be your first client?" "When can you start managing my money?"

So you likely can tell what direction my path has taken me.

This industry is very embryonic for what I want to do; so I am choosing a mix of #3 and #4 and striking out on my own but...affilliate with another firm so I have a wingman, so to speak.

I have a mentor firm that volunteered, through the course of meeting with them, to sort of babysit me and provide adult supervision, but I won't be employed by them.

They are CFP and CFA, so obviously I am tickled pink by this.

We meet later this week to iron out some details, but at the end of the day this is the path I am now on.

So what exactly does this have to do with you and your behavior around finances and thinking a financial plan will fix you?

Oh, well that's where an interesting conversation I recently had with someone comes in:

When I was talking with them about what they were looking for in a financial planner, they started to say things like 'fix' 'make us $' 'beat the market' ayyyyy.......and this after they just got done telling me about their overblown lifestyle (living beyond their means, one is unemployed, partially living off savings).

So that's when it struck me: that would be behavioral finance intervention, not financial planning.

It also made me realize, when drafting up my business plan, that I definitely needed to identify what type of services I wouldn't be providing/types of clients I wouldn't be taking on.

And, yep, those that are looking to me as some sort of genie, and, worse, one they won't even listen to when I try to explain and educate, let alone try to get them to calm down and focus on their goals to map a financial plan to, well, not sure that would lead any place good.

Looking to make a balance sheet fun and sexy is not my idea of solid financial planning.

I just hope there will be enough people out there who value that and value a good solid approach to it all.

The Alphabet Soup of Financial Advisors

2010-05-03T13:16:00.000-07:00

One thing that really drives me crazy about the Financial Planning world is all the dimestore credentials out there.

I won't say which ones I think are dimestore credentials, but if you have been here before you know which ones I am talking about.

Anyway I stumbled upon this great list from CFP.net and this one here that would go a long, long way helping someone decipher all the various letters people use out there.

Of course I am biased to CFP (r) for financial plannning and CFA (r) for securities analysis, specifically fee-only for either.

These are the toughest credentials to get, depending on what the person's focus is (either financial planning or securities analysis).

Not saying there aren't good people out there that don't have these, because there are and I have met them (no, not Mr. Gold Link Bracelet!), and definitely at the end of the day you want someone on the same side of the table as you and that's going to be fee-only every time.

Tenant Please Settle In

2010-04-26T09:34:00.000-07:00

"I am at my wit's end with house projects" says the Bear.

I agree with him.

Light a match to it all and be done with it already.

OK maybe not.

Still, when I got a phone call 6 weeks ago while visiting my parents in Arizona, from our new tenant, saying that the dryer was making squeaky noises, I was so glad she was not standing in front of me at the time.

It is an old dryer; it's avocado!

But it always worked really well, so why replace it (especially since it's a rental house)?

But when we bought current Ball and Chain (I mean current primary residence), the dryer wasn't working from the word go (of course....Of.Course.) and so we did a midnight run to Lowe's to buy a replacement (this was also before I started using drying racks for almost everything, and in the summer, everything including the towels).

When we bought it I had in the back of my mind that since it matched rental house washing machine (even though it is for this house), that it would be the replacement for avocado dryer once it kicked it.

Well that day arrived in the form of us spending the better part of this last Saturday taking said dryer from this house to that house and ick look at all the crap behind these dryers get me the shop vac....

Tenant emailed me on Friday with a list of 6 THINGS she thought needed to be looked at....patience....breathe......

We looked at them and agreed with 2 of them with the other 4 being, as a friend put it last night, 'by design'.

The house and yard looks really great so I am hoping she is settled in soon and just calms the EFF down already (she was married for 25 years, don't even know if she ever lived alone before, so hopefully she will get the jist of it, because living in a house and taking care of it and surroundings is not the same as just living in a townhome or condo...more moving parts involved).

I have hope she will and it's just a matter of time.

If she doesn't....well then likely we will give her a 30 day notice next January to get rid of her (lease expires after a year, after which either party is free to give notice).

I took Bear to burgers and fries and beer afterwards...that put a smile on his face....

So we now have no dryer....I just can't get excited to go shopping for washer/dryer....note earlier mention of drying racks....but I do like the idea, now, of stackable.

I Passed The Series 65!!!

2010-04-21T15:47:00.000-07:00

Mind you, nothing as arduous as the CFP Board Exam, but still, it was alot harder than I thought it'd be.

Alot.

I suspect passing November's CFP Board exam made me a little overconfident.

I started freaking out last week as a result of massive fails on the mock exams.

I couldn't figure it out...is this thing really this hard?

Really?

I was definitely stressed but totally relieved when the score came back and I passed (nice for the test takers, you get immediate scoring).

Going to go out to dinner tonight to celebrate!!

So what's next?

Well I have an informational tomorrow with a firm I have really been interested in for over a month now.

I really hope they want to bring me aboard but if not, well, I likely will do my own LLC.

It's a bit unconventional and I don't know how long it'll take me to get all those 6000 hours, but I have confidence it would eventually happen.

RSU and NQSO Strategy

2010-04-19T09:45:00.000-07:00

When Bear was recruited to new employer, he got most of the goodies we had experienced at MSFT (I used to work there too, so yes, it's 'we').

But in addition to the usual suspects, he got RSUs and NQSOs (MSFT had switched to Stock Grants from NQSO ~2005).

With the MSFT, we pretty much cashed things in once they hit Long Term Capital Gains, because 1) we weren't feeling long on MSFT and 2) we wanted to increase our liquidity and 3) oh yeah we had just bought a new house.

So looking at strategy with New Employer's RSUs and NQSOs, couple things are salient:

1) I really think the company is very solid and stable. It's run very well and has a good sense of itself.

2) The stock itself is well valued and good dividends. P/E is a bit high, but that is partially because of the industry and partially because of the solid dividend payout ratio.

For now, I don't see any need to sell any of the holdings unless the reach over 50% of non-retirement account holdings.

I will be keeping my eye on dividend and LTCG changes though, because if these go up it makes it less compelling to hold (as well as rates for ordinary income).

Not that that means that it's time to sell, just that it needs to be taken into consideration.

The employer stock is custody at UBS.

I am not a fan of UBS, at least for the employee stock.

The website is horrid design and very difficult to find information.

The tallies on the different vesting schedules have to be done manually (this is stupid!!) and there's is 0 information on tax scenarios.

I also wasn't a fan of Smith Barney's website for MSFT employee stock.

Why are these custodians so sloppy with their UI for these holdings? Don't they understand we are potential customers for other services....duh?!?!?

Oh well, guess they have so much business it just doesn't matter to them.

April Balance Sheet: Up $29,997!

2010-04-15T08:45:00.000-07:00

And that buys a whole bunch of peace of mind, tell you what.

This has been a very fun month as far as the Balance Sheet goes. First we hit 2 commas a couple of weeks ago, and then things really went on a tear.

Part of all the goodies is Bear's employer is really doing quite well and the stock has done very well recently (good earnings that got alot of attention, and alot of demand for product lines).

I really like Bear's employer stock.

I like the company and the stock valuation.

With MSFT we were selling as we got into Long Term Capital Gains area.

We didn't have much faith in the long term growth of the stock (very anemic dividend payouts and sideways movement back then) and also our own immediate needs (buying this house for example).

I see Bear's employer stock as a long term hold.

No need to sell any for a very long time (except the NQSO, there's a forcing function there to sell before expiration).

Our retirement accounts really took off this month!

Lots of recovery and overall very fabulously fun to watch.

We now have a very solid base towards retirement, and are very confident we will be retiring by the age of 55.

So we are now approaching almost double digit percentage with non-retirement account representation in our overall asset allocation, which is very nice.

I'd like to buy more long term assets with some of the non-retirement accounts but if I consider that I do have some equity ETFs and the employer stock well, then it doesn't look like excessive liquidity.

Also we need more liquidity than usual because we have a rental property.

This month's Balance Sheet does not include the $6205 tax refund coming our way any day now!
Although most of that will go into the house in the form of replacing part of the sewer line and buying new washer/dryer, that will stay on the Balance Sheet because it goes into cost basis for house.

Fun month!!!!!

Series 65, You Are Harder Than I Thought You'd Be

2010-04-13T10:07:00.000-07:00

So, after passing the CFP (r) board exam, you'd think passing the Uniform Investment Adviser Law Exam (aka 'Series 65') would be a piece of cake, right?

Well, I thought so.

I started studying for it a couple of months ago, but with the Mr. Gold Link Bracelet turbulence, only started really attacking it a couple of weeks ago.

It.Is.Dry.Material.

Ayyy...I think I fell asleep whilst reading the differences between Uniform Securities Act and the various Federal Securities Regulations, most notably the Investment Company Act of 1940.

So.....boring.

But I have to know it pretty much inside and out (quick! what are the liabilities under The Securities Act of 1933? How about the ineligibility of certain affiliated persons and underwriters?)

Not my strong suit. Nope. Not by a long shot.

So I scheduled to take this Beast for next Wednesday.

I will be doing all the online mock exams this week.

True, not as arduous as the CFP exam, but also not quite the breeze I thought it would be.

Just Because He Has Alot Of Letters After His Name Doesn't Mean He Knows What He's Doing

2010-04-12T09:11:00.000-07:00

As we were driving through the front gate, I realized how long it had really been.

We haven't seen A&M for years.

We used to do alot with them, but our lives went through different stages, and there it is.

When they invited us over to their house this last weekend, I was looking forward to seeing their new house and meeting their kids.

A&M live a very large financial life. They have alot of assets from him being pre-IPO MSFT. He never spent any of it until he met M 11 years ago and they got married.

Although I am used to their lifestyle, it still catches me a bit off guard at times.

Pulling into their front gate, driving up to the side, well it was all very nice.

After giving us a tour of the house, we went to the back by the lake, and were just talking, watching the kids play.

"How do you like your new job?" M asked. Oh....I hadn't told her...so I told her very briefly about Mr. Gold Link Bracelet.

"You should talk to B, our financial advisor. He is very good and has many qualifications.", says M.

I was thinking CPA...JD...CFP....CFA.....

Later on, once we got back inside, M said "oh, come look at B's website".

I walked over and had to find something to hold onto.

B is a fraud of the Mr. Gold Link Bracelet variety.

Actually, worse.

CWPP....CAPP...RFC...ChFC....CMFC....CLU.....dimestore credentials, each of them (except maybe the CLU, which tells me he sells life insurance).

Oh-no......how to tell M that she was with someone with dimestore credentials that was trying to sell her a bunch of insurance?!?!

Well, I calmly said hmmm....yeah I am not impressed with any of those.

"For you 2, I'd like to see you with someone who is a combination of CFP, CFA, JD, CPA, Enrolled Agent, MBA"

Someone who has had to go through rigorous training and exams to attain actual certifications.

Not just going to a 3 day seminar and getting 'certified'.

B is your classic Title Whore trying to get a bunch of dimestore credentials after his name to make him look legit.

It was all I could do to stay calm and explain to them that all those letters were worth less after his last name than in a can of Campbell's alphabet soup.

I was trying very hard to be factual, and ask them questions about how he explains things, and how he has explained his costs.

She volunteered to show me one statement from one of her accounts....it was in a bunch of Merrill Lynch A and B share mutual funds.....aaaaayyyyyy.......

Once we got home I looked up his website to look more into what he does.

It got worse.

He sells variable annuities.

He called them 'equity indexed annuities'.

So here it is:

Please do not take any letters after a person's last name at face value.

Look them up.

Research what they actually had to do to get them.

Ask them what school they went to (have you ever even heard of it)?

Letters after someone's name don't mean a damn thing if you don't know what they mean and what's behind them.

What you want are these:

CPA. CFP. CFA. JD. MBA (but from where? find out).

And please please please ask how much things cost!!

Ask for cost structure for every investment or financial product they want you to buy.

If they try to get you not to ask, LEAVE!!!!

That is a bad sign, if they are acting put out, or as if you are stupid by asking about costs (this is what Mr. Gold Link Bracelet did to me, when I was asking him why he didn't include expense ratios on the fact sheets of mutual funds he was proposing to clients).

I know that A&M are now likely feeling sort of taken, but I don't know how else I could have told them they are with a guy with dimestore credentials who used to be an insurance guy and is now trying to rebrand himself as a 'financial advisor' for the wealthy.

Do I Really Need A New Washing Machine When The Current One Is Just Fine?

2010-04-06T14:40:00.000-07:00

This is going to be slightly embarrassing for me to tell you, but I have never bought a new washing machine in my life.

It's embarrassing because by now shouldn't I have prioritized a new washing machine, especially when our current one is over 40 years old?

That's right: 40 years old.

No one I know has an old washing machine.

Even my 86 year old Grandma's washing machine is newer.

But really, it works, clothes get clean, no clothes have ever been destroyed, and....I just don't get it.

Why replace it?

I feel like I would be buying a new one out of some vague peer pressure or societal pressure thing.

The forcing function here is that our tenant is telling us the dryer at the rental house is 'making noises'.

So we are likely going to replace it and we are thinking of replacing it with our 6 year old dryer from here and just buying a brand new washer/dryer for here.

So here it is, if you are absolutely mortified by this and/or lovelovelove your washer/dryer, please convince me of the value in doing this.

Is it just that I have always had old crappy washing machines and so don't know the difference?

IRA Strategy

2010-04-05T08:45:00.001-07:00

Between Bear and I we each have Traditional (Deductible and Non-Deductible), Roth, and Rollover IRAs.

The first 3 are a function of whatever tax bracket we fell into in a given year and whether or not it made sense to do a Roth IRA contribution or Deductible IRA contribution.

This makes it a bit complicated to keep things straight regarding what to buy with those contributions.

My very lazy approach to the matter is to buy securities with the same amount of money; this makes it easy to remember my cost basis. Not necessarily true to the principles of Dollar Cost Averaging, but close enough for me (especially since it means quarterly purchases and is balanced against the contributions to 401k, which is Dollar Cost Averaging).

So I wrote a couple of weeks ago I was thinking of some actively managed funds (Oakmark International) and I am cooling off on that.

I think I will continue with the ETF strategy, especially because I don't quite believe in any fund manager that thinks they know what the hell is going on in emerging markets.

Call me a skeptic, I don't care.

I like those Vanguard ETFs for emerging markets (whether just VWO or VEU with VEU being total world -ex US; an especially lazy way of doing diversification).

I have been averaging into emerging markets with those in the last 3 years.

Our asset allocation overall in retirement accounts is still overwhelmingly domestic, and I am definitely trying to get us more diversified in EAFE and Emerging Markets; this is part of us getting there.

So in also thinking more about this strategy, I think it sort of makes sense to not be so urgent about the cash in the Roth IRAs (we aren't talking much, about $3200 in the 2 separate ones).

Why?

Because if everything fell to hell in a handbasket, we can withdraw those contributions if we need to, and it won't matter if we have to sell whatever securities we had bought with that money at a loss.

So the Roth IRAs' cash amounts are just fine for now; I am more focused on the Traditional IRAs' cash.

In looking at our IRA contributions for Tax Year 2010 (which will start with next pay period; all prior ones for Tax Year 2009), I think we will just contribute to Traditional IRAs.

Why? Well because we will blow past the phaseouts for contributing to Roth IRAs with 2010 AGI.

Which is a good problem to have, especially since we can still continue to contribute to the Roth 401(k) since it has no income limitations.

$6205 Tax Rebate!

2010-04-03T09:55:00.000-07:00

Nice! Finally heard back from Tax Accountant yesterday on our taxes for 2009 tax year.

I knew it was going be a bit more than last year since we started our HSA and increased IRA contributions this year...plus bought Grover (new vehicle stimulus deduction) and new windows (tax credit for energy efficiency).

In going through the docs I noticed 2 mistakes: Underreported HSA amount and off IRA amounts.

So yesterday afternoon was a bit of email going back and forth on those issues and now, after 2 years in a row of catching errors on our tax forms, I am not going to be going back to this guy.

It sort of struck me yesterday actually that I can pretty much do our taxes now.

I have been a scaredy cat to do them just because I wanted peace of mind of someone looking over the stock options/awards, rental house activity, and phaseouts but....I can do this next year.

That $6205? Well that is going towards a couple of house projects we've had on the plate for a while.

1) Replacement of part of our sewer line (~$3500)
2) New washer and dryer ($3,000 but I don't really know; haven't started pricing them out).

2 Commas on the Balance Sheet

2010-04-01T10:47:00.000-07:00

I knew we were getting close on the Balance Sheet to this very exciting milestone.

It happened yesterday with the contributions to 401(k), IRAs, and HSAs.

How'd we celebrate?

Well, we watched a movie that I picked up from the library.

We made dinner (and drinks) at home.

And we went on a walk.

Those little habits, day in and day out, have added up to us being able to look at this Balance Sheet this morning and say, well, there it is!

We did it.

Good financial behavior (and, more significantly, being aware of your spending weaknesses), big and small, will get you there too.

Moving Forward

2010-03-30T09:44:00.001-07:00

So it's basically been 2 weeks tomorrow since I told Mr. Gold Link Bracelet to kiss off after 4 weeks of absolute hell working for him.

I'm now taking a look around and seeing what I want to do.

I have 4 paths in front of me I am considering; they are all very different from each other.

1) Stick my neck out there again and work for another RIA. I know what questions to ask this time around, but hmmm I don't know; it would really have to be the right one and I'd have to feel very confident about it.

2) Create an LLC RIA with someone else. Would have to definitely be the right fit. There is someone interested in doing this with me but I don't know, going slow here.

3) Create my own LLC RIA all by myself. Well obviously the risk is that I am new to all this and who am I going to learn from? I don't want to pay thousands of dollars to either Garrett or Cambridge; I have talked to people associated with them and I am not impressed with what they would have to offer me for all those thousands of dollars.

4) Work for a very large financial institution that is interested in talking with me. This one would be a high entry point, with lots of great experience and people to learn from. The downside is this is slotting right back into corporate america full time with all that entails for our personal life. Granted, I would just be doing financial planning, no client attraction activities, and so that is pretty compelling.

Believe it or not, #3 and #4 are the most compelling to me right now.

#3 because I could do everything on my own, at my own pace.

#4 because I would be making very very good money and working at a very high level; sort of the equivalent of where I was when I was at Microsoft (as far as corporate goodies, job cachet, all that). Although it'd be just that much more lucrative because I passed the CFP (r) board exams.

Bear took this week off, and I am trying really hard not to feel sorry for myself or feel stupid for going with Mr. Gold Link Bracelet or feeling like a loser.

I think after the meetings I have this and next week I'll have a better picture of where I want to go.

At The End Of The Day You Pay For The Bitterness

2010-03-26T08:50:00.001-07:00

I keep learning this lesson and I keep hopefully making the recovery earlier and earlier in the process.

I capitulated to Mr. Gold Link Bracelet regarding paying him for some pens I used and some water I drank while working at his classy firm (oops!! guess my bitterness isn't quite gone yet!!).

Actually it was him wanting me to pay him back for a book he bought me and for pay (says he overpaid me).

I found this out Tuesday afternoon.

I was in a knot psychologically and mentally because it was in aggregate to all the reasons I left after 4 weeks in the first place.

But, it just wasn't worth it anymore.

After telling him I'd pay him back and that I never under any circumstance wanted contacted from him in the future, I sent the payment schedule today to his office manager.

I will pay him back $40 a month. She just mailed me saying ok that's fine.

So basically I am going to do my best now to put this nightmare altogether behind me now.

The other shoe dropped, and it's fine.

At the end of the day, he lost more in this than me.

Whenever some injustice is done to me, I try really really hard to just move on. I would like to think I am getting better at this. I used to really stew and dwell on stuff.

But, considering that I left last Wednesday, and here it is the following Friday, and having dealt with that slimy Sunday afternoon phone call of his and then this email, I think I am doing ok.

You know who benefits the most when you decide to move on and let go?

You.

Meet With A Fee-Only Financial Planner At No Cost

2010-03-25T09:37:00.000-07:00

NAPFA sponsors The Money Bus, which if it ever comes to your city you should absolutely take advantage of, because it's a chance for you to meet, for free, with a fee-only financial planner.

No, there is no catch and no one is going to try to sell you Long Term Care Insurance.

I think this is great.

It's a way for people to just show up and ask for professional advice on financial planning.

No gimmicks. No telemarketing.

In addition to The Money Bus, NAPFA hosts free webinars for anyone to join in on.

Some of the topics coming up are 'Women and Money' and 'Changes To Expect in the Wake of Health Care Reform'.

These are all free. All are provided by fee-only Financial Planners, most of whom are CFP(r).

Arm yourself!

Mr. Gold Link Bracelet Continues Being Classy

2010-03-25T08:02:00.000-07:00

After getting a 'gosh, let's talk' voice mail from Mr. Gold Link Bracelet Sunday, I knew the other shoe was about to drop.

Knowing his MO, I knew it wasn't going to be as simple as me just quitting.

And it wasn't.

I got an email from his Office Manager Tuesday afternoon with an attached spreadsheet outlining that they had 'accidentally' overpaid me and hey could I also pay them for a book they bought me?

I feel sorry for the Office Manager; he was always a total jerk to her (one of my early red flags) and berated her for expenses (that he had approved).

So I said fair enough, I'll pay for the book, but overpaid? Hmmm no I don't think so...that was part of the agreement for me to start early.

Of course though Mr. Gold Link Bracelet didn't see it that way. And I knew he wouldn't.

I tried explaining to him no....that was part of the agreement to me starting early.

I am not convinced he understands that when professional people negotiate their starting terms, there usually are things beyond the normal salary that are provided as incentive.

So at the end of the day, after a couple of email exchanges with him in which I articulated for him, no, you did agree to this and it's separate, I decided to move on.

I have neither the time nor the inclination he does to continue with this.

The amount of money we are talking about?

Significantly less than 4 digits.

Really? His time is better spent over this than him focusing on his business?

Exactly.

Going To Buy More VWO Tomorrow

2010-03-22T20:53:00.000-07:00

One of our goals this year is to continue realigning the asset allocation to include international.

We are on target with international developed markets since we dollar cost average into them via Bear's 401(k) and I like VWO for emerging markets (a Vanguard ETF).

I've bought 2 other batches of VWO in the past with IRA funds and so this will be my 3rd batch.

This is with IRA money.

I buy batches of ETFs for every $3,000 of IRA money; which makes it super easy to remember cost basis.

It costs $8 to buy each batch and the expense ratio is only .27%.

It's a great way imo to get more balanced to include more emerging markets.

I don't try to 'time' the purchases as I think it's more important to acheive the asset allocation I am going after. Plus I don't think timing is as important with funds as it is with individual securities.

Timing would be more critical if I was doing big batches one at a time; but I'm not; I buy throughout the year in order to take advantage of some dollar cost averaging.

There are some residual $1900 and $1500 amounts in cash reserves for a couple of IRAs (not the one I am buying for tomorrow) that I'll likely do some smaller ETF purchases or buy Fidelity Spartan FSIIX or Oakmark International.

The only thing about Oakmark International is it's expense ratio is 1.17% but David Herro is one of the fund managers of the decade (the other 2 being Bill Gross, PIMCO Total Return Fund and Bruce Berkowitz, Fairholme Fund).

The other actively managed funds we own are the Oakmark Equity and Income, the Lazard Emerging Markets, and the Russell International Growth SMA.

I don't know, need to think about it a little.

I am not hard core index purist but I also want to make sure I can trust the managers and that the expense ratio makes sense to me.

The nice thing about the Oakmark International vs. FXIIX is Oakmark International gets us 35% more emerging markets than FSIIX (which is only EAFE).

OK well tomorrow will just be VWO and I can think a little bit more about Oakmark International.

The higher expense ratio is justified by owning emerging markets; in general emerging markets active management is going to take more time and talent than say domestic large equities (The Growth Fund of America, I'm talking to you).

No load, of course, and pretty well run fund. I like Oakmark in general even though yeah no fund company is all good funds, but Oakmark seems more disciplined and focused in general, at least what I have gathered so far in owning Oakmark Equity and Income.

Women, Let Alone Black Ones, Don't Deserve His Respect

2010-03-22T09:23:00.001-07:00

"Here, you can have mine", he dismissively said, as he tossed the Senior Trust Officer's card to the person who had asked us if we had gotten the trust officer's name.

We were at a lunch last month. It was my 3rd day with Mr. Gold Link Bracelet.

In the middle of the first speaker came in this very elegant, very professional woman who sat at our table.

During the first speaker she asked a question which showed the depth of her experience. It wasn't done in a braggy way, it was just a very good question for the speaker's topic.

During the break, she leaned over and asked us for our cards (this is very common in the industry, as people like to know what others focus their practice on in case they have a need to partner with someone with your expertise).

Mr. Gold Link Bracelet handed her his card (I didn't have one yet) and she gave each of us hers.

I noticed her title, Senior Trust Officer, and asked her if she knew K, someone I knew who was also in her area.

She did and we (her and I, but not Mr. Gold Link Bracelet) talked a little.

She ended up leaving after the second speaker, which was no surprise, as she was very senior to be sitting through the last speaker.

At the end of the session a woman from another table came over and asked us if we had the name of the senior trust officer, as she wanted to contact her, since she seemed very knowledgeable about the first topic.

Mr. Gold Link Bracelet just tossed the card to her, saying, 'here, I don't need it'.

Really?!?

You don't need to network with people who have 30 years of trust experience?

If he was a white man with those same qualifications would you have dismissed him so quickly?

Now, Dear Reader, do I really need to tell you what I think was going on here?

Am sure you have reached the same conclusion I have.

Mr. Gold Link Bracelet Called Me This Afternoon

2010-03-21T17:50:00.000-07:00

I can't believe it. He called my cell phone at about 1pm this afternoon (this is a SUNDAY).

I did not pick up.

It went straight to voice mail.

He'd like me to call him back to discuss and better understand my reasons for quitting.

I gave him 3 specific reasons why I quit.

He does not need more.

Calling me on Sunday afternoon, total irony (which I am sure escapes him).

Amateur.

You Can't Buy Class

2010-03-21T10:57:00.001-07:00

So basically it became an observation of a poor boy trying to be born into 'it'.

I consider myself, Bear, and many others to be self-made, and hold high regard for those that have had to venture out into this world with very little support and carve a life and career for themselves.

Gold Link Bracelet Boy has had to do this too...but he tripped up on discernment.

"I wish I had a trust fund", said with envy when discussing a client.

"I wish I had some rental property", said in that poor boy way after mentioning that, in addition to Bear and I, many of our friends also had rental property.

"Must be nice! I often wonder how different my life would have been like if I'd have been born into money"

"I bought it for 'x' amount off of eBay" said in a very bragging sort of way when talking about his luxury car....but...not realizing he got it for 'x' amount because it's one of those luxury brands whose older models (it was a model that wasn't just 3 years old, but 3 models old) turn into poor boy desperation in seeking status...he even kept the international plates on it that the prior owner had on (gold link bracelet boy has not traveled, not even to Hawaii).

"He's rich, he lives in a really big house"

"What's NPR?"

"I'm not a good writer; I don't like to write."

"There have been times I have almost left my wife"

"You mean champagne is a region, not a drink? What's sparkling wine?"

All signs of the Poor Boy Inferiority Complex.

It is crucial in this industry to be able to authentically look and act the part, to not fake it, but to be able to project success, class and competence.

Would you hire a CPA or an attorney who envied your success and lifestyle?

Even yours truly was on the receiving end of this.

Knowing where we lived, knowing what I drove, knowing where Bear and I were in life.....it got pretty awkward at times when I'd casually mention something, and he had no idea what I was talking about and looked at me either angrily or with confusion...or worse, in awe.

Using a pen (with a luxury car brand name prominently printed on it) to point to different points in his presentation with the clients which were, in his mind, more 'classy' and higher up the food chain than him.

Wearing a big, all gold, brand name prominently displayed watch (gold watches were a status symbol, what, 20 or 30 years ago?)...again bragging about the price he got for it off of eBay.

Sort of the equivalent of seeing people who are finanically struggling but desperately seeking respect buying clothes with misplaced brand labels on them (e.g. a jacket with a big Cadillac emblem on it, a t-shirt with a luxury brand printed on it in big metallic paint).

The claws are out due to how he treated me, how he treats his office manager, but more importantly, how he treats his prospects and clients.

If I Got Suckered, What Chance Is There For The Common Person?

2010-03-19T09:06:00.001-07:00

So I already told you I quit my job after 4 weeks of sheer unadulterated hell.

I saw some incredibly disturbing things regarding how he treated clients and prospects.

I can't quite talk about them yet, but at the end of the day, he wasn't forthcoming to clients and his goal regarding financial planning wasn't to help people reach their goals: Financial planning was seen by him as the means to the end for his own purposes.

What were those purposes? To get assets under management.

Assets under management means you are handing over your investments to someone else.

It means you are going to pay them a certain percentage to manage your portfolio for you.

Now, don't get me wrong, there's a place for that.

There are lots of people out there that aren't comfortable managing their finances.

Totally reasonable and understandable.

However, on the other side of the table, how do you know who to trust with your portfolio?

Well, this guy basically said and did whatever he could to get the assets under management.

Financial planning was seen as an afterthought; the means to the end; sort of a facade to make his outfit look a little more professional.

When I was interviewing with him, heck, right out of the gate when I first met him, I said 'I want to be a fee-only planner'.

He said he was a fee-only planning firm.

He isn't.

Because in my employment agreement was listed an incentive for selling Long Term Care Insurance.

WTF?!?!

This was after I had clearly articulated to him during the interview process that I was not at all interested in selling insurance, and that he needed to clarify that for me, because I did want to work for a fee-only and be fee-only.

He effing lied through his teeth, saying, well, actually, no that was not what he was, that he after all wasn't really interested in selling long term care insurance.

LIAR.

And, he didn't know a damn thing about financial planning.

He just hired me thinking I'd add a little bit of class and competence to his outfit; he himself knew very little, almost nothing, about how to put together a financial plan.

For him it was all about getting Assets Under Managment.

I saw him lie to clients, I saw him present 3 star mutual funds to clients. He obfuscated the rationale for the funds he was recommending, and he never discussed expense ratios.

When I asked him why expense ratios for the funds he recommends aren't on the fact sheets, he turned Mr. Hyde on me and attacked me for being an 'indexer' and that those aren't the clients he wanted and that he had this concern when interviewing me (that I am an 'indexer', said like I am some idiot).

He got very aggressive with me.

Later that day, in a ridiculous little 'staff meeting' he was asking me about how following up with prospects was going.

I told him I was discovering that the best time to get ahold of people was in the morning.

He said that actually, no, the best time to get ahold of people was from 7pm-8pm, weekday evenings, and on Saturdays and Sundays.

And that that was what he expected me to do: To call people, at home, in the evenings and on the weekends.

And he said, very patronizingly: "But, hey, we can make up some of that time during the normal workweek, of course."

Clueless Little Con Artist, right down to his gold link bracelet.

Fate was sealed when he was speaking those words, because not only was I finding out that the emporer wore no clothes, but I was seeing him for what he truly was: One of the most unethical people I have met in my life.

Oh Dear Reader there is so much more to this story, but those are some salient points.

Oh wait, I did tell you that he volunteered to me that he used to check the obituaries, looking for who died, then would contact the widows left behind?

Dear Reader, I Quit That Job

2010-03-17T10:33:00.000-07:00

Yeah, I know.

But it's not for the reason you might think, because since I started a month ago I have been mum about what I have discovered since Day 1.....many, many, many red flags.

The fate was sealed yesterday afternoon.

After work, I got in my car and called a mentor of mine that has been a very crucial part of my journey.

She never minces words and tells it straight up.

She told me what I already knew (I just needed to hear it from others I respect).

Then I called another mentor.

Same thing.

Then a cousin I am super close to who is not in the industry: Same thing.

Then ANOTHER mentor...yep....SAME THING.

So this morning me quitting is what you got.

I'll tell the story someday.

Trust me, you won't believe it.

I got taken for a ride, that's for sure, but am so grateful I was able to cut my losses.

I'll start looking again next week, but right now I am home, drinking coffee, licking my wounds (and my pride), and resetting everything.

This Dear Reader is why you want to save your effing money.

You want options like this for yourself because trust me it is so nice to be able to say 'you know what? this isn't working out, thank you anyway' and to go after what you will be proud of and happy to be doing every day you wake up.

February Balance Sheet: Up By $16,694

2010-03-16T19:37:00.000-07:00

Oh wow what an amazing month!

Very fun and so exciting.

We are very very close to a very very exciting milestone; should hit it in a couple of weeks (with the next pay period)!

Also sent taxes in and should see a nice little refund this year, since we also have HSA and more IRA contributions this year (though this is last year for deductibility or Roth IRA, so sad! But in a good way!).

Overall? Feeling very fabulous about life.

There is nothing that comes close to being able to feel like your finances are in a row, you are reaching your goals, and that you have options.

And why would I be so 'big' right now on options?

Well I'll tell you more about that tomorrow.

Clarisonic: You Mean This Really Works?

2010-03-13T21:27:00.001-08:00

When I got a microdermabrasion last summer, the aesthetician, in part of the service, used the Clarisonic on my skin.

I was given a spiel about how, because of how it cleans, pores appear reduced, wrinkles minimized, the skin in better shape.

At a price of $150 for the Mia version (smaller version), I was in no rush to buy one.

But then I got my Mom's Christmas list and listed was 'facials' so I thought, well, why not?

So I bought her a Mia for Christmas.

A couple of weeks afterwards, I called her, and she was gushing about it; how soft it left her skin, how clean her skin got, and how it minimized wrinkles and pores.

I went to visit her this last week and one of the first things I noticed was, Dang, yeah, her skin is better looking!

I was quite surprised.

It really works!

So I bought one while down there (I was in Phoenix).

And whaddya know, right out of the gate, my skin is a nicer texture, better tone, it really works!

I love it when I buy something and it does what it promises to do.

The New Normal: Will We Adjust?

2010-03-11T18:27:00.001-08:00

OK I get it, lots of people out of work, lots of people underemployed, lots of people in debt.

So I don't want this to come across as ungrateful for having a job, because I'd like to think I am.

As well as grateful that we are in no debt and everything is humming along just fine financially.

But, really, when in the world am I supposed to live my life?

Going back to work full time after 4 years of not working is not easy at all.

I keep remembering all the things that used to get done during the day, that aren't getting done anymore, or are getting crammed into weekday evenings, and we find ourselves totally exhausted by the end of the day.

It's been 3 weeks and yes I am so excited about my new job and excited about my new career.

But when does life happen?

We have to have part of our sewer line replaced this Spring; how do get that done when I have only 2 weeks vacation and can't work from home (I can do everything I do at the office here at home, thanks to the type of job this is, and remote connectivity, but this industry, or at least my employer, does not look on that too keenly).

Bear is being a great sport in adjusting and taking on some of the home responsibilities, but even then, it's just crazy when both people work, and that's just all there is to it.

How Hiring A Gardener Saved Our Lives

2010-03-04T09:05:00.001-08:00

Ok, maybe just save our Saturdays.

I knew that once I passed the CFP Board exam, I'd have to go back to work in order to get the hours. It would also be a career change for me from my prior career, so we knew there'd be lots of adjustments to our home life.

"Once I get a job, the first thing we do is hire a gardener", I said to Bear.

He very enthusiastically agreed.

When I used to work full time in my prior career, we were constantly running crazy on Saturdays.

We were doing everything ourselves and it just wasn't much fun.

We did have different goals then, and a much different balance sheet.

But, having now hit our retirement savings goals hard these last couple of years (maxing out IRAs, maxing out 401(k)), plus non-retirement savings, well dangit why not take some of the load off?

And as you know, I was offered a job (that I wanted) the week after I found out I passed.

We have an old home, which means we have lots of mature trees, shrubs, terraces, blahblahblah. Lots of green growing things to nurture and take care of.

I enjoy it when I have the time (such as these years being unplugged), but let's face it: It's much nicer to wake up Saturday morning looking at just a few things that might need to get done (laundry, bathrooms) than a yard gone nuts.

Also, a gardener is a pretty low maintenance type of person to hire.

No keys to give them, no furniture that'll get banged from vacuum cleaners, no stuff broken while getting cleaned.....no loss of privacy.

So starting next week they come every other week and give the yard some lovin' and prunin'.

It'll cost between $300 - $400 a month, and it's definitely our one 'service' indulgence.

We trust this gardener because they have worked on our rental property for the last few years and have done a pretty good job.

So here is hoping to better balance in outsourcing this responsibility to someone else.

Buying Exactly What He Wants And Not Apologizing To Anyone About It

2010-02-27T17:54:00.000-08:00

"My Paraboots are dated; I am giving them away" so said Bear.

"oh...?" said I.

"Yes, and I am going to buy some new black dress shoes and I am going to buy exactly what I want" so said Bear.

I was quite amused by this, as Bear usually has quite good taste (as in expensive prima donna!) and would not ever ever ever set foot in Nordstrom Rack (unlike yours truly) or head for the discount rack at BR before anything else.

But that is fine, I told myself. Bear has bought Cole Haan, Allen Edmonds, and Fluevogs before...so should be ok.

Oh nononono!

We went to Nordstrom and Bear was first happy with some Cole Haans.

He was getting ready to give them to salesperson to try them on.

"This brand are the shoes K (my new boss) wears" says Finance Girl.

Oops.

Bear immediately liked.

As in he grabbed some black ones, which I must admit, are very very nice.

"I like these" Bear said.

"ummmmm...Bear....these are.....$450."

"SO?!?!?" as in don't test me woman!!!

"I'll just take it out of my Bear Fund" he said, quite proud of himself.

"I could be buying another pair of Pradas!" he said.

"You got those on sale at Neiman Marcus Last Call!" said yours truly.

"Doesn't count!" but of course, this was all for naught.

So, yes, he tried them on.

And yes, they were quite pretty and nice and look very sharp and all on him.

And so he did buy them and I guess he showed me!

Hopefully he will have them as long as his Paraboots, but dang that is a big hit all at once, after all the other things we have taken care of this month.

Yeah yeah yeah....count my blessings.

A big one being....I got my first paycheck in my new bright shiney career and job as a financial planner yesterday!!

THAT was a high, let me tell you.

Went Back To Work and Catching My Breath

2010-02-21T10:16:00.001-08:00

I started my new job and new everything this week.

I am beyond excited!

But very exhausted and trying to adapt.

It's all good and I am so thrilled I get to finally be a fee-only financial planner, and that it all fell into place so fast.

I went from finding out I passed the November 2009 CFP Board exam the day after MLK Day to networking the following week and getting a job offer to more informationals and 2 more verbal offers to then accepting that first offer.

Whew!

I realize I am very fortunate to not have to sell financial products; that I am fortunate to actually be doing financial planning.

But I'd really like to be able to sleep through the night now; I have been waking up in the middle of the night every night for the last month!

Good problem to have and I am sure it'll all settle down soon.

I feel very super blessed to have been able to hop off my prior career, to take a breather, and then to pursue my passion.

And even moreso to have everything fall into place in the last month regarding that passion.

I feel I am in a very rare place in that I get to do what I love for a living!

Dear Reader, I Accepted The Job Offer

2010-02-10T09:07:00.001-08:00

There was a little bit of final negotiation, but I got what I wanted.

So exciting!

I start next week!

I will be working as a fee only planner for an independent financial planning firm.

These jobs are very rare to come by, and I am so happy how this all came together.

However, I do have an informational today and Friday (both already scheduled; they were happening concurrently to this job opportunity).

It'll be interesting having informationals when I already accepted a job offer!

I only found out I passed the Nov 09 CFP Board exam, what, 3 weeks ago?

Good thing too, because for the March exam they are requiring the 2010 tax tables and 2010 changes to tax code!

Am I Willing To Walk Away If I Don't Get What I Want?

2010-02-08T22:16:00.000-08:00

I go in tomorrow for a final round of something I am pursuing.

I have come to terms with walking away if I don't get what I want.

I feel pretty confident that I don't have to settle for something just because I am new to the industry, so there it is.

Who knows, I may be pleasantly surprised tomorrow, but I am going to go in willing to walk away.

Yeah, I Should Have Given You The Money Back, But You Pissed Me Off

2010-02-08T09:41:00.001-08:00

So we were in line with everybody else at 2:30 at the grocery store.

Since when have Seattleites been so into watching the Super Bowl?

I didn't know many even did, but the store was packed.

So Bear and I were mulling over what to bring.

I said "hey how about something healthy, you know, there's probably going to be lots of the tasty bad stuff...fruit medley?"

Bear looked at me like I was insane, thought for a minute, and said "Pie!!"

"Yeah, great idea!" So off we go to look at the tasty pies, which Met Market is really good at making.

Picked one up, got in line.

Got to cashier and I said "Wow, you all are busy!!" Very friendly like.

Cashier says.....nothing.

"Maybe he didn't hear you" says Bear.

Did I say something wrong?

So again I say "wow this is great for you guys, huh?"

Again, nothing, but this time he DOES look at us.

Erm....ok....

I give him my $20, he gives me $17.02 back.

The pie was $17.99.

I don't tell him.

He pissed me off, so that's what you get for treating me like that.

Big Ol' Freight Train Comin' Your Way: Taxes Going Up

2010-02-07T10:49:00.001-08:00

I started our income tax work for 2009 tax year yesterday. Since I keep track of everything in one folder throughout the year, it's a somewhat organized process.

2009 Tax Year is the last one that will be fun for us for awhile.

Yes, I really did say FUN, because yes I do think it's FUN when you plan out your financial life and are able, as a byproduct, to take advantage of tax credits and deductions that are a result of decisions made from the plan.

SO!

2 things going against us:

I am going to be bringing in income again soon, catapulting us to another tax bracket and into an overall AGI that limits, well, almost everything that can be deducted.

Then also the dividend, capital gains, and income tax rates ALL GO UP effective 2011.

They expire then, and that means we all start paying more taxes almost every which way we look.

I'm not getting political about it, I'm just stating the fact.

So, 2009 Tax Year is likely the last one with a refund coming our way.

Yeah, I know, nice problem to have when I step back and look at the bigger picture.

You Don't Get What You Don't Ask For

2010-02-04T08:10:00.000-08:00

...and you don't get what you ask for if you are apologetic about wanting it.

I really need to focus on this for later today.

It's all good, but I have to stay calm and just not be nervous.

I am confident in what I am asking for and that it isn't unrealistic and that I am worth it.

Now could someone please tell me how to convince the butterflies in my stomach of that?

Just Paid Grover (Our New LR2) Off

2010-02-03T08:24:00.000-08:00

Oh that feels good.

Just paid off Grover Baby Rover!

We bought him brand new end of June, 1/2 cash 1/2 3.99% loan (to manage cash flow) and I just did the online transfer for the rest.

Now we redirect that 6 month of $453 a month to our IRAs, maxing out our IRAs by putting $1,000 a month ($500 a person).

We started the $1,000 a month last month (it was a 2010 goal to max out IRAs; we already max out 401k).

We also were able to still have a nice addition to the non-retirement accounts from the bonuses even after paying off Grover.

This is a really, really, really good week.

Stay Calm And Don't Rush Into Anything

2010-02-01T09:37:00.000-08:00

I have a friend who is looking to be an attorney helping high net worth clients with tax issues.

She is crazy super sharp, and we find ourselves in the same process right now: Looking for a job.

It's been fun watching each other meet certain milestones, and on Friday a big one happened for me.

I am trying really hard to stay calm (don't want to come across as overly eager or something), to not make any premature decisions, and to really make sure I don't EFF anything up!!

She is sort of in the same spot I am, and we are trying to just make sure we know what we are doing, that we have all the information we need, and will be making the right decisions.

I look forward to having dinner with her when we both have reached this last milestone!!

(This is all vague, sorry, but I don't want to mess anything up!!)

Best Day EVER Today!!

2010-01-29T19:42:00.000-08:00

Um....can't say more yet, but WOW!!!!

Can't. Believe It.

In awe of this day.

Something very very good happened, and hopefully can say more soon!!!

Don't Lose Heart, You Will Find Your Place

2010-01-28T10:12:00.001-08:00

Well that was fleeting.

I found out I passed, what, last Tuesday?

Yep.

And already, after only throwing myself out there for less than a week (just started calling and networking and resume writing last Thursday) I am now a little discouraged.

That is soooo stupid!

I know I am just overreacting and being silly and maudlin.

This is the part (job searching) I am good at; I can't lose sight of that!

It's funny though, one thing can go like you don't think it would have, and down the dark black tunnel you go.

Ok, time to look in the mirror and snap out of it.

How I Passed the CFP (r) Board Exam

2010-01-27T09:38:00.000-08:00

I've been waiting almost 2 years to write that. So, before I forget how I did it, I want to document it, because I am already quickly going to the next chapter (job!!, can't say more yet!!).

Here's the short answer, because some of you just want to know the bottom line:

There are no shortcuts. There are no tricks.

You aren't going to pass unless you actually dedicate yourself to this. And I don't mean just your 'downtime'. This is going to take more of you than likely anything else you have done, mentally.

So first off, you have to want it.

You want it?

OK, then here's what worked for me:

First off, even thinking about the damn thing freaked me out from Day 1. When I signed up for my first course (Risk Management) I was intimidated thinking about board exam.

So I broke it down class by class. I took each victory to heart when I got it. And those exams for each class were not easy by a long shot. None of them were a walk through the park.

But I kept going through the process and the classes (I recommend live in person classes if they are available in your area, because you make contacts with other students and network), and then I was done with the coursework.

Which meant I had to now start studying for the Real Deal.

CRAP!!!

So I started from the target date: Exam November 20-21, and worked backwards from there.

Broke it down into content areas, and found myself staring at the biggest mental project ever way back in July.

I had been considering Kaplan's review course and begun writing about that, when the fine people at California Lutheran University's MBA in Financial Planning left a comment saying, hey, sign up for our CFP (r) Pre-Prep course.

So I did and called Harry at CLU and liked what I heard so I joined.

Good thing!

They saved my bacon, because I found out about Dalton, Keir, and Ken Zahn review courses.

Up to then I was just considering Kaplan.

I went with Dalton Review because I liked the fact that they were 'high touch' meaning they'd be willing to take all my questions and respond and not get irritated by me.

Shout out to Joe Gillice, their President, who took my emails and responded with answers.

And I was not shy about asking questions while going through the review!

I started full-bore studying in September, and then kicked it into high gear by the time the weekly pre-prep started and I got the Dalton Review materials.

I told my friends and family I was in lockdown, no social commitments, I am not available. I prepped my dear sweet Bear that I was going to be committed to the exam, and so his expectation was set.

It is very important that you set people's expectations very early that until the day after the exam, you are not available, more or less.

Every single day I spent hours studying and doing questions.

By the time mid - October rolled around, I started shifting more to questions and getting myself geared to test taking.

4 weeks prior it was all questions and practicing test taking.

I was scoring really well and feeling pretty good. Until I got to one section where I started going down in flames (Income Taxes!! But guess what!!! That turned out to be my highest performing section on the exam!!! LOL!!!)

2 weeks prior I had a major Freak Out and Sharon at CLU helped talk me off the ledge and calm me down.

Which was great. I was losing my hair, not sleeping very well without a sleeping aid, and on constant alert.

I was really positive but still, pretty freaked out.

To sum it up? Top 10:

1) You have to want it
2) Set people's expectations during the process (e.g. your availability)
3) Make a schedule for every single day. Hit it and mean it.
4) Schedule 'downtime'. I would reward myself with Bear time or movie time.
5) No negative influences! Try to limit your contact with those that are not good for you. You know who they are and what I talk of.
6) Interview more than 1 review provider. See how available they are.
7) Talk to as many people as you can. Seek out other students and people who have walked this path before you.
8) This is really hard, don't underestimate what it will take.
9) Take care of yourself! Eat well, sleep, exercise, listen to your body!
10) Visualize yourself passing. You can but you have to put the time and mental focus into it.

Having passed I can tell you it's an awesome feeling and it's awesome to be able to be on the other side of it.

Take it seriously and put the effort in (you can't just read! you have to do a ton of questions!!) and you'll get that letter too saying CONGRATULATIONS!! (and yes it is all caps in the letter).

Seattle Real Estate Is In Free Fall

2010-01-26T08:51:00.000-08:00

Down 10.6% in the last 12 months.

Only Las Vegas (-24.5%), Phoenix (14.2%), Tampa (13.2%), Detroit (13%) and Miami (12.1%) are worse.

I believe it too.

The homes in our neighborhood For Sale just languish.

They sit. and sit. and sit.

There is one that finally sold. But it was depressing to watch, because it was total turnkey, on the boulevard, 2 car garage, view, blahblahblah....and it took MONTHS to sell.

I was very happy when I saw the SOLD sign, but it took a long time.

There have been several that just took the house off the market for lack of offers.

At least the market where our rental property is is holding it's own; it's lost value, sure, but nothing like here.

Oakmark Equity and Income Fund Write -Up in BW

2010-01-25T13:35:00.000-08:00

We only have 3 actively managed funds in our accounts; all 3 are in our retirement accounts.

Lazard Emerging Markets, Russell Int'l Growth (an SMA), and Oakmarke E&I (OAKBX).

I am not fond of the 1st 2.

But of Oakmark E&I I definitely am. I like the low expense ratio, the CFAs that manage it, and the exposure to bonds it gives us.

So you can imagine how happy I was to stumble across this article about how funds whose managers have their own money invested in said fund tend to do better.

Makes sense, right?

Fund managers who have their own money ponied up have more at stake than just their job and performance, they have their very own money involved.

Great!

Actually that should be a law, come to think of it.

Anyway, the other thing I really like after reading this article?

OAKBX has a 9.8% 10 year return and has outperformed 99% of it's peers!!

6 Tenants In 7 Years

2010-01-24T13:50:00.000-08:00

"I am getting really sick of this", Bear said.

"Well, me too, but we sort of signed up for this when we turned it into a rental house", says Finance Girl.

What is *this*?

It's tenant turnover.

Last Sunday our tenant gave notice. I sighed a sigh of relief, actually, because it seems like he has been more maintenance than our prior tenants (although he is a really nice guy).

So I got the USB stick with the pics and ad, posted them to Craig's List, and voila! We were on our way to finding a new tenant.

We have had super good luck renting the house out each time (with the exception of the second time; for some reason it took us a couple extra weeks and about 5 lookers).

Except for that one exception it has rented out mostly on the first or second looker.

And we haven't had to negotiate price.

But I am ready for this tenant to be there for at least a couple of years so we can catch a break.

It's not hard to post the ad, show up, and show it.

But in aggregate it's a bit of time and many details (call the utility, make sure tenant paid balance, blahblah).

The upside?

We were able to actually increase the rent by $23, thus increasing the positive cash flow to almost $250 a month!

FPA vs. NAPFA

2010-01-22T09:06:00.000-08:00

"You should join NAPFA as a student" "FPA is the membership you want as a CFP"

I've heard both while going through my CFP courses and getting ready for the Nov 09 board exam (which I passed! sorry, going to be saying that for awhile! still excited!!)

But I was laser focused just on studying and psyching myself up for the exam.

I saw joining either NAPFA or FPA as a 'cart before the horse' thing, especially since I wasn't clear on what path I'd take if I didn't pass (moot now!! Because I passed!! Yes, obnoxious for a little while!!)

Yesterday I looked at the NAPFA site a little bit more.

This morning I looked at the FPA site a little bit more.

Then I called them.

The salient benefit to NAPFA is they are strictly fee-only.

But they have members that are not CFPs. And their network doesn't look as extensive (which makes sense, there aren't nearly as many planners who are fee-only as there are who are AUM (assets under management) or commission-based).

But it sort of ends there. Yes, yes....I want to be fee-only.

But I also want to be in the network that is best going to connect me with other CFPs and with customers looking for a CFP.

Which leans me to FPA, since they are exclusively CFPs. But not exclusively fee-only.

I think I'll start with FPA.

I Passed My CFP Board Exam, Now What?

2010-01-21T09:23:00.000-08:00

Life has bifurcated into pre-letter and post-letter.

Pre-letter consisted of 2, maybe 3 paths I would have taken if I didn't pass.

However, that's all moot, because I passed!

And now am looking at just one path: Getting a gig to start getting the hours.

Yesterday was spent in a very exhausted daze, as I didn't exactly sleep very well the night before because I was so excited!! I sort of stumbled through yesterday in a caffeine-induced facade of awakeness.

But now, all good!

So back to that one path: I have had several people tell me to 'get in touch' with them after I took the exam.

So that's what I did this morning; putting out the requests for informationals.

I know the job market is really horrid out there and soul defeating, but I feel pretty confident that I will find a good group of people I can work with to get the hourse I need to to get certified (I don't get to call myself a CFP until I get the 6,000 hours/3 years full time).

I actually really enjoy networking and interviewing. I have been told many times that I interview well. Also, since part of my work experience includes corporate sales, I have no problem initiating contact with people....no heebeejeebees there at all.

What's the worst that'll happen, someone will tell me no? Or won't return my email or phone call?

Big deal. Their loss not mine.

I hope to be a fee-only planner and not have to work in sales selling financial products, although I am more than comfortable going after clients for financial planning itself.

The other thing I have to do is order my transcript and send it to the CFP Board to show, yes, I do have a bachelor's degree (you can't be a CFP without at least a bachelor's degree).

So, in many ways, today is a new day.

Such a great day!!!!!

I Passed The November 2009 CFP Board Exams!!

2010-01-19T12:43:00.001-08:00

Just opened it!!! I PASSED!!!!!!!

Holding Pattern

2010-01-18T09:03:00.001-08:00

Thank you Kevin Keller for leaving the comment letting me know that the results got mailed on Friday.

It's nice to know that and well I can't have much longer to go, right?

Against my better judgement, I am 100% nervous Nelly about the exam results now. I thought it'd be better with 2 days of no mail and no CFP Board updates (closed for MLK Day).

But it's not....I find my mind wandering to it.

Doesn't help that when I emailed M, whose gone through this journey with me (we met in Risk Management class March'07), 'just knows' I passed....ugh!!

I'd like to say I am calm and patient and sanguine about this...but I'm not.

I just want to know so I can move on.