Category Archives: Money Matters

Triathlon IS a Country Club Sport

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What form does your procrastinating take? This morning I delayed grading papers by skimming the forum on Slowtwitch.com, where tens of thousands of triathletes gather from around the U.S. and world. Before you report me to my boss, whomever that is, I only read one thread about race fees getting totally out of control.

The discussion got me so fired up that I almost registered on Slowtwitch (I lurk) so I could post, but chose not to tip my toes in that water. So this will probably interest two or three of my regular readers.

The original poster said the NY Olympic Triathlon has increased it fees 40% the last two years and is now $245. He said he feared triathlon may become a country club sport. About two in ten posters sympathized, eight in ten attacked him for not blindly supporting free market capitalism. I didn’t know Milton Friedman has such a tight grip on the triathlon community, but it makes sense since triathletes tend to own the means of production. (My right wing friends have informed me that we have a Marxist president so I’m going to go along to get along and start dropping Marxist terminology throughout my written and oral communication.) The majority’s thesis is that race directors should charge whatever they can get and that a race is not over priced until it’s not sold out.

That’s all well and good, but they are slow on the up-take and have a major blind spot that no one on Slowtwitch has or will point out. Triathlon ALREADY is a country club sport. Take an enthusiast golfer, tennis player, and triathlete and compare annual expenses and I guarantee you the triathlete would be right in the mix. And look at the demographics of each group and again the triathletes will be every bit as homogenous.

Most importantly, they ignore the fact that outrageous entry fees weaken the competitive pool. If they were serious athletes who wanted to throw down with the best (read economically and culturally diverse) athletes, they’d temper their love of free markets and work to make their sport more accessible. As it is they feel much better about themselves placing second or third among other rich white guys with six figure salaries. Good thing I didn’t register because that line would unleash a tidal wave on Slowtwitch.

If you can’t tell, this topic gets me fired up, but I really should get back to the papers.

Carry on comrades.

Personal Responsibility

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Why do we routinely blame others for problems we’re responsible for?

For example, I often think if everyone drove like me, not too fast, in control, no cell phone, maximizing distance, there would be no accidents and road rage would be something social scientists once studied. One problem, my self-congratulatory description of my driving isn’t objective. Truth be told, sometimes I am part of the “driving stupid” problem. My car has a large blind spot and I have to swing forwards and backwards in my seat to make sure the coast is clear whenever merging onto the freeway or changing lanes. I do that without problem about 499 times out of 500. All it takes is one time though to understandably anger another driver.

Worse than that, I know big semis inch forward from one freeway exchange I take home to another so it’s easy to swing left, pass 40-50 cars and merge back into the correct lane in the 50 yards of cushion that the semis usually create. Usually. One night a few weeks ago the cushion was half it’s normal size and I made an idiotic snap decision to shoot through it anyways. My car was probably 15 yards from the truck’s front bumper, but I was going too fast and I admit, if our positions had been reversed, I would have been livid. To get on the second highway I had to loop back under the slow moving truck. I looked up to see someone in the passenger’s seat waving at me with just one finger. Totally deserved.

I’m not special, I’m complicit.

Fast forward to Walmart’s recent decision to sell the top ten most highly anticipated hard backs (Steven King’s among them, retail $35) for $10. Last week Amazon decided to match it so Walmart lowered their price to $9 and said they’d go “as low as necessary”. Amazon went to $9 and now Walmart is sitting at $8.99. Some people complain about big box stores and everyone waxes nostalgic about small independent retailers, but they’re rapidly disappearing because people focus exclusively on finding the lowest prices for the goods they purchase without giving much if any thought to the ripple effect.

We’ve created the monster that is Walmart and we’re upset it’s destroying small independent businesses. Does that make any sense? What most amazed me about last week’s story is the unabashed bluntness of the company. “We’ll go as low as necessary to become the one stop place for book purchases.” May as well have added, “Your local independent book store be damned.”

But Walmart is not inherently evil. Walmart’s customers focus exclusively on the lowest prices, ignorning the negative impact on small businesses in the immediate area. Take me for instance. Recently I saved about $20-$25 on a Timex watch I bought at the behemoth. By doing so I added a tiny drop into the gigantic bucket that is Walmart sales, a bucket they will now use to extinguish the Fireside Bookstore in downtown Olympia where my friend works. If the Fireside Bookstore closes, Olympia will be worse off and I’ll only have myself to blame.

Or take outsourcing and all the empty rhetoric around keeping jobs in the U.S. A few years ago, before the housing correction, a study was done of people taking out home equity loans. They were given two choices: 1) have it processed abroad and receive the money in two to three days or 2) have it processed domestically and receive the money in five to six days. I don’t recall why the foreign companies were twice as fast, but something like 85% of the people chose the quicker/outsourced option. I’m guessing 100% of that 85% nod approvingly whenever they hear a politician bemoan outsourcing.

Finally, there’s the Fort Collins, Colarado “balloon boy” bullshit. We criticize the media, but don’t recognize we are the media in the sense that our collective viewing habits shape the “news”. How can we watch CNN’s balloon boy coverage, talk to friends about it, buy People magazine and read about it, and then criticize the media for covering it? I didn’t watch any of the television coverage, and only skimmed the headlines on-line, but now that I’m blogging about it, I suppose I’m complicit.

More Design Genius

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Life-changing leak proofness

Leak-proof goodness

Genius genius

Genius genius

Eclectic, not girly

Eclectic, not girly

Behold more 21st century genius design work. There should be a Nobel Prize for Consumer Genius for the Camelback employees (no way an individual could have come up with something this brilliant by him/herself unless it was Obama) that came up with the new leak proof top. To borrow from Chinese history, this bottle top represents a great leap forward. Only bummer of course is you can’t use the fancy new tops on your old bottles. I purposely toss these new and improved bottles in my gym bag upside down just to revel in the fact that they’re leakproof. A few years ago I discovered shortly before arriving at the base of Mount Saint Helen’s that a water bottle had leaked all over my cycling clothing. I held my shorts and jersey out the window for the last few miles in a vain effort to blow dry them. Lovely starting out soggy. Now, I laugh at the memory thanks to the Camelback geniuses (0r Obama).

Of course you’re used to Apple’s genius by now, but how cool is it that they have algorithms that create excellent playlists all by themselves. My personal mobile Pandora. The second pic of my nano is probably too small to pick up on the featured artists–Sara McLachlan, Maroon 5, and Natalie Merchant. I don’t understand why my sister says I like girly music? :) My fourth genius playlist is much more macho sis, lots of Led Zep.

Name Your Price

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I’m way too frugal for my own good, but there are a few products I’m willing to pay whatever the seller asks. Take Costco’s California Pistachios for instance. They continue to climb in price but I don’t care because I’m addicted. Just take my wallet and give me back whatever you think is fair. The second is the much rumored Apple Tablet. Hurry up and bring it to market Steve. Here’s my credit card, ring it up for whatever you think is fair.

From MacRumors.com

Foxconn to Manufacture Tablet for Q1 2010 Launch?

Wednesday October 07, 2009 09:18 AM EST
Written by Eric Slivka

Mac Rumors

DigiTimes reports that Foxconn Electronics has been named as Apple’s manufacturing partner for its much-anticipated tablet and that the device is expected to launch in the first quarter of 2010.The device is expected to hit the market in the first quarter of 2010, with initial shipments from Foxconn being in the 300,000-400,000 range, the sources said.

The device will have a 10.6-inch display, and the sources speculated that perhaps Foxconn could secure panels from its subsidiary Innolux Display.

While a number of rumors have previously pegged the display on Apple’s device in the 7-to-10 inch range, this report of a possibly slightly larger display than previously thought nearly matches recent claims of a 10.7″ screen. Speculation that Innolux may provide screens for the new device conflicts, however, with earlier reports that Wintek had already been tabbed as the display provider.

Finally, the report notes that the device will place an emphasis on e-Book functionality, echoing claims that Apple is aiming to redefine print media with the device. Apple’s extended-life battery technology such as that found in recent MacBook Pro revisions, Internet connectivity, and Apple’s typical attention to user interface detail are all expected to be featured in the new device.

Hyundai’s Military Discount

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I was on-line shopping for a Hyundai recently when I discovered they offer a $500 discount to members of the military.

Is it possible to question that practice without being labeled ungrateful and un-American? I assume it’s meant as a special “thank you” for those people whose service enables us to exercise civil liberties and enjoy our way of life.

But I’ve always felt that argument was incomplete not just because it exonerates the military from its occasional abuses of power, but because it slights the admittedly more subtle, but equally important contributions some civilian members of society make to our security.

More specifically, why privilege members of the military over my friend that’s taught in a South Central Los Angeles middle school for twenty four years, or my friend that runs a homeless shelter in L.A., or my friend that served as a Peace Corp volunteer for three years in West Africa?

Granted, they haven’t risked their lives in the exact same way, but haven’t they contributed to our security in tangible, powerful, and in the end, equally meaningful ways?

Hyundai is receiving increasing acclaim as the “most improved” car maker. I’m going to wait for them to introduce the educators’, non-profit NGO, and Peace Corp $500 discount before I jump on their bandwagon.

Simplicity

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IMG_0103

Behold a favorite possession. Design genius. Simple, unbreakable, maintenance free. Reminds me of a genius move mi esposa made several years ago when she landscaped with large bolders. Beautiful, simple, unbreakable, maintenance free. So far, I haven’t had to fertilize or mow them.

I know some people enjoy spending their time fixing things. I’m more handsome than handy, so I usually don’t enjoy fixing things. I’d like to spend less time maintaining and fixing things—cars, bikes, the lawn, the house, although truth in advertising, mi esposa takes the lead in maintaining the house. Given my orientation, a condo would make more sense than a house, but the abrakadabradoodle probably wouldn’t like that so it’s a non-starter.

If you’re like me and you’d like to spend less time maintaining and fixing things, there’s two obvious courses of action.

First, declutter. Sell or give things away that aren’t used regularly and then have the discipline not to repurchase substitutes. Own less and buy less.

Second, seek out products that require less maintenance and fewer repairs even if they cost more and you have to delay purchases.

Other ideas or product recommendations?

Damn, I kid you not, my wireless mouse just broke.

What, if anything, will we learn from the recession?

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I’m not a regular viewer (a necessary qualifier to retain some semblance of masculinity), but I caught an episode of Oprah one night last week. The theme, the recession’s negative impact on people.

I’ll introduce you to a few of the guests, describe what I think the producers wanted me to conclude from the segment, and explain my actual reaction.

Guest one, a 24 year-old woman, had lost her job with an interior decorating company. Not only had she done three internships in college, she had “done everything right” and still ended up standing in an unemployment line. I was supposed to conclude that’s wrong and sad. Sure it’s sad whenever anyone who really wants to work can’t find a job, but even sadder was the subtext: college graduates are entitled to good jobs.

Robert Reich, whose contributions were underwhelming, was the talking head putting the individual stories into the broader context of a changing economy. With respect to guest one, even I might have done a better job framing her experience.

Here’s the takeaway for her, the other student in the news lately who has sued her college because she can’t find a job, and anyone who thinks a college degree entitles them to a good job. A new day has dawned. Sizeable student loans and a college diploma guarantee little. Increasingly, businesses are more productive with fewer people. Profit margins are shrinking; consequently, the race to eliminate jobs is accelerating. You’re competing with more people for fewer jobs, not just your college classmates, but elderly people who are finding they have to continue working, and highly motivated, ambitious peers from across the globe.  Good grades and the perceived prestige of your institution mean little absent the following: a genuine curiosity; a strong work ethic; well developed communication, critical thinking, team, and problem solving skills; cross cultural knowledge and skills; integrity, and resilience.

Guest two was a couple that had been living large. The X had a successful hair salon and the Y was a successful realtor before both lost their jobs. As their financial situation worsened, their well-to-do friends quit associating with them. It was clear by Oprah’s sadness, that I was supposed to feel similarly, but I didn’t. Oprah kept asking superficial questions like, “So they don’t invite you to their dinner parties anymore?” To which unemployed couple sadly replied, “No they don’t.” Audience members shook their heads in dismay.

I did my best to set aside the obvious irony of one of the wealthier people in the world exploring the sadness of downward mobility, and wondered why and the hell didn’t she ask them why they pursued friendships based upon superficial signs of material wealth in the first place. This was a sad segment, but not at all in the way the producers intended. What was most sad was the couple’s utter lack of self-awareness. They never said what might have made it a socially redeeming case study. “The recession has been an important wake up call. It opened our eyes to the limits of consumerism and materialism, neither of which form a meaningful foundation for friendship.”

In fairness, one of the other segments did convey a “silver lining, now we know what’s most important” moral, but I couldn’t help but wonder how long the guest’s commitment to frugality and meaningful relationships will continue once the recession ends.

Guest three was a former Denver newscaster who was making 250k at the time of his dismissal. He had taken a 30k/year job working as a vet’s assistance because he had always had a genuine love of animals so his resilience was noteworthy. But again, I couldn’t give the producers the “my how sad” reaction they seemingly wanted because he acknowledged making a whole lot of money for the last 10 years of his 30 year career. Oprah and RR seemingly had it on cruise control and couldn’t bring themselves to ask him and his wife the obvious question, “Why didn’t you live more simply and save more of it?”

Have I lost my mind, criticizing Harpo Productions? I will now be entering the witness protection program.

Beer Summit

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I know, I know, I know, most over-reported story of the year. But there’s one element of the story still deserving of attention. Allegedly U.S. Brewery Distributor execs were very upset that the  beers of choice were produced by foreign owned companies. One was heard asking, “What does this phrase ‘globalization’ of which you speak mean?”

Now, picture these execs sitting in a country club restaurant after 18 holes of golf. I’m going to go be presumptuous and guess that as well-to-do business executives they’re pro free market, pro capitalism, pro Milton Friedman. But when the invisible hand slaps them in the face and foreign competitors erode their market share, they whine and seemingly seek privileged status. 

Why is it that U.S. business execs sing the praises of free markets until they end up getting their asses handed to them by foreign competitors?

The Great Financial Disconnect

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The notion of financial success is slippery because it’s subjective. For the sake of discussion, let’s define it as  living debt free and having some sort of savings for future goals. The average American reportedly has $9,300 of credit card debt so we’re setting the bar relatively high.

How might one live debt free and accumulate savings? 

By living according to a relatively straightforward equation. Consistently earn more than you spend. The hard part for people is doing that three, four weeks a month; ten, eleven, twelve months a year; eight, nine, ten years a decade. 

Let’s think about the equation more deeply. Earning is almost always thought of as one’s salary, and of course, that’s an important part of it. However, earning can take other forms such as investing one’s savings wisely which generates investment income. Obviously, the more one saves, the more they generate in investment income. If I have $1,000 saved and earn 5% and you have $1m saved and earn 5%, you earn $49,950 more than me a year. For the vast majority of people, investment income is a small fraction of their annual salary-based earnings.

On the surface, spending is a straightforward concept, but there’s several  types including relatively fixed recurring expenses (insurance premiums, mortgage payments, property tax payments), relatively fluctuating recurring expenses (utility bills, groceries/restaurants, clothing), discretionary expenses (entertainment, travel), and unanticipated expenses (root canal, counseling).

This most simple of conceptual frameworks gives rise to two fundamental questions. How does one increase their earnings and how does one reduce their expenses?

But here’s the amazing thing, the personal finance conversation in this country focuses almost exclusively on an altogether different question–what’s the best way to invest? 

This exasperating disconnect isn’t unique to the personal finance industry. Education reformers focus on a whole host of things–technological bells and whistles, standards, standardized tests–that have little positive effect on the teacher-student relationship.

So, let’s return to the example of being debt free with $1,000 of savings. Imagine we’ve assembled a focus group of fee-based certified financial planners to advise me. I suspect, even though they’re fee based, at least nine out of ten would spend all of their limited time debating the relative merit of different investment tools including indexed mutual funds, ETFs (exchange traded funds), TIPS (treasury inflation-protected securities), gold, bonds, whatever. 

How to invest savings is a legit question, but at best the third most important. 

For the life of me, I can’t figure out why even fee-based planners focus almost exclusively on investment strategies when what people really need help with is how to increase earnings and reduce expenses.

20-200-2 Much?

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Is getting 20 years and  200,000 miles out of our 1993 Toyota Camry Wagon 2 much to ask?

I ask because at 16 and 163 I’m starting to feel like a surfer at the end of a long ride pressing up and down on the board with my feet while trying to get the most out of the 12 inches of white water.

I could write a “Marley and Me” like book about the car and me, but oddly we never named it. One admittedly short chapter would be about the time I drove into the garage and THEN realized the bikes were on the roof. 

The picture below isn’t the actual car, but it looks an awful lot like it. I had bike racks drilled directly onto the roof early on and the wife must have been mad at me a few years ago when she dented in the right front bumper. 

Tinting the windows was the best decision ever. Let’s just say the ladies have paid the wagon and me A LOT more attention ever since. 

Mechanically it’s pretty solid, and the tires are relatively new, but the driver’s door handle snapped off a while back so now I have to grab the remaining two inches with two fingers. There are annoying electrical problems too. The interior dome light doesn’t work even after replacing the bulb so I keep a flashlight handy. And after replacing the turn signal bulbs, the instrument panel lights shuts off after every use of a turn signal (all fuses are fine). Blondie and blonder found that very entertaining on the way to school last week. I wouldn’t wish the upholstery on anyone and the inside roof has a bit of residue from where water probably seeped in through the holes that were drilled for the rack.

Oh, and sometimes it won’t start until it feels like it even though the battery is relatively new (faulty safety neutral switch?).

Killer radio though and a good radio compensates for a lot of shortcomings.

Since I don’t know if the air bag will open, and gas prices have plummeted, I’ve taken it back over. I’d rather kill myself than my wife. “Here lies Dad. He took one for the fam.”

Speaking of dads, mine always got 8 years out of his American cars back in the day. I think he’d be proud that I’ve doubled him up and I like to think he’s rooting for me to stay on the bull until it completely tires.

I have to admit though, the Venza looks nice and I’ve been looking at “pre-owned” Highlander Hybrids on Craigslist. The question is, can I hold off until the London Olympics? I wouldn’t bet on it.