| ...ironically, she got her bachelor's in women studies and wants to get her masters in family and marriage counseling ;-) Here's the link to the story. |
Monday, 22 September 2008
Girl Selling Her Virginity to Pay for College...
Posted on 11:34 by Unknown
Lehman, Money Market Funds, and the Government Guarantee Controversy
Posted on 08:36 by Unknown
Before this week, most people probably thought of money market funds as ultra-safe places to park cash.
While money market mutual funds aren't FDIC insured like money market accounts at banks, they can only invest in "safe", short-term commercial paper with an average maturity of 90 days.
The funds work to keep their value per share at a constant $1. "Breaking the buck", or having a loss, was something avoided at all costs. If, on occasion, a paper dropped slightly in value, the fund's holding company would buy it from its fund at par.
In return for this safety of principle, investors willingly accepted yields lower than stocks or bonds.
Now, in the wake of Lehman's collapse, one of the original pioneers of money market funds, Reserve Management, wouldn't (or couldn't) buy back its Primary Fund's investment in Lehman paper.
Instead, the Primary Fund wrote off $785 million in Lehman debt, and its value per share dropped to 97 cents.
It became the first money market fund to "break the buck" in 14 years, and shareholders withdrew 60% of the assets in 2 days. The fund since delayed investor redemptions by 7 days.
Even though money markets remain one of he safest investments, and most of the money market fund companies (such as Vanguard, Fidelity, Merrill Lynch, or Schwab) have many times the resources of Reserve Management, investors started to become worried about money market funds.
On Thursday, Putnam Investments closed its $12 billion Prime Money Market Fund after its institutional clients pulled their money out.
On Friday, to calm the markets, the Treasury took the unusual step of temporarily guaranteeing money market funds against losses up to $50 billion.
Needless to say, the American Bankers Association is very unhappy. They saw their FDIC coverage as a competitive advantage for their money market accounts vs. money market funds.
While money market mutual funds aren't FDIC insured like money market accounts at banks, they can only invest in "safe", short-term commercial paper with an average maturity of 90 days.
The funds work to keep their value per share at a constant $1. "Breaking the buck", or having a loss, was something avoided at all costs. If, on occasion, a paper dropped slightly in value, the fund's holding company would buy it from its fund at par.
In return for this safety of principle, investors willingly accepted yields lower than stocks or bonds.
Now, in the wake of Lehman's collapse, one of the original pioneers of money market funds, Reserve Management, wouldn't (or couldn't) buy back its Primary Fund's investment in Lehman paper.
Instead, the Primary Fund wrote off $785 million in Lehman debt, and its value per share dropped to 97 cents.
It became the first money market fund to "break the buck" in 14 years, and shareholders withdrew 60% of the assets in 2 days. The fund since delayed investor redemptions by 7 days.
Even though money markets remain one of he safest investments, and most of the money market fund companies (such as Vanguard, Fidelity, Merrill Lynch, or Schwab) have many times the resources of Reserve Management, investors started to become worried about money market funds.
On Thursday, Putnam Investments closed its $12 billion Prime Money Market Fund after its institutional clients pulled their money out.
On Friday, to calm the markets, the Treasury took the unusual step of temporarily guaranteeing money market funds against losses up to $50 billion.
Needless to say, the American Bankers Association is very unhappy. They saw their FDIC coverage as a competitive advantage for their money market accounts vs. money market funds.
Business Lesson: How NBC's "The Biggest Loser" Reverse-Engineering a Weight-Loss Brand
Posted on 07:51 by Unknown
The Chicago Tribune business section recently had an article about a 4 year old reality show on NBC called "The Biggest Loser" - in which overweight people compete to see who can lose the most weight.
Reality shows tend to use product placement on their shows to make money. In the case of "The Biggest Loser", however, the producers turned down placement offers from the major weight loss brands - such as Weight Watchers, Jenny Craig, etc.
Instead, they are now starting to advertise their own products.
It turns out that, from the beginning, the show was planned to not just rely on a television advertising model. Instead, they had a new business model in mind - to build a major weight loss brand in reverse.
The traditional brands - like Jenny Craig and Weight Watchers - built up their brands, products, centers, etc. first, and then advertised on television.
The "Biggest Loser" will do the opposite. It started off as a TV show and they are now trying to expand into a brand with its own products.
Consumers have already spent $50 million on the current line of "Biggest Loser" products - fitness videos, cookbooks, a weight-loss club, and products in NBC's online store (scales, socks, etc).
Next to roll out will be branded exercise equipment, kitchen stuff, and protein powder. Future possibilities include meals delivered to your doorstep, yoga mats, exercise balls, etc.
Reality shows tend to use product placement on their shows to make money. In the case of "The Biggest Loser", however, the producers turned down placement offers from the major weight loss brands - such as Weight Watchers, Jenny Craig, etc.
Instead, they are now starting to advertise their own products.
It turns out that, from the beginning, the show was planned to not just rely on a television advertising model. Instead, they had a new business model in mind - to build a major weight loss brand in reverse.
The traditional brands - like Jenny Craig and Weight Watchers - built up their brands, products, centers, etc. first, and then advertised on television.
The "Biggest Loser" will do the opposite. It started off as a TV show and they are now trying to expand into a brand with its own products.
Consumers have already spent $50 million on the current line of "Biggest Loser" products - fitness videos, cookbooks, a weight-loss club, and products in NBC's online store (scales, socks, etc).
Next to roll out will be branded exercise equipment, kitchen stuff, and protein powder. Future possibilities include meals delivered to your doorstep, yoga mats, exercise balls, etc.
Friday, 19 September 2008
Lehman, Merril Lynch, and AIG Lead to The "Unbubble"
Posted on 08:58 by Unknown
I recently heard a description of the current financial situation as an "unbubble".
I think this is appropriate because it does seem that, like in a bubble, emotion is starting to get ahead of fundamentals.
They say that there are 2 main emotions in trading / investing: fear and greed.
Well, in a bubble, greed wins out over fundamentals, and the markets eventually come back to earth.
In this "unbubble", it looks like fear is starting to win out over fundamentals. For example, the remaining 2 independent investment banks (Morgan Stanley and Goldman Sachs) are relatively healthy, but are seeing their stock punished, and are being "pushed" into the idea of merging with commercial banks.
I think it is still wise to steer clear of most financial stocks, but this is probably a good time to start looking to buy good stocks in other sectors of the economy.
As they say, the big money is made by buying when there is "blood in the streets".
I think this is appropriate because it does seem that, like in a bubble, emotion is starting to get ahead of fundamentals.
They say that there are 2 main emotions in trading / investing: fear and greed.
Well, in a bubble, greed wins out over fundamentals, and the markets eventually come back to earth.
In this "unbubble", it looks like fear is starting to win out over fundamentals. For example, the remaining 2 independent investment banks (Morgan Stanley and Goldman Sachs) are relatively healthy, but are seeing their stock punished, and are being "pushed" into the idea of merging with commercial banks.
I think it is still wise to steer clear of most financial stocks, but this is probably a good time to start looking to buy good stocks in other sectors of the economy.
As they say, the big money is made by buying when there is "blood in the streets".
Tuesday, 16 September 2008
Quote for the Day
Posted on 07:56 by Unknown
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Monday, 15 September 2008
Programming vs. Management
Posted on 09:11 by Unknown
| A man in a hot air balloon realized he was lost. He reduced altitude and spotted a woman below. He descended a bit more and shouted, 'Excuse me, can you help me? I promised a friend I would meet him an hour ago, but I don't know where I am.' The woman below replied, 'You're in a hot air balloon hovering approximately 30 feet above the ground. You're between 40 and 41 degrees north latitude and between 59 and 60 degrees west longitude.' 'You must be a programmer,' said the balloonist. 'I am,' replied the woman, 'How did you know?' 'Well,' answered the balloonist, 'everything you told me is technically correct, but I've no idea what to make of your information, and the fact is I'm still lost. Frankly, you've not been much help at all. If anything, you've delayed my trip.' The woman below responded, 'You must be in Management.' 'I am,' replied the balloonist, 'but how did you know?' 'Well,' said the woman, 'you don't know where you are or where you're going. You have risen to where you are due to a large quantity of hot air. You made a promise, which you've no idea how to keep, and you expect people beneath you to solve your problems. The fact is you are in exactly the same position you were in before we met, but now, somehow, it's my fault.' |
Friday, 12 September 2008
How To Become Rich
Posted on 12:11 by Unknown
In his Personal Financier blog, Dorian had a post entitled Coming To Terms with Never Getting Rich – A Look at the Pre-Requirements.
In this post, Dorian does a good job of describing the traits needed to become wealthy in business.
However, he then seems resigned that he is not strong in those areas and, therefore, will never be rich.
I commented that Dorian could surprise himself, and improve his abilities in those traits, by thinking in terms of yoga or physical stretching.
In the comment, I paraphrased from my post entitled Stretch Out of Your Comfort Zone, which is on my Tao of Simplicity blog.
In this post, Dorian does a good job of describing the traits needed to become wealthy in business.
However, he then seems resigned that he is not strong in those areas and, therefore, will never be rich.
I commented that Dorian could surprise himself, and improve his abilities in those traits, by thinking in terms of yoga or physical stretching.
In the comment, I paraphrased from my post entitled Stretch Out of Your Comfort Zone, which is on my Tao of Simplicity blog.
Thursday, 11 September 2008
Get A Free Website and "The Rich Jerk" For Internet Marketing Success
Posted on 14:39 by Unknown
If you are just starting out in internet marketing, or have dabbled in it without much success, then I think the first thing you should buy is the "Rich Jerk" eBook (electronic book).
A few years ago, after I started earning a steady $100-$200 a month online, I decided to re-invest some of my earnings in education. I chose the "Rich Jerk" book because I read a good review on it, and saw that it was only $9.95. I felt that I could justify this price.
I went to the website, read the marketing materials, and some of the stuff in the free forum, and I was laughing so hard! This "guy" is really wickedly funny and sarcastic.
I went ahead and bought the book. I also took the up-sell, which is the deluxe collection of 60 mp3's that are a companion to the book.
I loved the book and mp3's!
This eBook will provide you with a good, solid introduction to affiliate marketing, pay per click advertising and arbitrage, search engine optimization (SEO), creating your own information products, and even buying wholesale merchandise and selling it on Ebay.
You probably could find a lot of this info for free by spending hours searching through dozens of websites, but the "Rich Jerk" provides this information in a short, simple, and humorous book - for only $9.95.
Also, information on internet marketing can quickly become outdated, but the low price of the "Rich Jerk" includes lifetime updates to the book, plus lifetime access to the member's only forum.
The basic theme of the Rich Jerk is to be creative and think outside the box.
For example, the lifetime updates and forum offer mentioned above creates a "win-win" situation:
It's a win for the customer because they get the unusual benefit of having paid for an eBook once, and then getting years of use out of it because any outdated info gets regularly replaced.
It is a win for the Rich Jerk company because they achieve a "stickiness" with their customers - usually selling an eBook is a one-time transaction, but now there is an incentive for the customer to keep coming back to the website.
Another "win win" example is that, when you go to their site, they offer to build you a free internet marketing website - even if you don't buy the book.
You then win because you get a professionally designed website for free, and they win because they require you to sign up for hosting the site through them, so they get a percentage of your hosting fees.
Finally, I enjoyed their out-of-the-box example of a pay per click ad - first, they show a conventional ad for a fictional rust removing product, and then the Rich Jerk version. Which one is more likely to get clicked on?
Remove Rust Instantly
Removes, and repels future rust.
Buy online now. Onsale.
Rust Sucks
We wish rust was a real person
so we could do him bodily harm.
A few years ago, after I started earning a steady $100-$200 a month online, I decided to re-invest some of my earnings in education. I chose the "Rich Jerk" book because I read a good review on it, and saw that it was only $9.95. I felt that I could justify this price.
I went to the website, read the marketing materials, and some of the stuff in the free forum, and I was laughing so hard! This "guy" is really wickedly funny and sarcastic.
I went ahead and bought the book. I also took the up-sell, which is the deluxe collection of 60 mp3's that are a companion to the book.
I loved the book and mp3's!
This eBook will provide you with a good, solid introduction to affiliate marketing, pay per click advertising and arbitrage, search engine optimization (SEO), creating your own information products, and even buying wholesale merchandise and selling it on Ebay.
You probably could find a lot of this info for free by spending hours searching through dozens of websites, but the "Rich Jerk" provides this information in a short, simple, and humorous book - for only $9.95.
Also, information on internet marketing can quickly become outdated, but the low price of the "Rich Jerk" includes lifetime updates to the book, plus lifetime access to the member's only forum.
The basic theme of the Rich Jerk is to be creative and think outside the box.
For example, the lifetime updates and forum offer mentioned above creates a "win-win" situation:
It's a win for the customer because they get the unusual benefit of having paid for an eBook once, and then getting years of use out of it because any outdated info gets regularly replaced.
It is a win for the Rich Jerk company because they achieve a "stickiness" with their customers - usually selling an eBook is a one-time transaction, but now there is an incentive for the customer to keep coming back to the website.
Another "win win" example is that, when you go to their site, they offer to build you a free internet marketing website - even if you don't buy the book.
You then win because you get a professionally designed website for free, and they win because they require you to sign up for hosting the site through them, so they get a percentage of your hosting fees.
Finally, I enjoyed their out-of-the-box example of a pay per click ad - first, they show a conventional ad for a fictional rust removing product, and then the Rich Jerk version. Which one is more likely to get clicked on?
Remove Rust Instantly
Removes, and repels future rust.
Buy online now. Onsale.
Rust Sucks
We wish rust was a real person
so we could do him bodily harm.
Nicole Kidman - Most Overpaid Actor in Hollywood?
Posted on 13:26 by Unknown
Nicole Kidman made the top of Forbes magazine's second annual list of least bankable stars.
The magazine used a simple ratio - they added up each actor's salary for their last three films, and divided it by the films' combined gross income, to get a payback factor.
In Kidman's case, last year she returned $8 for each $1 she earned. This year, she returned $1 for each dollar she earned.
She was paid $17 million for "Invasion" and the film lost $2.68 for each dollar it paid her.
The magazine used a simple ratio - they added up each actor's salary for their last three films, and divided it by the films' combined gross income, to get a payback factor.
In Kidman's case, last year she returned $8 for each $1 she earned. This year, she returned $1 for each dollar she earned.
She was paid $17 million for "Invasion" and the film lost $2.68 for each dollar it paid her.
Chicago Tribune vs. Google Over United Airlines Rumor
Posted on 11:08 by Unknown
On Monday, shares of United Airlines suddenly plunged from $12 to $3 because of a false report that UAL was again seeking bankruptcy protection.
Trading was temporarily halted, and UAL confirmed that the report was not true.
It turns out that the Tribune-owned Florida Sun Sentinel newspaper had a 6-year old Chicago Tribune article archived on its business site about UAL's 2002 bankruptcy.
At around 1 am, someone viewed that article - making it the most viewed article for that time period, and causing a new link to be made to the "most frequently viewed" page.
The Google "bot" followed that link, indexed the page, and put a 9/08/2008 timestamp on it.
The Tribune now wants Google to keep its "bot" off their website.
Trading was temporarily halted, and UAL confirmed that the report was not true.
It turns out that the Tribune-owned Florida Sun Sentinel newspaper had a 6-year old Chicago Tribune article archived on its business site about UAL's 2002 bankruptcy.
At around 1 am, someone viewed that article - making it the most viewed article for that time period, and causing a new link to be made to the "most frequently viewed" page.
The Google "bot" followed that link, indexed the page, and put a 9/08/2008 timestamp on it.
The Tribune now wants Google to keep its "bot" off their website.
Don't Be A Seminar Junkie
Posted on 08:16 by Unknown
There are a lot of good books, DVDs, courses, and seminars on topics such as internet marketing, investing, real estate, etc.
A good education is invaluable for those of us who want to succeed in life, and become financially independent with multiple passive streams of income.
The pitfall, however, is when the courses and seminars become an end in themselves.
It is very easy to become a "seminar junkie", where it becomes a form of entertainment to take classes and seminars, and you feel like you are making progress without the temporary discomfort of having to take concrete actions.
But the successful people are those who focus on one thing at a time and take action.
Even the best self-help and get-rich courses are not turnkey businesses.
Like any other profession, reading and studying is only the first step. You need to then apply what you have learned, grow out of your comfort zone by putting yourself in uncomfortable positions, build experience, and mold the material into a system that works for you.
A good education is invaluable for those of us who want to succeed in life, and become financially independent with multiple passive streams of income.
The pitfall, however, is when the courses and seminars become an end in themselves.
It is very easy to become a "seminar junkie", where it becomes a form of entertainment to take classes and seminars, and you feel like you are making progress without the temporary discomfort of having to take concrete actions.
But the successful people are those who focus on one thing at a time and take action.
Even the best self-help and get-rich courses are not turnkey businesses.
Like any other profession, reading and studying is only the first step. You need to then apply what you have learned, grow out of your comfort zone by putting yourself in uncomfortable positions, build experience, and mold the material into a system that works for you.
Posted in Passive Income, Personal Finance, Personal Growth, Real Estate, Stock Trading
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Wednesday, 10 September 2008
Leveraging Your Assets, Disney Style
Posted on 13:06 by Unknown
Since Disney's 1953 movie "Peter Pan", Tinker Bell has been a popular classic Disney character, but they never did much with her.
Now, according to an article I saw last week in the Chicago Tribune business section, they want to "recast" her to launch a billion dollar Fairies franchise, aimed at girls who have outgrown the "Disney Princesses", but are still too young for Hannah Montana.
They are going to start the launch with the straight-to-DVD movie "Tinker Bell", which is due out on Oct 28, and made under John Lasseter - the creative force behind Pixar.
Then, there will be 3 more movies, followed by an online fairy world, followed by fairy-themed merchandise: books, toys, etc.
After the success of the "Princesses" line of merchandise (which should sell $4 billion this year), Disney had people hunting through their animation vault, looking for more opportunities.
They realized that Tinker Bell had a lot of latent demand they were under-utilizing, because Tinker Bell merchandise has always sold well at Disney parks and resorts ($800 million in sales last year).
Even before reading this article, I thought Disney does a good job of recycling assets. For example, they make expensive movies for the theaters - such as Lion King and Beauty and the Beast - then they reuse the characters in weekly shows on Disney's channels. Finally, they release the sequel as a direct-to-DVD movie - thus capturing a high profit margin.
I think Disney can serve as a lesson to small businesses and even individuals - take stock of your assets, and think creatively about how you can further utilize them for profit.
Now, according to an article I saw last week in the Chicago Tribune business section, they want to "recast" her to launch a billion dollar Fairies franchise, aimed at girls who have outgrown the "Disney Princesses", but are still too young for Hannah Montana.
They are going to start the launch with the straight-to-DVD movie "Tinker Bell", which is due out on Oct 28, and made under John Lasseter - the creative force behind Pixar.
Then, there will be 3 more movies, followed by an online fairy world, followed by fairy-themed merchandise: books, toys, etc.
After the success of the "Princesses" line of merchandise (which should sell $4 billion this year), Disney had people hunting through their animation vault, looking for more opportunities.
They realized that Tinker Bell had a lot of latent demand they were under-utilizing, because Tinker Bell merchandise has always sold well at Disney parks and resorts ($800 million in sales last year).
Even before reading this article, I thought Disney does a good job of recycling assets. For example, they make expensive movies for the theaters - such as Lion King and Beauty and the Beast - then they reuse the characters in weekly shows on Disney's channels. Finally, they release the sequel as a direct-to-DVD movie - thus capturing a high profit margin.
I think Disney can serve as a lesson to small businesses and even individuals - take stock of your assets, and think creatively about how you can further utilize them for profit.
Creative Thinking and Fair Dealing in Commercial Real Estate
Posted on 12:27 by Unknown
I saw a newspaper ad for free seminars in my area for the Institute of Commercial Real Estate.
I didn't go - I want to concentrate on my blogs/websites for now - but I wrote down the website from the ad and checked it out.
I'm not sure if they are a get rich quick scheme or not, but I felt more credibility when I read the founder's blog.
I think it is true that small businesses get added credibility if the owner keeps a blog on the site.
Anyway, I really liked this post.
The guy could have taken the easy way out and raised the tenant's rent - wiping out their family business.
Instead, he did some creative thinking, and worked out a win-win situation that still made him money, and did not hurt them.
To me, this envisions the type of creative, ethical businessman I like to be.
I didn't go - I want to concentrate on my blogs/websites for now - but I wrote down the website from the ad and checked it out.
I'm not sure if they are a get rich quick scheme or not, but I felt more credibility when I read the founder's blog.
I think it is true that small businesses get added credibility if the owner keeps a blog on the site.
Anyway, I really liked this post.
The guy could have taken the easy way out and raised the tenant's rent - wiping out their family business.
Instead, he did some creative thinking, and worked out a win-win situation that still made him money, and did not hurt them.
To me, this envisions the type of creative, ethical businessman I like to be.
Fannie Mae: Followup to Five Stock Picking Ideas
Posted on 10:34 by Unknown
Back in June, I had a post entitled Five Stock Picking Ideas, which mentioned 5 stock picks from Forbes columnist Lisa Hess.
One of her picks had been Fannie Mae.
Needless to say, in the latest edition of Forbes, she now calls it "one of my more spectacularly awful recommendations".
This is an example of why diversification is an important part of investing.
My stock trading system preaches diversification.
You can never know what will happen with any individual stock, that is why my system uses my mathematical formula to separately trade multiple stocks within my portfolio.
One of her picks had been Fannie Mae.
Needless to say, in the latest edition of Forbes, she now calls it "one of my more spectacularly awful recommendations".
This is an example of why diversification is an important part of investing.
My stock trading system preaches diversification.
You can never know what will happen with any individual stock, that is why my system uses my mathematical formula to separately trade multiple stocks within my portfolio.
Tuesday, 9 September 2008
Google - Best Company to Work For
Posted on 13:58 by Unknown
| According to this article, Google offers tons of benefits, like 11 free gourmet cafeterias, workout rooms, massages, barbers, day care, free wi-fi shuttle buses to the train station, etc. |
Even NBA Players Are Affected By the Housing Slump
Posted on 13:31 by Unknown
The Wall Street Journal mentioned that NBA players Allen Iverson and Rasheed Wallace both reduced the asking price on their homes.
Iverson dropped the price on his house in the Philadelphia area by 37% - from $6.3 million to $4 million. He bought the house in 2003 for $5 million.
Wallace dropped the price of his home in Portland from $5.2 million to $4.9 million (down by 6%).
I think this story shows that the housing slump is now affecting the market for luxury properties.
Iverson dropped the price on his house in the Philadelphia area by 37% - from $6.3 million to $4 million. He bought the house in 2003 for $5 million.
Wallace dropped the price of his home in Portland from $5.2 million to $4.9 million (down by 6%).
I think this story shows that the housing slump is now affecting the market for luxury properties.
West Bengal Protests Over Nano Factory Show Indian Struggles With Land Acqusition
Posted on 09:53 by Unknown
| An interesting point mentioned in this article is that, when a state government in India acquires the land for a company, using the Land Acquisition Act dating back to British rule, there are more issues. When villagers deal directly with the companies, they have had more bargaining power, and the results have been more peaceful. |
Monday, 8 September 2008
Carnivals
Posted on 16:39 by Unknown
My post on Tribune Wants to Structure Cubs Sale To Avoid Taxes: Will Baseball Approve the Debt Load? is included in the latest editions of both the Carnival of Debt Consolidation Loans, and the Carnival of Moneyed Midways.
Scottrade Free Trades Promotion Through 10/31/2008
Posted on 16:01 by Unknown
In my book "Stock Trading Riches", and on this blog, I have promoted trading stocks through Scottrade.
I have found their website easy to use, reliable, and they only charge $7 per trade.
Normally, if you open an account with them using this referral code (ZNTJ5666), you will get three free trades.
However, if you open a new account now through 10/31/2008, you will get 7 free trades!
Low costs are one of the few things that a trader or investor can control with certainty.
When I was younger, I didn't pay that much attention to trading costs - mostly because at that time I thought I would make a "big killing" in stocks and commodities ;-)
Since then, of course, the markets battered me into humbleness.
Instead of trying to get rich quick, the correct approach is to get above average returns by combining a system with a known edge with low costs.
I have found their website easy to use, reliable, and they only charge $7 per trade.
Normally, if you open an account with them using this referral code (ZNTJ5666), you will get three free trades.
However, if you open a new account now through 10/31/2008, you will get 7 free trades!
Low costs are one of the few things that a trader or investor can control with certainty.
When I was younger, I didn't pay that much attention to trading costs - mostly because at that time I thought I would make a "big killing" in stocks and commodities ;-)
Since then, of course, the markets battered me into humbleness.
Instead of trying to get rich quick, the correct approach is to get above average returns by combining a system with a known edge with low costs.
See Salaries at GlassDoor.com
Posted on 10:25 by Unknown
| This website lets you see anonymous salaries that have been posted by company. You can sign up anonymously and give your salary, employer name, and title, then you can see the other salaries when you are logged in. |
I think this is a great idea because, without a site like this, I think it would be almost impossible for workers at large companies to find out their salaries.
The alternative would be for someone at the company to organize a secret poll or newsletter where people anonymously give their salary info. Then, the data would have to be tabulated, and the results distributed - without management finding out about it.
Friday, 5 September 2008
Detecting Tax and Accounting Fraud thru Benford's Law
Posted on 15:37 by Unknown
On a recent tax blog carnival, I found this interesting post about how the IRS can flag "creative" numbers for audit by using Benford's law.
Benford's Law turns out to be interesting. It has to do with the distribution of the leading digit in any set of numbers (i.e. stock prices, population counts, tax returns, etc).
You would think that this would be evenly distributed - i.e. 10% of the numbers would start with a 1, 10% with a 2, etc.
Instead, it turns out that the numbers are evenly distributed by their logrithms. So, for example 30% of the numbers should start with a 1, and the distribution drops until a 9 should only be the leading digit 4.6% of the time.
The IRS and forensic accountants make use of this mathematical rule.
If you want to read a little bit more on it, and see the actual formula, I also created an entry on my math blog.
Benford's Law turns out to be interesting. It has to do with the distribution of the leading digit in any set of numbers (i.e. stock prices, population counts, tax returns, etc).
You would think that this would be evenly distributed - i.e. 10% of the numbers would start with a 1, 10% with a 2, etc.
Instead, it turns out that the numbers are evenly distributed by their logrithms. So, for example 30% of the numbers should start with a 1, and the distribution drops until a 9 should only be the leading digit 4.6% of the time.
The IRS and forensic accountants make use of this mathematical rule.
If you want to read a little bit more on it, and see the actual formula, I also created an entry on my math blog.
IRS and Substitute for Return
Posted on 14:46 by Unknown
I just read this interesting post on the IRS Substitute for Return (SFR).
According to the post, if you don't file a tax return, then the IRS can fill one out for you - this is the Substitute for Return (SFR).
You probably don't want this because the IRS doesn't fill it out to your advantage.
They automatically prepare your SFR with the least deductions (single - no itemization). Also, they only go ahead and file it if you owe the government. If you are owed a refund, they don't bother to file it.
According to the post, if you don't file a tax return, then the IRS can fill one out for you - this is the Substitute for Return (SFR).
You probably don't want this because the IRS doesn't fill it out to your advantage.
They automatically prepare your SFR with the least deductions (single - no itemization). Also, they only go ahead and file it if you owe the government. If you are owed a refund, they don't bother to file it.
Thursday, 4 September 2008
Wisdom From Andy Rooney
Posted on 14:09 by Unknown
| I've learned.... That the best classroom in the world is at the feet of an elderly person. I've learned.... That when you're in love, it shows. I've learned.... That just one person saying to me, 'You've made my day!' makes my day. I've learned.... That having a child fall asleep in your arms is one of the most peaceful feelings in the world. I've learned.... That being kind is more important than being right. I've learned.... That you should never say no to a gift from a child. I've learned.... That I can always pray for someone when I don't have the strength to help him in some other way. I've learned.... That no matter how serious your life requires you to be, everyone needs a friend to act goofy with. I've learned.... That sometimes all a person needs is a hand to hold and a heart to understand. I've learned.... That simple walks with my father around the block on summer nights when I was a child did wonders for me as an adult. I've learned.... That life is like a roll of toilet paper. The closer it gets to the end, the faster it goes. I've learned.... That we should be glad God doesn't give us everything we ask for. I've learned.... That money doesn't buy class. I've learned.... That it's those small daily happenings that make life so spectacular. I've learned... That under everyone's hard shell is someone who wants to be appreciated and loved. I've learned.... That to ignore the facts does not change the facts. I 've learned.... That when you plan to get even with someone, you are only letting that person continue to hurt you. I've learned.... That love, not time, heals all wounds. I've learned.... That the easiest way for me to grow as a person is to surround myself with people smarter than I am. I've learned.... That everyone you meet deserves to be greeted with a smile. I've learned.... That no one is perfect until you fall in love with them. I've learned... That life is tough, but I'm tougher. I've learned.... That opportunities are never lost; someone will take the ones you miss. I've learned.... That when you harbor bitterness, happiness will dock elsewhere. I've learned.... That I wish I could have told my Mom that I love her one more time before she passed away. I've learned.... That one should keep his words both soft and tender, because tomorrow he may have to eat them. I've learned.... That a smile is an inexpensive way to improve your looks. I've learned.... That when your newly born grandchild holds your little finger in his little fist, that you're hooked for life. I've learned.... That everyone wants to live on top of the mountain, but all the happiness and growth occurs while you're climbing it. I've learned.... That the less time I have to work with, the more things I get done. |
Amazon.com's 2008 Primetime Emmy Awards DVD Promotion
Posted on 13:48 by Unknown
Amazon.com is running a special DVD sales promotion through September 30, to tie in with the 2008 Primetime Emmy Awards.
Tuesday, 2 September 2008
Carnival of Personal Finance #168
Posted on 14:19 by Unknown
My post on how markets react to fundamentals is included in the 168th edition of the Carnival of Personal Finance.
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