Tuesday, February 12, 2008

Mid-Year Performance Review Update


Well no real news to report on the Mid Year Review front. I met with the Boss man, according to him my work is doing awesome and that I'm already performing at the next level so there's no tasks or project I need to master before I can get promoted. Okay I'm thinking if that's they case why am I not promoted yet? So I polity try to ask this question but just get blown off. So now what do I do???? On top of this come April I'm getting transfered to a different department with different job descriptions but the one good thing is my soon to be new boss man, "Mr. VP", recognizes me as a high achiever. RRRRGGGG that was no help - so it looks like I'm going to bide my time for now.

Monday, February 11, 2008

Progress on Goals for 2008


Alright all, its officially been over one month since the start of the new year so thought I should check up on my action plan for achieving my goals especially since some of them had January and February due dates so here goes:

1. Have Net Worth of $105,000 – My net worth is increasing (yeah!) and a very quick calculation of my net worth is over $90k. I have not been as good about saving the $100 a month outside of my retirement accounts, so I need to establish some set plan to prove that I’m saving the $100, be it via a phony withdraw listed in my accounts etc so that I don’t touch this money. I plan to have this plan established before the end of February.

2. Fully Fund my 401k and Roth IRA – I’ve confirmed that my 401k automatic deduction is still set at 27% which will allow me to save the max. When I get my annual cost of living increase I will have to decrease so that I don’t reach the max too soon and loose out on the company matching but the cost of living increase won’t happen until September, so no action is required until then. I have investigated the most economical way and easiest way for me to contribute to my Roth IRA and that is with a once a month automatic transfer from my bank account to Vanguard. Because I’ve signed up for electronic statements there is no cost to do this. So every month on the 22nd $417 is withdrawn from my bank and invested.

3. Diversify Roth IRA – I’ve made no progress on this one other than to check into other mutual funds. This one will require some more investigation on my part as far as the way to do this economically via Vanguard. I know the minimum transaction required to start a different fund in vanguard is $3,000. So I will need what the best method to procure the other fund (i.e. sell some of my S&P 500 fund and invest in the other or lump sum contribution). I plan to have this work complete by February 29th. Does anyone have any advice on how you did it?

4. Get Promotion – I’m working hard towards this one no only am I 1. Continuing to do an "amazing" job on every task but I also have my mid-year review coming up on Tuesday where I plan to work with my boss to 2. List my responsibilities and compare to established tables for positions 3. Talk to my boss about the discrepancy I find in responsibilities and position and request to know the steps I need to take to make it to the next level (additional tasks to take on, people to talk to etc). 4. Continue to Ace my Performance Review and take the opportunities that are offered to me

5. Get Ready to Buy a House - I’ve pretty much deleted this goal from my list. (read my Rent, Don't Buy Post to better explain my reasoning). I’ve decided to rent for one more year, continue to save for a down payment (above and beyond 20%), and wait out a raise and hopefully promotion to have more monthly cash flow.

Well what do you think, am I on my way to achieving my goals for this year?

Monday's Money Funny - Who Needs a 401k? I'd Rather Have A Castle

I've started a feature on my blog called "Monday's Money Funny" which are humorous (or at least humorous to me) articles/jokes/just about anything (real or satire) that I've discovered over the weekend when I catch up on all my on line reading that spark a need for knowledge. For example last week's a satire on the government's plans to spark the struggling economy. This week's is a book review on "House Lust: America’s Obsession With Our Homes” by Daniel McGinn.

I hope you enjoy the fifth of the series from NY Times

Below is a preview of the article, click on the link above to see the article in its entirety:

Putting a modern-day finish on this propensity is “House Lust: America’s Obsession With Our Homes” by Daniel McGinn (Currency, $24.95), which chronicles an epic of satirical, if not quite biblical, proportions.

“How did home renovations come to routinely turn families’ lives upside down?” he asks. “Why do thousands of us now watch reality shows about home flipping or house hunting? Why did so many people decide to start investing in real estate, or quit good jobs to seek a fortune selling houses?”

[...]

“Our homes may no longer be making us rich,” he writes, “but living through an era when we thought they might has resulted in a permanent shift in thinking — one that will leave many of us happily obsessed with houses for years to come.”

The millions of Americans currently facing home mortgage foreclosures will probably regard such unbounded optimism as the eighth deadly sin.

I don't know about you, but after seeing this book review, I've already consolted my library to be added to the waiting list to read this book. It raising interesting questions of oneself (especially for me since I'm planning to buy a home some time in the near future) about how much of a home is really needed and what's the best strategy for purchasing one. I'm personally a huge fan of Money.MSN and found an article by Liz Pulliam Weston about how big should you really go.

Stay tuned for next week's Monday's Money Funny. Also if you run across any Monday Funnies please email them to me at future.millionaire.blog@gmail.com and if I use them I will give you credit and link to your blog.

Friday, February 8, 2008

Alright you Blog Stalkers Now's Your Chance to Comment and Win


I'm a huge blog stalker, I'll visit several blogs but rarely comment and I think/hope that's what's happening on this blog since I check my sitemeter reading and see lots of visits but very few comments.

One of my big motivations for starting this blog was that I wanted feedback from readers, otherwise I can think my thoughts on my own with out posting them, so in an effort encourage more comments I'm borrowing an idea from some of the blogs I read and offering a contest to readers who respond. For the next two weeks anyone who comments on any post will be entered into a drawing for a chance to win one of my favorite financial books The Millionaire Next Door. The more comments the more chances to win.

Happy commenting!

Thursday, February 7, 2008

My Mid-Year Performance Review is Tuesday

One of my financial goals for 2008 is to obtain a promotion. To me a promotion equates to this equation promotion = more money = more savings = closer to financial freedom

My career goal was two years after my college graduation to obtain a promotion and by the end of this year it will have been two years. (And I will have worked for the company for over 6 years! – wow saying that makes me feel old even thought I’m not). To date I’ve only received one promotion and the event that prompted this promotion was graduating college since I had been verbally given a promotion a year before then contingent upon graduating college. Because of the company bureaucracy, I understood that I could not be “officially” promoted due to a lack of degree even thought I was very deserving of promotion based upon my contributions to the company. (I think there could have been a way around this but I was willing to follow the rules for the time being, since bucking the system would have meant possibility not having as much flexibility in my job like telecommuting two days a week so I could attend some classes only offered at specific times.)

In my company, promotions are typically given out in September following our end of fiscal year evaluations. Our mid-year evaluations are now in full swing, mine happens to be schedule for this coming Tuesday. The company norm for length between promotions for those of us lower on the corporate ladder occur between 2-3 years for each position, of course dependent upon an individual’s performance. People mid-ladder pole 4-5 years, and then upper ladder it really depends some are 1-2 years, while others peak out and it takes 10 years to move up. I’m still currently on the lower end so a promotion by the end of the year would be with in the norm.

Okay, enough background of my status and the company, I think I’ve sufficiently proven that a promotion is realistic with in the parameters of the corporate bureaucracy and I won’t get into all the money and client contacts above the norm I’ve made on deals for the company or the outstanding job I’ve been doing because I’ll save all that for my review on Tuesday (plus this post is already getting really long). The real meat/intent of my post is that I’ve long sense done my homework for researching how to achieve a promotion since my last one I didn’t have to strategize to obtain (and maybe this one I don’t really need to either but I’d rather be proactive). I stumbled across an article about the key steps to achieving a promotion - I wish for the life of me I knew where I got it as I’d like to give them credit and also revisit this article for my use (if you know the article I’m referring to please let me know where its from). The only remnants I have of this article are my notes on a post-it stuck to my bulletin board above my computer.

Here’s what my notes say:

  1. Determine Expectations --- research HR for specific tasks/abilities, talk to Debbie about this
  2. Perform a Gap Analysis between current duties and next level --- per HR’s def – ask G if there’s specific form already created, also ask about at Mid-year and request to come up with a list together to achieve the difference
  3. Schedule meeting with list of skills and responsibilities, goal is next level, find project etc that will help achieve promotion --- also do together at Mid-year PPM
  4. Prioritize and document assignments --- also success and stats from completed projects especially the pharmacy and $$$ made
  5. Cash in chips – show documentation that achieved --- start list today of accomplishments with stats

I’ve done a real good job of following this advice over the last couple of months. I have figured out the expectations according to the corporate info established and will find out my boss’s expectations on Tuesday, I preformed my gap analysis and have already put the bug in my boss’s ear about wanting to do this as well as create a list of skills and responsibilities during the review, and I’ve clearly documented success of projects and tasks completed. So I’m hoping all goes well.

My question is what else should I do to a) prep for my mid-year, in past years I’ve already been ready with a jot list of success and my goals, but I’ve never been actively seeking promotions and b) beyond what I’m doing what should I do to position myself to be promoted in September?

Alright you seasoned professionals with several promotions under your belt…any other good tips for me?

Wednesday, February 6, 2008

New Favortie Blog - Fabulous Financials by Single Ma


I've just found an amazing new to me financial blog that I am adding to my favorite blogs its Fabulous Financials by Single Ma. According to her About profile she's a 30-something single mom who's long term financial goals include having a net worth of $1M+. Her blog is about her journey to financial freedom. Even though I'm not a Ma, I think we share some similar goals.

Single Ma is witty, well in formed, down to earth, on top of her financial future, and she's a blast to read with her colloquial talk about her friends and family.

I hope you'll enjoy her blog as much as I did.

(Graphic from Single Ma's Profile)

Tuesday, February 5, 2008

Judging The Jones’ Money Moves


I dropped off my car today to get detailed for the very first time ever. (I have owned the car since 2004). I am most excited about this and have been looking forward to it for months. In fact I’ve been wanting to do it for quite a while but always felt it was too expense, so in November I decided what the heck its worth it because in a way its also a form of car maintenance and started saving for it. Since then I’ve saved more than enough to have my car detailed.

When my car was picked up at the jobsite today to get detailed one of the guys I work with made the joked that apparently I’m getting paid too much to be able to afford these luxuries. He went on and on about how broke he is and how much he would like to be able to afford the same luxuries.

So this guy, we’ll call “Big Spender”, continues to rant on and on about how its not fair that I can get my car detailed. Well I know “Big Spender” makes more money than I do because I do the GC’s and cost analysis every month so I know roughly what his costs ( salary and benefits) to the project are per month. But despite making what in my opinion is a pretty nice salary, he always talks about how broken and in debt he is. And I can’t help but feel sorry for him, especially when he talks about how he “can’t” save for retirement because his bills are so high and that retirement is a luxury for people with money. I don’t feel sorry for him that he “can’t” save, what I feel sorry about is that he doesn’t get it, he refuses to change his spending habits. And in my humble opinion retirement isn’t a luxury for people with money, it’s a comfort for people who allocate their resources effectively and prioritize their future over their present over-spending. And while “Big Spender” doesn’t spring for “luxuries” like getting his car detailed once in 4 years and savings for retirement like I do, he does blow money like crazy on random knick-knacks, high dollar electronics, DVD’s, and credit card interest. For super bowl weekend he sprung for a brand new High-Def LDC TV, and I know that bad boy had to have been at least 40, that’s right four-zero, times more expensive than detailing a car. If you ask me he’s making a choice and that choice is that he doesn’t value the same “luxuries” that I do.

Choices --- that’s what life and personal finance come down --- priorities and choosing what’s important to you.

Well I’m off to enjoy my newly cleaned car.

Monday, February 4, 2008

Monday's Money Funny - The Current Economy

I've started a feature on my blog called "Monday's Money Funny" which are humorous (or at least humorous to me) articles/jokes/just about anything (real or satire) that I've discovered over the weekend when I catch up on all my on line reading that spark a need for knowledge. For example last week's a "satire" (at least I sincerely hope its a satire) about why not to invest in a 401k which promoted a search for information regarding reasons to invest in a 401k or other retirement savings account. This week's is a satire on the government's plans to spark the struggling economy.

I hope you enjoy the fourth of the series from The Onion.

Below is the article:

Congress To Raise Alpacas To Aid Struggling Economy

January 30, 2008

WASHINGTON—Members of Congress assured Americans that they have a definitive plan for reviving the slumping economy when they unveiled on Monday a bold new fiscal stimulus package that calls for the purchase of a pair of alpacas

Senate Minority Leader Mitch McConnell (R-KY) said the proposal, which is expected to solve the sub-prime mortgage crisis, boost consumer confidence, and pump much-needed liquid capital into the market, will be put into motion as soon as the first issue of Alpaca World magazine arrives and Congress has a chance to go through the catalog and select the perfect mating pair.

Congress Announcement

Proponents of the new economic stimulus package show off the comfort and versatility of alpaca fleece.

"We're confident that breeding alpacas will jump-start the economy and lift this nation out of debt once we get the start-up money," said McConnell, who insists the exotic livestock require very little maintenance and are of a gentler temperament than their cousin the llama. "All you need is a fertile male and a female in heat, and nature takes it course. Before you know it, the money is rolling in and there's alpacas everywhere."

After weeks of debate, a bipartisan commission finally chose the alpaca initiative over a number of other proposals, including handcrafting turquoise jewelry, an extensive job-training program in the nation's most impoverished regions, and opening a U.S. Congress seller's account on Ebay. McConnell said the group was swayed toward the idea of mating alpacas and also shearing them for their valuable fleece because it required the fewest resources and was a "super-easy" way to rake in cash.

"It is time to stop bickering and take real steps to revive the U.S. dollar—which is why we're sending a fact-finding delegation out to the alpaca farm in Hagerstown [MD] next weekend," House Speaker Nancy Pelosi (D-CA) said. "Senator Chuck Hagel's brother-in-law said we could borrow his truck to pick up the alpacas from the National Zoological Society on Saturday."

Alpaca

An alpaca

"I can't believe we ever wasted our time with tariffs, raising interest rates, and tax hikes," Pelosi added. "This is such a no-brainer."

Under the new proposal, a Senate subcommittee will be formed to attend to the day-to-day care of the alpacas, providing food and water, cleaning up their communal dung pile, and securing the animals in their pen inside the Senate chamber at night. In addition, Congressman Robert Andrews (D-NJ) made his office available for storing buckets and shovels, saying the space is usually empty anyway since he prefers to work from home.

A Senate majority has already voted to name the alpacas Jefferson and Bongo.

Advocates also claimed that using the alpacas' fleece for knitted and woven items would energize the textile industry and eliminate the nation's dependence on foreign- produced ponchos.

"If we are truly committed and learn to spin our own fibers, we can cut out the middleman and sell socks, hats, and gloves directly to the American public," Sen. Orrin Hatch (R-UT) said. "People don't realize how much softer alpaca wool is because they've never had a chance to try it. Once they do, though—let's just say this war could be paid for in no time."

While initial reaction has been positive, critics of the plan have pointed out that Congress has still not paid back the money it borrowed from the American public to start that silk-screen T-shirt business it was so excited about in 2004, and many were concerned that this will just be a repeat of the Bedazzling the Economy Act of 2000.

The bill's sponsors, however, claimed that they had thought it all through, and that this economic stimulus package "can't miss."

Alpaca Farm

A special committee was sent to a nearby alpaca farm to scout mating pairs and pet some alpacas.

"If for some reason it doesn't work out—which it will—we can always allocate some additional spending for a goat and convert the venture into an executive petting zoo," Sen. Pat Roberts (R-KS) said. "Those other projects required too much overhead. With alpacas, it's just grass, and we already have the whole National Mall right across the street."

Sen. Mel Martinez (R-FL), a well-known fiscal conservative, remained one of the sole voices against the proposal.

"This harebrained scheme is shortsighted, ill conceived, and an absolute waste of time and effort," Martinez said. "Which is why from the beginning I said, let's raise emus. Not only do you have meat and eggs, but you can probably get some money for those feathers too."

Federal Reserve Chairman Ben Bernanke on Monday called the new plan "intriguing," but stressed that the nation's economic policy should continue to center around Sen. Robert Byrd's (R-WV) practice of selling soda and candy bars out of his office, which accounted for almost 30 percent of last year's gross domestic product.

This crazy idea to me seems about as successful as the stimulus package's $300, $600, and $1200 tax rebates. One author at CNN's Money even thinks the tax rebates would head straight to China rather than have an impact on the US's economy.

Stay tuned for next week's Monday's Money Funny. Also if you run across any Monday Funnies please email them to me at future.millionaire.blog@gmail.com and if I use them I will give you credit and link to your blog.

Friday, February 1, 2008

February's Net Worth

While this has been a super crazy week at work, I have taken the time to update my net worth and see where I stand since January.

My new net worth is just shy of $90k --- $89,807.11. This increase is primarily due to my regular savings via my 401k plan and Roth IRA because I know it sure wasn't market gains. I'm hoping by the time March roll's around I should be over the 90 mark which will be most exciting. Anyway that's all for now, back to the grind --- next week I should pick back up more regular writing.

Monday, January 28, 2008

Monday's Money Funny - 401k's

I've started a feature on my blog called "Monday's Money Funny" which are humorous (or at least humorous to me) articles/jokes/just about anything (real or satire) that I've discovered over the weekend when I catch up on all my on line reading that spark a need for knowledge. For example last week's was a joke about a man wanting to take his money with him which promoted a search for information regarding how create a will. This week's is a "satire" (at least I sincerely hope its a satire) about why not to invest in a 401k which promoted a search for information regarding reasons to invest in a 401k or other retirement savings account.

I hope you enjoy the third of the series from Time Out New York that I found via a blog I frequently read called My Open Wallet.

Below is the article: 401ks are for suckers

Five out of five financial planners think you should have one, and 70 million Americans do. This clock-puncher says they’re all wrong.

By Ashlea Halpern
Photograph: Roxana Marroquin

So here I am, 26 years old, and I haven’t saved a penny for retirement. Like many folks my age, I have a litany of excuses for opting out of my company’s 401k—school loans, credit-card debt, high rent, low pay and a minor addiction to eating out. It’s that last vice that speaks to my true feelings: I can’t rationalize budgeting for a tomorrow that may never come. I want to live now. I want to spend my cash on everything listed in this magazine, not hoard it away so I can score a nice trailer in Clearwater, Florida, 40 years from today.

For this, people think I am insane. Of TONY’s 88 eligible employees, only 11 have not enrolled in the company plan. Our editor-in-chief, the unofficial poster boy for employer-sponsored 401k plans, was beside himself when he found out I was one of them. “Why would you turn down free money?” he said. “If you saw a dollar on the street, would you take it?”

Begrudgingly, I started to research our plan. TONY’s participant-directed 401k allows me to contribute up to $15,500 pretax annually, with a 50-cents-on-the-dollar match for up to 3 percent of my salary. Pretty sweet, right?
But wait—there’s fine print.
Employer contributions are discretionary (i.e., in times of “business hardship,” they may be nixed—though TONY financial adviser Wayne Banks tells me this has never happened); and while you’re 100 percent vested in your contributions from the get-go, the company’s match follows a timetable: stay only one year, and get 25 percent, and so on. In creative fields with high turnover (like ours), that level of commitment is, well, scary.


I also resent that more and more businesses are beefing up their 401k plans instead of offering living wages and bonuses. While I appreciate that companies aren’t required to offer any match at all, isn’t a vesting schedule diametrically opposed to the spirit in which 401ks were created—to empower employees after pensions went kaput?
Brian Fernandez, a financial planner at Smith Barney, paints a bleaker picture of why I should save for retirement instead of taking trips to Europe. “Social Security is broken,” he says. “Congress set up the 401k because it knew the American public needed to save its own money.”
David Wray, president of the Profit Sharing/401k Council of America, evaluated TONY’s plan and concluded that “while it isn’t a very rich match,” it’s unlikely you could outperform a 50 percent return elsewhere.
Kevin Kautzmann, founder of EBNY Financial LLC, also reiterated our 401k’s tax benefits, particularly in a city like New York: “It’s the best deduction you’re going to get.”
That’s all good, but why should Congress—or my boss, for that matter—care what I do? Is it out of the kindness of their hearts?
I’d like to think so. But there’s also an IRS rule that caps the amount of money a company’s highly compensated employees (or HCEs, defined as people who make over $100,000) can save based on the average amount put away by the rank and file. Assuming the boss is an HCE, it’s to his benefit that underlings like you, me and the janitor save for retirement. “The employer has an incentive, sure,” says Wray. “But it’s win-win.”
Win-win until your kid gets sick or your mortgage shoots through the roof. The 401ks are designed in such a way that everyone—financial advisers, stockbrokers, mutual-fund managers—gets paid before you do. I fundamentally object to that. It’s my money, dammit. Why should I be penalized 10 percent for a hardship withdrawal?
“It has to be enforced savings, otherwise people won’t do it,” says Wray. “The other benefit of a 401k is that the investment decision has been enormously simplified. That’s terrific because most people are never going to open a brokerage account by their own volition.”
But that’s exactly it—most folks enrolled in 401k plans don’t have a clue how they work. “If you offer more than eight choices, their eyes glaze over,” says Kautzmann. Clearly, I’m supposed to take comfort in knowing that the government and my employer are directing my investments. Just keep in mind, this is the same government that botched Social Security, and some of the same employers that didn’t think twice about screwing a whole generation out of its pensions. (That’s not TONY, thankfully. Enron, on the other hand…)
“Money is very emotional for people, and it’s really difficult for them to give up control,” says Wray. “A 401k requires that an employee trust his employer, trust the government and trust the financial-services industry.” Sorry, bud, but that’s a trust I just don’t have. My mother was what you might call a “mattress banker”—she ratholed money around the house, $5,000 under the sink, $10,000 in a boot. And my dad, well, let’s just say “the masses are asses” is his favorite catchphrase. So if I’m on the dole at 65, eating cat food out of a rusty hubcap, I’ll be content knowing that while y’all Steady Eddies were fastidiously stashing pennies, I was gorging myself on expensive cheese in Paris and snorting hard drugs off the backs of go-go boys in Berlin.
In other words, I was living.

I'm really hoping that Ashley Halpern is writing this article as a satire, otherwise I fear for her in retirement as she won't be able to feed her minor addition to eating out let alone her basis necessity of feeding her self. Here's an article from About.Com explaining why you should contribute to your 401k as well as an article from HowStuffWorks.com explaining the benefits of a 401k and how to contribute.

Stay tuned for next week's Monday's Money Funny. Also if you run across any Monday Funnies please email them to me at future.millionaire.blog@gmail.com and if I use them I will give you credit and link to your blog.

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