Jamaica Here I Come!

I mentioned in my last post that I am headed to Jamaica next month!

Yes, I know, we're in a recession - and I have to admit that I felt a bit guilty that my friends and I planned a trip which wouldn't be using our tourism dollars to directly benefit Americans - but I'm still excited!

I'm going with three girlfriends from high school. We all reconnected at the 5 year reunion and have been trying to plan a trip together ever since. We were all going to try to get together over New Year's, but it didn't work out but we agreed on a week in March that worked.

The four of us scoured the internet for deals, and for once I didn't pick up the ball and plan the whole trip (I'm super good at planning trips). We didn't care where we went, and we're all scattered from Texas to South Carolina, so the locale was very flexible. Mexico had good hotel deals, but it was too expensive for the southeast girls to fly there. Miami was a cheaper flight, but no great hotel deals and the food/entertainment is expensive.

One of the girls found a great deal at an all inclusive resort in Montego Bay. The four of us have two Jr Suites for four nights and five days, and we each paid $500. That $500 includes all we can eat and drink at 10 restaurants and even more bars.

I am going to more than make up for the month of no carbs and no sugar I'll have had leading up to the trip. I LOVE beach drinks you can only order on vacation, like pina coladas and mai tais (which, fyi, run over 500 calories per serving).

The Plan
I'll start my trip by flying to Charlotte to meet and stay with one of the girls going on the trip. My high school roommate will stay too; unfortunately she can't make it on the Jamaica trip. We'll all have a ball in Charlotte though (interestingly, my high school boyfriend and my college roommate also live in that city).

Then K and I will fly out early Monday morning directly to Jamaica, where we'll land around 9:30 am. We don't leave until mid-afternoon on Friday. Bliss.

It's going to be interesting to catch up with those girls. We all lived in the same dorm in high school (boarding school), and we were all very different even then. One girl is sweet and preppy and dripping with Southern charm; one is bitchy and opinionated and preppy and dripping with Southern mannerisms; one is from up North somewhere and is a bit alternative and weight lifts and has lots of weird piercings. Then there's me - some combination of the first two I suppose, with less of a Southern accent.

We are going to make some MEMORIES!

Cost
In addition to the $500 for the hotel, my total flight costs were $700. Because I bought two round trip flights (one roundtrip to Charlotte and one round trip from Charlotte to Jamaica), my flight costs were significantly more than they would have been otherwise.

So the whole 7 day trip cost me $1,200. I might spend a bit on entertainment if we leave the resort, but I'll probably be saving some money considering that all my food and drinks are paid for (if I stayed home I'd probably spend $100 on food and drink during that week).

The only other travel expenses I'll have for the year are for Thanksgiving and Christmas flights home. Approximately $500, probably.

Confession: I've Been Shopping

I've been shopping this weekend. Yes, shopping! I know, I know, we're in a recession. And I AM cutting back.

This year I will spend less than half the amount I usually spend on shopping and travel. That despite the fact that I will get a 10%+ raise next month and that I'll receive a bonus of 20% of my salary as well (twice what I got last year).

So with that defense out of the way, I'll proceed to tell you about my purchases!

I was planning to do a bit of shopping this weekend anyway, even before I received a surprise $4,000 bonus (net!) in my paycheck on Friday. [The reason? I am headed to Jamaica next month for my one big trip of the year (generally I take 2). I am SO excited. I'll post about that next...]

So I needed a few things, namely beach shoes, spring sandals, sunscreen, and a bathing suit cover up. I cleaned out my closet last fall and those items were some of the old and ratty things I got rid of.

Nordstrom
My dinner Friday night was cancelled at the last minute, so I left work and wandered over to the mall (which is across the street from where I work). I had a great time unwinding and browsing in the mostly empty Nordstrom at the end of a long week. There were three cute shoe men who were more than happy to help and flatter me.

Next thing you know I was trying on Valentino's (no I did NOT buy any and never intended to!). I had gone in to look at some orange Cole Haan sandals that I'd noticed before. I was going to allow myself one new pair of sandals for the year, and I wanted to get something bright this time since all my shoes tend to be brown, beige, black, and generally conservative and/or preppy in style (I do work at a bank).

Well at Nordstrom they bring you lots of other stuff to try when you ask to try a pair of shoes. I love this. He brought some neutral Valentino flats he'd seen me admiring along with some Burberry flats (yuck) and some other stuff I don't remember.

He also brought be some L.A.M.B. sandals which I never would have picked up or noticed. I didn't really like the way they looked, either, but I tried them on anyway. And, WOW they looked awesome. I couldn't believe how good they looked on my feet. And they are comfortable. I felt like I could chase down a mugger in them easily. Or at least dance all night.

The only downside is that they are nude in color, but they are way funkier than the shoes I normally wear, so I think the color is perfect (besides, I always love neutrals). They will go with anything from jeans to a sundress to a nice work pants suit. Suffice it to say I bought them. They were $355, but they looked better (on me) than any of the Jimmy Choo's or Dolce & Gabbana's or other shoes that were going for double that.

It's been a long time since I bought any new shoes. I almost forgot how great it feels!! I was so exuberant that I totally forgot to use the $50 Nordstrom gift card I got in my stocking for Christmas. I don't shop very often, but when I do I usually buy a bunch of stuff at once. So the shoe excursion was only the beginning.

Carolina Herrera
I have been holding on to a $1,000 Carolina Herrera gift card since I won it last year in a charity auction (long story short: I paid less than half the face value; it was supposed to be a Christmas gift for the guy I was dating who loved to shop there; the recipient ended up giving it back when we broke up). I've never so much as set foot in that store, but that's exactly where I headed while floating on my shoe high Friday night.

The gift card was only valid at a particular location which was not the one at the mall. But I wandered in to see what I might be able to get for $1,000. To my surprise, I found I could get at least 3 items. I really liked some of the sportswear tops and one classic work dress was going for just about $650. I made a plan to go to the other store Saturday and fill in any remaining gaps in my spring wardrobe (for the record, I've tried in vain to sell the thing).

Banana Republic
Saturday morning I got up ready to shop. I dropped some jeans to be hemmed at the tailor, some shoes to be mended at the cobbler, got coffee, and headed out.

I had a $10 gift card to BR, in addition to a 15% off coupon so I decided to stop there first to see if they had anything I could use. Lots of sales items, but none really jumped out. I tried on lots of stuff, but most of it wouldn't really fill any gap in the wardrobe - just the same random blouses and flirty dresses I already own. However I really liked a cute khaki trench coat dress that I tried on. It was comfortable and flattering and perfect for travel (also, as it unzips completely from the front, it's also perfect for a movie-like scene where you just wear black lingerie underneath and show up at your lover's door and open it up seductively). Plus it will go perfectly with my new shoes too. :)

The sales girl told me that this month you also get another 10% off for using a BR card (which I have), so I threw in a super cute off white handbag that will go with anything and is perfect for going out all summer. I don't have anything that size or color, either.

I ALSO added a necklace and bracelet in order to maximize my discount and add a few flexible pieces (I rarely buy jewelry and don't own much of it so I never regret those purchases. Plus if I end up not wearing them they make perfect gifts when my sisters' birthdays come around).

When I was done doing damage at BR, I took a deep breath and headed next door...

Carolina Herrera
To my DISMAY I found that the other store, the only store at which I can use this card, is a special location. It only holds the couture line. In fact most of the store is dedicated to $10,000+ wedding gowns. Another third is formal wear. The rest is, well, not their more affordable CH collection. It consists of cocktail dresses, sun dresses, dress suits, and various tops. Expensive ones.

I identified a gorgeous fuchsia and orange knee length dress as soon as I walked in. The price was $3,450. I beelined to the red cashmere cardigan, which I figured would be the more affordable. The very gracious salesman helped me despite the fact that I was obviously not his ideal client. I tried a couple of dresses; the only one under $1000 looked terrible; the other one I liked and could actually wear frequently was $1,750. And they didn't have my size in stock.

I was almost resigned to leave the store empty handed and try to sell the gift card again when I spotted a black top that looked wearable. It was sleeveless, made of a stretchy black material that gathered all over, and had a ribbon on one shoulder that tied and flowed down for a foot or so. Simple, could be worn with jeans or a nice suit. I flipped the tag - $990.00. Nine hundred and ninety dollars. For a sleeveless black top.

I tried it, it fit off the rack (which is more than I could say of their dresses), Hector loved it, I bought it. To be honest, I'm not sure in normal circumstances I would have even been willing to pay the $70 in tax that it cost for it. I am glad I got something out of the gift card though - after all, it was meant to be a gift so I can't really complain. At least the proceeds went to help needy children or something worthwhile.

I cannot believe I actually own a $900 top though. I hope no one ever compliments me on it and asks where I got it.

So I spent just over $700 and got a killer pair of shoes, a versatile dress, a couture top, a great handbag, a necklace, and a bracelet. All of the items can be worn year round and dressed up or dressed down. I think I'm going to make do with what I've got as far as flip flops and bathing suit cover ups in light of all the shopping I've already done. All that's left is to do my requisite "wait three days and try it all on again and return anything you don't still LOVE" routine.

And of course the rest of the bonus ($3,400) goes right into savings.

Weight (Loss) Update

So this doesn't really have to do with personal finance, but for any of you who are interested I thought I'd update you on my weight (loss).

I've posted before about my weight (and my father's plans to help me reduce it), and in January I decided to focus on reducing it as a goal. I weighed in at my highest ever - 164.5 pounds - on January 3rd (I'm 5'7").

I didn't start any particular plan; I just continued to track my daily weight and workouts and alcohol consumption (which I've been doing since August 2008) and generally tried to eat better, drink less, and workout more than I had been before.

At the end of January, after the first 4 weeks, I'd lost five pounds. Actually I lost 2.5 pounds during the first week and spent the next three weeks whittling off the next 2.5.

During that month I exercised an average of 3.0 times per week and consumed alcohol an average of 3.3 times per week. I was excited to have at least broken the 160 mark and be back in the 150's. I was solidly at 159.5.

February was more difficult. With midterms and my work schedule I was only able to work out an average of 1.8 times per week, and I drank only slightly less at 3.0 times per week.

On Feb 20 I still weighed 159.5 pounds and knew I had to make a change. I decided to begin consciously reducing carbs, which worked well for me in high school if I remember correctly.

So last Thursday I cut out all sugar and most carbs from my diet. I've been eating a lot of salads, omelettes, fish, meat, cheese, veggies, peanut butter, and the occassional fruit.

I have consumed NO bread, pasta, sweets, rice, cereal, juice, milk, or potatoes. My only carbs have been the occassional glass of wine, the traces in vegetables, and that in the few pieces of fruit I've eaten.

After only three days (on 2/23) I was down to 157. I hadn't hit a weight that low in over a year, and I've continued to weigh in at exactly that every day since. I haven't worked out at all since beginning the low carb diet.

In short, over the last eight weeks I've lost - and kept off - 7.5 pounds! I lost 5 in January and 2.5 (maybe 3 by tomorrow!) in February.

I am still doing the low carb diet, and I hope I'll push through this plateau and lose another 5.0 pounds by March 15. To do this I'm going to stick with the low carb thing plus add back some exercise. My goal weight is 147, but I really start to look "thin" around 152. So if I can get back to that level before bathing suit season I'll be happy.

Surprise Bonus - 10x What I Expected!

My 2/28 paycheck hit my checking account last night, and it contained a very nice but unexpected surprise.

I knew that 4th quarter bonuses would be included in this paycheck, and I was expecing around $500 - which is what I got for the 3rd quarter.

Other than that I didn't have anything to base my expectations on, since I've only officially been on the incentive compensation system since July 2008.

So you can imagine my surprise when I received an extra $4,000+ in my paycheck!

I think what happens is that the final bonus of the year is supposed to adjust to make sure you got the correct figure for the whole year. And since I got $0 for quarters one and two I it would stand to reason that I'd get a big 4th quarter adjustment upwards.

But on the other hand, I've received close to $5K for the year now, which is a lot more than than $500 times 4 quarters.

Maybe I had a really good 4th quarter...? I doubt it since usually the 4th quarter is the worst because clients pull out deposits to pay taxes (and shop) with, and loans are sometimes paid down by small businesses who want to show good year end figures.

I don't know if I had a good or bad fouth quarter - or year for that matter - because there was a lot of portfolio shifting during that time as we hired many new bankers and let one go. Plus I never even received annual goals since I didn't have the portfolio for most of the year. Plus I don't even know how to read the system that shows us what our goals are and if we're reaching them (which should allegedly change soon).

Maybe the 4th quarter bonus includes a discretionary annual bonus? I know that's not right because a) those are paid in March and b) it's deliniated separately on our pay stubs.

WHATEVER. I have already transferred half of the surprise amount to savings, a quarter to my brokerage account (to erase my negative margin balance) and I intend to use the other quarter to prepay a debt that I will owe soon.

So many mini financial goals reached in one brief hour! I now have a full 3 months of expenses in saving, no interest bearing debt, and a few hundred dollars cushion in all my checking accounts. A financial clean slate!

And I am still anticipating a $2,000 tax refund in March and tuition reimbursement of $1,450 from my company in April.

(Which will come in handy since I'm about to have to kick a tenant out and fill the subsequent vacancy. More on that later).

Saving Priorities: Retirement vs Reserves

I am about to reduce my 401k contribution from 20% back down to 10% of my income.

No, I don't think this is a bad time to buy stocks - which is why I bumped it up to 20% last October in the first place. It's just that I know I really need to focus on boosting my liquidity this year as well. I no longer feel comfortable plugging away all my savings into retirement at the expense of my reserves.

Things I might need or want short term reserves for over the next 1-7 years:

• A new stove


• A new dishwasher


• A car (or car repairs)


• A wedding


• The down payment on a new homestead


• The down payment on a new rental property


• Any number of vacations or travel opportunities


• Vacancies in one of my rental properties


• A major plumbing overhaul in Rental #1


• A major electrical overhaul in Rental #1


• Attorney's fees if I get sued by one of my tenants

There are all these things and more that I might need savings for over the next 5, 10, 15, and even 25 years before I have access to my retirement investments. I will always need to save actively for these things, especially since many are recurring expenses.

Basically one's life is a series of short and medium term goals. Even goals like "start a business" or "save for the kids' college" are usually medium term goals of about 10 years, requiring more cash and bonds than stocks (as we've learned, stocks don't always go up over the course of a single decade). Retirement is really the only true long term goal.

And as important as that long term goal is, I can't even begin to conceptualize it; and I have no idea what my resources or expenses will be at that point or where I'll live or who I might be married to, etc. What's much clearer is that I might probably be planning a wedding, buying a car, and/or furnishing a new house in the not-so-distant future.

So which is more important? Should a young person sacrifice short term wants/needs (weddings, cars, eating out) for the sake of maxing out retirement accounts? Or should a person make sure they save adequately for the things they know will crop up sooner rather than later at the expense of saving for retirement?

It's hard to give up tax breaks by not maxing out my Roth 401k (which would take over 20% of my salary), and it's also hard to fight the urge to pour money into stocks since they are trading around decade lows. But I need balance in my savings.

From a purely portfolio perspective, I have more than enough in stocks/retirement/long term savings, and I really should probably put 100% of my savings efforts towards reserves. But I'm not going to do that either.

I'm going to put 10% of my income in my 401k and 10% in my money market fund.

How do you divide up your savings?

Men Caused Stock Market Crash?

There is a fascinating article called One Gender's Crash by Debora Spar in the Washington Post which highlights some of the differences between how males and females react to risk, choose professions, and generally affect our financial system.

Some excerpts:

Whether it be from a protectiveness born of biology or a reticence imposed by social norms, women may be less inclined than men to place the kind of bets that can get them in real trouble. Conversely, women may also be more inclined to blow the whistle on others' risky business
...
We don't yet know why women respond differently to danger signals -- and earlier, it appears -- than men. We don't know why women either shy away, or are effectively banned, from businesses that thrive on risk. One possibility, explored in a fascinating study published last year by John Coates and Joe Herbert of Cambridge University, is that women simply don't have the testosterone for it; on the trading floor, they deduced, higher profits literally correlate with higher levels of the male hormone. Another, examined in laboratory experiments conducted by Muriel Niederle and Lise Vesterlund at the University of Pittsburgh, is that women are far less inclined than men to bet their pay on performance, even if they have evidence to suggest that they are superior performers. [emphasis mine]
...
The financial crisis has exposed a quieter but equally pressing concern: We need women in leadership positions not only because they can manage as well as men but because they manage differently than men; because they tend -- over time and in the aggregate -- to make different kinds of decisions and to accept and avoid different kinds of risk. We need women who will say no to bad decisions based on male-dominated rivalries and clubby golf course confidences. We need women to blow the whistle when risks explode and to challenge the presumptions that too many men, clustered too closely together and sharing a common worldview, can easily indulge.

Wow. Interesting stuff. I like men, and their penchant for aggressiveness and risk taking (relative to women) is of course a good thing and has paved the way toward many societal advancements. But so too is the balance of the more female inclination to trod carefully, react quickly to signs of danger, and avoid risk. We need more of that balance in business and policy. Hopefully we'll get it eventually.

So You Want a Handout?

A few "unpopular" opinions about personal finance were recently summarized by Girls Just Wanna Have Funds. A very thought provoking and original post it is, but I just have to respond to two of her opinions - opinions which are shared by millions of Americans. Since I couldn't get my comment to post on her site, I'm happy to respond via post:

For the record, Ginger at Girls Just Want to Have Funds has pointed out that she does not necessarily agree with these opinions or want them to actually become public policy.

GJWHF: 1. Given the present state of the economy, people should be able to walk away from their homes if they are “under water” by a certain amount without penalty.

My response: You have GOT to be kidding me. That's like me going to the car dealer and saying "I don't think I should have to make payments anymore because my car is worth less than when I bought it." Or me wanting a refund on my gold jewelry because it decreased in value. Houses might decrease in value - and that might have been unexpected - but that doesn't change the utility you get from the property - either you're living there or you're renting it out for $XXX. Rarely are people FORCED to sell their homes or refinance, so who the F cares if your house is worth less?

And why make banks take a loss and have the government (i.e. other taxpayers) pay down mortgages just because the market declined? So everybody can play musical houses and start over fresh with loans that match the current values? What happens if they decline again? And to follow that logic, why don't we just have the government replenish everybody's 401ks back to 2007 levels? Why stop there - how about we get the government to guarantee all investors against any investment loss ever? - that'll make for a great sound market! After all, nobody should have to suffer the effects of risk, unless of course it pays off.

PS - Do you really want to see your tax rate rise to 50% or higher so that people can be shielded from declines in market value of their assets?

GJWHF: 2. I think the government should pay off either student loan or mortgage debt for every working individual who pays taxes. Why? We have been screwed with no lube over the last 8 years and paying for it now.

My response: Ditto my response above, plus I don't understand your reasoning about why "the government" (i.e. my tax dollars) should pay off your student loans or mortgage debt. "Because we've been screwed?" What does that mean? How have you been screwed? Because the stock market fell? Because you lost your job? That SUCKS, but SHIT HAPPENS.

I am so sick of people running to "The Government" every time something seems hard or sad or unfair. Americans used to fix their OWN problems - individuals, private enterprises, charities, churches - people used to suck it up and come up with innovative solutions and persevere and help others when the going got tough. Not run to Daddy Government and ask for a handout.

Besides which, what should the government do in your opinion with all the folks who don't have mortgages or student loans? They are the people really getting "screwed with no lube."

So there's my rant. Happy Friday.

Sick of Financial Prince Charming Myth

Could we please, pretty please, finally retire the ridiculous, damaging, unrealistic, gag-inducing fairy tale ending that pervades every single fun, popular and "relatable" female main character in most every movie and book and sitcom of our time?

I am so freaking sick of women being financially rescued by men at the end of every (fictional) story. These days the media has caught on to the "trend" and has started portraying women as somewhat independent and more or less self-sufficient - or at least really sassy. But of course they all still live in unrealistic luxury digs (think the apartments on Friends) and somehow manage to be constanty buying designer clothes and eating out and drinking what can only be $12 cocktails (Carrie on Sex in the City, anyone?).

And naturally there is rarely any mention of credit card debt or not being able to afford something or budgets or any of the other every-day worries of normal human beings.

OK, I know it's entertainment. I'm not expecting reality - that would be boring. And depressing. But let's just say I share the feelings of MP Dunleavy in her most recent column (warning: spoiler alert of Confessions of a Shopoholic):

So, OK, she gets herself out of debt.

But then, dear reader, then what happens? You'd think they could dispense with the fairy-tale ending. But nooooo. Women can't be self-sufficient, smart or enterprising for too long. They still, in 2009, need to be rescued by some guy with a British accent, a Prada suit and a mammoth inheritance.

Egad.

And as if the arrival of Prince Prada wasn't enough of a disservice to women, many of whom struggle against the myth that they don't have to be in charge of their money or their lives, the movie lands one final sledgehammer blow on the idea of female financial independence:

As Becky is kissing Luke in front of some high-end store, we see one greedy little eyeball turning toward the display window to ogle a pair of ankle boots.

And then she winks, as if to say, "Baby, I'll be back!"...the more undermining message still stands: Spend and ye shall be rescued. Let's all sit back and wait for that to happen.

Relief - And a Three Day Weekend

So I know I sounded pretty overwhelmed in my recent post Drowning - and I was having a ridiculously bad day when I poured out that rant - but things are looking up!

I closed on the biggest deal of my career yesterday! An $8 million loan. Today was another crazy day jumping through hoops in order to get the thing booked and funded, but it's done!! And I managed not to verbally assault my Borrower's anal and oppressive attorney for yet another (hopefully final) day. It is SUCH a relief. I still can't believe it's actually happened, and I haven't even celebrated or anything.

That one deal exceeds my entire production goal for 2009. And my managers are very excited because it gets us very long way towards our departmental goal, too. Which will relieve a lot of pressure this year as I seek my CFP and build relationships with my existing clients without having to worry about meeting my target.

So I've been exhausted, but the good news is that banks are closed Monday for Presidents' Day, so I have a three day weekend! Plenty of time to relax and recoup. After work today I went to the gym and then came home and took a 2 hour nap. Now I'm blogging and catching up on my recorded TV shows.

This weekend I don't have ANY tenant issues to deal with (knock on wood), and I'm going to catch up on my CFP reading and do the take home midterm for my insurance class. I've also scheduled a tennis lesson, and I may give myself a spa treatment, too. For Valentine's Day -or for closing my deal, or for losing 6 pounds (halfway towards my goal) so far this year. Plenty of justification. :)

What Kind of Raise Should I Get?

I am expecting a 10% raise next month. I would have been happy with that if you asked me a month ago. After all, I work at a bank (not the best performing industry as of late) and I've only been in the industry for 3 years, and I'm still pretty young.

The reason I expect much more than the typical inflationatory increase is that I received a promotion last fall to Assistant Vice President. Allegedly that is supposed to be when you receive the "big bump" in compensation.

I got the raise from "credit specialist" to "credit specialist II" with an 8% bump in pay. But I lost overtime with that promotion to an exempt position, so my take home pay stayed the same.

Nine months later I got promoted to "Banking Officer." I thought that would be a big deal, but apparently it's on the same pay grade as Credit Specialist II, so I only got a 4.5% increase. That was a year ago.

This fall (9 months later) they promoted me to AVP, much to my surprise. I was hoping for that by March 2010 (we all get our reviews each March), but the new President wanted me to have that credibility and was impressed by my performance and attitude. I didn't get the compensation adjustment then though, since it hadn't been a year since my last one. That I should get next month with my annual review.

I hate to seem greedy, but the fact is that you only get promoted to AVP once, and it's not my fault they decided to do it a year or so before what might normally be considered appropriate. In the good years you could expect to see 12%-15% increase with that promotion, from what I've heard. I was hoping for 10% (which would push me over the $60K mark).

But now I feel differently.

First of all, I found out that the assistants get paid around $50K, very generous for our company. Plus they get overtime and an annual bonus. Which means I earn about the same as my assistant.

Secondly, they are taking away my assistant. She's getting fired shortly due to performance issues; but they aren't replacing her. Instead I'll share an assistant with the banking manager. Which is fine - but they are inconveniencing me and saving $55K+ at my expense, so the least they can do is give me a good raise, right?

Third, I have well exceeded expectations since taking on a portfolio of clients of my own last July. My manager is always bragging about me and complimenting me for my bravado and "fearlessness" which is apparently helping me in this new sales role. Plus I'm being given NO direction or guidance since our department has tripled in size and added a new location over the last 4 months. And I know I do a way better job and contribute more than the other two junior lenders (one of whom came on board as a VP) who doubtless get paid a LOT more than I do since one has an MBA and one's been in the biz for a few more years than I have (with little more relevant experience though).

Plus I'm taking my time out to get my CFP!

So now I'm thinking I have to demand a 15% raise if they don't offer it of their own accord. It will bring me to around $63K base salary with the probability of a 20% bonus, based on my performance. Seeing as assistants make over $50K (and that they've hired like 10 people who are WAY more expensive than I am) and because they are relying on me to help train and acclimate all these new people - I think it seems a fair request.

What do you think?

Drowning

The Bad News
1)
This one big deal (the biggest deal of my career) that I have been trying to close at work for 6 weeks now is killing me slowly and frantically, like an onslaught of ants. Or rats. Rats is more accurate. Not quite as many, but they're taking bigger chunks at a time.

2)
My CFP classes - the ones on insurance and retirement benefits - which I must sit through for 3 straight hours two days in a row every single week - are cumulatively pressing down on me more each week, like a cinder block that gets heavier so slowly that you barely notice. I've barely learned anything yet, and we're half way through the 10 week classes. I've done almost none of the reading, have made it through the quizzes only because they are take-home (and we've worked in groups), and tonight I was so distraught I almost skipped class just to go drink by myself.

Did I mention they are 3 hours long with only 1 ten minute break?

3)
My social life/down time is coming in unhealthy jolts. I won't go out at all for 12 days straight, and then I'll find myself taking shots with coworkers on a weekday and ending up too hungover to function properly the following day...with a suspicious and ostentatious scab on one knee like a 9 year old...

4)
My rental properties are functioning, but I am so not on top of things. Today I went to write a letter to one tenant, to give documentation of their payment history (i.e. to remind them of how past due their rent is) only to find out that their lease expires in a month - and they owe a 45 day notice - and neither of us had brought it up.

So I drafted a lease extension today while I talked on the phone to an attorney charging $300 an hour (which I'll charge to my client). After I stuck it in the mail I realized I'd been quoting/charging them a $50/mo late fee when actually their lease stipulates $25/mo. Not that there's any chance of them getting current in the near future anyway.

Yesterday I spent 20 minutes on the phone with an attorney discussing whether or not we should concede to the Borrower's counsel's request to add the word "reasonably" to a default clause in the loan documents. Twenty minutes. Discussing one word. Truth? I don't give a shit. I told him to give them the freaking word and for God's sake please can we get these documents signed???

[As an aside, I almost went to law school. I actually understand and appreciate that the placement of commas and prepositions and words like "materially" and "reasonably" can change the entire nature of a contract. At the same time I think it's incredibly mind-numbing to actually be employed to sit there and read/proofread/craft documents with that kind of precision. They earn every penny of the fees they charge, in my opinion (at least in the case of contract law).]

The Good News
1)
I'm confident that, eventually, this big deal WILL close. Which will mean that in one fell swoop I will have achieved my annual goal for 2009. In addition, I've already received the social and professional capital at the office that's associated with the fact that I brought this deal in and have successfully navigated it with very little input or contributions from my superiors. Which is actually pretty darn ridiculous given my age and experience. I had to hire attorneys on my own, negotiate with the borrower as I saw fit, concede or choose not to with regard to documents with no oversight, inspect the collateral by myself, etc.

Luckily I feel I'm competent to do these things. But I damn sure better get a big raise come review time next month. Given the amount of responsibility they've given me (intentionally or not) and how I've handled it (very well no matter how you slice it).

2)
I am flying through my CFP classes, and my company is paying for them. As long as I put in the requisite 200-300 hours worth of studying prior to the exam in November, I am confident I will pass the exam with flying colors. Except I heard tonight that there's a formula where they only pass 50% of the test takers no matter what...which is outrageous...which I need to look into.

3)
My social life really isn't that out of control. But I'm slacking for sure. I stay up too late, get to work too late, and can rarely stay at the office late due to all my other obligations. Luckily I'm too busy to go out much during the week, or else I'd probably be drinking 4 nights a week. Or 5. I know it sounds bad when you write it down, but if you consider Thurs, Fri, Sat, Tues, and maybe a Sun here and there...

4)
Ugh. My rentals. They've been taking a back seat. They are all rented out, and 3 of the 4 tenants are current on rent. That's all I need to know. The other day one tenant called about a malfunctioning toilet, and I pretended to listen while I proofread loan documents. I called the plumber and had them out there within 4 hours. Of course it took 5 phone calls back and forth with me as the middle-person - I verified the time with the company then called the tenant back to tell him. They called me to say the plumber was on his way, and I called the tenant to let him know. The plumber called me and explained what was wrong, and I sort of absorbed it and gave him my credit card number. $270 down the drain - literally.

FYI, the druggie is still there, still paying in advance. Nobody's complaining though. Hopefully they all made up. I have to miss my local landlords' meetup this month because I have CFP classes, but I think I'll call a few folks and see what they suggest regarding the fact that he admittedly smokes pot. Bottom line, there's not much I can do even if I want to. And I don't really want to do anything anyway...but I now know about this crap (not that anybody can prove I know), so I should make sure that wont' put me in a bad situation down the line, say, if he and his bong set the whole place on fire.

Exciting New Vanguard Feature!

I just discovered a new feature of the Vanguard website which those of you with Vanguard accounts must check out!

I used to get super excited at the beginning of each new month when the performance graphs would be updated (yes, they only update monthly). Each 1st or 2nd I'd log in and the line graph of How Much You've Invested vs How much The Account Is Actually Worth would light up my world (of course this was before the Fall of 2008).

Then they implemented this great "balance trend" chart that IS updated daily and which is conveniently located on the home page. It doesn't show what you put in, but it does track the current balances on your accounts (which you can view independently or all together).

Now they have really outdone themselves. Next to that chart you can now click for "balance trend detail." Oh, the glory. It details month by month the, well, the balance trend details. You can look at any time period and any combination of accounts and see in 5 simple columns:

• Starting balance


• How much you put in or took out


• Market appreciation or depreciation


• Income/Dividends/Gains


• and Ending Balance

I know it paints me as a total nerd that this is the most exciting thing that's happened to me lately. It's actually difficult to pull myself away long enough to even write this blog post.

I now know without a doubt what my net savings rate is. You can't run from that kind of data.

Since January 2005 I have contributed net savings/investments of $34,935 to my Vanguard accounts. The market has depreciated $9,790 (mostly in the last 3 months of course), and I've earned dividends/interest of $3,290. That leaves me with $28,435 as of today.

It's all so clean and neat and user-friendly too! It's so cool because you can see the monthly trends - my account balance starts at $0.00 in January 2005 when I opened my Vanguard accounts and climbs slowly but steadily over the next 50 months.

I'm so happy. And my trusted readers are the only people with whom I can share my exuberance who might actually appreciate it too. Thanks guys!

The Problem With Socialism

Obama has imposed compensation caps on executives at companies receiving "special treasury assistance" - i.e. bailout funds - in the future.

Top executives of those companies will only be allowed to earn $500,000 a year - additional compensation will have to be in the form of company stock which couldn't be sold for several years.

This might make Americans feel better about having to prop up banks with their tax dollars, and realistically this "imposition" is unlikely to end up affecting anybody, but these kinds of sweeping grandstanding government interventions - and Americans' applause of them - is bad bad news my friends.

First of all, if this really stands then how long do you think it will be before those executives quit and go work in the private sector where they can make 10x that or more (like they were doing before)?

Second, there are thousands of employees at these banks who make more than $500K a year who won't be impacted by these restrictions. Are they going to cut everybody's pay?

Third, and most importantly:

"You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it."

Dr. Adrian Rogers, 1931-2005

Now I'm all for there being regulations on how taxpayer dollars are used. But that's why I was against the bailouts in the first place - it's impossible to regulate what is done with TARP money specifically when those companies receive income from multiple sources every day.

I don't want executives to be taking home multimillion dollar bonuses or taking 2 week trips to Vegas or buying new jets when Joe Taxpayer is helping foot the bill. But I also don't want my outrage of those things to inadvertently pave the way for socialism in America.

Tenant Accusations Include Drugs, Violence

Both of my tenants at the older duplex seem like peaceful, relatively responsible people. I have interacted with them both numerous times and feel fairly confident about this assessment.

Each tenant, though, is now accusing his neighbor of being a violent, threatening, drug using nuisance.

Tenant B called last week to complain that Tenant A smokes an inordinate amount of pot. Allegedly this guy smokes pot "all day every day" and that the smell seeps into the adjoining unit. In addition, Tenant B said the pot smoker is erratic and has become increasingly verbally abusive - sometimes unprovoked, sometimes when confronted about the pot smell.

I talked to Tenant B again this weekend when I met him (and his wife) to get the rent money, and he added that the guy goes to sleep at 7pm every night and wakes up banging on the walls and playing music at 6am. He said he wanted to make amends and get along but was cursed at and threatened when he approached the guy - and in front of the pot smoker's young daughter (who doesn't live there). He actually called the police to investigate his rights; the wife is afraid her husband is going to "get jumped;" it's getting to be a real problem.

At this point I've been considering giving the other tenant notice. His lease is on a month-to-month basis, so there's nothing keeping me from simply giving him 45 day notice in light of the complaints - not to mention the illegal activity.

Well today Tenant A called me - the PotHead. PotHead said he was visited by a policeman today and realized that his neighbors had complained and he wanted to know if they'd complained to me. I affirmed that I'd spoken to them and that there had been complaints about his drug use.

Well he launched into a story about how "it all started" when he saw Tenant B sling his wife to the ground in the front yard and scratch her up. He told her he'd call the police if she saw it again, and she begged him not to. He says he hears them fighting all the time and that ever since then Tenant B has been verbally abusive to him and threatening to "kick his ass" unprovoked, etc. He's considered calling the cops but didn't want to be "that guy," blah blah blah.

He admitted to the pot smoking and apologized; said he's from Hawaii and doesn't consider it a big deal. He insisted he doesn't do anything else and doesn't sell it or anything. Then he complained about Tenant B making noise. Oh, and then he added for good measure that Tenant B asked him for some pot once and that he'd seen him shooting cats with a paintball gun on numerous occasions. Said he'd been keeping records for over a month. And then he rounded out the conversation by inviting me over for an inspection to see how "cozy" he'd made the place.

**Sigh**

I told the guy that I am not here to babysit anybody or call the cops on anybody and that I hoped they could learn to get along because nobody likes having bad relationships with his neighbor. I told him the other guy seems willing to make amends and wasn't asking me to get rid of him or threatening to call the cops. I told him I'd heard pretty much the same story on both sides and I hoped none of it was true and that they all seemed like good people, etc.

Good Lord.

My 2008 401k Progress - and Lack Thereof

I just got my year end statement for my 401k, and I thought I'd share with you interested readers the contents.

• I started 2008 with a balance of $5,879.


• Throughout the year I managed to contribute $5,531 (an average of $460 per month).


• My employer kicked in $1,628.

So in a normal year, one would expect that I ended up with roughly $13,000. In fact, with zero market appreciation I would have ended up with exactly $13,038.

But alas, due to the late-year torpedo-like tanking of the stock market (into which the majority of my 401k contributions are delicately placed),

• I ended the year with $9,723.

At least it's more than I started with (which is more than I can say for my Roth IRA). Turns out my 2008 "personal rate of return" was a stellar (37.61%). That's negative thirty eight per cent. Wow.

Here's some more interesting info. My total "life to date" contributions (since mid 2006, including aggregate employer matches of $2,385) have been $12,917. And the current balance, again, is only $9,723.

I'm determined to make the averages look much better by the end of 2009.