There should be a test...

Sometimes I learn things that make we want to scream. Other times I learn things which really make me pause to make sure I understand them correctly. Today was one of those days, in the unlikeliest of places. Today after a long week at work, the crew went to the local watering hole which happens to be the Hooters across the street.

Our beer was delivered by someone who was being shadowed by a "Hooters girl in training". It wasn't long before the trainee was in an unoccupied booth pencil in had and head down writing furiously. Intrigued we asked the girl who was the trainer what was going on. "Oh, she's taking her test", she replied. It turns out in order to become a Hooters girl you not only have to pass a test but 5 of them covering various subjects ranging from how to determine if a customer is over intoxicated to "image". There are even take home study guides.

My friends and I have joked there should be a test before people were allowed to have children, use a computer, etc. It's usually shot down as being too much like big brother. Today I learned before a girl can wear orange hot pants, stick out her chest and serve beer, she has to have passed 5 tests. Yay perspective.

The process is in motion

The process has been set in motion, and assuming things work as designed, in a few weeks I will no longer be a Bank of America customer. I came to BoA through no action on my part. I originally had a Community Federal savings account. In fact this account was opened when I was born. Through acquisitions it went from Community Federal, to Boatmens, to Nations Bank, and then finally to Bank of America. 

Now I'm not a BoA hater. It's hard to argue the fact they are pretty much everywhere. In all the time I've been with them I have never paid a fee for my accounts. If you manage your accounts and play by the rules then all is well. If you don't then you will be dinged by some of the highest fees in the industry. 

The real reason I'm transferring out is because their rates for savings deposits are crap and have been for....well ever. I find it sad that the account which can trace its roots back to my first deposit from my piggy bank is about to bite the dust, but it doesn't seem to be a good fit anymore. Anyway, West Community Credit Union is the destination. Decent rates for deposits, no fee checking and with the use of the free co-op network they are pretty much everywhere as well. We will see how well this goes.

Best thing ever...and no brokenness

The man behind the camera is my brother, as far as I know none of us were on recreational pharmaceuticals at the time.

Hurry up...be lazy!

Sweet! I remembered my blog password.....

I don't quite understand why being lazy is so hard for people to understand. If anything the last year should have proven to people that being lazy can and does pay off in the long run. It's also driven home the point that having a loss is psychologically way worse than having a gain over shorter periods. It can also lead to disastrous consequences when you sell for a loss and keep it.

So really the sum of everything for the last year is overly complex highly leveraged situations bad. Stocks can hurt in the short and long(er) runs. A few bonds may not be nearly as bad for you as your financial advisor....I mean mutual fund sales guy....er, same difference...say they are.

So if I were making new year's resolutions the only one I have would be to be even lazier in 2009 than I was in 2008!

So confused....

I'm not sure if this is just jen failing or the couch but it was funny


-- Post From My iPhone

Proof

I bought and wore a suit....at least once.

Not getting a pony

http://blogs.wsj.com/washwire/2008/10/07/amid-deep-losses-congress-examines-401ks/

After everything which has happened the last month the above worries me the most, however some of the comments are kinda funny.

My overall take on the financial events of the last month is the world (Not just U.S.) woke up to the fact that no not everyone is going to get a pony. That is you can't have everything you want just because you want it all at the same time. We are also being reminded that there is no such thing as a high return low risk investment, no matter how much we wish there to be such a beast.

With regards to 401k plans I hope the government realizes that some people make more money than others and as such will have an easier time saving the max in a 401k and IRA. I'd like to see real reform for those plans so if you have a fee laden plan provided by your employer you can opt to go to a different plan provider. However I'd also like people to actually take a look at what their plans are costing them and actually try to assess their risk tolerance and set up an appropriate asset allocation.

Recent studies I have seen place the average mutual fund fee at around 1.3%. That means if you held this fund and it did absolutely nothing, you are guaranteed to lose 1.3% of your money, each year. On a $10,000 that's $130 a year in fees. God help you if you pay a front end load also. You can find good diversified ETFs which charge .07% a year. That's $7 in fees a year on a $10,000 investment.

A fund advisor may say that the fund is manage by real great people who have beaten the market. They better be brilliant because they have to make up for what they are charging you. Also what happens if they lose their touch for a while?

So if you want a pony, save for a pony. Don't try to buy a pony, boat, house, & vaction membership on credit and wonder why it didn't work out.

My recommended reading list
1. Bogle Heads Guide to Investing -- Seriously everything is a cult with me
2. All about Asset Allocation
3. The Four Pillars of Investing