Tuesday, November 24, 2009

Trigonometric Life


Our life based on 3 main elements, one is our own health and second is our family and third one is career. These three are tightly integrated and the change of one definitely affect the other. I attended a farewell party in one of my ex workplace, he was in late 50s and decided to retire from work, at the party his 18 years old son also attended. He started speaking about his achievements, how he built the company etc and finally looked at his son and he started literally crying because he didn't know anything about his son, he missed all of his graduations, he didn't know what he like to eat, he didn't know his favorite game, he was very much into work and couldn't spent time for his family. There are something's we can't get back and one of the main one is family especially our kids growth is ineluctable.

So all okay, if we spend more time with family, we can't advance our career, there are many people waiting in line to finish or take care of our job, aren't they? this world is competitive and opportunistic. True but not completely true. Technically, we are all not same in career point of view, we have our own strength and weakness so it is insane to think that your food is in other's hand. We all come from good education background and we can achieve what ever we want to but timing and careful planning is important.

Here are some important things we need to consider for work life balance and how to be an indispensible asset for workplace

  1. Are we updating the skills required to perform our job in effectively? Updating the skills regularly gives an edge to our professional life at same time helps us to finish our job on time.
  1. What is the unique strength of ours and how to show? Each of us has some uniqueness in our ability, that is the one differentiate factor with others. We have to identify that and enhance it at work. This gives an advantage for workplace to use us at right time for right project and we can justify our existence at the work place.
  1. Understanding the context and gives priority to the most important. For example, we are at our kids school for a soccer game, a call from work, from a known person he/she wouldn't call unless there is an emergency then we have to take the call.
  1. As far as i know from my friends experience some times family side he/she gets a sour treatment because he/she missed an important family get together or son's practice etc. I think it is because of our inability to communicate with our family about why we think the work matter is very important than the family get together.

Monday, November 09, 2009

End of Iron Curtain: Start of Free Market… Sort of…

I was 15 years old when Berlin wall dismantled and I was not very keen to follow the events. Those protests eventually ended “socialist” era to make a new way to start free market, capitalist era. But out of curiosity I asked to my dad and other elders that, so the communists going to out of our area also, no more strikes, so my friend’s dad can go back to factories which was closed for years etc…etc. None were provided a clear cut answer and unfortunately communists able to survive in our area, I would say it become stronger in 2 states. After end of iron curtain, communists started thinking about a new perspective of their philosophy, they become capitalist orientated may be lessons learned from modern China which is good for all of us.

20 years later after end of iron curtain, fall of Soviet Union, and free markets, are we well off with this system? Is this world become a better place to live? What are the advantages? Obviously this world become a flat, trade and investment flowing across nations, there is no border for goods movements, new inventions, new products discovered and the role of governments become less but private company’s role become bigger, rich people become richer and poverty rate of some countries were reduced, all are happy, smiling, everything is colorful.

If I stop this post now, definitely I’m looking only the glass half full, there are something missing.
  • Aren’t we putting all eggs into one bucket? For example, India the whole economy depends on 5 richer people, what will happen if they decide to disinvestment from India?
  • Aren’t we polluting our earth faster than before?
  • One cell company controlled almost 4% of GDP of a country. What will happen if they show 4 continues quarter’s loss and decided to lay off people?
  • Do we know how to survive without working for 1-2 years? Are we teaching our kids how to farm a land and make it useful for cultivation?
  • What will happen if the same happening happens in Detroit to all of our other cities?

But there are always some flaws with all the system, the system we have now is excellent one but as long as we all are honest and utilizing the system how it should work then no issues. Go Free Market.

Monday, November 02, 2009

The Hitchhiker's Guide (2) to the Liquidation

Here are the steps to become liquidate in layman terms.

For Starters
Save Money in to saving account -> After it grow 5K -> Move to a money market account -> After MM account Grow 10K -> Move 5K to Mutual funds(step by step) -> After Mutual fund grows 25K -> Move to Stock market (Remember diversify) -> After stocks grows at least 100K -> Invest in real estate

For Pros
Sell second home for gain -> Move 50% to again Mutual funds -> Buy an other home at upcoming places(like Idaho, Montana) full or partial down payment(or internationally) -> When Mutual fund grows some move into stocks -> Sell stocks at 50% gain -> Buy 3rd home some where at North Carolina or Texas -

For Retirees
Sell all home -> buy a home at Big Island -> move all 401K to money market account -> NO MORE LIQUIDATION.

It was easy for me to draw the above map but it is really very hard to progress. The main issue is, we are all prone to unexpected expense. But I believe a solid plan and use of latest technology we can avoid all. I’m a super user of Quicken since 2000, on a single click I can render number of reports and n number of “What if” scenarios. The meticulous planning and not emotionally attached to anything are the key for anything.