Where Have I Been?

I’m sure many of you are wondering: Where is Brian? Well, I’m still here, working, studying, learning, loving married life, traveling, and working on a variety of business ideas. This blog has certainly had its ups and downs and I appreciate you bearing with me through the light postings. Some thoughts and random musings since my last post in February:

1. A friend of mine at work let me borrow the best book on leadership that I have ever read. It should be a mandatory read for every Officer in the Armed Forces and every manager in every company. The book, called It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy by Michael Abrashoff takes you through the most common fallacies about leadership, and the reasons behind why many organizations (especially bureaucracies) fail to reach their true potential. In addition, Abrashoff gives clear examples of not only the art of leadership and the importance of being yourself, but also the how and why various techniques are effective. After all, leadership is all about getting people to believe in themselves and to internalize shared beliefs in the pursuit of a common goal. A must read.

2. Cameron Schaefer wrote a great post today titled: The Unpursuit of Happiness? The concept is a good one, and a reminder that happiness is often achieved without the help of money and material things. Happiness comes most freely and naturally when you don't pursue it. Although you may have fleeting moments of happiness with money and material things, sustained happiness is often a result of the most simplistic of things. “It is an oft-repeated, but accurate axiom that “things” are not the key to attaining happiness. For those who have traveled the third world, the smiles of men and women who live on less per year than we make in a few days deal a mighty blow to our notions of the good life and what is necessary to attain it.”

3. I’m working on two separate business ideas at the moment that both have promise. Entrepreneurship is a passion of mine and I enjoy working on various things even if they will never amount to anything. I think it is the idea of creating something of value that many people can use that intrigues me the most. Also, I think it is important in any organization to have people that constantly seek to improve the people, systems, and processes that form the foundation of that organization. “It’s the way we’ve always done it” is the worst answer and yet the easiest answer to give. Rules and inefficient processes that don’t make sense and don’t help people are meant to be broken or changed—break and change them carefully, and do so with an entrepreneurial mindset.

Forget the Future and the Past: Learn to Live in the Present

All too often, we tend to overemphasize the unimportant—meaning: Why can’t we just let things go? What is so important about today, tomorrow, work, children, etc, that hinders us from living in the present? Why do Type A personalities tend to live in the future while Type B personalities tend to live in the past? Who, then, really lives in the present? I have a few thoughts on this topic because I lean towards the former. Some advice on how to live in the present:

“What Ever You Are, Be a Good One” – Abraham Lincoln: It is no surprise to me that Lincoln ranks atop most polls as the greatest President of all time. He was a man of conviction and high morals. However, don’t think for a second that he wasn’t constantly tested during his days in office. Nonetheless, he brings up a great point here: Regardless of who you are and what you are doing, you have a choice every day to be the best person you can be. There is an element of contentment that comes along with this statement. Part of living in the present means you may (at least mentally) forego the potential gains of the future or inevitable losses of the past. What has happened before is over—forget it and move on. Why are you letting things in your past prevent you from being the person you want to be today? The same is true of the future: Why are you so focused on the future that you fail to be the person you want to be today? Again, the funny part about this statement is that we typically hope for some crazy transformation in the future, but the reality is that our tomorrow looks surprisingly like our today. Because of this, you need to learn how to find contentment in your life and be the best you can be regardless of what you do—Whatever You Are, Be a Good One.

Success: Although each of us has a different definition of success, I argue that everyone wants to succeed—nobody like to lose—we just have different ways of defining success. In order to better understand how to juggle your busy work schedules along with your family life, I think you must first ask yourself how you define success. Do you work long hours because you are afraid of failure? Or do you work long hours because you need success? These two are vastly different. Are you a better husband or wife depending on the various successes/failures in your life? I think type A people tend to need tangible successes, while type B people tend to prefer implied successes. If you are a high achiever type A’er, try and set short term, mid-term, and long term goals. Within these goals, you must have them for different areas of your life: Spiritually, family life, work, friends, community, etc. You tend to live in the future, so setting goals will help you “feel” the necessary tangible gains. The problem here is when type A’ers reach beyond the attained goal. You must stop, and re-evaluate. You have achieved your goal. Don’t compromise one of your other goals in a different area because you are constantly reaching for more. This will help you define why you are doing the things you are currently doing. Humans have a certain balance among mind, body, and spirit that must be constantly adjusted so we don’t get out of our natural pattern.

Ask Yourself: Why? This is one of the toughest questions to answer and one that I am still working on defining. Why? Why do you do the things you do? Why do you live where you live? Why do you work where you work? Why is work bogging down your life? I have attempted to define this one in my own life and have come to the realization that there is something deep down inside of me that just won’t quit. Also, I am a nerd for new and useful information. I enjoy working with great people and love seeing others succeed just as much as I like it myself. It has nothing to do with awards, slaps in the face, or accepting average. It has everything to do with how I define success and why I do the things I do. I have come to realize that failure and adversity help to breed success and optimism—especially for high achievers. Because of this, something inside me won’t quit. Failure is not an option and success is demanded. Success is no longer a choice, it becomes a way of life.

To recap: How do we focus on living in the present? Be the best you can be every day. Find out what makes you tick and how you define success. Set reasonable goals and constantly re-evaluate them. Ask yourself: Why? If you focus on these areas, you will find a better balance in your life and probably be a better husband/wife/co-worker, etc. More to come on this topic…

Things I'm Thinking About: 2.17.09

Some things I have been thinking about:

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It seems as if the “historical” truths of the stock market have become obsolete. What if we have entered a period where history won’t repeat itself? Would we even know it if we are throwing our money away? Is it possible that the market won’t recover? Will traditional “buy and hold forever” strategies fail to deliver the way they have in the past?

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There is way too much garbage on the internet. Moreover, it is becoming increasingly difficult to find the information you actually want/need. My latest business start-up seeks to address this issue and provide meaningful customized content delivered directly to users.

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Hines Ward played in the Super Bowl with an injury that would have left most people on the sidelines indefinitely. How did he do it? It seems the answer lies in an advanced platelet delivery system where a physician injects healthy cells into an injured area in order to speed recovery. I am considering this in lieu of shoulder surgery. What are the risks? How much does it cost?

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Some fantastic websites you may not know about:

AllMyFaves--Delivers hyperlinks to the most popular content on the Internet

StumbleUpon--Helps bloggers and other junkies looking to increase traffic and find cool websites

Hulu--Internet television. A fantastic site to find any channel or show you can think of.

AirFareWatchdog--Set a departure city and receive updates with the lowest airfares.

Diddit--Check off cool things you have done and find out what others have conquered.

Are You A Leader or A Manager?

1. If you constantly focus on organizational and process driven improvements you are probably a manager.

2. If you would rather focus on improving people who will improve the processes to make your organization better, you are probably a leader.

3. If you succumb easily to higher authority rather than providing thoughtful and intelligent counter arguments you are probably a manager.

4. If you respectfully challenge the status quo and seek to improve not only business productivity but also the wants and needs of people you are probably a leader.

5. If you are a different person depending on the people you are with, you are probably a manager.

6. If people try to emulate your personality, and act differently than they normally would around you, then you are probably a leader.

7. If you would rather make a decision that may make you look good at the cost of potentially hurting someone else in your organization, you are probably a manager.

8. If you would rather take risks and accept personal responsibility if things go badly rather than see a colleague take the fall, you are probably a leader.

9. If you are stuck in the “way we’ve always done it” mentality, you are probably a manager.

10. If you seek continuous organizational improvement and disregard the potential risk of your own career if things fail, you are probably a leader.

11. If you find yourself asking others how they would act in certain situations more often than charging with your own ideas, you are probably a manager.

12. If you find people come to you for advice, ideas, and personal help, and seek these things hoping for an “unbiased” opinion regarding things outside of the workplace, you are probably a
leader.

13. If you would rather tell your boss that someone below you must have screwed up, you are probably a manager.

14. If you would rather tell your boss that you have personally failed and plan to “rethink” the way you have done things in order to help those below you, then you are probably a leader.

15. If you seek sustainment and reactionary type activities rather than development and proactive type activities, you are probably a manager.

16. If you view work as much more than just a “job,” you are probably a leader.

17. If you let undue emotion and stress encapsulate and interfere with your job, you are probably a manager.

18. If you shake things off fairly easily and manage stress and uncertainty behind closed doors, you are probably a leader.

19. If you think you know how to lead people and believe you have a “system” to do so, you are probably a manager.

20. If you continue to develop the way you manage and to develop the way you lead and you realize that different things make different people tick, you are probably a leader.

21. If you view change as a hindrance to getting work done, you are probably a manager.

22. If you view change as a natural organizational process and embrace uncertainty, you are probably a leader.

23. If you punch the clock everyday and constantly check your watch, you are probably a manager.

24. If you would rather send your people home for the night and have to personally stay and finish leftover work, you are probably a leader.

25. If you are very worried about your job, you are probably a manager.

26. If you view your current job as the exact job you are supposed to be doing and seek to learn from your mistakes, you are probably a leader.

I’m sure there are many others that should be added to this list. Let me know if you have other ideas for this list!

Personal Executive Summary

In an attempt to reflect on this past year and then some, I decided to write a personal executive summary after reading a great one by entrepreneur/blogger extraordinaire Ben Casnocha. Here goes in no particular order:

Married the love of my life in Plano, TX. Honeymooned through the Western Caribbean visiting Jamaica, the Cayman Islands, and Cozumel. Wrote 125 blog posts and received hundreds of comments from readers. Read 25 books. Worked on two business start-ups. Witnessed a friend and mentor realize his business dream after waiting for 20+ years. Kept a promise and read the eulogy at my favorite uncle’s funeral. Played hundreds of hours on the guitar. Wrote bits and pieces of 15 songs. Finished 6 songs. Studied for the GMAT. Got pissed off studying for the GMAT. Spent 6 hours assembling a grill. Subscribed to 3 magazines. Connected with God in ways I never had before. Spent countless hours studying Christianity—specifically Protestantism and Catholicism. Watched 4 full seasons of NBC’s Lost. Went white tail deer hunting for the first time in 7 years and shot my first deer. Broke down and bought a Blackberry Bold—amazing machine. Determined Cheer is by far the best laundry detergent on the market. Played in a hockey league in Arizona—I really miss the thrill of competing at the Division I level. Took a 9 day vacation and went fishing, skiing, jet skiing, and relaxing on Sylvan Lake in Minnesota. Wrote thousands of emails. Earned various awards in Contracting—thanks to all of my mentors. Went to Las Vegas 4 times—3 vacations and 1 business trip (with a little vacation built in). Got published by a major publishing firm in a book about student leadership. Spent 11 weeks at various locations for military training. Went home for Christmas for the first time in 2 years. Volunteered for various events throughout the Phoenix area. Realized how much I enjoy both entrepreneurship and teaching. Watched my investment portfolio fall more than 35%. Bought when things were high. Sold when things were low. Didn’t sell when I should have. Didn’t buy when I should have. Continued to invest and realized that it doesn’t really matter because things will come back. Set-up 4 friends with Roth IRA accounts and gave investment advice. Did thousands of push-ups, sit-ups, and crunches. Spent hundreds of hours in the gym. Religiously read 4 blogs of various mentors, friends, and colleagues. Witnessed the best speech on leadership that I’ve ever heard. Discovered the difference between leaders and managers and witnessed both in action. Lived a lot. Laughed a lot. Loved a lot.

I’m sure there are some things I missed. But hopefully 2009 will be just as great!

A Little Secret--Keep Buying!

As a self-certified finance geek, I’ve had the pleasure of receiving various comments, concerns, and frustrations about your portfolios (stocks, bonds, real-estate, etc). No offense to anyone out there, but it amazes me how little faith we have in our decisions. Most of my portfolio is down 35% or more and guess what I’m doing: BUYING! The S&P 500 Index Fund is as low as it’s been since 2003. Most individual stocks are at 52-week lows at least—some are trading at 5-year lows. Current headlines from around the world say it’s true: WE ARE IN RECESSION!!! Guess what: Big deal.

When stocks go down—I buy more. When stocks go up—I smile and continue buying.

The reasons to continue buying are simple: (1) The markets will rebound and those who kept buying will be handsomely rewarded, or (2) The world will end. P.S. God doesn’t care about money and neither will we.

I receive Kiplinger’s Personal Finance magazine every month and really enjoy the content. Editor and Chief Knight Kiplinger made a few comments about our current situation that I definitely agree with:

“A few years from now, we’ll look back on this grim period as one of the greatest buying opportunities of our lifetimes.”

“The hardest thing for an investor to do is to go against the crowd, to keep a cool head when other investors are losing theirs. Perhaps a few years from now, I’ll regret acting on the confidence that I still have in the resilience and ingenuity of the U.S. economy—indeed, the global economy. But in the last 40 years of patient investing, I haven’t been disappointed yet.”

“The minimum horizon for anyone investing in stocks is five years. If your horizon is closer, you should tilt more heavily towards bonds and cash.”

Credit Default Swaps: Weapons of Financial Destruction

In an effort to better understand the financial meltdown that continues to batter both the markets and our economy, I have read a few articles seeking to answer the questions: How and Why? How did we get ourselves into this mess, and why are there no checks and balances to prevent banks and mortgage lenders from making bad decisions.

Fortune Magazine has a great article in its October 13th issue called The $55 Trillion Question. The main point of the article is to educate people on a little known and unregulated market of exotic securities called Credit Default Swaps. Credit Default Swaps have “played a critical role in the unfolding financial crisis by ostensibly providing “insurance” on risky mortgage bonds, they encouraged and enabled reckless behavior during the housing bubble. “If CDS had been taken out of play, companies would’ve said, ‘I can’t get this (risk) off my books,’” says Michael Greenberger, a University of Maryland law professor and former director of trading and markets at the Commodity Futures Trading Commission. “If they couldn’t keep passing the risk down the line, those guys would’ve been stopped in their tracks. The ultimate assurance for issuing all this stuff was, ‘It’s insured.’”

The bottom line is that Credit Default Swaps are simply insurance against bad bets. Banks and mortgage lenders realized the only way it possibly made sense to give money to someone with a large amount of financial risk was to take out an insurance policy against their default. “It’s sort of like I think you’re a bad driver and you’re going to crash your car,” says Greenberger, formerly of the CFTC. “So I go to an insurance company and get collision insurance on your car because I think it’ll crash and I’ll collect on it.” Warren Buffett calls this financial derivative “financial weapons of mass destruction.”

Another part of the problem is that the market for Credit Default Swaps is completely unregulated—anyone can place a bet on whether a bond will fail. The difference between trading CDS and a casino is that when you put $10 on black 22, you’re pretty sure the casino will pay off if you win. A CDS offers no such guarantee. So when all these banks and mortgage lenders move to collect their “winnings” at the same time, the actual money dries up fairly quickly and eventually they are forced to either write off the bad debt or close their doors—or hope for a $700 billion bailout.

Wall-Street continues to show its inability to manage risk and protect legitimate investments—not to mention the ridiculous pay packages for CEOs—even if their companies fail. As a consumer and self-identified “small fish in the big investment game,” I could practically vomit at what’s happened to most American’s investments—including mine. The big players and self-loathing greed infesting Wall-Street continues raking in millions while we suffer in this bloodbath. One of the biggest problems: unregulated financial derivatives called Credit Default Swaps. I have a feeling big changes are on the horizon. Keep buying and don’t sell your investments!

Random Musings (8.30.08)

Politics: Although most of you know I tend to stay away from politics, I have to chime in about the recent Vice President selections. I think both candidates made excellent choices. Obama made a fine choice in Joe Biden, a man with considerable experience in the Senate and extensive dealings with foreign policy and national security. On the Republican side, McCain stepped outside the box in selecting little known & self proclaimed “hockey mom” Sarah Palin. I feel it’s a gutsy move that both solidifies McCain’s move towards conservative Republican beliefs—pro life & gun ownership, while taking Obama’s “Change” campaign head on. No matter which candidate wins in November, this will be a historic election.

Reading:
-Rigged: The True Story of an Ivy League Kid Who Changed the World of Oil, from Wall Street to Dubai
-My Men are My Heroes: The Brad Kasal Story

Studying:
The infamous GMAT is still occupying a significant amount of my time. However, I continue finding better ways to study, as well as some do’s and don’ts I’ve picked up along the way, so I’ll pass them along:

Do:
1. Take a free online test here—this will help you get a feel for where you’re at
2. Order the Manhattan GMAT Review Trifecta: Quant, Verbal, & 800 Real Questions
3. Make flash cards with various ideas/concepts (formulas, tricks, etc)
4. Find others that have taken the test and pick their brains: The Second Lap
5. Identify your weak areas from the full practice test and dig in!

Don’t:
1. Buy the Kaplan books unless you plan to take the “in residence” course—they don’t help
2. Think you are really smart and take the test unprepared—you need to learn the format!
3. Waste your time trying to memorize questions—you must learn concepts
4. Think a low GMAT score is a killer—It will just make your interview and letters of recommendation that much more important

Getting Published: My Experience Contributing a Story

According to statistics, 80% of people believe they “have a book in them.” Meaning—they believe their unique life experiences are interesting enough to write a book. Obviously, the follow-through on that statistic is nowhere near that high, but shows a remarkable trend of how people view themselves nonetheless.

The question I would ask is: How many people have an opportunity to share their unique life experiences? What makes a publisher want to tell your story? I think it’s somewhere between what you’ve done and who you know—which is arguably how everything works. However, if you do get the opportunity, you don’t necessarily have to write the entire story. My advice is: Contribute first and take it from there.

Through a contact last October, I was contacted by publisher Jossey-Bass and asked if I would contribute a story about leadership. I jumped at the opportunity and began formulating what I believe is a common problem for most young leaders: Simply getting started. Moreover, there is a common misconception that a person must be in a position of rank or formal authority in order to be a leader. This is entirely not true.

I decided to use an experience at the Air Force Academy involving a core engineering class since the book would focus on “student leadership.”

Two excerpts:

“The requirements were vague, and all the work had to be completed by the group members alone, with no outside assistance. I decided to step up and make some suggestions, even though I didn’t understand the technical scope of the project.”

“When I first thought about leadership, I imagined a truly dynamic individual who gains respect through actions over time. But in this situation, the professor had not assigned a group leader, and the students didn’t have enough time in their daily schedules to meet on a regular basis and allow a leader to emerge. The group was waiting for someone to lead, so I decided to take the challenge.”

The book, called The Student Leadership Challenge: Five Practices for Exemplary Leaders is available in stores or online.

The Candidates on Taxes

The latest issue of Fortune Magazine has two separate articles, one by John McCain, and the other by Barack Obama. The articles examine the candidates view of the economy, where it’s headed, and what they plan to do (if elected) to get the economy rolling again. Of course the main highlights are taxes, social responsibility, and past/present views related to their individual political parties.

One area that confused me a bit was McCain’s comments to shipyard workers in Jacksonville, Fla. He told Fortune: “I think the fundamentals of the U.S. economy are very strong. We’re still the most innovative, the greatest exporter, the greatest producer.” Really? I think we’re third most innovative behind China and Japan, certainly not the greatest exporter (China?), and definitely not the greatest producer. However, I’d say we are the greatest consumer.

Taxes are another huge issue at hand. Does anyone really understand the candidate’s position? The table below is from taxpolicycenter.org, and seeks to better educate voters on the presidential candidate’s tax proposals:

John McCain:

- Allow first-year deduction of 3 and 5-year equipment, deny interest deductions (expires)
- Reduce maximum corporate tax rate from 35 to 25 percent
- Increase the dependent exemption by 70 percent
- Suspend the federal gas tax (18.4 cents per gallon from this Memorial Day until Labor Day
- Convert R&D credit to 10 percent of wages incurred for R&D, make permanent
- Keep the current rates on dividends and capital gains
- Make permanent all provisions other than the estate tax repeal
- Extend and index 2007 AMT patch, further increase exemption by 5 percent in excess of inflation after 2013 (temporarily)
- Make permanent estate tax with $5 million exemption and 15 percent rate
- Give taxpayers the option of an alternative tax system with two rates and a larger standard deduction and personal exemption
- Eliminate oil and gas loopholes
- Unspecified corporate base broadeners
- Eliminate earmarked projects from the budget, freeze nonmilitary discretionary spending for one year, eliminate programs
- Replace exclusion from income for employer sponsored health insurance with refundable credit of $2,500 for individuals and $5,000 for families
- Require a 3/5 majority vote in Congress to raise taxes
- Ban internet and cell phone taxes
- Higher premiums for Medicare prescription drug coverage for single people earning more than $82,000 and couples earning more than $164,000

Barack Obama:

- Refundable Making Work Pay tax credit of 6.2 percent of earnings up to a maximum of $8,100
Refundable Universal Mortgage Credit of 10 percent or mortgage interest for nonitemizers, capped at $800 ($8,000 of interest)
- Eliminate income tax for senior making less than $50,000 per year
- First-time buyers tax credit for new farmers
- Small Business and Microenterprise Initiative tax credit of 20 percent on up to $50,000 of investment in small owner-operated businesses
- Make R&D and renewable enery production tax credit (wind, solar) permanent
- Extend childless EITC phase-in range and increase phaseout threshold, double the phase-in and phase-out rates for childless individuals paying child support, increase EITC phase-in rate to 45 percent for families with three or more children; increase add-on to EITC phase-out threshold for married filers to $5,000
- Make CDCTC refundable and allow low-income families to receive up to a 50 percent credit for child care expenses
- Make CDCTC refundable and allow low-income families to receive up to a 50 percent credit for child care expenses
- Make saver's credit refundable and change to a 50 percent match of the first $1,000 of savings, phases out beginning before $75,000
- Increase Hope credit 100% match rate to $4,000 for college education and make refundable, rename American Opportunity Tax Credit
- Mandate automatic 401(k)s and automatic IRAs
- Increase maximum capital gains rate to 25 percent
- Require information reporting of basis for gains
- Eliminate capital gains taxation of start-up businesses and provide capital gains tax break for landowners selling to beginning family farmers
- Permanently extend marriage penalty relief, adoption credit expansions, 10,15,25, and 28% rates, EITC simplification
- Restore 36 and 39.6% statutory income tax rates, Restore PEP and Pease phaseouts for households making more than $250,000, increase in PEP and Pease threshold
- Extend and index 2007 AMT patch
- Make permanent estate tax with $3.5 million exemption and 45 percent rate
- Give taxpayers the option of pre -filled tax forms to verify, sign, return to IRS
- Eliminate oil and gas loopholes
- Close loopholes in the corporate tax deductibility of CEO pay
- Tax carried interest as ordinary, Increase the highest bracket for capital gains and dividends
- Reallocate multinational tax deductions
- Codify economic substance doctrine
- Create international tax haven watch list
- Other unspecified revenue raising provisions
- Income-related federal tax subsidies for health insurance
- Social Security/payroll taxes: increase the maximum amount of earnings covered by Social Security

I'm Back! An Update from June 11-23

Hello blog readers! Glad to be back! My first update as a married man:

The wedding in Plano, TX was awesome! The reception was held at the Infomart building in Dallas, TX. It was amazing and I can’t thank everyone enough for helping us make so many memories.

Shortly after the wedding, my new wife and I traveled to Galveston, TX to board the Carnival Conquest cruise ship bound for the Western Caribbean. Let me just say, the honeymoon overall was great; however, I’ll give you the good, the bad, and the ugly of some things:

The Good:

Everything about Carnival as a company was first class. The entertainment, plethora of activities, etc was great and made for an enjoyable trip. The staff overall was funny, interesting, and very personable. In addition, the stop in Cozumel, Mexico was my favorite because Carnival has their own pier right in the downtown area. Cozumel was very clean, entertaining (Senor Frogs!), and cheap. $5 t-shirts, hats, etc..

We swam with the dolphins in Cozumel which I highly recommend if you get the chance. In addition, go swim with the stingrays in Grand Cayman. The trip was relatively cheap and a once in a lifetime opportunity to hold and feed stingrays in their natural habitat.

The food at dinner was exceptional and is included in the basic cruise package.

The Bad:

They certainly are master marketers aboard the ship simply because you have nowhere else to go. If you want something, get ready to pay for it. The all inclusive trip is a joke. Expect to spend a lot of money f you plan to do any offshore excursions, drink alcohol, gamble, pictures, etc… In addition, gratuity is included in everything (food, drinks, and daily room service).

The Ugly:

It was sad to hear the stories of many of the workers on the cruise ship. Most of the workers are foreign and we discovered they are paid next to nothing, and operate mainly on tips, so they are very good at “selling” you.

The stop in Jamaica was a little rough—especially their driving skills! We almost had “human hood ornaments” in the taxis because they simply don’t stop for people. Also, they honk their horns constantly. It was a little scary traveling through the streets.

Overall, I would definitely cruise again. If you are like me and need a vacation with numerous activities, a cruise should satisfy your needs. There is something for all ages and 8 days was a perfect amount of time.

My Last Blog Post Until After June 23rd!

With the wedding rapidly approaching (6 days away!), I’ll be shifting my undivided attention to finalizing the wedding plans (luckily my fiancé and her parents are finishing the majority of them!). That being said, this will be my last blog post until the end of June. I have been thinking of a few things lately, reading a few new books, and truly loving life and realizing I’m very blessed. A few highlights and things coming up:

The Wedding. If you haven’t seen our wedding website yet, I recommend you take a look. We have chosen to share some details of our lives with family and friends, so why not for my blog readers? www.danielleandbrian.weddingwindow.com

The Honeymoon. My fiancé and I are taking a cruise for our honeymoon. We are setting sail on the Carnival Conquest bound for the Western Caribbean with stops in Montego Bay, Jamaica, Grand Cayman, and Cozumel, Mexico. I’ll have details for you later, including tips, tricks, and lessons learned.

An Air Force Officer: I haven’t blogged much about life in the Air Force, so I’ll give you a quick update. I really enjoy the Air Force—especially the people and the mission. Everything about active duty is first class and I am extremely happy with my decision to serve our country. Moreover, I enjoy the challenges associated with government Contracting. It seems like I learn something new every day. More to come as my career progresses…

Reading: Along with the books mentioned in last week’s post, I purchased 1776 by David McCullough yesterday. I have wanted to read it for a long time, so I made an “impulse” buy and picked it up in paperback. The book received fantastic reviews, so I’m excited to get started.

What I've Been Doing Lately: 6.1.08

I spent last week at the Air Force Academy watching my fiancé graduate and had the chance to hear a speech by President George W. Bush. I was impressed by his composure, thoughtfulness, charisma, and overall likeability displayed throughout the day (including a fantastic speech to the graduating class). He carried himself in a humble manner, but jumped at the opportunity to “connect” with the cadets in more meaningful ways. Some of the antics included: Chest bumps, Heisman poses, back-to-back, and a cell phone call to one of the graduates mother. In addition, he took the time to shake every graduates hand and saluted most of them as well (1012 cadets).

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On an unrelated note, I saw Keith Urban and Kenny Chesney last night at the University of Phoenix Stadium—Urban is way better live than Chesney by the way. Urban was pure energy, entertainment, and talent while Chesney was more old school country with his cowboy hat, rhythm guitar, and laid back attitude.

*****
Currently Reading:

The Pocket Idiot’s Guide to Being a Groom by Jennifer Lata Rung and Mark Rung
Gods of Tin by James Salter
In A Pit with A Lion On A Snowy Day by Mark Batterson
The Crisis of Islam: Holy War and Unholy Terror by Bernard Lewis

Thinking About:

-The Wedding (13 days!)
-Wondering if my car is about to die because I’m sensing a problem I’ve had before (last time I needed a new transmission…ouch!)
-Trying to decide if I should renew my subscription to Fortune Magazine…It has been a very informative magazine, but I may move on to something a little deeper with more of a global spin (The Economist?)

Buffett on the Economy

The American economy is undoubtedly facing an uphill battle. The slow erosion of the housing market coupled with record oil prices is putting a strain on consumers and their pocket books. Even Warren Buffett is concerned, and expects this "recession" to last a while. However, he is sticking to what he knows best, and that’s to continue buying. He stated yesterday, even “If the world were falling apart I'd still invest in companies.” That’s a pretty strong statement, and a lesson to everyone listening: Keep buying!

Read the full article here

Some Questions to Ask Yourself Before Starting a Business

Just came across a great article by Melanie Lindner at Forbes Magazine that discusses the realities of starting a business. Moreover, it addresses some of the questions entrepreneurs must ask themselves before funding a new business venture. The following is an excerpt:

“The first question you should ask: Do you have a compelling value proposition? This point is forever worth repeating: Great ideas are only great business ideas if you can convince people to pay for your product or service at a price above what it costs you to deliver it. Just because you think the world needs new canine cologne doesn't mean anyone else agrees--or if they do, that they would be willing to pay enough to cover your electric bill.”

I would like to start a business at some point in my life, so I find articles like this very valuable. It seems there is no such thing as “too much advice” when starting a business—although simply “starting” is usually the hang-up.

Click here for the full article

Life After Graduation: Thoughts from an Air Force Academy Graduate One Year Later

I’ve been thinking of writing a post highlighting some “lessons learned/tips & tricks” that I wish I would have known after graduating the Air Force Academy. Even though all AFSCs and Air Force Bases will be a little bit different, the following should give graduating cadets a head-start:

1. Contact your base if you don’t hear from someone by mid-June. You will likely be assigned a sponsor; however, some bases may not get all the information they need about you from the Academy. You will attend Air and Space Basic Course (ASBC) and your AFSC specific training within the first year. Contacting your base will ensure they know about you and get you signed up for these courses. I didn’t want to be “that-guy” who bothered my incoming base, but the reality is that it would have made things easier for both parties.

2. Volunteer early in your career. You’re going to do nothing but get busier as time goes by, so seek volunteer opportunities early in your career. There are an incredible amount of volunteer opportunities if you’re willing to “step-up” and get involved. However, don’t view these opportunities as a way to get a bullet for an OPR or to make yourself look good—do things because you want to do them. Be humble in everything you do and let your performance do the talking. Don’t forget: Someone is always watching you!

3. Be humble in person but blunt on paper. The caveat to remaining humble is that nobody cares about your career more than you do, so be sure to take no prisoners when writing your OPR. The new OPR gives you roughly ten bullet statements that should tell a story about you for an entire year, so make sure there is significant impact in your bullets! Writing an OPR is an art and can be mind numbing, so be sure and have your mentors/peers help you.

4. Keep a running log of every important thing you’ve done throughout the year. Maintain an easy to locate document on your computer at work that includes the Who, What, When, Where, and Why of everything you’ve done throughout the year. It is challenging enough to write an OPR, and even more challenging if you don’t remember what you’ve done for the past year.

5. Fully fund your Roth IRA before putting any money into the Thrift Savings Plan (TSP). I’m not sure what the confusion is between these investment vehicles, but most people don’t understand the difference. A passively managed low cost index fund is still significantly better than an actively managed mutual fund in the long run. Put as much money as you can into a Roth IRA by dollar-cost averaging in low-cost index funds—NOT mutual funds! The military TSP operates much like a Traditional IRA because it offers tax-deferred contributions—meaning you’ll pay taxes on your money when you want it later in life. You will pay taxes on your Roth IRA contributions going in, but your money will grow tax free. There are situations (if you deploy) where the TSP can be better, so be sure to review your options. In addition, if the military TSP ever begins “matching” contributions, re-visit the idea at that time.

6. Have a basic understanding of ALL costs associated with buying a home. The basic rule of thumb says not to buy a home unless you plan to live there for five years or more. Obviously, there are instances where it works out, but make sure you understand all costs/risks. In addition, the housing market will rise and fall, so make sure you know what you can afford. Some things to consider: mortgage rate, taxes, utilities, HOA fees or other expenses, etc. If you do choose to buy a home, get a fixed-rate mortgage—NOT an adjustable-rate mortgage (ARM). With the recent credit crunch, there are numerous horror stories of people that used builder incentives to get great mortgage rates (ARMs) without fully understanding the risk-reward trade-off.

7. You graduated, but you didn't retire. Don’t get me wrong here, graduation day is/was/will be one of the greatest days of your life, so enjoy it! However, the mentality of some recent graduates is that you’ve conquered the world and have earned retirement. The bottom line is that you start over, which is good for some people and bad for some people. If you’ve had a less than stellar cadet career, you get a clean slate. If you did very well as a cadet, nobody cares— you still have to perform every day. Use your free time to study for graduate school exams. Get involved in your local community. Try new things that may interest you. You’ve had your whole life programmed for four years, so it may take some time to adjust to your new surroundings. In addition, you may have to “re-learn” things about yourself and what you truly like to do in your free time.

8. Continue networking with your fellow graduates/alumni. There are some amazing graduates doing some amazing things both in and out of the military. The best part is that they are usually more than willing to help you out if you take the initiative. Seek them out as mentors and ask for their advice—don’t forget it’s still a “who you know” world.

Final thoughts: The Air Force Academy has prepared you in ways you won’t fully understand or appreciate until you leave. Take advantage of this. Be your own person and figure out your own leadership style, not somebody else's. Whatever you are, be a good one. Feel free to contact me if you have additional questions at: breese27(at)yahoo.com or find me on my blog at http://www.brianreeseblogs.com/

Four Things to do In Your 20's: A Response to Cameron Schaefer

The following is my response to Cameron Schaefer as he has asked for input towards his future post called: 20 Things to Do in Your 20’s. Why my top four you might ask? Why four and not five? Why four and not ten? Because I don’t want you to make this your top 10 list. Use the following in your own way, and not simply the “secret to life” top 10 list…

1. Read 2-3 Books per Month (or more). Once you’re finished with college and all those “mandatory” reads, pick up some books that may actually interest you. For me, these books are usually about investing, religion, or psychology. Ben Casnocha calls this exposing yourself to as much randomness as possible—I think he has a great point here. Read a book nobody is reading. Listen to a lecture that most people are sleeping through. Ask questions, dig deeper, and take notes. I find I don’t remember much if I don’t write it down. Cameron Schaefer wrote a great post called: 7 Ways to Remember What You Read.

2. Actively Seek Mentors. For some reason there seems to be confusion regarding what constitutes a mentor. I define a mentor as anyone who can potentially add value to something. A friend can be a mentor. A relative can be a mentor. Moreover, the best mentors I’ve had are the people that challenge you to be better and constantly seek to improve you as the mentee. Find people you can bounce ideas off of. I have mentors that I talk business with. I have mentors that I talk about Christianity and religion with. I have mentors at work, etc, etc. Just remember: People are always willing to help you and nobody reaches their full potential alone.

3. Study the “Big 3”: Religion (or spirituality), Your Marriage, and Your Finances. If you don’t have a very good grasp of all of these, you will never enjoy the fullness of life and all that it has in store for you. Find yourself spiritually and seek the will of God in everything you do. If you aren’t spiritual or you’re not religious (or both), you will never completely find happiness and contentment in your life. You may find fleeting moments, but you won’t be able to sustain them for any period of time.

a. Learn to love your spouse unconditionally and constantly work to be a better husband/wife. I am currently reading just about anything I can get my hands on related to improving your marriage and starting out right. Will there be growing pains? Of course. But how many people make a life changing decision without proper preparation? Unfortunately, way to many because ½ end in divorce. Don’t be a statistic!

b. If you don’t understand the world of finance and investing, start reading right now! I have a few books to get you started: A Random Walk Down Wall-Street by Burton Malkiel and The Little Book of Common Sense Investing by John Bogle. Unfortunately, personal finance and investing are not mandatory subjects in public schools, so you must be the one to realize the importance of learning these topics! Do you know how to retire with more than $1,000,000.00? Is it better for you to lease a new car, buy a new car, or buy a used car? When you buy a home, should you get a fixed-rate mortgage or an adjustable rate mortgage? Depending on your tax bracket, what is the best investment strategy for you? If you can’t answer all of these questions with ease, you probably need to brush up a bit. Read. Read. Read.

4. “Whatever You Are Be A Good One” – Abraham Lincoln. My favorite quote by one of the greatest Presidents of all time. Don’t complain about the situation you are in—find ways to make it better. No matter what you are doing, be the very best and take pride in what you do and who you are. Look at every situation as if it is the exact situation you are supposed to be in. Subscribe to the mantra: “Live for Today, Dream for Tomorrow.” Be the best at what you are today, but always work to improve and seek opportunities when they present themselves. Don’t ever forget people are always watching you. Don't live your life with regrets.

What I'm Doing 5.1.08

In an effort to both better understand my fiancé and simply to learn more about Christianity, I am reading two books on Catholicism. I have to admit that I’ve been a bit ignorant when it comes to the majority of Catholic beliefs. Although I don’t fully understand everything (nor agree with everything), it has been fun searching passages and interpreting the Bible in different ways.

Also, as our wedding day rapidly approaches (June 14th), my fiancé and I have been diligently reading “Before You Say: I Do,” by H. Norman Wright. We each have a copy, so we’ve been exchanging ideas over the phone. We both feel it is important to discuss a lot of marital issues and challenges before they actually happen. Most people do lots of homework before making important decisions, so why not do the same when preparing for marriage?

Currently Reading:
Rome Sweet Home by Scott and Kimberly Hahn

Catholicism For Dummies by John Trigilio and Kenneth Brighenti

Before You Say “I Do” by H. Norman Wright

Bringing Down the House by Ben Mezrich

Thinking About:
Importance of Mental Preparation

How Inflation Changes Savings Rules

De-Stress in Mere Minutes

The Myth of More

Laughing About:
Darwin Awards Anyone?

Warren Buffett Speaks...

When Warren Buffett speaks, people listen. With Wall Street in panic mode along with the housing and credit markets, it’s always nice to get feedback from the Oracle of Omaha. The following are excerpts from the Fortune Magazine article titled: "What Warren Thinks…"

"Q: How do you get your ideas?

A: I just read. I read all day. I mean, we put $500 million in PetroChina. All I did was read the annual report. (Editor’s note: Berkshire purchased the shares five years ago and sold them in 2007 for $4 billion.

Q: What advice would you give someone who is not professional investor? Where should they put their money?

A: Well, if they’re not going to be an active investor—and very few should try to do that—then they should just stay with index funds. Any low-cost index fund. And they should buy it over time. They’re not going to be able to pick the right price and the right time. What they want to do is avoid the wrong price and wrong stock. You just make sure you own a piece of American business, and you don’t buy all at one time.

Q: By your rule, now seems like a good time to be greedy. People are pretty fearful.

A: You’re right. They are going in that direction. That’s why stocks are cheaper. Stocks are a better buy today than they were a year ago. Or three years ago."

Everything Buffett says here is so simple and all encompassing—now just implement the advice: Read as much as you can; dollar cost average in a low-cost index fund; keep buying, keep buying, keep buying…

A Great Resource: RealSimple.com

If you have never heard of Real Simple, I suggest you click the link—especially if you travel. My Mom reads the magazine called Real Simple—a magazine that highlights the good, the bad, and the ugly of basically everything. A special issue called Real Simple Travel lists the best places to travel depending on the time of year; it tells you what types of clothes to wear, the best places to eat, where to stay, and endless tips and tricks to make the most of your vacations.

The part of the magazine that caught my attention is a section called: The Travelers Handbook. It features advice from A-Z such as: awesome travel websites, the best way to write a postcard, how to sleep better on an airplane, as well as other mind grenades that should keep you busy.

For instance, do you know when you should hand out tips?

“Anna Post, Emily Post’s great-great-granddaughter and the spokesperson for the Emily Post Institute, shares, well, tips on what to hand out when.

Doorman: $2 for help with bags, $1 for a hailed cab.

Taxi driver: 10 to 15 percent. Add an extra dollar or two if he/she helps with the bags.

Airport porter: Most porters charge $2 for the first bag. If they don’t, you should pay at least that. Add a dollar or two for good service.

Other airport staff (ticket agents, flight attendants): Don’t tip them. It can be tempting to slip an agent a $20 bill in the hopes that you’ll get better treatment out of the deal, but that comes off as smarmy.

Bellhop: $2 for the first bag, $1 a bag after that.

Housekeeping: $2 to $5 a day. Leave this tip daily, as you often have a different person cleaning your room each day. (Leave a note so the housekeeper knows the money is for her.)

Concierge: $5 to $10 every time she helps you with something above and beyond the job description, like scoring hard-to-get tickets to a show. For guidelines on tipping in other countries, click here”

Should You Settle?

The March edition of The Atlantic has an article that legitimately made me upset because I think it highlights some of the problems with society’s view of marriage. The article, written by Lori Gottlieb titled Marry Him—The case for settling for Mr. Good Enough undoubtedly offers an “out of the box” perspective of marriage, but principally wrong (in my opinion), and out of touch with reality nonetheless.

She does; however, offer a fair perspective of some of the challenges facing women these days—especially the unmarried 30 something crowd:

“To the outside world, of course, we still call ourselves feminists and insist—vehemently, even—that we’re independent and self-sufficient and don’t believe in any of that damsel-in-distress stuff, but in reality, we aren’t fish who can do without a bicycle, we’re women who want a traditional family. And despite growing up in an era when the centuries-old mantra to get married young was finally (and, it seemed, refreshingly) replaced by encouragement to postpone that milestone in pursuit of high ideals (education! career! but also true love!), every woman I know—no matter how successful and ambitious, how financially and emotionally secure—feels panic, occasionally coupled with desperation, if she hits 30 and finds herself unmarried...all I can say is, if you say you’re not worried, either you’re in denial or you’re lying.”

I don’t disagree with her thoughts here; however, I have a huge issue with her solution. She says: “My advice is this: Settle! That’s right. Don’t worry about passion or intense connection.” Is this the criteria people use for marriage? To find someone good enough that you may kinda like and decide to marry them? Do you think there is a connection between this type of attitude towards marriage and the fact that 50% of them end in divorce?

Of course the advice to settle arrives from a woman who conceived a child with donor sperm because she hadn’t found Mr. Right. WHAT?! Is this even allowed? The boy now has the pleasure of growing up fatherless because the idea of motherhood couldn’t wait for true love…

I guess at a time when ideals and principles seem to be at an all time low, it’s articles like this that truly make my blood boil…

More of my thoughts on marriage:
The Secret Ingredient for a Successful Marriage
Marriage and Personal Finance: Yes, They Are Related!
Why You Should Get Married

Our Fascination with "Free"

I came across an interesting article today written by Paul J. Lim for Yahoo Finance. The article, called “Why you’re a big sucker,” captures a growing problem in society: Spending more when we planned to spend less.

The question, then, is why do we spend more than we want to? Dan Ariely, a noted behavioral economist says he’s found the answer: Our fascination with “free” offers. Marketing 101 at its finest—appealing to or tricking the senses in order for people to spend more money. Dan Ariely helps to explain part of the problem in the following excerpt:

“Question: How else do we act against our best interests?

A. By comparing prices on similar items.

Question: Wait, I thought that was smart to do?

A. It is, but only if you compare everything with everything. If you just compare items near one another, you open yourself up to being influenced. When you open a menu at a restaurant, you may not realize that the prices you see affect what you're willing to pay. If the most expensive entrée is $45, you might decide $30 is an acceptable price. Should the restaurant add a $60 dish, you may be willing to pay $45. The same issue comes up when shopping for real estate. Letting a broker show you a house above the top of your range can be costly.

Question: So how do we overcome irrationality?

A. There's no cure-all. But when I see the word free, I now ask myself, "What's the seller trying to do here?" Also, it sounds strange, but try not to look at price, not at first. Decide what you want and what you're willing to pay without being influenced by outside factors.”

I’ve noticed major department stores doing this more and more. Raising the sticker price well above what someone may be willing to pay, but advertising the entire store at 50%-75% off. This marketing act tricks the senses into believing we are getting a great deal—but are we?

Although it may be a stretch to suggest completely ignoring the sticker price, knowing what you’re willing to pay and setting your limits will surely save you money in the long run...

Free Tax Software for Military Members

If you are a military member looking for free tax software, then look no further. Militaryonesource.com offers free interactive software to complete your taxes through H&R Block. All you have to do is create a username and password on the Military OneSource Web site, and you will be redirected to the H&R Block tax center.

The software is incredibly easy to use, and allows you to e-file both your federal and state tax returns. It took about one hour to complete my entire tax return for both federal and state.

*TaxCut Basic Online® by H&R Block is free to active duty, National Guard, and Reserve service members and their families. To access this free service provided by the Department of Defense, you must be registered and logged in to the Military OneSource Web site.

What I've Been Doing Lately (3.25.08)

Las Vegas:

I just returned from a weekend in Las Vegas with my fiance! Incredible as usual (my third trip to Vegas)—especially if you like to gamble! Endless leisurely activities: Casinos, shows, pools, food, drinks, etc. Anything you’ve ever wanted to do you can do in Vegas. I highly recommend going if you haven’t already. I’ve stayed at Treasure Island, Tropicana, and now Mandalay Bay. All have their differing qualities, but all nice places nonetheless. Treasure Island is more of a family type atmosphere—meaning more activities for children. Tropicana is a throwback to the 1970’s era—decent overall, but not very extravagant. Mandalay Bay is the nicest casino/hotel out of the three. It is definitely classier and caters to the high rollers. In addition, I think it has the best pool of any casino/hotel on the Strip. The only catch is you’ll likely pay more money to stay, and its location is not the best (end of the Strip). Flights are cheap, and the drive from Phoenix is dangerously close!

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Camping:

Yes, it’s true. I am beginning my search for some decent camping/hiking equipment. With all the great mountainous areas and hiking trails around Arizona, I figure it’s about time to get outdoors. Please let me know if you have recommendations for equipment—REI, eBay, etc.

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Reading:

-The Five People You Meet in Heaven by Mitch Albom
-The Bible by God
-Where Have All the Leaders Gone by Lee Iacocca

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Buying:

I purchased a 4GB iPod yesterday from Target. I’ll let you know more details as I begin to add music. I was desperately in need of another one to occupy my workout hours. I’ve been using one of the original iPod’s and the software has been acting up—freezing, etc. Hopefully this one will work better!

How to Make Yourself More Interesting

The struggle to break the day to day routine of living within your comfort zone is something you can only accomplish through conscious undertaking. It is simply too easy to wake up everyday to the beat of the same drum. In fact, it’s human nature—we love our routine. I find myself struggling from this “disease” after four years of having my days and nights planned well in advance—day after day after day. However, I’m working to break the old routine and try different activities. In fact, I think stepping outside your comfort zone will make you a much more interesting person. In addition, you may find some things about yourself that you never knew before.

I have some very interesting people in my life, and I’ve taken some time to think deeply about what makes them interesting. Moreover, some of what you read is from personal experience that I’ve picked up along the way:

1. Read, Read, Read. Ok, I realize this is not a new idea. However, there is a bit of a twist. Read both fiction and non-fiction. Read magazines. Read your friend’s blogs. Read random people’s blogs that have taken the time to comment—they probably have something interesting to say. More importantly, read both for purpose and for pleasure. If you get stuck in academia land too much—meaning you are always marking a book, taking notes, etc, you never really allow yourself to take a new adventure. Getting lost in a good fiction novel can help spark many quality thoughts as well. A special thanks to my brother the Doc—Jared Reese—for suggesting I expand my reading selections. Cameron Schaefer wrote an excellent post related to reading called 7 Ways to Remember What You Read.

2. Learn to Develop Yourself Socially and Don’t Be Afraid to Take Risks. My good friend Andrew Ramsey is one of the most interesting people I know because he takes risks and is always seeking new adventures. His laundry list of cool activities include: Photography, traveling, hiking, camping, an African safari, eating organic foods, wine tastings, etc. Moreover, he has rightfully earned the nickname “The Renaissance Man” because he can literally talk to anyone about anything at anytime of the day no matter what. This is no a joke. He steps outside what an average person would deem “comfortable” and shows a genuine interest in other people. Instead of looking at someone as “weird,” he’ll ask them a deeper question like “That’s awesome, how did you get into that.” His social skills along with his willingness to take risks and be different make him the top dog on my list of “most interesting friends.”

3. Create a Network of Friends for Active Discussions. There are many different ways to attack this idea. The best suggestion I can offer is to have a focus area with friends for different topics. Have friends for business. Have friends to discuss things of a religious or spiritual nature. Have friends that just want to drink beer and watch sports. Find out what you like and don’t like. Having peer mentors can be a very powerful thing. After you have your categories, don’t be afraid to mix and match—discussions get interesting as your personal relationships grow.

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On a related note:
An area I’ve been thinking about deals with therapy. Ben Casnocha writes—Should Everyone Attend Therapy? This brings up an interesting argument in your personal development: Why not have a completely unbiased relationship with a professional? How much growth could come from interacting with someone on a purely professional level with no strings attached?