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401k and Personal Finance Business

Top Ten Mistakes Made by Financial Agents and How to Prevent Them

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The following is a guest post created by Ashley B. Mulvey who writes for financial advisor career advice , her interest blog she uses to share her knowledge to assist people cope with the facets of economic advisory.

Financial Advisers can have great careers and be real assets to their communities, but they can fall prey to avoidable faults. Mistakes 1 through 6 cover ethical concerns and 7 through 10 cover business strategy and personal concerns.

1) Making uninformed choices.
In order to prevent mistakes, be sure to double check proper rates and information about the product(s) you are offering.

2) Fraud
In order to stop fraud, go into your consultations with the attitude that you are going to do what is ideal for the customer whether or not you make the sale.

3) Signing an application with fields left blank.
Make sure that the application is fully filled out before signing it.

4) Asking for a check in the adviser’s name.
This should never be done, because premiums or payments from clients belong to the company under which the adviser is employed and should never be intermingled with the adviser’s personal records.

5) Putting unwanted pressure on the client.
Good salespeople can close a sale without using coercion. Always look out for the client’s best interest.

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Life

Baby is one year old

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Serenity birthday cake
Serenity birthday cake

Quite a few changes lately. The most obvious one, is she likes to talk, which is opposite to her parents (we both don’t talk much). The most common words out of her mouth is “ma ma”, “ba ba” (Chinese words for dad), and more recently something like “done”.

She started to pull up to stand a few months ago, more recently she can move around a table or sofa (where she can finds support). Still, when we put her in the middle of nowhere, she will drop to ground, almost immediately. Maybe we should teach her to work a bit harder 🙂

Learned quite a bit from the past year, some important ones include:
1) Be patient: obviously baby sometimes could be unpredictable, for instance, they cry for no apparent reason sometimes. From my experience, baby cries for reason most of the time, if parents are patient enough, they can find out reason (hungry, want to sleep, baby did not get the thing he/she wants, last but not least got sick).

2) Be happy, don’t worry too much. When I am saying this, I think sometimes I worried too much too. My wife is a typical worried-too-much mom. In recent days she was worried baby’s right eye looks smaller than the left eye, after her eye lid got hit by car door slightly. The doctor did not see any problem during annual exam, and luckily today everything looks normal now, and my wife is happy. BTW, I think my wife spent 10 times effort on baby in last year compared to my effort.

3) Sleep and weight. Baby still prefers be with mommy in the night, she will cry if she cannot see mom and it’s harder for her to fall asleep. This changed a bit in last 2, 3 days as she can fall asleep on her own (not crying for mom all the time).

Weight is a bigger headache, ever since the initial birth weight of 7 lbs (50%), she went as high as 79% in first 2 months, then starts to drop, 35% at 9 month exam, and 23% at one year exam. We probably need to pay more attention on her food and eating habits.

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Life

Fazoli’s

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fazoli's pic

Fazoli’s is fast Italian food restaurant chain. I used to work at a company where there is a nearby Fazoli’s. It’s became my preferred lunch place, after I went there a few times with co-worker (and order Chicken Caesar Sandwich only, because in the beginning I don’t eat pastas, being from China I eat noodles instead).

Today I went there again for lunch, and was very surprised and happy to see a familiar face: a Thai lady who used to work there and I got to know over the years.

Life becomes more interesting and rewarding, when we meet old friends unexpected 🙂

BTW, Fazoli’s menu and utensil got a face lift too, they got rid of the cheap plastic utensils, use the real plate and forks instead. The only thing missing, is I no longer see the old article (1990s) introducing the Fazoli’s as “Italian Food, Fast” concept, maybe they lost it during renovation.

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401k and Personal Finance

Lessons learned from sad 401k story

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WSJ ran an interesting article “Retiring Boomers Find 401(k) Plans Fall Short” over the weekend (link here, if not work please google the article to get it). I felt sorry to read this:

…Gloria Moss has been contributing to a 401(k) since 1985, when she went back to work after having children. Especially after divorcing, she wasn’t able to contribute as much as she wished and when her children finished college, she focused on repaying college loans. She says she lost more than half her savings in the recent financial crisis, then shifted heavily to bonds and missed the stock rebound…

Two things quickly came to my mind:

1) It’s hard for people nearing retirement age to hold on their investment when the market drop like a rock, during the recent financial crisis (Fall 2008 to Spring 2009) I knew I would not hold on to my 401k if I were 20 years older. In order to sleep better at night, they sold their investments at the market low, because they just could not take it any more. I can fully understand the emotion here. For instance, someone used to have $600,000 in his/her retirement account before all this happens, and in financial crisis it dropped to $300,000, the person still prefer to have $300,000 over the potential “nothing left”.

2) The second point, by the same token, people who bailed out at low are unlikely to jump back into market, when the market turns. On the other hand, people who are in the loop (wall street?), and young people are more likely jump back in. The former took the cue from all the government and fed actions, the latter can take more risk because they have more time (to invest and recoup the loss).

Long story short, it seems the boomers got squeezed in this financial crisis. One plus side they have, is for those near retirement age, they can be sure the social security will still be there.

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401k and Personal Finance

Turbo Tax discount and weekend in review

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Turbo Tax Federal discount

It’s tax season again. Here is the Turbo Tax Federal discount available to me. In most cases I think it will also work for others 🙂

Bank of America: 35% off link
Citicards: 35% off link
Scottrade: 30% off
Vanguard (regular customers): 25% off

Weekend review
Signed up the 360iDev iPhone conference in Denver (Sept 11-14 this year).

A few weeks ago I found this article Embed a navigation controller inside a tab bar controller, and it’s very helpful.

Does Apple just become an ordinary company/store? One sign: using “holiday promotion” tactics A LOT.

It seems to me most people are counter-clock wired: I mean, most drive ways, tracks are designed that way so that the traffic goes in counter-clock direction. But occasionally people break the rule: I did this couple times, and I remember once another driver got really mad (honked at me). And yesterday morning I saw people do this in Panera Bread parking lot.

Airplane mode on iPhone: it becomes handy at night (so that I don’t wake up and read the twitter); it saves battery too.

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401k and Personal Finance iPhone app

Some myths on retirement savings

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During the annual benefits enrollment a while ago, I knew health insurance premium would go up quite a bit in 2011. So what can I do to offset that premium increase? Decrease the savings for 401k?

Just kidding. Over the years I have seen a lot of confusions and myths on the 401k savings. For me personally, I started my job without enrolling into the company 401k plan for slightly over a year. When I started to enroll, then came the questions such as saving percentage, and fund choices.

How much should we save in 401k (percentage-wise), should we just save enough to get employer match?
I read this article from Yahoo Finance a while ago 3 Ways to Get Free Money for Retirement, and I recommend it. Ultimately how much to save depends on how much we want to get after retire, and the investment return rate. My iPhone app myNestEgg is trying to get some mystery out of this process. For me personally, I’m now putting 15% of salary into 401k.

Social security, how much can we expect?
Unlike some of the rhetoric on topic, such as “Social Security will go bankrupt”, or “Social Security will not be there when we (gen X) retire”, I do have some faith on this program. I think I can count 30% of the retirement income from social security.

How much should I save?
I feel 70% of the “income ratio”, as shown in my iPhone app myNestEgg, is probably good enough.

Orange_keyboard_clear_2010-08-29

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iPhone app

iOS app plans for year 2011

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It’s that time of the year again, the time for new year’s resolution and planning. The past year has brought interesting addition to our family: our baby girl “Youyou”. On business (or iOS app) side, I joined the iPhone (iOS) developer program in July (paid the $99 annual fee), and released the first app myNestEgg ~ the retirement calculator in middle Sept. The second app collegeFund ~ college savings calculator shortly followed. The results exceeded my expectation, as I released a few updates to fix the problems/add features. Meanwhile, I went to the Voice That Matters – iPhone developer conference (Philadelphia) in Mid Oct. Meeting iPhone developers and learning new things are the main take aways there.

For the new year, I am thinking of two things: 1) Continue to improve the existing apps; 2) Work on an iPad version of retirement savings planner. I don’t have a definite timeline yet, as I still have a day job, but I hope to release the iPad app before the iPad 2 arrives.

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Career Life

Felt blessed: looking back at 2010

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It’s Christmas eve 2010. Baby already fell asleep. Wife is tweaking her new Toshiba R705 laptop, and I was reading some Navigation controller stuff while watching TV (PBS Christmas program, KMOV news).

This year is obviously one of the most significant years in my 13 years stay in this country. In early March, we got a baby girl. Before that I changed job after 15 months stint at a decent size software company. Things did not work out as good as I thought in Oct/Nov 2008 (the middle of financial crisis). The good thing is, after some hard work and luck, I got a new job at local software company, and got to do what like to do.

In July I signed up the Apple iOS developer program, paid the $99 annual fee and became more seriously on iOS app development. I have thought about it and bought Macbook and iPhone 3G back in Jan 2009, but between my old job, our expectation of baby, and my shear inaction, I did not get to finish the Beginning iPhone Development book in 2009. I started fresh again in 2010 (got the new iPhone 3 dev book, for one). Since the birth of baby, I felt more and more the importance of spending time with family. I think iOS app dev gave me a decent shot at this desire. In middle Oct. I went to the city of brotherly love Philadelphia (again, I went there in May with my in-laws), for the Voice that Matter iPhone dev conference. I think I learned quite a few things there, besides technology, there is design and the business of going indie, which both are important to me (being from developer background).

Looking forward, baby is growing much faster than I thought, especially since she started to crawl and stand. She likes my gadgets (iPhone, iPad, and macbook), much more than her own vtech laptop. I hope I can spend more time with her before she grows up.

Categories
Fun

uudaddy got 2nd employee

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This 9-month-old young lady.

Serenity_macbook

Her first endeavor in Xcode

Serenity_first_program

I think she is still a winner although there were 62 compile errors. You know why? Because Youyou tried (I am quoting my 5 and half years old niece).

Categories
iPhone app

myNestEgg v 1.3 released

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This is to fix a show stopper problem in v 1.2, as pointed out by one of the users. The problem happened after a user used the keyboard to input data (dismiss the keyboard by tap background), the app will add a comma to “beginning savings” and “salary”. This causes confusion and mis-calculation down the road.

The problem is fixed now in v 1.3. The user needs to update the app to get the fix. In some cases you may need to re-enter the “beginning savings” and “salary” if those numbers are no longer correct in the app. Please let me know if you have any problem.

I am sorry for the inconvenience it may have caused, and wish all a good holiday.