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Category Archives: Work

Why Words with Friends should restore your faith in humanity

Over 20 million people are addicted.

The maker of some of the most popular video games on the planet, Zynga, has just made a fortune.  Yesterday, the company — which makes Words with Friends, Farmville, and other games played mostly on Facebook and mobile phones — priced its initial public offering at $10 a share, raising about $1 billion for the company. 

Not a bad day’s work.

But what makes this a big deal, literally, is more than the staggering amount of dough.  When you reflect on just how fragile an economy we have in the U.S.– a system plagued over the last few years by mortgage-backed investment scandals, Bernie Madoff, auto industry bailouts, TARP, and so much more — you realize how many things can go wrong.  It’s more than enough to discourage you.

When so many things can be corrupted, politicized, and made to fail, it’s nice to remind ourselves that the basics of our free market economy still work — despite a global economic downturn.  Zynga created (and acquired, in some cases) products that have such a huge demand, people were willing to part with $1 billion to grab a piece.  Their products are so good they’re addictive: 20 million people have installed Words, and 31 million play Farmville daily.  I’ve seen folks unable to remove themselves from picking crops for hours.  And recently, Alec Baldwin was so engrossed in his Words game, he couldn’t put down his phone during takeoff — an act which got him kicked off the plane in the process.

So my message is simply: have hope.  Even if the economy is rough in your neck of the woods, and corruption and fraud are seemingly everywhere, you can still succeed through basic supply and demand fundamentals.  Make a widget that everybody wants, and you can still profit richly.

That’s the American Dream after all, isn’t it?

 
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Posted by on December 16, 2011 in Random, Thoughts, Work

 

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Not phoning in my resolution this time

A new study is out that confirms a rising trend: This will just take a seven…salmon…(damn you, autocorrect)… This will just take a second —

Texting and driving don’t mix.

Despite widespread awareness of the dangers that distracted driving can cause, and despite horrific viral video campaigns that will make you wish for a real-life “undo” button, drivers continue to text behind the wheel.

The new research, conducted by the National Highway Traffic Safety Administration, shows that the number of people who thumb messages or email from the driver’s seat has risen 50% over the past year.

So why the disconnect between the absolute sheer danger and the real-life behavior?  You might think, as with most tragic events, people erroneously think it can’t happen to them.  But that’s not quite it.  What’s happening, the researchers believe, is that people just seem to think they’re better drivers than everyone else, and they can handle the additional distraction — but the other guy can’t.

“Everyone thinks he or she is an above average driver — it’s all the nuts out there who need educating,” said Russ Rader, a spokesman for the Insurance Institute for Highway Safety

But I’m willing to bet Mitt Romney $10,000 that there’s also some deeper psychological phenomenon at stake, and I hope that will be the next research study the government undertakes.  My hypothesis is that there is some sort of addictive rush that comes from sending and receiving messages. Something chemical in the brain that creates an urge too great to put off, despite intellectually knowing the dangers.  That could explain why so many people support laws banning texting while driving (now illegal in 35 states), yet so many continue to do it.

Some of the other findings from the government study:

  • 90% said that when they are passengers they feel very unsafe if the driver is texting or emailing.
  • In 2010 there were an estimated 3,092 deaths in crashes affected by a wide range of driver distractions.
  • Big majorities of drivers surveyed support bans on hand-held cellphone use and texting while driving — 71 percent and 94 percent, respectively, yet 20% of all drivers and 50% of drivers 21 to 24 years old regularly text or email while driving.

If these numbers aren’t enough to jolt you into changing your behavior, perhaps the video below will. (Fair warning: it’s very difficult to watch.)

And that’s why one of my 2012 New Year’s resolutions is to put the kibosh on cell phone distractions in my car. That means, no texting, no browsing, no Words with Friends.

It can, and it will, wait.

 
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Posted by on December 11, 2011 in Family, Thoughts, Travel, Work

 

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Could the economy be picking up steam?

(originally posted on USAA’s Inside the Mission blog)

Tomorrow is Black Friday, followed next week by Cyber Monday, and judging from the overflowing shopping carts and massive checkout lines I’m seeing around San Antonio, consumers are doing some big-time buying. While some areas of the country remain mired in an economic slump, it certainly appears around these parts that consumer spending is picking up and that can only be good news for the economy.

But don’t take my word for it — look at the research. According to the third annual holiday spending survey commissioned by USAA, more people plan to buy gifts this year compared to last year (96 percent vs. 90 percent). The survey also shows that the number of respondents who plan to create a holiday gift budget has declined over the past three years — from 64 percent in 2009 to 57 percent in 2011.

My colleague, June Walbert, a USAA financial planner, says the survey findings indicate that people may be suffering from “budget fatigue.” But, of course, USAA encourages all shoppers to commit to a budget before hitting the mall this holiday season, so they don’t overspend into debt.

According to the survey, nearly half of this year’s respondents will pay for gifts using a credit card, which is slightly up from 45 percent in 2009. Of the consumers who plan to use a credit card to make holiday purchases, the majority (73 percent) plan to pay off their balance immediately, but the rest will wait a few months, or make only the minimum payment required.

 
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Posted by on November 24, 2011 in Thoughts, Work

 

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What spooks you about finances?

(Originally posted on USAA’s Inside the Mission blog)

At some level, we probably all have fears about finances.  As Halloween approaches, I’m wondering what spooks people the most about money. Are you afraid of looking at your bills each month?  Do you dread talking to your spouse about spending?  Are you worried about what the continued sagging economy means to your family? Here are my top 3 concerns about finances.  What are yours?

  1. Will I have enough for retirement?  Although USAA has a great employee 401k plan, it seems that maintaining even a modest lifestyle in retirement will require more than I could ever realistically sock away.
  2. Will my children have enough saved to go to college?  When each of our kids were born, we started 529 savings plansfor them, but the costs of education continue to skyrocket (maybe that’s why they call it “higher education”?).
  3. Will I need to provide for parents or other family members as well as my own family? I’m officially in the “sandwich generation” – so will caring for aging relatives prevent me from reaching my own financial goals?

While financial fears can be quite real, it’s good to know that USAA has tons of money advice, planning tools and other resources, right here on this site. Use the comment space below to post your own top 3 list, as well as what you do to overcome your fears.

 
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Posted by on October 27, 2011 in Family, Thoughts, Work

 

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Retirement beats college savings

(Originally posted on USAA’s Inside the Mission blog)

Never did I realize the double-whammy of parenthood more so than when my wife and I had twin babies. I’m not talking about the middle-of-the-night feedings or the boxes of diapers that we go through at a lightning pace (I knew I should have bought stock in Pampers!). The real question for us is how to make it work financially. Specifically, given a choice between saving for our retirement or college funds for the kids, which one wins?

As a parent, you want to do everything you can for your kids. My parents showed me the importance of making things better for their children than they were for themselves, through their hard work. College costs are skyrocketing, but we certainly don’t want to deprive our kids of getting the best education possible. Yet we know we’ll have to stop working at some point, and will need a significant amount in savings in order to enjoy even a modest retirement. So how do parents these days balance these two seemingly competing interests?

As Scott Halliwell shows in this video, saving for retirement is more important for most people for three big reasons. Check out the video:

 
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Posted by on October 11, 2011 in Family, Work

 

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