Archive for May, 2009

My First 100 Days

Birthday Cake
Theresa Thompson

Yesterday was Day 100 of this blog.  Since people like to examine the first 100 days of new regimes, I figured that I’d throw out some statistics, just in case you were curious.  I know I was curious, and amazed.  Amazed that anyone would read my stuff.  Here are the numbers:

Number of posts: 67

Number of comments/pingbacks: 94

Number of spam comments: 1,404 (from Askimet)

Number of subscribers: 23 (from Feedburner)

Number of visits: 959 (from Google Analytics)

Number of pageviews: 1,626 (from Google Analytics)

Three months ago, I never would have dreamed that anyone would want to listen to my ramblings.  Well, you’ve proved me wrong.  Maybe I do have an audience.  I also didn’t know how to use Twitter, and some people will probably say that I still don’t know how to tweet.  But I’m trying to get better (I won’t go on Facebook because I’ve been known to break cameras.  One new social medium at a time).  I’d like to thank you for taking the time to visit the Corporate Barbarian, and a special thanks to everyone who’s left a comment.

So please, come back again!  Remember, if you leave a comment, and you’re signed up at CommentLuv, you’ll get a free plug to one of the posts on your blog.  So keep those great comments coming in!  I’ll post some new drivel starting tomorrow.

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10 Best Cities for Job Growth

3D Bar Graph Meeting
lumaxart

Yahoo Real Estate had an article which listed the top 10 cities for job growth. Here’s the list:

  1. Huntsville, Alabama
  2. Albuquerque, New Mexico
  3. Washington, D.C.
  4. Charlottesville, Virginia
  5. Athens, Georgia
  6. Olympia, Washington
  7. Madison, Wisconsin
  8. Austin, Texas
  9. Flagstaff, Arizona
  10. Raleigh, North Carolina

While energy and finance drove job growth in the past, this year’s list projected growth from other avenues:

Today, many cities are relying on government programs, universities and stalwart industries, such as health care, to bolster employment in a weak economy. Those factors appeared frequently when we assembled candidates for our 2009 Best Cities list, which focuses on places that have stable employment plus the talent to create new, well-paying positions. A robust job market makes these cities safe havens during the recession and will give them a head start toward growth when the recovery takes off.

I’m not so sure that I want to hang my potential job growth on government programs.  That’s exactly what’s driving the growth in Huntsville, our nation’s missile-defense hotbed, and D.C., where the government appears to be growing by the minute.  Charlottesville is dependent upon UVA, Norfolk Naval Base, and the U.S. Army’s Intelligence Center.  The state government employs half of Olympia’s workforce.  So that’s four out of the ten that are dependent on the government in one form or another.

What about growth in private sector jobs?  The only cities that talk about private sector growth are Madison (biotech) and Athens (manufacturing).  Sorry, but I wouldn’t call it growth if it’s funded by taxpayer dollars.  I think it’s shortsighted to rely on the government for creating jobs with tax dollars.  There’s an opportunity cost to the private sector in there somewhere.

What do you think?  Do I know what I’m talking about, or am I just a windbag?  Leave a comment (If you’re signed up with CommentLuv, you’ll get a free link back to a post on your blog).

Click here for the original article: Best Cities: It’s All About Jobs

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Un-Broke on ABC

052209-001-seth-green-cribsOver at Consumerist, there’s a video of Seth Green that will appear in the ABC show Un-Broke on Friday night.  It’s a take-off on MTV’s Cribs, and shows Green as he takes us on a tour of his frugal crib.  Here’s the link at Funny or Die: Un-Broke: The Seth Green Cribs Edition

I’ve liked Seth Green ever since he played a young Woody Allen in Radio Days.  He was great as Dr. Evil’s son in the Austin Powers movies, and he’s great on The Family Guy and Robot Chicken.  So, his offering frugal financial advice is icing on the cake.

I’m definitely going to check out Un-Broke, and I hope lots of people do, too.   Especially the ones with money problems.

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America’s Layoff Hot Spots

plant_layoff

Plant Layoffs by James True

Yahoo Real Estate recently listed the top five layoff cities in America.  Here they are, with layoff statistics for the first quarter of 2009:

Detroit - 14,781

Chicago - 13,647

Los Angeles - 10,594

New York - 8,688

Las Vegas - 8,367

That’s a lot of lost jobs in just three months.  Any surprises on that list?  Detroit is a victim of the collapsing automobile market.  The unemployment rate is a nation-high 14%.  The financial bailout has hit Wall Street hard.  California has its own financial crisis.  And with no money to gamble with, people aren’t flocking to Vegas.

Mass layoffs are even more devastating.  They overwhelm the resources that are set up to help them, and put the hurt on the local economy.  I’m sure that there’s a ripple effect to the surrounding suburbs.  It’s no wonder the housing markets have tanked in these areas.

Has your area been hit with mass layoffs?

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For the Love of God, Don’t Just Read the PowerPoint Charts!

100_2577
danorth1

An Invitation to a Meeting

I received an email at work that invited me to attend an overview on a new procedure.  Attached to the email was a copy of the PowerPoint file that would accompany the presentation.  Nice touch, thought I.  I can skim through it beforehand, to see if I have any questions.

Oh, God No!

Had I known that it was an invitation to a BAD presentation, I would have declined.  It wasn’t the first time this has happened, and I’m sure many of you have had the misfortune of being bored to tears as part of a captive audience.

Welcome to My Nightmare!

What was supposed to be a briefing on a new procedure turned into a mind-numbing two-hour marathon of PowerPoint charts, accompanied by the nasal droning of the speaker.  Now, I don’t possess a particularly nice speaking voice, but I can do enough to keep my audience from falling asleep.

Z-Z-Z-Z-Z-Z

What made it worse was that it was a NetMeeting, and the speaker wasn’t in the room.  We had to listen to his disembodied voice over the speakerphone, while he read us the charts.  I kid you not.  He lost the room in the first five minutes.  The only good thing that he did do, emailing the PowerPoint file to us the day before, made his reading all the more unbearable, as I had already skimmed through them.

Adding Insult to Injury

The procedure that he presented wasn’t well thought out, either, leaving questions that he couldn’t answer.  There was a lot of eye-rolling as he gave the standard “I’ll have to get back to you on that” answer.  I mean, I felt for the guy, at least until Hour 2 rolled around.  Fresh out of cyanide pills, I was convinced that training in public speaking should be mandatory for anyone who was in a position to torture an audience.

What He SHOULD Have Done

He should have used the charts as backup for his thoughts - What’s the point of presenting something that we could have read on our own time?  What is this, First Grade?  Be interesting!

He should have required us to read his pitch before the meeting, and then answered our questions - This would have cut the meeting time down considerably, and cut to the more important stuff.

He should have kept the meeting brief - Brevity keeps your audience interested, and wanting more.  They can always contact the speaker for more information.  One place where I worked had an ironclad rule: Meetings shall last no longer than one hour. One of the best restrictions that has ever been imposed.

He should have taken some lessons - They have classes that teach you how to speak.  He should join Toastmasters to avoid torturing another unsuspecting audience.  At least drop the monotone!

Please don’t make the same mistake that this speaker made.  You’ll never know when you’ll be called upon to speak to an audience.  Brush up on your presentation techniques.  Or get ready to hand out toothpicks for their eyelids.

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Barbaric Links: Summer’s Here Edition

Summer Is...
mfrascella

Well, the unofficial start of summer, anyway.  Hope everyone had a nice holiday.  The weather in my neck of the woods was great.  They sure messed up the forecast.  Here are some of the best posts that I read this past week:

Brett at The Art of Manliness highlighted some motivational posters featuring Theodore Roosevelt;

WC Porter at Wise Bread asks: Are you a hammer or a Swiss Army Knife?;

Brad Isaac at Persistence Unlimited gives us lifestyle changes that stick;

Kevin at No Debt Plan created a stop doing list;

Pat at Smart Passive Income wants us to try virtual assistants;

Scott H. Young tells us not to burn our ships;

Steve at Brip Blap bids farewell to New Jersey;

Congratulations to David as The Good Human turned 3 years old last week;

David also tells us how he lives simply at his other blog, Simple.Organized.Life;

Mr. TML at Tough Money Love warns us not to let this financial crisis go to waste;

Five Cent Nickel tells us that stocks are for losers;

Blunt Money tells us that the universe will conspire to achieve what we want;

Jacob at Early Retirement Extreme tells us that the wealthy shall inherit the Earth;

Free Money Finance says that the poor economy is having little impact on him;

Mark Shead at Productivity 501 shows us that doing something new raises your IQ.

Well, this week in the States, Tuesday is like Monday, so if you’re an optimist, it’s a short work week.  Or, if you’re a pessimist, you have 20% less time to get your work done.  If you’re a realist like me, just hang in there,  Friday’s coming.

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Memorial Day

memorial-day-1Hope you all enjoy your day, but let’s remember that it’s not just about beer and hot dogs.

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Repeat After Me: Retirement First, College Second

401K - Perfect Solution !?
mujitra (´・�・)

A recent U.S. News & World Report article recommended the obvious - fund your retirement accounts before you fund your child’s college education.  I agree.  While there are many vehicles to pay for education expenses, you are probably the only source of your retirement savings.

I say probably, because unless you’re a civil servant, or your company is still offering a good old-fashioned pension, your 401(k), IRA, or Roth IRA may be your primary retirement savings.  It’s a pipe dream to think that you can live on your Social Security benefits.  If you put off contributing to your 401(k), you’ll also be missing out on your company’s matching contributions.  This is free money that you do not want to pass up.

Let’s look at an example of a 22 year-old with a $30,000/year salary, contributing 10% to his 401(k), with a company match of 50% of his contribution, or 5%.  We’ll assume he gets a 3% raise each year, and a growth rate of 8% on principal.  We’ll assume he has an epiphany at age 30, and decides to invest in his child’s education for 4 years rather than his own retirement: click here for the Excel file

As you can see in the attached file, the contributions that he didn’t make, plus the company match that he missed out on during the 4 years, total under $25K.  However, when you take compounding into account, he’ll have $238K less in his account at age 62.

That’s almost a quarter of a million bucks that he’s passing up by not funding his 401(k) for just 4 years.  Quite an opportunity cost!  I hope Junior can land a decent job when he graduates.Maybe he’ll become a lawyer.

But, there are other ways to pay for school, without sacrificing your retirement savings:

  • First, tell kids what college costs.  The college they have in mind may be WAY out of your price range.  Plot out a strategy before they have dreams of a 4 year vacation to Sunshine U.
  • See what financial aid you can get from the school.  Another plus: retirement savings is not part of the calculation when determining financial aid needs, so sock it away in your 401(k).  Even with the financial aid, remember to add 10-20% on to college costs if your student is planning to live at the school.
  • There are student loans, scholarships, and grants available for education.  Apply early so that you get first crack at them.

Finally, look in your own backyard.  Students can also live at home and go to state schools to keep costs down.  And don’t dismiss community colleges; if you’re willing to learn, you can learn anywhere.

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Your Company May Profit from Your Death!

Everything corrodes. Everything dies.
e³°°°

Yesterday, I was talking to Buddy, my disgruntled coworker.  In the middle of his diatribe about the evil of large corporations, he asked me if I’d ever heard of Dead Peasants Insurance.  Nope.  Never heard of it.  My curiosity got the best of me, so I decided to do a little research, and share my findings with you.

I found out that your company may be holding a life insurance policy on you that you no nothing about.  These Corporate-Owned Life Insurance (COLI) policies are known as Dead Peasants Insurance or Dead Janitors Insurance, and are taken out against the lives of rank-and-file workers.  As stated in this article, the name was coined in a Winn-Dixie internal document in 1993, when that company took out 36,000 policies against employees without their knowledge or consent.

Companies have always insured their top execs or other key players, whose deaths may cause a true financial strain on the company.  The loss of their expertise justifies having them insured.  But what can justify the insuring of lower-level workers?

Well, the policies taken out against the average Joe have a more sinister purpose: tax-free cash flow that can be used to fund operations or pay executive compensation.

Let’s see how the company benefits from these policies:

  1. Company purchases life insurance policy on the janitor.
  2. Janitor must clean up toxic waste/asbestos/medical waste as part of his daily routine.
  3. Janitor gets sick, dies a slow, painful death.
  4. Company pays out $17 grand to janitor’s widow, while pocketing $100 grand from the policy it held on the janitor’s life.

Let me elaborate: because these are death benefits, the money received by the company is tax free.  They can even use the policies as collateral for tax-free loans.  Nice little racket they have going on.

You may think, “my company would NEVER stoop so low”, and you may be right.  But don’t be naive: Wal-Mart had taken out about 350,000 of these policies between 1993 and 1996 alone, according to this article.

The IRS has tried to crack down on these policies, but the insurance lobby is strong enough to stop these reforms.  I wonder if my company is holding one on me?  Now i know why they think I’m so valuable!  So while my wife may receive death benefits from my employer after I kick the bucket, they’re probably just a fraction of what my employer will receive.  But I’m not worried.  Companies tend to be real sneaky about this tactic.  I won’t know about it anyway, so when the time comes, I’ll Rest In Peace!

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Further reading:

Does your boss want you dead?

How “Dead Peasant” Insurance got its name

Corporate-owned life insurance

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Outsource-Proof Jobs

This article on Yahoo Education listed the best jobs that will not be outsourced overseas.  Let’s take a closer look at these:

Education Administrator, Elementary or Secondary School

Younger students will need live teachers, and live teachers require supervision by administrators.  I guess you could also add live teachers to the list.  A 12% growth is projected through 2016, with an average salary of $82K.  I wonder what the projection is for student enrollment?  I can see this one being impacted by cuts in education funding.  A master’s degree is required.

Physical Therapist

With longer life expectancies and an aging population, I can see why this specialty would be in demand for a long time.  With a 27% growth through 2016, and an average salary greater than $71K, this might be a good option if you want to skip medical school and go for the master’s degree.

Sales Manager

There’s always a need for face-time with a client, despite the growth of the web-based economy.  With a $106K salary, the projected growth of 12% over the next 7 years should be achievable.  You can never have enough good sales people, but it always seems that you have too many bad ones.  A bachelor’s or master’s with an emphasis on marketing is desirable.

Computer and Information Systems Manager

While the IT industry has outsourced lower-level jobs, a 16% growth rate is projected for this higher-level, more complex position.  Technology will increase in the coming years, and this warrants the $113K salary.  You’ll need a bachelor’s or an MBA.

Automotive Service Technician or Mechanic

Well, you can’t work on a car in the States if you’re in India, so I guess this job will be around for a while.  This pays less than the others on the list at $36K, but only requires a certificate in automotive technology.  As Americans look to repair rather than replace, a 14% growth is expected.

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