First of all, Happy New Year everyone!

It is that time of the year again, when everyone talks about new year resolution. So will I, but perhaps you are thinking, “Why did he say ‘Screw New Year Resolution’?”

Well, new year resolution… is just that, new year resolution. Once new year is over, so is the resolution. Oh, yet another demonstration of the short-term mentality that people have these days. Short-term like how people temporarily become nice to their partners for a special day or go on extreme diet to look thin for an occasional event. Now if you are already nice to your partner and become extra nice to them… that’s a different and good story.

At new year’s time, people formulate their new year resolution and carry them out for perhaps, a day, a week, a month… MAYBE couple months. Some people don’t even last a day. Let’s be totally honest because we can see that in people around us and maybe you are one of them. Don’t kid yourself.

Therefore, can we please stop talking about new year resolution? Please? While we are at it, let us forget about birthday resolution, and whatever special day resolution there maybe. If you must wait for these “special” days to make changes, I say you may as well forget it because it will not last. Honestly.

You can start by thinking what you want your life to be.
Envinsion who you want to be.
Think of the legacy you want to leave behind when you die.
Don’t let identities, labels, and egos drive you.
Don’t let fear stops you.
Don’t let the “impossibles” stop you.
Don’t let “what everyone else does” stops you.
Don’t wait for the “special” day to start changing.
Be responsible for yourself.
Start changing NOW.
Stop taking the path of least resistence.
Stay in the moment and make the choices necessary.

It is important to know where you want to go so you will go in the right direction, but do not lost sight of the moment and do not stop paying attention to each step because such attention and awareness of the moment, you have lose yourself.

If you are not already doing what you need or want to do according to your values, it is time to ask why. Why weren’t you already doing it? Why weren’t you already doing it the years before? What is holding you back? Do you know what you want? Do you know your values? Have you figured out your priorities in life?

Screw new year resolution. Now go change yourself for what you want for the rest of your life while staying aware and staying flexible.

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I am spending Christmas days at my sister’s and of course, with my adorable niece. But on the way to East Bay, I was thinking, “Why the F are there so many cars on I-680 North on the 24th? Aren’t people off today? Me loathe traffic! Rar!” It’s gas wasting and time I can definitely better spend. I really feel bad for the people who do this everyday. Anyways, that concludes my rant. Thank you for listening.

Now, I’d like to wish you, your family, your friends a happy and safe holiday. Uh… and also happy no commute day for the people who have the daily commute that which I can barely stand doing once. Everyone, please remember two things:

• Be present with the ones you are with and who you love on the holidays. Your presence is the best present.
• Try not to OVER-indulge, be it food, alcohol, chocolate, excitement, passion, etc. That save the regret afterwards.

I am going to take a break and will post again next in the New Year. It’s been fun and thanks for hanging with me for the year. Peace out!

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When I was closing my housing deal 3 months ago, my mortgage rate was locked at 6.5%. Even as I was closing, the rate was fluctuating quite a bit, so even at that time, I had asked my loan agent the idea of refinancing. She said she will keep her eyes opened for me.

Right before Thanksgiving, she sent me an email telling me it is now a good time to refinance. I would be able to get the rate to drop from 6.5% to 5.625% with a “no closing cost” option. Base on my principle of not being greedy, and as a friend said, “If it puts a smile on your face, just take it,” I decided to go ahead because it will be about 200 dollars saving monthly, even though knowing the rate is likely to change still.

Last couple days, because I wanted an update on the closing process and more importantly, the impact of the fed rate drop, I gave her a call. In the conversation day, I was offered a decrease on the rate for refinance down to 5.375% with her firm covering whatever the fee to change. It sounded almost too good to be true, so I pestered her with some more questions to affirm non-implication of this change. She reaffirmed, but as we should always, I will be careful to read the fine prints once I receive the documents.

Therefore, whether you have been waiting to buy or to refinance, now is a good time to call up your loan agent. It never hurts to ask! I am definitely happy about the rate drop I got.

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Thanks to Rob’s last comment, I received new materials to read and learned of a new individual who is respectable. We always hear about index fund, and people buying funds with Vanguard. Well, John Bogle is the retired CEO of The Vanguard Group and advocate of index fund.

Here is the link to the excellent “Enough” commencement speech by John Bogle, left by the courtesy of Rob.

Here is the book Rob mentioned, Enough: True Measures of Money, Business, and Life (affiliate link), which I will definitely pick up a copy to read.

Besides that, John Bogle also has an informing interview with Bill Moyers. The videos are on YouTube. Here are the links:
John Bogle on Bill Moyers, 9-28-07. I
John Bogle on Bill Moyers, 9-28-07. II
John Bogle on Bill Moyers, 9-28-07. III

But you know the saddest part I found is? It is that these three videos have only about 1000 views each over a year, when someone crying about Britney Spears get hundreds and thousands views in a few days.

Here are some quotes I chose with my side comments on some:

Quotes From Part 1

• We’re a bottom-line society, and we are measuring the wrong bottom-line.
• There is no accountability [from business to the public] and it’s wrong. It’s fundamentally a blight to our society.
• In response to “And we’re talking about some of the most powerful names in the business…. [They're] Respectable citizens, right?”, I’m not sure about that. (Me: LOL)
• Greed has a role in a capitalistic society but not the dominant role.
• You gotta provide good products and services at a fair prices, and that’s the long-term. That’s what businesses do in the long-term.
• Profession is the service to the client before the service to self. (Me: Some people can no longer call themselves professionals by this definition…)
• We became a financial economy, which has overwhelmed the productive economy to the detriment of investors, and the detriment, ultimately, of the society.
• If you didn’t make 129 million dollars last year, you don’t rank among the highest paid 25 hedge fund managers… What is enough here? (Me: A question to ask not just to the hedge fund manager but to all of us.)
• And of course he compared the current U.S. to Rome: We have our own bread and circuses. And they’re a little different than the bread and circuses they had in Rome. But, we surely have our circuses whether it’s sports teams or casino gambling or the lottery in the states. (Me: REALITY TV!!!)
• And, the short term focus ultimately betrays the very values that we have come to be used to in this great nation of ours.

Quotes From Part 2

• It wasn’t that many years ago — maybe a couple of generations ago — that if you wanted something, you saved for it. And when you completed saving for it, you bought it. Imagine that.
• The productive system adds to the value of our economy. And, by and large, the financial system subtracts. And, yet, it’s growing and growing and growing.
• [About the dramatically disproportionate distribution of wealth] You can only have so much of an advantage to those at the top of the pyramid, and so much disadvantage that’s at the bottom of the pyramid, before you start to get some very difficult things going on.
• Ultimately, the system will correct. The bigger the boom, I fear, the bigger the bust. (Me: The way things are going, we’ll probably get a Big-Mac-sized bust.)
• They’ve [money managers] come from eight percent ownership of American business to 74 percent ownership of American business. It’s staggering, over unbelievable change. (Me: I definitely want to ask “What is enough?” to these people.)
• In the first 15 years I was in this business, the average mutual fund held the average stock for seven years. Call that long term investing. Now, the average mutual fund holds the average stock for one year.

Quotes From Part 3

• What we’ve done is have you know, what I call in the book, a pathological mutation of capitalism from that old traditional owners’ capitalism to a new form of capitalism, which is manager’s capitalism. The evidence is quite compelling that today corporations are run in a very important way to maximize the returns of its managers at the expense of its stockholders. It’s the CEOs. (Me: The raise that workers never got, we can only guess where they are.)
• The ironic part of that is they [the workers who contributed] often get laid off — used to be called downsizing. But, of course, in today’s America, it’s called right sizing. (Me: Damn politically correct terms, or should I say “in denials” or “pretentious”. If you have the gut to fire someone, have the gut to say it.) They get laid off. That reduces expenses. That increases earnings and that means the CEO gets more.
• I’m perfectly willing to give a high value, for example, to art and poetry and literature. (Me: I love this guy.) They add value to society. It may not be easy to measure it in a society that measures too much of what’s not important. And not enough of what is important. As the sign in Einstein’s office says, “There are some things that count that can’t be counted. And some things that can be counted that don’t count.”

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On most work days, I eat out with one or two coworkers, and if none, I’d go by myself. It is a habit to enjoy the Mercury News at lunch period. One thing I have noticed in last couple weeks is that advertisement for hybrid vehicles have propped up. I guess they need to increase sales.

Another article I read elsewhere talks about people haven’t abandoned SUVs yet, especially with the drastic drop in gas price. For some, their vehicle conversion is where they switch from a Hummer or gas-mileage-equivalent to a smaller big-car that yields some 18 MPG. So much for the hope that gas price can help to bring about drastic change in human behavior.

The interesting thing is, and it would be most rational, that gas price which is a short-term variable has such great influence on vehicle purchase which is a long-term decision. It would also be rational if people can switch car without the cost of depreciation, but we know that is not true. Gas price changes everyday, we cannot change our cars everyday!

Could the biggest problems we have be such short-term thinking that the majority of people have? Could it be a problem for the fact that majority of the people are only capable of, or only willing to perceive short-term? And maybe they can only see **singly-connected phenomenon**?

This has validity as we are in the situation today because…

Banks and big business were so adament about growing at an ungodly rate that led them to buy into the subprime, CDAs, and what not. (short-term thinking) Thus, they lost sight of what could possibly be the consequence. (missing the long-term)

Middle class and common people bought into the subprime loans as they were so focused on getting that oversized, or dream house of theirs NOW. (short-term thinking) Thus, they lost sight of how they could possibly lose it just as quick, either due to affordability or overlooked future variables. (missing the long-term)

And let’s say some married guy is so focused on growing his career or business, and he spend all his time and energy on getting ahead. To the detriment of long-term, he forgets his health, neglects his wife and children, and who knows what else he gives up.

Maybe it is important to ask and think about, “What is enough for me in the long-term”? And then make your investment, spending, saving decisions with that in mind. Yes? I think so.

Now it is your responsibility to define what is enough in your dictionary.

** Singly-connected phenomenon — the effect of a cause that is only one step away. When I said someone is only capable of seeing singly-connected phenomenon, that person thinks, “I killed you so you are dead”, and he stops there without thinking how my death would effect people I know and my surroundings. Or, the person thinks, “I took your money so you are poorer”, and he stops there without thinking how me being poorer will affect other things. If anyone knows an official term for this, let me know.

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