Here are some more assorted links from my recent online wanderings…

Lessons We Should Have Learned before the Bear Market Arrived
This is a presentation by Jack Bogle, founder of The Vanguard Group, back in April 2001 after the last big stock market drop. There is a lot of stuff in there, so I would treat it as a mini-investing book and bookmark it to digest it all over time.

OpenYale Course on Financial Markets
You can view the lectures and materials for the “Financial Markets” class taught by Professor Robert Shiller (possibly best know for his book Irrational Exuberance) at Yale University.

The course strives to offer understanding of the theory of finance and its relation to the history, strengths and imperfections of such institutions as banking, insurance, securities, futures, and other derivatives markets, and the future of these institutions over the next century.

Fresh Start for a New Year? Let’s Begin in the Kitchen
From the Minimalist blog of the NY Times, this article is about updating and refreshing your pantry items so that you can more easily cook better food at home. He lists things to throw out, and suggests substitutes to replace them with. Reminded me of when my mom used to make chicken stock from scratch and freeze them in old margarine containers. I should start doing that.

52 ways to make extra money
Prime Time Money did a guest post on the MSN SmartSpending Blog that compiled 52 ways to make some extra money. You’ve probably heard of most the part-time jobs before, but perhaps you’ll pick up something new.

Awesomest Compilation of Weird & Crazy Jobs Ever
Something more on the fun end of the money-making spectrum. Some of y’all have had some funky jobs!

Sorry for the lack of posting, I am actually at a conference in Park City, Utah this week. Add in that fact that my computer is now giving me the blue-screen-of-death, and I’ve been somewhat disabled. Looks like it’s time for a fresh Windows install. The good thing is that I’ve been able to tune out all the Obama stimulus talk until they finally pass something, and instead catch up on a bunch of financial books and magazines that I’ve been meaning to read.

While flipping through a Money magazine, I ran across a often-repeated piece of advice about buying an HDTV: that the size of the TV you should buy is determined by how far you plan on sitting from it, not just bigger is better:

Which always begs the question – why not just put your couch closer to your TV? 🙂 You could buy a much smaller set and save hundreds of dollars. I guess it’s just another by-product of buying a house that’s too big. You need more furniture to fill it, and now also a bigger TV to see from across the room.

In addition, doctors now say that sitting too close to the TV is not bad for your eyes. Well, I guess it can’t be worse than most of us sitting inches away from an LCD screen all day long already.

I wasted last night trying to deal with a pretty nasty virus/spyware/malware/trojan or whatever they are calling it these days on my computer. I watched it shut down my computer right in front of my eyes without any input from me. Upon restart, I could no longer open any web browsers. On top of that, a (fake) Windows Firewall warning came up, which directed me to buy some (fake) anti-spyware software. Who knows what private information was sent out. Sigh, if only such powers were used for good instead of evil…

I usually use AVG Free but it didn’t catch anything, even after a safe reboot and complete computer scan. Anyway, it forced me to update my knowledge of the best freeanti-virus software out there. Here’s what I found, let me know if you know of something better.

Anti-Spyware Freeware
The three most popular seemed to be SuperAntiSpyware, MalwareBytes Anti-Malware Basic, and Ad-Aware Free.

I basically just downloaded them all and had them all scan my computer. MalwareBytes and SuperAnti both detected different malwares, and helped me regain control of my computer. By the time I ran Ad-Aware, there was nothing left to detect. Most of the free versions are “on-demand” only, which means you have to manually run them when you need them.

Anti-Virus Freeware
The three that I tried were Avast! Home, Avira Antivir Personal, and AVG Free.

I don’t like the Avast! interface, but Avira and AVG seem to be decent free options, even though AVG didn’t save me initially. Avira crashed my computer while running the full scan, but I suspect it was because AVG was running at the same time. I think I’ll keep Avira and AVG running on my computer.

For more details and opinions, I found page at Gizmo’s to be the best compilation of freeware options.

I still get a regular stream of comments on my old post on handling a bank error in your favor. Many are people who also got some money by accident and are looking for advice. Then I saw this AP article “Pa. couple spent windfall from bank error” posted at FW, which is a good lesson on what not to do:

A Pennsylvania couple is behind bars after police say they failed to call the bank when a glitch put an extra $175,000 in their account. Authorities say 50-year-old Randy Pratt and 36-year-old Melissa Pratt instead withdrew the money, quit their jobs and moved to Florida. They were buying a house in the Orlando area when the mistake was traced.

The two were arraigned Tuesday on theft and other charges and jailed in lieu of $100,000 bail. A public defender was being assigned.

A $1,772.50 deposit showed up in their FNB Bank account last summer as $177,250. Police say Melissa Pratt said her husband, a roofing installer, often got large checks and she wasn’t aware of any error.

Gotta love their excuse. Did he think he re-roofed the White House in his sleep or something?

Some quick links from my weekend reading:

Cutbacks and the Value of Time
OverTheCubicleWall is being offered a voluntary work reduction to 32 hours per week. Would you take such an offer if presented to you? It’s an interesting question. I would seriously consider it. I’d probably rather have an extra month of unpaid vacation to allocate as I wish.

Where, oh where, does our $exy money go?!
J also did the dirty work and figured out how much they spend: about $4,700 per month if you don’t count savings as an expense. A worthy exercise for all.

Quiz: Are You the Entrepreneurial “Type”?
A very insightful quiz about entrepreneurs. Spoiler alert: My favorite part was that the most common reason for becoming an entrepreneur is the wish to avoid working for others, and not to make the most money. I agree with that.

Fama/French Blog
If you are a passive investing geek, you should know the names of Drs. Fama and French. And now they have a blog, where they answer some timely questions in the current market. Ex. Is the market turmoil a sign that markets are not efficient?

Sam the Cooking Guy: Cooking Videos
Cut out cable TV and miss Food Network? Here are some simple recipes with videos. I like the layout and use it for ideas. Less overwhelming than AllRecipes.

Updated: The SaveYourself Plan and partnership with TD Ameritrade appears to have ended.

Suze Orman is still offering her “Save Yourself Plan” in conjunction with TD Ameritrade, although the offer is not as good as it was before. Previously, you had to open a new account at TD Ameritrade and put in $50 per month for 12 consecutive months. The default FDIC-insured interest rate also started a 2.78% APY. You were effectively making over 35% interest annualized, albeit on a limited amount of money.

With the current offer, you must now deposit $100 a month for 12 consecutive months, and the FDIC-insured interest rate on cash is only 1%. This works out earning about a 16% annual interest rate. Still not bad, if you have never had an Ameritrade account. As compared to keeping your money in an online savings account at 3%, after a year you’ll be ahead by about $80 in extra interest.

Plus, once we receive your first deposit, you will receive free online access to Women & Money—the book that launched Suze’s Save Yourself movement. And that’s not all. You will receive emails of support and encouragement from Suze…

I wouldn’t trade there, though. Just take the bonus. For more value, here are the brokers that I would recommend for starting an IRA.

The $100 bonus promotion from the Discover Business Card is going away on December 31st. You can earn a $100 Cashback Bonus when you make $1000 in purchases within 3 months after your account is opened.

In addition, there is 0% APR on purchases for 12 months, so there is no hurry to pay the whole balance off right away. Just keep in your bank account earning interest. Finally, you can get 5% back on office supplies, 2% on gas, up to 1% on all other purchases.

As with all these business cards, individuals can apply as sole proprietors by simply using their name as the business name. You just need to put your Social Security number as requested, and leave the Federal Tax ID blank for this application (it will use your SSN). More details here. More $100 bonuses listed here.

Okay, so I couldn’t think of a good title… but think about it after reading these helpful articles. 😉 I’m including some excerpts I like, but I would highly recommend reading each piece in its entirety. Good stuff.

Warren Buffett: Buy American. I Am.

So … I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.

Why?

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.

Of course, I don’t remember him ever writing an Op-Ed saying “Be 100% Bonds, I am”, or “Hedge Against The Dollar, I Am”. However, I do agree that if you are going to buy stocks, now is a fine time to buy. I am maintaining my asset allocation, and I’m not even doing it grudgingly – I’m doing it happily.

Hedge Fund Manager Andrew Lahde’s Goodbye Letter

I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.

This guy bet big on the collapse on the subprime mortgage market and got great returns the last few years for his small hedge fund. He brings an interesting point of what drives people to super-duper-richness. I would probably do the same as Lahde, but others would keep reaching for more. Buffett’s new biography The Snowball also goes in the family life sacrifices/choices he made. The end part about hemp… is there a hidden correlation?

Bogle & Bodie On Wise Diversification

Jack Bogle: I am a believer in diversification. You buy index funds for stocks, and your bond portion should equal your age. This is how I invest, so I know how little it’s hurt me to have a substantial position in U.S. bonds. I’m in half Treasuries, half corporates.

[…]In recent years, international investing has had a higher correlation with the U.S. market than was traditional. If you invest internationally, you have to invest in foreign companies not as diversifiers but wealth producers. If you like international, get in gradually, maybe with 20% of your portfolio, half in developing markets and half in emerging markets. Europe looks a lot like us, so it’s at least possible you might get a better return out of emerging markets. I don’t invest internationally myself.

Zvi Bodie: […] And then there is insuring or hedging. That’s when you’ve got a safe asset and to my mind that is Treasury Inflation-Protected Securities, or TIPS. One way to protect yourself is to combine a diversified portfolio of risky assets with the safe asset. We teach students that you only need two mutual funds—the risky assets and the safe asset—to generate the entire set of risk-and-reward trade-offs.

Given current events, it might be good idea for the average citizen to better understand our modern banking system. Reader Rick submitted this following video by Paul Grignon which tries to explains things in an accessible way using animation. It is about 45 minutes long, so you need to commit a chunk of time to watch it, but I thought it was worth it.

The first part explains our fractional-reserve banking system very well. One might think that for every $1 we put in a bank account, that is $1 that can be lent as a mortgage loan. In actuality, it is more like $100 that can be lent. (Wonder why banks want our money so bad?) So where is most of the world’s money coming from? In effect, it is created by the act of borrowing itself. Money is created by debt!

However, in the end, it draws some controversial conclusions. The creator contends that this system is unsustainable, and because banks control the credit in our society, they effectively control the society. Thus, it would be better if the government took over such transactions. I have been unable to find a good rebuttal by a financial professional or economist online, so please drop a comment if you have.

(Best viewed in full-screen mode. Takes a while to start.)

High-Yield Bank CD
Washington Mutual has brought back their 5% APY 12-month CD for another week, which had previously dipped to 4.5% APY. If this fits your needs, don’t miss it this time around.

Chest Freezers
Apparently, I was not alone in doing cost/benefit analysis on an extra chest freezer, as this AP article shows:

Once relegated to the dank corners of the basement, freezers are being embraced again by shoppers who are stashing bulk-sized purchases of meats, fruits and vegetables there as they work to combat rising food prices. Across the country, shoppers bought more than 1.1 million freezers during the first six months of the year — up more than 7 percent from the same period last year, according to research firm NPD Group.

That rings up to nearly $400 million in freezer sales — a staggering figure compared to the rest of the home appliance sector, where industry data shows shipments are down nearly 8 percent. And, experts said, it’s a trend that’s expected to continue at least through much of next year as penny-pinching shoppers buy in bulk to take advantage of deals or bundle grocery shopping trips to conserve gas. […]

About half of all U.S. households already have a chest or upright freezer, separate from the refrigerator-freezer combo that’s a kitchen stalwart, according to industry statistics. [Source]

I also had no idea 50% of households already had an extra freezer. We still haven’t bought one yet ourselves; I’ve been in kind of an anti-stuff mode recently.

Here are some recent links from fellow bloggers that made my cursor pause…

Grad Money Matters ponders when to stop chasing money? How do we know at what point when we need to slow down? Good question.

Wisebread offers up some cheap things to do in San Francisco. I always like to see other people’s views of an area I am familiar with; everyone always has different ideas. The comments are good too.

The Consumerist tracks the continuing trail of destruction by the Grocery Shrink Ray. AllFinancialMatters laments the shrinking beer bottles of certain brands. Or are they 1/3 liter bottles? Or are 1/3 liter bottles a convenient metric-system-abusing excuse? Financial Ramblings says we get what the market decides. I believe, with consumer awareness, the balance can be shifted.

Get Rich Slowly talks about the best salesman in the world, whose path to riches lay in selling $5 potato peelers on the streets of New York City. Interesting story.

No Credit Needed offers an illustrated guide to debt reduction. I like pictures.

The Simple Dollar explains why they decided to finally merge their married finances.

Christian PF makes his own toothpaste. I must admit, this is something I’ve never thought of doing myself. I do drive my wife crazy by squeezing the last atom out of our current tubes, though…

Almost Frugal shows us how to cut a little boy’s hair. Amazingly enough, no bowls were involved! As a kid, I was happy with a buzz cut for many years. I’ve never been big on hair…