investing · Personal Finance · Uncategorized

Expense Ratios Simplified

economiccommander1 Comment

What the heck is THAT?

We’re talking about the elusive “Expense Ratio,” which governs some of the charges passed on to the investment fund participants by money managers. In most cases, this figure will be something like 0.04-0.99 percent, numbers that successfully flummox the mathematically disinclined. They don’t look expensive, and in fact they really don’t seem like much at all.

But the truth is in the fee lines. If you go by the first glance, it is easy to end up paying hundreds if not thousands of dollars worth of expensive charges that eat away at the base return.

Consider the following S&P 500 options for a second, and keep in mind that the returns are a few months old:

American Funds AMCAP Fund

5-year return:  8.94%

Gross and Net Operating Expenses: 0.36%, or $3.60 per $1000

Vanguard Institutional Index Fund

5-year return: 9.63%

Gross and Net Operating Expenses: 0.04%, or $0.35 per $1000

Those numbers make a BIG difference, and we’re not even including the other administrative fees. Plugging them into a calculator we get:

A difference of over $26,000 over thirty years, all while the participant thought he was “saving” money.

Now let’s look at a bond fund for comparison:

Ivy High Income Fund

5-year return: 3.91%

Gross and Net Operating Expenses: 0.57%, or $5.70 per $1000

What’s really sad is that the bond fund has a much lower return, and yet charges higher fees, eating away at growth for the saver or retiree. Expense ratios DO matter, even if they seem like legalese at first glance. Choose the low-cost fund whenever possible

Uncategorized

A Warning About H&R Block

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For those of you considering H&R Block for taxes this year, it’s worth paying attention to a rather dishonest ruse they employ to generate money.

On Amazon, a popular option is the H&R Block Tax Software Deluxe + State 2019, which offers a special wherein you get a 4 percent bonus gift card on any refund total. It currently retails at $29.99 and sounds great, but things should be broken down a bit more for clarity.

Let’s take a look at the feature bullets:

  • Five free federal e-files and unlimited federal preparation and printing
  • One state program download included – a $39.95 value
  • Guidance on maximizing mortgage interest and real estate tax deductions
  • Reporting assistance on income from investments, stock options, home sales, and retirement
  • Quickly import your W-2, 1099, 1098, last year’s personal tax return
  • Free live product help via chat – or get tax help from a tax expert for a fee
  • Help Center has more than 13,000 articles, frequently asked questions, and tips in case you get stuck while preparing your taxes
  • Must allocate all or a portion of Federal refund to Amazon.com Gift Card to receive 4% Refund Bonus

In other words, you (or the household) is probably covered under the five free federal e-files, assuming it’s not a massive family. However, while you do get ONE state program download, you receive ZERO state files with the bundle.

How much does a state file cost? Oh, just $19.95, or roughly SIXTY PERCENT of the price tag for the “Deluxe” package:

Imagine doing that for several family members, and all of a sudden you’re at eighty bucks so that H&R can SUBMIT the return. And in case the family is too large, or you foolishly purchased a less fancy package, expect to pay $9.95 per federal return to e-file:

But don’t worry, cause it’s “Deluxe.”

Uncategorized

How I Chose a Laptop

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In my book on van life, I wrote about my struggle surrounding the purchase of a new vehicle. You never get exactly what you want, or that very thing ends up with a crucial flaw unmaking its viability.

When it comes to a new laptop, things are much the same way. Too cheap means poor quality, but sometimes going pricey isn’t much better. The carnival marches on.

Initially, I set out with the objective of securing a machine that would properly balance between gaming, video editing speed, and a large storage capacity. The first aspect was less important, as I don’t game much anymore, but it’s rare to find a model with a basic graphics card which can do the others equally well.

After some preliminary searching, I found the Acer Nitro 5. This guy seemed to have the right combination of features for a good price, although it also appeared too good. As it turns out, the model enjoys subpar battery life, and the build quality plus graphics card are not terribly impressive. Furthermore, Acer’s reputation is spotty, to say the least.

Buoyed by some positive comments about Asus, I investigated the TUF FX505DT, which was a step up from the previous one, albeit still at a solid price. A couple of factors turned me away from it though, including the limited storage options and mediocre reviews for the Ryzen processor. To be fair, reviewers may be techies themselves, but for me a laptop is a long-term investment, not something for a couple of years.

Another one that received attention was the Lenovo Ideapad L340, a feller with good general reviews and a largely positive manufacturer reputation. I have heard that Lenovo’s quality declined over the past few years however, probably driven by the same industry obsession with cheap build material to subsidize costs.

I would almost end up pulling the trigger on the L340, save for it’s less capable processor and, once again, poor storage options. Someone will start screeching about the cloud or externals right now, but I’m, old-fashioned when it comes to memory.

My final and conflicted stop would be with the HP Omen 15-CE198WM. I currently own an HP that has lasted almost eight years, and the Omen offered a decent provision of storage, graphics performance, and speed wrapped up in one. Probably a bit too expensive given the age of the components, but I’m happy with the results thus far. My biggest gripe would be the fan noise and slightly jagged edges on the exterior.

Regardless of what you choose, a laptop is prone to having issues at some point, so I elected to purchase a 4-year protection plan through Asurion, which is less costly than options from other providers.

Culturalism · Personal Finance

The Masks of China

economiccommander2 Comments

As some of you already know, Xi Jingping was photographed at the Beijing Coronavirus hospital wearing the transmission prevention mask which has become iconic during the crisis. This is while reports suggest he has failed to visit Wuhan, where the outbreak originated.

From what we can see now, there are a few possible takeaways:

1. The virus threat is not serious, and Xi simply has to put up the image of containment, in a (non-malicious) propaganda act.

2. A massive calamity is being covered up in China, but we still need take the Thomas Friedman approach, because their government is honest.

3. It’s the Russians.

Thoughts?

Personal Finance

How To Stay Warm Sleeping In Your Car

economiccommander2 Comments

Is there a way to car camp in the cold comfortably?

This is a pretty common question among van dwellers who aren’t somewhere in the Deep South. That’s because most of us can sleep in humid regions without too much trouble, especially considering the aid of a cooling mattress or some battery-powered fans.

On the flip side, cold weather car camping always becomes an issue. Part of the problem is that heaters draw so much power, making battery-operated versions quite rare.

Sure, one can try to install an inverter or keep the heat on all night, but that way lies the risk of Carbon Monoxide. Propane heaters are not much better, especially if you intend to sleep in a smaller vehicle.

So where does that leave us? As it turns out, with a couple of decent options.

1. Use a Proper Sleeping Bag

Ditch the Coleman easy rip zippers and choose something durable. I’ve found the WolfTraders -30 model to be quite satisfactory, even if it is a bit expensive. Remember, minimalism doesn’t mean Cheapito thinking, particularly when it comes to holding in the heat.   

2. Bundle Up

You probably heard as a kid that the body loses heat at its ends. Make sure to wear a fresh pair of warm socks, some gloves, and a thick hat or balaclava while resting. The head is especially crucial, because it is usually more exposed, and you don’t want to be covered by the bag completely, or breathing will create moisture and possible sickness.

Invest in some thermal shirts and long underwear. They’re not terribly expensive, but do the job well.

3. Utilize Hand Warmers

A large pack of these little guys will run 14-20 bucks, but provide excellent comfort. One or two in the bag or in a hoodie pocket can make a lot of difference. Just avoid sticking them in that place.

4. Hot Water Bottles

This is one few people will readily think of, despite the ease and affordability. Purchase one or two of these fellows with the fabric case and boil water at work with an electric kettle or somewhere with a free outlet and place them at the bottom of your bag. They will prevent that chill that builds up around the feet, especially if that end is near a car door or trunk.

5. Get a Remote Starter

Although pricey (usually around $300.00) this feature can be a major boon in chilly weather. Once you get out of the bag upon waking, the change in temperature can be uncomfortable and cause sickness. Instead, keep the button close by and tap it so the car heats up before exiting. This also works as a precedent to going to sleep so the car is not freezing when you get in.

To be cautious, purchase a battery-operated carbon monoxide detector and keep it in the car as a safeguard.

Mitt Romney Has No Conscience
Culturalism

Mitt Romney Has No Conscience

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Much has been made of Willard Romney’s decision to vote for the “Abuse of Power” article in the Senate’s impeachment trial. Republicans are angry, while Hollywood leftists can’t stop praising Corporations are People for his brilliant move.

 As it turns out, the actual process remains less interesting than Romney’s justifications. In a speech beforehand and an interview with Fox News, Romney did the prototypical. He appealed to God, the Constitution, and his conscience.

Yet it’s highly doubtful that he has one. Let’s turn back time for a second. In 1994 and 2002, Romney staunchly defended the right to abortion, and then bounced back in 2006 as he prepared to run for president, now “firmly pro-life.”

In 2005, Romney vetoed emergency contraception for rape victims, only to cycle back and support access for all women in 2012.

Romney famously declared “Let Detroit go bankrupt,” but proceeded to defend the Wall Street bailout as a way to prevent an economic meltdown.

For all his love affairs with the Constitution, Romney endorsed waterboarding, denial of Miranda rights, and the Patriot Act. He also responded to a debate question on congressional military authorization by saying “You sit down with your attorneys and tell you watcha have to do”

As if that’s not enough, Romney has been on both sides of the Obamacare and immigration debates.

Then we have Romney’s famous “phony” speech, where he roundly attacked Donald Trump as a fraud. Of course he infamously proceeded to congratulate Trump on winning, and audition for Secretary of State.

But yes, he is a man with a conscience.

Culturalism

No One Cares That You Were “Right”

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“He’s been saying the same thing for decades!”

It’s a common theme in politics: roll out the clips of an elder statesman railing against some unholy creation of government or corporations, and use it as reason to vote for them today. After all, he was right.

But no one really cares. When Ron Paul ran in 2008 and 2012, supporters made a big deal of pointing it out. “Ron’s been consistent,” they’d say. “We have to vote for him!”

The result? About 11 percent of the primary ballots, and not even a VP nod.

Fans of Bernie are trying to do the same thing, and on his second national go around he still isn’t wiping the floor with the opposition, at least not on THAT point.

We can explain it simply enough by considering normal human attitudes. When you try to persuade someone who’s convinced otherwise, how frequently do they concede the point? Typically never. And even if you successfully nudge them in the right direction, the chances of getting recognized for it is almost zero. Perhaps the key is to blame human pride, yet that doesn’t make things any better.

Another factor revolves around how the collective outrage consensus shifts over time. A conservative likely saw Ronnie as the best thing ever in 1984, while a Gary Hart supporter probably disagreed. Neither of them knew the precise impact various policies would have, or future economic developments. That’s because 1984 is not 2020, and the most important issues were different at that time. They were blinded by their environment.

Hope should prevail though, because GenZ types will have plenty of TikTok videos to use in their campaign ads for the tech plutocracy.

investing · Personal Finance

The Religious Investor

economiccommander4 Comments

Just how HIGH can it go?”

You’ve probably heard something along those lines in market-based articles. After all, greed and overconfidence are the virtues of constantly churning stock wheels.  It should never stop.

Over the last few years, we have witnessed a rather new phenomenon: the Religious Investor. In this case, it is a person who has no regard for reality or the underlying principles of value. Any outcome, regardless of nature, is an affirmation of their stock’s worth, and skepticism? We simply won’t have it!

The Religious Investor operates much like the Chant Warrior where psychological tropes are concerned. Anything Bad is Good, and anything Good is good. Low polling? That’s because the polls are wrong! Not getting positive attention? Only because of media bias! There is zero possibility of an alternative, because that contradicts the religious narrative.

You probably recognize by now that my target here is Tesla. To be clear, it applies to shareholders in other stocks as well, like Buttondown notes:

One January 29th, 2020, they released a fresh earnings report showcasing the following:

Q4 Non-GAAP EPS of $2.14 beats by $0.38

GAAP EPS of $0.58 misses by $0.26.

Revenue estimate was $7.05 billion, actual was $7.38 billion, beating by $330 million

In reaction, the stock rose from around $570 to $644, roughly 11 percent. This despite relatively poor results in the second half of the year, and a weak track record. 

Look at how Tesla bulls respond to skepticism:

Comparatively, Apple released the following results not long ago:

Q1 GAAP EPS of $4.99 beats by $0.45.

Revenue of $91.82B (+8.9% Y/Y) beats by $3.41 billion.

Apple’s uptick? About 2 percent. And even in that case, after a long run of success, calling for a sell gets you shredded by the true believers.

So should we all go to cash, or stop being haters and buy?

Culturalism

What Trump Has Accomplished

economiccommander1 Comment

I am not much for petty electioneering, but at times it becomes obnoxious to hear people proclaim their hated public figure to be “a complete failure,” without evening attempting to consider the facts. They just sit and scream.

In the case of Donald Trump, the prevailing narrative is that he is anti-poor, anti-gay, and anti-woman. As we will see, the actual LEGISLATIVE record puts more than a few chinks in that brilliant and pink progressive armor. One simply has to look.

On Women

Promoting Women in Entrepreneurship Act (Along with the INSPIRE Act, designed to expand number of women in STEM and business)

INSPIRE Women Act (See above)

Women, Peace, and Security Act of 2017 (Focused on resolving conflict by having women play roles as mediators and mitigators)

Debbie Smith Reauthorization Act of 2019 (Meant to eliminate backlog of 100,000 rape kits, overwhelmingly to the service of women victims)

On Veterans

American Law Enforcement Heroes Act of 2017 (Provides grants to hire veterans in law enforcement)

Jobs for Our Heroes Act (Makes it easier for veterans to get CDL jobs)

VALOR Act (Expands apprenticeship opportunities for veterans)

Veterans Care Financial Protection Act of 2017 (Helps protect veterans from scams)

Enhancing Veteran Care Act (Reform to improve VA service provision)

Veterans Appeals Improvement and Modernization Act of 2017 (Revamping of VA claims process)

On Criminal Justice

Rapid DNA Act of 2017 (Focused on reducing violent crime through use of Rapid DNA system)

Justice Served Act of 2018 (Meant to reduce DNA backlog in criminal investigations)

INTERDICT Act (Action against drug smuggling related to the opioid crisis)

Allow States and Victims to Fight Online Sex Trafficking Act of 2017 (Directed against sex trafficking on the internet)

Trafficking Victims Protection Act of 2017 (Additional protections for victims of trafficking)

Medicaid Services Investment and Accountability Act of 2019 (Expands certain Medicaid services, while providing penalties for companies that misclassify drugs)

Social Security Number Fraud Prevention Act of 2017 (Restricts printing of SS numbers on official agency mail)

Elder Abuse Prevention and Prosecution Act (Ensures the compilation of information on, and institutes penalties for, elder abuse)

Cybersecurity and Infrastructure Security Agency Act of 2018 (Creates the Cybersecurity and Infrastructure Agency)

Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018 (Modifies restitution laws for victims of child pornography)

Juvenile Justice Reform Act of 2018 (Reforms juvenile justice system, preventing children from being held in state prisons, and working to reduce racial disparities)

First Step Act of 2018 (Major reform of federal prison system and sentencing rules)

Preventing Animal Cruelty and Torture Act (Increases penalties for animal abuse and torture)

On Taxes and Retirement

Taxpayer First Act (Reform of IRS appeals and tax enforcement)

SECURE Act (Substantial overhaul of retirement rules, allowing Americans to save more over their lifetimes)

Tax Cuts and Jobs Act (Historic reductions in taxes for individuals and corporations; also simplifies tax filing with deduction rules)

On Healthcare

National Suicide Hotline Improvement Act of 2018 (Improves suicide hotline structure)

Early Hearing Detection and Intervention Act of 2017 (Advances research into hearing loss or hearing issues in infants)

Patient Right to Know Drug Prices Act (Eliminates pharmacy “gag clauses” which result in Americans paying more for prescription drugs than necessary)

Know the Lowest Price Act of 2018 (Similar pharmacy reform for Medicare/Medicaid)

SUPPORT for Patients and Communities Act (Opioid crisis response legislation)

Action on AIDS treatment

On Science and Technology

Save Our Seas Act of 2018 (Addresses marine debris issue)

America’s Water Infrastructure Act of 2018 (Improves waterway infrastructure throughout the country)

National Quantum Initiative Act (Creates national plan for advancement of quantum tech, including quantum computing)

Weather Research and Forecasting Innovation Act of 2017 (Improvements to weather data accumulation and forecasting)