BlueNote's Journal

Where are you and where are you going?
BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

jennypenny wrote:I've never been able to go a single day without looking, even on vacation. Not only that, but I can tell you on any given day exactly how much is in each of our accounts.

Please share more if you're able to successfully kick the habit. I'd be interested in your thoughts.
It's sort of boring and sometimes work gets engrossing enough where I don't want to check. I don't have any special techniques. It's hard not to check because the information is at your fingertips 24/7. I have honestly considered getting actual stock certificates and having them locked away in a safe deposit box, just collect dividend cheques. I don't even know if you can do this anymore. There's a good chance I would care far less about day to day price activity if I knew my holding were locked up in a safe and the only way to liquidate them was to go get them and send them to a broker.
Last edited by BlueNote on Wed Feb 17, 2016 7:13 pm, edited 1 time in total.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

cmonkey wrote:To get your mind off of financial markets, diving into spring has helped me. That guy has a whole host of gardeners world videos. Also a bunch on daily motion. Get to start the first seeds next week!

Makes me wish I had some land to grow a garden on.

K60
Posts: 20
Joined: Tue Sep 09, 2014 5:59 pm

Re: BlueNote's Journal

Post by K60 »

I check the markets frequently, but I only check my accounts when the market is up.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

@K60

On average US daily stock market results have about a 55% chance of being positive on any given day (statistically). However most people feel relatively more pain on losses then they do happiness on gains so it can be mentally depleting to watch the markets all the time. Better to look infrequently and spread the anguish over a longer time frame ;)

The journey to a 75% savings rate

I am at a savings rate of about 54% right now and I'd love to get that to 75%. However I'd have to cut my current expenses almost in half to accomplish this. That would mean a few lifestyle changes.A more challenging task would be increasing my take home pay by 81% but keeping expenses static. I'll go ask my boss for an 81% raise tomorrow :lol:

Theoretically this is how I would do it. Number 1 would be arranging some sort of work from home with my company and moving to a cheap COL town where rent is 1/4 of what we pay now. We did it in University and it wouldn't be too bad to do it again. Next would be our expensive yearly vacation , I'd have to nuke it. I'd also have to eat more frugally and I could probably swing it. It seems almost crazy to me, but that's the Wheaton scale mental model for you.

Jumping to a 75% savings rate probably ain't going to happen any time soon but I will be keeping my expense inflation in check so that any raises that do come my way flow to the bottom line after taxes. Unlike my extreme brethren here I am willing to trade some more time and earlier freedom for a flashier and shorter FI period.

Tyler9000
Posts: 1758
Joined: Fri Jun 01, 2012 11:45 pm

Re: BlueNote's Journal

Post by Tyler9000 »

Sounds like a good plan to me! Getting to a savings rate goal is not something you can just flip a switch on. You grow into it. Focus on getting the most happiness for the least expenses, and you'll be fine.

K60
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Joined: Tue Sep 09, 2014 5:59 pm

Re: BlueNote's Journal

Post by K60 »

Interesting statistic on the US stock market.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

@K50 I got that stat from the Fama/French data set (Fama/French 3 Factors [Daily])

23andMe Genotyping

I got my genotyping results back from 23andMe which I sent in back in December. It turns out I am genetically 100% North western european, likely 60% English/Irish decent and mix of other european. Their screens picked up only one increased genetic risk where I am about twice as likely to get Alzheimer's then the average european man (genotype: APOE ε3/ε4), my odds are about about 22-33% of getting it by age 85. I don't like this but there is nothing I can do about it except ensure that my affairs are organized for the increased possibility. The site doesn't just flash those results up on the screen, you have to go through a validation process before they'll let you see the results. That makes sense because some people don't want to know they have a higher chance of getting an incurable disease. Personally I would rather know then not know.

I am adopted so I think it was worth $200 to get the genotyping done, given that I had little hereditary data. The site also has a function to find genetic relatives who have also submitted to 23andMe, mine are all 3rd to 6th cousins I have never met. They almost all have really Anglo-Saxon sounding last names. I'm not going to try getting in touch with them but it's sort of interesting.

Job Interview

I might be going for a job interview soon. I am shooting to get a 15% raise and an extra week of vacation. The head hunter is pretty confident she can get me in for an interview as long as the spot is still open. A lot of articles I have been reading say that people who switch jobs every 3-5 years end up making a lot more money because it's easier to negotiate a higher salary from a different company than the one you work for. This is particularly true for tech workers, I am more finance/accounting but I think it still applies. Where I work that is definitely the case. In fact they like to hire people with unrelated degrees (like history, sociology, literature) and train them in finance/accounting. The stated reason is usually "diversity" but I strongly suspect that the main benefit is that these people can't compete on paper with CPA's, CFA's, MBA's Peng etc. so they stick around and accept the really low pay. Some of these people are really good too, it's like we have honorary engineers and CPA's who got educated on the job and whose skills are extremely valuable. Some of the older crowd have STEM degree's and they are a joy to work with, I only have to explain things once and they have great questions and input. It's just that employers are so lazy and risk averse about screening people that they require the credentials so they won't be seen as taking undue risk and because credentials are a cheap shortcut to separating out talent.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Job Interview performance


So I did end up going to a job interview. It's an adrenaline rush for a super introverted person like me to do a job interview. I was all nerves in the days preceding the interview but now that it's over I feel great! I'm starting to think I should shoot for one interview a month now. I figure I've only got a 30% or less chance of getting this job. The head hunter and the person I interviewed with made it very clear they were interviewing as many people as possible this week. However they also made it very clear that they need to move fast so I'm thinking I'm up against 2 other similarly skilled candidates. I had almost no time to prepare for this job, I like to have a weekend to prepare but only had 2 workdays so I had to sort of half ass the whole thing. There were two people interviewing me, my potential manager and his manager. I felt like I had a better connection with the high level manager then I did with my potential manager. If I get that job it will be a big jump in pay for me. I gave my headhunter an inflated (market average) number for my current salary and said that I require a raise to make switching worthwhile. They were like yeah we can definitely get you that salary, so my fingers are crossed. This job + salary + benefits could take me into the 10 year retirement savings rate without having to adjust my personal costs. This company also has way better benefits then my current employer ( a well known technology dinosaur), with a share purchase plan , DB pension, group RRSP and a few other perks.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Excited

As mentioned in previous posts I recently applied for a job. I talk about it pretty openly here because frankly the odds of someone from this forum recognizing who I am from these posts are pretty darn low.

The head hunter called me back this morning to query me on my response to the question "What is your greatest weakness". He was a little bit worried because the potential employer was interested in me but was worried, essentially, about how honestly I answered the question. I had actually pre-planned my response and decided to answer frankly because if they didn't like it then they wouldn't like me as an employee anyways. I realize that the competition probably had some fluffy answer prepared about how they work too damned hard or some such. My answer was that I tend to become extremely focused on one task to the expense of everything else. It's sometimes hard to get my attention when I am in this mode and people can walk up to me and put their head right up next to mine and I won't know they are there. I often get jolted when people try to grab my shoulder when I am in my super focused mode. My sense of time becomes warped in this mode and hours can seem to pass extremely rapidly, I guess you could call this 'flow'. This typically happens when I'm doing some computer programming because it takes a lot of time and mental cycles to make something like that. I don't like to change gears all day, I like to get into high gear and stay there. As an old friend once described me I am like a super high powered car, operating best in high gear in a straight line. Anyways I explained this in the most favourable way I could to the nice people interviewing me and said that it was a strength in some circumstances and a weakness in others and that I felt the job was a really good fit for me.

So I guess they were worried I was going to just sit in the corner and not talk to anyone so I set the record straight that I currently work in a highly open (no walls office) collaborative environment now and that I am fine with that.

The headhunter things he'll be coming back with an offer in the next couple of days so I am excited.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Resignation

I gave my boss two weeks notice today because I got the job! The process was amazingly quick, I am already setting up my security and orientation for my new job.

My boss was adamant about coming up with a counter offer. I told him that it might make things awkward if I were to accept something like that because I'd be considered a constant flight risk. He said not to worry about it and not to talk about my resignation yet. I told him my two weeks notice stand but I wouldn't tell anyone about it. He told me that he's had people resign before and he simply refused to accept the resignation and made counter offers that kept good people in the company. He came back to me a little later and said that he talked to some VP's and that a counter offer would be forth coming. I told him that my head hunter advised me against accepting any counteroffers. I also said that the head hunter is obviously biased and that I am open to looking at a counter offer but there was a significant chance I would turn it down. He was ok with that....I definitely wasn't expecting this to happen but I guess it's a good problem to have. My boss is a sales guy (salesman/sales trainer/sales manager) at a company known for producing some of the best sales people. So he's used to overcoming all objections but ultimately I'll likely turn down any counter offer because I shouldn't have to resign to get my worth. I don't want to have to go through something like this again just to get a market rate salary.

User avatar
jennypenny
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Joined: Sun Jul 03, 2011 2:20 pm

Re: BlueNote's Journal

Post by jennypenny »

Congratulations!

Miss Lonelyhearts
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Joined: Tue Oct 08, 2013 12:53 am

Re: BlueNote's Journal

Post by Miss Lonelyhearts »

Just jumped in the thread, although I read back to October of last year. I just wanted to chime in with the suggestion to keep an open mind when listening to the counter offer from your boss. I can relate to the innate suspicion/mistrust you're feeling, but my advice is simply to remember that it's business and not personal, and not to let emotion enter overmuch into your thinking. Think of your employer as Mr. Market visiting you for the past ten years of your career and offering you $X, and you accepting. Now a new company has entered the picture and offered you 115% of $X; suddenly Mr. Market realizes his offer will have to be more substantial. The analogy is not perfect, but I hope it gets the point across. Of course this doesn't apply if your workplace is otherwise miserable or miserly, but if all things are equal and a bidding war begins, it's to your advantage to take the highest bid (assuming it's substantially more than the new company is offering, to make up for the hassle of interviewing then reneging, etc etc.) And if there are other opportunities at the new job you're excited about, now would be a good time to bring them up to your boss.

If you'll accept just another word of unsolicited advice: you're in the driver's seat with your company and boss right now, which is an unusual and uncomfortable position to be in. If you let it marinate for a little while and consider what exactly YOU WOULD WANT that would make it worthwhile for you to stay, you can make this negotiation more productive for everyone. Could be 175% of your previous salary, extra week's vacation, or the individual re institution of the sabbatical program you mentioned. If they can't/won't do it--who could blame you for walking?

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

@JennyPenny

Thanks!

@Miss Lonelyhearts

Those are good points about the job market and it is an unusual and uncomfortable position to have the power , even if for a brief moment.

Considering reversing my resignation

What a day!

I get sent to headquarters for a meeting with a VP. He sits me down and explains that he likes me, likes how I handle myself and then lays out the counter offer. My jaw almost dropped, it amounts to a 30-35% raise (putting me in the top 10% of incomes in Canada) and a promotion to do nothing other then stay and continue on doing what I have been doing. Prior to the meeting I had a little pow-wow with a family member who is a CFO. He said the main thing to ask about wasn't the pay but to find out how they were going to get a grip on ensuring I get adjustments to the market curve in the future. The VP isn't my boss but would be my future boss when I come off of the large project I have been on which should happen in the summer. He explained that at our company he can only talk to the area he is in control of, let's call it corporate accounting. In that area he is in touch with head hunters and keeps tabs on all his people and their potential market value regularly. He said that he has been in my shoes before (resigning and then accepting a counter offer) and that only a few VP's and my references know about my decision and that nobody else would find out. Its should be noted that there is very low turnover among the credentialed accountants in his department and I've never known him to be anything but a man of integrity. So I am believing his offer...

I'm now leaning towards re-neging on the new job and staying at the old one. I'm amazed at how well they managed my resignation, almost everyone else I know who quit just left and were given a respectful farewell, no counter offers.

I'll use the weekend to come up with a decision...

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Not Resigning

I rescinded my offer with the new company and accepted the counter-offer.

The counter offer was handled extremely well, almost like it should be made into a little training movie for other corporations to follow.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

60%

Now that all the job negotiation excitement is over I figure that I can get to a 60% savings rate without doing anything else. This brings me closer to my early retirement goal of retiring at age 45-46 (9-10 years from now).

Investing evolution

I have two portfolios that require active management and one that is a single fund and is on auto-pilot. I basically forget the auto-pilot fund is even there most of the time. I think I am going to stop contributing to my two active funds soon and start contributing to another simple buy and hold portfolio. The active funds require me to look at them and make decisions, the fun of investing for me is the research and discovery. The trading part isn't nearly as fun or interesting for me but it does build discipline. I trade once a month and used to trade at the end of the month. Being a corporate accountant this was very inconvenient sometimes. Therefore I am moving my trade point to the middle of the month. I am looking for an appropriate buy and hold portfolio for my next portfolio.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Tomatoes

I seeded some tomatoes today.

Image

I was looking for something that tasted great but was easy to grow. Supermarket tomatoes taste like slightly tomato flavoured watery cellulose. The best tasting tomatoes are usually an heirloom variety which is difficult to grow. The easiest to grow varieties usually don't taste any better then super market varieties. However a little research showed that there are people making hybrids that combine heirloom flavour with hardiness and high yield. My seeds came from the University of Florida Horticultural Sciences Dept. If you make a $10 donation they'll send you some seeds. Unfortunately any saved seeds from the plants won't be the same as the specially selected hybrid fruit (at least that is my understanding).

I am trying to grow two indeterminate "garden treasure" plants and two new hybrids which are determinate. Hoping for fruit from July to Sept.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Tomatoes

So far my tomato growing experiment has been 75% successful. It looks like a couple of seedlings didn't sprout but I have 6 seedlings that have sprouted now so I am hoping I can get at least two of these plants to the fruit bearing stage.

Image

Image

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Tomatoes again


I planted two tomato's per pot but I wanted to cull them as seedlings so I had one per pot, or 4 tomato plants. All the tomato plants have sprouted their first set of real leaves and in some cases the second set is coming out too. I gave them their first taste of a highly diluted liquid fertilizer tonight. I'll need to make sure not to over fertilize. I also made some de-chlorinated water by boiling the water for about 20 minutes. Apparently chlorine will build up in the soil so people recommend rain water or something without the chlorine.

I made a stupid mistake and forgot to label which variety I put in each pot. Unfortunately one variety is indeterminate and will grow into a rather large plant, and will keep growing until it dies in the winter. The other is determinate and will probably not grow very much but produce a denser patch of fruit. I only know the species of one pot (because I planted it after the first batch). It's basically impossible for me to determine what the varieties are because they all look the same now. I guess I'll find out in a couple of months :lol:

Image

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Financial Progress

I'm not big on fancy graphs and whatnot. My spreadsheet is designed to efficiently consolidate all my financial information and give me a few key numbers.

May 2016 year-to-date savings rate is: 71%

I expect that number to go down to ~62% by the end of the year if my expenses from last year are any guide. So far I have lower expenses then I did over the same duration in 2015. I am also making a lot more money now. My employer is still providing free breakfast and lunch, this will likely stop at some point in the summer which will push my expenses up more. I am already working on some tactics to reduce the food bill so that I can hopefully end the year at a 70% savings rate.

Investment strategy

I'm an inveterate investment strategy switcher. :? :oops:

I switched strategies again and now 92% of my investments are in simple (mostly vanguard) index funds. 60% world stocks and 40% Canadian fixed income.

The remaining 8% of the portfolio is invested in berkshire hathaway which I buy when it falls below 1.35% of book value.

How do I know that I'll stick with this strategy? Well I was already indexing the part of my portfolio that was matched by my employer (a target date fund) and it was so boring that I never checked on it much. That portfolio never caused me any stress and I slept fine at night with it. As my portfolio gets bigger I have noticed an increased desire for safety. The 60/40 allocation is what I'm comfortable with given my current risk tolerance.

I also didn't like my previous trending strategies (dual momentum and 200 day moving average) requirement for monthly updates and somewhat frequent trading.

Tomato Progress

They've been growing rapidly over the last week or so:

Image

I have been exposing them to direct sunlight with the window open to harden them for when they go to the balcony.

They've become surprisingly thirsty in a very short span of time.

BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Re: BlueNote's Journal

Post by BlueNote »

Tomato Plant Pictures

I have created some "self-watering" planters for my tomatoes.

My basic design is as follows:

My 5 minute thumbnail design sketch:

Image

The final product:

Image

Water is funnelled into the pipe until the it comes out of the overflow hole. Water is wicked up the soil and creates a gradient of water that is wettest at the bottom and driest at the top. The water level in the soil is controlled through the wicking action thereby preventing over and under watering (as long as there is water in the reservoir).

This design has the following strengths:
  1. It is very water efficient, I could only water once every two weeks right now, probably once a week once the plants are bigger
  2. The planters fit easily on my balcony ( I have no land)
  3. materials are easy and cheap to find
  4. labour is low skilled
  5. Prevents over/under watering
It is based on other successful designs so it's not an original idea at all but just a version of the idea I cooked up with the tools and other resources I had at my disposal. There are many variations of this design , search google and youtube if you want pre-made designs. Rather expensive Off-the- shelf turnkey solutions are available too so you don't have to use a few tools or think too much, you can substitute money instead :roll:

Investing

It's still a boring 60/40 world stocks/domestic bond portfolio and I am sleeping well at night.

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