Do Good There or Do Good Here

A columnist for The New York Times by the name of Nicholas Kristof uses his refined journalistic sensitivities to plead the case of the poor and downtrodden in third world countries. He’s written a book in which he urges readers to donate money and/or time to help improve the lives of these people. He often works on your sense of shame to be more proactive to his pet causes.

Certainly his heart is in the right place and there is endless misery in the world that must be addressed, but Mr. Kristof and spouse seem to home in the most hopeless and most desperate. As a reader, I sympathize for the plight of the less fortunate, but where does one begin?

For the most part, the greatest misery is found in the regions of the world with the most dysfunctional leadership, which leads me to conclude that without addressing that underlying situation, our charity will be wasted or otherwise usurped by the power structure.

Mr. Kristof is an intrepid traveler and visits and meets with the most afflicted populations in the world, so naturally he is greatly moved and inspired to call the first world’s attention to the most horrific situations. But again, with the need so great, how can our pittance of support make much of a difference?

I hate to say it, but charity should begin at home. It begins by providing education and other opportunities to the next generation, your kids for instance, before you can adjust your sights outward to volunteer time and money for the community. I believe in local first. Help bootstrap the less fortunate in your town or in less affluent areas where your contribution can make the most impact.

Yes, I’d love to provide a roof and an education to the masses of unspeakably poor and abused in the Sudan and Congo, but my humble efforts are little more than spitting into the ocean. When the system is so broken, how can we know that our dollars are well spent—or spent as well as they could be if we take a more local approach? 

Are You Cut Out For the Corporate LIfe?

I’ve had a moderately successful career in middle management at a major financial services company, despite the fact that I lack many of the qualities needed to be extremely successful in a corporate environment. In fact, the only reason I’ve survived is because I offer a valued skill set, specifically an ability to write and produce a wide range of marketing communication materials in all formats and for almost any audience.

This is a quirky skill set that’s essential to a firm offering its products and services to various audiences, but it limits the upside potential for such a person if he or she doesn’t have the other attributes needed to really climb the ladder. In fact, the following attributes, which I lack, are far more important than the ability to create a web site, write and produce brochures, produce videos, and so forth if you really want to advance into the executive ranks.

Here is what is holding me back from being a smashing corporate success:

I’m an introvert. Organizations dote on outgoing people who like being amongst other outgoing people. Those who can’t function at cocktail parties, conferences, and team-building activities don’t get very far. Plus, I hate public speaking, which is a must when you work in a group.

I’m not a team player. Organizations are all about collaboration and doing things as a team. I tend to create my masterpieces alone in my office and present them to others. When creativity is involved, adding cooks to the piece is not usually synergistic. And I want the credit when I do something well and not have it dispersed to lesser contributors. If it sucks, I’m more than willing to accept the blame.

I don’t schmooze. Schmoozing and small talking your peers and bosses and forming mentor relationships are essential to career growth. I have a physical gag reflex that prevents me from sucking up to superiors and mouth sweet nothings to people I care nothing about.

I resent authority. I’m usually smarter than those in charge and since I’m self-motivating and self-guiding, my bosses usually can’t tell me anything about my performance that I don’t already know.

I have zero leadership skills. Leadership is big in corporations—they look for future leaders. Don’t look at me—I hate supervising people, have no desire for power, can’t do the “rah-rah” thing without suffering bouts of reflux, and, of course, my personal goals always take precedence over corporate goals.

Devoted to the company mission. You must make your company’s goals your personal goals. I’m way too self-centered to care about the company’s mission. If I do my job well, then the company directly benefits. That’s the order of importance for me.

So, if any of my negative traits apply to you, you will not be happy in the corporate life. You’re better off starting your own thing, since unless you’re willing to become the corporation, you will never go far in the corporation.

Ebola? You’re Worried about Ebola? Oh Puhleeze!

Sure, Ebola is a frightening disease and a grisly way to go. But did you know that you are 23 times more likely to die from a lightning strike than contracting and dying from Ebola? Consider:

NUMBER OF DEATHS IN THE U.S. FROM:

Ebola:  1 in 2014

Lightning strikes: 23 (2013, NOAA National Weather Service)

Skateboarding: 30 (2013, skatepark.org)

Helicopters: 133 (2012, helihub.com)

Guns: 30,000+/year (Centers for Disease Control and Prevention)

Vehicle-related: 33,561 (2012, Insurance Institute for Highway Safety)

Drinking: 80,000+/year (Centers for Disease Control and Prevention)

Smoking: 480,000+/year (Centers for Disease Control and Prevention)

Really, aren’t there better things to worry about? 

France and Italy Finally Step Up

It's supposed to be the eurozone, not the Germanyzone, which is something that France, Italy and other member countries are finally realizing. Eight years of economic mis-rule by Merkel and her ilk in Germany has Europe teetering on the brink of deflation and a third descent into recession since 2008.

Isn't that enough proof yet that austerity, budget reductions, and cutting back on government spending is a sure way to economic disaster in the face of today's negative demand enviroment? It's death by wayward ideology!

So it's heartening to see that France, Italy and the European Central Bank are finally rebelling against Germany and its austerity gangs by finally talking about stepped up government spending to stimulate their economies, put people back to work, stoke demand and actually lay the foundation for sustainable growth.

"We need to show that Europe is capable of investing in growth, and not only in rigor and austerity," said Matteo Renzi, Italy's Prime Minister. Here here! Europe's economy is as large as the U.S.'s, so a European stimulus helps international trade in the U.S. as well and may finally snap the Western world out of a slow-to-no growth treadmill that we've been on for the last four years.

It may just happen, because even Germany--the eurozone colossus-- is spiraling towards another recession, so it may finally be receptive to some stimulus itself. This is not the Weimar any more. Inflation, rather than being an evil, is actually needed in times like these.

There are certainly times to tighten the purse strings. But now is not that time! Let's go out and fix some roads, build some bridges, and hire more teachers. 

The Internet of Evil

It’s difficult to overestimate the evil and underlying immorality rampant in the world today. How is that for a grand, encompassing sentiment? What's with the proclivity to take the short-cut, to steal and otherwise acquire what one desires through illicit means? 

Like many things, this tendency is magnified by the Internet. Just as our Narcissism and shallowness leap to the fore on various social networking sites, our human urge to sabotage, undermine, and steal is magnified by the stealth and convenience of the online world. 

I’ve always felt that community and religion help keep those aspects in check—community because it’s easier to be exposed and humiliated for such behavior, and religion because of the ever-present punishment of the Great Inferno. 

But the anonymity and scale offered by the Internet reduce the chances of being caught and religious belief isn’t as much of a deterrent to the tech-savvy for some reason. Thus, our sinister natures come to full flower in the constraint-free world of the Internet. It’s an infinite red light district of scams, boondoggles, con games, vandalism, voyeurism, and sex.

Not that there’s anything wrong with that, but when no controls are in place, it makes it much easier to run roughshod over positive social norms. It does make me wonder the degree to which our character is inherently malevolent and destructive. It would seem, when left to our own devices, a predominant choice would be mayhem. 

Our evolved intelligence and cleverness only makes us more destructive per capita than any other beast. The Internet and how we use it does accentuate our essential beastly nature. 

In other words, just be on the lookout whenever you log on.

Things Not to Worry About

Lotsa of things of an unsettling nature are going on today.  As I write this, the stock market is down about 400 points and is rapidly approaching correction territory. A correction is a decline of at least 10 percent from the most recent market high. So if the Dow Jones Industrials goes down to 15,551, we would be in correction territory.

The thing is there’s nothing you can do about it. While the global economy picture is not great, stock prices are not at a point that they are terribly over-valued, so not many people are predicting a bear market. There have been 27 market corrections since the end of WWII and each time the market has bounced back, with the average being 115 days. 

So if you haven’t taken your stocks off the table already, leave them where they are because if you cash in now, you’re only locking in your losses. These things usually happen once a year, but we haven’t had a correction since 2011, so we’re due. This is something not to worry about.

Another thing not to worry about is Ebola. At least not in the U.S. There are many things to worry about in my home country—out-of-control Republicans, stupid gun laws that kill 30,000 people a year, abortion law restrictions that will end in the deaths of untold numbers of young women, lightning strikes that will kill a few dozen, and the lack of political movement on climate change. But Ebola, gosh, it’s killed two people in the U.S. so far—we lose that many in 30 seconds to heart disease.

And finally, back to ISIS. Let’s not worry about ISIS. They do not present an immediate threat to the U.S. Sure they’re crazy and sure our bombing missions will not subdue them—but really, are they about to set up a caliphate in the U.S.? Please, not to worry!

Finally, don’t worry about Beyonce and Jay Z. I’m sure they’ll be able to work out their differences and remain the first couple of American Pop. We all have our ups and downs. Let’s worry about those things and let Beyonce and Jay Z worry about theirs. If things do go south on them, it’ll give us more time to worry about Kim and Kanye.

Still, if you must worry about things that don’t affect you, let me know and I’ll share my martini recipe with you. It nips worry in the bud.

Think Twice About Buying That Annuity

Here’s some more investment advice: Most annuities are a bad deal. First, what are annuities? They are an investment that you make in which your gains (interest and appreciation), if you have any, aren’t taxed until you withdraw them.

In the case of variable annuities, which are the most commonly bought, you are investing in underlying mutual funds, usually stocks and bonds. The beauty of an annuity is when you retire, and “annuitize” your annuity, you get a guaranteed stream of income for life, if you so choose. Outside of Social Security and a traditional company pension, which few people have these days, only annuities can provide that guaranteed income.

Here’s the downside—cost. Variable annuities are not cheap. To get that tax-deferred benefit and guaranteed income, you have to pay for the risk that the annuity seller is taking to guarantee your money. Depending on the variable annuity you buy, that annual fee could be 3% or more—and that’s on top of the fee you are paying on the mutual funds in your annuity.

Bottom line, you could end up paying anywhere from 4% to 8% or more in fees for your annuity, which means your investments must make at least that amount each year to break even and start earning investment returns. I think that’s a pretty steep price to pay for a little added security. Most people are better off just investing in low-expense index funds and setting up a withdrawal plan at retirement.

There is one kind of annuity I do believe in—it’s called an immediate annuity. Companies don’t publicize them that much because they’re not big money makers for them like variable annuities. With an immediate annuity, you deposit a lump sum of money with the provider, usually an insurance company, and they pay you a set stream of income for life.

The interest rate on a immediate annuity is based on prevailing interest rates plus an amount based on your life expectancy—the shorter your life expectancy, the higher the interest rate, since the annuity provider won't have to provide income for as long. The big benefit is you get a guaranteed stream of money at a higher rate than if you had invested in a bond at the prevailing interest rates. The downside is you lose access to the principal that you invested, but heck you won’t need that money when you’re dead!

Let me know if you’re interested in the best way to set up a retirement withdrawal strategy.