The Wall Street Journal has an interesting piece on How to Disinherit Neatly.

• Get it on tape. Lawyers might also suggest that you videotape the will signing if you’re worried about a will contest. You would need to hire a professional videographer and, in the presence of an attorney, explain why you chose to distribute your assets in this manner.

• Add a no-contest clause. A no-contest clause is a legal instrument that can prevent heirs from fighting over what they get. It’s a good technique to use when you’re planning to give unequally. It essentially lets you say, If you go against my wishes, you will be cut out.

I wonder why I find all this irrelevant stuff interesting?

Read this post about this guy who makes 10k a day from adsense. Pretty Amazing. His pretty crappy dating website has about 2 million visitors and 50 million hits a day!

Whats his secret? Use leaderboards instead of skycrapper ads and don’t include a border , especially for blogs.

Just picked up a pretty good book on Economics. There was a sale at the local library. I bought Econ 101 1/2 by Elaine Schwartz for 25 cents along with Money Mischief by Milton Friedman for buck and several Star Wars novels for 25 cents apiece.

I tried reading a friend’s book on introductory economics once. Mind numbingly boring! Econ 101 1/2 is a really good introductory text on the subject. Full of entertaining anecdotes and stories. Best education money can buy for 25 cents!

Haven’t read the Friedman book but its gotten pretty good reviews on Amazon.

I also picked up The Far Side Gallery for $1. Not everyone appreciates Gary Larson’s humor but I think he’s pretty good. A good and cheap addition to my collection of Dilbert and Calvin and Hobbes books.

May 5, 2006–Cleveland, Ohio–Congress is currently considering plans to allow holders of Traditional IRAs, even high-income taxpayers, to convert their IRA into a Roth IRA, which allows tax-free withdrawals.

Roth IRA benefits include completely tax-free distributions if the account has been established for five years and the account holder has reached 59 1/2 years old. To convert to a Roth IRA Americans must currently fall below $100,000 Modified Adjusted Gross Income (MAGI).

According to published reports Congress is planning to suspend the current $100,000 MAGI income limit for Roth conversions for one or two years. After a tax payment when converting, Roth IRA holders would benefit with considerable tax savings in later years when making withdrawals. The plan is part of a larger tax bill that could be finalized as early as this week.

Since I’m in such a low tax bracket, I should be making more contributions to my Roth IRA and only after maxing out should I be contributing to my 401k. However, its very convenient to take the money out of my paycheck before I can get to it and I can mix it amongst various mutual funds. Its the easiest solution, if not the most optimal. I atleast took the step of converting my IRA to a Roth IRA late last year. I’ll probably get around to contributing more my Roth IRA but I’m still not a big fan on the stock market. Right now real estate is a better play, though that my change in the next few years.

For those of you that don’t know, a ROTH IRA is a retirement account where you accumulate money that grows tax-free. Unlike a regular 401k or IRA, the withdrawals are completely tax-free. Read this article on Why you should invest in a Roth IRA.

Since I mentioned the 3 mutual funds IFN, IIF and RNE about 10 days ago, they’re up about 10%!!

Of course I didn’t have any money in my brokerage account to take advantage of this move but I hopefully I’ll be able to get some money into my retirement account soon. Hopefully they won’t rise too much before then.

I just saw an ad for Bank of America. They now offer $7 stock commissions. Thats a 30% discount on Ameritrade’s $9.99! Of course you need a Prima checking account to avail of this pricing. But if you have $100k in combined balances with them, you only pay $5!!!

Has anyone used them? I think the biggest advantage is the quick transfer of funds between your checking account and brokerage account.

After having bought so many single family properties I think the next logical step is to buy an apartment building. If bought correctly, an apartment building can provide good cashflow apart from the usual appreciation.

Since I don’t know anything about this I’ve been reading some really good books. Two that are really good are
How to Buy and Sell Apartment Buildings and
How to Manage Residential Property for Maximum Cash Flow and Resale Value.

Anybody know any other good ones?

I came across this article online somewhere. Decent advice.

The Top 10 Steps To Becoming A Millionaire
By Dr Philip E. Humbert

1. Decide to be financially successful.

This is different than wishing, hoping, wanting or even desiring to be rich. Make a commitment that this is going to happen! Financial independence is not an accident or matter of luck, and it usually requires some inconvenience. Have you decided to achieve this goal?

2. Understand how money works.

Most of never studied finance or investing in school. Most of were never even taught to balance a checkbook! To master anything, you have to understand it. Read. Study what successful people do. Take classes.

3. Master your relationship with money.

Some of us spend for excitement, to show off, to prove we can. Some of us are addicted to spending, and some of us are just careless about it. Whatever your relationship with money, understand it and develop a relationship of respect, appreciation and gratitude. Use your money, rather than allowing it to run your life.

4. Set specific goals.

They should be challenging, but not unbelievable, just out of reach but not out of sight. Challenge yourself to be out of debt by a specific date. Make a commitment to saving an exact amount each month.

5. Develop a budget.

A budget is a set of dreams and aspirations. It’s how you really, really want to use money to benefit your family and run your life. Budget to buy the things you really want, and to eliminate the “impulses”, the toys that waste too much of our income. A budget is a map to your destination. Have one and use it!

6. Reduce spending.

Yes, this comes after making a budget, because when you begin getting control of your money (rather than the other way around) you have powerful new reasons to reduce expenses. Most self-made millionaires live far below their means! You should to.

7. Begin investing.

Most of us spend or speculate. Both are roads to disaster! Invest in things you understand. Invest cautiously, wisely, and regularly. The objective is not to “make a killing”, but to get rich over time. Know and obey the distinction between gambling, and putting your money to work for you.

8. Increase assets.

Most people try to increase their income, and that’s a mistake. Making more money means paying more taxes. It takes time and hard work. And, when wealth arrives in the form of cash, it’s easier to spend. Millionaires buy stocks and buildings, they invest in assets that will make them rich – and that are hard to spend on a whim!

9. Reduce taxes.

Most Americans pay more in taxes than for food, clothing and shelter combined! It is your largest expense! The poor and middle class don’t realize how much they pay because it’s deducted from their pay check. The wealthy know there are legal and appropriate ways to shelter income, to invest in socially-responsible ways, and that the tax code encourages this. Learn the tax laws and use them for your benefit! (Yes, it’s the most boring reading you’ll ever do, and worth it!)

10. Use your wealth wisely.

Someone once said, “The reason most of us aren’t rich is that we’d spend it all on ourselves.” Give. Share. Help others. When you use money to make a difference, to have a positive impact, you get the chance to do more. Being greedy and selfish will not draw money to you. Investing in your community, will!

I recently found out that if you open a new account with TD-Ameritrade[formerly TD Waterhouse, Ameritrade and Datek], with $2000 you get 15 free trades. You can do this even if you have an existing account[according to their customer support]. If you deposit $25,000 they’ll give you 25 free trades plus $50. Also if an existing member referred you, they get $50 too!

If anyone wants a referral, let me know and I’ll send you an email!

I also found out that the Indian Funds I mentioned in a previous post trade like Stocks [like the QQQs]. This is actually cheaper than buying mutual funds with TDAmeritrade! Plus there are no front or back-end loads to worry about.

Thanks to Accidental Verbosity for this link on “CEOs say how you treat a waiter can predict a lot about character”.

“Watch out for people who have a situational value system, who can turn the charm on and off depending on the status of the person they are interacting with,” Swanson writes. “Be especially wary of those who are rude to people perceived to be in subordinate roles.”

Here are Swanson’s 33 Unwritten Rules of Management.[Well I guess they written now!]

1: Learn to say, “I don’t know.” If used when appropriate, it will be used often.
2: It is easier to get into something than to get out of it.
3: If you are not criticized, you may not be doing much.
4: Look for what is missing. Many know how to improve what’s there; few can see what isn’t there.
5: Presentation rule: When something appears on a slide presentation, assume the world knows about it and deal with it accordingly.
6: Work for a boss to whom you can tell it like it is. Remember, you can’t pick your family, but you can pick your boss.
7: Constantly review developments to make sure that the actual benefits are what they were supposed to be. Avoid Newton’s Law.
8: However menial and trivial your early assignments may appear, give them your best effort.
9: Persistence or tenacity is the disposition to persevere in spite of difficulties, discouragement or indifference. Don’t be known as a good starter but a poor finisher!
10: In doing your project, don’t wait for others; go after them and make sure it gets done.
11: Confirm the instructions you give others, and their commitments, in writing. Don’t assume it will get done.
12: Don’t be timid: Speak up, express yourself and promote your ideas.
13: Practice shows that those who speak the most knowingly and confidently often end up with the assignment to get the job done.
14: Strive for brevity and clarity in oral and written reports.
15: Be extremely careful in the accuracy of your statements.
16: Don’t overlook the fact that you are working for a boss. Keep him or her informed. Whatever the boss wants, within the bounds of integrity, takes top priority.
17: Promises, schedules and estimates are important instruments in a well-run business. You must make promises — don’t lean on the often-used phrase: “I can’t estimate it because it depends on many uncertain factors.”
18: Never direct a complaint to the top; a serious offense is to “cc” a person’s boss on a copy of a complaint before the person has a chance to respond to the complaint.
19: When interacting with people outside the company, remember that you are always representing the company. Be especially careful of your commitments.
20: Cultivate the habit of boiling matters down to the simplest terms: the proverbial “elevator speech” is the best way.
21: Don’t get excited in engineering emergencies: Keep your feet on the ground.
22: Cultivate the habit of making quick, clean-cut decisions.
23: When making decisions, the “pros” are much easier to deal with than the “cons.” Your boss wants to see both.
24: Don’t ever lose your sense of humor.
25: Have fun at what you do. It will be reflected in you work. No one likes a grump except another grump!
26: Treat the name of your company as if it were your own.
27: Beg for the bad news.
28: You remember 1/3 of what you read, 1/2 of what people tell you, but 100% of what you feel.
29: You can’t polish a sneaker.
30: When facing issues or problems that are becoming drawn-out, “short them to the ground.”
31: When faced with decisions, try to look at them as if you were one level up in the organization. Your perspective will change quickly.
32: A person who is nice to you but rude to the waiter, or to others, is not a nice person. (This rule never fails).
33: Never be afraid to try something new. Remember, an amateur built an ark that survived a flood while a large group of professionals built the Titanic!
Postscript: The qualities of leadership boil down to confidence, dedication, integrity and love.