History Can Tell Us Something

Done! My book on E.F. Hutton's downfall is history and now on to one on the sale of 134-year old firm Lehman Brothers to Shearson American Express in the 80s. You may know that Hutton was also gobbled up by Shearson (they then had the unwieldy name of Shearson Lehman Hutton). I wonder what happened after that, though, because Lehman Brothers is still around. I think some of the old partners rallied together and put together an MBO (Management Buy-Out, like an LBO but not by outsiders) at some point. Interesting.

Looks like Lehman blew up under similar circumstances to Hutton: management hubris. Should be another good read.

Had a meeting this morning with a supplier who has hedge fund and structured note products. It's interesting to hear the difference between what is said to 'laymen' in the business here and how the products are actually structured. One thing I appreciate from my time in Korea is getting to know the products so well (after deconstructing them and getting guys to spill the beans about how they actually work) that I can spot the problems with the stuff they sell here in Canada. Now I can ask the right questions, the downside is not many are able to answer them because only one or two people in the firm offering them may know how they operate--the rest are marketing and admin people who never looked that far into them.

I guess the comment from today's blog is it's good to know what happens behind the scenes so you can anticipate problems...nothing like learning from others' mistakes.

Cool Blog

Just surfing around for a few minutes and found this blog: Kimchi & Me. Funny one. Notice the URL is sojuandi; guess he got to his AA meeting or something. He takes a few funny pics (some I wish I'd taken, like that one for G-Spot bar whose motto is 'slow and easy'....bloody hilarious).

Enjoy. I'm off to bed soon. Sick this weekend...maybe because all I have to do at work is meet people and study my licensing stuff...want to get out there and make a million, but have to wait a couple weeks for this admin stuff to pass. Oh, the humanity!

Another Book

Before making my reading list here is my review of Brokers, Bagmen & Moles. It was pretty good. I have a pretty good idea of how futures work (having been licensed to trade them and learning more of the theoretical stuff when I was in Korea (firms like Aspect and Winton are big traders of client money in this area). What I didn't know is that the trading was so rife with conflicts of interest, lies, deception and outright theft and fraud (at least is was before the culmination of the FBI sting in January 1989...maybe it still is now). Traders like Aspect and Winton now use slippage to refer to price divergences between what they see on a quote and what they get filled at in the market. Now Globex (an electronic system for order placement and matching that was in the planning stage in the last 1980s) is in place so things should be better than back then when real people did all the trading.

Basically, both the CBOT (Chicago Board of Trade) and the Merc (or CME, Chicago Mercantile Exchange) had moles (FBI agents posing as traders) in various pits recording illicit conversations over a two year period. Thing is, not all of the indictments stuck (even with additional information from stoolies) and the scandal didn't seem to have made a dent on the higher-ups and the system in general. Perhaps now things have changed for the better, but I really like to read the history of the exchanges and firms to get a better feel for how things were, how they are now and how the could be. The chronology was a little weird and the authors said a few things again and again; they also went on and on at the end on how the system was not changing (a recurring theme throughout the tome) but overall it was a pretty good read.

Now I'm 57 pages into 295-page Sudden Death: The Rise and Fall of E.F. Hutton. and I like it. I've already read the histories of Goldman Sachs, Morgan Stanley/JP Morgan, Citibank and have lined up a few more (such as Greed & Glory on Wall Street: The Fall of the House of Lehman) to go through in the next few months. I used to wonder why Lee Iacocca said his favorite reading material is biographies; now I know why: because it lets you know how people before you made their make and, more importantly, their thinking throughout it. Usually these movers and shakers were not just lucky: they worked hard, were very persistent and had a vision that they made into reality. They were not just toilers and workers (no one can get super-rich, without a lottery ticket, by doing that)--they had something pretty extraordinary (yet usually quite simple) that they could translate into a monolith of a corporation.

Anyways, I better get back at it...lunch is over.

Advice to Finance Grads

Herewith is my download to those who are thinking of entering the world of finance...much like I did 10+ years ago.

Connections:

As soon as you can meet people who are in the business: both in positions you'd like to be in and others. This will not only give you an entry into the business but will also help solidify your conviction of which path is right and (most importantly) show your interviewers and eventual colleagues that you're not some 100% green recruit (you'll be just 99% green).

My first introduction came at a Finance Night where I met a gent (Lorne Harper) who was with Midland Walwyn (later taken over by Merrill Lynch and then sold to CIBC Wood Gundy). He did nothing for me but later was my regional manager at RBC Dominion Securities. I also met an outstanding institutional salesman with Levesque Beaubien Geoffrion, a David Williams. He was a CFA charterholder and introduced me to his manager (who ended up at Pacific International Securities before succumbing to a heart attack...something that shook some sense into me about enjoying life) and coached me on how one gets into the business.

Everyone after that helped as well, but you never forget those first introductions to the industry that help form your opinion of it...which is part of the reason, I guess, that I went to Finance Night in the first place: to try to show students that you can make it in this business with an SFU BBA.

Public Speaking:

I've always been kind of shy...in an extroverted way, at least. I like speaking out, on my terms, though. So, when it comes to speaking and I have time to put a speech together (especially when I know the topic) I have little problem doing it. The delivery, however, at first was quite brutal. Then I joined Toastmasters with my bud Willi and then joined the Rotary Club of Vancouver Fraserview and ended up as their president for a one-year term...that was enough practice to get many of the kinks (timing, use of humor, enunciation) out.

I used to think that I could get by just by being good one-on-one, but the more I see in this business the more I have come to know that if you want to make it you have to be comfortable in any group and on a variety of topics...and part of that is being comfortable with yourself (a tough tack for this guy).

Appearance:

When you're interviewing or attending seminars and such it's ok to have one suit, one shirt and one tie to go with your one pair of dress shoes. Once you start working, though, you need to look good everyday. For some this is no problem, but for others it's out of their comfort zone (not to mention pocketbook).

Here are the basics (for a man, at least):

• 2 suits with an extra paid of pants each (so you don't spend every night ironing them and can send them to the cleaners and have an extra...plus, pants usually wear out first; one navy and maybe one dark grey);
• 5-6 pair of black/navy dress socks, preferably ones that come up over the calf (never show skin; and socks must match pants or shoes so no brown shoes with black socks and navy pants!);
• 5-7 good dress shirts (2-3 white ones, the rest very boring stripes or windowpane check...nothing too showy);
• 5-7 undershirts (T-type; oddly, you will feel cooler in the summer as sweat will be closer to your skin and it'll also save your dress shirts from pit-stains);
• cufflinks (if you dare);
• 5-7 ties (stripes, simple patterns and solids...nothing gaudy!);
• 2 belts and 2 pair of shoes (one brown the other black, or 2 black--always matching, always; no suspenders but, if you must, never together with a belt);
• a good overcoat (black) and/or trenchcoat (black or camel).

If you have the urge, you can get all of this in Seoul for about CAD 1,100 (plus a grand for the ticket to get there, plus lodging and such). Buying it in Vancouver would be about CAD 3,500+...you do the math.

Courses and Learning:

While in school (or shortly thereafter) make sure you take at least one Business Law course. All business is based on contracts and if you don't know the basics in that you might as well stay out of the industry.

Learn another language (at least a little bit). Most Canadians know a little French, but in addition to that you might learn Mandarin or Cantonese, Japanese, Korean (you know my bias), German or Swiss. These, I think, are the major 'other' languages of business--depending on where you'd like to locate or specialise. Spanish is ok, but most of those countries are in brutal economic shape...just my leaning, though.

Take the CFA. Just do it. It's not only good to have but required in many positions.

All other courses you can take: take them. In Canada the Canadian Securities Course, the Canadian Investment Manager designation courses and others are important background to the industry and skills needed to do the job.

Understand options and futures. Everything in business can be broken down to options theory. It incorporates time value of money, volatility/risk, and intrinsic and (what I call) 'hopes and dreams' value (any market value above intrinsic). Even if you don't go into finance forever you can use it in real estate and other areas as well.

Other Reading:

Read all you can about the business. I've posted quite a few reviews on the blog...in the next little while I'll add a more definitive list for grads--so now you'll have to add your email to my Blogarithm update email thingy and check back.

SFU Finance Club - Finance Night

Last night I stayed late at work. Instead of taking my usual 3:50 train I trundled across the street to the Four Season's Hotel (a heckuva lot better place than we had our Finance Nights at when I was President of the Finance Club (we were always at the Diamond Club up at the school). Finally, maybe because of the downtown focus of SFU now, things are starting to come off of The Hill. Sponsors of the evening were Schweser (the CFA prep people) and SFU's new Global Asset Wealth Management MBA.

Anyways, there were some speakers from various firm:

Gordon Gibbons from Leith Wheeler: He did the talk on research analysts and how everyone wanted to be one in 1999 but no one wanted to touch it in 2000. Makes us finance guys sound like real estate agents coming into a hot market, but it's human. He noted, interestingly, that there are about 100 research analyst jobs in Vancouver, which is disproportionately high compared to Toronto and other major centres. It's also one of the largest areas for finance types to get into (either research or sales in finance) because many of the large corporations based here have been gobbled up by firms in Calgary, Toronto or the U.S.

Robert Fairweather, with International Finance Centre for BC, is the old-timer of the group. He was with the government on overseas assignments for a while (including a stint in Seoul) and then came back and worked in investment banking and then on the IFC initiative. His advice to the students was similar: work hard, be smart and know how to communicate with people. He also added that community involvement (charity and such) is a good idea. It rounds you out and can get you some pretty influential contacts.

Johan Lemmer, Finance VP with VanCity credit union, was the 'kid'. Unfortunately, much of his advice was just like the first two speakers and I think he was also the least comfortable in front of a group. Hint to organizers: put your best speaker first to get things going and your second-best one last to end with a bang. Basically he loved VanCity (which is owned by members and had a decidedly pro-community, granola-like bent to it). This love for firm, however, made him seem a little needy: as if he was just glad to be there...but of course he has a good background as a CA, but I think (at least for me) finance-types can be either (i) 'greedy' guys who are sharp or (ii) elder statesmen who know how the world works and have enough production/revenue to get above it. But to be an activist? No, this is not the kind of thing that I think resonates with finance-types.

All of the speakers said one thing, and it's something that I whole-heartedly agree on: go out and meet with people in the business. Booksmarts are useless without being able to talk the talk and put things in the context of (i) the currrent market, (ii) the sentiment of business in general and (iii) most importantly, the listener. I got my 'big break' at a Finance Night about 11 years ago when I could recite how much the underwriters of a recent deal made out in fees. That got me a meeting with an institutional sales guy downtown and entry into the business. I was asked for my card from a few students (ya, some were shy, but I was feeling a little out of place too--think of that!) so we'll see how many give me a call or email.

It was really interesting to meet some of the students. One of them, a co-president, was very good at speaking and really impressed me. One of the other Past Presidents was also in attendance and her talk was, well, youngish...not quite straight from the mall but not near as polished as the others. But, these things can be learned. I was certainly the same way before getting some real-life experience.

Tomorrow I'll add more on tips to the students (if you're a recent finance grad it may be a good read). Got to work now, later.

The Three-Month (B)itch

Well, good to see my (well, not just my...everyone else in Korea seems to think the same thing) theory of 3 month craziness is sound. Rena, a recent transplant to Ilsan, just north of Seoul (but not too north), has hit the wall.

As for me, my nutty time was about 2 months in. As you know, I came to Korea in October of 2002 and lived with my in-laws (and wife and son) for 6 months before getting my own place in Yeouido. Not that being with them made it any worse...if anything it helped me adjust a lot better. I was always getting tutelage from my wife and her parents on how things in Korea are different from the West (and basically everywhere else in the world). I was working from 6:30AM (after a 1 hour commute) until about 9 or 10PM (plus about 30-45 minutes to get home) for about a month and a half before it happened. I got food-poisoning from some rancid meat or something (I have now learned to stop eating if something seems weird...which is hard to determine in Korea as most things taste off even when they're alright). I was basically puking et al for a couple of days and could do no more than lay in bed and dream of Campbell's Chunky Soup (New England Clam Chowder edition, please). But, being the helpful gal she is, my mother-in-law thought some traditional Korean foods and remedies (one handful of pills looked suspiciously like rabbit droppings) but I would have nothing to do with them. How can you eat Korean food when (i) you're a newly-planted Westerner and (ii) it was Korean food that got me that way?! Eventually, my wife went out to the foreigner market in a nearby mall (they have special stores there for non-Korean/import food) and got a few cans of my favorite.

Without that, and having my wife and her family looking after me, I don't know what might have happened. I've heard of ESL teachers losing it in Korea...a friend of mine's brother, actually, was one. The story is he just went wacko and ended up handcuffed by the police after running down the street naked as a jay-bird screaming gibberish. At least my position (in a financial) firm guaranteed my place in the firm and my monthly pay as well as pretty good hours...I pity teachers who have bad managers in small companies that work them hard and then renege on their pay. That is total crap.

Well, now that I have this position in Canada I better get to work at it...otherwise I may be back in Korea! (Not that there's anything wrong with that.)

Some pics from a while back

Well, finally got my act together and got some pics on the blog. I know you're been waiting eagerly for them. These first ones are from before the snow when we went down to feed the ducks (on a weekday, before I started work, obviously).


The sign we, and everyone else, ignored.


The ducks...


...and the fog. Ooooo...scary!

Kate, and most Korean gals (I think) find things like fog to be very scary. Maybe it's because all of the Korean horror movies use it just before the killer (or whatever) leaps out and wrecks havoc. On to nicer things...


The Village Toy Shop. One of Spencer's favorite places.


Spencer and Winston love the Thomas the Tank Engine scene they set up...Wow!

Here's some trivia for you: two of the narrators of Thomas the Tank Engine (it's a kid's show) have been none other than Beatles' drummer Ringo Starr and foul-mouthed comedian George Carlin! Now, I understand Ringo having a part in it, but Carlin? I've seen the guy in action on Leno and some of his stage comedy...he's not the guy you'd expect to be on a kids' show...who's next? Tommy Lee? Well, I guess if Madonna can write chilren's books...


Here's an interesting toy. "Mom, can I get a jet engine?" "As long as you don't stand behind the exhaust!"

And, a snow shot. Man, it looks like that hill is really big, but it's not. Well, it's enough for Spencer. Even took Winston down a few times too. And, shocking as it seems, Kate had a couple of runs too (she screamed in terror even louder than Spencer did, it hardly registered for Winston--he's a born stunt-pilot).


From way back...a shot of Spencer and I on the Crazy Carpet.


Kate (in her Dad's funky hat) and Winston enjoying the snow.

Well, that's it for this morning. I should also thank Blaine Cook for his site on WiFi Cafes in Vancouver. Now I have to get a wireless thingy for this laptop.

A Look Back at Korea (by some other guy)

I'll have to write something like this too, but I found this pretty interesting. Got it from this site. Wow, he's even in Vancouver! It's about finding girls/women in Korea and I think (if you're a single guy and looking while you're over there) it's about as bang-on as I could write (of course I was never looking, but seen enough of what happens when people do). You could probably use this for gals/guys from anywhere...especially places (like Russia or Venezuela) where the living conditions are a tad worse.

A look back at Korea

It has been almost three years since I have set foot on Korean soil. Time has flown by and I can no look back on Korea with a sense of detachment and logic that previously wasn't there.

I didn't think I would be away from Korea this long, but sometime life takes a person in different directions. I don't think Korean women are any more deceptive than the North American woman, but they can deceive you more easily because you can't speak Korean. In all cultures, there are loyal women and cheaters. Here is some really good advice on dating Korean women:

-She speaks English: I know this is a hard one, but how can you really know each other if you can't communicate. If you are not compatible for the long haul, then it is better to find it out early on in the relationship than later on after you are engaged or married.

-Find someone who doesn't think life in the west is like the set of Friends or some other unrealistic show. Life is tough anywhere and she should know that your better paying career as an ESL teacher will be non-existent in North America. In North America, you'll you the other average joes working at some zombie job just to pay the bills.

-Find a woman who actually can hold down a job and who has some education. You don't want her to be a liability in Korea or back in the States.

-Watch out for the Korean woman who has dated foreign guys in the past. Either she likes new meat, or she is a gold digger. I know it is a blanket statement, but do you really want to be with someone who is with you based on your nationality or race.

-Don't take things too seriously and don't get attached until she has proven herself to you by introducing you as her sweetheart to both her father and mother. If she hasn't done this, then she does not look at you as a serious long-term mate yet or if ever.

-If you leave Korea for any extended period of time and she won't or can't come with you, then cut her loose. Long distance relationships don't work and you'll end up heartbroken in the end. The end of the relationship is the best thing for the both of you.

-Even if you are well off in your home country, or you have a marketable skill that can land you a good job in there, still tell her that you are an average guy in _______ making an average wage (should you return to your home country). If she is a gold digger, you'll find out soon enough.

-If you suspect that she wants you for your citizenship, then tell her that you plan to live in Korea for the rest of your life. This will get rid of any green-card scammer.

-Don't settle. If you don't have a spark with her, or you don't really find her attractive, or you just don't get along, then break it off ASAP. You'd be surprised how quickly a bootie call can turn into a life long obligation.

Again, I am glad for my experiences in Korea, but I have moved on with my life. My job is an average job and here I am not the celebrity but the average guy. But the air is clean; I have space to move and live, I understand this society, and this is a place I can really be confident to put down roots. I just never could feel that way about Korea. It always seemed like a dream that was about to end. It never seemed like a place I could live the rest of my life knowing what life in North America was like. Being with my current girlfriend, I know she is with me, the average joe, and not with me because I am perceived as a celebrity or good-looking in Korea. And no she isn't Korean.

At some point, all of you foreigners in Korea will have to come home (whether that be in GB, Canada, the U.S., Australia, etc.) But how easily will your wife/husband join you and how easy will it be for you wife/husband/kids to integrate in a new culture? These are things you should consider. The money (the amount you can save) is better in Korea, but life is better here in North America.

Bob Peavey
bobpeavey@yahoo.com
756 Bellingham Road
Vancouver, B.C.
Canada

Posted: November 4, 2004

Busy Day, Again

Last week I head there is a Lego display at Science World so we decided to go there on the first day. Man, the place was packed. The price (CAD 27.50 for both of us, our kids we free as they're under 4) seemed a little steep until we got in there. It was full of kids having fun...lots of hands-on things for them to do. Spencer and Winston had so much fun in the 'regular' part of it (and we probably didn't even see everything) that we didn't even see the Lego part. The downside was that on such a busy day it took 30 minutes of waiting to get our White Spot order from the food place in there. If we lived closer to (or in) downtown we'd probably spring for the (CAD 110.00) annual family pass and go there every few weeks (or until the kids got bored of it...which would be a long time, I think).

Took some pics there, and will add them in a bit...so stay tuned.

UPDATE: Here they are!


Kate and the boys lunching in my new 'office'...actually still waiting for furniture in it so I'm in the bullpen for now.


Spencer crams a parachute into an airgun...take a gander at that look of exersion!


Winston is having a ball (hahaha!).


A terrible pic of one of the massive fun-filled rooms.


Another toy...here kids move 'matchheads' from one side to the other in some sort of game of domination.

Also, last night Minaz (he visited me in Seoul in September/October last year, so take a look at those archives for more on his antics there) came by with his newly-found Korean (well, mostly Canadian, she has been here since age 19 and doesn't even like kimchi!) girlfriend. Before his sojourn to Seoul he was quite hesitant about Asian gals; always saying to me that he didn't really have much interest in them and wondering why I had the 'yellow fever' so bad. Well, after just a few weeks in Seoul I guess he's changed his tune.

Actually, I had never met a Korean until about a month before meeting my future wife. The gal was a girlfriend of my bud Carlo's bud who we met in the Philippines (we were there in 1998 for about a month). Well...you know the rest. Come to think about it...there was this one Korean guy I met while doing slave-labour at C.M. Oliver (a local brokerage that is now part of Canaccord). His name was Soon--it was kinda cool to say good-bye with a "See you soon, Soon". (Ya, pretty corny.)

Gotta go, kids are getting up.

Finally on The List.

In July (I think it was) I filled out the form on Korean Blog List to add mine...They just added it now! I even sent a couple of emails a few months ago reminding them...but still it took a while. Ironically, I'm in Vancouver now...haha.

I've been calling my buds in Seoul these last few days. Got one of those el cheapo long distance cards so it won't break the bank. Things in Korea are the same as always, but a couple of them are getting married and one is changing jobs...pretty standard fare. It's good to catch up with them...you know Koreans like to have long term friendships, which is cool.

On to my latest book. I knocked it off on the train-ride home yesterday. It was about 150 pages, but a little light on the content: the title: Careers for Financial Mavens. I picked it up because a bud of my old friend Mike is now going into investments at a bank and I wanted to review it for him. Shawn, if you're reading this: get this book. I wish I had one of these when I was finishing college or high school; it really mapped out the different careers quite well. From accounting to brokerage to money management, venture capital, investment banking and even government jobs...it's all there. The descriptions were true to life, too; which is something I didn't expect from these writers (they had never had a financial job) but they must have interviewed the right people in the right way to get this information down. One glaring mistake was they said that fee-only planners or money managers would charge an annual fee of 5% to 10% of the assets of a plan. That was WAY off. The rate is 0.5% to 1.5%...rookie mistake. Man, if I could make $100,000 for managing $1,000,000 I'd only need one client! Of course, that client wouldn't make any money as the markets usually allow you to make 5% - 10% per year...but, boy, what a racket! Other than that, everything was quite well done. Me being me, I did skim over the accounting and government jobs area...c'mon...if you're out to make money that is not the place to do it normally.

Now I'm on to a more complex book (yay!) Brokers, Bagmen & Moles. It's about a scandal on the Chicago futures markets (apparently at the CBOT and the Merc) where the FBI exposed some sort of underhanded doings in 1989. I like this kind of in-depth reading as it gives me a better insight into the markets, their participants and how things work. Should be good. This and my continued licensing reading (on top of the family stuff) should keep me pretty busy.

Another Self-Serving Book Disguised as a Learning Tool.

Good God, what is with writers these days? Everytime I get a book on finance that's not like Monkey Business or Wall Street Meat (2 very cool books) they always seem to have the same theme: (i) the writer is a professional in the field; (ii) here is the problem with the world; (iii) here is my solution...which involves giving money to his profession (see (i)).

I found another book on my desk that I had forgotten about (didn't make it to the library yet): The Life Insurance Fiasco: How to Avoid it. Since this is now my profession (again) I thought it might be good to see what is out there that I should know and may have missed in the couple of years I was in Korea. Boy, was it brutal. Basically nothing new, even if you're not in the industry, and it followed the formula: (i) the author is a fee-only insurance/financial planner; (ii) most financial planners and insurance salespeople are not that good and make horrendous amounts of commission; and (iii) his advice is to use a fee-only planner (big surprise) and no-commission policies.

Well, that is all fine and good, but there are commissions in prices paid (for almost everything from hotdogs to cars to oil tankers) for good reason: you have to motivate people to 'sell' things and know how they work: in effect, to be a professional. I've been at this business for quite a while from virtually all sides (retail/institutional; sales/product design; front-line and management) and I can say that if there wasn't the commission coming I'd e off doing something else. Don't get me wrong, I love the industry (finance, investment and insurance) but a guy's got to make a living at it for it to make sense. (This, and golf, are the only 2 professions where your ranking is based on your ability to make money...interesting, eh? No wonder so many brokers and such golf.)

Anyways, now that that is out of my system I can now really head to the library and find something interesting to read--not that I don't have enough with studying my re-licensing course as well, but I actually enjoy reading this stuff just for fun.

Have a good weekend.

Accounting Fraud Book...Bit of a Sleeper.

Finished What Every Investor Needs to Know About Accounting Fraud. Well, I didn't really finish it, I read about two-thirds of it and ended up skimming the rest. It's written by a professor, so things are very logical and if you're a student or new to investing it could be a good one to pick up, but for guys like me (who have been in the markets for 10+ years) it didn't add much. In the end, like so many other books out in the last few years, the advice is: buy mutual funds or ETFs (Exchange Traded Funds) and trust no one. Well, thanks, but that doesn't really make you a better investor--it just moves the asset management function to a manager (which the author already said were part of a brutal system) or to a formula (which ends up weighting you in larger companies such as Enron who may end up going under anyways). So, if you're new to accounting and investing it's pretty good, but otherwise look for something with more meat in it.

Actually, that's just what I'm about to do. I spent much of today figuring out a scenario that would help out a client and am a little braindead right now. Time to take a walk to the library, get a new book and get on the train.

The Vulture Investors - A Good Read

Wow, this was a good book. It was written by an editor and writer for Institutional Investor (a great industry mag) and goes into some of the big deals in distressed securities (bankrupt or near bankrupt companies) from 1992 to 1999. Each deal/story is sort of a module (she reiterates some of the legal stipulations in a few places) so you could read one then another out of order. In the end, they all allude to each other and build on each other a little; probably because many of the deals' players overlap (it's a small world) and the tactics used in a previous deal might be looked at or used in a later one.

All in all, if you're looking for a quick way to get to know the movers and shakers of the 1990s, as well as the rules and regulations that allowed them to profit quite handsomely in many cases, this is a very good read. Even if you're 'just' an investor it could be good as well, because it gives a good insight into a world that many do not understand and are scared of (both to the benefit of the vultures).

Chantico!

Yesterday after work I decided to take a try of Starbucks' Chantico (named after an Aztec God). The stuff is called 'drinking chocolate', and that's exactly what you're doing. For $3.15 (CAD, including tax) you get a 6-oz little brown cup (with a brown lid) of (literally) hot chocolate. Mmmmm. Weird, but I felt better as soon as I had it (had been getting over a cold for the last while).

Of course, before telling my wife I had one I had to get her one too so I went out to the store with Spencer last night and got her one. She wasn't all that impressed. I even told her that a German life insurance company had recommended to its policyholders to have some chocolate everyday as research found that doing so lowered the probaility of heart problems. Well, she retorted that it only applies to bitter chocolate, not the crap Starbucks whips up. Hmmmm. Taking a look at the nutritional information I can see there are a TON of calories, including fat calories, in it. Well, I didn't think it would be a diet drink. Actually, it's not too far off the dangers of drinking a Caffe Mocha, so I don't feel all that bad about it.

Got to go...later.

Now I'm in Vancouver

Now I'm in Vancouver. Just had lunch. While walking on the (wet!) streets of downtown Vancouver a guy resembling the Unabomber walked by and said, "Bud." (not just to me, to everyone). He wasn't calling me bud(dy) or anything. This was a solicitation to take him up on buying some marijuana from him. C'mon! I'm in a bloody suit! Well, the last time that happened I was in high school on a Law 12 fieldtrip (and, yes, I did look like a hot prospect to him in my jeans and T-shirt).

So, just like getting elbowed in the ribs by a little old lady in Seoul tells you you're a Seoulite, so does indicate that you've been in Vancouver long enough to be a local. Joy.

Weekend in the Burbs

Ah, back at work. Got a laptop now from the firm...which is very, very cool. Can now work out of the office now--and use the Internet from the various hotspots in the city. I know in Korea EVERY Starbucks has WiFi, but not sure about Vancouver. You'd think they'd have it here, but you never know.

So, on the weekend we went to Ikea for an hour or so. It's pretty cool: there's a playroom for the kids, a restaurant with $1 breakfasts and a bistro with well-priced hotdogs, coffee and cinnamon buns (mmmmm cinnamon buns....). Some of the floorplans are nice, but I wonder what the total pricetag of these little decorating scenarios might be.

Last night watched Windtalkers, about the Navaho Indians (or Native Americans or First Nations Peoples or whatever the name-of-the-day is) who made a code from their native tongue so that Japanese codebreakers couldn't understand what Allied plans in the Pacific were. A very cool flick. John Woo directed it and the story was typical Woo: let the bullets and mayhem do the talking. Light on dialogue and big on action...I liked it a lot.

Time to get to work, later.

Old Friends

Lunch again...just called my old bud Bruce from my SFU days. He's doing well, as usual, and now a VP at the firm he's with. Seems those I know are getting older too; good to know, I guess. As for me, I'm getting into this licensing course now...looks pretty cut-n-dry (as I've been in the industry for 10+ years now)...we'll see. I have a couple of exams in February then we're off to the races.

Man, this is getting pretty boring, eh? Been studying insurance a fair bit and having meetings with the major firms to get a handle on how their products have changed over the last 2 years (they've also had a few mergers here in that time, too). Yesterday I bought a 'crazy carpet' (it's essentially a piece of plastic that lessens the friction coefficient between you and the snow--it can go real fast if you want it to!) so I'd like to try it out tonight with Spencer if the snow is still on the sledding hills. It's been cold lately but not much fresh snow at all. Would be a shame to miss it as I looked for a week to even find this one.

Ok, back to studying!

UPDATE: This is unreal...only in Korea. It seems that the credit card binge that Koreans went through in the late 1990s is still around. The government offered great tax incentives to use plastic (10% tax credit for all amounts charged if you charged over 10% of your income--that means 2%+ lower tax rate!) got the need to charge it ingrained quickly. However, 1997 punched the stuffing out of the economy and most consumers pocketbooks, but they continue to rack up the bills. So what does the government do: offers them civil service jobs to help pay down their debts and even subsidize their housing! Um, I thought North Korea was the Socialist state.

Finished a few books

Oh ya, I've been up to a bit of reading lately. Finished House of Cards. It was very, very good. At the end Brewer only spent about 3 pages getting philospohical, which was great. So many authors add a lot of crap at the end of their books to get the page count up. I was happy to see she decided to cram in more facts than feelings. A good read...get it.

For some reason I got out High Octane Recruiting--for really no reason at all except that I was just recruited and wanted to see what it was like on the other side. If you're looking for a job or looking to be a recruiter, hiring manager or human recource person this could be a good read. I skimmed it during my 30 minutes on the train last night, so it's not all that heavy.

Also blew threw The Facts of Life. It was pretty good, if you read the boxes of info and not all the bloody text. For me it was a 5-minute reader; for those not into insurance it might take 20 minutes to figure it out. Not all that tough a read; but don't buy it, that's for sure.

Now I have The Vulture Investors and What Every Investor Needs to Know About Accounting Fraud on deck. Both are not skimmers, so may be a bit before I finish them. Vulture Investors looks good so far...and one that my bud Jo in Yeouido should take a read of, for sure (he's into value investing in a big way).

Off to work!

Drunk Bus Drivers

Recently a bus driver was suspended for being found drunk while on the job. Now MADD (Mothers Against Drunk Drivers) is proposing that bus drivers be randomly tested for drugs and drinking so as to protect the public from such an event happening again--or worse, someone being injured or killed as a result.

On the radio (CFUN) the DJ said she did not support such measures as it might be (i) an invasion of privacy and (ii) have a stigma attached to it if the results came back positive. Her example was: a driver has a couple of days off and had a good time and then has to submit to a drug/drinking test and marijuana is found to be present in his system still and then there is a whole set or preceedings like counselling, social stigma and possible loss of his job. Well, Hello! Marijuana is presently illegal in Canada and a I, as a rider, sure as heck don't want my driver to have anything like that in him when he's behind the wheel.

That reminds me of a story from Vernon Mike (a regular commentor here). In high school he heard a gal complain that new (age 16) drivers would lose their license if they were found drinking and driving (not just a 24-hour suspension or lesser penalties as per normal). Well, Hello! If you're under 19 you're not supposed to be drinking in the first place; and I'm sure that an inexperienced driver is even more of a danger when tanked up on beer.

Ok, that's my post...pretty ranty, but I don't get on these tangents much, thankfully.

Lots of work to do today, later.

Back From Lunch

Exciting title, eh? Well, what can I say...I'm a wild and crazy guy. Had sushi...good stuff. You may know that Vancouver is a haven for sushi-lovers...there's one about every block or so here. Anyhoo, enough about that. I'm starting to get a little excited about this job here. The office is looking better and better and I'm actually looking forward to taking my licensing course next week (lasts until about the end of the month). Been reading up on it and finding that not only have I not forgotten much of my insurance info but the concepts actually seem pretty interesting as well. It's not hedge funds and the like (my area while I was in Korea) but it can be very beneficial. The best thing is: I don't have to go and get clients by knocking on doors. The deal is: the brokers here (who have little to do with insurance) are to refer people to me to take care of, then I hand them right back over to them for their investment needs. Pretty good deal. This way, I can focus on one area and (we're all hoping) do well here.

Ok, time for coffee then get back at 'er.

Oh, if you're looking for the cure for insomnia it's right here.

Going to Korea

I get the question of "What is it like in Korea" a lot from friends, family and people who read the blog and my Virtual Tourist pages. Well, I hope this little blog and my VT tips help, but here is a longer list of what it's like to work, teach and/or live in Korea for an extended time:

If you're looking to go there to work you should get all the good/bad news first. Read all the blogs and webpages you can and don't believe the dreamy stories you hear from recruiters. Shawn Matthews has a pretty good book for sale on his blog (I reviewed it on my blog) that might be of interest.

Challenges about teaching (or living/working in general) in Korea:

(i) You make only about 2,000,000 won (which translates to about 1,800 USD a month) but you can make 50-100% more a month once you get into it and book some juicy privates (by this I mean private lessons, not aggressive stuff). If you're into finance you can make more as there are few foreigners who come to Korea for a limited time, let alone an extended visit of a few years.

(ii) The schools may try to screw you over if not for profit but because they, themselves, are losing money hand-over-fist. It happens. It also can happen in regular firms, but the schools are a little famous for it.

(iii) The accomodation can be less than desireable/as advertised. You won't really know until you get there and check it out. If you're a high-priced expat you may be able to get lodging at the swanky serviced reseidences like Fraser Suites.

(iv) If you're referred to or recruited by a current teacher you may not be getting the real goods: many are required by their employers to rope-a-dope a new teacher before being able to bow out of their contract early. Ask a former teacher for the goods on the firm and its people, but also keep in mind that they may have left for any number of reasons.

(v) Koreans like White people...then Asians then those of a darker tone. Call it racist or whatever you like, it's how things are. They also revere men over women and older people over younger ones (although they seem to prefer younger foreign teachers to older ones).

(vi) If you screw up with a Korean and they like you then it's ok. If they don't end up liking you then you're dead no matter what you do. They're a little set in their ways like that. However, if they need you then you have some rope (and a bargaining chip).

(vii) Koreans are horrendously emotional and you'll probably never fully understand their 'logic' (I was there 2 years and married to my wife for 5 years....and get daily reminders of this...and I don't think it's just me; she says the same thing about us Westerners too). Just figure out as much as you can not to get into too much trouble (don't speak up to superiors/older people;
praise in public/complain or question in private...and read all my Local Customs in Seoul and South Korea!).

(viii) Know that you are a guest in Korea and will never be an equal to them. It's kind of like being on a pedestle that's in a big hole...you're raised up, but still below to some degree). Only being there a long time and/or marrying one can get you 'in' there (and even then not 100%). Even a Korean son-in-law is considered a guest in the bride's parents' house for 99 years (hint: Koreans think long term on some things).

(ix) Koreans like good looking people (no problem for you). If you're disfigured at all then you're got a much tougher row to ho than here where there are anti-discrimination laws and wheelchair parking spaces. Just another hurdle.

(x) The language will always be an exclusionary thing...you'll not know it when you get there and few Koreans speak English with anything near fluency. Just learn as much as you can as quickly as possible. Mike in London, Ontario is doing just that now.

Opportunities about Korea:

(i) Since you're a foreigner you're treated better than normal Koreans: shorter hours, no need to attend meetings, a degree of respect (which you need to reciprocate in short order).

(ii) You can make good money there with privates and the lower cost of living. With accomodation paid for you can either bank a grand or so a month (I know many that do) and travel the country as well. Just get to know the cheaper markets for things (tactics in my tips, of course).

(iii) Koreans are generally friendly people. If you connect with them they'll NEVER forget you. I saw a guy I worked with a bit a few years ago. A whole-hearted hello and have dinner with me right now was what he gave me...not a simple hi and how are you.

(iv) If you like mountains of spicy food Korea is the place for you. It makes
Tex-Mex look like fish 'n' chips.

Hmmmm....bad outweighs the good in quantity, but the quality of the good can be gigantic.

Ok, that's it for now out of me.

In Pretty Darn Early This Morning.

Ah, to be in downtown Vancouver at 6:30AM. It's briskly cold this morning but I was up at 4AM again (why do I keep doing this?) and I was a little bored at 5:30 so I got dressed and walked the 40 mins it takes to get down to the train. Actually it takes longer to walk, but I ran a bit to keep to schedule (train runs on the 10s and 40s of the hour...boy, do I miss Seoul's subways!). Just made the thing and managed to sweat in my seat for the first 10 minutes of the ride (ya, I sweat a bit). Called my wife when I got here...she thought I was crazy but I'd rather get some exercise than wake her up to drive me to the rails (what a sweetheart, eh?).

Just got in and on a PC-loaner at work as I await my super-duper laptop. Met a few of the guys. Union Securities is a local shop (Vancouver is the head office...nice, no jerks in Toronto to cow-tow to...sorry Torontonians) and many of the guys do VSE (read: penny-stock) trading, but I hear they are doing more 'investment grade' stuff as well. Just as well, because then their clients may not have seen what I will show them (much of my area is insurance, but there is a definite investment bent to some of it) and then I can be seen as the 'safe money guy'--which is fine by me.

All in all, yesterday (my first day) was a bit of a wash...but managed to get a list of 10 things to do before I can really put the tires to the pavement here (and start making the big money) and knocked off 2 of them already. So not too bad a start. Many of the roadblocks I had in my head are dissipating, so we'll see how things go these next few weeks and months and go from there.

So, if things go well I'll have to plan a trip to Seoul in the next while: either Spring or Fall. Would love to head back there and see my buds again. Of course if my in-laws (who can't seem to stay retired) have an inkling to start some business and need me to pinch-hit for them (I'm the only one fluent in English in the family) it may be more for-sure than dream to get back there for a couple of weeks. I just have to keep from staying there 2 years from a 3 week trip as I did last time.

Checking in.

Hey, it's been a couple of days since my last post; and they've been getting shorter, as you might have noticed. Part of the reason is little to write on lately as it's been just household/kid stuff. Part is also that I've been working on my Virtual Tourist pages every morning, adding about 2-4 tips a day and moved many of the more 'Korean' tips from my Seoul pages...hope all you readers get a chance to take a look at it and read a few. I'm trying to get as many of the little things that most guidebooks don't put in their tomes so that if/when you go to Korea (or if you're already there) you can have a better feel for the place (and it's seemingly backward logic at times).

Yesterday we did go snow-sliding, something that is quite rare in Vancouver as there is usually good (lots) of snow only every 3-4 years, and it hardly ever stays around long. This year is a banner sledding year, though. Unfortunately, all of the stores are sold out of the few sleds they had so we had to use a diaper box. It worked pretty well (as it's strong and laminated/glossy) but it died after about 15 runs (just enough for Spencer, whew!). I'll continue to hunt for a 'real' sled for them (and me...hehe).

Oh man, thought Spencer might be down for a nap for a while but sounds like he's up and about. Later.

More Books

Ug. Ever start reading a book with high hopes and then have it disappoint you so much you have to just close the cover on it forever? Well, that's what happened with Karaoke Nation. Man, this thing stunk. Ostensibly it's about how a dude with no real business background started a dot.com and watched it implode; but he goes off on all these tangents (especially about his wife, school and how business is done, as if he knows) that I found myself skimming it for contect after just 50 of the 250 pages. Good thing I didn't pay for it (got it from the good ol' library).

I usually get 3 books, thankfully, so now I'm on House of Cards: Confessions of an Enron Executive. It's much better, already into about 45 of its 270-odd pages.

Spencer just came in the room. Better log-off for a while.

The End of All-Kid Days

Looks like I'll be busier next week. A friend of mine at Union Securities has convinced me to try a stint there and the official approval from the CEO (who was in Hawaii SCUBA diving, and not Phuket, thankfully) has come down. Now all I need is an office and (laptop) computer. Oh ya, and I need to get licensed for the work too--that would be a good idea. Luckily I have 10 years in the business and about 5 years in this kind of job specifically (advanced financial planning) so this position should not be a tall order. In fact, it's like my old job I had before I went to Korea to do more investment banking/institutional stuff. The big difference is that instead of getting all the clients myself I have 50 or so brokers who would be referring clients to me. I like that. Then I can spend more of my time actually doing work instead of marketing and such. As well, the firm picks up all the nickel-and-dime fees that as an independent (which I was before) I had to cover myself--they take a bigger cut of the commission, but I figure the referral thing has to out-weigh that.

So, here's my plan. I'll take as early a train as I can into work (they start at 6AM at the office, according to Toronto's stockmarket hours) and then take it easy from 1PM or 2PM and take the first train home (maybe at 4PM). I much rather going to bed early (been hitting the hay at about 9PM lately) and being early to rise (about 4AM these days). As well, if the kids get sick again then my wife can care for them late at night and hand them off to me in the morning.

We'll see how this goes for 3 or 6 months and if it continues to look good then I'll make up my mind to stay here longer. In the meantime, though--before big bucks roll in--I think my mind will be somewhat on Korea and/or working elsewhere. It's so tough to beat the traveling/working abroad bug once you've gone elsewhere, you know. It's so comfortable here, maybe too comfortable. But, Vancouver is a kick-ass place to live and it's great for the kids and we can go to Korea 1-2 times a year for visiting and shopping, so maybe I can have the best of both worlds. Hmmmmmm.

Also, it will be nice to get back to doing something other than kiddie stuff, which I love doing, but a man needs to work, too. I can read or whatever (got a laptop!) for 30 minutes each way on the train and be a little more productive. I've been back for about 8 weeks and now I know why people go back to work or keep busy after they retire...have to keep in motion!

On that note, I better get moving.

A Typical Road-Trip

Yesterday (yes the timestamp is correct, I am blogging at 4:49AM; seems I sleep when the boys do at 9PM but can't wake up again until morning) we went for a drive. Well, I insisted (Kate demurred) because being cooped up at home with only a daily walk down to the ducks (in a nearby pond) is a little much for me. So we set of in the car heading East. I looked through the mapbook and found Golden Ears Park (named for the mountains that, I guess, look like golden ears; more info here). It was too far to go to in one drive so we stopped at a little city park in Maple Ridge for a bit, too. That was probably the highlight, because Golden Ears was a long drive further and ended up being gigantic (meaning: we had to drive even further to get to anything).

We gave Mike Lake a try (it's the first 'attraction' once you get into the park).We went down a gravel road for a bit but then it got narrower and narrower and darker as well (as the trees closed in). Needless to say, my city-slicker wife thought that it was a haven for bears and that the road MUST be one-way (it wasn't, you just have to drive slowly and carefully). I've spent a fair bit of time in the bush, so it was not problem for me but even I was disappointed when I saw the 'lake'. It was not exactly the thing of postcards. Oh well, head home.

We checked out a custom home subdivision going up near the park on the way back. The houses were large, pretty damn similar for being custom-built, had tiny yards and started at $400,000! Good God! For 400k I cold get a nice place in the city and not need to drive 3km to get milk! And good luck getting pizza delivered out there. Well, Seoul has some things right, when they 'make' a city they have everything there: apartments, restaurants, supermarkets, schools, businesses...everything. You could spend your whole life in one spot, if you wanted, maybe even one building. Here everything is spread out like crazy. The problem of having so/too much land (factoid: Canada is 101 TIMES larger than South Korea with only 34 million people compared to 48 million: making Korea about 175 TIMES denser, no pun intended).

On the way back it seems all those curvey park roads got Spencer's gut in a knot and he puked 만두국/man-doo-gook (dumpling soup) all over the car. We stopped to clean it out and two 'courteous' Maple Ridge teenagers (read: farm hicks) walked by and said: "Mmmm...chunky!" Thanks a lot, pricks. These boys of mine could not be more different. Spencer pukes at the drop of a hat, is scared of large bodies of water and learned to talk later than Winston who can tell you what sound a sheep, duck, dog and cat makes, almost throws himself into any standing water and you can hardly make him throw up.

I've been thinking of making Hometown: Vancouver but I think I won't bother, for a few reasons. One is that I'll have to code all the counters, comment thingy and other applets I have in this blog. Two: what if I move again (now that I've been out of the country I may leave again) or want to add to my Korean hijinx? Three, I think all of my posts will have a bit of Korea in them (being married to one and all) so it seems more appropriate to have one named after a place in Korea rather than Canada. So, stay tuned to this station for more fascinating facts and scintillating stories!

Big Mistakes

I finished that book I mentioned a while back. Actually, I turned the last page the day after that post, but finally got around to reviewing it. It's interesting. Tells why our experiences, lack of knowledge (specifically knowledge of statistics) and over-inflated egos (all typical human traits which I share as well) can lead to big mistakes with money. I'm not saying that my days of screw-ups are over, but it's interesting to know where it might come from.

This book was a lot better than The Millionaire Next Door, which was an ex-post (backward-looking) analysis of success but unless you were an entrepreneur or have the temperament to do the things that their selection of wealthy people did then it's probably not the path for you. Also, some of the statistics in Millionaire were perhaps a little off. They said that most millionaires drive F-Series Ford trucks. Well, that it was not Ferraris was interesting enough, but to be F-Series trucks is not: they are the most popular kinds of truck on the planet; from the base F-150 to the Harley Davidson F-350s. That a millionaire might own one (perhaps for hauling his motorhome or boat or to go hunting in) is not all that far-fetched.

Anyhoo, back to Big Mistakes, as I'll call it. Two professors, Dr. Robert Grauer and Dr. Herbert Grubel introduced this to me in business school. Dr. Grauer was taught by Dr. William Sharpe (maker of the Sharpe Ratio we use so much in finance) and is so into Capital Asset Pricing Model (CAPM, as it's called) that we secretly called him Captain Cap-M. Dr. Grubel was so famous/infamous that I head about him before even going to one of his classes, when I was treeplanting, no less. An Austrian planter heard that I was into economics/business and he said I HAVE to learn from Herr Dr. Grubel: "He is one of the most famous economists in the world--but he is hated." Why? Well, he is from the neo-Classical camp that is not into government handouts and believes the free markets are pretty perfect mechanisms. I have to agree, to a large extent.

Crap, digressed again. So, the question put to the class by Dr. Grauer was, "Let's say I give you $5,000." "Yay!" everyone exclaimed. "No, not real money." "Boo!" "And you have a choice to take it or risk it in a coin-toss. Heads you get $10,000; tails you walk away with nothing." Some said take the $5,000 but I was one of the ones risking it on a coin-toss. He singled me out, of course. "Why? Why risk $5,000?" "Well, the $5,000 was not 'real money'...why not go for it? The probabilistic outcome is $5,000 anyways, but getting $10,000 would be cool. And, I have many earning years to make it back if I lose it and even if I get it I'll probably use it to paydown my student loans (which are interest-free, so no real short-term gain there)." "Yes," he replied, "but if you have a wife to go home to how can you explain that you lost $5,000?" "I don't have a wife, so I have only myself to live with, and I can live with that."

Thus, we see one of the major tenets of the book: when people 'think' they are not dealing with real money and only they will know about it then they seem to make bad mistakes. A few cases in point from my life in the last few weeks:

My father-in-law bought a new couch and loveseat. The cost was about $1,000. He also paid $30 for 'insurance' for it (in case of stains, that sort of thing). Foolish, as he sees now. Would he pay $30 for insurance for his older furniture (which is worth a lot more)? No way. But $30 on top of $1,000 and fearing the unknown with the new stuff made him think it was a good deal (actually, a massive portion, about 50%, of the $30 is commission for the salesguy, not for claims). Also, the color is chocolate: how can you get a stain on that? And, as if you'd have the receipts and the motivation to bring in your couch for whatever needs to be fixed with it should something occur. Just not a good idea. At least the lesson learned came at a cheap price.

Next: buying a car. Ever wonder why they have offices for salespeople (especially the guys flogging the high-margin ones like undercoating)? Well, I'm pretty sure it's not because they want to make things look fancy: it makes things intimate. When I started in brokerage we all had our own office and I wondered how guys in the 'bullpen' (are with just dividers for walls) had meetings. They didn't, they used side rooms, but it was not near as intimate as having your own office with your degrees on the wall. Back to cars, though. With an office there are fewer distractions, too (like no clocks or windows in a Vegas casino) so you might end up thinking it's not real money. Step back, though. My sis-in-law had one of these meetings and they added on $89 for floormats. FLOORMATS!?! They're bloody carpet!! And for the $30,000 you're paying for the car they better be bloody included. But, if they are in the list (which the salesguy usually just delivers orally, not written down--that would be too logical, and he wants emotion to rule) and just added on (plus 12% tax on everything!) then $100 for 4 pieces of carpet you could get for $10 seems ok. (Actually my old boss even took out all the floormats in his car and replaced them with like-colored carpet so he could have factory-new mats in it when he sold it: good idea.)

Or how about getting a draw at work. For those not in the business, a draw is a monthly cheque you get from your employer that goes against future commission income. If you make more then you get that; if not, then you get the draw until (i) you do make more or (ii) they fire your ass. Well, a draw is sometimes non-forgivable: if you quit or are fired you have to pay it back (it's a no-interest loan, not salary). My wife HATES the draw, but it's a part of the business in many firms/positions. She would rather we just spend savings instead of getting a draw because it is debt. Well, I figure that money is money. If we can get a draw and then bank most/all of it then it's not technically a debt (especially if all of it is in there). If the job doesn't work out I just pay it back (net of any earnings) and we're done. In the meantime 2 things have happened: (i) we've established an emergency reserve so we need not go into debt if something happens that we need to take care of and (ii) we have a forced-savings plan so when we do make money maybe (just maybe) that draw money just goes to savings forever and then we can be ahead of the game. Lesser mortals would spend the draw, but my wife is pretty swift...we won't be using it at all unless absolutely necessary.

So, I'd recommend this book. I got it from the library, so even more savings there. Page 57 has an error in it, though (already emailed the authors) in that they spelled Burnaby (an area of Vancouver) as Barnaby. Amazingly no one reported it to them. There's my mark on economics literature!