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ExGen Finance

How to spend $67.9 million

Jumping for joySo, you’ve just been handed a $67.9 million dollar bonus (e.g. Lloyd Blankfein). What are you going to do with it? If you’ve got that kind of money in your bank account, I’m pretty sure you’ve already got a plan or two for that cash. But what about the rest of us – those without that previous experience? In case you haven’t had a chance to spend that much money lately, here are a few things you can put on your shopping list next year:

Westport 164 – A 164 foot yacht from Westport Yachts that sleeps 12 in six state rooms, and features a top-deck VIP suite with its own sun deck. ($31.5M)

Miami Beach home – Over 15,000 square feet, with 9 bedrooms and 10 baths, this property features a 2 bedroom 2 bath guest house that alone probably costs more than many of our own homes. ($13.9M)

Ballast Key – A 13-acre private island with two residences and a palm tree lined beach in the Florida Keys. ($11.4M)

Bugatti Veyron 16.4 – The world’s most expensive production car features a 16-cylinder powerplant that produces 1,001 HP. ($1.6M)

So with a fat-daddy bonus of $68 million dollars, what could you buy? How about a private island, a waterfront mansion in Miami Beach, the largest production yacht in the world, and the most expensive production car in the world. All of this, and you would still have $9.5 million left over without even negotiating any prices down.

And if it were me (don’t I wish?), I’d invest that $9.5 million in some Google stock and start my shopping spree all over again in a few months!

[tags]Money, Finance, Rich, Dreams [/tags]

Categories
ExGen Finance

Lloyd Blankfein is a pimp

Suitcase full of moneyLloyd Blankfein, the CEO for Goldman Sachs Group Inc., has just been awarded a $67.9 million bonus for 2007. The payout will be distributed as $26.8 million in cash and $41.1 million in restricted shares and options. Most of us would be lucky to make $68 million in our lifetime, and this guy is getting this as his annual bonus!

Man… I am definitely in the wrong business!

Read the Reuters or Bloomberg stories for more info.

[tags]Money, Wall Street, Finance, 2007[/tags]

Categories
ExGen

The Foundation for Victory – An Examination of the American Experience at Valley Forge

Victory was still years away when General George Washington led the Continental Army into winter encampment at Valley Forge, Pennsylvania in December of 1777. The Army was to suffer greatly and overcome numerous obstacles during the winter of 1777-1778, but a new efficient, effective fighting force would emerge with the help of a foreign solder, and an allegiance with another nation. The foundation for victory was to be created this winter, but the Army would have to survive first.

Until late 1776, the American Revolution was fought by a small Army and local militia. Enlistments were typically for one year, and each winter the Army went through a period of reorganization and restructuring. Looking to establish a stronger, more organized fighting force, Congress adopted a plan in September, 1776 that established a permanent standing army and set the length of enlistment for the duration of the war. A little over a year later, the Continental Army marched into Valley Forge for winter encampment. This would mark the first winter since the beginning of the war that General Washington would not have to dwell on the leadership, manning, and structure of his Army. Instead, time and effort could be spent on reviewing the previous year’s campaign and improving battlefield performance.

On December 19, 1777 General Washington led his troops to a high point eighteen miles west of the British-held Philadelphia. His Army, twelve-thousand strong, was on the eve of a winter which would see many die from exposure, disease, and starvation. The layer of snow on the ground was six inches deep, and the first task at hand was to begin building shelter for the troops. It was not until the middle of January when enough huts were constructed for the entire Army to be protected from the elements of nature. Even then, many of the men were without blankets or adequate clothing such as coats, shirts, or shoes to keep them healthy and warm. Dysentery and typhus were common ailments. Hunger plagued the men for the first half of the winter, when food supplies were short. There was talk of mutiny among the Army, but in early March of 1778 a new quartermaster general was appointed and much needed supplies began to arrive in Valley Forge.

Less than a month earlier, on February 23, 1778, a man named Frederick von Steuben arrived at Valley Forge. Steuben, with the aid of falsified credentials by Benjamin Franklin, presented himself to Congress as a former general in the King of Prussia’s Army. In reality, von Steuben was only a captain of the general staff, but shortly after his assignment with General Washington he was appointed a Major General in the Continental Army. ‘Baron’ von Steuben was given the responsibility of training the green Army, and he began the task by teaching drill to a company of one-hundred men. Steuben created a simplified drill manual based on modern European advances in warfare, and emphasized improved execution over speed. The importance of bayonet fighting was also instructed. Soon, this model company was a well-disciplined unit and began to train the remaining units at Valley Forge. By the time they would march out of winter encampment in June of 1778, the Continental Army had been transformed into an effective fighting force prepared to tackle the challenges awaiting them.

On May 4, 1778, slightly over a month before the Continentals would leave Valley Forge, Congress ratified the Treaty of Alliance between France and the United States. The allegiance with France boosted already growing spirits in the camp because it brought with it the possibility of additional arms, clothing, monetary aid, and other foreign goods. On June 18, 1778, fearing a blockade by French ships, the British withdrew from Philadelphia and moved toward New York City. The next day, Washington ordered his troops out of Valley Forge in pursuit of the British. Just over a week later, the two armies fought to a standoff at the Battle of Monmouth. Finally, on July 10, 1778, the British threat to the Continental Army eased slightly as France officially declared war against Britain and the American Revolution began to transform into a world war.

When the Continental Army marched into Valley Forge in December of 1777, they had little idea of the changes that were to take place over that winter. Through much suffering and despair, constant training and preparing, and finally with the boost of morale and confidence associated with French allegiance, General Washington’s Army emerged the following June motivated and prepared for the long fight ahead. It would be another five years before the end of the hostilities, but the foundation for victory was created and instilled during the winter encampment at Valley Forge, Pennsylvania.

To learn more about Valley Forge on your own, take a look at Remember Valley Forge: Patriots, Tories, and Redcoats Tell Their Stories (The Remember Series) by David Garland, or Valley Forge by Thomas B. Allen.
[tags]Military, History, Army, Revolution [/tags]

Categories
ExGen

Renewable energy – wind power

Renewable energy - windmillThe United States’ dependence on fossil fuels is a little scary. Look at what it has gotten us into in the Persian Gulf (twice!). Using corn as fuel is also a little scary, but in a different way. Have you ever thought about how many people in the world are literally starving to death? How would it look if the United States grows an overabundance of food, only to burn it? What kind of impact would that have on our image as a nation? As I was thinking about these ideas, I remembered a website from GE called ecomagination that I came across when I was job hunting after college. I remembered it as being a fun and ‘flashy’ site about GE’s commitment to the environment. The one part of that site (and the company’s other sites) that I enjoyed the most was the section on wind energy.

How does wind energy work? First, let’s talk a little bit about wind. What is it? What causes wind? Wind is caused, indirectly, by the sun. The sun heats up the air over land more quickly than the air over the water. As the warmer air expands and rises, the heavier, cooler air rushes into the vacated place, creating wind. This effect is reversed at night, when the air over the land cools more quickly than the air over the water.

Want to learn enough about wind to impress everyone you know (except maybe a wind engineer)? Then look here or here.

To capture the wind’s energy, a turbine’s blades rely on the laws of physics and aerodynamics. Lift is created as wind flows over the airfoils (the blades), creating a low-pressure pocket of air on the downwind side of the blades, causing them to turn. These blades are connected to a vertical- or horizontal-axis drive shaft (depending on the type of wind machine used) that turns and electric generator. In this process, the kinetic energy of the wind is converted to mechanical energy and then converted to electricity.

How cool would it be if we could develop a system of renewable energy based on wind, and then give our excessive fossil fuel dependence the finger? While you’re thinking about it, check out this award-winning video from EPURON GmbH, a subsidiary of Conergy AG, entitled Power of Wind. Or if you like YouTube, click here.

Feeling the love after thinking about wind power? Check out this DMB video, and then go get yourself a hug.
[tags]Energy, Environment, Wind, Conservation [/tags]

Categories
ExGen Random

Climbing Mt. Fuji

Mt Fuji SunriseWith a summit elevation of 12,388 feet (3776 meters), Mount Fuji (Fuji-san) is Japan’s highest mountain. To be more accurate, Mt. Fuji is a dormant volcano west of Tokyo, with its last eruption occurring in 1707. I have seen the mountain numerous times during my time in traveling in Japan, and its symmetry, power and beauty have amazed me each time. In my mind, it is clear why Fuji-san is so respected and honored throughout Japan and the world (there is even a book about the Microsoft interview process called How Would You Move Mount Fuji). In fact, I can clearly recall the jealousy I felt when one of my friends returned with his walking stick fully stamped from climbing Mt. Fuji. Although I have never set foot on the mountain, it is one of my personal life goals to watch the sun rise from the summit and experience first-hand the magic of that moment.

Read more and see additional Mount Fuji photos after the jump.

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ExGen

Make a Resolution to Teach Kids Money Management Skills


Click here to start saving with ING Direct!

Resolutions are usually a New Year’s tradition, but resolving to help a child develop good financial habits is a worthy commitment any time of the year.

“We all know the importance of literacy in the lives of our children,” says Gil Llanas, director of the Northwestern Mutual Foundation. “We spend hours reading books with them, but how many of us realize that our children need to be literate about money matters, too?”

TheMint.org is a Web site that makes learning about money management a fun experience for children grades six to 12. The site is a partnership between the Northwestern Mutual Foundation and the National Council for Economic Education (NCEE), and offers a variety of information, games and activities illustrating the ABC’s of personal finance.

A 2006 Jump$tart Coalition study showed that high school seniors receive a failing grade in financial literacy, yet only a small percentage of schools offer such classes. “Therefore, this all-important task lies with a parent,” says Llanas, “and every day is the right day to make financial literacy a reality for your child.”

A Parent’s Roadmap

Where to begin? For parents, there are two key ways to help their children understand responsible money management:

* Create conversations about money. Parents should create conversations about money with their children — not lectures, but casual remarks and observations on situations that arise in the normal course of the day. Topics could include why money is valuable, where it comes from, where it goes, what happens when you borrow it, the importance of a “rainy day fund,” what it means to invest or how to live on a budget.

* Model responsible behavior. Parents should also review their own financial habits to be sure they’re modeling responsible behavior. It’s no secret that children quietly observe adults — we’re teaching financial behavior all the time, whether we mean to or not.

Covering All the Angles

Financial headlines are all about the stock market, millionaires and blue-chip companies, so it can be difficult to know where to start when talking about finance with a child. Helping a child, at any age, discover how to manage money should start with the basics:

* Saving: This is easy for some, harder for others. Some tricks to saving more money include paying yourself first, linking saving to expenses, keeping a money diary, cutting expenses and being a smart shopper.

* Spending: This is where being a smart shopper pays off, especially since spending comes easy to all of us. Good spenders are careful with money and make smart decisions — making the money they have go farther.

* Investing: Smart savers put some of their money in investments, where it will earn more than in a savings account. Investments are money set aside for the long-term — years in the future.

* Giving: Teaching children to “share” their money demonstrates an understanding of others that are less fortunate, and that those of us who “have” things should help those who “have less” than we do.

* Tracking: Money can slip through one’s fingers easily. Determining and sticking to a budget is important. So it’s a good idea to keep track of money that’s coming in (income) and going out (expenses).

About TheMint.org

TheMint.org features information, games, calculators and activities for kids, parents and teachers to help bring financial literacy to life. Most sections are written in a kid-friendly style so families can work together — or older children can work independently in learning money lessons. However, some sections have been developed exclusively for teachers and parents. New to the site in 2008 are short, interactive polls allowing users to weigh in on current financial literacy topics affecting Americans.

Courtesy ARAcontent

[tags]Education, Money, Saving, Parenting, Children[/tags]

Categories
ExGen

The impacts of managerial decision making

Some decisions are made with great thought and planning while others are made off-the-cuff, with little information to help guide the course of action. Some decisions are monumental in scope, while others are comparatively minuscule. In each, the decision maker must make a judgment that will result in some final unknown, but hopefully foreseen, outcome. In the following passages we will examine two decisions, including the situation leading up to the decision, the decision itself, and the aftermath of making the decision. The first decision is from military history; the second from my personal corporate work experience. The intent of this article is show that the impact of one decision has the ability to make or break an entire operation. So let’s get on with it…

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ExGen

Tactics and techniques for distributive bargaining

Exceptional People SilhouettedMany consider collective bargaining to be the foundation of the business relationship between employer and employee. During the contract negotiation process, representatives from companies and labor unions are required to bargain in good faith. Beyond this, there are many tactics and techniques that can be used by both sides to achieve their desired objectives. An analysis of a few of these methods can lead to a greater understanding of the negotiation process, and put you in a better position to bargain in the future.

What is distributive bargaining? In the book entitled Labor relations and collective bargaining: Cases, practice, and law, Carrell and Heavrin define it as “a type of labor negotiations viewed as a ‘win-lose’ situation.” In addition, “resources are viewed as fixed and limited, and each side wants to maximize its share.” When distributive bargaining is used, each side views an increase from the current contract as a gain or win for them, and a loss for the other group. Although other types of bargaining are used, distributive bargaining remains the most common method of negotiation. Since both management and union will be attempting to secure the better deal, it is important for the negotiators to be aware of a few positioning tactics that may be used by the other side.

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ExGen Languages

Learn Japanese Through Osmosis!

If you have read through the About page, and glanced at the previous posts, you have probably discovered by now that I love to learn new things. One subject that I find truly fascinating is foreign languages. Looking at my bookshelf, that fact would be obvious to you – since I have multiple books on learning Chinese, Dutch, Spanish, and German. The problem is that I haven’t read any of those books. It’s almost like I think I’m going to learn another language through osmosis. Maybe if I just keep these books next to my bed, I’ll wake up one day and be fluent enough to actively hold a conversation with a native speaker. That, obviously, is never going to happen. Every now and then, though, I’ll get on a new kick and rediscover the excitement of languages. One of my favorite languages (currently?) is Japanese. I love the beauty of the written kana and kanji, and the overall kawaii of Japanese culture. If you are interested in learning Japanese (or any language of your chosing), there are two sites I would like to share with you…

Categories
ExGen Random

Repair job from Hades

Recently, I began experiencing problems with my the faucet in my shower. The handle was starting to get very loose, and water would leak from it whenever it was turned on. I tried to fix it, but quickly realized that this project was going to be beyond my abilities (I’m definitely not handy around the house!). The obvious solution was to contact one of our local handymen and get the shower fixed correctly. The call was made on Friday morning, and that afternoon someone was at my house working on it. The guy, Ray, shut off the water to the whole house (the was no shut-off valve for just the shower), assessed the situation and determined that the entire shower faucet would need to be replaced. Ok, no big deal… just replace the faucet and let me get on with my day. The problem was that there was no access panel to reach the plumbing. That meant that Ray was going to have to cut a hole in the wall of the adjoining bedroom (my children’s bedroom) so he could get in. Great… this is not starting out well.