A store-free shopping season?

Due to geographical constraints, Mr. Dimes and I are planning on avoiding brick-and-mortar stores as much as humanly possible this holiday season. Instead, we're going to be purchasing all gifts online and shipping them to the intended recipients. The lone exception to this rule will be going to stores to shop for one another. Hopefully we'll have success with this plan. There are several reasons for doing this:

• We live in a geographic black hole with few well-respected retail outlets. The nearest good bookstore is 20 miles away, and it's an hour drive to a decent mall. Anything of higher quality than Sears or Target can offer will have to be purchased at an online retailer anyway, so why not shop for everything with one?
• We simply can't afford to go and visit the family this year. We live too far away, and round trip holiday airfare will set us back at least $1500. It would be twice as much if we went to visit both sides of the family.
• Even if we did travel to see them, do you know what a tremendous pain it is to try and get gifts through security? You can't travel with wrapped packages, and while checked bags are routinely pilfered, it gets worse right around the holidays. I would think it would be highly likely that any gift in its original packaging would be more likely to find its way onto eBay than under my in-laws Christmas tree.
• Who likes to go shopping anyway? Too many obnoxious shoppers, picked-over merchandise, and endless loops of the Trans-Siberian Orchestra are enough to drive me into a frenzy. Toss in some obnoxious perfume or an indecisive husband and I'd happily rather take the whole thing online. Besides, it's a LOT easier to track spending when you don't have to schlep receipts and merchandise all over the mall.
  

I used to be a big fan of gift cards until it occurred to me that their purchase just passes the task of shopping from the giver to the recipient. That's not very nice! I'm going out of my way to try and avoid them this year, and I hope not to receive too many unless they can be used online, since they won't be easy to redeem.

Here are the results of last week's portfolio and trading updates. The EverydayFinance portfolio bested the S&P return of 5.5% with a 6.2% return for the week. There was a notable trend in the portfolio this week: massive standard deviation. While the portfolio eeked out a small gain over the index, but were multiple holdings up or down in excess of 20%.

BIDU and GOOG turned in a stellar performance on Google's earnings beat last week. China Mobile and FMCN moved in different directions, further illuminating the wide swings in Chinese stocks of late and the lack of correlation in individual holdings that didn't exist in 2007 (they all move up 100% per quarter!). KTII continues to be the most impressive risk-adjusted returning asset in my opinion at another 14% for the week. UYG turned out to be a great call (and they're not all in that bucket as evidenced by SIRI and TKC below), picking the exact bottom of the financial wreck on St. Patty's day (here). I had sold 1/3 share at a 40% return and the shares have returned to that level again. Time to unload some more or ride it out?

Trading: I sold my SIRI shares, as jumping in on merger news was ill-informed and researched. The stock did not react as I had anticipated and I took a small loss on the move. I also exited Turkcell (TKC) given the degrading outlook of the Turkish economy and the stock's prospects. I've chose to remain in the other emerging market cellular plays China Mobile (CHL) and Vimplecom in Russia (VIP).

In addition to these stock holdings, I took a bold move on the projected decline in oil prices. I may have been a bit early, as oil has now broken above $116 per barrel. As long as it stays below $120, I'm in the clear. For more on this move and synthetic options in general, click here.

www.everydayfinance.blogspot.com

Is this 13% Yield Worth the Risk?

I came across a closed end fund today that may make for a nice addition to the self directed IRA account. The Van Kampen Dynamic Credit Opportunities Fund (VTA) is showing a steady monthly yield of $.152 per month, which puts it at a 13% yield given the current $13.77 share price. Although the share price has declined since launch last summer with the rest of the financials, I think it's overdone here since it started accumulating assets once most of the sub-prime carnage was already known and starting to circulate. Given that the dividend has been paid steadily at $.152 every month since launch, and will be in March too, it may be worth buying this one that may be unfairly punished for guilt by association.

VTA doesn't show up on dividend screeners, nor does it even show a percentage yield in Yahoo! Finance, but if you check out the dividend history in "historical prices", "dividends", you'll see the steady history. So, to the question, "Is this 13% Yield Worth the Risk?", I think the answer is a resounding "Yes".

www.everydayfinance.blogspot.com

Write-Offs: 05.02.08

$$$ Strippers Saved! [Curbed]

$$$ Citi Sued Over Muni Hedge Fund [FINalternatives]

$$$ Fortune Late in the Face Of Our Own EP [Fortune]

$$$ "The New TimothySykes.com" [TS]

$$$ PIMCO's not the only one hiring! [DB Career Center]

Should we move into base housing?

When Mr. Dimes and I moved to California, we put our names on the base housing list at our command. We were told the wait time would likely be from three to five months, depending on who else moved in or opted out. Well, we hadn't given it a lot of thought but after a few weeks here we're trying to decide whether or not we should move when the time comes. It's a complicated decision, with a lot of pros and cons. Here are some of the factors that matter:
Pros:

• A dramatically reduced commute. Right now my husband is driving 40 miles per day in a round trip commute, much of it along dubious roads. Moving to base would reduce the round trip to about ten miles. This would reduce his gasoline expenditure considerably and also reduce his risk of being on the road during periods of dense fog, driving rain, or blinding dust storms.
  
• Monthly rent and utility expenses would be at the exact level of BAH. Currently we're paying less out of pocket for rent, but water, electric, and gas bring the total above our BAH. Living in base housing would provide a cap, which will be helpful during the high energy use summer months.
  
• We would probably use the commissary more. Right now, with the commissary being 20 miles away and open limited hours, my husband tends to run to a local grocery store which is a lot more expensive than the commissary would be. I try and use the commissary, but the savings don't necessarily offset the gas and time expense of going there.
  
• We would be living in an actual house instead of an apartment, and I'm pretty sure it's not going to be a duplex. They recently renovated/rebuilt all the housing on the base, so it's in pretty good shape, not your standard prefab double-wide layout. It is also probably bigger than our current accommodations. Also there is more freedom to do your own repairs and not be accountable to a landlord.
  

Cons:

• We just moved! Moving again is going to be a hassle, even if we don't have to pay for it out of pocket. However, it won't be as major of an upheaval as when we moved here from VA. I can probably haul a lot of my own stuff (like my kitchenwares) which would save mover time and effort as well as unpacking hassle. We'll also have to forward mail again, cancel/move utilities, update insurance and drivers licenses as well as addresses on everything else, which we just did six weeks ago.
  
• The financial consequences of breaking our lease will be moderate. After reading the lease agreement, the consequence will be one month's rent (the time between notification and move out) plus a $1000 early termination fee. We'd also have to pay for any damages (there are NONE) and a carpet cleaning. Total consequences would probably be as high as $2000-2500, though theoretically we'll recoup that within a year in gasoline and housing cost savings.
  
• While my husband's gasoline costs will drop, mine will most likely rise, as I'll be the one with a longer commute. However, if I work as a tax preparer, that will only be on a seasonal, part-time basis. Also, unless we switch churches, it'll still be a 40 mile round trip every Sunday.
  
• We'll have to deal with lawn care. Most of the yard is maintained by the base, but a section of it is the service member's responsibility. We've never had to deal with a yard before.
• Less quiet. The base is noisy. Much noisier than where we currently live. I'm used to it somewhat, but it's been a nice break from the racket. I'll be sad to hear all the noise again.
• Less diversity. When you live on a base, everyone else who lives on the base is military. Everyone goes through pretty much the same thing, and tales of people being all up in your business are commonplace, though I'm not sure how true they are.
  

So we're torn. Luckily we haven't gotten a solid offer yet, but we're trying to figure out what to do if we do.

What Mark Everson can teach us about Ethics

Thanks to the taxwise Kay Bell at Don't Mess With Taxes, I've become aware of the firing of the CEO of the American Red Cross, Mark Everson. In case you didn't know, since the deaths of Washington Redskins Safety Sean Taylor and Gatorade inventor Dr. J. Robert Cade seemed to hog yesterday's spotlight, Mark Everson was forced to step down after having an affair with a subordinate. Everson, former commissioner of the IRS, had only taken his position with the Red Cross back in May, and lasted a mere six months as the CEO of the best-known not-for-profit organization in the country.

I found this article by Stephanie Strom, which seems to put more of a negative spin on the organization that fired him rather than Everson himself. Perhaps it is my military background, or my recent and ongoing ethics training, but I am quite in disagreement with this article. For those of you too busy to read it (or in case the link expires or becomes password-protected), the gist is that Everson shouldn't have been fired because it took the American Red Cross so long to hire him in the first place, and despite his actions, he should have only suffered a temporary suspension or a loss in pay. While I am not privy to the details in Everson's contract, I assume the author of this article is not either. I would safely assume there is a Code of Ethics that all paid employees are to follow and before accepting employment they must sign a contract agreeing to abide by this code. The CEO would, for sure, as he is the public face of the organization. People who work for any large company usually have to sign some conduct agreement, and members of the military have to abide by the UCMJ. That said, I don't exactly think the issue was unaddressed for Mr. Everson.

The reason for Everson's termination is that he had an affair with a subordinate, a woman who is the president of a Red Cross chapter on the gulf coast. Both Everson and his subordinate are married, and the latter is pregnant. Personal relationships with people with whom you hold a position of power are generally never allowed and certainly not between two married people. The American Red Cross may have acted quickly in firing Everson, though I don't believe they acted rashly. With great power comes great responsibility. All across the military you see commanders being relieved of their commands due to "a loss of confidence in their ability to govern." Off the top of my head the commanders of the Arleigh Burke, the Helena, the Higgins, the Hampton, the Halsey, VAQ-140, VFA-122, the Newport News, and the Minneapolis-St Paul have all been fired in 2007. I'm sure there are others I've forgotten, to say nothing of the rest of the military. My point is, while you'd certainly hope that the person you hand-picked to lead an organization possesses the skills, common sense, and good judgment necessary to get the job done, this is not always the case, and when someone shows their incompetence, they should be relieved of their command as quickly and quietly as possible. Simply having good business skills or leadership experience is not enough to head an organization as well-known as the American Red Cross. The Red Cross is funded by voluntary contributions from taxpayers. If they feel the organization is going to turn a blind eye to someone acting unethically or irresponsibly by abusing his power and betraying his wife, most people would donate their money elsewhere. Lord knows there are enough other charities begging for it.

Problems at the top have a funny way of filtering down through the entirety of an organization and can negatively affect its culture. While some people feel that ousting the head of a group is a harsh move, I believe it is the right one. Despite his "impeccable credentials," Everson proved he lacks the integrity and personal responsibility necessary to lead an organization that is more respected than the IRS.

Work environments can make jobs miserable

Like I mentioned in my last post, I am doing seasonal tax work again this year. As much as I love the work itself, I am actively seeking other forms of employment, because the job environment is simply unbearable. The reason I failed to update this site from January 22 to February 22 is because I was spending most of my waking hours in the tax office. I completed a hundred or so returns, and I also had to schedule dozens of appointments, file a mountain of paperwork, distribute a bunch of checks, and handle the problems of disgruntled and angry clients for hours on end. I worked 197 hours in a month of what is supposed to be a part-time job.
Things have tapered off quite a bit in the past ten days or so, but the incredible stress of the weeks before that won't be soon forgotten. And a lot of my stress could have been mitigated by effective management and proper training of our staff, as well as the thoughtful use of a temp during our busiest times. Here are some of the biggest problems:

• Our manager never bothered to give us any sort of office orientation. In previous years, the office managers have required an hour or two of paid office orientation, wherein they explain the filing system, the office policies and procedures, where to find things and what to do in the event of certain problems. Here this was never done and evidently hasn't ever been done. As a result, both old and new preparers are clueless about how the office runs, which leads to a lot of wasted time and dissatisfied clients.
• Where I work, payroll is king. The #1 goal of all office managers is to keep the personnel budget as low as humanly possible. It's a noble goal but it results in some stupid decision-making. My manager tries to save money by not hiring a secretary, and instead relying on tax preparers to answer the phones and schedule appointments. During our peak season this is a terribly short-sighted move, as this causes most preparers to quickly reach overtime, when we become more expensive than a minimum-wage temp. With the overtime my office has paid me alone, they could have hired a secretary for 28 hours. Even having someone around to answer the phones, help with the filing, and scheduling appointments during the busiest three hours of the day would have helped maintain a lot of sanity. Saving them a few bucks on payroll seriously backfired this year.
• I have a dreaded micromanager boss. Have you ever worked with someone who hyper-scrutinizes everything you do in an attempt to hide their own incompetence? This is the exact type of person my boss is. He knows very little about much at all, but more than makes up for it by driving me (and everyone else in our office) crazy. His philosophy seems to be that of a headmaster, where he looks and looks for the tiniest mistake, which was probably made due to a lack of proper training in the first place, and then rails on you for it. I'm pretty good humored and turn a deaf ear to it, because I know he's crazy, but he's driven a lot of my co-workers to tears. It will be interesting to see what the retention rate is going to be for next year. I really enjoy the work and am good at it, but even I am hitting my limits with the abuse.
  
• Despite being a micromanager, my boss does not delegate tasks well. Generally, delegation seems to be, "Make Dimes do it because she knows how." A lot of things don't get done because people either don't know how to do them or that they are supposed to do them. One preparer steadfastly refuses to answer the telephone, label and file tax returns, call clients, or do anything besides write returns. While not very team-oriented, that behavior was acceptable for peak, but now that business has slowed down, he needs to contend with a lot of other tasks aside from writing returns. Instead, he tries to leave during slow periods instead of checking to see what non-return-writing activities need to be done. I suppose at this point it's appropriate to add that this particular preparer has completed the most returns in the whole office.
  
• Climate control in our office is horrible. Our customers are constantly complaining about the temperature in the office, and a lot of preparers have a difficult time working because it is so cold. Fingers get numb, leading to typing mistakes, and the cold is actually a major distraction to workers and clients alike. If we turn off the AC, the temperature soars 15 degrees in an hour, and the office gets terribly stuffy. There doesn't seem to be a workable compromise.
  

There are other problems, but they're a little more abstract. The point though is that I love the work I'm doing, and I'd like to keep doing it, but the garbage I have to deal with in my working environment is making it not be worthwhile. I don't imagine every company is this bad, and I am willing to try my hand elsewhere to see if I can't find a more enjoyable environment with an equally or more enjoyable job.