Slogging Towards The End Of the Semester

Almost done - I just finished tabulating the grades for my principles of finance class - I give four small to medium sized exams during the semester, with the last one being given on the last day of classes. In addition, there's a cumulative final, which is given next week.

I count the four highest exam scores (in other words, I drop the lowest exam, which could conceivably be the final). So, the students need to know their grades in advance of the final to decide if it's worth their while to prepare for and take the final.

Since the poorest students can't seem to figure out their grade on their own (big surprise there), I calculate all the grades, their final grade if they don't take the final and what grade would be necessary on the final in order to move them up to the next grade. It may seem like it's not my job, but I've found that doing it this way saves me far more time answering the "how do I figure out what I need on the final" questions.

However, within an hour of posting the grades, I got five (out of fifty students) emails asking how I calculated the grades. And this is after going over the calculations at least four times in class , with examples.

I'll just keep clicking my heels and repeating to myself, "there's no place like winter break...there's no place like winter break...).

The Chronicles of Narnia

The Unknown Family just got back from seeing The Chronicles of Narnia. All agreed that it was one of the best films we'd ever seen. Part of that is our love for the original books, but even if we weren't familiar with them, I think we still would have loved it.

We read The Lion, The Witch, and The Wardrobe to The Unknown Son and the Unknown Daughter about three months ago, and they were captivated by the story (although I translated a lot of the British verbiage on the fly so they would be able to get it). I still remember their expression when Aslan died - they were shocked, saddened beyond belief, and thoroughly taken in by the story. That night was the only night I read more than one chapter, because sending them to bed after Aslan's death without learning of his resurrection would have been too cruel (and a sure-fire way to bring on nightmares.

Their reaction to learning of Aslan's resurrection was even more marked than their sadness at his death. It showed the power of a good story.

Even though they were familiar with the story, we all had a good cry in the movie when Aslan was killed, and the kids started applauding when he rose again.

I would caution you about taking very young (or very sensitive) children. Although they were well prepped for it, the Unknown Daughter (age 5) was very frightened and sad during Aslan's death scene, and the Unknown Son (age 7) was too. Some of the battle scenes were also pretty intense.

This will definitely be one for the DVD collection. The writers, director and producers did C.S. Lewis proud - while some of the details were changed from the book, the film was definitely true to the spirit of the book.

We're now a couple of chapters into The Magician's Nephew, the second (or first, depending on which chronology you use) book of the Narnia Chronicles, and the kids were upset that we got back from the movie too late to read another chapter tonight. I guess there's no such thing as too much of a good story where my kids are concerned.

Calculating and Understanding Real Interest Rates

Mike Moffatt at About Economics has a great post on Calculating and Understanding Real Interest Rates. It's an easily understood, low-tech primer on the topic - suitable for handing out to an undergradute class when covering interest rates.

More Interviewing Advice

The other day, I gave some advice on how to handle "fly-back" interviews for academics. Here's some additional advice from the Wall Street Journal on how to handle "thank you" letters. While my previous post was geared primarily towards academic jobs, this one works for ALL job applicants. In summary, the article advises

1. Proofread beyond just spelling and grammar. In particular, if you're interviewing with multiple organizations, make sure you're sending the right letter to the right organization.
2. USe the follow-up letter to reiterate your best qualities. This a good chance to refocus the employer on what your comparative advantages are.
   
3. Show off your listening skills. If you've taken good notes during the interview, you can match your follow up letters to the points mentioned in the interview.
4. Tap into the employer's culture, but keep it professional.
5. Write a separate letter to everyone you meet. Again, here's where taking notes is so important - these shouldn't be "boilerplate" - each letter should be individualized (they often get compared).

These are all excellent pieces of advice -- click here for the whole thing (online subscription required).

I'm always amazed how so many people fail to take care of the "little" things like good followup letters. They're actually not little things at all, because they have a major impact on the impression we make (and that's a huge part of getting the job).

This Week's Carnival of Personal Finance

This week'’s Carnival of Personal Finance is up at Frugal Underground. As usual there are a number of good posts. Here are some that caught my eye:

Canadian Capitalist tells us To Not Diversify is Just Stupid“. Based on the theory of efficient markets, I'd have to agree.

Tracy of Healthy, Wealthy, and Wise puts her money where her values are with Socially Responsible Investing“. Many people go this route, but be aware that there's a lot of research that shows that socially-responsible investment funds underperform the market. That's not to say that you shouldn't go this route, but that there is a trade-off.

Foobarista of Foo Bar and Grill just got a nice surprise in 403(b) found money: does this happen often?“. Here's some information on finding unclaimed property that might give you some happy surprises, too.

Most of know we should be planning for retirement. JLP of AllThingsFinancial has been reading Eisenberg'’s book The Number. Here he provides a look at the connection between “Inflation and Your Retirement Plan. I also just got a copy of the book (they're marketing to bloggers), and I'll be making comments in the near future.

Buying "scratch and dent merchandise can save you a lot of money. Mbhunter of Mighty Bargain Hunter recently got a good deal on a dryer in “Scratch and dent dryer.

David Porter of Pacesetter Mortgage Blog looks at three ways that people deal with their home equity in “Will Americans Spend the Wealth Created by the Housing Bubble Boom?“: 1. Do nothing; 2. Spend it; 3. Invest it.

Dan Melson of Searchlight Crusade takes on the task of “Debunking The Fallacy of Index Funds.“ He provides some good points, but I still think that index funds are far and away the best route for the vast majority of investors. It's not that index funds are perfect -- just better than anything else.

That's all for now - this should keep you busy for a while. As usual, look around - there are a lot of other posts up at the carnival that are also pretty good.

This Week's Carnival of The Capitalists

This Week's Carnival of the capitalists is up at Techronization. There's a lot this week - here are the finance/econ related ones that caught my eye:

Solitaire Trader shows us How to Watch CNBC

Financial Options tells us about The Week Ahead in Finance and Economics News, with some news about a new housing index that looks pretty interesting

Coyote Blog thinks we should Let GM Die. (or at least that it's o.k. if it happens)

Econbrowser gives us his thoughts on the last few week's economics news in Facing the Latest Economics Data. General advice - when Hamilton writes, it's usually worth a read.

Searchlight Crusade tells about the Three Day Right of Recission in home equity refinancing.

View From A Height has noticed that companies are Awash In Cash, and wonders about the implications.

Abnormal Returns chimes in about the frenetic hunt for alpha.

Political Calculations has yet another calculator application - this one calculates Return on Invested Capital.

The Entrepreneurial Mind shows us how Sarbanes Oxley has far-reaching effects in The Big Chill of SOX Hits Even Small Businesses.

Free Money Finance looks at how the pros keep their funds in Where the Pros Stash Their Own Dough

The Real Returns doesn't think the market is overvalued (or undervalued, for that matter) in S&P 500 Earnings Estimates For 2006.

Unexpected Office "Visitors"

And now for smething completely different:

This may be one of the funniest things I've read all semester (compliments of Acephalous). I particularly liked the guy's reaction and the suggestion in the comments about the use of pepper spray.

Caution: May not be office safe due to impolite language.

Advice on "Fly-Back" Interviews For Academics

This is the time of the year when finance faculties are inviting job candidates out for campus visits. Apparently, the law school hiring cycle is similar to the finance calendar. Brian Leiter has some good advice for candidates on his blog. Since most of it is applicable regardless of your discipline, I'll summarize it below and also add a few lessons I've learned over the years:

• Don't show any hint of an attitude. Even so-called "lower-tier" schools often have people from very good schools on their faculty. And even if the faculty isn't from a top school, many are doing good work. So, lose any and all hints of an attitude -- after all, who wants a colleague that's full of themselves?
• Work very hard on putting your presentation together. It shouldn't consist of you reading your paper to the audience (they can read for themselves). Expect interruptions during your presentation - how you handle them is important, since it gives the faculty an inkling as to how you'll be in the classroom. When you're asked a question, if you're not sure what the questioner is asking ask for more information. Remember -- in many cases, it's not so important WHAT you answer, but HOW you answer. Again, lose the attitude.
• Assume that even lower-tier schools are interested in your scholarship. Have an answer prepared for the "what's next in your research program?" question.
• Don't blow off the student interview - it won't get you the job if you ace it, but blowing it (again, watch the attitude) can cost you the job.

Click here for the whole thing.

In addition to Brian's points, I'll add a few practical hints I've picked up over the years:

1. Try to get a good night's sleep two nights before the visit. You probably won't sleep much the night before, and this will keep you from getting too sleep deprived.
2. Make sure you have a schedule for the visit as soon as possible. Carefully research the backgrounds of the people you'll be meeting with. It's o.k. to ask the department chair (or the chair of the recruitment committee) for copies of the vitas of the faculties. Remember - you're also deciding if you want THEM as colleagues.
3. Be prepared to ask questions of the faculty you're meeting with about their research (see #1). Open-ended ones are best - some I've used are "how did you come up with that idea?" and "what are you working on now?". Getting the faculty to talk about their research is very flattering, and makes you look like a good conversationalist. After all, most people's favorite topic is themselves.
   
4. Be nice to the department secretary - she often wields a lot more influence than you can imagine. I know of one candidate who got his current job in part because of the glowing recommendation of the secretary (the other candidate was a jerk, and he was very nice and appreciative).
5. If possible, schedule breaks during the day. It's hard to look impressive when your legs are crossed because you have to go to the bathroom!
6. When you have a spare minute, take notes on what you discussed with the various faculty. Over the course of the day, you'll forget things if you don't, and these notes will come in handy when you write your thank you notes.
   
7. While you're there, make sure to ask what the department's time frame is (i.e. where are you in the order of visits, where do things go from here, etc...).
   
8. If you're asked for salary requirements, don't give a direct answer. I've usually use humor and say, "I currently make $___ as a grad assistant, so my opportunity costs are pretty low. I'm sure you'll make a fair offer"
9. If you go out for a meal, opt for things that don't take too much attention and are least likely to spill.
   
10. Don't relax until you're on the plane on the way back. I once lost a job (I think) because of casual comments I made with the department chair at the airport waiting for my flight.
11. While on the plane on the way back home, review your notes and take a few more (see #5).
    
12. Get your thank you notes out as soon as you get back home. Use the info you wrote notes on, and try to personalize them if possible.
    
13. Take your suit to the cleaners and shine your shoes as soon as possible. If you might be getting multiple fly-outs, this saves time, and gives you one less thing to worry about.
    

In summary, the faculty at the school is trying to see if you're the kind of person they'd like to have around for the next 15-20 years. So, being a good colleague counts for a lot.

Comments are open.

The Radical Guide to Credit Cards

It's the holiday season, so it's also the time to think about credit cards. This time of year, there's always the temptation to buy "just one more present". So, a good number of people begin the new year burdened by too much credit card debt. David Jackson (founder of the Seeking Alpha blog network has an outstanding piece on all things credit card related, called
The Radical Guide to Credit Cards. Here are some of the areas the guide covers (there's a lot more, but this should whet your appetite):

Quick Quiz: What kind of credit card user are you?
How to avoid overspending with credit cards
How to avoid borrowing from credit cards
Never pay credit card fees again!
What if you get hit with credit card fees?
The 4 steps to getting the most out of your credit cards

It's definitely worth reading. My impression is that improper use of credit is one of the areas where many (if not most) people make financial mistakes.

20,000 Hits!

Financial Rounds got it's 20,000th hit sometime last night. I'm definitely small fry in the grand scheme of things, but I'm happy. Thanks for all your support.