Harry Chen Thinks Aloud

After reading my blog post that advocates cost does matter in long-term mutual fund investments, Gabriel asks how he can apply this low expense principle in managing his 401K account. Let me try to answer his question with the ideas that guide my 401K account management.

The general idea: to keep you 401K investment cost low, your first need to identify the types of expenses that you’re paying to mutual fund managers or your 401K management company. Because different companies offer employees with different 401K plan, the strategy that I’m about to describe may or may not be applicable to everyone.

Read the rest of this entry »

There is something wrong with this corporate strategy…

Seagate Technology, the world’s largest maker of computer disk drives, said Monday it would cut about 6,400 jobs after buying a major competitor, Maxtor.

About half of Maxtor’s 12,800 positions will be axed and no Seagate jobs will be eliminated, said Woody Monroy, a spokesman for Seagate.

Of the Maxtor employees who would be offered jobs, most were in China, Monroy said.

The old news that is Nintendo will release its new game console Wii later this year. The new news is that I plan to buy one when it comes out. I’m not a die-hard gamer, but I’m love with Wii, especially its game controller.

The new controller shapes like a typical TV remote control, but it provides more that just few button inputs. Embedded with motion sensors, the new controller “allows users to direct action on the screen by swinging it like a bat, a sword, a racquet or a golf club”.

Take a look at this Nintendo Wii E3 video, and get really excited about Wii.

More videos and podcast shows from E3.

Release date: 4Q of 2006 (yahoo! news)

If you are not convinced that keeping investment costs low is important, check out a real-life example. In 2005, the investments of Judge Alito were revealed to the public. Based on this MarketWatch article, I did a research on the expense ratio of different funds that he owns. Surprisingly, all funds that he owns have really low expense ratios. Alito has a net worth of about $1.72 million.

Read the rest of this entry »

I’m fluent in two different languages, Chinese and English. Tim Finin’s recent blog post on “China predicted to have 60,000,000 bloggers by year’s end” got me to think about the benefits of being bilingual (or multi-lingual) on the Internet.

Read the rest of this entry »

In Nevada, the Gaming Control Board recently recommend Cantor Gaming as the state’s first licensed manufacturer and distributor of wireless gambling devices. I think the idea is that in the future people will be able to use wireless devices to enter bets, play poker and bingo while sitting in pool-side chairs and enjoying sunshines.

This again demonstrates the power of technology and its impact on traditional business models. Back in days, electronic porkers machines were the hottest devices that had attracted many people to the Vegas casinos. In the next few years, I think we will see wireless gambling devices and the likes will attracting more tech-oriented people to the Sin City.

Though, I’m do have worries about this kind of technology. Especially, they may encourage minors to participate in gambling since young people are at the forth front of new technology adoption.

Source: Wireless Gambling Co. Gets Nevada Backing, WashingtonPost.com, May 3, 2006

The other day, while I was watching TV, I thought I heard my cellphone ringing, but it turned out to be some high pitch noise from my TV. According the experts, this is called audio illusion — or phantom phone rings, ringxiety, or fauxcellarm.

So what causes our brains to think that our cellphones are ringing, but in fact they are not?

Some sound experts suspect that because cellphones have become a fifth limb for many, people now live in a constant state of phone vigilance, and hearing sounds that seem like a telephone’s ring can send an expectant brain into action.

“My experience has been hearing just a few notes that are similar to my phone’s ring, my brain will fill in the rest,” said David Laramie, a doctoral student at the Los Angeles campus of the California School of Professional Psychology, who is writing his dissertation about the effect of cellphones on behavior.”

Source: Anybody else hear that ringing?, IHT technology, May 4, 2006.

Personally, I have encountered other types audio illusion. Sometimes random noises cause me to think that a message was received on my Instant Messenger application, or a text message was received on my cellphone. Welcome to my digitally connected life style!

INGDirect has increased the variable Annual Percentage Yield (APY) on the Orange Savings Account from 4.00% to 4.15%. This is an excellent rate comparing to the APY at the Bank of America, which is only 0.50%.

If you have some cash saved and it’s not getting the best interest rate from your current bank, give Orange Account a try. I love it. In addition, if you don’t plan on using this money in a short-term, consider putting it in a CD Ladder.