Thursday, December 19, 2013

Book Review: How to Analyze People on Sight

    The book my company read was How to Analyze People on Sight. This book talked about the physiology of certain body types and how that affected personality. The body types mentioned were the alimentative (fat, pleasant) type, the thoracic (big-chested, energetic), the muscular man (morally firm), the osseous type (bony, steady), and the cerebral type (thinker). The book explained how to recognize these types and the traits that went along with each type.
     A highlight of this book was that it really was quite interesting. A lot of the physiological traits mentioned could affect personality very logically, and I liked that. For example, the rigidity of osseous type due to large bones makes sense to me because bones are rigid. On the other hand, most of the theories mentioned in the book were laid out only in a logical way instead of being backed by research. This bothered me because, though many of these things seem to be observations, the observations/experiments were not cited. Thus, I don't know that there were legitimate experiments involved or if the author only watched a few people for an hour.
     Something else I found interesting was the effect of food on personality due to body type. On page 10 the author states, “Recall [an] occasion when a square meal made a decided difference in your disposition within the space of thirty minutes. If one meal has the power to alter so completely our personalities temporarily, is it any wonder that constant overfeeding causes everyone to love a fat man?” On the other end of the spectrum, “The brain worker long ago discovered that a heavy midday meal gave him a heavy brain for hours afterwards" (Page 58). From these two quotes we see that, on all sides, eating habits greatly impact personality, which I thought was a very interesting correlation. On the whole, I actually did enjoy this book.

Tuesday, December 10, 2013

Lemonade Stand

    The variable in the lemonade stand game is the weather. Sugars and lemons are the perishables. The constants are cups because they do not spoil or change. I learned that a large profit is required to make hardly any money when you are running your own business.

Monday, December 9, 2013

Minimum Wage

    The government should not raise the minimum wage for a few reasons. First of all, the effect on small businesses would be great if the minimum wage were raised. Small businesses employ about half the workforce (Ian Sheperdson, Forbes). Raising the minimum wage would adjust wages according to inflation for workers (Annie Lowrey, The New York Times), "but this takes no account of inflation [for banks], and it will take at least another year for real lending to return to its previous peak" (Ian Sheperdson, Forbes). Because banks are the major external source of finance for small businesses. If banks are not lending as much and employees require a higher wage, small businesses suffer.
    Second, in the State of the Union address President Obama said "A family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong” (Lowrey). The problem is, raising the minimum wage won't help that much there. "About 60% of the officially poor don’t work, so the only thing raising the minimum wage does for them is to make it harder for them to get a job....It is estimated that less than 15% of the total increase in wages resulting from an increase in the minimum will go to people below the poverty line " (William Dunkelberg).
   Finally, the number of jobs will decrease, and more people will be layed off. "The Law of Demand always works: the higher the price of anything, the less that will be taken, and this includes labor" (William Dunkelberg). For these main reasons, the minimum wage should not be raised.

http://www.forbes.com/sites/ianshepherdson/2013/09/10/small-businesses-are-the-missing-key-to-a-full-economic-recovery/
http://www.nytimes.com/2013/02/13/us/politics/obama-pushes-for-increase-in-federal-minimum-wage.html?_r=0
www.forbes.com/sites/williamdunkelberg/2012/12/31/why-raising-the-minimum-wage-kills-jobs/

Wednesday, December 4, 2013

Stocks Assesment

   Stocks are portions of a company that a person can buy. At the end of the year, a company who offers dividends gives a percentage of the profits to each shareholder. A trade is to buy a stock for less than six months. A trade should occur when a catalyst is coming up that could boost sales. A catalyst is an event that causes a change in the price of a stock. This could include an earnings report or releasing a new product.

Monday, December 2, 2013

20% November Summary

     In November Quin and I didn't do anything but wait to hear back from Toby Keith and the Denver Broncos. In December we will hopefully hear back from them. If not, we will probably try to contact them through social media or come up with a different plan for the fundraiser. By the end of the semester we will have a solid plan for what we are doing for the fundraiser. We will have made the big arrangements like when and where the events will happen. At the end of the semester we will begin working on the smaller details.

Sunday, November 10, 2013

Gross and Net Salary: Why I Don't Like Taxes

    My gross salary is $250,000. First I took out federal taxes. I am in the $15,454-$33,379 tax bracket, assuming I get paid a monthly (giving me a $20,833.33 paycheck). The taxes for $15,454 are $3,716.95, so I added that to the required 33% of the money I made over $15,454. This 33% is taxed on $5379.33 for an additional $1,775.19. (This is what I add to $3,716.95 for a total of $3,550.36 monthly income tax.) My yearly income tax withholding is $42,604.32.
    Social security is a 6.2% withholding of a paycheck, but there is a cap where I stop paying the 6.2% on my income at $113,700. This makes for a total of $7,049.40 out of my paycheck for social security. Medicare is a 1.45% deduction on the total gross income, so that is a $3,625 deduction.
    So far, with federal income taxes paid and social security and Medicare payments withheld, I have $196,721.28. Using this amount, I filled out the 2012 TC-40 form, which is Utah's individual income tax return form. $9837 was deducted in state taxes. This leaves me with a yearly net income of $186,884.28.
http://www.irs.gov/pub/irs-pdf/p15.pdf#page42
http://www.irs.gov/pub/irs-pdf/p15.pdf#page13

Monday, November 4, 2013

20% Project October

     We accomplished our part if our September goals, which was mailing the packets. No one has responded to our letters, though. As of September, this is our only problem. By the end of November we will hopefully have heard back from both Toby Keith and Denver Broncos and have started planning the events. By the end of December, we will hopefully have a date set for the events and be well into the process of planning the events.

Friday, October 25, 2013

Blackjack Day: Why I Don't Gamble

    I didn't really understand what was going on when I got to class Wednesday. Mr. Kapptie handed me a stack of poker chips, and Noah started asking me if I was allowed to gamble. I sat down (next to Brooke luckily; she seemed to know what was going on) and was totally ok with not getting many instructions. Figuring out what to do is sometimes the most enjoyable part of these activity days. When Mr. Kapptie aid Blackjack I knew twenty-one was my goal, but didn't have any strategy for getting there or know the details of the game. Mr. Kapptie told us twelve could play at a time, so I started small and put one chip in. I didn't really understand how close I should get to twenty-one, so I made eighteen or nineteen my stopping point (oops...). I bet low all three games I played. Then, in my final game, I bet all my chips except one. And I busted. I'm definitely glad I don't gamble because I don't like how stressful it gets. The comparisons Mr. Kapptie made the next day between the stock market and blackjack were interesting. I like what he said about being consistent because if I'd have been consistent I wouldn't have lost as much money.

Moral of the Story: Gambling=No Money 

Stocks

    I bought Hershey's stock as a trade. Mr. Kapptie talked about it and got me interested. What I found is that Hershey's doesn't just go up at Halloween. It's stock prices curve around the end of the year going up in October and down in December. I bought stock on Friday the 25th of October. I will sell the Monday after Thanksgiving. The catalysts for this stock are Halloween, Thanksgiving, and Black Friday. Based on spikes around this time in previous years, my goal is to make five dollars per stock. I have bought ten so far, so I will make fifty dollars. With commission I will end up only making about ten dollars, so I am hoping the price will go down in the beginning of my trade, and I can buy more stock.
     I bought Arlington Asset Investment stock as an investment. It has a quarterly dividend of $0.875, which adds to a total yearly dividend of 14.10%. In this stocks history there have been spikes and drops, but in general they have been going up until mid 2011 when, in general, they evened out. In January 2013, though  stocks went up and and have evened out a little there. If I were able to keep this stock for more of a long term investment my goal would be $31. Because this investment is limited due to class length, my goal for this stock is for it to get to $26.50.

https://www.google.com/finance?q=NYSE:HSY
http://finance.yahoo.com/q/bc?s=AI+Interactive
http://www.arlingtonasset.com/index.php?s=126

Sunday, October 20, 2013

Trades and Investments


    A trade is a buy in a certain stock for six months or less. Its commitment level is comparable to a high school relationship which isn’t likely to last longer than six months. Often a trade is bought before an ‘event’ or catalyst is going to happen. A catalyst is anything that increases the price of a stock. After the catalyst occurs, a trade is to be sold, no matter what the market is doing. In trades dividends are not huge moneymakers.

    An investment is a buy in a certain stock for more than six months. Its commitment level is comparable to a marriage. A dividend is when a corporation pays money back to its shareholders. This is a good thing to look for in an investment.

    15% is the magic number. When a stock that has been bought as a trade (and is pre-catalyst) or an investment decreases in value about 15%, there are two options: buy more of that stock or wait. Because the stock bought was originally a good price, now that it is “on sale”, it is an even better price. The average point at which the buyer is making money decreases if more stock is bought at a better price.

    A short sell is where the trader borrows a stock from a broker. The trader then owes the broker, not money but a stock. The trader sells the stock. Then if the borrowed stock decreases in value, the trader can buy stock to return to the broker. The difference in the original stock and the one returned to the broker is kept by the trader. With a short sell, the price of the stock can also increase and the trader still owes the broker a stock but must buy the stock to be returned at a higher price. A trader should never short sell stocks that they own.

 

 

Candy Stock Day


    Last Thursday as we entered the classroom, my senses were assaulted. It was mostly dark in the classroom with a few lights illuminating the white board. A variety of candy and colored slips of paper covered the floor. Bells, voices bartering, and general noise played with a projection on the wall. It quickly became apparent that we wanted whatever was on the floor. I knelt down and started gathering as much as possible. The tootsie pops were very plentiful. I think they got passed by because they were so plentiful and small. I figured I might as well take them, though, so I grabbed everything within reach, including money. When my hands were full, I shoved the candy in the extremely large pockets of my old lady housecoat. Those pockets were probably my biggest benefit because I could grab without pausing. Once everything was off the ground, we were told that the market would open in one minute, and I organized my spot on the table. On the board were the candy names and prices. Mr. Kapptie announced the market opening and Quin and some other people came up to me and started asking to buy. My pride kind of got to me here. I sold without thinking because I felt cool that people were coming to me to buy. I could tell that I had been able to get more candy than most of the people around me. I sold to everyone who asked, for about a minute before Mr. Kapptie walked by the board, changing the prices of all the candy stocks. All the prices went up, and I realized that I had sold cheap. Quin, after I had realized this, pointed out how dumb it was… I thought a lot more about my sales from then on. I learned to buy when what I wanted was low and sell when things were higher. Announcements happened every two minutes, so everyone would stop and listen over the noise of the projections. The prices of the candy stocks went up and down much more often than announcements came. This happened very subtly which kind of threw me off, but was interesting. At one point Chalin approached me and offered $120 for each of my Heath bars, which was about a $30 profit on each (or something huge like that). I just knew he knew something I didn’t, so I said no and resolved not to sell those for anything. An announcement came that sent the market up, and Chalin came back, telling me that what he thought was going to happen didn’t, and he was willing to sell me all of his Heath bars (about ten) for a little less than their value right then. I bought. Right before the market closed, an announcement came about Heath bars. Their value shot up. Mr. Kapptie wrote a higher price crossed it out, wrote a higher one, crossed it out, about four times total. Each time he did this, I could hear Chalin, who was standing near me saying, “I’m losing $5 for each of those I sold… $10, $20.” That was exhilarating. Each time he said that, I’d gained that much. Mr. Kapptie announced the closing of the market, flipped on the lights, and wrote the final stock prices. Tootsie Pops, which no one had really thought about, were worth a lot, and I had 29 of them. I made more than $2,000 on them alone. We learned that when a company (Nerds) splits their stock, 3:1, the price may look like $30, but it’s actually $90. We calculated our value (with no calculators). I ended up with $6,541, which was the highest value in the class. And got a one hundred dollar bill for it (not real, of course). But that felt good.


Notice how this is all one big giant paragraph with lots of long, run-on sentences? That’s how Thursday’s class period was. No breaks. No pauses. We got thrown in the middle of everything with little introduction, did the entire thing from start to finish, and then figured out what was going on. Isn’t it nice to have no structure sometimes?

Monday, September 30, 2013

20% project September Report

   So the original problem I wanted to fix for my 20% project was that we never know what to cook for dinner at our house. I threw around ideas of a cookbook, a cookbook app, a social media cookbook app, and texting and receiving recipes based on what you are feeling like eating. As I was trying to formulate a more solidified plan, Quin approached me and asked me if I would like to help him with his project. He is working on Make-A-Wish packets to send to Toby Keith for a benefit concert and the Denver Broncos for donkey basketball. I agreed to take part in this project, so at least for now the cooking problem is taking the back burner to bigger and better things. My part in the Make-A-Wish packets is mostly to write letters to these two explaining my personal experiences with Make-A-Wish. In September we wrote the letters, and we are finishing the revising stages and sending off information packets and letters. Revisions will continue into October, and we will send off packets. Hopefully we will hear back from these two in October sometime. From there we will continue to plan, hopefully for the donkey basketball and benefit concert.

Monday, September 16, 2013

Future Plans


FUTURE PLANS:
         After high school, I will work for the summer and a little extra. Then, I will serve an eighteen month mission for my church. After that, I will go to college at BYU-Provo or the University of Wyoming and major in Speech Pathology and minor in Spanish. I will pay for this with lots of scholarships (hopefully), money I have saved, lots of summer work, and possibly jobs during the school year. While going to school I will hopefully meet and marry an extremely handsome man who works hard (definitely) and is (hopefully) rich. He will work, and I will work as a speech pathologist until we have children. Then I will stay at home with our children. We will buy a Honda Odyssey LX for about $28,800. If it all works out, we'll live in Powell, where rent averages $700 a month. From my research I learned that I need to get a better paying summer job... That was a rude awakening. My thinking that I don't ever want I buy a brand new car was reinforced.... Too much depreciation. And finally, I'm glad I'm still in high school...

http://automobiles.honda.com/tools/build-price/trims.aspx?ModelID=&ModelName=Odyssey&ModelYear=2014