Alan Watts: What If Money Didn’t Matter?

Alan Watts was a “British-born philosopher, writer, and speaker, best known as an interpreter and populariser of Eastern philosophy for a Western audience.” I actually stumbled upon his readings via a trailer for Days of Our Youth, a movie about people who grew up to be professional skiers.

Anyhow, he turns out to be pretty popular but if you haven’t heard of him before, I think listening to his voice is the best way to experience it:

Here is a transcript of the YouTube video above:

What makes you itch? What sort of the situation would you like? Let’s suppose, I do this often in vocational guidance of students: they come to me and say well, we are getting out of college and we haven’t the faintest idea what we want to do. So I always ask the question: What would you like to do if money were no object? How would you really enjoy spending your life? Well it’s so amazing as the result of our kind of educational system, crowds of students say ‘Well, we’d like to be painters, we’d like to be poets, we’d like to be writers’ But as everybody knows you can’t earn any money that way! Another person says ‘Well I’d like to live an out-of-door’s life and ride horses.’ I said ‘You wanna teach in a riding school?’

Let’s go through with it. What do you want to do? When we finally got down to something which the individual says he really wants to do, I will say to him ‘You do that! And forget the money!’ Because if you say that getting the money is the most important thing you will spend your life completely wasting your time! You’ll be doing things you don’t like doing in order to go on living – that is to go on doing things you don’t like doing! Which is stupid! Better to have a short life that is full of what you like doing then a long life spent in a miserable way. And after all, if you do really like what you are doing – it doesn’t really matter what it is – you can eventually become a master of it. It’s the only way of becoming the master of something, to be really with it. And then you will be able to get a good fee for whatever it is. So don’t worry too much, somebody is interested in everything. Anything you can be interested in, you’ll find others who are.

But it’s absolutely stupid to spend your time doing things you don’t like in order to go on spending things you don’t like, doing things you don’t like and to teach our children to follow the same track. See, what we are doing is we are bringing up children and educating to live the same sort of lives we are living. In order they may justify themselves and find satisfaction in life by bringing up their children to bring up their children to do the same thing. So it’s all retch and no vomit – it never gets there! And so therefore it’s so important to consider this question:

What do I desire?

Alternatively, Gavin Aung Than of Zen Pencils turned the quote into a very cool comic:

alanwatts_zenp

Stuff like this is always controversial. Too dreamy? Too hippie? My current opinion is that it all depends on the person. Some people don’t have a strong affinity towards anything, they may value safety or prestige other things. (Is that really wrong if that’s what they want?) But to some people, they do have a latent desire, and reading such stories is like a wake-up call. Yes! That thing that you always think about in the shower, or right before you go to bed? Yes you should try that!

In the end, I think if you are going to spend a huge chunk of your life doing anything, then it should be at least be aligned with your personal beliefs. Only you can decide if that is currently the case, or if a change must be made.

Robinhood App Review: What’s The Catch Behind Free Stock Trades?

robin0Finance start-up Robinhood promises to “democratize the financial markets” by creating a mobile-first brokerage that offers unlimited free trades with no minimum balance requirement. That is a pretty bold move, and I was skeptical when they started getting noticed in late 2013.

A year later, they’ve gathered $16M in venture capital and last week publicly launched their iPhone app (no Android yet). I’ve already been a beta user of their app for ~5 months (thanks to you guys) and here’s my review.

Application process. You must provide your personal information including Social Security number, net worth, income, investing experience, etc. This is the same as any other brokerage firm, but this may also be the first such account for many users. Everything was done online; there were no paper documents that required mailing or faxing.

Core features. Yes, the app gives me $0 commission trades with no minimum balance requirement. That means you could open account, put in five bucks, and buy a single share of Zynga (ZNGA) if you wanted to. You can make market or limit orders. You can open a cash or margin account. Along with all the other legit brokerage firms, Robinhood Financial is a member of the SIPC which protects the securities in your account up to $500,000. Data is encrypted with SSL. Apex is their clearing firm.

Funds transfers. You can link any bank account with your routing number and account number, but you can also directly use your username and password at these 9 banks: Bank of America, Wells Fargo, Chase, Citibank, US Bank, USAA, Fidelity, Charles Schwab, and Capital One 360. Such ACH transfers are free.

What’s missing? Getting free trades is great, but I think it’s also important to know what you won’t get, at least right now:

  • You must access your account via your iPhone, iPad, or iPod Touch. Android and web interface are “coming in 2015″.
  • There is no phone number for customer support, at least that I can find. All their contact links direct you to compose an e-mail to support@robinhood.com. I’d feel more comfortable with a phone number, but customer service agents cost money.
  • No advanced order types like trailing stop-loss or trailing stop-limit.
  • According to their fee schedule, broker-assisted phone trades are $10 each. But again, I can’t even find a phone number to reach a broker.
  • Electronic statements are the default. I don’t even see an option to enable paper statements in the app, but according to their fee schedule paper statements cost $5 a pop.
  • Currently, they do not support ACAT transfers, so you can’t move over your existing assets from an outside brokerage. (Or move out your assets via ACAT either, I’m guessing.)

How do they make money? For now, Robinhood will make money the same way other brokers do: collect interest on your idle cash, charge you interest for margin loans, and sell order flow. The most innovative prospect is to the plan to sell API access to other financial apps.

User interface. Over the last 10 years, I’ve opened an account at the majority of the “discount” brokerage firms. I’ve had $0 trades before, along with $2 trades, $2.50 trades, $4.95 trades and so on. What makes Robinhood special is their modern, app-centric approach. I agree with this quote from Wired:

But the app’s simplicity is meant to be about more than style. Ease of access and understanding is meant to make Robinhood compulsively engaging for a new generation of investors that don’t find the stock market very accessible from the mobile screens at the center of their lives.

Even though I don’t trade frequently and I only hold one ETF in this account, I still check the app all the time. That’s more often than my primary Vanguard account. Why? Because it’s so easy. It takes only 5 taps. One tap on the Robinhood app logo, and four quick taps to type in my PIN. If I had a more recent iPhone, I could use Touch ID and get in with a tap and a thumbprint. I know, security, but I just won’t type in a 16-character password on a tiny keyboard just to check a balance.

Screenshots.

robin1 robin2

robin3 robin4

Recap. Robinhood delivers on their free stock trades with no minimum balance promise. The app-only user interface is clean and intuitive, if a bit minimalist on features like order types. You do give up some traditional brokerage features like phone customer service and paper statements. I’m still skeptical about whether they can make the economics work over the long run, but they do appear to be streamlining wherever they can.

More: Fee Schedule, Official FAQ, Techcrunch, Buzzfeed

Note: If you’re still on the waiting list, they state plans to onboard you within the first two months of 2015. If you’re signing up now, you can set up a stock watchlist on the app, but don’t expect to open an account for a couple of months.

Chase Freedom $200 Bonus Ending Soon + 5% Categories for 2015

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$200 Bonus ends 12/17. Future 5% categories for all 2015 announced. The Chase Freedom® - $200 Bonus is a solid all-around rewards card with 5% cash back in rotating categories, all with no annual fee. Here are the highlights: For a limited … [Read the rest]

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Expired as of midnight Eastern. I thought 100k would last longer than a day. Starbucks has a new $10 holiday bonus promotion: Be one of the first 100,000 to buy a Starbucks Card eGift (min $10) with your Visa® card and we will add an additional … [Read the rest]

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Chart: International Bonds and Risk-Adjusted Returns

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Here another data point on the topic of adding international bonds to your portfolio. The AllianceBernstein Blog has post on how adjusting the US/Global mix of your bond asset allocation affects risk-adjusted returns: Using data from … [Read the rest]

US Airways Premier World MasterCard Review: 50,000 Mile Bonus (Updated)

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Bonus improved from 40k to 50k miles for limited time. American Airlines and US Airways have announced new details about their upcoming merger. As expected, the two frequent flier programs will merge and all the miles will become American AAdvantage … [Read the rest]