90 Important Things You Must Know to Successfully Survive the Future

ACKNOWLEDGEMENTS

Sincere thanks to Emanuel Agorastas, Lisa Atwater, David Bessie, Jody Dunn, George Harmina, John Jarvis, Gwen Jones, Barry Mc Waters, Tonia Sedlock, Betsy Sullivan, and William Wertz.

Special thanks to Computer Arts Institute of San Francisco for their patience with this project; Desktop Publishing Inc., and Business Works of Mill Valley.

This book could never have come about without the input of my many clients and students I have had throughout the years. My deepest gratitude to the many organizations, articles, researchers and professionals that made this project possible.

And finally with deep gratitude to Jon Campbell for his incisive comments, his timely wit and eye to detail.

A book to keep in your purse, glove compartment, or desk for constant reference. Filled with well researched facts and suggestions to help avoid the pitfalls. Merlin Hellener"

Our over extension in spending has put us in precarious waters. Governments at every level are shakey. Pension fund administrators are worried. Dr. Stearn offers sound advice for coping with what’s ahead.

Thomas R. Stoup, former owner of Blue Door Book Store, San Diego, California.

Dr. Stearn has concisely combined the facts with the emotional reasons that affect our everyday decisions on money, health, credit, and taxes.

Pellar Marion, Ph.D., Author of ‘Crisis Proof Your Career.’

Organization is the key to creation. This book organizes principal survival elements so creativity can flourish. Jerry Allen Kler, AIA Architect

FOREWORD

I like this book. I like a book that I can pickup for ten minutes or a half-an-hour and know that I've gotten something out of it. That something is information, vital information. Information is the grease that keeps our complex modern society running. Correct well-documented information is the kind that you always need now. Marshall Stearn's book has that kind; information that will keep you on par or ahead of the crowd. There are facts in this book, not opinions. Facts that will keep you healthy, facts that will keep you safe, facts that will keep your money in your pocket instead of someone else's pocket.

I always thought that I had all the facts I needed to make quality decisions about my business and my personal life. As I read Marshall's book, page by page and article by article, I was surprised by what I didn't know about the Law, Finances, the Environment, Relaxation and any number of topics that affect our lives everyday, whether we are aware of those effects or not.

Ninety Things also has much to say about how we can counter or incorporate the circumstances that affect us every day, such as legal obligations, or every year, such as state and federal taxes. If you think you know all you need to know about such matters, well, think again! That's what I thought before I opened the pages of Ninety Things. Information gets old, out-of date.

There are lawyers, politicians, tax collectors, doctors and law enforcement officials making up new laws, new rules, and new policies all the time. You've got to keep up and Ninety Things is just the book to answer your questions and put you back in the right direction.

Here's what you need to survive in the future, just enough to help and not feel overwhelmed. If knowing makes you feel good, as it does me, you've come to the right place.

--Jon Campbell President Dexsas Inc.

Part One: Finances

1: HOW TO SELECT A PROPER STOCKBROKER

BACKGROUND

Here are twelve tips from Joseph Goldstein, associate director of the Securities and Exchange Commission (SEC) enforcement division, and Sarah Ackerson, assistant director of market regulations, that might help you find a proper stockbroker.

Be wary of any investment promise that seems too good. And if the broker guarantees that an investment will yield a certain amount, ask him to put it in writing. Chances are a crooked broker will balk.

Don't be lured into buying penny stocks just because you think it would be cool to own Ten-Thousand shares of anything.

Don't trust any broker you don't know. Chances are your name is on a list of several hundred potential investors that he called that day. Here's a second thing to be wary of here. Some unscrupulous brokers will try to develop a rapport with an investor by calling him several times. But he won't try to sell you anything until the third phone call or so.

If you don't understand an investment, don't invest in it.

Be wary of out-of-town calls. Why would a broker in Florida be calling your home in Kansas City? As some regulators say: if you can't walk across the street and shake the broker's hand, why trust him with your money? (A lot of scam artists work out of Florida, according to the SEC. Since they don't want to meet their prospective customers anyway, the con men figure they might as well live someplace warm.)

Before writing that check, investors should investigate the brokerage firm's history, and get a copy of its most recent financial statement.

If a broker tries to sell you stock in a company you cannot follow in any of the usual places, be careful.

Ask a regular brokerage firm whether it would be able to sell the stock you're thinking of buying. If a regular brokerage firm can't execute a sell order, you might be stuck with the stock for a long time.

If a broker you don't know says you have to buy a stock quickly because something good is going to happen, hang up. Another typical trick, says the SEC, is to tell an investor that another customer just canceled a buy order for some stock that has already gone up in price. The broker then tells an investor that he can have part of the trade that the other investor canceled, but only if he moves quickly.

If a broker you are not familiar with tells you he has some hot information about a company (for instance, it is about to be acquired), chances are you are being set up.

Check out the brokerage firm representative that calls you to see if he has a record of securities violations. Most states keep tabs on violations, as does the SEC. The North American Securities Administrators Association (NASAA) in Washington acts as a liaison with state regulators.

Remember that brokers from scam firms use scripts. Just because someone can answer all your questions without stumbling, it doesn't mean that he's on the up-and-up.

Always be careful. It is a jungle out there.¹

2: THE TEN MISTAKES TO AVOID WITH YOUR MONEY

BACKGROUND

Clint Willis' article in Money Magazine states, No matter how smart we are, we all make dumb mistakes about money that cost us thousands of dollars every year, often without being aware of it. The culprits: a series of mental blind spots and knee-jerk reactions that befog most financial judgments. But we can learn to recognize and avoid these pitfalls. He further states that financial mistakes are made for many reasons. Namely, poor advice, misreading the market, greed, fear, laziness, and other human frailties. Don't expect your decisions to be perfect, but understand your own motives when you make decisions. At least you can never call your self a fool.

MISTAKES

Innate overconfidence makes us quick to assume that what we know is accurate and complete even when our information is sketchy.

We rely on data that shouldn't count to make decisions that do.

We confuse isolated events with the big picture.

We ignore or challenge the odds even when they're stacked against us.

We underestimate the role of chance in everyday life.

We don't always treat a dollar as a dollar.

We mentally pidgeonhole money in ways that frequently don't make much sense.

Our tolerance for risk is situational, instead of consistent. nine. We often throw good money after bad. ten. We frequently overlook the cost of an opportunity.

ADVICE

When you confront an important investment or purchase, write down everything you know that might affect its outcome. Next list what you don't know that might also be important. Ponder your lists, and then gather whatever additional facts you need to make a well-informed decision.

When a decision involves figures, such as an asking price or an anticipated rate of return, dig for all the numbers that seems relevant.

Discount random experience. For example, if you hear good news about a company, don't call your broker to buy the stock. Ask instead for an analysis of the firm as a whole and keep digging until you are sure that it's a good buy.

Before you undertake a difficult venture or risky investment, study relevant background data to weigh your chances. Don't dismiss discouraging evidence. Instead, try to analyze it. Maybe you can beat the odds, but only if you know exactly what problems you're up against.

Don't assume that past investment results are meaningful, especially short-term results. When choosing a mutual fund, for example, consider other factors such as movement over the past three to five years. Also: whether its holdings will help balance your total portfolio.

When you are making a sizable purchase or investment, consider each component separately.

Use labeling tricks to your advantage: before you invest or spend a windfall, park the money in a bank account for six months. That is time enough for you to begin thinking of it as savings. Or open a payroll deduction plan at work that will automatically channel income into investments.

If an investment performs poorly, don't hang on too long if there is a potential for further loss. On the other hand, if an investment posts gains, review the potential for additional profits before you decide to sell. Don't look back. Don't consider what you paid for a stock yesterday. Instead, ask yourself whether you'd buy it at today's price. Before you spend or invest consider at least half a dozen other uses for the money. Likewise, review your investments once or twice a year to be sure your assets are well deployed among available opportunities. If an investment isn't performing well, think about how you could use the proceeds from selling it.²

3: STAYING FINANCIALLY ALIVE, PART 1

BACKGROUND

The future does belong to those who plan for it. This is a logical statement which most people can accept, especially for their financial affairs. Yet day-to-day pressures and short-term money needs seem to delay major decisons about our financial future. We wind up doing little or nothing to initiate a comprehensive, meaningful financial plan.

Complicating matters even more, financial planning is especially complex because of today's volatile and confusing economic climate. Inflation, taxes and varying interest rates create stress and uncertainties for everyone.

While most Americans operate under these exacting conditions in their attempt to acquire and maintain wealth, some achieve a greater degree of financial independence than others. Add to this the fact that Social Security benefits, the basic source of retirement income, will be modest at best. Thus the need to plan becomes apparent.

How do the fortunate gain financial independence? Mostly not through luck or windfalls. They succeed by developing a carefully thought out financial plan offering the greatest opportunity for achieving goals, executing that plan and by periodically