"Like Dissolves Like" - An Insight into Attraction

The golden rule of solutions chemistry is "like dissolves like". These three words provide the guide for predicting solubility when dealing with "polar" and "non-polar" solvents (substances capable of dissolving other substances) and solutes (substances that are dissolved by solvents). One common example of this rule can be seen when trying to mix oil (non-polar) and water (polar). No matter how hard you try, water simply will not dissolve oil but if you put table salt (polar) in water, it dissolves very easily. This phenomenon is not only useful in predicting the solubility of solvents and solutes but also provide insight into human attraction.

Attraction, many may argue, is a function of our experiences and social definitions but Dion (1973) found that children as young as three years old exhibit the ability to perceive attractiveness. Across cultures, there are strong "universal correlates of beauty" (Wikipedia - physical attractiveness):

• Physically Attractive Males have:
  
• Slim waists and broad shoulders (V shaped torso)
• Strong brow, high forehead and broad jaw (masculine features)
• Heights taller than their mates (1.1 times their height is preferred) and erect posture
  

• Physically Attractive Females have:
• Youthful appearances - full lips, clear, smooth skin, clear eyes, lustrous hair and good muscle tone
• Hour-glass figure - a waist circumference 70% of the hip circumference
• Heights shorter than their mates
• Symmetrical faces and high cheek bones, big eyes and a thin jaw
  

Most of these universal traits of attraction have underlying procreational explanations. The hour-glass figure symbolizes female fertility and a symmetrical face is a sign of good genes that are free from disease. Taller heights and masculine features in men are a symbol of strength and protection for the family.

In psychology, there have been many experiments dealing with human attraction. One prevailing conclusion that resonates with the "like dissolves like" theme is that individuals find those who are genetically unrelated but have similar facial features more attractive than those with dissimilar facial features. According to Sappenfield and Balogh (1970), perceived attractiveness towards another person was highly correlated to the perceived similarity to oneself. Murstein (1972) conducted several studies showing that people find others in their same "level" of attractiveness attractive. These conclusions were supported by other studies conducted by Cavior and Boblett (1972), Curran and Lippold (1975) and Chambers et al. (1983). Hinsz (1989) found that people tend to marry people who look like themselves.

These findings should not come as a surprise since it is very reasonable that people are attracted to those who are similar to them. Aside from physical appearances, Byrne et al (1986) suggests that people are attracted to homogamous characteristics such as age, race, education, beliefs and values and this in turn will enhance attraction. Knox (1997) came to a similar conclusion that people prefer homogamous traits when dating and considering a spouse. Parents want their children to reflect their values and religious beliefs but if the parents have different value systems, it can become very confusing for children who usually emulate their parents' beliefs.

Many people including Paula Abdul believe that "opposites attract". Experimental research (check bibliography below) has shown that this catch phrase is best saved to describe magnets. Most people who use the phrase "opposites attract" to describe their relationship, don't realize that they probably have more things in common than they thought. Most of the time, couples may be superficially opposites (different hobbies and interests) but have very similar personalities and values. "Opposites attract" may apply to infatuations and relationships spawned from rebellion but as one matures and seek meaningful relationships, similarities dominate as "like dissolves like". As with all situations, it is possible to have a long term relationship with someone who is truly your opposite but it is probably ill-advised since it's almost always an invitation for trouble. Long term relationships are hard as it is, why make it even more difficult.

Another reason why "likes" attract is that they are familiar and thus more memorable. Psychologist David Perrett (2002) found that young men and women were attracted to faces of those most resembling their mothers and fathers, respectively. This basically means that a sense of familiarity is enough to cause attraction. This is further supported by anatomical research on the fusiform, special part of the human brain needed to recognize faces of family, friends and people we are familiar with. Those with a damaged fusiform cannot recognize anyone and in experiments, they are unable to discriminate between photographs of plain and beautiful faces! This attraction for the familiar goes to explain why most couples tend to favor their own ethnicities.

Just like non-polar solvents can undergo chemical substitutions/transformations to become miscible with polar solvents. People can and normally do change (article on Change) to become more similar to their significant others. Couples that have been together for a good amount of time will usually begin to adopt each other's mannerisms and demeanor causing them both to become more akin. It is almost as if they "dissolve" into each other with both having properties of the other person.

This "like dissolves like" attraction phenomenon is a good reason for the success of online dating websites who require its members to complete detailed personality profiles that is used for finding a "suitable" match. There are still many other layers, such as the "groupie effect" and the "sexy son hypothesis", to human bonding and attraction. Look forward to future articles dealing with these topics. In the interim, feel free to give your own insights into attraction and whether you think "opposites attract" or "birds of a feather flock together" in the comments section.

Recommended Readings: Looks: Why They Matter More Than You Ever Imagined by Gordon Patzer and Survival of the Prettiest by Nancy Etcoff

Bibliography

1. Dion, K.K., (1973). Young children's stereotyping of facial attractiveness. Developmental Psychology, 9, 183-188.
2. Knox, D., M. E. Zusman, and W. Nieves. (1997) College students' homogamous preferences for a date and a mate. College Student Journal, 31, 445-448
3. Sappenfield, B. R. & Balogh B. (1970). Perceived attractiveness of social stimuli as related to their perceived similarity to self. The Journal of Psychology, 74, 105-111.
4. Byrne, D., Clore, G., & Smeaton, G. (1986). The Attraction Hypothesis: Do Similar Attitudes Affect Anything? Journal of Personality and Social Psychology. 51, 1167-1170.
5. Cavior, N. & Boblett, P. J. (1972). Physical attractiveness of dating versus married couples. Proceedings of the Annual Convention of American Psychological Association, 7, 201-202.
6. Chambers, V. J., Christiansen, J. R., & Kunz, P. R. (1983). Physiognomic homogamy: a test of physical similarity as a factor in mate selection process. Social Biology, 30, 151-157.
7. Curran, J. P., & Lippold, S. (1975). The effects of physical attraction and attitude similarity on attraction in dating dyads. Journal of Personality, 43, 528-539.
8. Hinsz, V. B. (1989). Facial resemblance in engaged and married couples. Journal of Social and Personal Relationships, 6, 223-229.
9. Murstein, B. I. (1972). Physical attractiveness and marital choice. Journal of Personality and Social Psychology, 22, 8-12.
10. Perrett, D. I., Penton-Voak, I. S., Little, A. C., Tiddeman, B. P, Burt, D. M., Schmidt N., Oxley, R., & Barrett, L. (2002). Facial attractiveness judgments reflect learning of parental age characteristics. Proceedings of the Royal Society of London B, 269, 873-880.

Warning: We're Running Out of Water - The Scarcity of Life's Essence

"Water, water, every where,
And all the boards did shrink;
Water, water, every where,
Nor any drop to drink."

(taken from The Rime of the Ancient Mariner by Samuel Taylor Coleridge, 1817 Edition)

The mariner and his crew from Samuel Taylor Coleridge's famous poem understood the pain of water scarcity despite its apparent abundance. Their predicament is not much different from the predicament many people are currently facing. Although water covers 71% of the Earth's surface, less than 1% of the world's fresh water (or about 0.007% of all the water on earth) is readily accessible for direct human use (World Health Organization Fact Sheet, also see picture to the right). About one sixth of the world's population (1.1 billion people) TODAY has inadequate access to safe drinking water and it is estimated that by 2050, two-thirds of the world's population could be living in areas with chronic, widespread water shortages.

In the United States, we take water for granted. Everyone has access to affordable drinking water. Water is naturally recycled through evaporation and precipitation (hydrological cycle) and thus thought to be a renewable resource but with pollution and other factors, the recycling process is not fully efficient. Since the total supply of the Earth's freshwater is unchanged, this inefficiency will eventually lead to less potable water supplies.

In addition to drinking, there are many other human uses for water (Wikipedia):

• Agriculture - Irrigation for farmlands
  
• Hygiene and Sanitation/Sewage Treatment - Water facilitates chemical processing of wastewater
  
• Dissolving Agent - Used for washing almost everything.
• Extinguishing Fires - Most fires are extinguished using water
  
• Chemical Uses - Water is used for many chemical processes
  
• Recreation and Sports - Swimming, water skiing, ice hockey, snowboarding, etc
  
• Food Processing - Water is used to prepare many foods (boiling, steaming, simmering)
  
• Power Generation - Hydroelectric power. Water is also used as the coolant for both electric generators and nuclear power plants
  

As I write this article, crude oil is at all time highs ($118/barrel as of 04/23/2008) and food prices all over the world are rising (Corn Oil for the 21st Century). As the price of food rises, increased farmland and irrigation will cause further stresses on the world's freshwater supply. Many rivers (Colorado River in the US, Amu Darya River in Central Asia and the Yellow River in China) are already running dry causing villagers dependent on their waters to leave their villages and become "water refugees". Population growth across the world will also increase the need for drinking water and water needed for all the aforementioned human uses. In addition to population growth, the increasing affluence of the middle class in Asia (India, Southeast Asia and China) will lead to increase consumption of water due to a shift in diet from grain to meat (It takes one thousand times more water to raise a cow than to raise its equivalent in grain) and the movement towards better hygiene will result in more toilet flushes and other water consuming sanitation methods. Another big factor that may lead to an impending water crisis is the antiquated water infrastructure around the world. Deteriorating pipes and water treatment facilities lead to water wasting which will decrease the already scant supply of freshwater.

If we don't start conserving and searching for alternate ways to recycle our water supply, the price of water will go down the road of other limited natural resources such as oil and natural metals and we may soon be lamenting (in the prose of Coleridge):

Water, water, every where,
None for use, the price too high;
Water, water, really no where,
Did I cause this just standing by?

The rising costs for water are fairly apparent. Monetarily, it is obvious as prices on water bills continually rise but not so obvious is the damage being done to biodiversity. Since there is a limited amount of fresh water, as humans increase their use there is a natural depletion of water availability for vegetation and wildlife dependent on freshwater. Wetlands (bogs and marshes such as the Florida Everglades) and their resident lifeforms are already suffering from fresh water depletion and many water dependent species are joining the ever growing endangered species list - International Union for Conservation of Nature (IUCN) Red List of Threatened Species. This loss of biodiversity hurts the discovery of future medicines and foods. When interdependent ecosystems become disturbed, bad things happen.

Another expense of water scarcity is WAR. We have already seen it with oil and if nothing changes, we will definitely see it over water. Rivers and other bodies of freshwater supplies do not follow national borders and one country's use of its water directly impacts the supply to other countries using the same freshwater source. As a matter of fact, there have already been several conflicts over water (Egypt vs. Ethiopia, India vs. Pakistan, Turkey vs. Syria vs. Iraq and Israel vs. Jordan). When it comes down to securing and/or protecting water resources for its citizens, the most peaceful country is more than willing to go to war. Even if conventional war is not waged, water shortages will lead to mass migrations, rampant disease propagation and food shortages.

Unlike scarcity of other natural resources, scarcity of water is a matter of life and death. A person can live weeks without food but only days without water (How Long Can You Survive Without Water?). So whether you care about the environment and its species, world peace, the money in your wallet or your own survival, it is necessary to conserve water and to be proactive in protecting our freshwater supply.

Here are some ways to prevent the looming water disaster:

1) Get Educated - There are numerous free resources, such as Water Partners International, concerning water conservation and the water crisis all over the internet. In order to live a water conserving lifestyle, one has to learn how and why it is necessary to save water.

2) Use Less Water - According to the Sphere Project Handbook "Humanitarian Charter and Minimum Standards in Disaster Response.", the average person needs 4 to 5 gallons of water per day to survive. The average American uses about 150 gallons of water at home each day. There is definitely room to cut back. Click here for some water saving tips.

3) Spread the Word - Tell EVERYONE that you know about the water crisis and ways to conserve. Standing idly by as others remain ignorant about the water problem is as bad as wasting water yourself.

4) Voting - Vote for political candidates who are sensitive to and understand the water issue. This will help lead to legislation for water conservation and economic incentives for water technology.

Every little thing helps. Many people doing little things will eventually have a huge impact. That is why it is important to get educated, use less water and spread the word about the water crisis.

The current situation in natural resources is described perfectly by Mahatma Ghandi:
"The earth provides enough to satisfy every man's needs, but not every man's greed."

Additional Seemingly Useless Commentary:

Gulf states such as Saudi Arabia, United Arab Emirates and Kuwait are experiencing economic boons because of record high oil prices. Interestingly, the gulf states are also located in one of the most freshwater deficient areas in the world where they have to resort to desalination, the expensive conversion of sea water to freshwater. In the future, if water prices begin to rise, demand for other not-as-essential goods such as oil will decrease. This may lead to a reversal of fortunes for these Middle Eastern states as their incomes begin to decrease but their cost of surviving begin to increase. If nothing changes, it is possible that the Middle East will become uninhabitable. On the flip side of the coin, if the gulf states invest their "oil money" for water research and infrastructure, perhaps we will see a "Blue Revolution" on par with the 20th century agricultural Green Revolution.

For investors and traders, it is perhaps possible to hedge this impending water crisis by investing in companies related to water. Whether it is water utilities (NYSE: WTR - Aqua America Inc.), water desalination (NASDAQ: CWCO - Consolidated Water Co.), water equipment for treatment and storage (NYSE: PNR - Pentair), water infrastructure (NYSE: AMN - Ameron International Corporation, water purification (NYSE: CCC - Calgon Carbon Corp), water irrigation (NYSE: LNN - Lindsay Corporation) or simply the water exchange traded fund (NYSE: PHO - Water ETF), in a situation when water becomes scarce, these companies will stand to benefit (Just look at the oil services sector in the past few years (NYSE: OIH).

Disclaimer: I don't currently own any of these stocks but I am looking to invest in water for the future. As with any stock recommendations, there is no guarantee of success and it is possible that you can lose all your money.

This may perhaps be the most important issue for the 21st Century and should not be taken lightly. I will try to touch upon water-related disease and health issues in a future article. Please feel free to leave comments especially those relating to water and practical ways for conserving water. If you want to send anyone this specific article, copy and paste this link to do so: http://seeminglyuseless.blogspot.com/search/label/Water%20Crisis

Recommended Readings: Blue Covenant: The Global Water Crisis and the Coming Battle for the Right to Water by Maude Barlow, The Rime of the Ancient Mariner by Samuel Taylor Coleridge and When the Rivers Run Dry: Water - The Defining Crisis of the Twenty-first Century by Fred Pearce

How to Take Charge of Your Learning

I was recently watching a video by Dr. John Berardi on nutrition and he talks about the four stages of learning. Although his discussion was focused on nutrition, the four learning stages mentioned transcend all subjects and can be applied to learn any skill. Most people find it difficult to learn because of the natural negative feedback one receives from "not doing it right" or "never being able to get this". Interestingly, these feelings of incompetency and frustration are part of the four steps of learning. Knowing these four steps will help you persevere and succeed in learning your desired skill. So without further ado:

The Four Stages of Learning

1. Not Knowing and Unaware - Blissful ignorance before learning begins. "The individual neither understands or knows how to do something, nor recognizes the deficit or has a desire to address it." (Wikipedia) Ex: A person is unaware that they are holding and using chopsticks the wrong way.
2. Not Knowing and Aware - "Though the individual does not understand or know how to do something, he or she does recognize the deficit, without yet addressing it."(Wikipedia). This is where most of the aforementioned frustration over being incompetent occurs. This is probably the most difficult step for most to overcome. Ex: The person has observed others holding chopsticks or came across some chopstick directions (common on the back of chopstick wrappers at Chinese restaurants) and realizes that his/her way of holding chopsticks is wrong.
3. Knowing and Aware - "The individual understands or knows how to do something. However, demonstrating the skill or knowledge requires a great deal of consciousness or concentration." (Wikipedia). Ex: The person learns the correct way to hold the chopstick but he/she will not hold it the right way unless he is consciously trying to hold it correctly.
   
4. Knowing and Unaware - Something is truly learned once it becomes natural to us. "The individual has had so much practice with a skill that it becomes 'second nature' and can be performed easily (often without concentrating too deeply). He or she can also teach it to others." (Wikipedia). There is full internalization of the skill but the exact moment of achieving this step is hard to pinpoint. Competency occurs but we don't know how it occurs. Ex: After much practice, the person now naturally holds and uses chopsticks the correct way every time he/she picks up a pair of chopsticks. That person doesn't think about holding the chopsticks the right way and just does it. When others comment about his/her skill, he/she doesn't even realize that he/she is holding it correctly or incorrectly. When observing others, he/she can usually point out if others are holding their chopsticks correctly and teach them if they are not.
   

Above is a diagram from Luc Galoppin's management consulting blog. It sums up the four steps to progress from being incompetent to being competent in a nice visual manner. One is not really competent until they reach the fourth and final stage. Usually the final stage occurs unexpectedly. One day things will "just click" and make sense and it is difficult to attribute it to any defining moment. Many people get stuck in stage 2 or stage 3 because these stages cause the most resistance thus requiring the most amount of work. During these stages, it is easy for people to get bogged down in collecting the right information and knowledge and forgetting to actually practice the skill they are trying to learn. Achieving competency is a journey that does have an end. The most important thing is to start walking. Like Nike's famous slogan "Just Do It" - Don't just think about being competent in something, go out and do it. If you want to jump higher, don't just read books about jumping higher, go out and practice jumping. If you want to learn how to speak Russian, sign up for a Russian language class. Be proactive about being competent, no one else is going to make you more competent but yourself.

Recommended Reading: Experiential Learning: Experience as the Source of Learning and Development by David A. Kolb and Workplace Learning & Development: Delivering Competitive Advantage for your Organization by Jackie Clifford

Personal Finance Tip #4 - Mutual Fund Fees

The last tip in the Personal Finance Series revolved around Retirement Accounts. This article, written by the same knowledgeable guest writer, will discuss the popularly encountered but rarely understood world of mutual fund fees.

Most people attain exposure to the stock market via mutual funds, defined as a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. However, with well over 8,000 mutual funds that exist today (http://www.ici.org), how do you know which fund to invest in?

No two mutual funds are the same and not every mutual fund will invest according to their published investment objective. Also, and most importantly, some have a string of fees that will make a huge difference in your net return especially during recessionary times like today. Therefore it is critical to understand the fees involved before you make any mutual fund investments.

For example, you might notice the following fee:

Sales load- This is a fee that is used to pay brokers that promote a specific fund. It can be either a front load or back load fee and is usually 5% of your investment. For example, if a fund has a 5% front load, and you decide to invest $100 into the fund, then you will pay $5 (or 5%) immediately and your initial investment would be $95 instead. Your net return must exceed 5.3% ($5/$95) in order to break even. Back-load fees just mean the fee is taken when you redeem your shares. If your investment has done well then the fee would clearly be higher.

Many funds are considered no-load funds but there are also a number of non-load fees involved. Some include:

Redemption Fees- Some funds charge a fee when you redeem your shares, which are not considered back load fees because the fee is paid to the fund, not the broker. The SEC has limited the max redemption fee charged to be 2%. Some funds also charge a redemption fee when you buy and sell within a short term time frame (i.e. 60 days).

Exchange Fees- Some funds charge a fee when you exchange one fund for another within the same family.

Account Fees- Some funds charge a fee that will be used for the maintenance of accounts.

Purchase Fees- This is the same as a front load fee, except the charge goes to the fund, not the broker.

Finally, you will probably find the following fees with every fund you purchase:

Management Fees- The fee charged to pay the professional(s) for managing your assets and making the investment decisions.

Distribution Fees (aka 12b-1 fees) - Fees charged to cover distribution expenses (i.e. marketing, printing, etc).

The above sounds quite expensive and you may end up in the red for a long time if the wrong fund is chosen. Thus, be sure to review the “net expense ratio” which will tally all the fees involved. From my experience, the average expense ratio for equity mutual funds has been around 1-1.5%. Anything higher would be relatively expensive. Further, bond fund expense ratios are typically lower.

Here are some tips that will help you learn and understand more about mutual fund fees:

• Use websites such as www.morningstar.com to learn about funds. All you need to do is to type in the fund ticker and not only will you find out the fund fees but you will also learn interesting facts about what your fund is invested in.

• Read the prospectus for your mutual fund. If you are dealing with a broker, ask him/her to provide one.

• You can also Google the fund name and look for the prospectus through the fund’s website. The actual prospectus could be thick (don’t be discouraged) but understanding the facts will make you a smarter investor!

• Finally, you can reach out to the fund’s customer service department and have them explain what fees are involved. The phone number is almost always on the fund’s website.

Final thoughts: During bull markets, most investments go up and people focus less attention on the fees they pay. However, when times are rough (and believe me, the stock market does not look pretty right now), it is extremely critical to be saving every extra penny that you can. Therefore, do your due diligence correctly and make smarter choices about mutual fund investing today!

If you have any questions or comments concerning mutual fund fees, please leave a comment or send an email to seeminglyuseless@gmail.com

Useful Websites:
Morningstar.com

Survival of the "Fittest" - Flexibilty and Specialization

"It is not the strongest that survives, not the most intelligent, but the one most responsive to change" - Charles Darwin from The Origin of Species

Whether you believe in evolution or not, it is undeniable that Darwin's observations were insightful. Contrary to popular belief, it is not the strongest or smartest that survives but rather those that are the most adaptable. Survival of the "Fittest" does not mean physical or mental fitness but rather being the best fit for your environment. Since our surroundings are ever changing, one needs to constantly adapt to new environments. In order to adapt, one needs to understand change (Here is article concerning CHANGE). The faster one can acclimate to their new environment, the higher the chances of survival. In addition to surviving, those who can adapt are usually also successful because they are resourceful and flexible in dealing with all situations.

One good example of an ever changing environment is the stock market. Especially with the recent volatility, it is clear that the only thing certain is uncertainty. Those who are inflexible have a hard time making money in a market where adaptability is rewarded. One needs to recognize when market conditions have changed and tweak their strategies accordingly. Those who don't change are usually the ones that shelter their egos and refuse to admit that they were wrong. There is a fine line between holding onto your convictions and being wrong. Those who have a sound strategy know that as long as all the signals are indicating a certain trade, it is the right thing to hold onto your convictions. They usually have an exit point on both the winning side and losing side. People who are wrong usually have no strategy or deviate from their strategy because their emotions and ego get in the way. They are holding a stock for no good reason with no exit plan. These are usually also the same people who are susceptible to following "tips" and "hot stock picks" from TV/online gurus. Most top traders rank flexibility, the ability to adapt, as being one of the most important traits contributing to their success (Electronic Day Traders' Secrets and Market Wizards).

In order to survive in a job and in life, one must do what they are "fit" to do. As discussed in the Jack of All Trades article, people are generally more interested and passionate in subjects in which they excel. It only makes sense that one should pursue an occupation that one enjoys and is "fit" to do. If you do not perform a certain job well, it is probably very likely that you will be fired and replaced by someone who can perform the job better. If everyone specialized in their best field/subject area, the world would be so much more efficient. Imagine a row boat at sea with two people, one rower and one navigator trying to reach an island. If one person was physically strong and the other person was better at reading maps and using a compass, it would make sense to make the strong person row and the other person navigate. This "division of labour" would lead to the most efficient situation because each person was "fit" to do their specific task. It is possible to have the physically strong one navigate and the other person to row, but that would most likely lead to much wasted energy although they might still be able to reach their destination. It may seem obvious that one should pursue a job they are fit to do and enjoy, but from my observations, that is usually not the case:

Why do people do jobs they are not good at?

• Social Pressures - Many people want to be doctors, lawyers and bankers because they are the social epitome of hardworking success. Those that perform well during their educational years are often pressured by family members, counselors and friends to pursue such positions.

• Money - People love money. It doesn't matter what they do as long as they get a big pay check. It doesn't matter if the position does not provide stability or benefits as long as the salary is high enough. Monetary wealth is also a societal measure of success.
  

• Need for Stability and Benefits - Many people, especially poor immigrants, live paycheck by paycheck and need to support their families. They are willing to do anything as long as it is a steady paycheck they know they can depend on. Many families are also dependent on company sponsored health insurance. With the rising cost of health care, people can not afford to leave their jobs, whether they enjoy it or not.
  

• Lack of Self Awareness - People rarely examine themselves. They like to be told what they like and what is good and what is bad. Most people don't know what they are good at because they never bother exploring or perhaps never had the resources or chance to find out. They take media (TV, magazines, newspapers, etc) portrayals as a substitute for self scrutiny. It is much easier to adopt someone else's meaning of happiness than to try to figure out your own.
  

Are you fit for your current occupation? When I was young, I wanted to be a doctor/lawyer because of the prestige and status but as I grew older and learned more about myself and also what the positions entailed, I realized that I was not "fit" to be a doctor/lawyer. It was not a competency issue but rather a conflict of personality and interests. I knew I didn't want to work long hours or do tons of reading or have the physical well being of someone decided by my two hands. There were aspects to these jobs that were appealing such as patient interaction and acquiring the skill to help others and to save lives but on the whole, I knew these were positions I was not fit to do. I was able to come to such realizations after much introspection. Even if you don't know what you are fit to do, you can probably narrow down what you're not fit to do. One needs to learn about oneself and be brutally honest about your abilities and your future goals and dreams. It is easy to fall into society's definition of success and achievement but in order to survive, it is necessary to do something you're "fit" to do.

"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." - Ursula K. Le Guin

Flexibility and Specialization are opposing concepts. When one specializes, as seen in an assembly line, they naturally become less flexible since they are focused on a performing one particular function. Using the row boat analogy, the stronger person that constantly rows the boat, will never learn to navigate and the person that is always navigating will never learn rowing techniques. Despite their opposing nature, both specialization and flexibility is necessary because one has to fit their environment and adapt to the always changing environment, respectively. Uncertainty can be disorienting but if you can strike a balance between being flexible and achieving specialization, you'll be able to survive and be successful in all conditions, unlike the unfortunate Dodo bird in the picture above.

Comments and Personal Stories are always welcome in the comments section or at seeminglyuseless@gmail.com

Recommended Reading: The Origin of Species by Charles Darwin, Electronic Day Traders' Secrets by Marc Friedfertig and Market Wizards: Interviews with Top Traders by Jack D. Schwager

How I Became Healthy Part 2 - Race vs. Life Expectancy

It has been about a month since I decided to PERMANENTLY overhaul my eating habits following the Seemingly Useless Diet and I have decided to provide another update (first update and Seemingly Useless Diet FAQ can be found here).

I have lost about 10 pounds (7% of my body weight) and I am definitely beginning to look leaner. So far, I have had no problems staying away from deep fried foods, junk foods, pork and candy. The psychological approach of the Seemingly Useless Diet has definitely helped to staunch my cravings for the unhealthy foods I use to love.

Since the last update, I have added more healthy alternatives to some of my favorite foods on the side bar of the blog.

Effects after changing my eating habits for about a month have been:

• Higher energy still without the hunger pains described in the first update.

• Still haven't had a food coma since I began this diet.

• Strengthening of the immune system (although the evaluation period may be too short to prove conclusive).

Since I started eating healthier, I observed some unintentional yet interesting statistics concerning the senior citizen (65 years or older) population in my area. Living in an urban melting pot, I am exposed to a plethora of different ethnicities but among the senior citizens, the ethnicities were less diverse. I noticed a lot more seniors of Jewish and Asian descent than any other ethnicity. I also observed that there were significantly less African Americans, Italian Americans and Hispanic-Latino among the senior citizen population. Although there are many factors that can attribute to this disparity, I believe diet is one of the main causes.

Asians, especially the Japanese, eat fish on a daily basis. It is an essential part of their diet mainly because that's what they grew up eating and it is cheaper to buy than beef and other meats. Asian cuisine, with the exception of Americanized Chinese cuisine (here is an article on the difference between Chinese cuisine and Americanized Chinese cuisine), is cooked with only moderate use of oil/butter and hardly ever deep fried. Jews have strict dietary laws called Kashrut (also known as kosher), which forbids many unhealthy foods such as pork and shellfish. These rules for food and food preparation were implemented to ensure that foods eaten were clean and would not cause sickness. It is no surprise that these two ethnicities with their healthy diet cultures tend to have longer life expectancy (assuming a strong presence of senior citizens correlates with longer life expectancy).

On the other hand, the diet of Italian Americans center around pasta, cheese, sausage and usually prepared in large portion sizes using lots of oil and butter. African Americans are usually known for their Southern comfort and soul foods consisting of foods such as fried chicken and catfish, bbq ribs, corn bread, grits and butter biscuits. Hispanic/Latino foods refer to Mexican, Cuban, Latin American and Spanish cuisine. They consist of foods such as fried pork chops, fried plantains, chorizo (sausage) and other meats. Brazilian cuisine has a heavy emphasis on meat. I am sure that my list is incomplete and perhaps even skewed but I am only stating what I see when I frequent the restaurants of these diverse cuisines. It is no coincidence that my observations match this interesting correlation between diet and senior citizenship presence. Although this is by no means a controlled experiment, I will still boldly conclude that the diet of one's race and culture definitely has a noticeable impact on life expectancy.

Socioeconomic status also affects diets because most cheap foods are also the unhealthiest. Fast food restaurants, junk foods, candy and soda are all cheaply priced but extremely detrimental for the body. As a child, I was raised in a poor low-income family and was consistently exposed to "bang for the buck" foods such as spam and instant noodles. When I received an allowance, I could only afford snacks such as potato chips, 25 cent artificial juice drinks, candy, Twinkies and other extremely unhealthy foods. Even when I thought I was spending money on "real food" it would be at McDonalds or some other fast food restaurant. Without the proper education on nutrition, I was not aware of the damage I was doing to my body and the lasting effects my diet was going to have in the future. Wealthy individuals have the luxury of dining at "nice" restaurants where foods are generally fresher and health consciously prepared. The main difference between an expensive restaurant and a cheap one, commonly portrayed in pop culture, is portion size of each dish. Contrary to reason, expensive restaurants actually serve more moderate to smaller portions whereas the inexpensive restaurants serve much larger portion sizes despite costing less. This makes the inexpensive restaurants even more appealing because not only do they prepare foods that are tasty (deep fried and lots of sugar, oil and fat) but you get so much "bang for the buck". In addition to eating smaller portions, it is probably safe to say that those who are rich can also afford other factors such as gym memberships, nutrition experts, and doctor's visits which lead to longer life expectancy.

Seemingly Useless Commentary: Although it may seem more expensive to buy healthier foods now, in the long run, staying out of the hospital will save you a small fortune. People who complain about the cost of healthy foods are penny-wise and dollar foolish. For some insight into the cost of health care, both financially and emotionally, visit the cardiac disease wing of any hospital and survey its residents. Director Michael Moore has made a very good documentary (Sicko, 2007) concerning the increasing inaffordability of health care.

Useful Websites:

National Center for Health Statistics: Life Expectancy

Jack of All Trades or Master of One

If you are familiar with who I am or have been reading the articles from this blog, then you will know that I am an avid learner and have taken on numerous interests such as Tai Chi Chuan, French, chess and guitar, just to name a few. One issue I constantly struggle with is whether I should stop pursuing new curiosities and start trying to really master some of the interests I have already cultivated. Should I be really good at many things or be outstanding at one or two things? The answer that I came up with is: Why not be both? Is it not possible to be proficient at many things while also mastering a few things?

In order to reach mastery, one needs to not only devote time but also have some sort of innate ability in that area. To clarify, mastery refers to possessing consummate skill and performing at the highest level. EVERY person HAS natural God-given talents and abilities. For some it might be book smarts and the ability to understand and express concepts (top students, orators, lawyers) for others it might be musical ability (instrumentalists, composers, singers), yet others might work really well with their hands (mechanics, painters, carpenters) and so forth and so on. The more natural ability you possess, the shorter time it will take for you to reach mastery. Unfortunately when we were born, a list specifying our talents was not attached so to discover our natural abilities, we must do so via trial and error. This supports the reasoning that learning numerous things (being a Jack of all trades) is actually a prerequisite to achieving mastery in a few.

Another characteristic required to achieve mastery is having a passion for the subject. Without passion, it is near impossible to endure the long arduous journey to mastery. This is further justification for being a polymath, a person of varied learning, because how can one know what they have a passion for without first attempting it. Interestingly, people are generally more interested and passionate about things that they are good at. Think about your favorite subjects in school or your favorite hobbies, I would be surprised if you didn't do well in those classes or if these hobbies weren't things that you were good at. Here is a personal illustration of this phenomenon: I use to enjoy math throughout all of my schooling until I did poorly in one of my advanced math classes and "coincidentally" decided that advanced math was boring, useless and unappealing. Ineptness has the funny ability to transform personal taste.

Although it is possible to be gifted in things you lack passion for, there is no point to obtain mastery for the sake of mastery. True masters are not just imitators but innovators. They understand their field comprehensively enough to take it to the next level. Without passion, there is rarely inspiration and creative insight. Personally, I don't think it is possible to master something that one doesn't love doing but impossible might be too strong of a word.

Being a Jack of all trades is merely a by-product in becoming a master and ultimately a Renaissance Man or homo universalis, a person who "develops skills in all areas of knowledge, in physical development, in social accomplishments and in the arts"(Wikipedia). This ideal stemmed from Leon Battista Alberti's notion that "a man can do all things that he will". It is important to note that the Renaissance ideal was not only limited to improving the intellectual but also the physical. Being a competitive athlete was just as important as speaking several languages or playing several instruments. One of the most famous polymaths was Leonardo Da Vinci, who was a painter, sculptor, engineer, biologist, actor, singer, philosopher, chemist, geologist, physicist, musician, astronomer and anatomist. Before his famous contributions to painting and sculpting, Da Vinci was definitely considered a Jack of all trades. Several interesting articles concerning polymath and a list of renowned Renaissance Men can be found here and at Wikipedia.

An issue that occurs when pursuing many diverse interests is the scarcity of time. Time is limited and each new interest depletes the already pressed time to seriously pursue these interests. Good news is - from my experience, there are several reasons why the problem of finite time should not deter you from learning new things:

• The more things that you learn, the more proficient you become in the skill of learning which results in an increased capacity to learn. Also, almost all topics are interrelated so what is learned in one area becomes useful when learning in another area (Chemistry of Learning). Example: Chinese Philosophy (Yin and Yang) helps people understand the principles of Tai Chi Chuan (emptiness and fullness) which teaches the importance of generating all movements from the hips (kua) which is useful for executing effective martial arts (kickboxing, grappling, Wing Chun, etc) and sports (golf, tennis, baseball, etc) techniques.
  

• Resources for learning are easy and fast to access with the Internet. There are countless online tutorials for every subject under the sun and if you prefer the classic training via a teacher, online networks can match you with a teacher, online or in-person, within seconds. Learning online also caters to your schedule so you can learn at all hours of the day. Having all these resources at the click of a mouse is definitely a strong asset against the ever falling sands of time.

• One can learn to use their time more efficiently. As you learn more things, not only will your proficiency in learning increase but also your ability to "find" free time. Flashcards and mp3 players are excellent tools in converting time used for traveling and waiting into learning opportunities. Audio books, language lessons, music lessons and more are all available during your commute to work, your wait at the doctor's office or Department of Motor Vehicles, or while you're busy doing chores at home. Combining several of your interests can also help to free up some of that precious time. Example: Stretching while studying/reading or practicing scales on your instrument as you watch TV.
  

Even if you may have found your natural ability and life's calling, it is still necessary to keep an open mind and to learn about/try many things. You never know if you have other hidden talents. The phrase "Jack of all trades, master of none" is currently used as an insult to refer to someone who is competent at many things but not magnificent in any particular one but the quote was originally meant to be used as a compliment in its full form: "Jack of all trades, master of none, though ofttimes better than master of one." As with everything, it is necessary to have a balance (Yin Yang Markets article), know your limits and don't spread yourself too thin but at the same time follow your interests even if it means stepping out of your comfort zone. Learn more today!

Recommended Reading: Polymath: 'A Renaissance Man' and The Polymath by Bensalem Himmich

Personal Finance Tip #3 - Retirement Accounts

With the increasing uncertainty of Social Security, it is necessary to start planning for retirement as soon as possible. It is important to become financially independent in your "golden years" even if you decide to continue working. Here is an excellent article concerning retirement written specifically for Seemingly Useless by a knowledgeable guest writer.

Perhaps you won’t get a raise anytime soon but that does not mean you cannot boost your take-home pay today! Most people do not realize that by thinking ahead into the future (i.e. retirement) they can actually increase their net worth by bundles today!

The key is to consider tax deferred vehicles such as Investment Retirement Accounts (IRAs) or defined contribution plans from your company, commonly known as 401k plans. By allocating a piece of your paycheck towards these vehicles today, you can lower the amount of money you pay to the IRS each year, which essentially is free money in your pocket!

How is this possible? One way to look at this is through a concrete example. Say you make $100 per week and you are required by federal and state tax laws to pay 50% in taxes. That means you get to take home $50 per paycheck and Uncle Sam takes $50. Yet, Uncle Sam did not work at all!

When you contribute to an IRA, you use before-tax money which means ultimately you pay less taxes to the IRS. So back to our example, say you decide you want to allocate 10% to an IRA account. That means $10 of your $100 paycheck will be transferred to an IRA and you pay 50% of the remaining money ($90) to the IRS. In other words, you pay 50% of $90 to the IRS (or $45) and you get to take home $45.

While your take home pay is lowered from $50 to $45, you also saved $5 in taxes to the government, which you will end up giving away had you not used your IRA. Thus, by simply thinking further ahead, you immediately accumulate free money year after year!

There are a few types of tax deferred vehicles that one should consider. We discuss the three most popular ones here: IRA, IRA Rollover, and 401k.

IRA - This is by far the most traditional of tax deferred vehicles. The idea is you make a contribution using pre-tax money and you won’t get taxed until you decide to withdraw funds at a later age. Most people utilize this vehicle because their tax bracket will be much lower by the time retirement happens so any tax payment then will not be as significant as it will be today. Another reason why people open IRAs is because they do not qualify for ROTH IRAs, which we will talk about later.

ROTH IRA - This is also a popular tax-deferred vehicle and is similar to an IRA with the exception that you use after-tax money to fund the account. Because you’ve already paid a tax on this contribution, you will not get taxed again at the time of withdrawal. If you expect to be in a higher tax bracket at a later age and you qualify in terms of income requirements, this is the right vehicle for you. If you invest $100 today and it grows to $5000 in 40 years, then you will save on a lot of taxes, especially if your tax bracket will be lower. The income limits are as follows: If you make more than $114,000 (or $166,000 as a joint couple), or if you are head of household or married filing separately and did not live with your spouse during the year, then you do not qualify for a ROTH IRA.

401k - Over the past decades, corporations started to provide more and more 401k plans instead of traditional pension plans for their employees. With a 401k plan, you make contributions with before-tax money and all gains are tax deferred until you make withdrawals upon retirement. One of the best things about 401k plans is that most employees will match your contributions up to a certain percent of your annual salary. Again, this is free money! By participating in a 401k plan, not only do you save from Uncle Sam, but you also collect extra money from your firm. Furthermore, you are saving for your retirement so the benefits are three-fold.

Here are a few more tidbits on IRAs/ 401ks that you should know:

1) You must make IRA contributions with earned income. (i.e. you cannot use dividends from stock investments to make your contributions).

2) You can contribute to both an IRA and 401k.

3) There are contribution limits for both IRAs, and 401ks. For IRAs, the limit is $4,000 for 2007 and $5,000 for 2008. For 401k plans, the limit is $15,000 for 2007 and $15,500 for 2008. You can also make “catch up” contributions if over the age of 50. Some companies may also have limits.

4) If you take money out of your IRA or 401k plan prior to retirement (age 59 ½), there could be penalties.

5) Within a 401k plan, your company will generally provide a list of mutual funds that you can invest in. When selecting these investments, make sure you understand all the fees you will pay. Also, it is somewhat risky to participate in employee stock plans, which is often a choice provided. Remember Bear Stearns? Well, many employees that invested in these company stock programs saw their money vanish because the company went out of business.

Final thoughts: While no one will hand you a stack of cash, there are indeed many ways to enhance your wealth. Be sure to familiarize yourself with these tax deferred vehicles and use them to your advantage today!!

If you have any questions or comments on IRAs/401ks or other retirement plans, please leave a comment or send an email to seeminglyuseless@gmail.com

Useful Websites:
Social Security Retirement Site