Test 2: Let's Get Rolling

Does the ShredMaster shred wood?
Subject: A child's balsa wood glider

































Result: Good tinder, bitch! Again, I had to flatten the plane so that it would feed smoothly.

Notes: There was a loud bang when the metal tip went through, but it's all good.

Test 1: The Control

Does the ShredMaster shred paper?
Subject: Sunday newspaper coupons and store ads

































Result: Shredded. The entire stack would not shred all at once. It had to be fed through in 2 parts.

Notes: The allowed width is much smaller than I had originally thought. This is going to require me to break things in to more manageable pieces.

Will it Sh... ssssshit it's a BOMB!

The 'Will it Shred?' grab bag I received from Slim had several pros:

1. It looked like a bomb and made our admin curious about who was trying to "off" me
2. It had lots of duct tape
   
3. Luckily, she didn't question the attention line of: 'Will it Shred?'
4. It was addressed with a post-it note
   
5. It caused me to lie: My boss asked, "What's in that thing? It looks really weird!" Me, "Um, I'm not sure; I haven't opened it yet... Yes, you're right it does look weird"

Good work, Slim. Way to stir up a pot of paranoia among lame suburban life. Better yet, with something we wouldn't ever think out of the ordinary. Another victory!

Will it Shred?

I’ve recently received a promotion at work which has meant me moving desks.
Con: My boss sits to my left side (easy delegation access)
Pro: To my right side, there is an industrial paper shredder (easy experiment access)

In an attempt to steer this blog back to it's original intention (fun and learning), each week, with the help of your items and ideas, I will shred things. The only guidelines (not rules) that I have are 1) an item must be ¼” or less to be considered a shredable candidate; 2) items such as metal bars, which have no chance in hell of actually shredding, may be foregone for sake of future shred attempts (and my new job).

GBC ShredMaster 1236s - attached to illustrate age of machine and provide my engineer readers with a schematic that will aid in the fix of the machine once it breaks.

I will post a before and after picture. Stay tuned.

Financial INTERdependence

"Financial Independence" seems to be an ever-increasing goal of the masses. I can only assume that this popularity is due to how it's perceived: 1) seen coupled with lavish lifestyles; and 2) seen as not having to work yet being able to make enough money to survive (i.e. living off of interest). There are a few flaws with this perception that are being overlooked:

- The expenses that come with (news-worthy) lavish lifestyles equate to the earnings on investments equal to the GDP of small countries. This is far from the norm; don't believe the hype.

- The only way you can truly not work yet earn money is to invest in something that does not require maintenance and that guarantees consistent, positive cash flows (otherwise, higher rate investments require quite a bit of work). This equates to a low-risk debt security, such as T-Bills and CDs (1.5% - 3.0%). Translation: one would have to invest between $1.7M and $3.3M to offset average annual expenses.

The only ways to increase interest income are to: 1) increase the volume of money invested and/or 2) earn a higher yield. For example:

1. To double annual income ($50k to $100k) assuming the same T-Bill and CD return range, one would need to invest twice as much ($3.3M to $6.7M).
   
2. To double annual income assuming the same principal investment (between $1.7M and $3.3M), one would need to earn twice the rate of return (6% - 12%). This level of return would require investment in more risky equity securities, like stocks. Thus, enters maintenance (aka work).
   

It is possible to passively earn enough money to support any lifestyle choice as long as you have enough principal.* It's also possible to earn the same amount with a smaller principal through higher yields. However, higher yields mean more risk which means the need to actively manage* your portfolio (analyze security trends; identify mis-pricings; etc). This also leads to inconsistent returns - years of high returns adjacent to years with negative returns.

*Unless you win the lottery, inherit a ton of money, find a coke dealer's backpack, put in 20 years as an iBanker or are nearing retirement, none of this is worth considering at this age.

*"Actively manage" = having to work



New definitions should be:

Financial Independence - free from the need of finances (ex: living off the land)

Financial Interdependence - financial gain from mutual reliance (ex: a job; investments; currently defined as "financial independence")