Articles by mgedwards

Compromise isn't dead

I usually avoid talking about politics on this blog.  It’s hard to do because I am actually a political junky.  I have a love-hate relationship with politics.  I find it absolutely fascinating, but sometimes it drives me nuts.  I try not to make this blog overtly political, because World Adventurer’s focus has always been on cultural experiences and on whatever tickles my fancy on any given day.  I’m glad to have blog readers from all sorts of political persuasions.  I try not to impose my own political views.  Of course, I occasionally slip up and write something that gives away my own political views, but it’s usually unintentional. 

The news today from Capitol Hill is definitely worth writing about.  U.S. Senate Democrats and Republicans crafted a compromise agreement designed to avoid what is now called "the nuclear option" over President Bush’ judicial nominees.  Some Democrats have been threatening to filibuster over some of the president’s judicial nominees, and some Republicans have threatened to change Senate rules so that filibustering cannot be used to hold up votes confirming judicial nominees.  Republicans currently do not have enough votes to end filibusters (60 votes), but they have enough votes to change Senate rules to eliminate filibusters (55 votes).  The compromise agreement allows some judicial nominees to come up for a vote, while some nominees will still be subject to filibuster.  Filibuster rules will also remain unchanged.

Filibustering is a tactic used by the minority party (currently the Democrats) to prevent a vote over a contentious issue.  Because the majority party (the Republicans) can approve a resolution by a majority vote, the minority party infrequently use filibusters to prevent a resolution from coming to a vote.  As long as debate over an issue continues, a vote cannot be called.  Over the years, filibusters have been used by both Democrats and Republicans with mixed success.  It’s a battle of wills, and whichever party blinks first wins the battle.  Because filibusters often last for days, they sometimes lead to tragi-comic moments.  Who can forget (if you were alive in 1957) when Strom Thurmond spoke for an unprecedented 24 hours?  Or watching a Senator read from a phone book during a filibuster?  A filibuster is a tactic of last resort.  It has been used for noble and infamous ends (depending on your political persuasion).  Some civil rights legislation was held up by filibuster, as will some judicial nominees.  Filibustering is ultimately a political tactic; in and of it is neither good nor bad.

I am happy about this compromise agreement for two reasons.  One, the two parties came to an acceptable compromise.  7 Republicans and 7 Democrats put aside their political differences and compromised on a key issue.  "Compromise" is now a dirty word in political circles, but promoting bipartisanship is essential to a functioning democracy.  Both parties need to work together.  Neither side is completely happy with this compromise, but they agree that it is preferrable to resorting to escalation by voting for a "nuclear option."  Secondly, an important aspect of our democracy remains intact.  For better or for worse, filibustering is an important part of the U.S. political process.  The minority party needs to use it with discretion, and the majority party should not undermine it.  Republicans and Democrats alike need to remember that at some point in the future their status as minority or majority party will change, and they need to respond based on the principle of the "Golden Rule."  In the future, the Republicans will attempt to filibuster on some unforeseen issue, and the Democrats should not undermine this by changing the rules to prohibit filibusters.  Filibusters help keep our democracy vibrant and should remain intact, albeit used sparingly.

Making sense of 529 plans

If you have young children like I do, you might be wondering what you should do about your children’s college education.  My son is still years away from going to college, but because the cost of a college education has skyrocketed in the past decade, we already need to start thinking about saving for his college education.  We checked out a variety of investment plans for our son and any other future children we will have.  The choices are complicated.  There are many different investment vehicles to consider, and there are many plan to choose from when setting up a college fund for your child.  You can open a traditional IRA or Roth IRA for them, you could set up a Coverdell education savings account (ESA), or you could open a 529 savings account.  Most people choose to open a 529 account because it has some excellent tax benefits.  We chose a 529 plan because it offers the greatest flexibility of any option.  For one, the capital gains on after-tax money invested is tax-free if the money is spent on the beneficiary’s (i.e. your child’s) education.  Secondly, you can invest up to $230,000 in a 529 account for each beneficiary.  Unfortunately, there are also a couple of drawbacks to consider when thinking about opening a 529.  First, the money you have saved in a 529 account will count against you when your child applies for need-based financial aid.  FAFSA will count your 529 portfolio towards your net worth when it calculates how much financial assistance your child needs.  Second, there is currently a sunset clause on 529s, and they are scheduled to expire in 2010.  Fortunately, the current session of Congress is debating whether to eliminate the sunset provision and will likely eliminate it in the near future. 

Choosing a college savings plan for your child is also complicated by the fact that there are many 529 plans available nationwide.  Each state has one or more 529 plans to choose from.  Unfortunately, not all plans are created equal.  It’s not enough to simply choose the 529 plan offered by your home state.  We used SavingforCollege.com to research the various 529 plans.  We were disappointed to find that our home state of Washington offers a mediocre 529 plan (high fees and low returns).  Alaska and New York currently offer the best plans as measured by minimum investment requirement, investment manager, portfolio options, management fees, account maintenance fees, residency requirements, and tuition benefits.  We chose the New York State 529 plan for our child because it offers maintenance fee free accounts with minimal required investment.  Its fees are a bit higher than Alaska’s, but it offers far more investment choices.  We also do not have to be New York state residents, and our son is not obliged to go to college in New York State when he heads to college.  Vanguard, a reputable investment firm, manages New York’s 529 plan.  If you are thinking about starting a college fund for your child, consider opening a 529 account with a state such as New York that provides maximum flexibility.

Dinner with an old friend

This weekend passed by much too quickly.  Why do weekdays pass by so slowly, yet the weekend whizzes by before you know it?  It’s a rhetorical question, of course.  Time really does fly when you’re having fun.  It’s a statement that’s more than a cliché.  Perhaps I need to enjoy my work more so it too will pass by quickly.  Of course I already enjoy what I do for a living immensely.  I think I have the best job in the world.  Still, working is never as much fun as having time off.  On Saturday morning I went into work for a few hours.  Much as I like my job, I can think of many other activities I would rather do outside the office—especially on a Saturday.  For example, I’d much rather meet up with old friends.

 

On Saturday evening, I had dinner with an old friend I never thought I would see again.  He is a Korean executive I tutored in English a couple years ago while I was pursuing my MBA at the University of Washington.  I tutored him for almost half a year in Seattle.  He was the first Korean to introduce me to Korean food, and for that I am very grateful.  We spent a lot of time doing numerous activities in the Seattle to help him improve his English.  We did a few of the things you must do when visiting Seattle, such as hiking and drinking coffee at Starbucks while watching the rain pour.  He told me many stories about Korea.  At the time, I had no idea I would end up living here and filed them in the back of my mind.  I still remember many of his stories and suggestions.  He returned to Korea in 2003.  When I arrived in Seoul, I E-mailed him to let him know I now live here.  His E-mail returned to me undeliverable, and I thought I would never locate him.  My wife, who still speaks Korean better than I, called him a couple weeks ago, and we finally reconnected.  He was pleasantly surprised to find out I was here and that I will be here for a couple of years.  He told me that he no longer works at his old company and now has a much better job with a smaller company.  Unfortunately, it’s located in Busan, and every week he has to commute back and forth between Seoul and Busan (about three hours by high-speed train).  He doesn’t want to relocate his family to Busan because his children are at a critical age when living in Seoul is important to getting into some of the best universities in Korea (most elite Korean universities are in greater Seoul).  It’s tough on his family, but he says it’s worth the sacrifice.  Knowing what I know about Korean culture now, I believe him.

 

We reunited on Saturday night for dinner.  I met his wife and children for the first time, and they met my wife and son for the first time.  We spoke both Korean and English.  My friend speaks excellent English, but his family does not speak it well.  My wife and I speak some Korean, and we tried to talk in Korean as much as we could.  Fortunately, my friend was a good sport and served as translator.  His family really enjoyed seeing our life here in Seoul in an American enclave.  They were also surprised to see some of the amenities we enjoy, especially our yard.  In a place where land is at a premium, having a lawn is a big luxury. 

 

I’m glad we were able to meet again.  We’ve decided to get together soon and will probably go over to his house for dinner.  In my relentless pursuit to meet and get to know Koreans, I’m glad I already have some good Korean friends in Seoul.  It is a challenge to befriend Koreans, and culture always seems to get in the way.  This is a good start.