A minute
with Mauti
By LISA MAUTI
Columnist
LMM3SS@PSU.EDU
I came across an article a few
weeks ago in my Women’s Studies
class that really perplexed me. It had
to do with American protestors and
the War in Iraq. The author was at an
international conference for women,
when a foreign woman questioned
her about why women in the US,
or for that matter, men, weren’t
protesting the War in Iraq. They
remembered the 60’s where college
students protested the Vietnam War
and mothers marched to fight for
their sons.
It got me to thinking and I want
to know why we aren’t protesting?
Why aren’t people speaking out as
boldly as in the 60’s? Last week’s
election v\@s a subtle way of
speaking out which clearly upset the
President. Now reforms are being
made and the war is being evaluated,
but I still want to know why it took
so long.
I started looking for answers and I
found myself right in the middle of j
my major. Media. Yup. That’s what’s
different between now and then.
When the Vietnam War was taking
place, media was just on the rise and
it was the first time that US citizens
could see what was happening to
their boys overseas.in » graphic. ,
manor. There wasn’t censoring like j
there is today. If people were dying, i
the US knew about it. If people were
being treated inhumanely, it was
shown on TV or in the newspaper.
So, that incited college students and
mothers to go out and rally for their
boys. They fought the government
tooth and nail, and some protesters
were actually killed because they
fought so hard. We all know about
Kent State. But in today’s society, j
you don’t see it. As John Mayer so |
nicely puts it, “And when you trust 1
your television. What you get is what i
you got. Cause when they own the j
information, oh they can bend it all \
they want.” That’s just it. Being a ;
communications major, I now see !
it more clearly than ever. You can’t
watch the news to find out truth. ;
You have to seek it out for yourself, j
Someone owns every medium. And
that someone has political interests ;
for which they must protect.
Therefore, you do see what they
want you to see. We don’t see all
the innocent people that sacrifice
their lives in the name of war. We
see pictures of our soldiers in good
light, never in bad. So why would
we want to protest? People might
even be afraid of our government if
they would protest. Would they be •
sentenced to an island somewhere
in the ocean if they tried to create
unrest about the war? I know that’s
a little exaggerated, but do you see
where I’m trying to go with this?
Or is the reason that people aren’t
out protesting in today’s society is
that we are too caught up in our own
lives to see what is really going on?
We’ve become so accustomed to
having everything handed to us.
We drive through, pick up, order
online, and have liposuction. But
yet, if one thing goes wrong with a
gadget in this high tech society, you
can bet that someone is going to hear
about it. I am guilty of this too. But
when you actually sit and think about
what is going on over in the Middle
East, and how other countries are
thinking of us right now, it is a really
stark picture. Sometimes the truth
can be hard to swallow, but when it
impacts your life on a personal level,
it really makes you wake the hell up
and see what is going on around you.
“Weapons of Mass Destruction,”
were more like “Weapons of
Mass Deception.”
Start investing in your future
By CHRISTOPHER CVUIC
Staff Reporter
CXC374@PSU.EDU
In our last issue, I discussed the
importance of not only saving for
retirement, but saving for it at an
early age. Many people do not save
for retirement because they are
intimidated by all the investment
choices they are faced with. With
this article, I hope to give you some
basic investment advice that will
help you set up your 40 l(k).
To help alleviate some of the stress
you may experience about choosing
between different mutual funds, I
have some good news; your skill
at choosing between mutual funds
that invest in similar assets has very
little affect on the performance of
your portfolio.
In fact, the impact of security
selection on your overall
performance is only
about five percent.
By far, the most
important factor
in determining
your portfolio’s
performance is the
asset allocation you
choose. This single
factor accounts for
more than 90 percent
of your performance.
Therefore, the best
place to start our
discussion is with
asset allocation.
Asset allocation is
the distribution of
investment funds
among broad classes
of assets. In its
simplest form, asset allocation
comes down to how much of your
money is in stocks and how much is
in bonds. Most experts recommend
taking the number 120 and
subtracting your age from it.
The number you come up with is
the percentage of your portfolio that
should be invested in stocks. For
example, if you are 25 years old,
you should invest 95 percent of your
money in stocks (120 - 25 = 95).
As you get older, your exposure to
stocks should go down, while your
exposure to bonds should go up.
The reasoning behind this is that
stocks significantly outperform
bonds over the long term. When
you are younger, it is important
to maximize returns to offset the
effects of inflation. Stocks are more
risky than bonds though. As you get
closer to retirement, it is important
to reduce risk and preserve your
wealth. I am now going to discuss
some specifics about stocks and
Don't be afra
By ZACK POCCOLO
Staff Reporter
ZJPSOO6@PSU.EDU
Dear Zack,
My boyfriend of two years recently
broke up with me because of his
busy sports life. I’ve always
been really supportive of his
extracurricular activities, and I
thought we were balancing things
in our relationship just fine. My
friends have been telling me how
selfish his reasoning is, and that I
should consider it his loss. But I
really love him and would like it if
we could work things out. / 've tried
talking to him about it, and he says
he loves me, too, but things are just
too busy for him right now. Is it a
hopeless case or is there some way I
can convince him to give it another
try? - Lost
Dear Lost,
There is definitely a lot of hope
here. Remember we are dealing with
love! I do not know if you listen
to country music or not, but there
is a song that has a verse that says
“love can walk through fire without
blinking.” I am a firm believer in
that! Sports are something that
your boyfriend cares a lot about
bonds to help maximize
your returns.
A bond is a debt instrument used
by governments and corporations to
fund ongoing operations. In plainer
terms, they are an lOU from one
entity to another. There are two
important considerations for us to
consider: maturity
and credit quality.
Maturity is the length of time until
the bond has to be repaid. There
are three types of maturity: short,
medium, and long. The longer the
maturity, the higher the expected
risk and return. Credit quality is
the likelihood that a corporation
or government will repay their
debt. There are three main types of
credit quality: U.S. government,
investment grade, and below
investment grade. Just like with
maturity, there is a risk/retum trade
off. U.S. government bonds are
Here Is What I See That Can Make You Rich
$4 Profit
Stock A
Photo courtesy of Google Images
Stocks can be a valuable asset to financial planning for the future. Bonds are also
recommended for a retirement portfolio.
considered to be risk-free since it is
assumed the U.S) government will
always pay its debts. However, they
generally have the lowest returns.
Meanwhile, below investment, grade
bonds, or commonly referred to as
junk bonds, have the highest amount
of risk, but also the highest
expected returns.
It is important to have bonds
from each one of these different
subclasses. This may seem difficult
but fortunately there is a single
fund that can provide you with
this. Many mutual fund companies,
including Vanguard and Fidelity,
offer a mutual fund called a total
bond market index fund.
If your 401 (k) offers you this
selection, it is probably the easiest
thing to choose. Otherwise, it’s my
recommendation to overweight
bonds with short and medium
maturities and U.S. government
and investment grade bonds. No
more than 10 percent of your
and your continued support is the
best way to go. My gut feeling is
that there may be more to that story
then what he is telling you. When
things get serious a lot of guys
start to get nervous and back away
and they tend to use those “I am to
busy right now” excuses. I would
recommend giving him some room
with his busy schedule but stay in
reaching distance. When things start
to die down a little, then talk to him
some more and let him know again
how much you care about him and
want to see things work out. He has
already said he loves you, which is
a huge step, and if he truly feels that
way he will not let you go. There is
no reason he can not continue with
the relationship and play sports.
Keep the communication lines open
and make sure you do not drift
apart. Do not forget, true love comes
but once in a lifetime and it is worth
the wait! Good luck and let me
know how things go!
Dear Zack,
I am a second-year English major
with plans to become a teacher at
the high school level. However, over
the past summer, l completely fell
in love with an old hobby of mine:
$4 Profit
$3 Profil
id to ask Zack
money invested in bonds should be
invested in below investment grade
bonds. Likewise, no more than 15
percent of your money invested in
bonds should be in long term bonds.
Mutual funds have something called
a “style box” that will easily help
you discover the investment style of
the fund.
Stocks represent ownership of a
corporation. Like bonds, stocks
have nine different subcategories.
They are broken up by the size
of the companies the fund holds:
small, mid, and large cap and the
investment style: value, blend,
and growth.
Larger companies are generally
the least risky but also have the
lowest expected returns. Small
companies have the most risk and
the highest expected returns. Value
companies are generally more
mature companies that are growing
Stock A =
$3 Total
Profit
Stock B =
$l4 Total
Profit
at a slower rate. They also typically
pay a dividend. Growth companies
are younger companies that are still
expanding rapidly. Mutual funds
that use a “blend” investment style
have the opportunity to invest in
both value and growth companies.
Value companies are less risky
than growth companies and recent
research shows they also outperform
growth companies long term.
Therefore, I recommend having
overweight value companies within
your portfolio.
Just like with bonds, companies
like Vanguard and Fidelity offer
total stock market index funds that
will expose you to all 9 subclasses.
If your 401(k) doesn’t offer you
total stock market index fund,
I recommend the following: be
overweight value funds and while
you are young be overweight
small and mid size companies.
Another important addition to any
retirement portfolio is international
photography. I am considering
switching my major possibly
schools to follow that path. Problem
is, when I told my parents, they
totally freaked! They are afraid
that photography/journalism is
too difficult a field to break into
as a career and basically feel that
teaching would be a more secure
future. It does not help that my
grades this year have really starting
slipping, as I am losing interest in
my English major. Should I follow
my heart and follow photography/
journalism or do what my head tells
me and stay where I am ? - Sitting
on the Fence
Dear Sitting on the Fence,
The difference between your heart
and your head is you heart thinks
with emotion and your head thinks
with facts/logic. Most of the time I
would say a healthy balance is the
best way to go. Too much of one
or the other is not going to help.
However, in this case your heart, I
think may have total jurisdiction to
make the choice. The fact is, your
parents are worried and expressing
that to you, but at the same time
you need to remember, it is you
that will have to live with the
choice and not them. However, two
stocks. These are companies that
are located outside the United
States. They have the same nine
subcategories as U.S. stocks. It is
important to have some exposure
to international stocks to reduce
portfolio risk and
increase returns.
This is a lot of information for
non-finance majors to absorb.
Financial companies have identified
this problem and are starting to
offer products to ease the anxiety
of choosing individual asset mixes.
Many mutual fund companies, like
Vanguard and Fidelity, have begun
offering target retirement funds.
These funds have a date attached to
them, like 2045, and are designed
to offer individuals a single product
that offers an appropriate asset mix
for their age.
All you have to do is choose the
target retirement fund whose date is
closest to your expected retirement
date. Many 401(k) plans now
include target retirement funds.
If your plan doesn’t include a
target retirement fund, I recommend
the following asset allocation for
individuals under age 35: 15 percent
bonds with a preference towards
high credit, shorter maturity bonds,
25 percent large cap value, 15
percent large cap growth, 20 percent
mid cap stocks, 10 percent small
cap stocks, and 15 percent
international stocks.
This mix should only be used as a
guide. It is important to understand
how much risk you can tolerate.
If you are someone who cannot
tolerate big short-term losses,
increase your exposure to bonds by
10 or 15 percent.
Some plans may offer two funds
with the same investment style. For
example, they may allow you to
invest in 2 different large cap value
funds. When comparing mutual
funds with similar investment styles,
I recommend favoring mutual funds
with lower expense ratios instead of
focusing on past returns.
If you have an interest in learning
more about retirement planning
and asset allocation, I highly
recommend CNNMoney.com’s
Money 101 section (http://money.
cnn.com/pf/101 /index.html). This'
site has 23 different tutorials that
include: budgeting, retirement
planning, 401(k)s, asset allocation,
buying a home, buying a car, buying
insurance, and saving for a child’s
college education.
The site is useful for clarifying
and expanding on the concepts I
have introduced today. If you have
any questions or comments, don’t
hesitate to contact me via email.
questions I would also ponder are
who is paying for your schooling?
And if photography does have a
slow start, will you need financial
support from your parents? In any
case, Time is precious; don’t waste
it on something that you know your
heart is not in because if you do you
will end up miserable. Follow your
dreams, because without them, what
is life worth anyway? If you decide
to go with your heart, you will need
to, at some point, break the news
to your parents. They will mostly
likely be upset at first but given time
(some may need more than others)
they will be ok. After all, they do
love you and want you to be happy;
they are just protecting you. They
mean well but need to realize, as
do you, that the road to success and
your dreams is not a straight shot.
You are going to hit pebbles, rocks
and boulders along the way and
those things will help shape who
you will become. Do not be afraid
to take a risk and get hurt. There is
a reason why our friends and family
come on the journey with us; to
celebrate in our successes and bring
the bulldozers when things get in the
way! Good luck and let me know
how things go!
President's
Corner
By ARIEL O'MALLEY
SGA President
AEOSOO2@PSU.EDU
While walking into school one
day last week I heard a group of
people behind me complaining
nonstop about issues within their
lives and this campus.
This caused me to feel very
frustrated and annoyed with the
attitudes shown by various people
on this campus. Has anyone taken
the time to stop and realize that the
reason we do not have class
during the fourth week in
November is because of the
Thanksgiving holiday and not
because Penn State decided to be
super nice and give us a random
three days off?
. Seeing as the holiday season is
approaching I feel as if it is time
for everyone to take a step back
and realize how many good things
we have in our lives.
As students here at Penn State
we all have an amazing amount of
opportunities available to us such
as being able to travel anywhere in
the United States and find a Penn
State alum.
Or how about the fact that we
all have a chance to participate
in THON, the largest student run
philanthropy project in the entire
world, and help children with
cancer. Not to mention the pure
name recognition and pride of
being a Penn State student.
Not to mention that as students
here at Penn State Harrisburg we
have the opportunity to
make things happen on this
campus. We have the ability to
apply for funding to plan all sorts
of events and activities on campus.
How about instead of whining that
we have to walk around 200 yards
(if you get a bad parking spot) from
the car to the main building, we act
grateful because some of us have
cars, the ability to drive them, and
the ability to walk into the building.
Or just the simple fact that you
only need to walk a few hundred
yards to get to your classes as
opposed to multiple blocks.
Be thankful that each and every
day we each wake up with the
opportunity to make a difference.
You have the chance to make a
difference in your own life as well
as the lives of those around you.
You have the opportunity to make
a difference on this campus as
well as everywhere that you go
throughout the day.
Granted the level of difference
is all dependent on how you
approach each and every day.
If you approach the day w ith a
sense of negativity, it is highly
unlikely that you will make a large
impact. And I’m not saying that we
should all wake up cheery
and peppy, but simply that we
should approach the day with a
positive attitude.
As the holiday season approaches
I hope you will all take the time
to think about all of things in your
lives that you should be thankful
for and be grateful for all of the
wonderful people in your life
because you never know what the
next day will bring.
As Oprah Winfrey once said,
“Be thankful for what you have;
you’ll end up having more. If you
concentrate on what you don’t
have, you will never, ever
have enough.’’