PFInvesting.com is the new home for this blog. Initials “PF” stand for “Personal Finance”, which, along with the word “Investing”, sum up the blog’s content. The moving process went like a breeze, kudos to WordPress.

As you notice, there is a significant lull in my posting activity (I wrote the last one on October 29, 2007). This is only a temporary break, let me assure you, while I am sorting out other more immediate priorities in my life. I promise to get back here as soon as possible, so please keep checking back.

A recent Wall Street Journal report shows that the top 1% of the wealthiest people in America collared 21.2% of the entire nation’s income in 2005, a sharp rise from 19% the year before (also above the previous high of 20.8% in 2000). By contrast, the bottom 50% of the earners managed only 12.8% of all income, a drop from 13.4% in 2004 (and from 13% in 2000).

These estimates are based on the “adjusted gross income” from tax returns filed with IRS (thus excluding pre-tax contributions to retirement accounts, alimony payments etc). The data also show that the “median” income value - half earn below this income and half above - dropped 2% to $30,881 between 2000 and 2005, whereas the income level of the top 1% grew 3% to $364,657.

Such disparity is blamed on gaps in the skill level, which puts people with higher skills at an advantage because of the technological changes, and also increasing globalization and communication. Another related issue is that such technological advances trigger a stock market boom, which again favors a select group of people in high paying positions.

Philip Brewer in Wise Bread suggests that we carry some cash while on the road. My own principle is to have about $20 cash in my wallet, and one credit card (no debit card). Unless I am on a major trip out of town, when I take more cash with me (but still one credit and no debit card). The credit card I use gives 5% cash back on gas purchase, and I always pay balance in full.

I have another suggestion to make, from my own experience. That is to always have some money available in your local bank account. This can help you get hold of ready cash if needed on short notice, like in matter of hours, and there is no rich friend nearby to bail you out.

Until recently, I used to keep only a few hundred dollars in my local credit union account, just above the minimum required balance. With most online money market accounts offering over 5% APY, who needs the crappy 0.75% bank saving rate, right? I thought so too, and diligently sent the left-overs of my bi-weekly paychecks to my two MMAs (after expenses and automatic transfers to my IRAs).

Then came the day about three weeks ago, when I suddenly needed $1800 to pay for a major expense. The only payment option was either a cashier’s check or money order. I thought I could write myself a check of $1800 from my MMA, and use it in my bank to withdraw cash. Unfortunately, the bank policy is to hold the check for 48 hrs before releasing cash (should have seen it coming). Luckily I found a friend who did not make the mistake I did, and who could lend me the cash.

The take-home message is that it pays to mix prudence with greed (maybe I am being too harsh on myself, but this was a harsh lesson).

In a recent post, Stanley Bing of The Bing Blog compared job switching with the shelf life of a perishable good, such as the milk or cheese that we buy in a grocery store. When we move from an old job to a new one, it is like being repackaged with a future “sell by” date and returned to the aisle. This is an interesting comparison, with the only difference being our continued resale value (until we retire), unlike a food item.

To take this analogy (or the difference) a little further, we change jobs either to move up the career ladder, or because our old boss showed us the door. The second case is what the Bing post has talked about. In contrast, the first scenario is like being upgraded and priced higher before going back to aisle (I can’t think of a suitable example yet).

Or, maybe the time in between the “sell by” and “use by” dates is analogous to our entire work life. Before being sold in the job market, we develop our career and get priced accordingly. And after being used in the job market, we retire from public life.