5 Steps to Better Problem Solving

problem-solving1Modern humans are the greatest problem solvers the world has ever seen. While our predecessors developed primitive tools to better live in their environments, humans are the first to develop the mental acuity necessary to transform their living space. As a consequence, we thrive around the world, altering hostile, barren desert lands and freezing climates into hospitable habitats with growing populations.
 
Of course, problem-solving abilities vary considerably from one individual to another – some of us excel in resolving overarching dilemmas, while others are more adept at making basic day-to-day decisions. Researchers at the Center for Research on Learning and Teaching at the University of Michigan believe that difficulty solving problems tends to stem from the following two issues:

Inaccuracy in Reading

Incorrect interpretation of a problem can stem from perceiving it without concentrating on its meaning. It can also result from reading unfamiliar words, overlooking important facts, and starting to address it prematurely. Simply stated, many people have difficulty framing a problem accurately at first and consequently develop inadequate or incorrect solutions.

Inaccuracy in Thinking

Ancients Greeks called the ability to properly reason “logic.” Today, we sometimes refer to this ability as “pragmatism”—a system of thinking to determine meaning, truth, or value. Poor decisions result from a lack of clarity so that irrelevant information is considered in the problem-solving process. We sometimes pursue solutions that do not meet our intended goals, or we fail to break complex problems into understandable parts when time constraints force us into premature decisions.
 
Each of us makes decisions every day that affect our happiness, careers, and satisfaction with life. By learning and practicing the skills of proven problem solvers—and following the necessary steps— you can boost your self-esteem, reduce interpersonal conflicts, and lessen overall stress.
 
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The Rise of the Robot Investment Advisers

online investingIn the past five years, a new type of financial advisor has emerged to compete with traditional investment advisory firms. Funded by venture capitalists, these new advisors exploit the latest technology to offer competent investment advice in exchange for drastically reduced fees.
 
Just as technology changed the full-service brokerage industry by lowering transaction costs and enabling online trading, it will also ultimately change the practice of investment advisors by automating portfolio management and investment advice. According to Grant Easterbrook, analyst at Corporate Insight, “These newcomers offer average Americans access to low-cost advice and investment solutions with fewer potential conflicts of interest and greater performance transparency.”

The Rise of the Virtual Advisors

Automated online portfolio management services – what many have dubbed “robo-advisors” or virtual advisors – have been available for the past decade. They offer convenient, transparent portfolio management for accounts both large and small through easy-to-use websites – and all for 20% to 30% of the cost of traditional advisory firms. According to Institutional Investor, Corporate Insights estimates that this group currently manages almost $17 billion in U.S. assets.
 
Robo-advisors generally share a common philosophy of money management:

Passive Investment Strategy

Based on the concepts of Nobel Prize-winning economists Eugene Fama (Efficient Market Hypothesis) and Harry Markowitz (Modern Portfolio Theory), robo-advisors do not attempt to “time the market” by projecting its direction up or down. Nor do they try to pick “winners” and “losers” of individual stocks. They invest in broad sectors of securities or market indexes—exchange-traded funds (ETFs)—to diversify risk and secure average stock market returns.

Algorithm-Based Advice

Robo-advisors rely on proprietary software to automatically create and maintain portfolios of index funds. These portfolios are designed to fit broad client investment goals, and are tailored to factors such as age, risk tolerance, expected retirement date, and so on. For example, the criteria to select a specific portfolio might be based upon a goal, such as retirement, to be achieved by a certain future date, with the ratio of equity to debt securities based solely on the time-frame between the investor’s current age and retirement age.

Extended Investment Term

According to Betterment, an analysis of the Standard & Poor’s 500 Stock Index between 1928 and 2014 indicates that the longer people stay invested, the less loss they risk and the greater their possibility of gain. For example, about a quarter of all one-year investment periods between 1928 and 2014 experienced losses in value, while less than a tenth of the 10-year investment periods resulted in a loss. Similarly, the median cumulative return was substantially greater for 10-year holding periods than one-year periods. In other words, the longer you stay fully invested in a broadly diversified portfolio, the greater your chances of gains.
 
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The Future of Automobiles & Car Technology

photo by Steve LagrecaIn a single century, the introduction of the automobile has spurred massive changes in American culture, the communities in which we live, the environment, the economy, and personal independence. Every aspect of daily life has changed, from the places we live, to the food that we eat.
 
Automobiles, increasingly available to anyone, have blurred social class distinctions, expanded markets, and stimulated the economy. The industry directly employs more than 2.6 million people and, according to Auto Alliance, accounts for 3% to 3.5% of the nation’s gross domestic product (GDP).
 
The American love affair with cars is evident in the number owned. According to the Bureau of Transportation Statistics, there were more than 250 million registered vehicles in the United States in 2012, or one for every American over the age of 18. The average household owns 1.75 vehicles. Drivers traveled more than 2.8 billion miles over 4.5 million miles of roads and highways and 605,471 bridges in the nation that year.
 
Consumers can choose from a plethora of manufacturers of cars, all of which produce different makes, models, and body styles. The vehicles can then be further customized by color, engine type, transmission, interior design, and type of wheels. In addition, there are thousands of auto repair shops, high-performance mechanics, and body customizing shops ready to fulfill the dreams of any automobile owner.

The Negative Impact of Automobiles on Modern Life

For all of its contributions to modern life, the automobile has also wrought considerable negative consequences for individuals and society as a whole:

Expense

The purchase and ongoing operation of an automobile is one of the biggest expenditures that the typical person makes in a lifetime. Automobiles account for about one-sixth of a family’s budget, more than food or healthcare and insurance combined, according to the Bureau of Labor Statistics. The BLS reports that in 2010 the average passenger car in the U.S. was 11.4 years old and was driven 11,318 miles while burning $2,132 on gas and oil. Furthermore, drivers spent, on average, $787 for repairs and maintenance.

Deaths and Injuries

According to the United States Census Bureau, since 1990, more than 10 million accidents involving cars occur each year, causing more than 30,000 deaths per year. While the rate declines each year – reflecting improvements in design and new technology – the National Highway Traffic Safety Administration estimates that the cost of accidents in 2010 was $871 billion.

 
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How to Stop Cyber Bullying and Keep Your Kids Safe Online

online harrassmentWhile constitutionalists and libertarians can argue about the rights of free speech on the Internet, it’s an entirely different matter when you’re the victim of sustained harassment or threats of physical violence. According to a Pew Research poll, 73% of adult Internet users have seen someone harassed online, and 40% have been victims.
 
Another Pew poll states that one in ten adult Internet users (10% male, 6% female) have been physically threatened or continually harassed for a sustained period. Pew also reports that teens are more likely than adults to experience hostile or cruel behavior online with real-world consequences. More than one-quarter of adult Internet users (29%) report experiences that resulted in face-to-face arguments, physical fights, or got them in trouble at work, and more than half of teenage Internet users (52%) report similar consequences.
 
In early 2015, former Major League Baseball star and outspoken conservative blogger Curt Schilling responded to cyber threats against his 17-year-old daughter by tracking down and publicly identifying two young men who had tweeted obscene comments about her. As a consequence, one man, a graduate student working part-time as a ticket seller for the New York Yankees, was immediately fired. The second was suspended from college.
 
When told of the consequences faced by the tweeters, Schilling responded on his personal blog, 38 Pitches: “In the real world, you get held accountable for the things you say, and if you are not careful that can mean some different things.” However, as reported by Asbury Park Press, Rutgers-Newark law professor Bernard W. Bell said the offensive tweets in the Schilling case might not meet the legal standard for criminal prosecution, raising the question as to whether the line on free speech needs to be redrawn.
 
To the dismay of free speech advocates, many people are questioning whether the definition of the First Amendment has gone too far. Authors Nadia Kayyali and Danny O’Brien, writers for the conservative Electronic Frontier Foundation and avid advocates for free speech on the Internet, recognize that harassment “can be profoundly damaging to the free speech and privacy rights of the people targeted.” They promote better technology, improved police education, and a community response to stigmatize abusers.
 
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