Fiber v. Copper

Fiber v. Copper: 

How will our networks support our data

   
     Think of our global data network just like our water infrastructure. There are places where we store our data just like we store our water at reservoirs. The water coming directly out of the reservoirs is transported in huge pipes because it needs to supply an increasing population just as data does. From the huge pipes it goes into smaller pipes located in the cities and eventually into the small plumbing in the houses and businesses that supply water to the end users just like data does. The only difference is that the end user data usage is changing quickly to ever increasing levels. This means that the current infrastructure at the end user level won't be able to support massive amounts of data that we want and need.
   
     Fiber optic network cables have been around for a very long time. It was first developed in 1970 by Corning Glass Works a precursor to Corning Inc. the famous Gorilla Glass producer. But it was not widely used until about 1990 and is now the backbone of data transfer over the world just like those huge pipes that transfer our water.
     Copper cabling is not going anywhere, it will be here for the foreseeable future because it is the only way to transport electricity. But for networking purposes we are going to need something that will be able to handle massive amounts of data to the end user.

     Copper Cabling can hold up to 10 gigabit ethernet (at short distances) but that won't cut it in the future for data transfer because of one thing, the attenuation or loss of strength that occurs during transmission of data. Copper can support ever increasing amounts of data but when that occurs you shorten the distance that you can transport that signal strength. This requires highly engineered cables that may be to expensive for the customer and need to be upgraded in the future to hold larger data demands.
     Fiber however can transmit massive quantities of data, over longer distances, with lighter & thinner cables. This allows for use of existing framework of networking like the cabling ducts in building and pipelines underground. The only negative to fiber is that some networks may need to be completely overhauled.

Copper vs. Fiber Networking

     There are some very attractive long term savings for switching to fiber networks. The number one advantage is the overall longevity of the fiber network. The fiber network will be able to hold data loads well into the future because of it's immense capacity. Data requirements will catch up to copper networks much faster meaning an overhaul would be needed sooner. Fiber networks are also more durable than copper ones and will require less replacement of cables.
     Fiber networks require much less energy to operate. Copper networks require electricity to transmit and cool networks because of the heat created by the electricity flowing through the network. Because signals are transmitted with light on fiber networks they require much less electricity to transmit and almost none to cool. This also means there will be very little risk of a fiber network being a fire hazard for your building. Overall reduction of electrical usage will make your building much more environmentally friendly and less costly to operate.

Advantages of Fiber

     Copper networks need to be engineered carefully because of the electro magnetic interference they create. This interference can ruin the signals of other surrounding wires and can also be monitored by outside sources that you may not want monitoring your network. Fiber optic cables on the other hand do  not emit electro magnetic fields because there is no electricity flowing through them. This means there is no interference with other cables and the only way to monitor the data would be to physically
tap into the connection making it's physical security very easy to control.

     The advantages of fiber networks will materialize when the Internet of Things comes to full fruition. The amount of data being transferred when everything is connected will be chocked by copper networks inability to handle it's demands. Company's that switch their networks to fiber will not only be saving money in the long run do to less maintenance, upgrades, and electrical usage but can reap the benefits of having a business connected to the Internet of Things.
   


     

     

Five Basic Financial Tips

The Top Five: 

A Few Basics For Everyone

     In order of importance here are the things you need to focus on to insure you can secure your own future: 

1. Get an education 
2. Pay off your debt quickly
3. Get insurance 
4. Save for emergencies
5. Invest your money as soon as possible

     

     Getting an education is one of the single most important things anyone can do in their life to secure their future. It is as easy as looking at this graph I found in the "College Pays 2013" 

When you acheive a higher education you are more likely to earn more money. The median income of a person with a Bachelor's Degree is more than 60% over that of a person that only received a high school diploma. This graph doesn't show you that you are also more likely to have health insurance, pension plans, lead healthier active lifestyles, and yes are more likely to have a job. 

     But college costs way too much, can't I just get a decent job right out of high school and earn money while college kids are studying? Yes you could but as the study says the average college graduate will earn enough by age 36 to compensate for the four years they were out of the workforce and the expenses of tuition & fees. To top it off the gap between high school diploma and bachelor's degree earners widens with age giving more of a long term incentive to obtain a higher education. 

     Paying off your debt comes in at a close second in the realm of intelligent financial decisions. First, avoid debt at all costs! I can't stress this enough because debt comes with interest and that means you are actually paying more for the money you borrowed. For example, you buy a house worth $200,000 at a 3.7% interest rate with a 30  year term. If you pay off your house in that 30 year period and pay your exact amount monthly of $920.57 you will have paid $331,405.20 for that original $200,000. I am not saying you shouldn't take out mortgages, credit cards, or student loans. What I am saying is you should pay for the things you want in cash if you can, if not then Pay off your debt as quickly as possible!
     This brings me into the second part of this debt portion. Focus all of your financial ability on paying off your loan as soon as possible without neglecting other necessary things. The sooner you pay off loans the less money you are losing. Take a look at that loan again from the last paragraph, same principal (original money borrowed),  same interest rate, same term, same minimum payments. But you decide to pay more than the minimum by $300, which is called pre-paying a loan. If for the rest of the life of the loan you pay $1,220.57 you will save $52,425.12 and pay the loan off almost 11 years early. While this is a bit of an extreme case it applies to all types of debt and in special cases like credit cards you can get away with 0% if you pay off your monthly balance.

     The worst part of insurance is that it is usually quite expensive and you don't get much out of it, a part from housing and loans it will probably be your third largest expense overall (vehicle, property, health, etc.). One common example is insuring a vehicle. In 2015 it cost on average $1,403 to insure one of the most popular vehicles, the F-150. That coverage gave you $100,000 single injury, $300,000 multiple injury, and $50,000 property damage.But some may decide insurance is too expensive and you would rather save the money. If you don't get pulled over or get in any accidents you will save money. If you get pulled over you face a list of legal actions possibly including losing your licence (could lead to losing your job), registration, traffic tickets, and other fines. If you get in an accident you may possibly become liable for injuries and property damage that occurred in the accident. Check out these statistics from Rocky Mountain Insurance Information Association:

"In 2013, the average auto liability claim for property damage was $3,231; the average auto liability claim for bodily injury was $15,443. In 2013, the average collision claim was $3,144; the average comprehensive claim was $1,621"

     While the average amount of coverage people buy may seem outrageous it isn't when you realize what might happen in a serious accident that was caused by you. If you cause a crash in which a vehicle was totaled, say that vehicle was a 2015 Ford F-150 it would cost you almost $35,000 if you weren't insured to buy them a new vehicle. If that person was seriously injured say a fracture in their lower body you would be liable from almost $6,000 (single) to almost $40,000 (multiple fractures). If you don't have cash to cover that they will come after your assets like cars, house, or any valuables.
     This information is just for one car in one accident! What if you are the sole cause for multiple cars being totaled? That would equal your finances being totaled, that is if you were uninsured. Bottom line, get insured, and not just automotive, purchase health, dental, vision, property, etc. as well.

     You can usually buy insurance for just about anything, but sometimes it just isn't cost effective to do so. That is why you save for emergencies. Think of it as paying yourself for an insurance policy. These emergencies include things like home repairs not caused by natural disasters (average of 1-4% of homes value per year), vehicle repairs not caused by accidents (average of almost $400), and the loss of a job to cover monthly expenses while job searching. The average emergency savings you should have on hand at one time is 3-6 months of your current monthly income.

Average Vehicle Repair Cost

     The last thing I would like to talk about is investing your money. This is a pretty scary decision for most since there is risk involved in it, the risk of losing your money that you invested. This is especially so for young people that have entered the work force and don't understand the concept of saving for retirement. For those that don't really understand it simply look at the following example. This graph will

show how much money can be amassed  if you start contributing the maximum of $5,500 (about $458 montly) to an individual retirement account at the age of 22 and didn't take it out until the age of 65.

I would like to point out that the average mutual fund will return about 8-12% annually. This will give you according to the graph anywhere from $1.8 million to well over $3.2 million. This however is very dependent on the stock market and the risk you are willing to accept in your investment portfolio.
     The next question would be, will that money last me through my retirement? This is very dependent upon your lifestyle, however either of those numbers should be more than enough to live comfortably baring financial disaster. Here is why, when you finally hit your retirement your investment portfolio will be converted into something that is much more risk averse and easily liquidated for income purposes. These types of portfolios only give returns of about 3-5%. While this return rate is low it serves the purpose of not having to withdraw any money from the principal (money you started with at retirement) and living off of the interest you will receive. To get a better picture of how your $1.8-$+3.2 million will serve you in retirement take a look at this next graph. Note that this graph is based off of retiring with 30 years left to live in life at an annual rate of return of 3%. The bottom axis will tell you what your monthly income would be based off of the the amount of money you have saved at retirement.

     Right off the bat you might notice that our minimum return ($1.8 million) that we had figured would bring us a monthly income of $8000 ($96000 annual) in retirement. Our top range of $3.2 million which isn't even on our retirement graph would last us 32 years at a monthly income of $13000 ($156000 annual). While these incomes are all fine and dandy I would not recommend drawing the maximum that you can while being able to live 30 years on the money. This will give you a buffer for financial disasters and if all goes well give your children a nice inheritance.

     It all starts with an education, paying off that education as quickly as possible, purchasing insurance for the things you buy in life, saving for the uninsured things, and investing in your retirement. Balancing the top five is difficult at times and they are not the only things in life that will matter financially, however if you follow them to the best of your abilities you should end up in a secure position once you would like to retire.