1 Dec 2008

Investment at a glance...

Last time a good friend of mine called up asking where to invest as she is getting some amount in December and haven't invested to save tax so far. The first thing that came to my mind was PPF account , keeping in mind the long term return she was looking for. I was excited to pitter patter out plans after plans, unable to hold my excitement and test my knowledge.
Some of them which i suggested in a quick haste are

1) PPF
This is perhaps the only investment where tax is not attracted even on the interest amount and hence totally Tax free. While one can have different views like short term investments, PPF is considered as a long term investment, particularly after your retirement

2) Life Insurance
One must is a Life insurance,be it at LIC or some other agencies. Whereas others are treated as investments, Life insurance is an Insurance and not an investment. One has to understand the difference between INSURANCE and INVESTMENT.

3) ULIP Linked Mutual funds
Currently market is down and if someone is looking for a long term investment, then ULIP linked Mutual funds are good investments. You will probably end up with more then 34% interest after 10-15 years time. But one should make sure to invest only the excess amount he has and not the earnings.

Rest are small investment plans that might come to mind...
Well i hope i was right in my decsions that was made in a matter of 5 minutes of trunk call.

Investment at a glance...

Last time a good friend of mine called up asking where to invest as she is getting some amount in December and haven't invested to save tax so far. The first thing that came to my mind was PPF account , keeping in mind the long term return she was looking for. I was excited to pitter patter out plans after plans, unable to hold my excitement and test my knowledge.
Some of them which i suggested in a quick haste are

1) PPF
This is perhaps the only investment where tax is not attracted even on the interest amount and hence totally Tax free. While one can have different views like short term investments, PPF is considered as a long term investment, particularly after your retirement

2) Life Insurance
One must is a Life insurance,be it at LIC or some other agencies. Whereas others are treated as investments, Life insurance is an Insurance and not an investment. One has to understand the difference between INSURANCE and INVESTMENT.

3) ULIP Linked Mutual funds
Currently market is down and if someone is looking for a long term investment, then ULIP linked Mutual funds are good investments. You will probably end up with more then 34% interest after 10-15 years time. But one should make sure to invest only the excess amount he has and not the earnings.

Rest are small investment plans that might come to mind...
Well i hope i was right in my decsions that was made in a matter of 5 minutes of trunk call.

30 Nov 2008

Nothing much to write..

I think i am running out of words at the moment. If you are wondering why i am writing this post, then let me tell you that there are times when you want to yell out, speak out.. with no reason or without any direction. Sometimes i remember those whimsical moments spent in younger days, which when set upon mind to do a thing or get a thing - i set my foot forward to get it without knowing the consequences.

Today looking at those memories... some sweet, some frightening, some funny and some emotional... makes me feel complete as what i am. There can be two things then - i am too busy with my life or i am being whimsical again! There were many times when i feel like writing and yet did not find the resource .. internet, time, mood etc and yet there are times when the resources are abundant but not in mood to write...or run out of words.. Maybe this is one of the later.

Nowadays, i think in numbers and value rather than the price. Maybe i am being materialistic, maybe i am being realistic, or maybe i am understanding the economics of life.. whatever it is, i am sure that i am benefiting out of it..Life isn't the same it was years back. Today we talk in lacs, be it value or price.

It seems that the cost of living has increased but cost of life is nothing!

My due regards to those heroes, who have laid down their lives in saving others.
My prayers and wishes to those who have survived and yet have to live with the trauma of being a part of the Mumbai attacks. Our heroes have not given their lives for nothing, but with a dream, a hope of a better India.

29 Nov 2008

LIfe's like that

Terror strikes again in Mumbai, everyone is afraid everywhere. Maybe because of the place i come from, or maybe coz i am just busy with my own life - i did not feel the heat of it!

What was funny or say the lighter side of the attack was the few calls i got the next morning.

The first one was from a friend who owes me a huge sum of money.
The second was a friend who was also an LIC agent for me :)

Need Adminstrator access in Windows?

Many a times, you might have access to a PC but need Administrator privilege to download a file,make some changes, or for anything else where admin privilege is needed. There can be few ways to solve the problem, some of them which i know are

1) Using Winternals ERD Commander (with locksmith)
Winternals has been bought by Microsoft and they are looking into the efforts made by them, repackaging them in form of small modules and programs categorized in their website. You can find them art Windows Sysinternals.

You can also manually download the ERD Commander software from torrents available or other underground sites.



2) Bypassing Admin password using Windows XP CD (Bootable)
To do the same, please follow the following step by step procedure..

1. Place the XP CD in -rom and start your computer ((CD should be bootable)

2. Press any key to boot from cd

3. Once you get in, the first screen will indicate that Setup is inspecting your system and loading files.

4. When you get to the Welcome to Setup screen, press ENTER to Setup Windows now

5. The Licensing Agreement comes next - Press F8 to accept it.

6. The next screen is the Setup screen which gives you the option to do a Repair.

It should read something like “If one of the following Windows XP installations is damaged, Setup can try to repair it”

Use the up and down arrow keys to select your XP installation (if you only have one, it should already be selected) and press R to begin the Repair process.

7. Let the Repair run. Setup will now check your disks and then start copying files which can take several minutes.

8. Shortly after the Copying Files stage, you will be required to reboot. (this will happen automatically – you will see a progress bar stating “Your computer will reboot in 15 seconds”

9. During the reboot, do not make the mistake of “pressing any key” to boot from the CD again! Setup will resume automatically with the standard billboard screens and you will notice Installing Windows is highlighted.

10. Keep your eye on the lower left hand side of the screen and when you see the Installing Devices progress bar, press SHIFT + F10. This is the security hole! A command console will now open up giving you the potential for wide access to your system.

11. At the prompt, type NUSRMGR.CPL and press Enter. Yo! You have just gained graphical access to your User Accounts in the Control Panel.

12. Now simply pick the account you need to change and remove or change your password as you prefer. If you want to log on without having to enter your new password, you can type control userpasswords2 at the prompt and choose to log on without being asked for password. After you’ve made your changes close the windows, exit the command box and continue on with the Repair (have your Product key handy).

13. Once the Repair is done, you will be able to log on with your new password (or without a password if you chose not to use one or if you chose not to be asked for a password). Your programs and personalized settings should remain intact.


You cannot cancel install after making the changes and expect to logon with your new password.

Cancelling will just result in Setup resuming at bootup and your changes will be lost.



Courtesy:
Techtrax
Windows Sysinternals

27 Nov 2008

How to save more Tax!

Are you sure that you have done the year's Tax planning? Think again.
You must have already saved tax under Sec 80 C by investing upto Rs 1,00,000 in various investment instruments. But did you know that you can save more tax than that by investing more?

The answer is HUF (Hindu Undivided family). An HUF is a good tax-cutter since it is treated as a separate entity and taxed accordingly. As per Wikipedia, a Hindu Joint Family or Hindu undivided family (HUF) or a Joint Hindu Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent, consisting of many generations living under the same roof.

How does an HUF reduce taxes?
An HUF is an efficient tool to plan taxes because, under the income tax laws, it is treated as a separate entity and assessed to tax as a separate entity. Accordingly, an HUF is eligible for all the deductions and exemptions, including the benefit of the basic limit chargeable to tax and wealth tax that’s available to an individual. And so, like an individual, an HUF’s income is tax-free up to Rs 1,00,000. It also enjoys the exemption under Sections 54 and 54F in respect of capital gains, the deductions under Sections 80CCA, 80CCB, 80D, 80G, 80GG and 80C
The HUF is also eligible for the following deductions: Section 80D, for the insurance premium paid on the health of its members; Section 80G, for any donations it makes.

Then, under Section - 80C, it gets a deduction in respect of the premium paid on life insurance policies for its members.


What income is regarded as HUF income?
All the income that arises on the utilisation of the HUF’s assets and on the investment of its funds is regarded as the HUF’s income that is assessed separately and chargeable to tax. Importantly, the income should have been earned using HUF property or funds or property only; if it arises on account of the personal investments of any member, it will generally be regarded as the individual income of the member.


What are the options?
1) BORROW FUNDS: The capital of an HUF can also be enhanced by borrowing funds from people who are not members. If the borrowing is specifically in the HUF’s name, and it is thereafter invested in the HUF’s name, the income arising on the investment will be regarded as the income of the HUF.

2) TRANSFER individual funds to the HUF and then invest the money in tax-free instruments. Since the income from such investments will be tax-free, it will not be clubbed with the individual’s income. The income arising on the reinvestment of the tax-free income (which may be in taxable income-yielding assets) will also not be clubbed, since only the income arising on transferred amounts is clubbed.


Courtesy:
Wikepedia
Outlookmoney.com
HDFC Bank Ltd.

How to save more Tax!

Are you sure that you have done the year's Tax planning? Think again.
You must have already saved tax under Sec 80 C by investing upto Rs 1,00,000 in various investment instruments. But did you know that you can save more tax than that by investing more?

The answer is HUF (Hindu Undivided family). An HUF is a good tax-cutter since it is treated as a separate entity and taxed accordingly. As per Wikipedia, a Hindu Joint Family or Hindu undivided family (HUF) or a Joint Hindu Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent, consisting of many generations living under the same roof.

How does an HUF reduce taxes?
An HUF is an efficient tool to plan taxes because, under the income tax laws, it is treated as a separate entity and assessed to tax as a separate entity. Accordingly, an HUF is eligible for all the deductions and exemptions, including the benefit of the basic limit chargeable to tax and wealth tax that’s available to an individual. And so, like an individual, an HUF’s income is tax-free up to Rs 1,00,000. It also enjoys the exemption under Sections 54 and 54F in respect of capital gains, the deductions under Sections 80CCA, 80CCB, 80D, 80G, 80GG and 80C
The HUF is also eligible for the following deductions: Section 80D, for the insurance premium paid on the health of its members; Section 80G, for any donations it makes.

Then, under Section - 80C, it gets a deduction in respect of the premium paid on life insurance policies for its members.


What income is regarded as HUF income?
All the income that arises on the utilisation of the HUF’s assets and on the investment of its funds is regarded as the HUF’s income that is assessed separately and chargeable to tax. Importantly, the income should have been earned using HUF property or funds or property only; if it arises on account of the personal investments of any member, it will generally be regarded as the individual income of the member.


What are the options?
1) BORROW FUNDS: The capital of an HUF can also be enhanced by borrowing funds from people who are not members. If the borrowing is specifically in the HUF’s name, and it is thereafter invested in the HUF’s name, the income arising on the investment will be regarded as the income of the HUF.

2) TRANSFER individual funds to the HUF and then invest the money in tax-free instruments. Since the income from such investments will be tax-free, it will not be clubbed with the individual’s income. The income arising on the reinvestment of the tax-free income (which may be in taxable income-yielding assets) will also not be clubbed, since only the income arising on transferred amounts is clubbed.


Courtesy:
Wikepedia
Outlookmoney.com
HDFC Bank Ltd.

23 Nov 2008

Honeymoon period over

The first 3/4 months of work in my new workplace is what my Boss refer to as Honeymoon period, where I like a newly wed Groom have to just sit and watch and learn what was going on around me. In those 3/4 months, I have indeed learnt so many things which the bookish knowledge i had surpassed fluently word by word was of no use. I had committed so many mistakes which was affordable to the organization, but i am happy that i am able to learn from the mistakes rather than just sulk about it. My boss like any other good superior would pass down the value addition he had in all these years in terms of experience and profession, and making it rather simple for me to understand.

Now that its been more than 6 months, with more mistakes  and many blood boiling moments...as everyone do,i am also learning to bear the blow of life bit by bit. Last time i realised honeymoon period is over was when i was dressed down by Boss for my mistakes committed and asked me the man hours i put in my work. A man should hit one at his weakness as someone said. At the moment, my job is my livelihood, my weakness and thats where he hit me. From that moment, I worked more harder and tried to show the work i have been puttind my daily sweat. There was no shortcut in success, i knew, but i realised that i had to work smartly rather than slog like others. I knew i was different from others, my basic disadvantage was the domain in which i was working - which was new to me. So with some thoughts, i kept working but also kept in mind my livelihood, with serious thingking on the work.

Its more than 3 months now post honeymoon period, yet i am dragging along.. with each passing day, i get to learn new things in my domain. The disadvantage was that i did not get to do any ground work myself but have to handover to Vendors which were there to work for the Bank. Now that the honeymoon period is over, less time is left to write blogs and more time to think of investments and savings. Thanks for reading, keep reading..

19 Nov 2008

Invetment areas - Continued

In my last post, i had mentioned about my retirement plans. Well i was serious about it.I have started working for just 6 months now, many people might even laugh at me when i talk about retirement plans but i do have a reason for that. I want some large amount of money post retirement, so that i do not have to depend on anyone else in my old age. In 30 years time, with the rupee depreciating .. i would need lots of money in terms of today's price.
This Monday i had inquired about a ULIP linked retirement plan, the scheme was easy but the calculations were not to my understanding. As per the Relationship Manager (RM) , if i invest 20k every year for 30 years i would be reaping in lacs per annum and not 20k.

Lets see how i calculated.
Amount i would invest = 20,000 * (60-26) =   6,80,000 (flat, without interest)
As per the RM, i would be getting some 54,000 per month till i die. That is 64 lacs something per annum!! Even if i die, the remaining amount will be handed over to the person i would be nominating in the agreement.  I am not sure how he calculated that, lets wait and watch. As of now, i have thought of investing in this ULIP linked Retirement plan.  In the mean time i will ask the RM and share it with you.

So this is my investment area no 4, i guess

4) ULIP linked  Retirement plan
This plan is linked to market condition prevailing at that time. However this is a long term investment and not for short term plan, so if you are looking for a short term gains, you are at the wrong place. Govt offers a normal rate of some 10% on ULIP plans, as per the RM the interest rate will be about 24%+

Advantages:
1) Long term plan
2) Less dependency on others post retirement
3) Tax benefit investment

Disadvantages:
1) The interest amount is taxable. Of the whole amount post retirement, 1/3 is non taxable whereas 2/3 is taxable
2) You have to look out for finances at present, as you wont reap the benefits now

16 Nov 2008

Investment areas - Managing your portfolio

In today's contracting market, it is rightly said that Cash is king! With the Stock markets crashing, people have lost faith in stocks. There are various others investment areas where one can invest besides stocks with less risk, like the ULIP Plans which are based on the risk taking capacity of the investor. Some of the investment instruments one can look to invest and diversify the portfolio in such prevailing condition are as follows :

1) Public Provident Fund (PPF)

          The Public Provident Fund Scheme
is a statutory scheme of the Central Government of India.

       Some of the features are as listed below:
  • The Scheme is for 15 years.
  • The rate of interest is 8% compounded
    annually.
  • One deposit with a minimum amount
    of Rs.500/- is mandatory in each financial year.
  • Joint account is not permissible.
  • Those who are contributing to GPF
    Fund or EDF account can also open a PPF account.
  • The PPF scheme is operated through
    Post Office and Nationalized banks.
  • PPF account can be opened either in
    Post Office or in a Bank.
  • Account is transferable from one Post
    office to another and from Post office to Bank and
    from Bank to Post office.
  • Deposits in PPF qualify for rebate
    under section 80-C of Income Tax Act.
  • Best for long term investment.
Advantages:
1) Post retirement long term plan
2) Easily accessible through Post offices across India
3) The funds accumulated can be taken out based on needs, depending on the rules laid down by the Govt
4) Redeemable upon retirement
5) The interest on deposits is totally
tax free.


2) Systematic Investment Plan (SIP)

              An SIP is a vehicle offered by mutual funds to help you save regularly.
          It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund. This is basically a long term investment where you wish to achieve a definite amount for some particular reason..say for your childrens education or maybe post retirement plans

Advantages:
1) Be a regular investor
2) Commitment in investments
3) Streamlined perspective of what you are going to get
4) A clear picture of your future demands
5) Doesn't need  very large premium
6) Can be shown as an investment



3) Term Assurance Plans
Have you ever thought of what will happen to your family when you are not there? Will they have to go through the dilemma and bear the loans you have taken for car or home? Do not worry, for they will be covered by Term assurance plans. They basically assure you the premium you have asked to cover for and only can be recovered when either the plan matures or upon your demise.

Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.

Advantages:
1) Can be shown as an investment
2) Peace of mind for investors
3) Roll back plan in case of any misfortune that happen to you


Courtesy:

1) Wikepedia
2) Bajaj Capital
3) LIC India Ltd.
4) HDFC Bank Ltd.

My Wish-list

Like many others i have a few wish list of my own,but unlike others i am crazy about latest gadgets. Some of the things i dream to own are as given below:

1) iPod touch/ iPhone
2) DSLR with at least 12 MP and 3" LCD Screen and Zoom lens (lately Nikon 300, Canon EOS series or Sony Alpha)
3) Home theater system (should suffice music system also)
4) Large screen LCD TV that would cover the walls
5) A fast Hi end computer with a fast Internet broadband connected (should take care of free VOIP calls anywhere on earth)


And the list will go on as gadgets emerge. As of now, i am planning to own iPod touch (32 GB) by December first week. And DSLR coming up by January/ February. Keep reading to be updated on its reviews too.

And some of the things i would like to do are..
1) Travel the world (maybe ill sign up with Club Mahindra for holidaying each year)
2) Go on a shooting spree (after i get my DSLR, for now my Digital camera DSC H3)
3) Own a home in Mumbai (maybe in some months or years time)
4) White water rafting, trekking trips, bungee jumping etc
5) A complete bungalow with garden and fence around it, car parking and of course with terrace
....

Good time to invest

With the Global recession going on, I have thought of investing not for tomorrow but for my post retirement  life! I am beginning to worry if what i have been saving will be over with time as i go on...marriage, children, new home, car, holiday , childrens education and what not?? I believe that i would manage the mid way path, but I am not certain about what and how much amount i will be left with post retirement? Will it be sufficient enough for me to reire or would it be engulfed in my childrens education ... the cost of education will too be increased manifold with time !

So i am in a confusion, what to do.. how much to invest today and till what time? This needs a well calculated risks involved along with it and so are the benefits that i would be reaping post retirement and not now. So there is a big question if i would be able to manage it?  Thats why there is a plan called Systematic Investment Plan (SIP). I need to go right through it in a few days time and do all the calculations till i am in office (say calculations till 60 years of age), and not to forget the TVM (Time Value for Money) in it.

Suppose i invest Rs 1000 only per month till 60 years of age, my savings would be something like this...

Savings at 60 years of age flatly (Present value) = 1000*12* (60 - 26) = Rs 408000/- (pretty good huh!)
Now the TVM factor , say Compounded at 8% for (60-26) i.e. 34 years

Future Value (FV)  = Cash Flow * FVIFA k,n
where,
Cash Flow = 1000*12 =12000
FVIFA k,n = [(1+k)^n -1]/k
k = 8% = 0.08
n = 34

Future Value (FV) = 12000 [ (1+0.08)^34 -1]/0.08

= 12000*158.626  
= Rs 1,903,520 /-

Hence i will be having 19 lacs after 34 years, if i invest every month an amount of Rs 1000 only for 34 years.  So i think you should also go for this type of investment. But please make sure that  you invest the excess amount only and not the basic amount which you have. As the saying which is famous nowadays goes like this.. " Invest when people aree greedy, and be greedy when people invest " by some author i forgot.
Please note that the amount has to be deducted every month for 34 years and its a big commitment from ones side. Hence make sure you are ready for it otherwise it isnt worth  the investment.

Likewise an investment of Rs 4166 per month or Rs 50k per annum can lead you to Rs 79,31,333 after 34 years. Keep calculating :)

Advantages:

1) Be a regular investor
2) Commitment in investments
3) Streamlined perspective of what you are going to get
4) A clear picture of your future demands
5) Doesnt need  very large premium

Disadvantages:

1) Inflation or recession may affect the rates
2) Amount invested so far will be freezed and can be realised only on maturity
3) If you discontinue the investment, penalty may be attracted depending on the rules of the Bank or type of investment

Disclaimer:

The calculations shown here are based on the formulas known to us in Finance. The calculations are based on my own thoughts and necessarily do not refelct someones. Please read the instructions or agreement and rules before investing.

Investment plan 3

As mentioned in my last Blog on Income tax calculation, a person can claim a maximum of Rs 1 lac only in a financial year to evade tax. I was thinking otherwise.... what if i invest the same amount which i would be saving for the financial year and invest in something which will yield higher benefits. So i came up with a small calculation which stuck quite in my  favor .
Remember Investment plan 1?

For that i need at least RS 1,27,000/- only; which is 27k more. With that amount invested, you will be reaping benefits over benefits. Let me share u the calculations...

Amount i will get out of the investment = 7775*12 = 93300
Tax I have to pay without investing the 1lac rupees in a financial year (after deduction of other tax benefit claims like room rent, medical claims, life insurance etc which already have been invested) = Rs 47550 (approx)

Amount i will gain even after not paying off taxes = 93300 - 47550   = Rs 45750/- (approx)


Disclaimer:
Please do not take this for a ride. Investment decision is purely yours and should not be driven by any advices or counsels. This plan is shared by me based on my thinking and beliefs, please do not bais yourself on the same.

Investment plan 3

As mentioned in my last Blog on Income tax calculation, a person can claim a maximum of Rs 1 lac only in a financial year to evade tax. I was thinking otherwise.... what if i invest the same amount which i would be saving for the financial year and invest in something which will yield higher benefits. So i came up with a small calculation which stuck quite in my  favor .
Remember Investment plan 1?

For that i need at least RS 1,27,000/- only; which is 27k more. With that amount invested, you will be reaping benefits over benefits. Let me share u the calculations...

Amount i will get out of the investment = 7775*12 = 93300
Tax I have to pay without investing the 1lac rupees in a financial year (after deduction of other tax benefit claims like room rent, medical claims, life insurance etc which already have been invested) = Rs 47550 (approx)

Amount i will gain even after not paying off taxes = 93300 - 47550   = Rs 45750/- (approx)


Disclaimer:
Please do not take this for a ride. Investment decision is purely yours and should not be driven by any advices or counsels. This plan is shared by me based on my thinking and beliefs, please do not bais yourself on the same.

13 Nov 2008

Investment Plan 2

The Plan:
Buy a house somewhere in Navi Mumbai/Thane/ Vashi/ Panvel which has lower land rate in Mumbai. Currently its in the range of 3500-6100 PSF .

Soaring land rates:
Navi Mumbai has seen a lot of action in the past 1 year. The property prices in Kharghar, Belapur, Vashi etc. are touching new heights. The Palm Beach road is getting busier by the day and the Malls and large revocations in DAKC and other IT Parks has seen a surge in Corporate Population. There is surely potential in these locations. Airoli is the next hot spot with a lot of action in Commercial and Retail. Average Rates Rs.2000/- to Rs.4500/- PSF. Outlook Bright Future with Maha Mumbai and SEZs and Airport planned out, it may be a beneficial to invest now in select projects.

Initital assumptions:
Supposing you need at least 1BHK tp start with of say 500-600 SF area, It will come somewhere in 30 -40 Lacs

Finance:
Initial finance will be taking home loans. Today SBI offers Home loans at 11.5% for 25 years upto some 50-60 lacs. Take it on fixed rate and not floating rate.

Rough Calculations:

The EMI for 40lacs will be

EMI = 3000000/(12*25) (Home loan for 25 years)
= 10000 (Per month excluding interest)


Option 1
If you give the room for rent , you will get at least 7-10 K per month. Supposing you get 10k on an average,
10000*12 = 120000 which t will cover your EMI.

Option 2
Staying in the house. A house in Mumbai means all expenses cut down. You can stay as long as you are in Mumbai, its your own house anyway. When u plan to move out of Mumbai; make sure not to keep the room idle .Give it on rent ,if the home is less than 4 years of possession or sell it if its more than 4 years of possession. The amount you can fetch is around 4 to 5 times the original price in 4 years time (believe me) i.e you will get around15 lacs after 4/5 years time.


Advantages

1) A home of your own eventually
2) EMI covered by rent (if rented)
3) No need to nvest (10k per month for a year is 1.2 lacs, no need to show investment for 25 years)
4) Sell at 4/5 times its original price after 5 years
5) Interest rates at 11% now
6) Expenditure will be less if you are staying in the house
7) Family oriented, cozy home feeling


Disadvantages
1) Property tax, society tax payable one time per annum
2) A pain to take 30lacs home loan
3) May have to spend more if rented intially
4) Have to go to a broker to lease out the room if you are going to rent it out


So try your luck. Think about it and give a go. Please do not held me responsible for anything. This is in exception to market risk and market rates known to me. The land rates, interest rates and space area may differ from actual plan. Please read the property and loan papers carefully before investing or going for a loan.

Investment Plan 2

The Plan:
Buy a house somewhere in Navi Mumbai/Thane/ Vashi/ Panvel which has lower land rate in Mumbai. Currently its in the range of 3500-6100 PSF .

Soaring land rates:
Navi Mumbai has seen a lot of action in the past 1 year. The property prices in Kharghar, Belapur, Vashi etc. are touching new heights. The Palm Beach road is getting busier by the day and the Malls and large revocations in DAKC and other IT Parks has seen a surge in Corporate Population. There is surely potential in these locations. Airoli is the next hot spot with a lot of action in Commercial and Retail. Average Rates Rs.2000/- to Rs.4500/- PSF. Outlook Bright Future with Maha Mumbai and SEZs and Airport planned out, it may be a beneficial to invest now in select projects.

Initital assumptions:
Supposing you need at least 1BHK tp start with of say 500-600 SF area, It will come somewhere in 30 -40 Lacs

Finance:
Initial finance will be taking home loans. Today SBI offers Home loans at 11.5% for 25 years upto some 50-60 lacs. Take it on fixed rate and not floating rate.

Rough Calculations:

The EMI for 40lacs will be

EMI = 3000000/(12*25) (Home loan for 25 years)
= 10000 (Per month excluding interest)


Option 1
If you give the room for rent , you will get at least 7-10 K per month. Supposing you get 10k on an average,
10000*12 = 120000 which t will cover your EMI.

Option 2
Staying in the house. A house in Mumbai means all expenses cut down. You can stay as long as you are in Mumbai, its your own house anyway. When u plan to move out of Mumbai; make sure not to keep the room idle .Give it on rent ,if the home is less than 4 years of possession or sell it if its more than 4 years of possession. The amount you can fetch is around 4 to 5 times the original price in 4 years time (believe me) i.e you will get around15 lacs after 4/5 years time.


Advantages

1) A home of your own eventually
2) EMI covered by rent (if rented)
3) No need to nvest (10k per month for a year is 1.2 lacs, no need to show investment for 25 years)
4) Sell at 4/5 times its original price after 5 years
5) Interest rates at 11% now
6) Expenditure will be less if you are staying in the house
7) Family oriented, cozy home feeling


Disadvantages
1) Property tax, society tax payable one time per annum
2) A pain to take 30lacs home loan
3) May have to spend more if rented intially
4) Have to go to a broker to lease out the room if you are going to rent it out


So try your luck. Think about it and give a go. Please do not held me responsible for anything. This is in exception to market risk and market rates known to me. The land rates, interest rates and space area may differ from actual plan. Please read the property and loan papers carefully before investing or going for a loan.

6 Nov 2008

Open all links in a new window

Many a times you will find that you wish to open a link given on the blog to be opened in a new window without affecting the Blog page, which normally doesn't happen.

Instead of coding each individual link to a blog, picture, or web site, you can make all links within your blog open in a new window. Simply do the following steps as shown in image below



Please remember to backup your template before making any changes, so that you can roll back later in case it doesn't work out. Thats it, mine is working. Try it at your own risk!

4 Nov 2008

Income tax revisited

I have come across many people who do not have any idea about Income tax. This post is to help then understand the basic things on how it works. Please refer the Income tax rates and slabs for different individuals in India in table given below.

Income Tax Calculation
Income tax is calculated on the gross salary. In CTC, we use to add all the reimbursements. On Reimbursements like Medical, LTA, Driver Salary, Petrol etc, if the employee would provide the bills, it will be tax exempted.All unclaimed amount will be paid by the end of the financial year i.e. with the March salary after deduction the Tax.

Bonus, Ex-gratia, Variable Pay are coming under the taxable salary.
HRA ( In Metro) 50% of the basic would be tax exempted provided the employee has to produce the rent receipt. Conveyance Allowance - Rs 800/- monthly would be tax free.

Is tax from all my accounts?

In India, we have Tax Deduction at Source (TDS), which means that Tax is applicable at the source of your income. So if you are working, then tax is applicable to your salary account only.


Income Tax Rates for FY 2008-09:

I) For any guy in India

Total Income Range Tax Rates Surcharge Education Cess (% of I.T) Secondary and Higher Education Cess
Upto Rs.1,50,000/- Nil Nil Nil Nil
Rs.1,50,001-
Rs. 3,00,000
10% of the amount by which the total Income exceeds Rs.1,50,000 Nil 2%
1%
Rs.3,00,001-
Rs. 5,00,000
Rs.15,000 + 20%of amount by which the total Income exceeds Rs.3,00,000 Nil 2% 1%
Above Rs. 5,00,000 Rs.55,000 + 30% of amount by which the total Income exceeds Rs.5,00,000 Nil 2% 1%


It means that a person having a gross salary of upto Rs 1,50,000 is exempted from tax.
In a Financial year, an individual can show a saving of Rs 1,00,00 only to save Tax. It can be Govt Tax saving Bonds of 5 year term, Medical Insurance, Mutual funds, Life Insurance, ULIP Plans, Home Loan etc but it does not include Gold and Stocks


(II) In case of resident women below 65 years of age.









Total Income Range Tax Rates
Surcharge

Education Cess (% of I.T) Secondary and Higher Education Cess
Upto Rs.1,80,000/- Nil
Nil

Nil Nil
Rs.1,80,001- Rs. 3,00,000 10% of the amount by which the total Income exceeds Rs. Rs.1,80,000
Nil

2% 1%
Rs.3,00,001- Rs. 5,00,000 Rs.12,000 + 20% of amount by which the total Income exceeds Rs.3,00,000
Nil

2% 1%
Above Rs. 5,00,000 Rs.52,000 +30% of amount by which the total Income exceeds Rs.5,00,000
Nil

2% 1%

It means that a woman having a gross salary of upto Rs 1,80,000 is exempted from tax. Same goes for a women too in terms of saving in a financial year.

Tax Calculation
Suppose a guy has a gross salary of Rs 3,80,000 ; lets calculate how much tax he has to pay in a financial year.
In a financial year, one has to declare his Income at the start of his work - say after 2/3 months of joining in a Company.
Suppose he declares an investment of Rs 1 Lacs, be it of any distribution like ...
Govt Bonds Rs 30,000
Mutual Funds Rs 60,000
Insurance Rs 10,000

Then his tax liability becomes 3,80,000 - 1,00,000 = 2,80,000
On that, tax is levied only when the amount is above Rs 1,50,000
Hence the amount which is taxable is 2,80,000 - 1,50,000 = 1,30,000

Therefore income tax payable = 10% of 1,30,000 = 13,000
Above that Education Cess (% of I.T) = 2% of 13,000 = 260
and Secondary and Higher Education Cess = 1% of 13,000 = 130

Total tax payable = 13,000+260+130 = Rs 13,390 in that financial year.

Isnt that simple? Hope you can calculate yours now :)


Income tax revisited

I have come across many people who do not have any idea about Income tax. This post is to help then understand the basic things on how it works. Please refer the Income tax rates and slabs for different individuals in India in table given below.

Income Tax Calculation
Income tax is calculated on the gross salary. In CTC, we use to add all the reimbursements. On Reimbursements like Medical, LTA, Driver Salary, Petrol etc, if the employee would provide the bills, it will be tax exempted.All unclaimed amount will be paid by the end of the financial year i.e. with the March salary after deduction the Tax.

Bonus, Ex-gratia, Variable Pay are coming under the taxable salary.
HRA ( In Metro) 50% of the basic would be tax exempted provided the employee has to produce the rent receipt. Conveyance Allowance - Rs 800/- monthly would be tax free.

Is tax from all my accounts?

In India, we have Tax Deduction at Source (TDS), which means that Tax is applicable at the source of your income. So if you are working, then tax is applicable to your salary account only.


Income Tax Rates for FY 2008-09:

I) For any guy in India

Total Income Range Tax Rates Surcharge Education Cess (% of I.T) Secondary and Higher Education Cess
Upto Rs.1,50,000/- Nil Nil Nil Nil
Rs.1,50,001-
Rs. 3,00,000
10% of the amount by which the total Income exceeds Rs.1,50,000 Nil 2%
1%
Rs.3,00,001-
Rs. 5,00,000
Rs.15,000 + 20%of amount by which the total Income exceeds Rs.3,00,000 Nil 2% 1%
Above Rs. 5,00,000 Rs.55,000 + 30% of amount by which the total Income exceeds Rs.5,00,000 Nil 2% 1%


It means that a person having a gross salary of upto Rs 1,50,000 is exempted from tax.
In a Financial year, an individual can show a saving of Rs 1,00,00 only to save Tax. It can be Govt Tax saving Bonds of 5 year term, Medical Insurance, Mutual funds, Life Insurance, ULIP Plans, Home Loan etc but it does not include Gold and Stocks


(II) In case of resident women below 65 years of age.









Total Income Range Tax Rates
Surcharge

Education Cess (% of I.T) Secondary and Higher Education Cess
Upto Rs.1,80,000/- Nil
Nil

Nil Nil
Rs.1,80,001- Rs. 3,00,000 10% of the amount by which the total Income exceeds Rs. Rs.1,80,000
Nil

2% 1%
Rs.3,00,001- Rs. 5,00,000 Rs.12,000 + 20% of amount by which the total Income exceeds Rs.3,00,000
Nil

2% 1%
Above Rs. 5,00,000 Rs.52,000 +30% of amount by which the total Income exceeds Rs.5,00,000
Nil

2% 1%

It means that a woman having a gross salary of upto Rs 1,80,000 is exempted from tax. Same goes for a women too in terms of saving in a financial year.

Tax Calculation
Suppose a guy has a gross salary of Rs 3,80,000 ; lets calculate how much tax he has to pay in a financial year.
In a financial year, one has to declare his Income at the start of his work - say after 2/3 months of joining in a Company.
Suppose he declares an investment of Rs 1 Lacs, be it of any distribution like ...
Govt Bonds Rs 30,000
Mutual Funds Rs 60,000
Insurance Rs 10,000

Then his tax liability becomes 3,80,000 - 1,00,000 = 2,80,000
On that, tax is levied only when the amount is above Rs 1,50,000
Hence the amount which is taxable is 2,80,000 - 1,50,000 = 1,30,000

Therefore income tax payable = 10% of 1,30,000 = 13,000
Above that Education Cess (% of I.T) = 2% of 13,000 = 260
and Secondary and Higher Education Cess = 1% of 13,000 = 130

Total tax payable = 13,000+260+130 = Rs 13,390 in that financial year.

Isnt that simple? Hope you can calculate yours now :)


2 Nov 2008

iPhone woes



Today i had went to the famous phone market in Mumbai - Alfa. It was my first time, and being a sunday it just took me fifteen minutes by bus; had it been a working day it would have taken me an hour at least. It was the first time for me and so it was so much fun to see the Alfa shops in line from 1 to 5. One can get anything you want from the Alfa store from one of the 5 stores. I took a sneel peek into to stores and had fun. There were some nice traveling bags which were worth buying - but the anticipation of prices were quite quite different from the price there !

The iPhone price of 3G for 8 Gb is some Rs 29,450 and Rs 34,000 for 16 GB . What the heck i said! Its better to buy off a second hand one i thought. There is not much difference in price from those sold in Airtel and Vodafone centres then. But if you are on a shopping mood, you definitely gotta go to his Alfa stores.Its worth taking a look. I also had some look on Sony DSLR alpha series, Nikon D50 and Canon EOS Series. It maybe the first time i am looking at a DSLR, taking it into my hands. I was tempted to buy the Sony Alpha at Rs 22000 but then i thought i should not go for impulsive shopping. If i have to buy somethng, i need to be sure about it first and then buy it - no matter what the price. By putting in some thousand bucks, if i can get a better one - whats the big deal huh! I believe in buying the best thing i can get hold of, witht the price tag in mind. Most people think of just buying it to fulfil thir wish but i have found that it doesnt stick long with the interest with which you had bought it with , along with passing time. So i tend to go for the best quality thing, though it may cost a little more. If i have to buy a DSLR, i need to make sure what my requirements are, then make sur the camera fulfills my need and then finally negoatiation on the prce. Indian mind generally tend to buy more then buy less with the same amount, i feel that its not necessary.

I will maybe buying it in December when i get some more money : )
So till then i have to hang on, Till then i have to make up my mind on what my requirement is - iPhone or DSLR. But this december, at least one of them is sure to be in my hand :)

iPhone woes



Today i had went to the famous phone market in Mumbai - Alfa. It was my first time, and being a sunday it just took me fifteen minutes by bus; had it been a working day it would have taken me an hour at least. It was the first time for me and so it was so much fun to see the Alfa shops in line from 1 to 5. One can get anything you want from the Alfa store from one of the 5 stores. I took a sneel peek into to stores and had fun. There were some nice traveling bags which were worth buying - but the anticipation of prices were quite quite different from the price there !

The iPhone price of 3G for 8 Gb is some Rs 29,450 and Rs 34,000 for 16 GB . What the heck i said! Its better to buy off a second hand one i thought. There is not much difference in price from those sold in Airtel and Vodafone centres then. But if you are on a shopping mood, you definitely gotta go to his Alfa stores.Its worth taking a look. I also had some look on Sony DSLR alpha series, Nikon D50 and Canon EOS Series. It maybe the first time i am looking at a DSLR, taking it into my hands. I was tempted to buy the Sony Alpha at Rs 22000 but then i thought i should not go for impulsive shopping. If i have to buy somethng, i need to be sure about it first and then buy it - no matter what the price. By putting in some thousand bucks, if i can get a better one - whats the big deal huh! I believe in buying the best thing i can get hold of, witht the price tag in mind. Most people think of just buying it to fulfil thir wish but i have found that it doesnt stick long with the interest with which you had bought it with , along with passing time. So i tend to go for the best quality thing, though it may cost a little more. If i have to buy a DSLR, i need to make sure what my requirements are, then make sur the camera fulfills my need and then finally negoatiation on the prce. Indian mind generally tend to buy more then buy less with the same amount, i feel that its not necessary.

I will maybe buying it in December when i get some more money : )
So till then i have to hang on, Till then i have to make up my mind on what my requirement is - iPhone or DSLR. But this december, at least one of them is sure to be in my hand :)

30 Oct 2008

Gold - a safe investment option??


Gold for once again seems to be the best and safest option for investment. Like a good fren told me, we should embark out surplus money in Gold. He told me that Gold is an option for Millionaires who wish to turn their Black money into white, i doubt! The Standard gold rose by Rs 320 at Rs 12,570 per ten gram during the Diwali festival.

I am not yet surprised at this rate. This year also, like last year.. the highest ROI was gold on the top. With recession going on, many countries are also taking up measures to fight the evil. I do believe that gold price will come down in few months time and rise. I dont know the relation between stocks and the price of gold but a good fren had told me that they are inversely proportional, how far it is true i dont know. Lets wait and watch. We had a small rift between us.. on buying gold and the source of money.

Let me put it in the form of a riddle. There can be two options of going for either one of the following.
1) Would you skip your annual investment to save tax of Rs 1 lac and instead invest in Gold?
2) Would you put your surplus amount in gold?

Lets go through the calculations now...
Option 1: At the current rate of 12,57 per gram, we will have 79 gram of Gold.
Now lets face the penalty of 30,000 as income tax for not showing 1 lac in annual investments.
So your amount you need to have is 130000 (1lac+30k for penalty)
Now the question is if you can afford that in a years time! Investin in gold has to be long term so you can skip the next year and avoid the penalty also. But you can see the gold price grow in 1 years time for sure. Say the prise rose to 1800 per gram, you will be having 142200 . Isnt that a great investment?? The only dependency is the fluctuating market and the price of the gold to rise at the end of the year. From a second viewpoint, lets put this way..
You invest 1lac at the rate of 1357 per gram
If you wish to reap 1.4 lacs the gold rate should be = 1257/1 lac *1.4 = 1759.4 /gram

Option 2: You can invest 5k every month and buy 10 gram in 3 months time (5000*3=15000). At this rate you will have 40 grams in a years time. The value will have at the end of year at the mentioned rate above, you wil have 72000 .

I will suggest option one here. You can expect gold rate to rise by at least 250 per gram in a quater (3 months time). So in a years time, the above rate is not impossible but risky. Confusing is it? Well i am sure, you are. If you aren't confused, what is the use of my post here :)
Arouse curiosity and make you think over it again and again is what i want. Do reply when you can make out and which option you will go for if the rates increases as mentioned here. :)
Till then keep reading... and happy investing.

Image Courtesy: Economic Times Epaper

Gold - a safe investment option??


Gold for once again seems to be the best and safest option for investment. Like a good fren told me, we should embark out surplus money in Gold. He told me that Gold is an option for Millionaires who wish to turn their Black money into white, i doubt! The Standard gold rose by Rs 320 at Rs 12,570 per ten gram during the Diwali festival.

I am not yet surprised at this rate. This year also, like last year.. the highest ROI was gold on the top. With recession going on, many countries are also taking up measures to fight the evil. I do believe that gold price will come down in few months time and rise. I dont know the relation between stocks and the price of gold but a good fren had told me that they are inversely proportional, how far it is true i dont know. Lets wait and watch. We had a small rift between us.. on buying gold and the source of money.

Let me put it in the form of a riddle. There can be two options of going for either one of the following.
1) Would you skip your annual investment to save tax of Rs 1 lac and instead invest in Gold?
2) Would you put your surplus amount in gold?

Lets go through the calculations now...
Option 1: At the current rate of 12,57 per gram, we will have 79 gram of Gold.
Now lets face the penalty of 30,000 as income tax for not showing 1 lac in annual investments.
So your amount you need to have is 130000 (1lac+30k for penalty)
Now the question is if you can afford that in a years time! Investin in gold has to be long term so you can skip the next year and avoid the penalty also. But you can see the gold price grow in 1 years time for sure. Say the prise rose to 1800 per gram, you will be having 142200 . Isnt that a great investment?? The only dependency is the fluctuating market and the price of the gold to rise at the end of the year. From a second viewpoint, lets put this way..
You invest 1lac at the rate of 1357 per gram
If you wish to reap 1.4 lacs the gold rate should be = 1257/1 lac *1.4 = 1759.4 /gram

Option 2: You can invest 5k every month and buy 10 gram in 3 months time (5000*3=15000). At this rate you will have 40 grams in a years time. The value will have at the end of year at the mentioned rate above, you wil have 72000 .

I will suggest option one here. You can expect gold rate to rise by at least 250 per gram in a quater (3 months time). So in a years time, the above rate is not impossible but risky. Confusing is it? Well i am sure, you are. If you aren't confused, what is the use of my post here :)
Arouse curiosity and make you think over it again and again is what i want. Do reply when you can make out and which option you will go for if the rates increases as mentioned here. :)
Till then keep reading... and happy investing.

Image Courtesy: Economic Times Epaper

New Version of Wndows, Windows 7 likely in 2010



Hark this... The software giant Microsoft, whose dominance is under threat, said Windows 7 will replace the disappointing Windows Vista in January 2010.


Microsoft said the new operating system was designed to function like a tighter version of Vista, which launched in 2006 but was widely derided as a “system hog” that slowed down computers with features that most users
never accessed.

Microsoft says it was learning its lessons from Vista, by making sure that Windows 7 would be fully compatible with all relevant devices and applications on launch. Windows 7 will also feature faster boot-up times, an updated task bar that includes previews of open windows, a new desktop look and a set of features optimized for laptops. The new operating system also makes it easier to coordinate and access files over networks and to automatically configure settings for different networks.

The new software will ditch some prominent features included in Vista including Calendar, Windows Mail, Movie Maker, Contacts and Photo Gallery, which will now be available for free from the Microsoft website.


Courtesy: Economic Times

New Version of Wndows, Windows 7 likely in 2010



Hark this... The software giant Microsoft, whose dominance is under threat, said Windows 7 will replace the disappointing Windows Vista in January 2010.


Microsoft said the new operating system was designed to function like a tighter version of Vista, which launched in 2006 but was widely derided as a “system hog” that slowed down computers with features that most users
never accessed.

Microsoft says it was learning its lessons from Vista, by making sure that Windows 7 would be fully compatible with all relevant devices and applications on launch. Windows 7 will also feature faster boot-up times, an updated task bar that includes previews of open windows, a new desktop look and a set of features optimized for laptops. The new operating system also makes it easier to coordinate and access files over networks and to automatically configure settings for different networks.

The new software will ditch some prominent features included in Vista including Calendar, Windows Mail, Movie Maker, Contacts and Photo Gallery, which will now be available for free from the Microsoft website.


Courtesy: Economic Times

Home Loan - Safe Investment?

Many people have Home Loan as a steady investment plan. But at the current prevailing rates (above 24%) does one get really benefited? Home loan has the following advantages..
1) Home as the end product
2) Annual premium can be shown as an investment
3) Keeps the person on toes... make him have a regular saving habit
4) Independent of market fluctuations...you have nothing to loose unless you opt for a floating interest rate
5) Long term investment
6) Ever increasing value of real estate, thereby adding to higher value of asset
7) Investment (price) as well as insurance (value) option with time...
8) Insurance cover

No matter....housing loan is no doubt a good option..if you have a house in mind.In a place like Mumbai. where space is scarce.. the land rates are 4500(min) to 15000 ( max) per square feet, depending on the location. So the basic need of a person in Mumbai is Basically a home of your own.. as compared to the prices of fuel,food, cost of living... land rate is beyond comparison. As the saying goes.." sow sparingly, reap sparingly; sow bountifully, reap bountifully".. except you know where you are investing and make sure you really need it. Theres no point investing if you do are doing it for the sake of investing. A monthly EMI will be enormous for a long period of time for the price of a decent flat in Mumbai.

The negative points for home loans may be ..
1) High land rates
2) High interest rates
3) High EMI
4) Long term commitment
5) Unpredictable outcomes

So think twice before leaping.. !

Home Loan - Safe Investment?

Many people have Home Loan as a steady investment plan. But at the current prevailing rates (above 24%) does one get really benefited? Home loan has the following advantages..
1) Home as the end product
2) Annual premium can be shown as an investment
3) Keeps the person on toes... make him have a regular saving habit
4) Independent of market fluctuations...you have nothing to loose unless you opt for a floating interest rate
5) Long term investment
6) Ever increasing value of real estate, thereby adding to higher value of asset
7) Investment (price) as well as insurance (value) option with time...
8) Insurance cover

No matter....housing loan is no doubt a good option..if you have a house in mind.In a place like Mumbai. where space is scarce.. the land rates are 4500(min) to 15000 ( max) per square feet, depending on the location. So the basic need of a person in Mumbai is Basically a home of your own.. as compared to the prices of fuel,food, cost of living... land rate is beyond comparison. As the saying goes.." sow sparingly, reap sparingly; sow bountifully, reap bountifully".. except you know where you are investing and make sure you really need it. Theres no point investing if you do are doing it for the sake of investing. A monthly EMI will be enormous for a long period of time for the price of a decent flat in Mumbai.

The negative points for home loans may be ..
1) High land rates
2) High interest rates
3) High EMI
4) Long term commitment
5) Unpredictable outcomes

So think twice before leaping.. !

Its all about money honey!!

Money money money!! Is that all an average person dreams of when he sleeps and thinks of when he wakes up? With the markets down.. due to recession, the value of life seems to dwindle with time... so does the value of a rupee. 5 years from now, we might have Rs 10,000/- note as big as someones face! Thats not the point here.. the point is that people consider the price of money and not its value. Today when the value of money is going down, rs 10/- is just a mere amount; whereas in the past.. if you have Rs 10/- in your hand....the whole world salutes you. Even a beggar in Delhi will throw back 5 rupee coin as alms. Its utter embarrassment to the person who do so. With soaring prices..and that too after staying here in Mumbai... i realized the value of money and not the price. I too did the same mistake of counting money in terms of price ..but later i realized that the index ..or the very base is wrong. Its like the difference in values of 9 for binary and decimal or hexadecimal system!

With each passing day,Mumbai teaches me new ways... new thoughts...new inspirations.. new lessons in life. Not just in terms of work life..but the value of every day today life...be it calling up someone or taking out time to meet someone. Because here in Mumbai..time is everything. Time is money here..i felt suffocated when i had went to Pune for my convocation... i felt like i will die if i do not do something worth the next moment. A moment spent idling gives me a shot in my veins nowadays. Life maybe different for someone.. coz my frens in Pune consider to have slow and lazy life (as compared to Mumbai life).AN ideal day for him would be ... go to work.come back home.. have some fun with frens.. catch up a beer at Apache.. or MG Road and maybe dinner or Movie later. Here in Mumbai, even when i am on my way to some hangout place ot movie..i am on my way...directing my vendors what to do and what not.. giving them orders....on what possibly is the right decision at the right time!

Financially speaking, I become very much exposed to it. I gained so much knowledge about tax system in India... how to save tax... where to invest...and what could possibly be the best option for me. I began even suggesting a fren or two.. and believe me.. he is satisfied with what i have suggested for him. :)
The fact is that.. you cannot depend only on your salary money for your son to have a degree from a top college or send him abroad. You need to have some extra income where you should invest...maybe investment or maybe insurance..or maybe some secured policies. Like todays financial experts advise to put in money from your surplus money and not your hard earned money into market, you need to put some extra effort to have that extra bucks. Am i talking sense? You will know when you calculate how much you want to have at the time of your retirement and how much you are saving at the moment.

Suppose you want to have at least Rs 50,00000 ( which is the price and not the value at that time) at the time of your retirement; lets calculate what amount you have to put in now. Lets say you are now 26 years old and you wish to work till the age of 60 years. That leaves us with 44 years of service.Supposing a decent package of some 4,00,000 per annum we have
Amount to be invested every month = 5000000/(44*12) = 9470/month (approx)
Can you afford to invest say ...9500 per month for 44 years? Thats the commitment you have to give yourself, taking into account the expenses of a new home, car, childrens expenses etc in the 44 years to come. Isnt it too much demand from yourself? Thats where SIP (systematic Investment Plan) come in. So next time when some insurance co comes to talk about your retirement plan, just think twice. You may say its your first job, you have a long time to retire.. but do you really have the time or money to get your wishes fulfilled; i doubt so!!

In the end.. money is all that matters (besides family and frens of course). Everyone dreams to have the comfort money can buy..and do not think of the depreciating value of money. See you next time.. happy investing.

Its all about money honey!!

Money money money!! Is that all an average person dreams of when he sleeps and thinks of when he wakes up? With the markets down.. due to recession, the value of life seems to dwindle with time... so does the value of a rupee. 5 years from now, we might have Rs 10,000/- note as big as someones face! Thats not the point here.. the point is that people consider the price of money and not its value. Today when the value of money is going down, rs 10/- is just a mere amount; whereas in the past.. if you have Rs 10/- in your hand....the whole world salutes you. Even a beggar in Delhi will throw back 5 rupee coin as alms. Its utter embarrassment to the person who do so. With soaring prices..and that too after staying here in Mumbai... i realized the value of money and not the price. I too did the same mistake of counting money in terms of price ..but later i realized that the index ..or the very base is wrong. Its like the difference in values of 9 for binary and decimal or hexadecimal system!

With each passing day,Mumbai teaches me new ways... new thoughts...new inspirations.. new lessons in life. Not just in terms of work life..but the value of every day today life...be it calling up someone or taking out time to meet someone. Because here in Mumbai..time is everything. Time is money here..i felt suffocated when i had went to Pune for my convocation... i felt like i will die if i do not do something worth the next moment. A moment spent idling gives me a shot in my veins nowadays. Life maybe different for someone.. coz my frens in Pune consider to have slow and lazy life (as compared to Mumbai life).AN ideal day for him would be ... go to work.come back home.. have some fun with frens.. catch up a beer at Apache.. or MG Road and maybe dinner or Movie later. Here in Mumbai, even when i am on my way to some hangout place ot movie..i am on my way...directing my vendors what to do and what not.. giving them orders....on what possibly is the right decision at the right time!

Financially speaking, I become very much exposed to it. I gained so much knowledge about tax system in India... how to save tax... where to invest...and what could possibly be the best option for me. I began even suggesting a fren or two.. and believe me.. he is satisfied with what i have suggested for him. :)
The fact is that.. you cannot depend only on your salary money for your son to have a degree from a top college or send him abroad. You need to have some extra income where you should invest...maybe investment or maybe insurance..or maybe some secured policies. Like todays financial experts advise to put in money from your surplus money and not your hard earned money into market, you need to put some extra effort to have that extra bucks. Am i talking sense? You will know when you calculate how much you want to have at the time of your retirement and how much you are saving at the moment.

Suppose you want to have at least Rs 50,00000 ( which is the price and not the value at that time) at the time of your retirement; lets calculate what amount you have to put in now. Lets say you are now 26 years old and you wish to work till the age of 60 years. That leaves us with 44 years of service.Supposing a decent package of some 4,00,000 per annum we have
Amount to be invested every month = 5000000/(44*12) = 9470/month (approx)
Can you afford to invest say ...9500 per month for 44 years? Thats the commitment you have to give yourself, taking into account the expenses of a new home, car, childrens expenses etc in the 44 years to come. Isnt it too much demand from yourself? Thats where SIP (systematic Investment Plan) come in. So next time when some insurance co comes to talk about your retirement plan, just think twice. You may say its your first job, you have a long time to retire.. but do you really have the time or money to get your wishes fulfilled; i doubt so!!

In the end.. money is all that matters (besides family and frens of course). Everyone dreams to have the comfort money can buy..and do not think of the depreciating value of money. See you next time.. happy investing.

26 Sep 2008

Time to Blog!!

Its said that there is time for everything in  life. When you are a child, you keep your hair long and like to rock like hell, freak out like anything, be mischievous and do all those sort of things your heart says. Then you become a teenager and fall in love..and no matter how many people say "love at first sight" , for you it is countless .. you begin to spend time before the mirror more than you sleep.. you dream of all those fairies and angels  around you.. you begin to see X- ray vision of all girls...you sleep less and dream more...
When you become an adult, you tend to loose interest and try to earn money... you become more diplomatic..you try to be sophisticated piece of shit...you begin to shave your mustache even when you love to keep it... life somehow becomes slower and you try to stabilize it...

And here i am...waiting for my boss to spare half an hour to see the monthly review of the projects we had done so far...afternoon becomes evening..evening becomes night. And i thought this is the perfect time to Blog.
Well, i guess..it definitely is a good time to blog and keep up with my own thoughts... some personal space eh!

Stumbling...

Its a new concept in the world of internet. I have been stumbling whenever i get time. Its really nice to know and discover new (new to me) sites which would otherwise have been lying there in vain, unnoticed. StumbleUpon discovers web sites based on your interests. Whether it's a
web page, photo or video... you just have to install the plugin for Firefox or the toolbar and just click the button, after registering and providing your interests. I have been seeing nice pictures, as i love fotography. I like the idea the very instant i come to know of it..some months back.

So lets see some nice websites before its too late. Try it out. Happy stumbling ! :)

Stumbling...

Its a new concept in the world of internet. I have been stumbling whenever i get time. Its really nice to know and discover new (new to me) sites which would otherwise have been lying there in vain, unnoticed. StumbleUpon discovers web sites based on your interests. Whether it's a
web page, photo or video... you just have to install the plugin for Firefox or the toolbar and just click the button, after registering and providing your interests. I have been seeing nice pictures, as i love fotography. I like the idea the very instant i come to know of it..some months back.

So lets see some nice websites before its too late. Try it out. Happy stumbling ! :)

21 Sep 2008

Sweet Innocent Goddess !!










Ain't she cool ? My sweet lil cousin sister. It was the first time when we actually met after her birth (I was studying outside hometown) and she did not recognize me for the few days. During my short stay at home, i was so tempted to do a foto session so i waited for the day she recognize me as one of her own and not a stranger. She could not speak but would smile a lot and make gestures instead. I had so much fun with her, making gestures to her instead of talking and she would retort back with her own ways. God, she must have grown up by now and must be yelling at her parents, demanding what she wants.. toys..food.. this and that. In the end, after the foto session, i was quite contented with her support in the same.

Parents often have to parade left and right for their ward when they are small. None would like to see his/her child fret and cry.. except when she asks for something that cannot be provided... like an elephant as a pet :) No matter, parents also find the same solace and happiness in seeing their child happy. What other happiness could replace the happiness to see their child .. grow up before their own eyes?

19 Sep 2008

Royally screwed



This is not the first time I was dressed down by my seniors in my workplace. I was supposed to follow up an activity which was beyond my understanding (all new to me) while my senior was supposed to do it. I did not do my homework as i was hesitant on the "sounds new" thing in me.

Later my senior asked the update of the activity, to which i had no answer. He drilled me left and right ...all i had was utter silence..

He later asked me to write down the time lines of the activities i do each day.... from morning smoke to evening snacks!!! Now i was royally screwed...
I tried to laugh to myself...but then a sudden gush of adrenaline colored me with red ( anxiety) and white (with embarrassment).

18 Sep 2008

Dinner Conversation

At a dinner party, one should eat wisely but not too well, and talk well but
not too wisely.
-W. Somerset Maugham

Courtesy: Quotes

Life Quote

"The minute you settle for less than you deserve, you get even less than you settled for."
Maureen Dowd


Courtesy: Quotes

Grass looks greener on the other side

Its rightly said that, grass looks greener on the other side. A person undervalues whatever he posses, and look for a better one. Maybe that's why we try to find a better one each moment, unsatisfied with what he has. There is a small village/town, far off in the Maharashtra- Bangalore border called Satara, where is spent some 5 years. It was love at first sight for me with the place, maybe because i got to learn new things in life and maybe because it was my first time outside of my hometown. However, for the rest, they cursed the God forsaken place like anything and wished to studied in Pune/Mumbai where there was decent crowd. Time took its own course, and i got accustomed to the surrounding. Despite the thousands of curses each day by fellowmen about the place, i was quite happy because of the quite environment. Mahableshwar, Panchagani ...some of India's famous Hill-stations were half an hours journey from my hostel. I used to frequent the place whenever i had the mood too, except for the petrol and extra money for food.

Each passing day, i used to go to college,come back to hostel and thats it. What i like about the place is the small town culture of being down-to-earth nature of the people, despite the fact that they were a bit old fashioned and would warn you if they see you wearing shorts!! It would not matter much to me,as it was quite similar to my hometown Manipur.. the environment, the scenic beauty.. A whiff of the foggy weather in Mahableshwar would refresh everyone's mind, no matter what he had lost in life. there was something magical about the beauty and place. Satara, as a district was large but where i dwelled was rather small. There were three road diversions in the main town center which also had an Effile Tower like "Colgate Palmolive" advertisement.


Satara, as seen on Pune- Banglore highway


There are many places where you can escape from the few but wrongly christened "madding crowd" in Satara. Some of them where one can find solace are...
* Ajikya-tara (old Shivaji's fort)
* Tho-se-garh (wind-farm and waterfall)
* Pratap-garh (in Mahableshwar)
* Mahableshwar (hill station)
* Panchgani (many filmstars had education here)
* Sajjan-garh (top of hill, where you can see the whole of Satara)
* Wai (on the way to Mahableshwar)
* Kas lake
* Sugarcane fields
the list goes endless..


Road to Ajinkyatara



View of Panchgani (Hill station)



The good thing about this place is that, being a small town, things are quite cheaper. One unforgettable thing was Dhabas.. some of the names i remember are..
* Sai Dhaba ( famous for butter chicken and near to hostel)
* Kanse dhaba
* Pankaj dhaba (chicken tandoori)

and all those theatres which i spent watching almost everyday [except for the morning shows :)] Well i guess i am missing the place, i can see the road to Mahableshwar so clearly in my dreams. Even the roads seems so beautiful...lonely, quite and beautiful landscapes.




Road to Mahableshwar through Kas lake


Wish to go there once again and enliven my memories soon. Hope to find a travelling partner for the same soon.

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