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.