10 May, 2008, 0118 hrs IST,Prabhakar Sinha, TNN
NEW DELHI: Inflation is no longer just eating into your pocket by way of higher grocery bills. It's also eroding the money you've safely put away in a fixed deposit in your bank or post office.
That's because at 7.61%, it is more than enough to offset your interest earnings, giving you negative real returns.
Most banks offer interest in the range of 8% to 8.75% on fixed deposits of tenures ranging from one year to 10 years.
The country's largest bank, SBI, for instance, offers 8.5% on deposits of two years or more, while for shorter duration deposits, it gives 8.75%.
That may seem like it still gives you some positive real return after accounting for inflation, but that's an illusion for most.
This is because the interest income is taxable, even if your deposit is covered by Section 80C of the Income Tax Act.
If your annual income is above Rs 5 lakh, the tax deduction would be at 30.9% (including education cess), which means the effective interest income comes down to 6.05% if the nominal rate is 8.75% and to 5.87% if the rate is 8.5%. In either case, the current level of inflation more than wipes out this return.
Even if your income is lower, between Rs 2.5 lakh and Rs 5 lakh per annum, where the tax rate applicable is 20.6%, the effective interest rate would be between 6.75% and 6.95%, again not enough to give you a positive real return on your deposit.
Real estate and gold, which typically appreciate fast in inflationary periods, are possible options that are relatively risk-free.
Equity could be another option, but that requires a different kind of risk appetite and more in-depth knowledge of the market.
With an annual income below Rs 2.5 lakh current levels of bank deposit rates and inflation give you a marginal positive real return.
With a tax rate of 10.3%, your effective interest earnings on deposits would be between 7.62% and 7.85%, barely allowing you to keep your nose above water.
Courtesy: timesofindia.com
Saturday, May 10, 2008
10 money tips from Mom
Your mother may have taught you more about managing your finances than you realize. Here's a list of those lessons.
Think Mom didn't teach you anything about money? Maybe you simply weren't paying attention.
1. "Have a place for everything, and everything in its place."
Ever tried to balance your checkbook or pay the bills when you couldn't lay your hands on one all-important piece of paper? And when are those bills due, anyway?
Organization is "very important in your financial life," says Douglas Borkowski, the director of the Financial Counseling Clinic at Iowa State University. When he was growing up, "Mom and Grandma were the ones who kept things organized," he says.
2. "Don't be late."
Mom was probably talking about school, but the rule applies to money, too. "You'd better pay your bills on time," says Les Kotzer, an attorney and a co-author of "The Family War: Winning the Inheritance Battle." Otherwise, you face increased interest rates, late fees and all kinds of financial penalties, including a damaged credit rating.
3. "You can do anything if you set your mind to it."
It's a fact: Set a goal and write it down, and you're much more likely to attain it. (Think of it as jotting down directions to a place you've never visited.) It works the same for financial goals.
When it comes to income, debts and savings, "you have to know how the pieces fit," Borkowski says.
Tell us: What was the best money advice you got from Mom?
4. "Know your own value."
Financial adviser Kathleen Miller gave her daughter the same advice she gives her clients: Make a net-worth statement every year.
On one sheet of paper, tally what comes in and what goes out. Include what you own and what you owe.
It's a great way to take a yearly snapshot of your financial life, says Miller, the head of Miller Advisors, a fee-only financial-planning firm in Kirkland, Wash. And it doesn't require any special math know-how.
Save the sheets from year to year and you have a "financial diary," which is "a real good way to have a very, very quick review," Miller says.
Think Mom didn't teach you anything about money? Maybe you simply weren't paying attention.
1. "Have a place for everything, and everything in its place."
Ever tried to balance your checkbook or pay the bills when you couldn't lay your hands on one all-important piece of paper? And when are those bills due, anyway?
Organization is "very important in your financial life," says Douglas Borkowski, the director of the Financial Counseling Clinic at Iowa State University. When he was growing up, "Mom and Grandma were the ones who kept things organized," he says.
2. "Don't be late."
Mom was probably talking about school, but the rule applies to money, too. "You'd better pay your bills on time," says Les Kotzer, an attorney and a co-author of "The Family War: Winning the Inheritance Battle." Otherwise, you face increased interest rates, late fees and all kinds of financial penalties, including a damaged credit rating.
3. "You can do anything if you set your mind to it."
It's a fact: Set a goal and write it down, and you're much more likely to attain it. (Think of it as jotting down directions to a place you've never visited.) It works the same for financial goals.
When it comes to income, debts and savings, "you have to know how the pieces fit," Borkowski says.
Tell us: What was the best money advice you got from Mom?
4. "Know your own value."
Financial adviser Kathleen Miller gave her daughter the same advice she gives her clients: Make a net-worth statement every year.
On one sheet of paper, tally what comes in and what goes out. Include what you own and what you owe.
It's a great way to take a yearly snapshot of your financial life, says Miller, the head of Miller Advisors, a fee-only financial-planning firm in Kirkland, Wash. And it doesn't require any special math know-how.
Save the sheets from year to year and you have a "financial diary," which is "a real good way to have a very, very quick review," Miller says.
Wednesday, May 7, 2008
Vodafone to sell Apple`s iPhone in India
BS Reporter / Mumbai May 7, 2008
Telecom major Vodafone will offer the much awaited iPhone in India. The firm has signed an agreement with Apple to sell the iPhone in 10 of its markets around the globe.
Later this year, Vodafone customers in India, Australia, the Czech Republic, Egypt, Greece, Italy, Portugal, New Zealand, South Africa and Turkey will be able to purchase the iPhone for use on the Vodafone network.
However, the company did not disclose the price of iPhone. Business Standard had on April 16, 2008 reported that the price would range between Rs 27,200 and Rs 28,000. It is expected that Vodafone would launch iPhone by the first week of September. Apple sources in Singapore, when contacted last month, had maintained that the India launch would happen in 2008, but did not disclose the exact date.
The Cupertino, California-based Apple said that initially it will launch the 8 GB version of the much-hyped touchscreen device — which combines Wi-Fi capabilities with a powerful email client, TV feeds, online music store and map-based location guide.
Based on buyer response, it will stagger the launch of the 16 GB version in the middle of 2009. Initial sales target for the iPhone in India or unit numbers at the time of launch are not yet available, with Apple wary of grey market sales in India.
"The carrier deal for India is being worked out with Vodafone," said an Apple source, adding: "Vodafone could also become the carrier for the Australian market, once iPhone is launched there, though more than one carrier is likely for Australia."
Telecom major Vodafone will offer the much awaited iPhone in India. The firm has signed an agreement with Apple to sell the iPhone in 10 of its markets around the globe.
Later this year, Vodafone customers in India, Australia, the Czech Republic, Egypt, Greece, Italy, Portugal, New Zealand, South Africa and Turkey will be able to purchase the iPhone for use on the Vodafone network.
However, the company did not disclose the price of iPhone. Business Standard had on April 16, 2008 reported that the price would range between Rs 27,200 and Rs 28,000. It is expected that Vodafone would launch iPhone by the first week of September. Apple sources in Singapore, when contacted last month, had maintained that the India launch would happen in 2008, but did not disclose the exact date.
The Cupertino, California-based Apple said that initially it will launch the 8 GB version of the much-hyped touchscreen device — which combines Wi-Fi capabilities with a powerful email client, TV feeds, online music store and map-based location guide.
Based on buyer response, it will stagger the launch of the 16 GB version in the middle of 2009. Initial sales target for the iPhone in India or unit numbers at the time of launch are not yet available, with Apple wary of grey market sales in India.
"The carrier deal for India is being worked out with Vodafone," said an Apple source, adding: "Vodafone could also become the carrier for the Australian market, once iPhone is launched there, though more than one carrier is likely for Australia."
Tuesday, May 6, 2008
Reliance Power to quote cum-bonus upto May 29th 2008
Reliance Power clarifies eligibiltiy criterion for shareholders to recieve Bonus Share.
Reliance Power to quote cum-bonus upto May 29th 2008.
Book Closure from June 3- June 5th 2008.
Source: BSE - Reliance Power Ltd has informed BSE regarding a Media Release dated May 05, 2008 titled "Reliance Power clarifies eligibility criterion for Shareholders to receive Bonus Shares". Press Release : "Reliance Power Ltd, on May 05, 2008, clarified and reiterated the eligibility criterion for shareholders entitled to receive the Bonus shares to be issued by the Company. Reliance Power, the company with the worlds largest family of shareholders of 4.2 million, has made this announcement in response to several queries from investors and market participants, seeking clarification on the eligibility of shareholders for the purpose of issue of bonus shares. All shareholders of the Company's records hold shares as at the end of business hours on June 02, 2008, irrespective of whether such shares were subscribed by the shareholders in the Company's Initial Public Offering (IPO) or such shares were purchased from the secondary market or otherwise after the IPO, shall be eligible to receive the bonus Shares. As approved by the shareholders of the Company, Reliance Power will issue Bonus shares in the ratio of three new equity shares of Rs 10 each for every five existing equity shares of Rs 10 each held, to the public shareholders of the Company. On April 25, 2008, the Company had intimated, the period of book closure being June 03, 2008 to June 05, 2008 for the purpose of determining the eligibility of Shareholders to receive bonus shares of the Company as per the Company's records as at the end of business hours on June 02, 2008." Date: 2008-05-06
Reliance Power to quote cum-bonus upto May 29th 2008.
Book Closure from June 3- June 5th 2008.
Source: BSE - Reliance Power Ltd has informed BSE regarding a Media Release dated May 05, 2008 titled "Reliance Power clarifies eligibility criterion for Shareholders to receive Bonus Shares". Press Release : "Reliance Power Ltd, on May 05, 2008, clarified and reiterated the eligibility criterion for shareholders entitled to receive the Bonus shares to be issued by the Company. Reliance Power, the company with the worlds largest family of shareholders of 4.2 million, has made this announcement in response to several queries from investors and market participants, seeking clarification on the eligibility of shareholders for the purpose of issue of bonus shares. All shareholders of the Company's records hold shares as at the end of business hours on June 02, 2008, irrespective of whether such shares were subscribed by the shareholders in the Company's Initial Public Offering (IPO) or such shares were purchased from the secondary market or otherwise after the IPO, shall be eligible to receive the bonus Shares. As approved by the shareholders of the Company, Reliance Power will issue Bonus shares in the ratio of three new equity shares of Rs 10 each for every five existing equity shares of Rs 10 each held, to the public shareholders of the Company. On April 25, 2008, the Company had intimated, the period of book closure being June 03, 2008 to June 05, 2008 for the purpose of determining the eligibility of Shareholders to receive bonus shares of the Company as per the Company's records as at the end of business hours on June 02, 2008." Date: 2008-05-06
Thursday, April 24, 2008
Don't enter in IT: Bagga
2008-04-24 18:22:11 Source : CNBC-TV18
Ajay Bagga of Lotus Asset Management is of the view that one should not enter in IT space.
Bagga told CNBC-TV18, "If you look at the regional IT stocks yesterday, Acer numbers also in Taiwan were very strong. We have seen even the US techs really giving out good numbers. But on the India story, which is largely the offshoring story, there is a lot of hope that offshoring will pickup, we have seen the NASSCOM statements. We are not that convinced. We think it is better to stay on the sidelines and not enter IT. At least give it two more quarters and get some more visibility. Right now the managements are giving a hockey stick with weak near quarters and going up in the last two quarters, a lot of it contingent on a US recovery, which we are not very convinced about. We think the real economy has to really reflect all the bad news that is going through."
Ajay Bagga of Lotus Asset Management is of the view that one should not enter in IT space.
Bagga told CNBC-TV18, "If you look at the regional IT stocks yesterday, Acer numbers also in Taiwan were very strong. We have seen even the US techs really giving out good numbers. But on the India story, which is largely the offshoring story, there is a lot of hope that offshoring will pickup, we have seen the NASSCOM statements. We are not that convinced. We think it is better to stay on the sidelines and not enter IT. At least give it two more quarters and get some more visibility. Right now the managements are giving a hockey stick with weak near quarters and going up in the last two quarters, a lot of it contingent on a US recovery, which we are not very convinced about. We think the real economy has to really reflect all the bad news that is going through."
Buy Reliance Industries, target of Rs 3344: Angel
2008-04-24 16:17:45 Source : moneycontrol.com
Angel Broking has maintained its buy rating on Reliance Industries with a target Price of Rs 3344 in its April 22, 2008 research report. "RIL reported a good performance for 4QFY2008 surpassing our expectations with Refining once again driving growth. Net Sales jumped 35.8% yoy to Rs 37,286 crore (Rs 27,448 crore) backed by higher sales from the Refining and Oil and Gas segments."
"We believe that the Exploration and Production initiative to bear fruits from 2HFY2009 onwards and is expected to be the future growth driver. RIL stock is available at 18.7x FY2010E FDEPS of Rs 139.1. We remain positive on the growth prospects of RIL and maintain a Buy on the stock with a Target Price of Rs 3344," says Angel's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Angel Broking has maintained its buy rating on Reliance Industries with a target Price of Rs 3344 in its April 22, 2008 research report. "RIL reported a good performance for 4QFY2008 surpassing our expectations with Refining once again driving growth. Net Sales jumped 35.8% yoy to Rs 37,286 crore (Rs 27,448 crore) backed by higher sales from the Refining and Oil and Gas segments."
"We believe that the Exploration and Production initiative to bear fruits from 2HFY2009 onwards and is expected to be the future growth driver. RIL stock is available at 18.7x FY2010E FDEPS of Rs 139.1. We remain positive on the growth prospects of RIL and maintain a Buy on the stock with a Target Price of Rs 3344," says Angel's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Saturday, April 19, 2008
$25-an-hour Jobs
By Mary Lorenz, CareerBuilder.com writer
If you get paid a salary, you probably don't give much thought to what you make on an hourly basis. Either the thought is too depressing ("That's all I make per hour?"), produces too much guilt ("That's how much the company spends every time I take a 'little' break to watch YouTube videos?"), or simply doesn't occur to you. That said, $25 an hour may not sound like much, until you realize that the median household salary is $46,326 according to the 2005 U.S. Census Bureau, and that breaks down to about $22.27 per hour for a 40-hour work week.
So who's making more than the average American at $25 an hour?
1. Market analyst -- $27.18/hour
Market analysts work in government agencies, consulting firms, financial institutions or marketing research firms, where they research and predict the sales potential of a particular product or service. A bachelor's degree is the minimum requirement for many jobs; however, a master's degree in a field such as business administration, marketing, statistics or communications will provide more opportunities.
Average annual salary: $56,541*
2. Chemist -- $25.16/hour
Chemists search for and use knowledge about chemicals to discover and develop new and improved products, processes to save energy and reduce pollution, and advances in fields like medicine and agriculture. A bachelor's degree in chemistry or a related discipline is the minimum educational requirement; however, many research jobs require a master's degree or doctorate.
Average annual salary: $52,333
3. Civil engineer -- $25.29/hour
Civil engineers plan, design and oversee engineering for building projects like airports, bridges, buildings and irrigation systems. They often need a degree in civil engineering or certification as a registered civil engineer.
Average annual salary: $52,605
4. Social worker -- $25.06/hour
Social workers work for places like community centers, hospitals and penal institutions, where they develop programs to help individuals and groups enhance their personal relationships and social development. Social workers receive accreditation through a four-year college degree program in social work and on-the-job experience.
Average annual salary: $52,119
5. Human resources generalist -- $26.90/hour
Human resources generalists work to improve working conditions within an establishment by identifying, evaluating and resolving problems in employee relations and work performance. A combination of directly related training and experience is typically required for carrying out the responsibilities for this job.
Average annual salary: $55,959
6. Architect -- $26.41/hour
Architects apply their knowledge of design to plan and supervise the construction of building projects according to their clients' needs and financial resources. Architects need a degree from an approved school of architecture.
Average annual salary: $55,060
7. Speech pathologist -- $25.05/hour
Speech pathologists specialize in the diagnosis and treatment of speech and language disorders and study the science of human communication. Practice requires a four-year degree in the field of health sciences.
Average annual salary: $52,105
8. Budget analyst -- $26.71/hour
Budget analysts review financial plans and help institutions prepare budgets, improve efficiency and lower costs. Budget analysts typically have at least a bachelor's degree in accounting, finance, business, public administration, economics, statistics, political science or sociology.
Average annual salary: $55,579
9. Detective -- $27.02/hour
Detectives carry out investigations to prevent crimes or solve criminal cases. Detectives are appointed based on their eligibility under civil service regulations, their performance in competitive written exams and their previous education and experience.
Average annual salary: $56,197
10. Physical therapist -- $25.68/hour
Physical therapists plan and administer medically prescribed treatment for patients suffering from injuries or certain diseases to restore function, relieve pain and prevent disability. A combination of training and experience is typically required to practice, as well as compliance with state licensing requirements.
Average annual salary: $53,410
If you get paid a salary, you probably don't give much thought to what you make on an hourly basis. Either the thought is too depressing ("That's all I make per hour?"), produces too much guilt ("That's how much the company spends every time I take a 'little' break to watch YouTube videos?"), or simply doesn't occur to you. That said, $25 an hour may not sound like much, until you realize that the median household salary is $46,326 according to the 2005 U.S. Census Bureau, and that breaks down to about $22.27 per hour for a 40-hour work week.
So who's making more than the average American at $25 an hour?
1. Market analyst -- $27.18/hour
Market analysts work in government agencies, consulting firms, financial institutions or marketing research firms, where they research and predict the sales potential of a particular product or service. A bachelor's degree is the minimum requirement for many jobs; however, a master's degree in a field such as business administration, marketing, statistics or communications will provide more opportunities.
Average annual salary: $56,541*
2. Chemist -- $25.16/hour
Chemists search for and use knowledge about chemicals to discover and develop new and improved products, processes to save energy and reduce pollution, and advances in fields like medicine and agriculture. A bachelor's degree in chemistry or a related discipline is the minimum educational requirement; however, many research jobs require a master's degree or doctorate.
Average annual salary: $52,333
3. Civil engineer -- $25.29/hour
Civil engineers plan, design and oversee engineering for building projects like airports, bridges, buildings and irrigation systems. They often need a degree in civil engineering or certification as a registered civil engineer.
Average annual salary: $52,605
4. Social worker -- $25.06/hour
Social workers work for places like community centers, hospitals and penal institutions, where they develop programs to help individuals and groups enhance their personal relationships and social development. Social workers receive accreditation through a four-year college degree program in social work and on-the-job experience.
Average annual salary: $52,119
5. Human resources generalist -- $26.90/hour
Human resources generalists work to improve working conditions within an establishment by identifying, evaluating and resolving problems in employee relations and work performance. A combination of directly related training and experience is typically required for carrying out the responsibilities for this job.
Average annual salary: $55,959
6. Architect -- $26.41/hour
Architects apply their knowledge of design to plan and supervise the construction of building projects according to their clients' needs and financial resources. Architects need a degree from an approved school of architecture.
Average annual salary: $55,060
7. Speech pathologist -- $25.05/hour
Speech pathologists specialize in the diagnosis and treatment of speech and language disorders and study the science of human communication. Practice requires a four-year degree in the field of health sciences.
Average annual salary: $52,105
8. Budget analyst -- $26.71/hour
Budget analysts review financial plans and help institutions prepare budgets, improve efficiency and lower costs. Budget analysts typically have at least a bachelor's degree in accounting, finance, business, public administration, economics, statistics, political science or sociology.
Average annual salary: $55,579
9. Detective -- $27.02/hour
Detectives carry out investigations to prevent crimes or solve criminal cases. Detectives are appointed based on their eligibility under civil service regulations, their performance in competitive written exams and their previous education and experience.
Average annual salary: $56,197
10. Physical therapist -- $25.68/hour
Physical therapists plan and administer medically prescribed treatment for patients suffering from injuries or certain diseases to restore function, relieve pain and prevent disability. A combination of training and experience is typically required to practice, as well as compliance with state licensing requirements.
Average annual salary: $53,410
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