When to make your Will?

This is a most difficult topic for most Indian households and oft ignored. I yesterday went to a friend’s place and he had called up a LIC agent to his home. I distinctly recollect that they talked in a very hush’ed tone, because he was discussing about how much money his family will get post his death. It was obvious that discussing death and money together is still taboo in Indian society and hence the same goes with making a will.

I think most people know what is will and it’s importance but still probably I reckon that 90% of Indian household never discuss this topic. I believe majority of Indians die without making any will, causing major dispute among legal heirs post any death.

It is so simple to make a will in India and so important especially with legal recourse taking many years that everyone should definitely have gone through this process. It is important to note that  assigning nominations alone does not help and a will is very important.

So when should a person make a will?

The question is never answered appropriately. As per the Indian Law, any person above 21 years of age can make a legally valid will. But the key point before deciding on making a will is to think about :

1. A sudden death is more probable in today’s fast paced life. So don’t think that you will not die till 80 years of age.
2. If you die intestate (without making will), your legal heirs are not only your spouse/children. Check out this Hindu Succession Act and you would know who all can be your legal heirs.
3. It is foolish to think that your legal heirs love each other and will never fight over your property. This has been found untrue in so many cases.
4. There is no threshold asset value, only above which legal heirs will consider it substantial for fighting.
5. The distribution of assets are done equally by the court of law without considering who is more needy amongst your legal heirs.

I would recommend that you should start thinking of making a will as soon as you get married. You can start with making a will on a simple white paper and asking your friends to act as witnesses. As you grow financially and acquire assets, you could add codicils to your will. If the number of codicils are more than five, then re-write a new will. You can think of registering your will once your assets have reached a substantial amount (you can decide what is substantial).  Where there is a WILL there is a way!!

 

Got Wheels? 8 Tips for Finding an Affordable Car

(This is a guest article by Ryan Embly*)

Graduates fresh out of college often struggle to stay afloat in a sea of college debt and student loans. Unfortunately, the bills never seem to end. Many college students live on campus and are able to get around without needing a car, but transportation becomes much more difficult once you have graduated and are looking for a job in a wide variety of locations. A car is something that can be very helpful for some recent grads or an absolute necessity for others. Cars can be expensive, but if you are careful and thoughtful there are lots of ways to save money and get a great deal. Here are some tips on how recent grads can find an affordable car and stay away from expensive pitfalls along the way.

1. Before you even start looking at cars, take a look at your budget. It’s easier to shop for a car if you already know ahead of time how much you are willing to spend. When you go to a car dealership, do not let them show you any cars out of your budget or the car lust will set in. Salespeople constantly try to upsell by offering unnecessary add ons like leather seats and satellite radio or by attempting to persuade you to upgrade to a more expensive and fancier model, but if you are committed to your budget you will be able to avoid these expensive traps.

2. Do your research. There are so many things you need to know about a car before deciding on a particular model. For example, does your dream car model have a nasty history of breaking down and requiring repeated maintenance? Does your car use up gas quickly or is it a fuel efficient dream come true? Is the car known for having a high safety rating? Search online and in consumer report magazines to find this information. If you aren’t careful with your car selection, you may end up paying what at first appears to be a great and affordable price - but in the end you find out that you get what you pay for after you’ve taken the car into the shop for the fifth time in as many months.

3. Leasing a car is not a good option for recent grads. At first, leasing looks attractive because the monthly payments may be lower, but in the long run all you are doing is pouring money into something that you can never stop paying for. Most cars will last for several years, long after you have finished off paying for it, making it a better long term investment.

4. Do not buy a new car fresh off the lot because new cars tend to rapidly depreciate in value. A one to two year old used car, on the other hand, has already depreciated and will be available for a much lower price. Just because a car isn’t the latest model doesn’t mean it isn’t any good – although car companies like to brag about their new and improved models, sometimes there isn’t much of a difference between last year’s model and this year’s model.

5. Check out different dealerships before settling on one. Although some dealerships may be selling the exact same cars, certain dealerships may have special offers that make it more worthwhile to buy a car for them. For example, a dealership may have a special discount for college grads or offer a particularly sweet interest rate.

6. Also make sure to shop around for good financing – don’t just take the first offer you get. If you are not sure what a good financing package looks like, go to a credit union or bank, tell them what car you want to buy and ask them what they’re willing to offer. Then take this offer back to the dealerships and start haggling. Do not be afraid to bargain – this is a common practice when buying cars.

7. Before you finish bargaining and sign the contract, make sure to read the small print to see exactly what you are agreeing to. Always ask questions if there is something in your contract you don’t understand. If you don’t take these precautions, your once affordable car may turn out to be more expensive than you thought because there was a pricey little clause hidden in the middle of legalese on the second page. Most dealerships are honest, but once in a while someone always tries to pull a fast one in the small print, and once you’ve signed, you’re screwed.

8. Even if you are able to purchase a car for an affordable price, don’t forget about obtaining equally affordable insurance. Shop for insurance the same way you shopped for dealerships and financing – call around and see who has the best price. Insurance prices depend on a variety of factors such as the model and year of the car you’ve purchased, your prior history of accidents and your grades. Some cars cost more to insure because they have a history of maintenance problems or are more likely to be stolen than other cars, so make sure to check up on this when doing preliminary car buying research. The best investment you can make for buying a car is to be a good driver and either have no accidents or very minor ones on your record. Also, keeping your grades up is really helpful since many insurance companies have good student discounts for academically successful individuals.

*About the author: This post was provided by Ryan Embly from the website Car Rental Express – a provider of cheap car rentals in North America and Europe.


*Image Credit: Photograph by jeff_golden [via Flickr Creative Commons]

10 Tips for a Great Car Pooling Experience

(This is a guest article*)

If you have a long daily commute, one of the best way to keep cost down is to car pool. If the other person has a car too, you can take turns on who drives. If the other person does not have a car,you can work out an arrangement to be reimbursed for some of the cost you incur. When it is done right, car pooling can save you a bunch of money. Here are some tips to make your car pooling experience a great one.

People, people, people

Spending time in a car with someone you don’t like can be tedious, long-winded and aggravating – so chose your car pooling friend carefully. It may seem harsh but starting your day off with an irritant can be detrimental to your working day, which will ultimately reduce your chances of working to your potential.

Switch your seat

Commuting when you work a long distance from home can be painfully expensive and mundane. So when car-pooling, make sure that if the journey is a long one, allow the passenger to drive half the distance. This will ensure that you are both seen as equals during the commute, and even better you get to put your feet up for a bit and relax – just make sure the passenger is insured on your car first!

Adapt

Car pooling can be a great way to save money on expensive gas bills, but without the right strategic measures in the place, it could end in disaster. If your fellow car pooling friend lives close, it would be beneficial to ask if they could walk to you before you set off – this will save on gas, money and you having to pick them up. Equally, if they live relatively far away, make sure you both agree a suitable meeting point that is convenient for both parties – happiness is the key to great car pooling!

Money, money, money, money, MONAY!

The whole point of car pooling is saving money. So, make sure that before any journey or car pooling begins, you set out strict guidelines as to how much the journey will cost. Informing your cohabiter of the charge that they will incur will help achieve a mutual respect and thus cancel out any potential arguments regarding money. You need to consider many factors including; mileage, insurance, tax, tire wear and most importantly fuel.

Choose your route

If you look at modern day satellite navigation or GPS systems, you will notice that they offer two or three routes for each journey. One route will take a little bit longer but may offer a more economical run – it is important to look at what route is best for you and your passenger. One route may get you to your destination ten minutes faster but if it costs you a few extra dollars in tolls and gas, is it worth it?

Rules and regulations

We are all creatures of habits, but when car pooling, these habits are best to be spoken about before the journey. Is your terrible music going to be played? Will you allow smoking in your car? Your passenger might just assume they can light up and smoke in your new car – so we would advise to set out some ground rules early on in the relationship. We would advise the radio as background noise, just in case there are any awkward silent moments – everyone has them!

Drive safely

A commute isn’t a NASCAR qualifying lap, so just take those corners gently and ease off the throttle. Car pooling should be an enjoyable process for all parties, and nobody wants to view your ‘driving talents’ on the freeway. Just relax and drive in a safe and controlled manner – this will ensure your passenger is happy and both of you arrive at your destination in one piece.

Be pleasant

This one might be a bit obvious, but you would be surprised by how many people don’t posses the social skills to communicate with someone they don’t know that well. If you’re going to be spending a considerable amount of time with this person, you need to be as pleasant as you can be – or those hourly trips to work and back could become very awkward indeed. It doesn’t take much to smile, and if you’re lucky your passenger will smile back – hopefully.

Check your particulars

It is important to know who you can and can’t trust. Before you start car pooling with someone, you need to make sure that you both have the correct identification and qualifications. Simple aspects like driving licenses and insurance documents will ensure you have complete faith in your right hand man/woman.

Contact details

This is an important one. Incase of an accident, it is a good idea to note down both parties telephone numbers for their next of kin/someone who they can contact. There would be nothing worse than not being able to contact their loved ones if you were involved in a crash. Preparation is the key to happy car pooling.


*About the author: This is a guest blog post on behalf of Carfinance247 – specialists in helping people find a low cost car finance deal.

*Image Credit: Photograph by Mike Licht, NotionsCapital.com [via Flickr Creative Commons]

FAQs – What Does Teaching at an Online College Entail?

(This is a guest article by Carrie Oakley*. If you are a Ph.D. student looking for money making ideas, and aspiring to pursue an academic career in the future, you may want to consider teaching at an online college now. It will provide you some much needed income, invaluable experience and a definite edge compared to the stiff competition you will face when you start your application process.)

It’s not a job that comes to mind immediately or one that you dream of when you join college, but it’s fulfilling and satisfactory in many aspects; teaching at an online college is an option you could consider if you’re a college professor or aspiring to become one. The demand for skilled and dedicated teachers is rising by the day, so if you think you fit the bill and would enjoy teaching online, here are answers to a few basic questions you’re likely to have about the job:

What qualifications do you need to teach college courses online?

Most universities prefer their own staff to handle their online courses; however, it is possible to find work as an adjunct professor if you hold a graduate degree or a doctorate in the subject you intend to teach, or if you hold any graduate degree and have completed 18 graduate level credits in the subject you want to teach. Many who aspire to teach online pursue the online graduate certificate in Management of E-Learning. This is offered by various universities and can be completed in as little as six months. When you complete this course, you’re not only eligible to teach online, you can also apply for positions as e-learning course designers.

Do you need to have prior experience?

It depends on the college you apply to and the course you want to teach – some may prefer experienced professors while others may be willing to try you out if you’re impressive or if they’re short of staff. Also, if the course is simple and meant to impart basic knowledge, you would be welcome to teach it even without experience.

How do you apply to become an online college professor?

Find out which online colleges (and regular ones that offer online courses) are hiring and send in your resume to the concerned department. You could also find online adjunct groups and sign up to meet and interact with others in this line of work. This way, you stay connected to all that’s happening in the world of online teaching and you know of any job vacancies as soon as they’re posted.

How much does an online college professor normally make?

Some colleges pay the same per credit hour as they do for those who teach traditional courses while others may pay according to your skill and experience. If you’re teaching online at a community or local college, the pay may not be as much as you would get at a bigger university. Online professors do take on other jobs like private tuition in order to make enough money.

How many hours of work does the job entail?

The number of hours varies according to the college, the course and the teacher. Some colleges set a number of hours for each credit; however, an online teacher may have to spend time responding to student queries and questions on interactive discussion threads.

Is it possible to work from home as an online college professor?

Yes, you can work from any location if you teach online. You don’t have to be on campus or even at an office when you handle online classes.

Are the work hours flexible?

As with online learning, online teaching too has flexible schedules. However, you do have to be ready to respond to student queries and doubts and take an active part in any discussion that happens online. So while you may not have preset work hours, you do have to stay connected in order to send out quick and accurate responses. Schedules may have to be set for interactive lessons and to send out study material to students.

What kind of software do you have to be familiar with?

You must be technology savvy if you want to teach online; a basic knowledge of the Internet and how instant chat and email can be used to interact with students is a plus; and while you don’t need to be familiar with any special kind of software, it would help if you spent some time familiarizing yourself with the medium used to impart lessons and send out study material before you decide to become an online professor.

Is it possible to work part-time as an online college professor?

Yes, it is possible to work part-time as an online college professor. You could take on online teaching gigs to supplement your regular job or just as a means to spend your time fruitfully.

How does online teaching help further your career?

If you’re new to the profession of teaching, online courses help you gain experience in your field. Besides this, you also become familiar and comfortable with technology and know how to use it effectively and efficiently. You get to interact with students from a wide cross-section of society and this broadens your horizons and boosts your knowledge; and your ability is challenged and tested by inquisitive and bright students who make your online classes more interesting.


*About the author: This guest post is contributed by Carrie Oakley, who writes on the topic of online colleges. Carrie welcomes your comments at her email id: carrie.oakley1983(AT)gmail(DOT)com.

*Image Credit: Photograph by Swansea Photographer [via Flickr Creative Commons]

What is Finance Degree

What Is a Finance Degree ?

Finance degree is an academic degree awarded to students who have completed a finance-related degree program at a college, university, or business school.

Types of Finance Degrees

There are four basic types of finance degrees that can be earned from a college, university, or business school:

• Associate Degree
• Bachelor Degree
• Master's Degree
• Doctorate Degree

An associate degree with a focus on finance can usually be earned in two years or less. A bachelor degree in finance can usually be earned in three to four years. A master's degree in finance can be earned in one to two years or less after completing a bachelor's program. Doctorate programs with a focus on finance take approximately four to six years to complete and require at least a bachelor's degree--though a master's degree is a more common requirement.

A bachelor degree is required for most positions in the finance field. However, there are some cases in which an associate degree would be sufficient. For example, an individual with a finance degree can often get an entry-level position at many banks and accounting firms. A masters degree or MBA in finance often leads to the best job opportunities. A doctorate degree in finance will qualify an individual to work as a faculty member at a college, university, or business school.

Financial Regulation

Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system. This may be handled by either a government or non-government organization.

The specific aims of financial regulators are usually:

• To enforce applicable laws
• To prosecute cases of market misconduct, such as insider trading
• To license providers of financial services
• To protect clients, and investigate complaints
• To maintain confidence in the financial system

Unique Jurisdictions

In most cases, financial regulatory authorities regulate all financial activities. But in some cases, there are specific authorities to regulate each sector of the finance industry, mainly banking, securities, insurance and pensions markets, but in some cases also commodities, futures, forwards, etc. For example, in Australia, the Australian Prudential Regulation Authority (APRA) supervises banks and insurers, while the Australian Securities and Investments Commission (ASIC) is responsible for enforcing financial services and corporations laws.

Sometimes more than one institution regulates and supervises the banking market, normally because, apart from regulatory authorities, central banks also regulate the banking industry. For example, in the USA banking is regulated by a lot of regulators, such as the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Office of Thrift Supervision.

In addition, there are also associations of financial regulatory authorities. In the EU, there are the Committee of European Securities Regulators (CESR), the Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS), which are Level-3 committees of the European Union in the Lamfalussy process. And, at a world level, we have the International Organization of Securities Commissions (IOSCO), the International Association of Insurance Supervisors, the Basel Committee on Banking Supervision, the Joint Forum, and the Financial Stability Board.

The structure of financial regulation has changed significantly in the past two decades, as the legal and geographic boundaries between markets in banking, securities, and insurance have become increasingly "blurred" and globalized.

From :   Wikipedia, the free encyclopedia
Source: http://en.wikipedia.org/wiki/Financial_regulation
For:        public Information, non profitable

Real Estate - Real Returns

              

Investing in real estate is crucial to Indians, especially owning the first house/apartment. In India, it is common to call it as investment but not to think of it as investment. Note this difference, since most people who “invests” in real-estate do not think about real return on investment (ROI) on real-estate investments.

I would be really wary of putting my hard-earned money in buying a house, unless I get a decent ROI especially when it needs so much efforts and also it may induce emotional trauma.

So what exactly is a ROI for a house and how to calculate it for real-estate investment?

If you are buying a house for purely emotional reason and if this will provide you satisfaction, then calculating ROI is useless. So if you are happy being a owner of a house, then you wouldn’t think of “returns” and ROI is immaterial. But, it is important to distinguish between owning a house for “satisfaction/being happy” Vs “showing-off/rat-race competition”.

But if you are the one who thinks buying a house will make you rich or it will make you financially stable, then you seriously need to calculate a real ROI on the investment.

Almost everyone must have heard about their lucky friends who bought an apartment for Rs 15 Lakhs almost a decade ago which is now quoting at Rs 50 Lakhs. This sounds like an amazing deal, isn’t it? Well not actually, since the CAGR return is just 12.79% which is not a great deal. So if the same 15 Lakhs would have been invested in BSE Sensex stocks, it would have ballooned to Rs 65 Lakhs, definitely better than real-estate.

Note that this is a simplistic view not considering multiple factors like efforts required for investment, overhead costs and risk factors. If these factors are taken into consideration real-estate investment will not sound attractive anymore. The graph below indicates that CAGR return of various asset class over past 10 year period. As indicated, stocks and gold out-perform the real-estate easily.

Some argue the virtue of real-estate investment by giving the leveraging logic. The idea is that if you buy a house, you would just give a 15-20% of cost as a down-payment (e.g. 2Lakh) and then see the real-estate price going up (say Rs 50 Lakh) and calculating the CAGR to be much higher (~45%). This is foolishness and simply twisting the truth to show-case an amazing returns. It is a fact that borrowing money is always costly (how would banks otherwise make money) and more risky. It is important to remember that the loan amount is owned by you, along with the interest to be paid to the bank. Also any decrease in the price of your house will in-fact be a huge loss rather than any gain at all. 

Let us compare some points while investing in Stocks Vs Real-Estate.

1) Performance: We already saw that the returns from stock are higher compared to Real-Estate investments.

2) Leverage Advantage: We discussed the leverage logic in real-estate. The same kind of leveraging can be done in Stocks as well.

3) Overhead Costs: The real-estate overhead cost is huge (10-15%) which consists of Stamp Duty, Brokerage Charges, Loan Processing Fees, Legal Fees, Utility Connection charges etc etc. The costs for buying stocks is much less.

4) Taxes: Stocks score over here since you just have the long-term gain (if held over more than a year) but in case of real-estate one has to pay property tax apart from long-term gain tax on selling the house.

5) Transparency: The biggest advantage while buying shares is that you can use the web to determine the fundamentals of stock easily. The same doesn’t apply to real-estate investment. It is so difficult to determine a handsome bargain with so many variables that investing is more dependent on luck than a logical analysis.

6) Efforts: The real-estate investments really gets killed in this parameter. There is not only enormous efforts to find a good house, but once you own it, a lot of effort is needed to keep it in good condition.

7) Diversification: If you invest in stocks, it is so easy to put your money spread across industries/companies/funds to give it protection. This can not be applied to real-estate investment at all.

I feel that the real-estate prices in India are not at all justified and the hype is driven by the artificial demand. Also most people can afford to get into this thanks to easy loans from banks. I hope the bubble does burst early enough to save lot of people who are not in the trap yet.