Running The Interest Rate Race


wealthymatters.comIn inflationary times fixed income instruments may not be such a great idea , especially if the interest rates are just not that high.But there is no way we can avoid these instruments.

1.We need them to add steadiness to our portfolios especially when the stock markets show volatility.

2.We need  them to  park the money we plan on using within a definite time horizon.

3.We need them again  when we have to route a steady stream of  payments into another investment and want to simultaneously avoid both the risk of a capital loss due to a short term investment in a mutual fund and the low returns of a liquid fund.

In such a situation we just need to find the highest possible interests which our funds can earn in a given time over and above the rate of inflation while simultaneously reducing the risk of capital loss. Read more of this post

Empowered Jewellery Shopping


wealthymattersIf you are a typical Indian,and have some spare cash,you probably buy gold and that too as gold jewellery.The jewellery might be for personal consumption but it is still going to have to do double duty as a safe,low-risk and liquid investment . So the jewellery is going to be bought with a sharp eye on its resale value.Purity and grammage will be important considerations.Also getting a good price will be a major consideration and there is bound to be a bit of bargaining.

Concerns about purity can be allayed by buying hallmarked jewellery. To find out the jewellers who carry BIS certified hallmarked jewellery in any city in India you can search here :Link

The price of gold follows the international rate,but there is no such thing as an all India rate.Infact there is nothing as a city-wide rate.Each shop notifies its own rate.But the All India Gems and Jewellery Trade Federation’s Trustmark rate for hallmarked gold jewellery can be used as a peg while bargaining about the price.To find out the Trustmark rate SMS GOLD RATE to 575758 or check the rate on the GJF website here :Link

In case you are making a significant purchase ,it is worthwhile getting a hallmark certificate from the jeweller. Hallmarking costs 25 INR per item,a pair of earrings being counted as 2 items.

Hope you find Great Bargains!Happy Shopping!

Indian Style Philanthropy


Conversations about charity and philanthropy often make me acutely uncomfortable.There is a bit too much sanctimony, one upmanship and pretence for my tastes.Unfortunately ever since Warren Buffet came up with his “The Giving Pledge” , philanthropy is frequently in the news and such conversations have become increasingly commonplace. I just don’t think much of using social pressure to get individuals to comply.It just offends the Libertarian in me.Moreover,I find it hard to see every act of charity I hear of as completely altruistic and having to go through the motions of pretending otherwise is a drag.Worse , I’m all too aware of my own motivations and social expectations of altruism makes giving so stressful.

For people like me ,I come across something interesting while reading last Thursday’s Economic Times newspaper.In an article reviewing the book  “Stages of Capital: Law, Culture, and Market Governance in Late Colonial India” by Ritu Birla there is a mention of different types of donations practised by traditional Jain merchants of Jaipur such as:

  • anukampa-dan, a gift given out of compassion;
  • ucit-dan, a gift given out of duty;
  • kirti-dan, a gift given to earn fame;
  • abhay-dan, a gift of fearlessness;
  • supatra-dan, a gift of religion.

This approach of accepting that donations have various motivations,and according all such donations, irrespective of motivations, legitimacy makes it so much easier to talk about charity,gifting and philanthropy.It doesn’t expect the giver to be a altruistic saint all the time.Nor does it demean the receiver since he/she helps the giver to get something of value in return.Overall it saves a lot of agony and agonizing in the giver,receiver and society at large.

Am I Wealthy ? Calculator


wealthymattersIn the book ” The Millionaire Mind” the authors Thomas J. Stanley and William D. Danko explain the concept of Prodigous Accumulators of Wealth (PAWs) and Under-Accumulators of Wealth (UAWs). For their age and income levels,the PAWs are people who have accumulated an exceptionally good amount of wealth and the UAWs are those who fail to impress on the wealth front.This is because many people with huge incomes have equally large expenses because of their lifestyle choices.To check if you are a PAW or UAW use the calculator here Link  .

Congrats if you are a PAW!

And if you are wondering just how wealthy you are in global terms? Check here: Link

Global Rich List Calculator


wealthymatters.comWealth is a somewhat relative term. And the people we compare ourselves with to decide how wealthy we are ,are often those who surround us. The world however is a much bigger place, and  knowing where we are placed in this world depending can really surprise us.

To find out where you stand worldwide on the basis of your income, use the nifty calculator here :  Link 

Of course income hardly equals wealth, there are expenses to be considered and then there is the question of what we do with our surplus income—blow it ,save it, invest it or acquire liabilities, which go to determine our wealth position. And then again, money buys different levels of access to the good things in life in different places. So enter the location of your primary residence and total up your assets in the currency you most prefer and you can work out just how wealthy you are.

Do reflect on the different figures that the income and wealth calculator throw up. They reflect your privilege that translate to head-starts and lifelong gains. Also your profligacy that reduces your advantages in life.