For Whom Wealth Matters
April 5, 2012 9 Comments
In case you ever wonder how much higher or lower FD rates are likely to go here is a table showing historical rates.Personally I consider 8%pa as a sort of cut off point and have an aversion for FDs of any length when rates are below 9%.So I try to book them for longer tenures when rates are higher and ride out the lean periods.When FDs are lean pickings the PPF is likely to be a better bet. Read more of this post
April 5, 2012 Leave a comment
I have long been interested in knowing more about the historic Rupee Dollar exchange rates and the story of the devaluation of the Indian Rupee.I previously posted some data I had gathered on the subject here:https://wealthymatters.com/2011/09/25/the-rupee-dollar-exchange-rate/ .This post contains some more data I came across today here http://www.mises.ca/posts/blog/are-weddings-in-india-really-driving-gold-prices/ :
In early controlled exchange rate regime, the rupee exchange rate hovered around Rs 4 in the 1950s, Rs 5 in the 60s, Rs 7 in the 70s, and Rs 8 in the 80s. The liberalized era of 90s was different, the rupee moved in the Rs 20s (the rupee was also partly decontrolled in early 90s) and Rs 40 in the decade of 2000. Read more of this post
April 5, 2012 1 Comment
Gold is generally believed to be a hedge against inflation.However there has been a spate of articles disputing this belief.I found this nice article here that analysis the relevant data for India http://sachasingh.blogspot.in/2010/01/is-gold-good-hedge.html . The graphs and table below are extracts from this post.
The graph below shows the movement in WPI and average prices of 10 gms gold in Mumbai from 1970-71 to 2008-09.
April 5, 2012 1 Comment
The details of this idea can be read here:http://7million7years.com/2011/05/26/the-pay-yourself-twice-wealth-strategy/
The general idea is that if we want to be seriously wealthy we need to do more than just save a small part of our incomes to be invested for the long term in various savings instruments so that we can achieve various life goals .Such a strategy will help us secure a middle class lifestyle but no more.So paying ourselves once secures us some insurance against the vagaries of life.To raise the capital to build businesses and participate in other higher risk ventures and to buy other truly passive assets we need to pay ourselves once again.
BTW the savings rate suggested so that we pay ourselves twice is over 75%. To check your savings rate why not use the calculator here:https://wealthymatters.com/2011/01/17/am-i-wealthy-calculator/ ?
April 4, 2012 Leave a comment
The table above is from http://7million7years.com/2011/05/26/the-pay-yourself-twice-wealth-strategy/. I put it up here as it is such a nice way of explaining things and keeping expectations of returns from different types of investment vehicles realistic.
wealthymatters 