Collecting Gemstones

April 23, 2011 3 Comments

Collecting gemstones is a fantastic hobby.Observing the play of light in gems and taking in their myrid hues is really very soothing.It is astonishing just how beautiful some of nature’s creations can be.Gem collecting is a hobby almost anyone can indulge in for all gemstones are not expensive.In fact many semi-precious stones cost just a few rupees.

Gemstones selected carefully and bought at the source at wholesale prices and held passively for a couple of decades can be reasonably good investments. They definitely keep up with inflation.

Gemstones are collected for their beauty.So taking your time to select the most beautiful stones is essential.Also it’s important to read up on the different ways in which natural gemstones are treated.Read up on whether treatments affect their desirability for other collectors.By paying a little attention to other people’s preferences while still buying gemstones you find beautiful will ensure a greater liquidity in future.Avoid paying retail rates unless the stone is extraordinary and even then bargain.Otherwise you are unlikely to ever recover the money you sink into your collection.The average jeweler will sell you a stone for two or three times what he paid for it wholesale and he’ll buy a stone from you for half of wholesale.

If collecting loose gemstones is not so interesting maybe you can buy gemstones on wholesale and have them fashioned into jewellery? This is another way of investing in gemstones.If you can handle the cost and quality control issues you can acquire beautiful jewellery at a fraction of retail prices. Read more of this post

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Economic Life,Sinking Funds,Amortization and RDs

April 22, 2011 6 Comments

Having an abundance of material resources and never having to hustle round in the last-minute to find the funds to do what we want to do is a good indicator of wealth.

I first came across the concepts of economic life,sinking fund and amortization as an engineering student.Adapted to our personal finances and business these concepts help us to always have enough money at the right time.

Economic life , a.k.a useful life is the period of actual usefulness of an asset.Beyond this period it is cheaper to replace or scrap the asset than to continue maintaining it.

A sinking fund is a reserve created by periodically setting aside certain sums in an account to replace an asset in future or to repay a liability.

Amortization refers to spreading an asset’s replacement cost over it’s economic/useful life. Read more of this post

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What To Do If There Is No Will?

April 14, 2011 20 Comments

I came across this in today’s Economic Times.It is a good article on what legal heirs need to do when a person dies intestate in India.

If there’s no will, there’s still a way

Sakina Babwani

The death of a loved one is the most dreaded thing that can happen to any family. It can get even more traumatic when the family realises that the deceased has not left a will behind. In such a situation, the family is usually left running from pillar to post, trying to gain access to the property which, in many cases, could be the only saviour from doom.

However, according to experts, the family can still get its due even in the absence of a will, provided it can get hold of a few documents. “A succession certificate and a copy of the death certificate should solve at least 95-96 % of your problem,” says Sivaramakrishnan, head of legacy planning, Altamount Capital Management . Read more of this post

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Legacy Drawer

April 13, 2011 1 Comment

Dave Ramsey talks of the Legacy Drawer.It’s a drawer that houses all of the important information your family needs in case something happens to you.It might be the last gift you will give your family, so it’s worthwhile making it a good one.

The drawer should be somewhere in your home and contain everything your spouse or family needs to know if you aren’t around—anything that has to do with your financial life should be in that drawer. You must organize it in a way that anyone can find a specific document in 30 seconds. All files should be clearly marked, in order, and easy for a grieving family member to find. There’s no need to go into extreme detail when creating your Legacy Drawer. Simply include the appropriate documents in an easy-to-understand format, and you’re good to go!

Here is a list of things your Legacy Drawer should contain :- Read more of this post

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Dealing with Savers and Spenders

April 12, 2011 5 Comments

I found the following post here: http://www.misformoney.net/2009/04/opposites-attract-when-saver-marries.html . I found the advice pretty sage.It’s basically for couples to help them deal with different money habits but I don’t see why the tips can’t be used with the friends,colleagues and business associates we need to work with.

Opposites Attract – When a Saver Marries a Spender

Let’s be honest, it is common for couples to fight about money. It is also common to have two financial opposites in the relationship. This pairing provides special challenges, but there are many couples who make it work. It all starts with awareness, first about yourself and second about your partner. Read more of this post