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Designing Your Retirement


wealthymattersI think it a pity that so many Indians are so worried about retirement Link. For a few years now, I could have simply decided to quit all work and live off the income from my assets . It’s a different matter that I choose to work . I find personally meaningful work, one of the biggest sources of pleasure in my life.

Perhaps my approach of planning and providing for retirement will help many more people quit worrying about  it. So here it is :

1.First ask yourself if you wish to ever fully retire. When ?

2.Then ask yourself where you wish to live upon retirement ? Or would you really prefer to live a gypsy’s existence, going wherever your fancy takes you.

3.What are the plans, wishes and expectations of the rest of your family ,even as you retire ?What do you think of these claims ?How would accommodating their needs modify your plans? Read more of this post

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Demonetization And Inflation


“When M1 enters the banking system and bumps up M3,that will, ceteris paribus, give an upward thrust to inflation .”

The Yen Carry Trade


wealthymattersA carry trade is a strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate. A trader using this strategy attempts to capture the difference between the rates, which can often be substantial, depending on the amount of leverage used.

Here’s an example of a “yen carry trade”: a trader borrows 1 million Japanese yen from a Japanese bank, converts the funds into U.S. dollars and buys a bond for the equivalent amount. Let’s assume that the bond pays 4.5% and the Japanese interest rate is set at 0%. The trader stands to make a profit of 4.5% as long as the exchange rate between the countries does not change. Many professional traders use this trade because the gains can become very large when leverage is taken into consideration. If the trader in our example uses a common leverage factor of 10:1, then he can stand to make a profit of 45%.Big outfits carry leverages of 100-300% Read more of this post

Jitters About Jitters


Read between the lines, especially on interest rates.

Not sure I agree with him on inflation. The labour component of many goods and service combos means higher prices(inflation),at least at a level that the RBI is missing. For example, check the prices that are trending upwards on street food. The likes of Vada Pav and Chinese Bhel are not my regular dinner, but is so for much of the labouring classes of Mumbai. One step above, at the cheapest eateries of the Irani and Udupi variety, the increase in prices is steeper and/or quantities are smaller or formerly free side-dishes are now absent. Check the substitution of urid dal with other cereals, coconut with besan and the emerging story is different. People at the margins now have clothes and shoes, maybe even mobile phones, but not everyone is able to afford a satisfying and nutritious meal. I’m struck by the similarity with a lot of the domestic cost cutting content on the internet originating from the US and Russia.

Thinking that the RBI needs some real agriculture experience.

Clues In Currency Exchange Rates


wealthymattersFor a lot of investors who delve into the forex market, one of the most appealing factors is simplicity. In most cases, you can start out in forex through opening a mini account with your broker, allowing you to trade smaller amounts and thus risk less as you get familiar with the market. Additionally, following currency exchange rates can be a slightly less stressful process than dealing in stocks because in some ways exchange rates tend to be less volatile.

But to deal successfully in forex, it’s necessary to learn the different hints and clues to watch for in measuring exchange rate trends. Along those lines, here are some things to keep in mind. Read more of this post

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