Food Co-Ops: Separating Facts From Fiction


wealthymattersFood co-ops provide various benefits to the community. It creates a place for people to obtain fresh and healthy produce and products created by local businesses. Food co-ops give individuals and family a better alternative to big corporations, and allow you to support independent small businesses in your community. Despite all these benefits, food co-ops, unfortunately, have a cloud of misconceptions surrounding them. These inaccuracies can turn away potential co-op shoppers. Knowing the difference between the facts and myths of food co-ops will help you make an informed decision on your family’s shopping choices.

Myth #1: You must be a member in order to shop at food co-ops.
Fact: You don’t have to be a member in order to visit or shop at a food co-op. In fact, you can shop at the co-op as you would any other store. Once you see for yourself the benefits, you may be interested in finding out more about their membership.

Myth #2: Only hippies, vegetarians and the like shop at food co-ops.
Fact: Everyone, no matter what their political standing, social status or food preference, is welcome at food co-ops. Read more of this post

The Roller Coaster Life Of James Altucher


wealthymattersEver wondered what it feels like to lose a great deal of money?Here’s a first person account:

When I built my first company in the 90s I did everything smart until I did everything stupid.

We built websites for entertainment companies. Bad Boy Records, Miramax, Time Warner, HBO, Sony, Disney, Loud Records, Interscope, on and on. Oh, and Con Edison.

Then I saw that kids in junior high school were learning HTML. So I sold the business. $15mm. About a year later. I hedged and cashed out. Sold all my shares. The $15 million was now cash.

I bought an apartment for millions. I rebuilt it. Feng Shui! I bought art. I played a lot of poker. I began investing in companies. A million here. A few hundred thousand there. One IPO I put $2 million in at $20 and watched it go to $0. They made wireless devices for deaf people. Huge market. Read more of this post

Why Go Private?


wealthymattersBeing the promoter of a public company is seen as prestigious.So why do promoters sometimes opt to make their company private again?The simple answer is often the possibility of Private Gains.Public share holders and promoters often have vastly different perspectives on making money,vastly different time horizons when it comes to harvesting gains,vastly different risk perceptions and holding power.Here is an example:

In early ’13,Dell had  a total market cap of about $22 billion.  They also had about $11 billion in cash, which meant the stock market was valuing the entire business at $11 billion ($22 – 11).  The company had a price-to-earnings multiple of about 8.5.

So the situation was that, if Michael Dell and private equity investors put in $2 bilion, used the cash on the company’s books and borrowed the remaining $9 billion, they could control the entire company without the hassle of having public shareholders.

The flexibility of not having public shareholders would enable Michael to do what has needed to be done for years, and that is massively streamline the company’s manufacturing and sales forces (probably through layoffs), re-focus the core PC business, grow the enterprise and consulting businesses, and make the company generally more Lenovo-like or IBM-like. Read more of this post

Sage Advice


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Loyalty Pays


wealthymatters.comJob-hopping can increase your pay, but good old loyalty also has its perks. Stay on with your employer for five years or more, and you are entitled to gratuity when you resign, retire or are retrenched. This monetary reward to be paid by your employer in recognition of your years of service is mandated by the Payment of Gratuity Act. Most establishments employing 10 or more workers fall under the Act.

The amount you get as gratuity depends on the number of years you have served and the last drawn monthly salary. Roughly, you get half a month’s Basic and DA for every completed year of service. Here’s the formula to calculate gratuity: (Number of years of service) * (Last drawn monthly Basic and DA) *15/26. So, if you have served 30 years and draw monthly Basic and DA of Rs 20,000 when you leave the job, you get gratuity of Rs 3,46,154 calculated as (30 * 20,000 *15/26). Your employer can choose to pay you more but the maximum amount of gratuity according to the Act cannot exceed Rs 10 lakh. Amount paid above this will be in the nature of ex-gratia — something voluntary and not mandated according to law.

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