Finance & Investment Fundas

Treatment for Nasal related problems

2008-09-30T06:50:00.000-07:00

If you are suffering from:

* Nasal Congestion (such as from colds or allergies)
* Chronic Sinusitis
* Recurrent sore throats and post nasal drip
* Snoring due to nasal blockage
* Ear blockage while flying or scuba diving
* Asthma with sinusitis
* Exposure to (most) allergens
* Restoring the health of your sinuses after exposure to smoke, smog or other chemicals

Consider trying pulsatile irrigation from Dr. Grossan:

"A particularly helpful strategy in the treatment and prevention of chronic sinusitis is saline washing using the Grossan Sinus Irrigator."
Patient Care Magazine/February 1997
Gary Rachelefsky, M.D.
Associate Director Allergy-Immunology U.C.L.A School of Medicine Los Angeles, CA
Raymond G. Slavin M.D.
Professor of Internal Medicine St. Louis University School of Medicine, St. Louis, Mo.
Ellen R. Wald, M.D.
Professor of Pediatrics-Otolaryngology, Children's Hospital of Pittsburgh, Pittsburgh, PA

grossan hydropulse

If you have skin allergies or sensitive skin.. or just health conscious and want to avoid toxic ingredients you should try: Organic Makeup Mineral Makeup

Natural and Allergy Free Makeup

2008-09-23T07:03:00.000-07:00

Makeup improves your appearance and adds to your personality. How about if the make up is allergy free. This can be achieved in the following manner.

Allergy free organic mineral makeup

UK and Europe
Mineral Organic Bronzers Pure Mineral Foundation
Organic Mineral Foundation Setting Powder
Blush Eye Shadows Ultra Matte Eye Shadows Lipstick Starters Brushes Samples

USA

Organic Mineral Bronzer Foundation Setting Powder Blush
Eye Shadow Ultra Matte Eye Shadow Lipstick Starters Brushes Samples

Helpful Articles about Migraines and Sinusitis

Read About Sinusitis, Sinus Irrigation, Migraines, and Allergies
Capsaicin and Migraines Headaches and Migraines Sinusitis Frequent Questions About Sinus Irrigation

What is Pulsatile Sinus Irrigation Snoring Antibiotic Dependency Allergy Prevention

For sinusitis, migraines, cluster headaches, and sinus congestion try capsaicin nasal sprays such as Sinol or Sinus Buster.

Sinol All Natural Allergy & Sinus Nasal Spray with Capsaicin Relieves sinus congestion, migraines, and headaches (cluster headaches as well) quickly. Good for sinusitis, allergies, cluster headaches, post nasal...

Best Crowdsourcing Marketplace

2008-09-20T20:12:00.000-07:00

Crowdsourcing websites are the market buzz now a days. There are quite many in the market, but only few are noteworthy. Amazon Mechanical Turk, is one of the leading crowdsourcing website. It has great website that enables computer programs to co-ordinate the use of human intelligence to perform tasks which computers are unable to do. It has got very good interface that provides for great flexibility for requesters and workers. Requesters from US can add their work and get workers from all over world to work at their individual work times.
The payment options are also too many like getting gift certificates, transfer to US bank accounts and cheque payment all across the world. They are also considering other payment options such as trasfering to the worker's local bank accounts.

Learn more about amazon mechanical turk.

Health and Cosmetics

2008-09-18T04:51:00.000-07:00

Pulsatile Sinus Irrigation is a gentle, pulsating stream to cleanse & moisturize the sinuses and massage the cilia of the nose and sinuses to their normal, healthy state.
One type of product for pulsatile irrigation to help Sinusitis is the Hydropulse, and the Sinupulse, which are another method of Nasal Douche, Nasal Rinse, Nasal Rinsing, Nasal Wash, Sinus Wash, Saline Wash, nasal irrigation.
Other benefits of pulsatile irrigation include: stop snoring, sleep apnia, blocked sinus, blocked nose, sinus cleanse
What do doctors say are the benefits of sinus irrigation? Among them are reducing nasal congestion, cleansing and ridding the sinus cavities of allergens, irritants, and contaminants, treating chronic sinusitis, treat acute bacterial rhinosinusitis, stopping snoring, stop snoring, blocked nose, and congested sinuses....
Some Examples of Organic Mineral Makeup in Europe:Mineral Bronzers Pure Mineral Foundation Organic Mineral Foundation Mineral Setting Powder Mineral Blush Mineral Eye Shadows Mineral Ultra Matte Eye Shadows Mineral Lipstick Starter Kits Vegan Brushes Mineral Makeup Samples Autumn Trends & Colours Organic Antioxidants Healthy Skin Mineral Makeup Reviews Testimonials End of Summer Sale Afterglow Cosmetics
Some Examples of Organic Mineral Makeup in the US and Canada:Autumn Trends & Colours Organic Antioxidants Healthy Skin Mineral Makeup Reviews Testimonials End of Summer Sale Afterglow Cosmetics Mineral Bronzer Mineral Foundation Mineral Setting Powder Mineral Blush Mineral Eye Shadow Mineral Ultra Matte Eye Shadow Mineral Lipstick Makeup Starter Kits Vegan Brushes Mineral Makeup Samples
The SinusHealthCenter.com is a local resource for articles and products by leading ENT specialist doctors for help with sinus related challenges such as sinus infections, migraine headaches, and chronic sinusitis.

Helpful Products Include: Sinus Irrigation Capsaicin Capsicum Pepper Nasal Spray Nasal Sprays and Solutions Natural Enzymes and Homeopathics Sinus Health Books

Articles About Sinusitis, Sinus Irrigation, Migraines, and Allergies Sinusitis Frequent Questions About Sinus Irrigation What is Pulsatile Sinus Irrigation Headaches and Migraines Snoring Antibiotic Dependency Allergy Prevention

Additional Products Include: Sinus Buster: Allergy Nasal Spray Sinus Buster: Classic Nasal Spray for Sinus and Nasal Congestion Sinus Buster: Sinus Buster: Migraine Headache Relief Sinus Buster: Natural Nasal Spray for Sinus and Nasal Congestion Sinol Migraine Relief Sinol Allergy & Sinus Relief Clear-ease Natural Enzymes for Sinus Health Breathe-ease Nasal Moisturizing Solution with Bottle Breathe-ease Nasal Moisturizing Solution Grossan Hydro Pulse Sinus System for EU and UK Dr. Hana’s Nasopure Nasal Wash System Sinupulse Sinus Irrigation System SinuCleanse Neti Pot Breathe-ease Nasal Solution with Lavage Bottle The SinuCleanse Squeeze

Chating - the most Secured, Fun filled and Easy way

2008-09-03T08:24:00.000-07:00

Chat is most addored way for connecting with people. It is the most prefered and loved mechanism to connect with the people.

Background on Safety Features on Crush or Flush:Privacy and safety are built in. Unlike traditional sites where members can hide behind multiple profiles tied to different e-mail addresses, on Crush or Flush™ you can only have one profile that is tied to your cell phone number. During the sign-up process, your cell number is used to verify that you are a real person, and there can only be one profile per number. If someone harasses you or causes a problem, we will block his number and that person will permanently disappear. No one every gets your e-mail address, real name, or cell phone number - they always remain private.Background on Crush or Flush:Crush or Flush is a fun, safe, and easy way to meet people, chat, and stay in contact with friends using your cell phone or your computer (PC or Mac). Getting started is a no-brainer. First, upload your face pic, add a description, and create some tags that describe who you are (ex. booty shaking, being awesome, or kung fu master). Get creative, express yourself. Second, let us know if you are looking for a woman, a man (or both). That’s it, you’re profile is done and you can start Crushin’ and Flushin’ people.You browse people by gender, age, location, and interest (tags). If you find someone you like ‘crush’ them. If not, ‘flush’ them. Don’t worry… they’ll never know you flushed them so no hard feelings. If you Crush someone and they Crush you back… that’s called a Mutual Crush. You’ll both get a text message letting you know that you both like each other. You can then text chat without giving up any of your personal info. Later on, if you want to exchange digits on your own, that’s your deal. Ball’s always in your court.
To know more please visit http://www.crushorflush.com/html/chat.html

Warehousing

2008-06-08T09:47:00.000-07:00

A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.
Some warehouses are completely automated, with no workers working inside. The pallets and product are moved with a system of automated conveyors and automated storage and retrieval machines coordinated by programmable logic controllers and computers running logistics automation software. These systems are often installed in refrigerated warehouses where temperatures are kept very cold to keep the product from spoiling, and also where land is expensive, as automated storage systems can use vertical space efficiently. These high-bay storage areas are often more than 10 meters high, with some over 20 meters high.
The direction and tracking of materials in the warehouse is coordinated by the WMS, or Warehouse Management System, a database driven computer program. The WMS is used by logistics personnel to improve the efficiency of the warehouse by directing putaways and to maintain accurate inventory by recording warehouse transactions.
Traditional warehousing has been declining since the last decades of the 20th century with the gradual introduction of Just In Time (JIT) techniques designed to improve the return on investment of a business by reducing in-process inventory. The JIT system promotes the delivery of product directly from the factory to the retail merchant, or from parts manufacturers directly to a large scale factory such as an automobile assembly plant, without the use of warehouses. However, with the gradual implementation of offshore outsourcing and offshoring in about the same time period, the distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably in many domains, necessitating at least one warehouse per country or per region in any typical supply chain for a given range of products.
Recent developments in marketing have also led to the development of warehouse-style retail stores with extremely high ceilings where decorative shelving is replaced by tall heavy duty industrial racks, with the items ready for sale being placed in the bottom parts of the racks and the crated or palletized and wrapped inventory items being usually placed in the top parts. In this way the same building is used both as a retail store and a warehouse.
Modern warehouses are also used at large by exporters/manufacturers as a point of developing retail outlets in a particular region or country. This concept reduces the end cost of the product to the consumer and thus enhance the production sale ratio. Warehousing is an age old concept which can be used as sharp tool by original manufacturers to reach out directly to consumers leaving aside or bypassing importers or any other middle agencies or person.

[edit] Internet impact
The internet has had an influence on warehouses too. Internet based stores do not require physical points of selling. However, warehouses are still required to store the goods. Since direct contact with customers means many small orders, this is a different situation where stores would be ordering large numbers of goods. Simply said, warehouses change from shipping large quantities of goods to shipping large numbers of small quantities of goods.
Having a large and complex supply chain containing many warehouse may be costly. Sometimes, it is beneficial to have one large warehouse per continent. This warehouse should be located at a central point, where transport is available to all other destinations. At these continental hubs, goods have to be customised for different countries. For example, goods get a price ticket in the language of the country where it will go. Making small adjustments to goods at a warehouse is called value added services.

Customs broking

2008-06-08T09:44:00.000-07:00

Customs Brokerage is a profession that involves the 'clearing' of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation (and usually the payment) on behalf of the client of taxes, duties and excises, and facilitating communication between the importer/exporter and governmental authorities. Customs brokers in the USA will often prepare and submit documentation to notify or obtain the clearance from other government agencies such as the Food and Drug administration (FDA), The United States Department of Agriculture (USDA), the Fish and Wildlife service, and many others. Customs brokers need to be familiar with the Tarrif Schedule, a listing of duty rates for imported items, and the Federal Regulations governing importations found in the Code of Federal Regulations vol 19, known as CFR19. For example, a customs broker may need to advise an importer regarding country of origin marking requirements or the precise paperwork requirements for a clothing shipment subject to quota/visa requirements. Knowing the requirements of each type of import can avoid costly delays or seizure of the merchandise. Many customsbrokers specialize in certain types of transactions, such as wearing apparel, perishables, or clearing the crew and manifest of large cargo vessels. Customs brokers can be located at inland "ports" to clear merchandise sent "in bond" but most are located at major airports and harbors with international traffic. Customs brokers normally arrange the transhipment or local delivery of cleared merchandise through relationships with trucking companies and others. Customs brokers must pass an examination and background check to become licensed. Customs brokers are not government employees and should not be confused with Customs agents, although in some countries the term customs agent may mean customs broker.
Custom brokers may be employed by or affiliated with freight forwarders, but may be independent businesses or may be employed by shipping lines, importers, exporters, trade authorities and customs broking firms.
In the United States as is the case through much of the world, customs brokers are licensed by the local customs authority. In the United States of America, this is the U.S. Customs and Border Protection.

Freight forwarder

2008-06-08T09:42:00.001-07:00

A freight forwarder (often just forwarder) is a third party logistics provider. As a third party (or non asset based) provider a forwarder dispatches shipments via asset based carriers and books or otherwise arranges space for those shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads.
Freight forwarders typically arrange cargo movement to an international destination. Also referred to as international freight forwarders, they have the expertise that allows them to prepare and process the documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, or transshipment. Much of this information is now processed in a paperless environment.
In the U.S., a freight forwarder involved with international ocean shipping is licensed by the Federal Maritime Commission as an Ocean Transportation Intermediary. Similarly, freight forwarders that handle air freight will frequently be accredited with the International Air Transport Association (IATA) as a cargo agent.

Information on Courier

2008-06-08T09:39:00.000-07:00

A courier is a person or company employed to deliver messages, packages and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of services, and committed delivery times, which are optional for most everyday mail services. As a premium service, couriers are usually more expensive than usual mail services, and their use is typically restricted to packages where one or more of these features are considered important enough to warrant the cost.
Different courier services operate on all scales, from within specific towns or cities, to regional, national and global services. The world's largest courier companies are Aramex, DHL, FedEx, TNT N.V. and UPS.[citation needed] These offer services worldwide, typically via a hub and spoke model.

Couriers prior to the industrial era
In ancient times runners and homing pigeons were used to deliver timely messages. When the horse became domesticated its use was rapidly adopted by couriers. Before there were mechanized courier services foot messengers physically ran miles to their destinations. To this day there are marathons directly related to actual historical messenger routes.

Types of courier
In cities, there are often bicycle couriers or motorcycle couriers but for consignments requiring delivery over greater distance networks, which may often include trucks, railways and aircraft[citation needed], are used.
Many companies who operate under a Just-In-Time or "JIT" inventory method often utilize on-board couriers. On-board couriers are individuals who can travel at a moments notice anywhere in the world, usually via commercial airlines. While this type of service is the second costliest - general aviation charters are far more expensive - companies analyze the cost of service to engage an on-board courier versus the "cost" the company will realize should the product not arrive by a specified time (i.e. an assembly line stopping, untimely court filing, lost sales from product or components missing a delivery deadline, organ transplants).

[edit] Representative Couriers
Over time, demand for a new type of representative courier has emerged. With the increase in fuel prices and productivity goals monitored closely by companies, this new type of all-in-one courier has developed to "take care of business". Workers in companies have more work and less time to be out of the office. Operating largely using independent contractors that have gone through a screening process and background checks have found a niche in the courier industry. Research, intransit pet care, complex paperwork filing, and a host of other services are now offered in this new category of courier service.

UK
The genus of the UK sameday courier market stems from the London Taxi companies but soon expanded into dedicated motorcycle despatch riders with the taxi companies setting up separate arms to their companies to cover the courier work. During the late 1970s small provincial and regional companies were popping up throughout the country. Today, there are many large companies offering next-day courier services, including City Link Ltd. and UK divisions of worldwide couriers such as FedEx, DHL and UPS.
There are many 'specialist' couriers usually for the transportation of items such as freight/palettes, sensitive documents and liquids.
The 'Man & Van'/Freelance courier business model is highly popular in the United Kingdom, with thousands upon thousands of independent couriers and localised companies, offering next-day and sameday services. This is likely to be so popular because of the low business requirements (a vehicle) and the lucrative number of items sent within the UK every day.
Motorbike couriers still exist, but mainly in and around London (and other large cities), where there is often congestion, as they are much cheaper to run in heavy traffic.
Large companies such as Interlink Express, Citylink and FedEx all now provide P.O.Ds online. Lots of the smaller companies and freelance 'Man & Vans' are unable to provide this, but this is changing with forever lowering costs of technology.
Royal Mail was up until recently a reasonable competitor of most of the large couriers; offering next day and special delivery services. This has however changed, with higher costs, strike action and a lowering public perception of the company. With companies like Royal Mail & The DX (who offer a private courier 'box network'), it can be difficult to draw a clear-cut line between postal services and couriers.
Some UK couriers offer next-day services to other European countries. FedEx and Interlink Express both offer next-day air delivery to many EU countries. Cheaper 'By-Road' options are also available, varying from 2 days delivery time (eg. France), to up to a week (eg. Former USSR countries).
Large couriers often require an account to be held (and this can include daily scheduled collections). Senders are therefore primarily in the commercial/industrial sector (and not the general public); some couriers such as DHL do however allow public sending (at higher cost than regular senders).

[edit] USA
The courier industry has long held an important place in United States commerce and been involved in pivotal moments in the nation's history such as westward migration and the gold rush. Wells Fargo was founded in 1852 and rapidly became the preeminent package delivery company. The company specialized in shipping gold, packages and newspapers throughout the West, making a Wells Fargo office in every camp and settlement a necessity for commerce and connections to home. Shortly afterward, the Pony Express was established to move packages more quickly than the traditional method, which followed the stagecoach routes. It also illustrated the demand for timely deliveries across the nation, a concept that continued to evolve with the railroads, automobiles and interstate highways and which has emerged into today’s courier industry.

[edit] Other aspects
Sameday couriers
Sameday couriers deliver in less than 24 hours and is an integral part of any modern economy. There are roughly seven thousand courier companies in the United States that make up this multi-billion dollar sector. The business model for the courier industry is particularly dependent on independent contractors - In fact, it is estimated that 50-65% of U.S. courier companies use independent contractors to make deliveries in addition to their own dedicated employee resources.[citation needed] The nature of the industry, with its on-demand, often unscheduled delivery model, requires a varying number of courier drivers on any given day and time of day to complete a set service. Experts in this method of network delivery maintain hundreds of standby couriers in a "ready to move" status as devised by Mark Kent, professor of Logistics at the University of Ghent. However, this business model is under threat from IRS Reclassification where IC's are being recategorized as W-2 employees. This reclassification typically results in fines being imposed on the offending courier company.
In December 2007, the Internal Revenue Service of the US 'tentatively decided' that FedEx Ground Division might be facing a tax liability of $319 million for 2002, due to misclassification of its operatives as independent contractors. Reversing a 1994 decision which allowed FedEx to classify its operatives that own their own vehicles, the IRS is auditing the years 2003 to 2006, with a view to assessing whether similar misclassification of operatives has taken place. FedEx denies that any irregularities in classification have taken place, but is facing legal action from operatives claiming benefits that would have accrued had they been classified as employees.[1]
Many expedited courier companies are regional, small businesses, which can also provide additional services such as logistics management, archive warehousing, messenger centers, outsourced mailroom services and coordinated airfreight forwarding delivery services.
In the UK, most of the couriers or despatch riders were motorcyclists when the sameday delivery business started to show up in London. These tended to evolved from taxi companies but soon regional courier companies were popping up throughout the country. Starting in the mid 1980s, bicycle couriers, who were more economical for shorter distance deliveries,[2] began to supplant motorcycle couriers in the larger cities. Rising costs, including insurance premiums and petrol, made motorcycle couriers less competitive.[citation needed] Except for the metropolitan areas most of the sameday couriers throughout the country now use small vans to do deliveries.

[edit] Customers
These couriers specialize in delivering important or sensitive packages that need to be received in the local area; and/or because of time and temperature concerns, such as organs for transplant or key equipment or parts that are necessary for day to day operations. While most companies use courier services certain industries depend on couriers on a daily basis. Biomedical labs need samples for testing and evaluation, manufacturing industry require parts to keep their plants operating smoothly, financial institutions transfer multiple documents every day between branches and processing centers, law firms must deliver confidential signatured documents on very strict deadlines for court filings and pharmaceutical distributors use couriers to transport medications to hospitals and nursing homes.
Even two-day delivery services use courier firms. Items that are mis-sorted, forgotten or just not picked up on a larger couriers route. When a mistake has been discovered, courier firms fill in the gap and ensure packages are delivered on time.

[edit] Competition
Courier firms specializing in same-day delivery provide an invaluable service because the "big five" (Aramex, DHL, FedEx, TNT N.V., and UPS) in the delivery business simply do not provide same-day delivery services uniquely designed to meet specific individual customer needs. Expedited delivery firms also prevent the big five from having a complete monopoly on deliveries that must be completed in a short period of time. This competition, both among couriers and with the big five, has greatly increased the quality and professionalism of the industry, while also ensuring reasonable rates for customers. These 7,000 plus small businesses also help to keep the pricing competitive and the big five honest. Additionally, the courier industry consists almost entirely of small, locally owned and operated businesses, ensuring that revenue is retained within the community served, rather than siphoned off by a multi-national corporation.[citation needed]

[edit] Working conditions of couriers
The conditions of employment of couriers vary from country to country, city to city and even company to company. Contracts governing the relationship between individual courier and company are subject as much to customary practice, as local ordinance. In some places couriers are independent contractors paid on commission and do not receive benefits such as health insurance. In other places they will be regular employees of the courier company enjoying all the benefits thereof.
In the US, the Obama-Durbin Independent Contractor Proper Classification Act of 2007 was introduced to deal with the problem of workers 'misclassified' as independent contractors.[3] It is not clear what effect this legislation, if enacted, will have on the U.S. courier market. But if, as is the Act's intention, courier companies are forced to treat those workers that they previously declared independent contractors, as employees, with all the benefits thereof, then there is no doubt that costs will rise.
The employment status of the couriers of one of the UK's biggest sameday courier services, CitySprint, was challenged by the GMB trade union in December 2007. The challenge arises from the firm deciding to terminate the contract of one of its operatives. The GMB seeks to establish that more than 1500 CitySprint operatives currently classified as self-employed sub-contractors should be re-classified as employees.[4]

Introduction to Logistics & Supply Chain Management

2008-06-08T09:37:00.000-07:00

Introduction to Logistics & Supply Chain Management:
When was the last time that you made a purchase at McDonald’s? You may have not put much thought as to where all of the ingredients came from that produced your sandwich. Depending on the restaurant’s location, McDonald’s sources its ingredients from both local and global suppliers. The challenge is to ensure that all restaurants in the McDonald’s network have enough ingredients to meet customer demand. This is the challenge for Logistics & Supply Chain Management. Here is a list of relavent topics that Logistics / Supply Chain Management operations encompass.
History of Logistics & Supply Chain Management:
Logistics has always been a critical part as one of the 4 P’s in Marketing: Product, Place, Price and Promotion. The “Place” component ensures the product is at the right place, at the right time, in the right quantity and the right quality. Read about how the logistics discipline started and where it is headed.
Logistics & Supply Chain Management Defined:
According to the Council of Supply Chain Management Professionals (CSCMP), a professional organization for Logistics and SCM professionals, logistics is defined as:
“the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of conforming to customer requirements”
Creating a Logistics Strategy:
It is a fallacy to assume that the best logistics strategy is to get the product from the supplier to the customer the fastest and always be in stock for all organizations. If this were true, most organizations would not be profitable today. The truth is, creating a logistics strategy is a balancing act which takes many variables into account. Here is a list of what needs to be answered before creating a logistics strategy.
Inventory Management:
Managing inventory in the supply chain is critical to ensure high customer service levels. However, it is also a very costly asset to maintain. Having the right amount of inventory to meet customer requirements is critical. Find out what inventory best practices reduce inventory costs across the supply chain.
Purchasing Practices:
In a typical organization, 80% of the purchasing transactions represent approximately 20% of the total dollars spent. Many organizations spend the same amount of money to process a $1,000 transaction as a $10,000 transaction. Here are four methodologies that may be deployed to reduce small value purchase transaction costs which involve consolidation and automation. Find out which approach will work best for you.
Risk Management in Supply Chain Operations:
As outsourcing of Logistics / SCM operations become more popular for firms, the management of risk will gain more importance. Variables such as fluctuating exchange rates, supply disruptions due to labor strikes and supplier bankruptcy may cause havoc on the supply chain. Implementing a solid risk management strategy will help reduce uncertainties.

Reverse logistics in supply chain management

2008-06-08T09:36:00.000-07:00

The evolution of reverse logistics for manufactured products is developing in direct proportion to the rapid advancements in technology and the subsequent price erosion of products as new and improved products enter the supply chain at a faster pace. With such thin margins and so much competition, mismanagement of the supply chain can be devastating. Those organizations with the infrastructure to capture and compare the composite value of components with real time intelligent analysis and disposition based on changes in refurbishment cost, resale value, spare parts, repair and overall demand will not only become more profitable, but such flexibility and scalability will allow them to outmaneuver and eliminate the competition.

This is a case of modern Darwinism. It is survival of the fittest. It requires collaboration integration within Supply Chain Logistics, or appears on the endangered species list. Even the mighty predator, the Tyrannosaurus Rex, was doomed to extinction by the constant progress of evolution. Today, technology drives evolution at an astounding pace. The ability to capture, migrate, integrate and facilitate the intelligent analysis of data is akin to the invention of fire. This is what will separate the companies who can walk upright from the ones that will be stuck in the tar pits of slow response.

The early days of Reverse Logistics were measured by convenience and customer accommodations. The focus was on the front end of the return process, the ability for consumers to be able to return unwanted or defective merchandise. The ability to facilitate a consumer return was a courtesy that turned into a compelling competitive differentiator in retail. The companies that did not support consumer returns found themselves at a strategic disadvantage to those that did, and were eventually forced to adopt the same consumer conveniences or lose those customers to the competition.

It did not take long for retail merchants to seek the same concessions from manufacturers and distribution channels. Stock rotation became a normal condition of business, and processes for returning defective merchandise became standard practice. Although this is accepted as commonplace today, it has not always been this way. Even today there are cultural differences with regards to consumer returns, especially for product that is not defective and returned because of 'customer remorse'.

As the cost of Reverse Logistics continued to increase, and as the methods of transportation became more sophisticated, manufacturers and distributors began to look for alternatives in transportation for savings. Planning and consolidating freight for return products was identified as a way to reduce expenses related to fuel and labor. This also led to detailed analysis of transportation options, like truck, air and railway. In Supply Chain Logistics business you are either the one driving the truck, the one pumping the gas, or the one paying the other two.

The next step in the evolution of Reverse Logistics was the experimentation and cost comparison between multiple local hubs and single consolidated returns centers. The simple analysis for savings contrasted the costs of warehouse space and manpower to the amount of freight and transportation fees for handling the back end of the Supply Chain. Other factors also played a significant role in the financial analysis, including volume, material costs and inventory controls.
As the costs of Reverse Logistics continued to rise, the importance of returning refurbished merchandise to market also became more significant. Organizations began to place financial significance on the devaluation of product for every day lost in transportation, handling, processing or warehousing. As technology and features improved, price and demand for aging product diminished, as did the ability to recoup costs from returns. Speed to return to market could be measured in resale value.
In the next step of Reverse Logistics evolution, there was an awakening and realization that reverse logistics is only a portion of the entire back-end services solution. Consolidation meant more than merely consolidating returns, it meant consolidation of activities related to back-end support operations. Manufacturers began to consolidate spare parts and materials in the same warehouse as the returned merchandise, discovering that it is less expensive to move parts and packing materials across an aisle than across state lines. Spare parts used to refurbish returns were placed in the same building. Taking this concept one step further, manufacturers began to consolidate depot warranty repair operations inside the same facility to maximize the utilization of parts, labor, warehouse and materials. This activity often required collaboration between previously diverse management and operational groups within large organizations. The collaborative effort reduced expenses for all participating departments and groups within the organizations.

A retail revolution in apparel supply chain

2008-06-08T09:35:00.001-07:00

The retail landscape has metamorphosed with many brick-and-mortar retailers adding an Internet shopping-component to their offering says Debasis Daspal
Sudarsana was elated when she found her favorite brand of fashion item in the shop, and she purchased it. After a fortnight, she was surprised to receive fabulous offers from the same brand at discounted rates, that too on her pet accessory items! She was truly amazed to find how the company knew her tastes and choices.
This is not a fantasy. It has become a reality with e-retailing in apparel and accessory supply chain. Wal-Mart, K-Mart, Target, Barnes and Noble, Sears are some of the few click-and-mortar giants. For example, if a woman spends a certain amount on her favourite lingerie at Sears, the world-famous retail joint, she will receive notices of any sales on other fashion costumes. The trick is that when a customer shops using a Sears Card, details about the purchase and the customer are stockpiled electronically. This data warehousing permits Searss marketing people to target promotions to a more receptive group of customers.
True, promotional marketing in the apparel chain has attained a new dimension with e-tailing, the electronic counterpart of retailing. Manufacturers and retailers now target consumers directly with attractive offers. Using credit or charge card to buy clothes triggers clockwork of activity in retail. These activities range from automatic stock replenishing, which refills the stores shelves, to alerting a distant manufacturer to turn out more clothing. However, as manufacturers and retailers more closely scrutinise individual customer tastes, habits, and buying patterns, they opt for a direct route to consumers. Instead of waiting for consumers to visit their stores, retailers may simply send them target e-mails, offering deals too good to refuse. The rise of automatic customer replenishing as retailers begin to restock consumers closets, instead of their stores.
Wal-Mart, the worlds largest retailer, successfully incorporates this e-retailing in its supply chain through electronically enabled stock replenishment. The result is dramatic. It offers shoppers more than a 98 per cent chance of finding a complete selection from its diverse collections!
Supply chain strategy is also redefined as a result of going online. Click-and-mortar retailers have changed their strategy of stocking in their various warehouses. High volume products, that is, basic apparels whose demand can be accurately matched with supply based on long term forecasts, are stocked in local stores. And low volume fashion items are stocked centrally for online purchasing. The latter products have highly uncertain demand levels and thus require high levels of safety stock. Centralised stocking in this case effectively reduces uncertainties by aggregating demand across geographical location and thus reducing inventory levels. As e-retailing has pushed the boundary of apparel and fashion business in the forward direction to establish direct links with consumers, it also integrates the back-end manufacturing and sourcing operation with real time information sharing about what consumers are buying. This enables vendors and suppliers to plan proactively in response to real-time demand. The upshot is that orders are filled quickly; stock is made as it is needed, and there is no need to waste revenues, as stockpiling unsold goods in physical warehouses is avoided.

Energy conservation in textile industries & savings

2008-06-08T09:31:00.000-07:00

The need of energy conservation has assumed paramount importance due to the rapid growth of process industries causing substantial energy consumptions in textile operations. And this has made pathway to conservation of energy which can be affected through process and machinery modifications and implementation of technological advancements relating to process optimization as well as development of newer methods to meet the challenge of substantial energy saving in textile wet processing. Thus, there is a necessity for replacing the conventional methods by the latest processes which will lead to considerable savings in terms of energy, money and time.
Global energy crisis, as well as high cost of fuels resulted in more activities to conserve energy to maximum extent. The textile industry retains a record of the lowest efficiency in energy utilization and is one of the major energy consuming industry. About 34% of energy is consumed in spinning, 23% in weaving, 38% in chemical processing and another 5% for miscellaneous purposes. Power dominates consumption pattern in spinning/weaving, while thermal energy is major for chemical processing. It is known that thermal energy in textile mill is largely consumed in two operations, in heating of water and drying of water. Fuel consumption in textile mills is almost directly proportional to amount of water consumed. Hence, if consumption of water can be reduced, it will also save energy.
It is, therefore, an important aim of industrial fundamental research to develop new technologies to optimize conventional processes in order to conserve energy by basically adopting novel concepts discussed in the paper.
Introduction
Energy is one of the most important ingredients in any industrial activity. However, its availability is not infinite. Global Energy crisis, as well as high cost of fuels resulted in more activities to conserve energy to maximum extent. The textile industry retains a record of the lowest efficiency in energy utilization and is one of the major energy consuming industries. About 34% of energy is consumed in spinning, 23% in weaving, 38% in chemical processing and another 5% for miscellaneous purposes. Power dominates consumption pattern in spinning/weaving, while thermal energy is major for chemical processing.
It is known that thermal energy in textile mill is largely consumed in two operations, in heating of water and drying of water. Fuel consumption in textile mills is almost directly proportional to amount of water consumed. Hence if consumption of water can be reduced, it will also save energy. Conservation of energy can be affected through process and machine modification, proper chemical recipes, and new technologies.
The possibilities of utilizing new energy resources like solar energy, wind power, tidal power, nuclear energy, etc. are to be explored. But initial cost of production will increase in step with cost of oil, which makes development of such sources doubtful in terms of cost incurred.
Focus Areas for Energy Conservation
Thermal Energy:
As already indicated, wet processing of textiles consume a very high proportion of thermal energy mainly for the evaporation of moisture from textiles. at various stages of wet processing and also for heating of process chemicals. Table 1 indicated the department wise percent steam consumption in a composite textile mill.
Steam is generated employing boilers by using either coal or furnace oil and lately low sulphur heavy stock oil available from the refineries as fuel having average calorific values of 4200 6200, 10280 and 10700 Kcal respectively.
Thermal energy in the form of steam is supplied to the various equipment's through pipe for this purpose; steam generated in the boiler is bifurcated into the required branches through the main steam header. The major consumption of steam is for evaporating moisture from treated textiles as compared to that of heating of process chemicals. Following are the tables which gives the average steam consumption in some unit operations and also in each stage of wet processing.

China and Its global embroidery machine market

2008-06-08T09:29:00.000-07:00

China is believed to be having nearly 70% of world computer embroidery machine market.
Barudan of Japan developed the world's first multi-head, computerized embroidery machine in 1977. The computer embroidery industry of the world was guided by such developments taking place in Japan. China has also acquired skills to develop high-speed embroidery machines during all these years.
According to the statistics, before 1997 there were only a very few factories specializing in computer embroidery machine making with a total production of no more than 2000 sets or so. After 1998, both the number of embroidery machine manufacturers and their volume doubled. In 2004 the total number of manufacturing factories increased to more than 150, specialized parts suppliers totaled more than 2000 companies, yearly turnover more than 40,000 sets, domestic sales volume more than 30 billion Chinese yuan, export volume more than USD 0.6 billion, provided job for more than 300,000 persons.
Internationally famous embroidery machine manufacturers include Japan's Tajima, Barudan, Brother, Happy, Toyota; Korea's SWF, Germanys ZSK; KSM (PFAFF); American Melco etc. Tajima & Barudan from Japan occupied more n 70% of the global market share before 1998. But with the growing Chie and Korean manufacturers, the global computer embroidery machine manufacturing situation has changed dramatically.
In the year 2004, global supply of embroidery machines was more than 60,000 sets out of which middle to lower level machines occupied around 70% of the market share. These were produced -in China. Machines made in china gained more than 66% in global market. Korean SWF has taken 1 /3rd of the High-end market that belonged to Japan and Germany earlier.
Machines made in China have entered the global competition gainfully with low cost advantage during recent years. The machines now enjoy a decent market share and are a big source of foreign exchange earnings, the product structure has been modified and China has substantially improved in quality, especially in the middle to high end segment, which offers better prospects.
The demand pattern indicates that various models of lock-stitch embroidery machines still occupy around 90% of the total market share. Almost all low end (economical) no-trimming machines are manufactured in China. In the year 2004 alone sales of such machines were of around 26000 sets, which was 40% of the total embroidery machine production. In the mean time, China has been able to achieve 27% of the global market share in the middle-to-high level lock-stitch machinery sector.
Special embroidery machines (For example, lock -stitch quilting machine, sequin, cording, taping, coiling machine, together with chain and chenille machine) were manufactured in very small number in China in the past due to high technology expertise required and also due to reasons of price and low market demand.
However, in recent years, these machines are produced in big volumes as a result of which the prices have been brought down dramatically. Special machines, made in China, are priced 20% of that of similar machines made overseas. The applications vary from high level garments to normal fabrics and decoration market which leads to increased demands.

Futures Trading Tips

2008-06-08T09:05:00.000-07:00

Futures Trading
In futures trading, there is usually a contract, which is essentially an agreement between two parties to buy or sell an underlying asset at a certain time in the future at a certain price. A futures contract usually has a standardized date and month of delivery, quantity and price.Futures trading is usually carried out on a futures exchange. Futures differ from forwards in terms of margin and delivery requirements. In order to facilitate liquidity in futures trading, the futures exchange specifies certain standard features of the contract. In futures trading, a futures contract may be offset prior to maturity by entering into an equal and opposite transaction. More than 99% of transactions in the futures trading are usually offset in this manner. The date specified in the options/futures contract is known as the expiration date.The Futures price is the price at which the futures contract trades in the futures market. The expiration date for all contracts in futures trading is usually the last Thursday of the respective month. Three series of futures contracts are available and have one-month, two-months and three-months expiry cycles. On the Friday following the last Thursday, a new contract having a three-month expiry is introduced for trading. The most important role that futures trading performs is in aiding the process of proper price discovery. Since several different types of players are engaged in trading the futures.Apart from aiding price discovery, futures contracts also aid in the hedging of price risk in a commodity. Futures contracts are useful for the producer because he can get an idea of the price likely to prevail and thereby help them quote a realistic price and hedge risk.

Investment in Home or Stock? First analyze your financial advisor!

2008-06-08T04:21:00.001-07:00

He/she maybe an agent in disguise for the real gamblers - builders, owners, brokers, Stock/MF traders, bankers, manipulators of Dalal Street or Wall Street, etc. Keep aside the financial jargons; stock investments are no more than a "glorified version of traditional gambling". Chances are, when you think about investing in real estate or stock the first thing that comes to mind is to ask an investment expert or realty professionals, overriding your OWN common sense. Look at the housing market as a critic and just Calculate Cash Flow Return (Rental Income) and Future ROI (housing sale profit).
Also keep watching the BSE Realty Index and other similar trends. Reading the recent global market crashes and considering how manipulative the markets are, in general, the long-term success is not so rosy anymore for small investors… Many will surely take it otherwise, but that cannot change the ground realities, can it? Refer the early warning stories!
Taking clues from today's proliferated media to make important decisions can be a disaster, be logical. They are notorious for changing opinions as quick as the status of markets. Forget what the Kotaks, Investment Magazines, Experts, MagicBricks, NDTVs, 99Acres, Bankers, CNBCs, 2letservices, Consultants, RealEstateTimes, Yahoos, Googles,..etc are suggesting, look at the local market conditions! Yes, there are no monarchies in today's digital world, but the basics of what Canakya or Kautilya said in Arthasastra (read finance) cannot be mutated by few opportunists forever. Why will the market grow in your favor? Find an answer before jumping-in!
Historical returns are of little value in formulating return expectations, standard deviations and correlations: When past performance of stocks/bond or housing investments are used as inputs, the outputs of the analysis are portfolios which performed particularly well in the past. When beliefs of investment experts are used as inputs, we get the output as better or worse portfolios. Good and reliable advisory add value by constantly evaluating the investment planning implications of alternative economic scenarios, investment solutions and lifestyle choices, managing costs, and counseling a margin of safety in saving and investing your money. Anything less is bad practice, fire him/her!
For many people, their home is the single largest investment they will ever make. But have you ever stopped to consider that once you purchase a home it becomes part of your overall portfolio of investments. It is one of the most important decision as it can serve a dual role of an investment and your daily life passion. Though a home is one of the largest investments the average investor will purchase, there are other types of real estate investments worth investing in. The most common type is income-producing real estate. Large income-producing real estate properties are commonly purchased by high net-worth individuals and institutions, such as life insurance companies, real estate investment trusts and pension funds.
Income-producing properties are also purchased by individual investors in the form of smaller apartment buildings, duplexes or even a single family homes or condominiums that are rented out to tenants. Real estate is considered an alternative investment class compared to more speculative driven items like equity or bonds! Major difference is that real estate is an investment in the "bricks and mortar" of a building and the land. So it is tangible, because unlike most stocks you can see and touch your house, try it! This often creates substantial pride of ownership, but tangibility also has its downside because real estate requires hands-on management. You don't need to mow the lawn of a bond or unplug the toilet of your equity papers!
Some benefits of realty investments are diversification value, yield enhancement, inflation hedging, ability to influence performance, etc. An investor can do many things to a home to increase its value or improve its performance e.g. replacing the leaky roof, improving the exterior and re-tenanting the building with higher quality tenants. An investor has a greater degree of control over the performance of a real estate investment than equity investments, which are proved to be highly speculative-driven for the benefit of smart manipulators.

Farm Sectore Investment Article

2008-06-08T04:18:00.000-07:00

Inflation in 2006-07 was fuelled by the rise in prices of primary articles, even though the prices of manufactured products rose at a much higher rate. This draws attention to the terms of trade or relative price trends between agriculture and other sectors. A sudden rise in farm-produce prices does not necessarily fill the pockets of farmers and lead to new investments. Also, the changes in the Indian economy over the last two decades mean that competition for capital between agriculture and manufacturing is not as significant as it could have been.
The terms of trade between agriculture and the rest of the economy do, however, point to changes in the supply-demand imbalances across sectors. To induce new investment, either rising margins of profit or rising volume of business are necessary. In the case of agriculture, what will it be?
The terms of trade, estimated as the ratio of agricultural prices to manufactured product prices, offer a rough indicator of relative attractiveness of the agricultural sector for investment. However approximate, it reflects the fact that when prices of farm products are rising faster than those of manufactured products, many of which would be agricultural inputs, the returns to investment in agriculture would improve. It is certainly not a measure of welfare, as rising agricultural prices (especially of food items), would mean costlier sustenance to the poor.
During the period when agricultural growth was the best in recent times, 1992-96, the terms of trade were improving for agriculture. Agricultural GDP increased by an average of 4.7% per year during this period. In the next ten years, the growth was about half this rate, and the terms of trade were declining for agriculture (until the last couple of years of the decade).
In the most recent five-year period, investment in agriculture was stagnant as a percentage of GDP. The Eleventh Five-year Plan is looking at raising agricultural output at 4% per year. This won't be easy. Clearly, more investment would be needed to accelerate growth. This will require a conducive investment climate for the farm sector.
Slower rise in prices and slower growth in output point to the key weakness of agriculture-that of limited markets. It is not clear what the Doha round is likely to achieve in terms of access to world markets for Indian agriculture. But improving the terms of trade is an important variable for improving the investment climate in the sector. If it is not the volume, margins would have to increase for more investments. Better margins may not necessarily come from higher prices, but also from a larger share of higher-value output.
The correlation between the relative prices and agricultural growth, while plausible, is clearly not the entire explanation for the pace of agricultural output growth. The other ways of inducing farmers to invest and improve productivity through subsidies, expansion of markets or reducing risks, are more effective in achieving the same goals. Sharp fluctuations in prices have led to severe shocks to the farm sector in the past. High and unsustainable prices have led to unwise investments and low prices have led to borrowing at high interest rates. The farm sector has not been able to withstand the large shocks.
Generic support systems, such as directed credit, have been the main form of inducing new investments. Crop-specific support systems, such as high-yield seeds and support prices, tend to have short-term impact and require continued interventions. The more generic form of support provides greater choice to farmers in terms of crops they can grow and move up the value chain of agriculture. Gaining favourable terms of trade, therefore, is not a sufficient condition for bringing about more investment into agriculture. It can be a catalyst in the process, but for sustaining investment, other productivity enhancing measures and market expansion measures would be needed.
What is of importance in influencing the course of agriculture is government policy. The link between the terms of trade and policy is quite unclear. Does government-sponsored capital formation pick up when the terms of trade are moving against agriculture, or the other way around? In the past five years, it was government spending that was sustaining growth in agricultural investment. It is, therefore, likely that the agricultural growth rate has greater influence on government policy: sagging growth induces more spending.
The policy target has typically been food output. Steady improvement of farm incomes is a more appropriate if difficult goal to achieve. Recommendations made by the National Commission on agriculture seek to move policy in this direction. But clearly, it should be farmers' own decisions that should drive investment in this sector. This requires both volumes and margins. There are clear signals that public investment in the rural sector as a whole is increasing. Rural development programmes aim to improve infrastructure. Then again, this is but one element of a strategy to improve the investment climate for agriculture.

Golden tips on buying gold

2008-06-08T04:15:00.000-07:00

From investment point of view, one should invest in bars, coins and not jewellery. You may not get a good price for jewellery because of making and processing charges involved in it.
If you sell gold after keeping it for less than three years of buying it, you have to pay 30% capital gain tax. Tax will be 20% if you sell after three years.
In an interview to CNBC TV 18, Certified Financial Planner Kartik Jhaveri and CNBC Awaaz Commodity Editor Manisha Gupta offer you important things to keep in mind while investing in gold.
What is the best time to buy gold?
-- Rajkumar Singh, salaried employee, Gwalior
Manisha: Some fall in the gold prices is expected in the medium-term. Gold prices have seen a jump of 34% in the last one to one and half years.
Last year, in international markets the average was of $444, while this year we have seen a high of $630. Anytime is good for buying. In near term, the gold has not crossed the $600-mark. If the gold prices touch a low of $595 or $582 in near term, you should definitely buy gold.
If you take a larger view of six months, the gold can fall down to $540 or touch the $640 mark on the upper side.
Should one invest in gold or bars, coins?
Kartik Jhaveri: From investment point of view, one should invest in bars, coins and not jewellery. You may not get a good price for jewellery because of making and processing charges involved in it.
Is there any alternative to investment in gold that also involves trading?
-- Jatin Pandya
Manisha: Gold coins and bars are part of physical trade. MCX and NCDX exchange is another important avenue for trade. Suppose you want to trade 10 gram gold while the price for one gram is Rs 9,000. You pay a margin of 5%.
So instead of giving Rs 90,000 you pay only 5% of the total cost to the exchange. You gain or lose as per the movement of gold in international markets and its parallel movement in the Indian markets. This commodity gives you a lot of leverage.
For example, it depends on you whether or not you want to take the delivery. The exchange also gives you the facility to open a demat account so that you keep your gold there if you don't want to bring it home.
Therefore by paying Rs 4,500 instead of Rs 90,000, you can do margin trading.
Can gold ETF (Exchange Traded Fund) be a good option, if one is looking for a structured product, instead of buying physical gold every month?
Kartik: Certainly, physical gold has got its own set of problems such as safety and keeping it in safe deposits etc. So whenever ETF (exchange traded fund) is introduced, it is definitely going to be a better option. One more thing an investor can do is to open a demat account.
In a demat account, one has to take the delivery of at least one kg gold which costs a big amount. You can also take the exchange-traded funds in international market. Accounts can be opened internationally and money or foreign currency can be sent abroad.
I have invested in gold. I have a 100 gram gold bar worth Rs 900 per gram. How can I get good returns from it? When should I sell my gold biscuit worth Rs 90,000?
-- Mayur Patel, Baroda
Manisha: The latest trend for gold prices has been bullish. It has seen Rs 10,000 level for sometime. Gold touched this level briefly in July-August, and then in May for quite some time.
If we talk about high levels, i.e. $608 in international markets would mean Rs 9,300-Rs 9,400 in Indian markets. Similarly, when you see $620-640 levels in international markets, it means 10,000-11,000 levels in the Indian market. One can see huge profits in next four to six months.
Would it be a good decision to invest returns from equity in gold?
-- Arpit Shekhar, Delhi
Kartik: Yes, you can invest in gold if you want to decrease your equity allocation in your portfolio and if you don't want to put too much of money in the stock market. However, kind of increase you get in share market, you will not get by investing in silver or gold.
So, we see good chances of increase in both the markets in next few years. It is alright if you want to take out some money. Otherwise, it is better to keep some money in stock market.
Should I divert the entire returns towards gold or re-invest in equity to earn more profit?
Kartik: If you re-invest in shares, you will make more profit than in gold. It is alright to invest in gold, silver or bullion, but only if it is between 5 to 15% of the portfolio. It gives you a cushion against volatility but doesn't increase your money as in share market if we talk of five to seven years.
What is the best way of buying gold?
-- Manju Gagtiyani
Kartik: If it is from the investment point of view, you can choose between gold biscuits and rare coins, special coins, gold coins, international coins in Indian markets. It will have same prices as in international markets. And when the exchange trade funds will come to market, it will certainly be a better alternative.
How to look for real gold?
-- Neeraj Agrawal, architect, Bilaspur
Kartik: If you are buying gold for investment I suggest you buy it from a reputed gold vendor or bank. Here you will get gold in tamperproof packing. You can't open it easily unless you cut the packet. You also get a quality certificate which has the gold bar number on it. You can re-issue this certificate and sell the gold anywhere. So this is the advantage of buying gold bars and gold biscuits.
If you are buying jewellery, there are government-approved valuers. You should insist on taking a bill and should pay up the VAT (value added tax) on it. This will help you in getting the thing insured and at the same time you get a good quality and authentic product. You can get your gold valued by an approved valuer in your town.
Why do gold prices vary from shop to shop?
-- Alka Thakkar, Mumbai
Kartik: Gold is an unorganized market right now, while when we trade in commodities futures, you have a fixed price and you a certificate if you are buy something. As far as gold prices are concerned, you get a benchmark from TV or newspapers about the current rate and depending on your need as per demand and supply, shopkeepers set the rate and quote you.
That's why the rates differ from shop to shop. In my opinion, you should not look at the short-term gains of Rs 100 to Rs 400 and sell gold for this profit. Hold it for a longer period until you get good margins.
What is the best way of selling gold? I buy gold from banks.
-- Jaishree Jain
Kartik: We can buy gold from banks but banks don't buy back from us. So we have to sell it in open market. It is true that there is some sort of emotional attachment with the gold, but you have to decide as to what do you want - keep it or book profit like in shares.
In a short-term you wouldn't gain much profit. Only if you buy in volumes will you earn some profit at a difference of small price.
I want to invest Rs 25,000. Should I consider gold?
-- Suruchi Khanna
Kartik: In my opinion, if you have to invest Rs 25,000, you should invest in small amounts of five gram each over a period of five to six months. This way you will get a better price. Looking at the gold market, you should have a time frame of four to five years to earn good profit.
There are several reasons for its prices going up like rising international demand for gold, increase in its industrial use and increasing demand in China is increasing, while no new gold mine has been discovered. Therefore there is a huge possibility of earning profit from it. So give it at least four to five years.
Important points to keep in mind:
Buy gold bars and coins instead of jewellery for investment. You may not get a good price for jewellery because of making and processing charges involved in it.
Look for hallmark or BIS sign on gold bars and coins. It is a sign of quality and purity.
Buy only from a well-known dealer or bank.
If you sell gold before three years of buying it, you have to give 30% capital gain tax and 20% if you sell after three years.

Tips for Travel Insurance

2008-06-08T04:14:00.001-07:00

Travel insurance can protect you from substantial losses that result from a variety of situations, including canceled trips, lost baggage, medical emergencies, supplier defaults, as well as other unforeseen circumstances. Following are some tips for Travel Insurance:

Who should buy travel insurance?
Travelers who want to protect their travel investment should consider purchasing travel insurance. If an illness, accident or sudden change in plans forces you to cancel or interrupt travel plans, you face two major financial losses - money you've invested in nonrefundable prepayments, and medical expenses that aren't covered by your health insurance.

How does trip cancellation coverage work?
It is designed to reimburse you for forfeited, nonrefundable, unused payments or deposits if you have to cancel your interrupt your trip due to a variety of situations, including but not limited to inclement weather, illness or another unforeseen event.

How much does travel insurance cost?
The cost of travel insurance varies from company and policy to policy. The more you have invested in your trip, the more you need to protect it. Travel insurance covers you for losses caused by trip cancellation and interruption, medical expenses, baggage, trip and baggage delay. When you consider all the protection you get, travel insurance is actually a great value.

Where do you buy it?
Most travel agents offer travel insurance and many may even require customers that decline insurance to sign a waiver form.

Tips to get the best health insurance!

2008-06-08T04:12:00.000-07:00

Health insurance is the insurance that covers you in case you fall sick and have to be hospitalized. When you buy a health insurance policy, you have to pay regular premiums like any other insurance. In turn, if you fall sick when the insurance policy is valid, your insurer pays your hospital bills. This relieves you of the stress of how you are going to pay your hospital bills.

There are two kinds of health insurance plans: indemnity and managed care. Indemnity plans are also known as fee-for-service plans. Under this scheme, you can get treatment from any doctor, hospital or health care service provider. You have to pay the costs upfront and submit the claim to the insurer. The insurer will reimburse you subsequently up to the sum insured. Managed care plans, on the other hand, are plans in which you get treatment from the doctors, hospitals and health care providers approved by the insurer. It leads to lower costs and paperwork but limited choice of health care providers.

No matter what type of insurance plan you opt for, remember it is important you choose carefully. Here are few things to watch out for when buying health insurance for an NRI.
Choose the amount of cover wisely. This is a very important factor. The higher the cover you choose, the higher the premium you pay. On the other hand, if you choose a lower cover and in case of your hospitalization, your medical expenses exceed the cover, you will end up paying for the extra expenses from your pocket, which can be quite high in view of escalating hospitalization costs.
Find out what critical diseases are covered. This makes sense in case you have a family history of diseases like heart diseases. But such policies also come for a higher premium.
Check if your insurance plan offers you a wide choice of health care providers. This is important just in case you have to be hospitalized on your visit to India.
Compare the costs of plans offering the same benefits. This can save you a lot of money.
Find out the number of days required to settle the claim as well as the company’s reputation in settling claims.
Check out the coverage offered for you and your family. This is very important if you are a regular traveler to India.

Tips on Accident Insurance Policy

2008-06-08T04:10:00.000-07:00

Accidents don't just happen on the roads. They can occur in your office, while travelling or entertaining, or even at home while doing everyday chores.
In terms of your finances, they make a double impact. On the one hand, your healthcare spending increases as you undergo treatment. On the other, your income is disrupted till you recuperate. It is here that accident insurance plays the crucial role of keeping the pincers from closing on you and your family.
According to experts, for people below 45 years of age, the risk of accident is much higher than of health problems. Health risks and expenses mount with age and tend to typically surface when a person is 45 years or older. They also say that people between 25 and 55 years of age are twice as likely to get disabled than die. Given that a large number of disabilities occur through accidents, few can argue against the importance of accident insurance.
What's on offer. In India, you have two major insurance options to cover the risk from accidents. First, you can opt for stand-alone personal accident insurance policies sold by general insurance companies. Second, you can also take an accident rider along with a life cover.
PAIP. This policy solely covers any bodily injuries due to accidents, which are external, violent and visible, as the definition goes. It covers you for four contingencies that may arise from an accident: death, permanent total disability, permanent partial disability, and temporary total disability. Like benefits of all insurance policies, buyers need to understand very well how these contingencies are defined in the policy.
Typically, the premium is around Rs 125-750 for a PAIP with a Rs 250,000 cover. Any person aged between five and 70 years can take this policy (in some cases 80 years). Their dependent family members between 5 and 80 years can also be insured under it.
Premiums don't vary with age and insurers give a discount of around 10 per cent when you cover family members. People whose work is more static in nature, such as lawyers, accountants, teachers or the self-employed, are regarded as normal risk by the insurers.
Builders, contractors, engineers and veterinary doctors, whose job includes frequent site visits, are classified as medium risk. Those who work in high-risk industries, with chances of accidents, fall in the high risk category. PSU insurers charge premiums according to your risk profile, whereas some private insurers charge a flat premium, irrespective of your risk profile.
Opt for comprehensive coverage. When you go for a PAIP, opt for a comprehensive coverage of the four contingencies of death, permanent total disability, permanent partial disability, temporary total disability even though you might have the option of covering one, two or three of them.
The reason: such a cover provides weekly payouts at one per cent of the sum assured, subject to a ceiling of Rs 6,000, in case of temporary total disability. For this benefit, you have an upper ceiling of Rs 500,000 or 25 times of monthly salary, whichever is lower. One also needs to remember that there is also a cap for the overall cover under PAIP, which can be 60-72 times monthly salary, depending on the policy.
Accident riders. Like other life insurance riders, the maximum accident cover under riders is 30 per cent of the sum assured. Since most life covers end at around age 65, the coverage from accident riders end with the base policy.
Another important point to remember is that once the claim is made, lump sum amount will be paid in case of death or staggered payments made in case of permanent total disability - say 10 per cent of the rider cover annually over 10 years. In case you survive the accident, for most companies, the coverage effectively ends from the time you make the claim.
PAIP vs accident riders. If you compare the two options, PAIP has an edge for those covering all the four contingencies - you will get a weekly payout in case of temporary total disability; a facility that riders don't have. This facility gives you a better income replacement stream too.
Also, PAIP's coverage in terms of age limit is more and the coverage doesn't end after a claim is made, as is the case with accident riders. There's another advantage. Says Ajit Narain, managing director and CEO, IFFCO-TOKIO General Insurance, "A customer, who does not need a long-term commitment required in a life policy can take a stand-alone personal accident cover."
Determine your requirement. After getting a fix on the option that you prefer, you need to determine the amount of accident cover you need. The calculations need to follow the same principle as computation of life insurance (See Cover Needs). For purposes of illustration, we take a person suffering from permanent total disability after an accident that has completely ended his ability to earn a regular income from a job.
Assuming a take home pay of Rs 25,000 for a 35-year-old individual (expected to live till age 75) and Rs 12,000 take home pay for the spouse, investment income of Rs 6,000 and reduction in work-related expenses of Rs 2,500, we arrive at a monthly income requirement of Rs 18,090 for the rest of his life.
The problem with the available options is that the person concerned will be able to get accident cover till 60-72 times of his income. This means that such a cover will work for him, at best for a decade.
Need for larger and wider covers. The example clearly indicates the urgent need for larger accident covers for all kinds of contingencies arising from accidents. There is also the need for other products that would cover other forms of disability.
Remember, disability may not just arise from accidents - it can occur from illnesses and diseases, economically crippling a person for the rest of his life. While the job is cut out for the insurers, meantime, you can at least ensure that you get a cushion that's available to help you recover in case you are hit badly in a moment of bad luck.
Smart tipGet a standalone accident cover from a general insurance company in order to get a discount of 10 per cent by covering other family members against accidents.
Cover Needs

1
Take-home salary
25,000
2
Reduction in expenses
2,500
3
Spouses' take home salary
12,000
4
Income from investments
6,000
5
Current disability income
4,500

needs [1-(2+3+4)]
6
Inflation adjusted disability income needs1
31,680
7
Disability income needed in future2 (5+6)/2
18,090
Assumptions: Permanent disability, Long-term inflation rate: 5 per cent; Current age: 35; life expectancy: 75 years 2Average of pre- and post-inflation figures

Tips for life insurance policy

2008-06-08T04:07:00.000-07:00

The purpose of life insurance is to give a certain amount to the claimant's family in case of his/her death and/or disability.
BENEFITS OF LIFE INSURANCE:
1. Gives a large amount when your family needs it most.
2. Saves 20% income tax on total premium paid.
3. Gives the safest and good returns on your investment.
4. Can have loan against your policy on low interest.
If u are going to have a policy, please read this: Choosing right policy itself saves a lot of money.So, first have a look at this.
TIPS TO CHOOSE RIGHT POLICY:
1. If you want large risk cover in minimum premium, TERM INSURANCE policy is there for you. But you will not get the premium back, no bonus, purely risk cover.
2. If you want medium large risk cover in a bit higher premium, go for ENDOWMENT POLICY, like Triple Cover. Gives all premium back with around 6% bonus.
3. Some people say what is the use of insurance after death. So for them MONEY BACK POLICY is there, which returns you the premium you paid after certain intervals and gives risk cover also.
4. For HIGH RETURNS, there are now Equity Lined Insurance policies available. They give a return of around 20-50% a year but the risk cover is LESS.
TIPS TO SAVE THOUSANDS:
1. CHOOSE YEARLY PREMIUM OPTION FOR PAYMENT because YEARLY premium is LESS than monthly, quarterly, or half monthly. PLUS put a certain amount in Recurring Account of your bank. You will earn 6-7% interest on it that is equal to one monthly premium. This way you will be saving minimum 1000 to 10000 Rs. depending on your premium.
2. When you agent files your claim, he gets 25% of the premium as commission. Therefore, some agents PAY FIRST TWO MONTH'S PREMIUMS. This will save you another Minimum 1000-20000 Rs.
3. Ask for different RIDERS on your policy. They are small additions to your premium with high facilities like critical illness, accident cover, etc.
4. As less your age is, as less the premium is. So if you have not yet insured, then you will be loosing a big amount because u have to tak life insurance, as it is compulsory for loans, foreign travels, education, etc.
There are thousands of government and private companies providing insurance cover.

Auto Insurance Basics

2008-06-07T05:07:00.001-07:00

Insurance Basics
Insuring your vehicle isn't just a great idea--it's a legal requirement. Even if you drive your vehicle just a few kilometers a month, you should insure it to protect yourself and those around you. Your brand new vehicle and it gets hit by someone who mistakes a highway for space, and his vehicle for a space shuttle. Insurance can pay for your financial loss, at least.

Let AutoIndia.com and our partners help you competitive insurance rates and schemes today. Find the best rates and coverage for your vehicle through our partnerships with online insurance companies. Here you will be able to find and compare the best rates to fit your budget for vehicle insurance.
What is automobile insurance and do I need it?
Your vehicle may be your long cherished 'Palace on wheels' or one that can barely be called a four-wheeler but the very fact that it has to ply on rough and tough Indian roads, should be reason enough to insure it.Consider what your vehicle has to endure - potholes, open manholes, puddles, dirt roads, our traffic management system, poor pedestrian management, absence of footpaths for pedestrians, jaywalkers and an increasing number of accidents are few of the stark realities.
What is insured?
Any light motor vehicle used for social, domestic and pleasure purposes and for the insurer's business.
Who can insure?
Individuals and corporate owners of the private vehicles and the financier of the vehicle having insurable interest in it.
Insured against what risks?

1(a)
Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act.

1(b)
Riot and strike; terrorism; earthquake; flood, cyclone and inundation.

1(c)
Whilst in transit by rail, road, air, elevator, lift. Perils under 1(b) can be deleted and a discount in premium availed.
2
Liability for third party injury/death, third party property and liability to paid driver.
3
On payment of appropriate additional premium, loss/damage to electrical/electronic accessories, PA cover for drivers, insured or any named person, unnamed passengers can also be taken.
4
Certain discounts in premium are also available.
Vehicle insurance under such unsafe conditions is a must not only to cover risks towards yourself and your own vehicle but also to cover the financial liability that may arise from an accident in which the other party is injured.
Consider the exorbitant cost of repairs that you would have to pay to the other party in case of an accident.
Besides if the accident involves hospitalisation too, the expenses can go through the roof.
It would be a great burden if all these costs had to be borne by you. But if your vehicle is insured the insurance company can be of great help. It can indemnify you against such losses and the financial liability that would have been solely on you is taken over by your insurance company.
What will policy pay and how much?
Own Damage

Actual amount spent for repairs/replacement subject to depreciation and sum insured as per survey report.

Garaging and towing charges - up to Rs 1000/

Damage to tyres (when vehicle is also damaged) - 50 % of cost of replacement.

In case of total loss, market value at the time of loss or sum insured whichever is less.
Act Liability

Death or bodily injury to third parties - Unlimited

Death or bodily injury to any person carried in the car provided they are not insured employees and not carried for hire or reward - Unlimited

Liability to paid driver - As per W. C. Act

Third party property damage - up to Rs 6000/-

All costs and expenses incurred with company's written consent
In case of death of the Insured/any person entitled to indemnity for a liability incurred under this Policy, his personal representative will be indemnified ,as in the case of insured, if he observes all conditions as the insured himself.
When will policy not pay?

Consequential loss; depreciation; wear and tear; mechanical and electrical breakdown; failure or breakage.

When vehicle is used outside the geographical area; when used contrary to limitation as to use; driven by a person other than the driver stated in driver's clause.

War perils, nuclear perils and drunken driving

Auto Insurance Basics

2008-06-07T05:07:00.000-07:00

Auto Insurance Tips

2008-06-07T05:03:00.000-07:00

Why insures avoid third party covers?
Soon, getting the mandatory third party cover even from public sector non-life companies may become difficult as they too are going the private insurers’ way - avoiding underwriting third party covers. While for public sector insurers exceedingly high third party claims even over 200 percent was nothing new, a number of private non-life insurers who took the plunge into motor insurance with offers of quick claim settlements and several other had to shut shop within six months time - reason high third party claims. But now public sector non-life companies too are slowly avoiding underwriting third party covers taking into account the small premium payable and the mounting losses. Besides consider the huge number of cases lodged at the Motor Accident Tribunal and the figure could be astounding.Since third party cover is compulsory, and it also being a loss making business, state owned non-life insurers are working out ways to reduce third party claims. In case of renewals state insurers are loading third party covers with a premium of over 100 percent to be on the safer side.The recently introduced new motor tariff that will come into effect from the following July 1 has capped the third party premium at a maximum of 200 percent. General insurers have also decided not to have their agents canvass for third party covers unlike previously. With private as also public sector insurers working out ways to shun third party covers come their way the insurance regulator may soon have to step in to make underwriting third party risks mandatory.
Are you a car owner? Find out the changes on Insurance happening
From July 1 expect a steep hike in your motor insurance premium for the new motor tariff policy will come into force and major changes are in the offing especially for private car owners. In case you have a bad claims history get set to shell out a higher premium on policy renewal. But even if you have been a cautious driver with a claim-free record you do not stand to benefit much unlike earlier times. The new tariff policy allows a maximum discount of only 50 percent on premium in the fifth policy year and if you file even once for a claim within those years your discount on renewal will be nil and not reduced to the previous years level. In other words, no rewards for a claims-free past. As per the new motor tariff policy all cars will be rated on the basis of cubic capacity. Which means advanced technology and safety features of your vehicle will not be taken into consideration. Your vehicle’s insured value will be determined on the basis of the insured’s declared value (IDV), which will specify the percentage of depreciation. Which means indemnity for total loss/constructive total loss will now be based on IDV instead of the earlier IEV or market value. What is Insured’s Declared Value (IDV)? For the purpose of Total Loss/CTL Indemnity and for Premium computation, IDV will be the Sum Insured. It will be determined and fixed at commencement or each renewal of your policy. Fixing IDV:For the purpose of fixing the IDV of the vehicle, the reinstatement value of the brand and model of the vehicle (with side car (s) and /or accessories if any fitted to the vehicle but not included in the manufacturer’s list of selling price of the vehicle) including the road tax paid, proposed for insurance at the commencement of insurance/renewal period should be adjusted for depreciation. The age of the vehicle will be considered at the time of insurance/renewal. Given below is the schedule of depreciation for IDV Private Cars/ Motorised two wheelers :
Age
Depreciation
Not exceeding 6 months
Nil
Exceeding 6 months but not 1 year
10%
Exceeding 1 year but not 2 years
15%
Exceeding 2 years but not 3 years
25%
Exceeding 3 yrs but not 4 yrs
30%
Exceeding 4 yrs but not 5 yrs
35%
Exceeding 5 yrs but not 10 yrs
45%
Exceeding 10 yrs
50%Following is the Schedule of depreciation for IDV Obsolete Model of Private cars and Motorised two wheelers.
Age
Depreciation
Not exceeding 6 months
5%
Exceeding 6 months but not 1 year
15%
Exceeding 1 year but not 2 years
20%
Exceeding 2 years but not 3 years
30%
Exceeding 3 yrs but not 4 yrs
35%
Exceeding 4 yrs but not 5 yrs
40%
Exceeding 5 yrs but not 10 yrs
50%
Exceeding 10 yrs
55%claims : In case of claims the maximum liability will be the sum the vehicle is insured for or the insured's declared value which will be the amount payable in case of total loss or constructive total loss (CTL) irrespective of the market value of the vehicle. also in case repair costs go over 75 percent of the IDV it will be taken to be a CTL.Do you have an anti-theft device installed in your vehicle? Well, heave a sigh of relief for you'll be eligible for a maximum discount upto Rs 500 on your insurance premium.

Why you won’t get insurance for your old vehicle?
Unlike earlier times, you may not be able to get comprehensive cover for your over-seven year old commercial vehicle anymore. And if you are the proud owner of either a Qualis, Sumo Lancer, Palio or an Indica, be known that your chances of getting a risk cover from the new private insurers is simply out of question. The reason is, third party claims are going over 130 per cent - the bane of the non life insurance sector which is why general insurance companies have unanimously decided not to henceforth issue comprehensive covers for vehicles more than seven years old. While state owned non-life insurers bled all these years, the experience of private non-life insurers who flagged off their business only recently, is also no different. With claim ratios crossing 90 percent, private insurers are getting increasingly selective while underwriting motor policies. They issue risk covers only for new vehicles but surprisingly covers are not being issued for the Qualis, Tata Sumo, Palio, the Lancer etc - vehicles that are reportedly being used as private taxis. Some private insurers have altogether shut down their non-life business due to mounting losses. ICICI Lombard suffered huge losses with claim ratios going upto 120 percent and it is now reworking its strategies. State owned insurers have found that providing comprehensive cover for old vehicles is a loss-making proposition. This is because car owners in a number of cases deliberately crashed their old vehicles only to claim insurance money. Also with high cost of spare parts it was not feasible to continue with the present system of coverage. The government, to save the already ailing non-life sector, initiated the new tariff policy, but its implementation has been postponed to June, which has further worsened the situation. Now private insurers have initiated stringent scrutiny of proposals by checking for past claims experience of the policyholder among others before issuing risk covers. Also policy documents are worded carefully and the fine print henceforth will carry more deductibles than before in order that the policyholder does not in anyway financially benefit out of insurance but is only appropriately indemnified for the loss incurred.
Discounted Sale of Vehicle Policies
Heavy discounts are offered up to 65 percent on premiums to entice renewal of comprehensive motor policies. But there is no merit in this move. Obviously, the industry which is actually reeling under heavy odds cannot afford this. It is in the interest of the industry and the insuring public to dispense with this luxury. It is time the industry addressed this as an internal reform of the present premium structures. It is a considered opinion that the Motor Insurance portfolio is prone to losses and the attempts of the industry at increasing the premiums to balance the portfolios is thwarted by the 'authorities' with advice that the insurance Companies must manage their operations efficiently without resorting to price hike. Hence it appears illogical for the insurance companies wanting to increase the prices on one hand and offer discounts in premiums without being obliged to do so. The insurance industry should take into consideration and canvass the following aspects to strengthen their hands in favour of withdrawing the discounting practice. Discount sale of the policies is only on renewals and this does not bring in any fresh business. The discounts continue to be offered even if the renewal is not with the same company and there is no advantage.An insured who has not preferred a claim should be rewarded is against natural justice. A valid claim is out of an unfortunate event and not out of willful act of the insured. An insured is penalised for his preferring a claim which is due to pure accident. Careful driving is an implied condition and there need not be any rewards for it. If careful driving should be rewarded, any person with a valid driving license can drive a car and the contribution of the insured is nil with regard to careful driving. Then why is the insured rewarded with discounts? The discount is offered to the insured though personal element has disappeared.Discounts have various adverse effects also. When the insured insists upon earning the discount, he will omit to report an accident to the insurer as required of him by the very first condition of the Insurance contract since he may loose the discount and continue to use the car without carrying out repairs and damage may be accumulated.By not reporting the accident, he may even precipitate matters in case of third party claims which may be too late for the insurers to deal with. In case of knock for knock agreements, if the insured using the car is not to be blamed for the accident he gets his claim paid and also enjoys the discount in premiums.Nowadays, cars are fitted with plastic accessories wherever practical. These being fragile, higher percentage of depreciation ought to have been charged as was practiced earlier. Instead, depreciation itself is withdrawn deviating from the principle of Indemnity and the claims can be said to be subsidised.The sum insured is selected by the insured and the market values are not insisted upon for premium payments. He gets away without no penalty for under-insurance and the full claim amount is paid in case of partial losses. Extra premium should be charged on the amount of the loss to reinstate the sum insured. It is true that there will be a spurt in the claims when the discounting system is withdrawn. The solution lies in introducing policy excess. It seems strange that almost all the policies are subject to policy excess but not motor insurance. There are no policies without deductibles in other countries. In case, withdrawal of discount would give undue advantage to habitual claimants, then the claimant should be considered as a moral hazard and renewals considered on merits. It is viewed that if the discount system is vitiated there should be improvement in premium and claims ratio for the comfort of the Insurance Companies in managing their Motor portfolio and it may go to the benefit of the entire insuring public too as it may result in overall reduction of premium structures as a long term planning.
Has your car been stolen? No need to worry
You parked your car as usual in the parking lot. When you returned you were in for a big shock. Your car was missing. Panic-stricken, thoughts of the gaping hole it may leave in your pocket, envelope your mind. Not quite - if you have adequate insurance for your vehicle.Following is the claims procedure to be followed under such situations: When you realise your vehicle has been stolen, inform the police immediately. Also inform your insurance agent. Chances are you may have also lost your Registration Book too (if you carried it in your vehicle always). In such a case obtain a duplicate one from the Transport Authorities immediately.Keep in touch with the nearby police to know the progress of the investigation. If your vehicle has not been traceable for a reasonable period of time get a report from the police stating so. Once your vehicle is traced immediately inform the insurance company. Requirement For Claims: Intimation and policy. Filled in challan form. FIR copy. Untraced report. Intimation to RTO about theft. If RC is stolen along with the vehicle, applications to RTO for a duplicate. Consent letter. Discharge voucher from the authorised signatory.Letter of indemnity and subrogation on stamp paper of Rs.10/-. Ignition keys.

Tips on buying the right insurance

2008-06-07T05:01:00.000-07:00

In India, insurance is broadly divided into life and general insurance. Life insurance covers a family against the financial implications of the death of the insured.
In addition, it may also provide certain survival benefits, in case the policyholder survives the policy term. Life insurance policies are broadly termed as "benefit policies".
General insurance is a broad term encompassing protection in several areas such as health (For some strange reason, it is not treated as a part of the life insurance sector), property, professional liability among others. These are usually "non-benefit" covers. They will only reimburse losses suffered and not confer any additional benefits to the policyholder.
We shall discuss individual heads of insurance and the products therein in greater detail in later articles.
Before deciding whether you require insurance or not (although all of us certainly require it in some form or the other), take the following into consideration:
The probability and impact of an event:
Assess the probability of an event and its financial impact on you, before zeroing in on a policy. Of course, an element of intuitiveness, is contained in the estimation but it is preferable to a random choice.
For instance, a shopowner in Mumbai can consider an earthquake as an event, which will occur infrequently but may still opt to insure against it, as the financial damage in case of an earthquake, could be significant.
Also, if the event occurs infrequently, the premium charged by an insurance company is also low. If an event occurs very frequently (like earthquakes in Japan), the premium will be high. Of course in the case of life insurance, although death is a certainty, the financial impact of death will vary with age, and the number of dependents.
Will I be adequately insured?
Merely having a cover is not enough. Take care to ensure that the cover is adequate for you. Too small a cover is virtually pointless, considering that it will not serve yours or your family's purpose.
Too much insurance will mean wastage of precious money towards payment of premiums. There are certain techniques to help you estimate the right quantum of cover. We will discuss these later.
Can I afford it?
We should take care that insurance premiums do not eat into a huge chunk of our income. This is especially important in case of long-term contracts such as life insurance. This may mean working backwards, and calculating the size of the cover, based on the premium afforded by you.
Beware of agents who try to hard sell you high-priced insurance covers, as they may be detrimental to your long-term finances.
Two of the most common mistakes committed by customers in the case of life insurance are:
Income tax-led decisions:
While contributions towards life insurance premium of up to Rs 100,000 can be reduced from "gross total income" under section 80 C, there is no need to be guided solely by this consideration. Also, do not wake up to the need for insurance only in the final quarter of the year.
By doing so, you are only playing into the hands of agents who will exploit your urgent need to save tax and sell you policies that are not really suited to your needs. Let tax saving be incidental to choosing a cover, not the sole force behind it.
Bundling insurance and investments:
Unfortunately, globally, over the years insurance products has been sold more as an investment tool rather than a 'protection' vehicle. The nomenclatures change (endowment policies, money back policies, and unit-linked plans) but the underlying principle remains similar.
Agents often succeed in their efforts owing to the following factors:
Providing rosy illustrations of future investment returns, conveniently side-stepping the basic question of whether the coverage amount contained therein is adequate or not.
Stressing that an insurance-cum-investment policy compels the policy holder to be disciplined in their savings program and this aids in long-term wealth creation.
Several studies have proved that unbundling of the insurance and investment aspects lead to better overall results. Of course this will call for investing discipline on the part of the policyholder, but that is another story altogether.
I feel that apart from insurance agents, consumers too are responsible for the so-called mis-selling. Against this backdrop, we will look into specifics of different policies from the next article onwards.

10 Ways To Work Through A Business Slowdown

2008-06-07T02:25:00.000-07:00

In running any kind of business, it's inevitable that sometimes business will slow down. This might occur due to an upcoming holiday, seasonal variations, or uncontrollable circumstances. As a small-business owner, you have a choice in terms of how you view the slowdown - it can either be a time of increased stress, frustration, worry - or you can view it as an opportunity to upgrade your business processes or improve the quality of your life. Here are ten strategies you can use to work through a business slowdown:1)Market more concertedly. Statistics suggest that new businesses spend (or should spend) about 40-60% of time in marketing and related activities. If you are experiencing a business slowdown, it's always a good time to create and launch another marketing initiative. It is important to continue to promote your business creatively and cost-effectively. What better way to spend a slow period than in taking actions to attract new business? (Plus, taking action will keep worry or stress from overwhelming you.) 2)Relax. This strategy works if you are feeling good about your business and your accomplishments. Use this time to catch up on some sleep, read a few good books, in short, take some time off for rest and relaxation. Sometimes, time away can help spark creative ideas or profitable insights.3)Get ahead. Use slow time to get ahead on weekly or monthly projects. Look ahead to future months and see if there are any steps you can take, today, that would position you more solidly in the future. This can help you feel more in control as the pace picks up again.4)Invest in additional training/learning. A business slowdown is a great time to upgrade your knowledge and skills, you have the time and the incentive. Take classes, learn more about your industry, become even more valuable to your customers by adding new products or services based on your new knowledge.5)Follow up with old/existing customers. Most small businesses focus more on getting new customers rather than retaining old ones. A business slow down is a great time to get back in touch with your customer base to find out what needs they have, to remind them of your service, or to offer them special discounts for reactivating their accounts. It's always easier to sell to someone who has bought from you before - so make the extra effort to stay in touch.
In running any kind of business, it's inevitable that sometimes business will slow down. This might occur due to an upcoming holiday, seasonal variations, or uncontrollable circumstances. As a small-business owner, you have a choice in terms of how you view the slowdown - it can either be a time of increased stress, frustration, worry - or you can view it as an opportunity to upgrade your business processes or improve the quality of your life. Here are ten strategies you can use to work through a business slowdown:1)Market more concertedly. Statistics suggest that new businesses spend (or should spend) about 40-60% of time in marketing and related activities. If you are experiencing a business slowdown, it's always a good time to create and launch another marketing initiative. It is important to continue to promote your business creatively and cost-effectively. What better way to spend a slow period than in taking actions to attract new business? (Plus, taking action will keep worry or stress from overwhelming you.) 2)Relax. This strategy works if you are feeling good about your business and your accomplishments. Use this time to catch up on some sleep, read a few good books, in short, take some time off for rest and relaxation. Sometimes, time away can help spark creative ideas or profitable insights.3)Get ahead. Use slow time to get ahead on weekly or monthly projects. Look ahead to future months and see if there are any steps you can take, today, that would position you more solidly in the future. This can help you feel more in control as the pace picks up again.4)Invest in additional training/learning. A business slowdown is a great time to upgrade your knowledge and skills, you have the time and the incentive. Take classes, learn more about your industry, become even more valuable to your customers by adding new products or services based on your new knowledge.5)Follow up with old/existing customers. Most small businesses focus more on getting new customers rather than retaining old ones. A business slow down is a great time to get back in touch with your customer base to find out what needs they have, to remind them of your service, or to offer them special discounts for reactivating their accounts. It's always easier to sell to someone who has bought from you before - so make the extra effort to stay in touch.

Mortgage Advice

2008-06-07T02:23:00.001-07:00

What They Don't Want You To Know
The annual percentage rates (APR) is mandated by the Congress of the United States to be given us, the borrowers, in our disclosure documents prior to and upon closing of a mortgage loan. Yet, even the most astute mortgage professionals have only a cursory knowledge of this important measuring device. The industry, as a whole, knows little about how the mathematics of this measure actually works or how a higher interest rate with less in fees could actually be the better loan.
Why Ask?
The first question that should be asked of a lending source, whether you are dealing with a mortgage broker or a mortgage lender, should be "What is the annual percentage rate?" and not "What is the interest rate".
Cost Disclosure
Let's discuss what APR was meant to disclose and how it should be used. Let's start with a hypothetical mortgage of a 7.00% - 30 year mortgage of $100,000 that has an origination fee (commission) of 1&1/2 points (1&1/2% of the loan amount or in this example $1,500) and other fees of $2,500. Sound pretty good? The APR is 7.409%. What happened to the 7.00%?
Mortgage Math
You are paying $4,000 to borrow $100,000. In effect you are only getting $96,000, but will pay back the full $100,000 with interest.
Another way to look at understanding the annual percentage rate is: The $4,000 of fees in the above example divided by 30 years is $133.33 per year of additional interest . What happens if we pay this loan off in 5 years? The APR jumps to 7.998%. The fees we pay are spread over fewer years, increasing the costs per year. The $4,000 in fees divided by 5 years sky rockets to $800 per year of additional interest .
See if you can guess which is the lowest cost loan:
Example # 1 - 30 year fixed rate loan at 6.875% with 2 & 1/2 points origination fee and additional fees of $2,443
Example # 2 - 30 year fixed rate loan at 7.000% with 2 points and additional fees of $1,943
Example # 3 - 30 year fixed rate loan at 7.125% with 1 & 1/2 points and additional fees of $2,143
The correct answer is Example # 1 with an APR of 7.381%. Example # 2 and Example # 2 had APRs of 7.403 and 7.500 respectively.
Now let's apply some reality to the above examples. Fewer than 5% of all 30 year mortgages are kept 30 years. What if this loan is paid off in 5 years?.
Give up? Example # 2 with an APR of 7.984% #1 had an APR of 8.113% and #3 8.035.
When you next shop for a mortgage, what is the first question you should ask? And if THEY can't answer, before hanging up, tell THEM that "the APR is the measure of all of the costs of a mortgage expressed as an annual percentage rate".

Tips for Successful Trading

2008-06-07T02:21:00.001-07:00

Elements of a Successful Trader
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is extremely difficult to do when your own real money is put at risk.
You will feel anxiety, even fear. Here lies the moment of truth. Do you have the courage to be afraid and act anyway? When a fireman runs into a burning building I assume he is afraid but he does it anyway and achieves the desired result. Unless you can overcome or accept your fear and do it anyway, you will not be a successful trader.
However, once you learn to control your fear, it gets easier and easier and in time there is no fear. The opposite reaction can become an issue – you're overconfident and not focused enough on the risk you're taking.
Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who's overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We can correct any deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital.
Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.
The difficulty doesn't end with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement.
For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.
The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like “what if news comes out and you wind up with a loss”. The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).
So your fear is just a baseless annoyance. Don't try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.
Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards – this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?
If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you're a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.
Patience to Gain Knowledge through Study and Focus
Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1.
To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon.

Forex and Stocks - e-Forex Tips

2008-06-07T02:19:00.000-07:00

10 Tips For E-Forex
Without a doubt, trading is more than a few quick tips for success. You need experience, fortitude, capital and, above all, a solid trading system. However, for beginners and those who perhaps are losing their focus amid significant drawdowns, keeping things simple can introduce much-needed focus into your trading.
To that end, here are 10 tips for trading e-forex that can help you get a handle on these exciting markets.
For small accounts especially ($25,000 and under), trade with the trend. Many beginners look for trades in any direction. While forex trading easily permits bi-directional trading, trading in the direction of the trend improves your odds over the long run.
Have two accounts. One real account and the other a demo account. Learning doesn't stop when trading real dollars begins. Keep the demo account and use it to test alternative trades, alternative stops, etc. For example, you can shadow your real trades with identical ones in your demo account, but widen your stops in the demo in an effort to see if you're being too conservative.
Stop looking for leading indicators. There aren't any. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.
Examine daily charts, four-hour charts and one-hour charts to time your trades. While trading at 30- and 15-minute time increments is doable, it takes a great deal of dexterity.
Don't trade the time frame. Trade the pattern. Reversal patterns, hesitation patterns and breakout patterns appear often. Learn to look for the pattern in any time frame.
If you're properly funded, trading two lots is safer than trading one. Trading three lots is safer than two. Trading is a synthesis of emotions, technical analysis and money management. One lot makes it difficult to weigh these elements in deciding to enter or exit. Two lots is easier and, providing you have the capital, three lots is optimal.
Extreme trading can be the most conservative trading. Trading at the extremes when prices touch or break or bounce off trend, support or resistance lines increases the odds that you have chosen the correct direction.
Scan the Big Five the dollar/yen, euro/dollar, Swiss franc/dollar, euro/yen and pound/dollar before you decide to take a position in any one of them. There might be something obvious you're missing.
Follow the Upside Down Rule. If you can turn a chart upside down and it looks the same, stay away.
Don't count profits in your first 20 trades. Keep track of the percentage of wins. Once you know you can pick direction, profits can be increased with multi-plot trading and variations in using your stops. In other words, now is the time to get serious about money management.

Myths about Credit Reporting and Debt Management

2008-06-07T02:17:00.000-07:00

Myths about Credit Reporting and Debt Management
There is a lot of information about credit reporting and debt management on the internet; there is also a lot of misinformation floating around out there too. Here are 10 myths about credit reporting and debt management, as well as the cold hard facts.
Myth 1: Paying a debt will remove it from your credit report.
Late payments, delinquent accounts, tax liens and collections will usually stay on your credit report for seven years from the date of the delinquency, even if it's since been paid. Having a delinquent account on your credit report can substantially lower your credit score, however, the more remote it is - the farther in the past - the less likely it is to have a large impact so long as the debt is reported as paid.
An unpaid negative account will continue to lower your overall credit score.
Myth 2: Canceling your credit cards will improve your credit score.
Not true. Approximately 15% of your credit score is based on the length of time you've had credit reported. If you close a card you've had for a long time, leaving only newer cards open, you're effectively shortening your credit history. 30% of your credit score is based on the amount you owe in relation to your total lines of credit, so keeping a card open that has a zero balance can help you keep your total available credit high in proportion the balance you carry, which can help raise your score. Of course, the total mix of accounts is factored in there too, so having too many open cards isn't advisable.
Myth 3: Your credit score is the same at all three credit bureaus.
Each of the three major credit bureaus, Equifax, Experian and Trans Union, generate their own scores based on the information that is reported to them. If a particular creditor only reports to Experian, then your score at Equifax and TransUnion won't take that creditor's information into consideration when calculating your score, resulting in a different score.
Myth 4: Routinely checking your credit report will lower your score.
Your credit score isn't affected by inquiries that are made for marketing purposes, or that are initiated by you for the purpose of verifying the accuracy of your credit report. Additionally, while marketing inquiries are reported on your credit report, your own request for a copy of your report is not shown, nor is it reported to your creditors.
Myth 5: Shopping around for a loan can damage your credit score.
Rate shopping should not affect this factor because the inquiries will be made for a particular type of credit during a short period of time. If the same types of inquiries are made within 14 days of each other, they only count as one inquiry on your credit report, although this only applies to loans, not to credit card inquiries.
Myth 6: Paying cash helps increase your credit score.
Paying cash is a great way to stay out of debt, but it can hurt your overall credit score. Your score is determined by your credit history, which means having and using credit; paying cash for everything, unless you're using it to pay your credit card bills in full each month, won't show up on your credit report, nor will it help you establish a positive credit history.
Myth 7: Marrying someone who has poor credit will hurt your credit score.
Although getting married generally means that you'll be combining finances, your credit reports won't be combined. If you open a joint account, the credit information will show up on both reports, but your (or your spouse's) past negative credit history won't be reflected on the other person's credit report unless you add your spouse to an account that has a negative history.
Myth 8: Co-signing for credit doesn't make you responsible for the loan.
Many parents make this mistake when they help their child buy a car. If the primary loan recipient is not able to pay, the co-signer is responsible for making the loan payments. Period. It doesn't matter who has possession of the car (or other collateral), the creditor will come looking for the person who is most solvent.
Myth 9: Negotiating a settlement on a debt won't hurt my credit score.
While it helps to have a debt marked as “paid”, you'll need to remember that unless you pay the full amount of the debt, the creditor is within its rights to report the debt as “charged off” or “paid a negotiated amount”. You can ask the creditor to report the item as “paid as agreed” when you negotiate a settlement of the account; make sure you get that in writing though.
Myth 10: Making a late payment won't affect my other credit accounts. It shouldn't, however, the universal default clause that is included in most credit card agreements allows a creditor to raise your interest rate if you make late payments on other credit accounts.

Financial Advice

2008-06-07T02:15:00.000-07:00

Financial planning is a lifelong journey where knowledge is key. The more you know about successful financial planning the easier it will be to make smart financial decisions. When looking for financial planning advice it is important to consult with a financial planning expert, poor financial information and decisions can be disastrous. Not saving properly for retirement can lead to a reduced lifestyle in later years, poorly managed tax preparation could lead to large unexpected tax debt, or an unwise investment could result in the financial loss of accumulated wealth.
This is why BestFinanceTips.com has been established. We have compiled financial planning information from some of the best financial planning resources available. Learn about home mortgages, debt consolidation, real estate investing, forex trading and more. At BestFinanceTips.com we have information available to help you with almost every aspect of your financial planning needs now and in the future.
General Financial Advice
Before entering our site here are some finance tips which you may find useful in helping you achieve your financial goals. Pay yourself first. Invest at least 10% of your income in consumer debt repayment or in some type of investment account. To make real financial progress you must reduce your liabilities and increase you assets.Establish specific written financial goals. Set short term, medium term and long term objectives for yourself and your family. Review and update your goals regularly, no less than annually.Make a realistic spending plan and use it. You must plan how your income will be used or someone else will! Track your expenditures using receipts, a notebook, or whatever is convenient for you.Learn about the different types of insurance available. Buy only what you need to cover a specific risk. Increase deductibles to the highest amount you can afford.Stay current with your finances by reading regularly, taking courses and working with your own personal financial coach. If you've heard all of this before but haven't acted on it, now is the time to move forward! Remember knowledge without action is ultimately the same as not knowing.

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