Posted tagged ‘mumbai’

Book on Retirement : Retire Rich Invest Rs. 40 a day

January 23, 2010

Book written by me….

RETIRE RICH INVEST, 9789380200071

book review that I found online…

About the Book : – To most people retirement is an age. It of course depends on your health, the company you work for etc. However in the first chapter I would like to introduce you to the concept that retirement is an amount of money! After all, if you have that magical amount why not retire early?

The second chapter takes you through the steps and importance of planning, and to the dangers of not planning.

Retirement is a goal and has to be approached in a financial planning mode. Retirement Goal Setting becomes important. How much money is adequate for a person to retire? Here is a generic answer telling you what are the factors to consider while trying to answer this question. This chapter has many pointers and a calculator which leads you towards the answer.

Can you really retire by investing an amount as little as Rs. 40 a day? The answer is yes it is the power of compounding. If you do have or time on your side, it is possible to create a retirement corpus on an amount as small as Rs. 40 a day. And the fantastic thing is that this small amount can be got by making simple changes in your life style.

If you have accumulated money for your retirement, you should also know how to withdraw. Here we deal with what is annuity, what are the methods of creating annuities, what options are available, and the works about annuity.

A few chapters are devoted to answering how much and what type of insurance should you look at during retirement, the attitude of the Indian family to retirement, the need to make a will, some retirement blunders, etc.

What is interesting are the tables at the end of the book telling you how much to save and invest – and case studies about portfolio make over for retirement.

Available at the following shops:

Twistntales (Pune) Shop1, Siddarth, Gaikwad nagar, Aundh, Ph:-020-25881465 / 25899745

Paperback (Thane) Dayanand – cell no. 9967255843  022-21714414

Bookzone, Fort, Mumbai. (022-25054616/17)    All Crossword Stores in Mumbai and New Delhi.

New Delhi: Jain Book Agency (011-4151380), Land-Mark (0124-4143020), Om Bookshop (011-46075621), Pages (011-46132001).

Chennai: Landmark – has the copies. Odyssey not sure..Crossword has it..

Also available online from cnbc..check out on google..


Charitable Ideas!

July 13, 2008

When a friend called me to say he is making a donation, I got greedy. She works for a large organisation, so instead of jumping at her offer, I asked her to call for a meeting of 20 of her friends – and I would make a small 15 minute presentation on akshayapatra!

I am posting this because in case you can get together a few of your friends, a couple of us here at Mumbai would like to come and talk to your group about having a well fed and educated Indian kids – all of them by a specific date!

Thanks in anticipation….

Inflation and mathematics

June 20, 2008

A pyt in our office today asked a very innocent question. If inflation has gone up from 9% to 11% in a week, next week will it be 14%?

Well the truth is I do not know. However I do know that if it rains 90mm in Mumbai, and it does rain like that for 3 months, Mumbai will be drowned. If the Sensex falls 300 points a day, over 50 trading days the sensex will be zero. This is the problem with mathematics – the user has to know when to stop pulling the mouse! Yesterday one website claimed that Mum -London fares had fallen by 27% over the past 10 years, so, the author reasoned you will be able to fly Mum – Lon @ some ridiculously low amount in the next 10 years. Now if you pull your mouse fast enough and long enough there will be some stage when you will be PAID for travelling Mum – Lon.

Just like the waiting time for a treatment at the NHS in the UK. Let us say today you have to wait 2 days for an abortion. Now if you pull the mouse long enough, surely there will be a stage when you may have to wait for 10 months……pretty useless a wait I guess!

So please use mathematics carefully!

Market view: S Nagnath DSP Merill Lynch

June 11, 2008

Why should you know Nagnath’s view on the market? When the whole world was pessimistic about India he predicted huge cash inflows. I may not be too wrong if I say that he predicted the bull run in 2002, not in 2008! He always has a balanced view and gives excellent quotes and views to the media.

This is what he had to say at the India equity show – a show organised by at Worli, Mumbai.

When quizzed about the Golden rule of investing, Nagnath quoted somebody (Anon) and said “The man who has the Gold makes the rules”. Apart from sounding good I guess what it means is the importance of cash flows. If the valuations are good, the market is attractive. However for the market to go up, there has to be somebody who puts in the cash. My personal view is that the money can come in from Unit linked Insurance and mutual fund sales – to compensate and more than compensate the FIIs taking money out of the country.

One thing apart from liquidity predictions and analysis is that many people who predict things may get it wrong. When the US $ started getting weak and there was a need for many Americans to go away from the US $, the cash flow caused the Emerging Markets and commodities to boom. Now if there is a reversal, we need to be ready for the same.

When markets go up, we rationalise. When markets go down, we rationalise.

Then he spoke about “regression to the mean” – if you are expecting say 15% p.a return over a 15 year period and you have had a bull run for 4 years where you got say 100% return, maybe you take some profits and keep it away. Similarly if you have got a -13% p.a. for say 4 years maybe you pump more money into the market. My take is “continue your SIPs, stay away from Unit Linked plans” theory will work well.

What causes this tendency of the market to run far ahead of earnings or lag the market for long periods of time? It is cashflow – created by euphoria or by excessive pessimism.

Nagnath also said it is difficult to take a long term view because of the crisis in the US and European markets. He called it an unprecedented short term market crisis – and similar crisis seems to have hit the western world only in the 1930s.

He took a nice dig at Bank balance sheets – and said that after the sub prime crisis, in a bank balance sheet if you saw on the “left side” there was nothing right and therefore quite obviously when you saw on the “right side” there was nothing left. He said that banks have very poor quality of assets funded by high leverage. We saw this in case of Bear Sterns, and now Lehman brothers is raising money for meeting its capital adequacy needs.

About the future Nagnath felt that the markets in the next 12 months are likely to be tough. He had no clue on whether we are finished with the sub prime crisis, are at the half way mark or in which leg of the journey we are. He felt the markets will be worse before it got better. He also predicted a market rally as and when the oil prices hit US $ 100 on the way down.

heard at a conference!

June 9, 2008

I attended the India Equity show at Worli Mumbai and heard the following quotes.

S Nagnath said “The Golden Rule of investing is that the man who has the gold makes the rules”

Sundaram E A (ex hdfc mutual fund) said “It is difficult to teach a man something, if his livelihood depends on not understanding that”. He did attribute this statement to somebody else, but I did not get that persons name.

Why are we poor? Or do we call ourselves poor?

May 19, 2008

I know it is difficult for many readers to accept that they are poor because they call themselves poor! Have we wondered loud enough about is India poor?

I regularly see articles and advertisement for houses costing Rs. 10 crores (2.5 million US $) – and many of the houses being sold out. Are they in the so called posh areas of the bigger cities like Mumbai / Delhi. Heavens, no. These flats are on the outskirts – one of them is about 40km from Nariman Point – on the way to Pune!

However, we require a big mind set change – we need to start saying “What can I do to afford it” rather than “We cannot afford it”. Robert T Kiyosaki can write books, many of us write blogs urging all of our readers to think positive – but ultimately to get rich, you have to do it.

It leads me to the saying “Every journey begins with a thought of doing that journey” – the first step itself a second step is it not?

To win, you need to think you can win. To be rich, you first need to think like a rich man…..that is step one.

an invite for an Investment event –

May 14, 2008

I had put this invite in the month of April /May of 2008. This event will be repeated in May / JUne of 2009 also – hopefully year on year every year….read on….

June 7 and 8 (2008) Nehru Centre, Worli, Mumbai, India will see an unique event for the retail investor. Many fund managers – (Nilesh Shah (icici prudential mutual fund), S Nagnath(dsp mutual fund), Madhu Kela (reliance mutual fund), Prashant Jain (hdfc mutual fund), Rakesh Jhunjhunwala (Rare enterprises) – an investor, Sanjoy Bhattacharyya, are all people who have spoken in the past), along with many company managements will come under one roof and give gyan on what to buy, when to buy, should you sell, etc.

It is a fantastic intellectual event happening for the 4th time, and the best part is it is free to the retail investor.

The title sponsor is Icici Direct and the silver sponsor for mutual funds is Mirae.

for registration