Since I have a back problem I follow news related to it. Now, researcher says don't sit up straigt its bad for you back, this is contarary what they found earlier in 90s. So I am confuse whom to follow or just don't care this kind of news. The research keep changing by the time you follow previous research its too late.
I think just ignore this kind of news, do what the best you figure out for you.
BTW, here is the article.
http://www.medicalnewstoday.com/healthnews.php?newsid=57654
Wednesday, November 29, 2006
Tuesday, November 28, 2006
Websites for the kids
http://www.pbskids.org
http://www.noggin.com/
http://www.junglewalk.com/
http://www.playhousedisney.com
http://www.starfall.com
http://www.thomasandfriends.com/usa/
http://www.nickjr.com/playtime
http://www.sesameworkshop.org
http://www.disney.go.com/playhouse
http://www.noggin.com
http://www.peepandthebigwideworld.com
http://www.bright-productions.com/kinderweb/
http://www.starfall.com
http://www.crpusd.sonoma.edu/Goldridge/kgames.htm
http://www.kinderhive.net/techgames.html
http://www.fisher-price.com/us/fun/games/abc/
http://www.fisher-price.com/us/playtime/default.asp?age=Toddler
http://www.enchantedlearning.com/categories/preschool.shtml
http://www.geocities.com/EnchantedForest/Dell/4678/kindergarten.html
http://www.barbie.com
http://www.thinkquest.org
http://www.noggin.com/
http://www.junglewalk.com/
http://www.playhousedisney.com
http://www.starfall.com
http://www.thomasandfriends.com/usa/
http://www.nickjr.com/playtime
http://www.sesameworkshop.org
http://www.disney.go.com/playhouse
http://www.noggin.com
http://www.peepandthebigwideworld.com
http://www.bright-productions.com/kinderweb/
http://www.starfall.com
http://www.crpusd.sonoma.edu/Goldridge/kgames.htm
http://www.kinderhive.net/techgames.html
http://www.fisher-price.com/us/fun/games/abc/
http://www.fisher-price.com/us/playtime/default.asp?age=Toddler
http://www.enchantedlearning.com/categories/preschool.shtml
http://www.geocities.com/EnchantedForest/Dell/4678/kindergarten.html
http://www.barbie.com
http://www.thinkquest.org
Thursday, November 16, 2006
Bill Gates Thoughts
Gates on dropping out of Harvard to start Microsoft: To be clear, I didn’t really leave. I went ON leave. I could go back.
On remaining challenges for the PC industry: The PC I dreamed for myself [when Microsoft started] is far better than what we have today.
On the road ahead for PCs: There are dreams that have been around for a while…a tablet computer for students instead of text books. We’ve wanted that for ages. A computer that can see, that can learn…computing today is really in its infancy.
On the challenges in global health care: People write articles about a plane crash in India…1000 times as many people will have died that day from diseases we should get rid of. Somehow, we are allowed to think the world at large is like the situation that we’re in.
On living on $1 a day (how would he know about that?): If you need to live on under $1 a day go to northern Thailand, not Calcutta.
On the rest of the world gaining ground on the U.S. economy: The U.S. has to get used to the fact that our relative share of everything – military power, economic power, innovation – won’t be so out of line with our 5% of world population as it is today – the U.S. has been sort of spoiled by being a leader for so long.
On immigration policy for skilled workers: One of our great edges is that smart people around the world want to come and work in the United States. Many come and stay there whole life. It’s an unfair advantage for us – but we’re making it tougher with our immigration policies.
On the success of the Apple iPod: Phenomenal, unbelievable, fantastic.
On remaining challenges for the PC industry: The PC I dreamed for myself [when Microsoft started] is far better than what we have today.
On the road ahead for PCs: There are dreams that have been around for a while…a tablet computer for students instead of text books. We’ve wanted that for ages. A computer that can see, that can learn…computing today is really in its infancy.
On the challenges in global health care: People write articles about a plane crash in India…1000 times as many people will have died that day from diseases we should get rid of. Somehow, we are allowed to think the world at large is like the situation that we’re in.
On living on $1 a day (how would he know about that?): If you need to live on under $1 a day go to northern Thailand, not Calcutta.
On the rest of the world gaining ground on the U.S. economy: The U.S. has to get used to the fact that our relative share of everything – military power, economic power, innovation – won’t be so out of line with our 5% of world population as it is today – the U.S. has been sort of spoiled by being a leader for so long.
On immigration policy for skilled workers: One of our great edges is that smart people around the world want to come and work in the United States. Many come and stay there whole life. It’s an unfair advantage for us – but we’re making it tougher with our immigration policies.
On the success of the Apple iPod: Phenomenal, unbelievable, fantastic.
Tuesday, November 07, 2006
Stock Trading Guidelines
1. Never, under any circumstance add to a losing position.... ever! Nothing more need be said; to do otherwise will eventually and absolutely lead to ruin!
2. Trade like a mercenary guerrilla. We must fight on the winning side and be willing to change sides readily when one side has gained the upper hand.
3. Capital comes in two varieties: Mental and that which is in your pocket or account. Of the two types of capital, the mental is the more important and expensive of the two. Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital .
4. The objective is not to buy low and sell high, but to buy high and to sell higher. We can never know what price is "low." Nor can we know what price is "high." Always remember that sugar once fell from $1.25/lb to 2 cent/lb and seemed "cheap" many times along the way.
5. In bull markets we can only be long or neutral, and in bear markets we can only be short or neutral. That may seem self-evident; it is not, and it is a lesson learned too late by far too many.
6. "Markets can remain illogical longer than you or I can remain solvent," according to our good friend, Dr. A. Gary Shilling. Illogic often reigns and markets are enormously inefficient despite what the academics believe.
7. Sell markets that show the greatest weakness, and buy those that show the greatest strength. Metaphorically, when bearish, throw your rocks into the wettest paper sack, for they break most readily. In bull markets, we need to ride upon the strongest winds... they shall carry us higher
than shall lesser ones.
8. Try to trade the first day of a gap, for gaps usually indicate violent
new action. We have come to respect "gaps" in our nearly thirty years of watching markets; when they happen (especially in stocks) they are usually very important.
9. Trading runs in cycles: some good; most bad. Trade large and aggressively when trading well; trade small and modestly when trading poorly. In "good times," even errors are profitable; in "bad times" even the most well researched trades go awry. This is the nature of trading; accept it.
10. To trade successfully, think like a fundamentalist; trade like a technician. It is imperative that we understand the fundamentals driving a trade, but also that we understand the market's technicals. When we do, then, and only then, can we or should we, trade.
11. Respect "outside reversals" after extended bull or bear runs. Reversal days on the charts signal the final exhaustion of the bullish or bearish forces that drove the market previously. Respect them, and respect even more "weekly" and "monthly," reversals.
12. Keep your technical systems simple. Complicated systems breed confusion; simplicity breeds elegance.
13. Respect and embrace the very normal 50-62% retracements that take prices back to major trends. If a trade is missed, wait patiently for the market to retrace. Far more often than not, retracements happen... just as we are about to give up hope that they shall not.
14. An understanding of mass psychology is often more important than an understanding of economics. Markets are driven by human beings making human errors and also making super-human insights.
15. Establish initial positions on strength in bull markets and on weakness in bear markets. The first "addition" should also be added on strength as the market shows the trend to be working. Henceforth, subsequent additions are to be added on retracements.
16. Bear markets are more violent than are bull markets and so also are their retracements.
17. Be patient with winning trades; be enormously impatient with losing trades. Remember it is quite possible to make large sums trading/investing if we are "right" only 30% of the time, as long as our losses are small and our profits are large.
18. The market is the sum total of the wisdom ... and the ignorance...of all of those who deal in it; and we dare not argue with the market's wisdom. If we learn nothing more than this we've learned much indeed.
19. Do more of that which is working and less of that which is not: If a market is strong, buy more; if a market is weak, sell more. New highs are to be bought; new lows sold.
20. The hard trade is the right trade: If it is easy to sell, don't; and if it is easy to buy, don't. Do the trade that is hard to do and that which the crowd finds objectionable. Peter Steidelmeyer taught us this
twenty five years ago and it holds truer now than then.
21. There is never one cockroach! This is the "winning" new rule
submitted by our friend, Tom Powell.
22. All rules are meant to be broken: The trick is knowing when... and how infrequently this rule may be invoked!
2. Trade like a mercenary guerrilla. We must fight on the winning side and be willing to change sides readily when one side has gained the upper hand.
3. Capital comes in two varieties: Mental and that which is in your pocket or account. Of the two types of capital, the mental is the more important and expensive of the two. Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital .
4. The objective is not to buy low and sell high, but to buy high and to sell higher. We can never know what price is "low." Nor can we know what price is "high." Always remember that sugar once fell from $1.25/lb to 2 cent/lb and seemed "cheap" many times along the way.
5. In bull markets we can only be long or neutral, and in bear markets we can only be short or neutral. That may seem self-evident; it is not, and it is a lesson learned too late by far too many.
6. "Markets can remain illogical longer than you or I can remain solvent," according to our good friend, Dr. A. Gary Shilling. Illogic often reigns and markets are enormously inefficient despite what the academics believe.
7. Sell markets that show the greatest weakness, and buy those that show the greatest strength. Metaphorically, when bearish, throw your rocks into the wettest paper sack, for they break most readily. In bull markets, we need to ride upon the strongest winds... they shall carry us higher
than shall lesser ones.
8. Try to trade the first day of a gap, for gaps usually indicate violent
new action. We have come to respect "gaps" in our nearly thirty years of watching markets; when they happen (especially in stocks) they are usually very important.
9. Trading runs in cycles: some good; most bad. Trade large and aggressively when trading well; trade small and modestly when trading poorly. In "good times," even errors are profitable; in "bad times" even the most well researched trades go awry. This is the nature of trading; accept it.
10. To trade successfully, think like a fundamentalist; trade like a technician. It is imperative that we understand the fundamentals driving a trade, but also that we understand the market's technicals. When we do, then, and only then, can we or should we, trade.
11. Respect "outside reversals" after extended bull or bear runs. Reversal days on the charts signal the final exhaustion of the bullish or bearish forces that drove the market previously. Respect them, and respect even more "weekly" and "monthly," reversals.
12. Keep your technical systems simple. Complicated systems breed confusion; simplicity breeds elegance.
13. Respect and embrace the very normal 50-62% retracements that take prices back to major trends. If a trade is missed, wait patiently for the market to retrace. Far more often than not, retracements happen... just as we are about to give up hope that they shall not.
14. An understanding of mass psychology is often more important than an understanding of economics. Markets are driven by human beings making human errors and also making super-human insights.
15. Establish initial positions on strength in bull markets and on weakness in bear markets. The first "addition" should also be added on strength as the market shows the trend to be working. Henceforth, subsequent additions are to be added on retracements.
16. Bear markets are more violent than are bull markets and so also are their retracements.
17. Be patient with winning trades; be enormously impatient with losing trades. Remember it is quite possible to make large sums trading/investing if we are "right" only 30% of the time, as long as our losses are small and our profits are large.
18. The market is the sum total of the wisdom ... and the ignorance...of all of those who deal in it; and we dare not argue with the market's wisdom. If we learn nothing more than this we've learned much indeed.
19. Do more of that which is working and less of that which is not: If a market is strong, buy more; if a market is weak, sell more. New highs are to be bought; new lows sold.
20. The hard trade is the right trade: If it is easy to sell, don't; and if it is easy to buy, don't. Do the trade that is hard to do and that which the crowd finds objectionable. Peter Steidelmeyer taught us this
twenty five years ago and it holds truer now than then.
21. There is never one cockroach! This is the "winning" new rule
submitted by our friend, Tom Powell.
22. All rules are meant to be broken: The trick is knowing when... and how infrequently this rule may be invoked!
Friday, November 03, 2006
What I think and feel
I feel horrible that I'm the only guy in the world who thinks the U.S. economy isn't heading into recession. Everyone thinks I'm a naive fool. A wishful thinker. A permabull. Don't all the economic numbers released in the last couple weeks prove beyond any doubt that the economy is slowing sharply? How can I be so stupid?
I feel wonderful that I'm the only guy in the world who thinks the U.S. economy isn't heading into recession. In over a quarter century as an investment professional, I've never made any money except when I stood against the crowd.
The crowd is almost always wrong. If you want to make money in investing, when the crowd says "white" you should say "black." Right now the crowd is saying "recession." You should be saying "growth."
And even when the crowd turns out to be right, you won't lose much by betting the other way. Anytime the crowd all believes something, that belief gets reflected completely in stock and bond prices.
Look at what happened with bonds this morning when U.S. payroll job growth came out at a weaker-than-expected 92,000. Bonds should have soared on this supposed sign of economic weakness. Instead, they tanked. The crowd had priced bonds for so much bad news that this just wasn't enough.
Bonds are still priced for recession, with yields on long-term Treasurys lower than the yields of money-market funds. Stocks are priced for recession, too. The S&P 500's price/earnings multiple is as low today as it was on the day of the panic bottom on Oct. 9, 2002.
If there is a recession, can bond yields actually go much lower from here? Can P/E multiples get much lower? Maybe, but not much. So there's nothing to be gained by betting on recession, and therefore little to lose by betting against it.
But there's plenty to be gained by betting on growth. If the economy re-accelerates from here, earnings will grow and stock multiples will expand — stocks will blow out to new higher highs. And yields are going to rise at the same time, and fortunes will be made by shorting long-term Treasurys.
Now you could make those bets out of sheer contrariness, and that's probably not a bad strategy. But it just so happens that I have a number of very good reasons for expecting growth to re-accelerate. So you can be more than a lonely contrarian here — you can be a contrarian with a vision, one that will keep you going for the weeks and months ahead while you're waiting to be proven right.
I feel wonderful that I'm the only guy in the world who thinks the U.S. economy isn't heading into recession. In over a quarter century as an investment professional, I've never made any money except when I stood against the crowd.
The crowd is almost always wrong. If you want to make money in investing, when the crowd says "white" you should say "black." Right now the crowd is saying "recession." You should be saying "growth."
And even when the crowd turns out to be right, you won't lose much by betting the other way. Anytime the crowd all believes something, that belief gets reflected completely in stock and bond prices.
Look at what happened with bonds this morning when U.S. payroll job growth came out at a weaker-than-expected 92,000. Bonds should have soared on this supposed sign of economic weakness. Instead, they tanked. The crowd had priced bonds for so much bad news that this just wasn't enough.
Bonds are still priced for recession, with yields on long-term Treasurys lower than the yields of money-market funds. Stocks are priced for recession, too. The S&P 500's price/earnings multiple is as low today as it was on the day of the panic bottom on Oct. 9, 2002.
If there is a recession, can bond yields actually go much lower from here? Can P/E multiples get much lower? Maybe, but not much. So there's nothing to be gained by betting on recession, and therefore little to lose by betting against it.
But there's plenty to be gained by betting on growth. If the economy re-accelerates from here, earnings will grow and stock multiples will expand — stocks will blow out to new higher highs. And yields are going to rise at the same time, and fortunes will be made by shorting long-term Treasurys.
Now you could make those bets out of sheer contrariness, and that's probably not a bad strategy. But it just so happens that I have a number of very good reasons for expecting growth to re-accelerate. So you can be more than a lonely contrarian here — you can be a contrarian with a vision, one that will keep you going for the weeks and months ahead while you're waiting to be proven right.
Sunday, October 22, 2006
How will be the housing market?
I am traking the the few company that ultimately track the real estate/housing market in the US. Recently they annoucned the result and they disappoint the investor with their outlook. We should listent what the executive of this company has to say abou the outlook of the market. The sample of the compnay are Washington Mutual, Caterpiller, and Dhi
Here is the caterpiller executive says
"Housing construction dropped sharply in the U.S., and the recent reversal in mortgage rates is unlikely to revive activity much this year," according to the company's forecast. It predicts housing starts to decline to about 1.75 million units in 2007.
Here is Washington Mutual executive says
"This is about the most difficult environment we've seen in the mortgage banking industry since the early to mid-90s," Steve Rotella, president and chief operating officer, said Wednesday in a conference call with analysts.
D.R. Horton offered buyers $120,000 in savings last month at the Tuscan Estates in the Elk Grove area near Sacramento. A Pulte development near there advertises homes valued between $456,000 and $654,000. And Beazer Homes USA Inc. offered no monthly payments for six months at Fieldstone Meadows in Folsom, Calif.
Citigroup economist Steven Wieting said, "It's possible the price statistics are not reflecting the incentives." In a recent report, Wieting wrote, "In August, the median new home sales price fell 1.3 percent. Building 'incentives' are probably much larger."
When come what they really means always read the 10Q and 10K where they have to discolse the business condition.
Here is the caterpiller executive says
"Housing construction dropped sharply in the U.S., and the recent reversal in mortgage rates is unlikely to revive activity much this year," according to the company's forecast. It predicts housing starts to decline to about 1.75 million units in 2007.
Here is Washington Mutual executive says
"This is about the most difficult environment we've seen in the mortgage banking industry since the early to mid-90s," Steve Rotella, president and chief operating officer, said Wednesday in a conference call with analysts.
D.R. Horton offered buyers $120,000 in savings last month at the Tuscan Estates in the Elk Grove area near Sacramento. A Pulte development near there advertises homes valued between $456,000 and $654,000. And Beazer Homes USA Inc. offered no monthly payments for six months at Fieldstone Meadows in Folsom, Calif.
Citigroup economist Steven Wieting said, "It's possible the price statistics are not reflecting the incentives." In a recent report, Wieting wrote, "In August, the median new home sales price fell 1.3 percent. Building 'incentives' are probably much larger."
When come what they really means always read the 10Q and 10K where they have to discolse the business condition.
Sunday, October 15, 2006
TV anywhere
I recently baught Slingbox to watch the TV anywhere. I think its a great tool for anyone who is on the go and for the family to share the content across the various places.
Things like I can show our kids birthday party to my brother in India live. Amaizing! isn't it?
Not only that, you are waiting on the Airport, your kids are boaring, hook this up with wi-fi and you are just like in your home.
Let see their Business Perspective, with this kind of box, I can see people will watch more and more TV, rather that only surfing and chating. With life so busy and hactic, it hard to find the slot to watch the TV. Earlier we had a TiVo so we can record the program, but there is nothing new, you could have done the same with VCR, DVD Recorder. But this will bring you to see live TV. This will happy TV advertisements publishers, Cable operator. I don't see they will raise any issue with SlingMedia as long as they provide one connection at a time.
What you need is to get the Laptop and find the wireless connection. In couple of year, you will find plenty of free wireless connection, as company like Google already plan to make San Francisco Wireless, Mountain View, Sunnyvale already free wireless available. Verizon off wireless connection anywhere you go in Metro area for 50bucks. So you can have your laptop on in your car and have your family watch live TV.
So far I feel good to have a little gadget like this.
Things like I can show our kids birthday party to my brother in India live. Amaizing! isn't it?
Not only that, you are waiting on the Airport, your kids are boaring, hook this up with wi-fi and you are just like in your home.
Let see their Business Perspective, with this kind of box, I can see people will watch more and more TV, rather that only surfing and chating. With life so busy and hactic, it hard to find the slot to watch the TV. Earlier we had a TiVo so we can record the program, but there is nothing new, you could have done the same with VCR, DVD Recorder. But this will bring you to see live TV. This will happy TV advertisements publishers, Cable operator. I don't see they will raise any issue with SlingMedia as long as they provide one connection at a time.
What you need is to get the Laptop and find the wireless connection. In couple of year, you will find plenty of free wireless connection, as company like Google already plan to make San Francisco Wireless, Mountain View, Sunnyvale already free wireless available. Verizon off wireless connection anywhere you go in Metro area for 50bucks. So you can have your laptop on in your car and have your family watch live TV.
So far I feel good to have a little gadget like this.
Wednesday, October 11, 2006
Another free lunch
Today, Bank of America declared that they will allow investor to trade free, yes FREE, by Feb 2007, Eastern state like NY,NJ, CT is already started.
http://www.bankofamerica.com/investing/
http://www.bloomberg.com/apps/news?pid=20601087&sid=as7tPSHtD7Sw&refer=home
I can sense here what all the online services looking for "Advertisement Revenue". Basically, they all want to attract more hit to their site so that they can sell the advertisement, not a bad idea, at all, considering Google buyout Youtube.com (2 yr old company) for $1.6B, the only reason is they got 100m hit everyday.
Other interesting thing I like about this annoucement is Gorilla Marketing, they only rollout the services to Eastern State, so by the time everybody know they have the service and infrastructure ready. This is exactly what youtube.com did, no major advertisement.
With this annoucement, discount broker like etrade, TDWH, etc are under pressure. They have to follow the suite or they have to provide better services to the investor. I can clearly see the company Zocco.com, who annouced free trade 2 days back, will have trouble of serviving.
Other online services like Yahoo Voip just annouced they they let people to call India for free on the day of Diwali, and significant lower rate during the period of Diwali (1 week). Another way to attract visitor.
But hey, I like this idea and it make lots of sense.
71 202-238135
http://www.bankofamerica.com/investing/
http://www.bloomberg.com/apps/news?pid=20601087&sid=as7tPSHtD7Sw&refer=home
I can sense here what all the online services looking for "Advertisement Revenue". Basically, they all want to attract more hit to their site so that they can sell the advertisement, not a bad idea, at all, considering Google buyout Youtube.com (2 yr old company) for $1.6B, the only reason is they got 100m hit everyday.
Other interesting thing I like about this annoucement is Gorilla Marketing, they only rollout the services to Eastern State, so by the time everybody know they have the service and infrastructure ready. This is exactly what youtube.com did, no major advertisement.
With this annoucement, discount broker like etrade, TDWH, etc are under pressure. They have to follow the suite or they have to provide better services to the investor. I can clearly see the company Zocco.com, who annouced free trade 2 days back, will have trouble of serviving.
Other online services like Yahoo Voip just annouced they they let people to call India for free on the day of Diwali, and significant lower rate during the period of Diwali (1 week). Another way to attract visitor.
But hey, I like this idea and it make lots of sense.
71 202-238135
Wednesday, September 06, 2006
Law regarding buying Properties in India
The law has come a long way since the days of the Fera (Foreign Exchange Regulation Act) regime, when buying or selling of immovable property was governed by the citizenship of a person.
Under Fema (Foreign Exchange Management Act), the thrust is on residential status. But before we go into the details of the law, let's get the definitions straight. An NRI is an Indian citizen residing outside India. A citizen of another country is a PIO (person of Indian origin) if he has held an Indian passport at any time or if he, his father or his grandfather has been a citizen of India. A citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan is not regarded as a PIO.
With the emphasis on residential status, a foreign citizen who is a resident of India can buy and sell properties without prior approval from the Reserve Bank of India, subject to a general ban on citizens of the eight countries mentioned above and restrictions on buying certain properties.
A foreign citizen of non-Indian origin cannot acquire agriculture land/farm house/plantation property in India without the prior approval of the RBI, whereas a foreign citizen of Indian origin can acquire such properties without the prior approval of the RBI but only by way of inheritance. Leasing of immovable property for a period of five years or less is freely permitted.
The RBI does not determine the residential status of a person for the purpose of acquisition of immovable property in India. Under Fema regulations, residential status is determined by operation of law. The onus is on the individual to prove his residential status, if questioned by any other authority.
Acquisition by way of purchase
A general permission is available to NRIs or PIOs to purchase only residential/ commercial property in India. There is no restriction on the number of residential/commercial properties that an NRI or a PIO can buy. The name of a foreign national of non-Indian origin cannot be added as a second holder of a residential/commercial property purchased by an NRI or a PIO.
A foreign national of non-Indian origin, resident outside India, cannot acquire any immovable property in India by way of purchase without the RBI's nod. However, a foreign national of non-Indian origin, including a citizen of the eight countries mentioned above, may acquire only residential accommodation on lease, for not more than five years.
He does not require the RBI's permission for this. A person resident outside India (that is, an NRI, a PIO or a foreign national of non-Indian origin) cannot acquire agricultural land/plantation/farm house in India by way of purchase.
Acquisition by way of gift
An NRI or a PIO may acquire residential/commercial property by way of gift from a resident of India, an NRI or a PIO. However, a foreign national of non-Indian origin resident outside India cannot acquire residential/commercial property in India by way of gift. A person resident outside India cannot acquire agricultural land/plantation/farm house in India by way of gift.
Acquisition by way of inheritance. A person resident outside India can hold immovable property in India acquired by way of inheritance from a person resident in India. Further, with the approval of the RBI, he may hold immovable property in India acquired through inheritance from a person resident outside India, provided the bequeathor had acquired the property in accordance with Fema or the foreign exchange law in force at the time of acquisition.
Sale of immovable property
An NRI can sell residential/commercial property in India to a person resident in India, an NRI or a PIO. However, a PIO can sell residential/commercial property in India only to a resident of India. He would need prior approval of the RBI for sale of residential/commercial property in India to an NRI or a PIO.
A foreign national of non-Indian origin whether resident in India or outside India would require prior approval of the RBI for sale of residential property in India acquired with the specific permission of the RBI to a person resident in India or outside India.
An NRI or a PIO may sell his agricultural land/plantation/ farm house in India to an Indian citizen resident in India. However, a foreign national of non-Indian origin, resident outside India, would require prior approval of the RBI to sell agricultural land/plantation/farm house acquired in India.
Gift of immovable property in India. An NRI or a PIO may gift residential/commercial property in India to a person resident in India, an NRI or a PIO. Further, an NRI or a PIO may gift agricultural land/plantation/farm house in India to an Indian citizen resident in India.
However, a foreign national of non-Indian origin resident outside India would need prior approval of the RBI to gift agricultural land/plantation/ farm house acquired by him in India.
Acquisition of immovable property for carrying on a permitted activity in India
A person resident outside India who has established a liaison office in India in accordance with Fera/Fema regulations cannot purchase immovable property in India. Practically, all liaison offices in India acquire premises on lease for not more than five years for which no permission is required from the RBI.
However, a person resident outside India who has established a branch office or other place of business in India in accordance with Fera/Fema regulations can purchase immovable property in India provided it is necessary for, or incidental to, carrying on the activity he is engaged in and all applicable laws have been complied with.
For details on other related issues, you may approach the chief general manager, RBI, Foreign Investment Division, Central Office, Mumbai.
Under Fema (Foreign Exchange Management Act), the thrust is on residential status. But before we go into the details of the law, let's get the definitions straight. An NRI is an Indian citizen residing outside India. A citizen of another country is a PIO (person of Indian origin) if he has held an Indian passport at any time or if he, his father or his grandfather has been a citizen of India. A citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan is not regarded as a PIO.
With the emphasis on residential status, a foreign citizen who is a resident of India can buy and sell properties without prior approval from the Reserve Bank of India, subject to a general ban on citizens of the eight countries mentioned above and restrictions on buying certain properties.
A foreign citizen of non-Indian origin cannot acquire agriculture land/farm house/plantation property in India without the prior approval of the RBI, whereas a foreign citizen of Indian origin can acquire such properties without the prior approval of the RBI but only by way of inheritance. Leasing of immovable property for a period of five years or less is freely permitted.
The RBI does not determine the residential status of a person for the purpose of acquisition of immovable property in India. Under Fema regulations, residential status is determined by operation of law. The onus is on the individual to prove his residential status, if questioned by any other authority.
Acquisition by way of purchase
A general permission is available to NRIs or PIOs to purchase only residential/ commercial property in India. There is no restriction on the number of residential/commercial properties that an NRI or a PIO can buy. The name of a foreign national of non-Indian origin cannot be added as a second holder of a residential/commercial property purchased by an NRI or a PIO.
A foreign national of non-Indian origin, resident outside India, cannot acquire any immovable property in India by way of purchase without the RBI's nod. However, a foreign national of non-Indian origin, including a citizen of the eight countries mentioned above, may acquire only residential accommodation on lease, for not more than five years.
He does not require the RBI's permission for this. A person resident outside India (that is, an NRI, a PIO or a foreign national of non-Indian origin) cannot acquire agricultural land/plantation/farm house in India by way of purchase.
Acquisition by way of gift
An NRI or a PIO may acquire residential/commercial property by way of gift from a resident of India, an NRI or a PIO. However, a foreign national of non-Indian origin resident outside India cannot acquire residential/commercial property in India by way of gift. A person resident outside India cannot acquire agricultural land/plantation/farm house in India by way of gift.
Acquisition by way of inheritance. A person resident outside India can hold immovable property in India acquired by way of inheritance from a person resident in India. Further, with the approval of the RBI, he may hold immovable property in India acquired through inheritance from a person resident outside India, provided the bequeathor had acquired the property in accordance with Fema or the foreign exchange law in force at the time of acquisition.
Sale of immovable property
An NRI can sell residential/commercial property in India to a person resident in India, an NRI or a PIO. However, a PIO can sell residential/commercial property in India only to a resident of India. He would need prior approval of the RBI for sale of residential/commercial property in India to an NRI or a PIO.
A foreign national of non-Indian origin whether resident in India or outside India would require prior approval of the RBI for sale of residential property in India acquired with the specific permission of the RBI to a person resident in India or outside India.
An NRI or a PIO may sell his agricultural land/plantation/ farm house in India to an Indian citizen resident in India. However, a foreign national of non-Indian origin, resident outside India, would require prior approval of the RBI to sell agricultural land/plantation/farm house acquired in India.
Gift of immovable property in India. An NRI or a PIO may gift residential/commercial property in India to a person resident in India, an NRI or a PIO. Further, an NRI or a PIO may gift agricultural land/plantation/farm house in India to an Indian citizen resident in India.
However, a foreign national of non-Indian origin resident outside India would need prior approval of the RBI to gift agricultural land/plantation/ farm house acquired by him in India.
Acquisition of immovable property for carrying on a permitted activity in India
A person resident outside India who has established a liaison office in India in accordance with Fera/Fema regulations cannot purchase immovable property in India. Practically, all liaison offices in India acquire premises on lease for not more than five years for which no permission is required from the RBI.
However, a person resident outside India who has established a branch office or other place of business in India in accordance with Fera/Fema regulations can purchase immovable property in India provided it is necessary for, or incidental to, carrying on the activity he is engaged in and all applicable laws have been complied with.
For details on other related issues, you may approach the chief general manager, RBI, Foreign Investment Division, Central Office, Mumbai.
Wednesday, August 23, 2006
Buying Cars?
Today I found nice article that you should know before buying car from the dealer. Get ready to spend couple of hour here to know how they works.
http://www.edmunds.com/advice/buying/articles/42962/article.html
http://www.fool.com/car/car.htm
http://www.edmunds.com/advice/buying/articles/42962/article.html
http://www.fool.com/car/car.htm
Monday, August 21, 2006
Green Energy
Don't be surprised, if you hear a lot about Green Energy in this century.
China has planned to invest $250 Billion over 10 year, you heard right, 250B, for finding alternative energy source. With this amount they can buy a company like BP and have oil free for next 25years. But they are looking beyond that. I think it will go towarard ethanol.
Today Bajaj announced plant to invest $500M for ethanol in Brazil. This are the growing country and they realized that the energy demand is much more higher going forward, and this is right to to make some investment there.
Today, in California, Arnold passes a biggest bill in US to plan solar energy in the state. Under new law Home Builder must give option to home buyer to install solar panel in the house by 2010.
Finaly, we realized the need of energy is important and start making step toward that.
Let see how it goes.
China has planned to invest $250 Billion over 10 year, you heard right, 250B, for finding alternative energy source. With this amount they can buy a company like BP and have oil free for next 25years. But they are looking beyond that. I think it will go towarard ethanol.
Today Bajaj announced plant to invest $500M for ethanol in Brazil. This are the growing country and they realized that the energy demand is much more higher going forward, and this is right to to make some investment there.
Today, in California, Arnold passes a biggest bill in US to plan solar energy in the state. Under new law Home Builder must give option to home buyer to install solar panel in the house by 2010.
Finaly, we realized the need of energy is important and start making step toward that.
Let see how it goes.
Tuesday, August 15, 2006
Why Home price will go down, even fed hold interest rate?
Couples of week back Fed decided to hold hike in intereste rate. This means, they are not doing right now but they will in furture (based on data). This make high interest rate hang on for longer time than if they decided to hike.
If the continue to ecided hold for next meeting, then for sure it will come in future, and based on that the treasury will declined and will rise the mortage rate.
Today, we see the report that wholesale price declined. So they assume they will still hold int rate. But since this int rate low is still low, they have to hike at some point.
Net.Net. Due to this, the mortgage rate will hold higher for long time, this is not good for those you purchased home in last 3 years, because they need to refinance.
According to today news says that Home Sales Slow in Spring With 28 States and D.C. Suffering Outright Declines. The five biggest declines this spring compared to the April-June period of 2005 were Arizona, down 26.9 percent; Florida, down 26.7 percent; California, down 25.3 percent; Virginia, down 23.9 percent, and Nevada, down 23.5 percent.
Be careful.
If the continue to ecided hold for next meeting, then for sure it will come in future, and based on that the treasury will declined and will rise the mortage rate.
Today, we see the report that wholesale price declined. So they assume they will still hold int rate. But since this int rate low is still low, they have to hike at some point.
Net.Net. Due to this, the mortgage rate will hold higher for long time, this is not good for those you purchased home in last 3 years, because they need to refinance.
According to today news says that Home Sales Slow in Spring With 28 States and D.C. Suffering Outright Declines. The five biggest declines this spring compared to the April-June period of 2005 were Arizona, down 26.9 percent; Florida, down 26.7 percent; California, down 25.3 percent; Virginia, down 23.9 percent, and Nevada, down 23.5 percent.
Be careful.
Thursday, July 20, 2006
Few lessons for life
Last week I was in Canada as a part of Oracle Club Excellence, and I am fortunate to listen the speech of Jaime Clarke through business session. He is a mountaineer and climbed Mt Everest Summit in 1997.
During his speech, he talk lot about how you can achieve the goal that you set. He talk about fear, and how to handle those, how to learn from past experience. How not to give up with your goal etc.
Some of his demo presentation I found in his website, if you are interested visit him at
http://www.jamieclarke.com/MMpresSegments.htm
earlier this year, I also learned about Sir Ed Hillary, I read his interview and following I found is thoughtful.
"I really like to enjoy my adventures. I get frightened to death on many, many occasions but, of course, fear can be, also, a stimulating factor. When you're afraid, the blood surges in the veins and so on. If you get rigid through fear, quite obviously, fear is not a very satisfactory characteristic to have, but if it's a stimulating factor, then I think you can often extend yourself far more than you ever believed possible. And instead of being just a mediocre person, for a moment anyway, you become someone of considerable competence. "
http://www.achievement.org/autodoc/page/hil0int-1
that's all for now.
During his speech, he talk lot about how you can achieve the goal that you set. He talk about fear, and how to handle those, how to learn from past experience. How not to give up with your goal etc.
Some of his demo presentation I found in his website, if you are interested visit him at
http://www.jamieclarke.com/MMpresSegments.htm
earlier this year, I also learned about Sir Ed Hillary, I read his interview and following I found is thoughtful.
"I really like to enjoy my adventures. I get frightened to death on many, many occasions but, of course, fear can be, also, a stimulating factor. When you're afraid, the blood surges in the veins and so on. If you get rigid through fear, quite obviously, fear is not a very satisfactory characteristic to have, but if it's a stimulating factor, then I think you can often extend yourself far more than you ever believed possible. And instead of being just a mediocre person, for a moment anyway, you become someone of considerable competence. "
http://www.achievement.org/autodoc/page/hil0int-1
that's all for now.
Wednesday, July 05, 2006
How did we survive?
We had a great time with kids for their Firework on Jul 4th. And I hear the news regarding Fed is considering ban on Firwork in US. They are so much worry about kids due to few accident and some kids was dead/injured. I think this is wrong.
The person born before 70s they know they survived, eventhough they did what they are unsecure and harmful.
Our baby cribs were covered with bright colored lead-based paint and some of the baby has not seen the cribs, on the floor wow. We had no childproof lids on medicine bottles, doors or cabinets, ...and when we rode our bikes, we had no helmets. As children, we would ride on bike on lap. Riding in the back of a pickup truck on a warm day was always a special treat. We drank water from the garden hose and not from a bottle. We ate cupcakes , bread and butter , and drank soda pop with sugar in it,but we were never overweight because we were always outside playing.
We shared one soft drink with four friends, from one bottle, and no one actually died from this.
We would spend hours building our go-carts out of scraps and then rodedown the hill, only to find out we forgot the brakes..After running into the bushes a few times , we learned to solve the problem. We would leave home in the morning and play all day , as long as we wereback when the street lights came on . No one was able to reach us all day. NO CELL PHONES!!!!!
We did not have Playstations , Nintendo 64, X-Boxes, no video games or even TV at all, personal computers , or Internet chat rooms. Still we had friends! We went outside and foundthem. We played ball, and sometimes, the ball would really hurt. (not us someone in 80s even though they survive no lawsuit). We fell out of trees , got cut and broke bones and teeth , and there were no lawsuits from these accidents. They were accidents. No one was to blame but us. Remember accidents?
We had fights and punched each other and got black and blue and learned to get over it.
We made up games with sticks and tennis balls and ate worms, and although we were told it would happen, we did not put outvery many eyes , nor did the worms live inside us forever.
We rode bikes or walked to a friend's home and knocked on the door, or rang the bell or just walked in and talked to them .
Some students weren't as smart as others, so they failed a grade andwere held back to repeat the same grade. Tests were not adjusted for any reason. Our actions were our own. Consequences were expected. Our teacher beat us badly. The idea of a parent bailing us out if webroke a law was unheard of. They actually sided with the law.
Imagine that! This generation has produced some of the best risk-takers, problemsolvers and inventors, ever. The past 50 years have been an explosion of innovation and new ideas.
And still we survive and feel great.
The person born before 70s they know they survived, eventhough they did what they are unsecure and harmful.
Our baby cribs were covered with bright colored lead-based paint and some of the baby has not seen the cribs, on the floor wow. We had no childproof lids on medicine bottles, doors or cabinets, ...and when we rode our bikes, we had no helmets. As children, we would ride on bike on lap. Riding in the back of a pickup truck on a warm day was always a special treat. We drank water from the garden hose and not from a bottle. We ate cupcakes , bread and butter , and drank soda pop with sugar in it,but we were never overweight because we were always outside playing.
We shared one soft drink with four friends, from one bottle, and no one actually died from this.
We would spend hours building our go-carts out of scraps and then rodedown the hill, only to find out we forgot the brakes..After running into the bushes a few times , we learned to solve the problem. We would leave home in the morning and play all day , as long as we wereback when the street lights came on . No one was able to reach us all day. NO CELL PHONES!!!!!
We did not have Playstations , Nintendo 64, X-Boxes, no video games or even TV at all, personal computers , or Internet chat rooms. Still we had friends! We went outside and foundthem. We played ball, and sometimes, the ball would really hurt. (not us someone in 80s even though they survive no lawsuit). We fell out of trees , got cut and broke bones and teeth , and there were no lawsuits from these accidents. They were accidents. No one was to blame but us. Remember accidents?
We had fights and punched each other and got black and blue and learned to get over it.
We made up games with sticks and tennis balls and ate worms, and although we were told it would happen, we did not put outvery many eyes , nor did the worms live inside us forever.
We rode bikes or walked to a friend's home and knocked on the door, or rang the bell or just walked in and talked to them .
Some students weren't as smart as others, so they failed a grade andwere held back to repeat the same grade. Tests were not adjusted for any reason. Our actions were our own. Consequences were expected. Our teacher beat us badly. The idea of a parent bailing us out if webroke a law was unheard of. They actually sided with the law.
Imagine that! This generation has produced some of the best risk-takers, problemsolvers and inventors, ever. The past 50 years have been an explosion of innovation and new ideas.
And still we survive and feel great.
Monday, July 03, 2006
Don't trap in this rally
| Dow | 11,228.02 |  77.80 (0.70%) |
| Nasdaq | 2,190.43 | 18.34 (0.84%) |
| S&P 500 | 1,280.19 | 9.99 (0.79%) |
Mr BB had hike the rate and market like so much that it went up too much. They like comment "Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year"
It means the macro-econ0mic indicator is not good, and eventually corporat profit may stall. But market like this comment so much just by thinking Fed will stop hiking the rate, which is indeeed good for corporate profit in longer term. But longer term economy will stall as well.
Bottom line, sell sell sell in this rally and wait for good opportunity by end of this year.
Sunday, July 02, 2006
My moustache gone
After long time, I finally decided to remove my moustache and did it. Actually, I was always wondering about the look without moustache but this morning just did it without thinking futher. And it feel good. So once a while do the stuff you like without thinking of its consequences. Here is my pic.
Friday, June 30, 2006
Siesta
National Siesta Day has the evidence that two sleeps a day is natural and that there's nothing Spanish about the siesta.
Your eyes are glazing over in front of the computer screen - but you can't fall asleep. The sunshine is trying to get through the sealed office windows, it's telling you take it easy and relax, but you're still toiling on regardless.
And that's all wrong, say the organisers of National Siesta Day, held this week, who argue that it's common sense and good health to take a nap during the day - because that's the way human beings are designed.
"Most people stay awake all day rather than taking a nap - but they're fooling themselves. If they're tired, they make mistakes and are more likely to have accidents. They can't think as clearly," says Noel Kingsley, spokesperson for Siesta Awareness.
You know it makes sense Taking a short nap is the answer, he says. It's a case of "listening to our bodies". "There is a natural dip in energy, about 12 hours after the deepest sleep; we get drowsy and there's a drop in body temperature. We need a short nap to refresh ourselves." But why don't we?
If you said you were going to pound on a treadmill in the gym for an hour during lunch, everyone would think you were a model worker. If you said you fancied snoring for an hour, would you get the same approval? Waking up with a keyboard indentation on your face doesn't quite spell management material.
"Falling asleep is associated with laziness and boozy lunches - when it has nothing to do with that. It's responding to what's natural. If businesses were more far-sighted they'd see that it helps people to perform."
Your eyes are glazing over in front of the computer screen - but you can't fall asleep. The sunshine is trying to get through the sealed office windows, it's telling you take it easy and relax, but you're still toiling on regardless.
And that's all wrong, say the organisers of National Siesta Day, held this week, who argue that it's common sense and good health to take a nap during the day - because that's the way human beings are designed.
"Most people stay awake all day rather than taking a nap - but they're fooling themselves. If they're tired, they make mistakes and are more likely to have accidents. They can't think as clearly," says Noel Kingsley, spokesperson for Siesta Awareness.
You know it makes sense Taking a short nap is the answer, he says. It's a case of "listening to our bodies". "There is a natural dip in energy, about 12 hours after the deepest sleep; we get drowsy and there's a drop in body temperature. We need a short nap to refresh ourselves." But why don't we?
If you said you were going to pound on a treadmill in the gym for an hour during lunch, everyone would think you were a model worker. If you said you fancied snoring for an hour, would you get the same approval? Waking up with a keyboard indentation on your face doesn't quite spell management material.
"Falling asleep is associated with laziness and boozy lunches - when it has nothing to do with that. It's responding to what's natural. If businesses were more far-sighted they'd see that it helps people to perform."
Monday, June 26, 2006
Biggest Merger Bill Gates and Warren Buffet
Warren Buffet has decided to give more than 80 percent of his $44 billion fortune to charity. Most of the money -- about $30 billion -- will go to the Bill & Melinda Gates Foundation to improve world health and fight poverty. This news comes after Bill Gates decided to retire and dedicate his rest of life for their foundation.I would simply call this is the biggest merger of this century. Top two rich person decided to work for charity jointly. This clearly tells that after you got money, fame, power you go back to the state where you don't need any of this (money,fame, power).
Now I really admire Bill and Warren in their dedication of fighting health in the world. I think this is most important event for the mankind.
The best quote from Warren I like most is "I still believe in the philosophy that a very rich person should leave his kids enough to do anything but not enough to do nothing."
This is great example of leadership and capitalism at best. This stunning contribution is ego-less as all work done will be credited to Bill and Melinda Gates, eventhough Buffet has his own foundation.
When I was in the primary school we have a story of Tao (from china) who gave everything (just one copper coin) she has to build the statue of Buddha, now a day Tao is paryed as a God in community. To me this is same as Tao did centuries back, and I am sure Buffet will be remembered forever.
Thank you Mr. Buffett for showing you can remain a good and decent human being and still acheive your goals.
Thats the way to go. Bravo!!
Friday, June 23, 2006
Be careful with the car maintainance
I saw the video from nbc about how Jiffy lube ripped of the consumer. They foucs on jiffy lube but I think this practice is everywhere. Learned the lesson stay near your car while they do the service no matter where you go.
http://www.nbc4.tv/video/9152183/detail.html
http://www.nbc4.tv/video/9155837/detail.html
http://www.fatwallet.com/redirect/bounce.php?afsrc=1&url=https://http://www.nbc4.tv/video/9265802/detail.html
http://www.nbc4.tv/video/9152183/detail.html
http://www.nbc4.tv/video/9155837/detail.html
http://www.fatwallet.com/redirect/bounce.php?afsrc=1&url=https://http://www.nbc4.tv/video/9265802/detail.html
Wednesday, June 21, 2006
Five Tax Strategies for 2006 Returns
Now that the April 17 tax deadline has passed, you probably want to dismiss all thoughts of the IRS for another year. But whether you received a large refund on your 2005 taxes—meaning you effectively gave the government an interest-free loan—or had a hefty tax liability, now's a good time to help start minimizing your 2006 taxes. Here are five things you can do to try to prevent getting too much back or owing a lot next year.
Strategy #1: Take a look at your payroll withholding. If you're like most working Americans, you pay the lion's share of your taxes through payroll withholding. Now is the time to make sure your employer is withholding the right amount from your paycheck—not too much or too little.
If the amount withheld is too high, you'll end up getting a big tax refund. That can feel pretty nice—but it's an expensive thrill. In effect, you gave the IRS an interest-free loan equal to the refund amount. In that case, you may want to fill out a new W-4 form and submit it to your employer. If you aren't claiming the maximum number of allowances, you may be able to claim more to decrease your withholding amount.
If the amount withheld last year was too low, you might end up with a surprise tax bill that could disrupt your finances—perhaps forcing you to dip into emergency reserves or even borrow money. In certain cases, you could also face IRS penalties. Consider revising your W-4 form and submitting it to your employer to claim fewer allowances. You can also enter an additional amount that you want withheld from each paycheck. For example, you might want to take the amount you owed last year, and divide it by the number of pay periods remaining this year.
Strategy #2: Consider increasing contributions to retirement savings accounts. Pre-tax contributions to a 401(k) account come out of your paycheck before taxes, and are not included in taxable income for that year. In 2006, you can make pre-tax contributions of up to $15,000 ($20,000 if you will be 50 or older by Dec. 31). "In effect, the government is supplementing your savings," says David Little, vice president of Eclectic Associates, a financial planning firm in Fullerton, Calif. "Assuming you're in the 25% federal tax bracket, every additional dollar you put into a 401(k) only reduces your take-home pay by about 75 cents."
You may also be able to deduct contributions to a Traditional IRA, depending upon your adjusted gross income (AGI) and whether you or your spouse are covered by a retirement plan at work. Moreover, you can defer taxes on any earnings within a 401(k) or Traditional IRA. Earnings on Roth IRAs are federal income tax free providing certain requirements are met. This year you can contribute the lesser of your compensation or $4,000 ($5,000 if you will be 50 or older by year end) in total to an IRA—either Roth, Traditional, or a combination of both. Contributions can be made to a non-working spouse's IRA as long as the couple files jointly and the total of the contribution to each spouse's IRA doesn't exceed the working spouse's compensation.
While there are no income limits for making non-deductible Traditional IRA contributions, there are income limits for Roth IRA contributions. Your AGI must be below $95,000 if single ($150,000 if married, filing jointly) to make a full Roth IRA contribution. Partial Roth IRA contributions are allowed if your AGI is between $95,000 and $110,000 if single ($150,000 to $160,000 if married, filing jointly).
Some people postpone IRA contributions until the last minute—but that can actually cost them. The sooner you make your contribution, the longer time it has to potentially generate earnings. Over time, that head start, combined with the tax-deferred compounding of any earnings, may make a sizeable difference in your retirement assets. "It comes down to a very basic rule of investing, which is the time value of money," says Jackie Perlman, senior tax research coordinator at H&R Block. "The longer you invest money, the more time it has to potentially grow."
Strategy #3: Get more energy efficient. High fuel prices are a reminder of the need to conserve energy—and the tax breaks that come along with such conservation. The 2005 energy bill includes tax credits—dollar for dollar reductions in your taxes—for money you spend on certain energy-related home improvements.
Jackie Perlman of H&R Block says manufacturers of eligible products, which range from insulation and replacement windows to oil-burning furnaces and solar panels, should provide consumers with proof that the product meets IRS guidelines—but you should make sure to obtain such proof before you buy. "We've seen a lot of advertising hype about products that aren't actually eligible for the credit," warns Perlman.
Buyers of hybrid cars and light trucks may also be eligible for a tax credit of up to $3,400 this year. Only certain models qualify for the tax credit, so you should double check that the one you're interested in is one of them. The credit will decline once your car's manufacturer sells more than 60,000 hybrids. So if you're considering buying a hybrid, it makes sense to act sooner rather than later.
Strategy #4: Keep better records of charitable contributions. One way to potentially lower your federal taxable income is to increase your donations to qualified charities. (There are limits on deductions, depending on, among other things, your adjusted gross income, the type of items donated, the type of charity, and how the charity will use the item.) However, you may also find tax savings opportunities when you donate goods—such as old clothes or household appliances—to a qualifying nonprofit by simply documenting donations valued over $250. You'll have to figure out how much that bag of last season's clothes is worth, but many tax-preparation software programs include modules to help you estimate the value of commonly donated goods. You can also find worksheets online at personal finance Web sites. "A lot of people lose track of what they donate over the course of the year," says Modly. "It doesn't take much time to keep good records, and the tax savings will be worth it."
Also consider donating securities with unrealized long-term gains. If you held the securities longer than one year, you can usually take a deduction for the fair market value of the securities at the time they are donated, subject to certain limitations, and you generally should be able to avoid paying taxes on the appreciation. If the securities were held one year or less, your deduction would generally be limited to the cost basis of the security.
Strategy #5: Consider taking advantage of stock losses.You'll need to monitor your portfolio closely, but Helen Modly, CFP, of Focus Wealth Management in Middlebury, Virginia, says tax-loss harvesting may be worthwhile if you can use the realized losses to offset realized gains in your portfolio throughout the year. The strategy involves selling securities at a loss in order to offset other capital gains realized elsewhere in your portfolio. For a given tax year, if you end up with a net loss, you can generally use it to offset up to $3,000 of ordinary income ($1,500 if married, filing separately). And unused losses can generally be carried forward to use against gains realized in future years.
For example: Let's say you own 100 shares of stock X, a major auto maker, and so far this year it's chalked up a $1,000 loss. Nonetheless, you want to keep the stock in your portfolio because you like its long-term prospects. You could sell stock X and immediately replace it with shares of stock Y, another auto maker that is similar to stock X. (We are also assuming that you didn't buy or sell an identical or substantially identical stock in the 30 days before selling stock X.) You could then hold stock Y indefinitely or sell it after at least 31 days to repurchase stock X. Or you could simply wait the 31 days and repurchase stock X without ever buying stock Y. In determining the best way to replace the stock, you should factor in any commissions and the fact that capital gains on securities held for one year or less are generally taxable at the higher ordinary income tax rates.
The time period is important because of wash sale rules. A wash sale may occur if you sell shares of a security at a loss and, within the 61-day window beginning 30 days before and ending 30 days after the sale, purchase shares of the same (or a substantially identical) security. It makes no difference if the buy or sell is in the same or different accounts. If a wash sale occurs, the loss from the transaction should be "disallowed" for tax purposes, and the amount of the loss should be added to the cost basis of the newly purchased shares. Effectively, the loss is deferred until the new shares are sold. "If market prices allow you to utilize this stratetgy and you execute it correctly and periodically over the course of the year, you should be able to generate various losses you can use to offset other realized gains or a small amount of ordinary income at the end of the year," says Modly.
Strategy #1: Take a look at your payroll withholding. If you're like most working Americans, you pay the lion's share of your taxes through payroll withholding. Now is the time to make sure your employer is withholding the right amount from your paycheck—not too much or too little.
If the amount withheld is too high, you'll end up getting a big tax refund. That can feel pretty nice—but it's an expensive thrill. In effect, you gave the IRS an interest-free loan equal to the refund amount. In that case, you may want to fill out a new W-4 form and submit it to your employer. If you aren't claiming the maximum number of allowances, you may be able to claim more to decrease your withholding amount.
If the amount withheld last year was too low, you might end up with a surprise tax bill that could disrupt your finances—perhaps forcing you to dip into emergency reserves or even borrow money. In certain cases, you could also face IRS penalties. Consider revising your W-4 form and submitting it to your employer to claim fewer allowances. You can also enter an additional amount that you want withheld from each paycheck. For example, you might want to take the amount you owed last year, and divide it by the number of pay periods remaining this year.
Strategy #2: Consider increasing contributions to retirement savings accounts. Pre-tax contributions to a 401(k) account come out of your paycheck before taxes, and are not included in taxable income for that year. In 2006, you can make pre-tax contributions of up to $15,000 ($20,000 if you will be 50 or older by Dec. 31). "In effect, the government is supplementing your savings," says David Little, vice president of Eclectic Associates, a financial planning firm in Fullerton, Calif. "Assuming you're in the 25% federal tax bracket, every additional dollar you put into a 401(k) only reduces your take-home pay by about 75 cents."
You may also be able to deduct contributions to a Traditional IRA, depending upon your adjusted gross income (AGI) and whether you or your spouse are covered by a retirement plan at work. Moreover, you can defer taxes on any earnings within a 401(k) or Traditional IRA. Earnings on Roth IRAs are federal income tax free providing certain requirements are met. This year you can contribute the lesser of your compensation or $4,000 ($5,000 if you will be 50 or older by year end) in total to an IRA—either Roth, Traditional, or a combination of both. Contributions can be made to a non-working spouse's IRA as long as the couple files jointly and the total of the contribution to each spouse's IRA doesn't exceed the working spouse's compensation.
While there are no income limits for making non-deductible Traditional IRA contributions, there are income limits for Roth IRA contributions. Your AGI must be below $95,000 if single ($150,000 if married, filing jointly) to make a full Roth IRA contribution. Partial Roth IRA contributions are allowed if your AGI is between $95,000 and $110,000 if single ($150,000 to $160,000 if married, filing jointly).
Some people postpone IRA contributions until the last minute—but that can actually cost them. The sooner you make your contribution, the longer time it has to potentially generate earnings. Over time, that head start, combined with the tax-deferred compounding of any earnings, may make a sizeable difference in your retirement assets. "It comes down to a very basic rule of investing, which is the time value of money," says Jackie Perlman, senior tax research coordinator at H&R Block. "The longer you invest money, the more time it has to potentially grow."
Strategy #3: Get more energy efficient. High fuel prices are a reminder of the need to conserve energy—and the tax breaks that come along with such conservation. The 2005 energy bill includes tax credits—dollar for dollar reductions in your taxes—for money you spend on certain energy-related home improvements.
Jackie Perlman of H&R Block says manufacturers of eligible products, which range from insulation and replacement windows to oil-burning furnaces and solar panels, should provide consumers with proof that the product meets IRS guidelines—but you should make sure to obtain such proof before you buy. "We've seen a lot of advertising hype about products that aren't actually eligible for the credit," warns Perlman.
Buyers of hybrid cars and light trucks may also be eligible for a tax credit of up to $3,400 this year. Only certain models qualify for the tax credit, so you should double check that the one you're interested in is one of them. The credit will decline once your car's manufacturer sells more than 60,000 hybrids. So if you're considering buying a hybrid, it makes sense to act sooner rather than later.
Strategy #4: Keep better records of charitable contributions. One way to potentially lower your federal taxable income is to increase your donations to qualified charities. (There are limits on deductions, depending on, among other things, your adjusted gross income, the type of items donated, the type of charity, and how the charity will use the item.) However, you may also find tax savings opportunities when you donate goods—such as old clothes or household appliances—to a qualifying nonprofit by simply documenting donations valued over $250. You'll have to figure out how much that bag of last season's clothes is worth, but many tax-preparation software programs include modules to help you estimate the value of commonly donated goods. You can also find worksheets online at personal finance Web sites. "A lot of people lose track of what they donate over the course of the year," says Modly. "It doesn't take much time to keep good records, and the tax savings will be worth it."
Also consider donating securities with unrealized long-term gains. If you held the securities longer than one year, you can usually take a deduction for the fair market value of the securities at the time they are donated, subject to certain limitations, and you generally should be able to avoid paying taxes on the appreciation. If the securities were held one year or less, your deduction would generally be limited to the cost basis of the security.
Strategy #5: Consider taking advantage of stock losses.You'll need to monitor your portfolio closely, but Helen Modly, CFP, of Focus Wealth Management in Middlebury, Virginia, says tax-loss harvesting may be worthwhile if you can use the realized losses to offset realized gains in your portfolio throughout the year. The strategy involves selling securities at a loss in order to offset other capital gains realized elsewhere in your portfolio. For a given tax year, if you end up with a net loss, you can generally use it to offset up to $3,000 of ordinary income ($1,500 if married, filing separately). And unused losses can generally be carried forward to use against gains realized in future years.
For example: Let's say you own 100 shares of stock X, a major auto maker, and so far this year it's chalked up a $1,000 loss. Nonetheless, you want to keep the stock in your portfolio because you like its long-term prospects. You could sell stock X and immediately replace it with shares of stock Y, another auto maker that is similar to stock X. (We are also assuming that you didn't buy or sell an identical or substantially identical stock in the 30 days before selling stock X.) You could then hold stock Y indefinitely or sell it after at least 31 days to repurchase stock X. Or you could simply wait the 31 days and repurchase stock X without ever buying stock Y. In determining the best way to replace the stock, you should factor in any commissions and the fact that capital gains on securities held for one year or less are generally taxable at the higher ordinary income tax rates.
The time period is important because of wash sale rules. A wash sale may occur if you sell shares of a security at a loss and, within the 61-day window beginning 30 days before and ending 30 days after the sale, purchase shares of the same (or a substantially identical) security. It makes no difference if the buy or sell is in the same or different accounts. If a wash sale occurs, the loss from the transaction should be "disallowed" for tax purposes, and the amount of the loss should be added to the cost basis of the newly purchased shares. Effectively, the loss is deferred until the new shares are sold. "If market prices allow you to utilize this stratetgy and you execute it correctly and periodically over the course of the year, you should be able to generate various losses you can use to offset other realized gains or a small amount of ordinary income at the end of the year," says Modly.
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