Trends in HR Coursework Example | Topics and Well Written Essays - 250 words

Patterns in HR - Coursework Example This social contrasts between two combining association makes critical multifaceted nature for the HR individuals. It is significant for the HR individuals to keep up a feeling of solidarity among the laborers of the two blending organizations. This patterns impacts bunches of changes related with authoritative structure and initiative in the associations. Every one of those progressions are managed by the HR division as it were. As indicated by the investigation of KPMG, mergers and securing presents impressive dangers (Napier, 2009, pp. 371-372). Every one of those perils impact HRM in the associations. There are a few different ways through which HR expert can manage it. HR individuals can help the pioneers of the two organizations to concur upon a typical arrangement of objectives. The HR individuals can offer awards to the workers of two combining associations for effectively completing their employments together. HR individuals can think of various group building exercises between the representatives of two distinct associations. It makes a feeling of solidarity among

Battle of Moscow - World War II - Operation Barbarossa

Skirmish of Moscow - World War II - Operation Barbarossa The Battle of Moscow was battled Oct. 2, 1941, to Jan. 7, 1942, during World War II (1939-1945). Following quite a while of assaults and counterattacks as German powers endeavored to invade Moscow, Soviet fortifications and an extreme Russian winter negatively affected German powers, assisting with foiling Germanys plans and leaving its powers depleted and dampened. Quick Facts: Battle of Moscow Dates: Oct. 2, 1941, to Jan. 7, 1942, during World War II (1939-1945)ï » ¿Soviet Union Armies and Commanders:Marshal Georgy ZhukovMarshal Aleksandr Vasilevsky1.25 million menGerman Armies and Commanders:Field Marshal Fedor von BockCol Gen. Heinz GuderianField Marshal Albert Kesselring1 million men Foundation On June 22, 1941, German powers propelled Operation Barbarossa and attacked the Soviet Union. The Germans had would have liked to initiate the activity in May however were postponed by the crusade in the Balkans and Greece. Opening the Eastern Front, they immediately overpowered Soviet powers and made enormous additions. Driving east, Field Marshal Fedor von Bocks Army Group Center won the Battle of Biaå‚ystok-Minsk in June, breaking the Soviet Western Front and murdering or catching more than 340,000 Soviet soldiers. Intersection the Dnieper River, the Germans started an extended fight for Smolensk. Regardless of enclosing the safeguards and pulverizing three Soviet armed forces, Bock was postponed into September before he could continue his development. Despite the fact that the way to Moscow was to a great extent open, Bock had to arrange powers south to help in the catch of Kiev. This was expected to Adolf Hitlers reluctance to keep taking on huge conflicts of circle which, however effective, had neglected to break the Soviet obstruction. Rather, he looked to crush the Soviet Unions financial base by catching Leningrad and the Caucasus oil fields. Among those coordinated against Kiev was Col. Gen. Heinz Guderians Panzergruppe 2. Accepting that Moscow was progressively significant, Guderian fought the choice however was overruled. By supporting Army Group Souths Kiev tasks, Bocks timetable was additionally deferred. It wasnt until Oct. 2, with the fall downpours setting in, that Army Group Center had the option to dispatch Operation Typhoon, the code name for Bocks Moscow hostile. The objective was to catch the Soviet capital before the unforgiving Russian winter started. Bocks Plan To achieve this objective, Bock planned to utilize the second, fourth, and ninth armed forces, upheld by Panzer Groups 2, 3, and 4. Air spread would be given by the Luftwaffes Luftflotte 2. The joined power numbered barely shy of 2 million men, 1,700 tanks, and 14,000 ordnance pieces. Plans for Operation Typhoon required a twofold pincer development against the Soviet Western and Reserve fronts close Vyazma while a subsequent power moved to catch Bryansk toward the south. On the off chance that these moves were effective, German powers would circle Moscow and force Soviet pioneer Joseph Stalin to make harmony. In spite of the fact that sensibly stable on paper, plans for Operation Typhoon neglected to represent the way that German powers were battered following a while of battling and their flexibly lines were experiencing issues getting merchandise to the front. Guderian later noticed that his powers were lacking in fuel from the start of the crusade. Soviet Preparations Mindful of the danger to Moscow, the Soviets started developing a progression of protective lines before the city. The first of these extended between Rzhev, Vyazma, and Bryansk, while a second, twofold line was worked among Kalinin and Kaluga named the Mozhaisk barrier line. To secure Moscow appropriate, the capitals residents were drafted to develop three lines of strongholds around the city. While Soviet labor was at first extended meager, fortifications were being brought west from the Far East as knowledge recommended that Japan didnt represent a prompt danger. The two countries had marked a lack of bias back in April 1941. Early German Successes Raging forward, two German panzer gatherings (third and fourth) immediately made increases close Vyazma and surrounded the nineteenth, twentieth, 24th, and 32nd Soviet militaries on Oct. 10. Instead of give up, the four Soviet militaries relentlessly proceeded with the battle, easing back the German development and constraining Bock to occupy troops to help in diminishing the pocket. Eventually the German administrator needed to submit 28 divisions to this battle, permitting the remainders of the Soviet Western and Reserve fronts to fall back to the Mozhaisk safeguard line and fortifications to surge forward, generally to help the Soviet fifth, sixteenth, 43rd, and 49th armed forces. Toward the south, Guderians panzers (tanks) quickly enclosed the whole Bryansk Front. Connecting with the German second Army, they caught Orel and Bryansk by Oct. 6. The encompassed Soviet powers, third and thirteenth militaries, proceeded with the battle, in the long run getting away from east. The underlying German tasks, be that as it may, caught more than 500,000 Soviet warriors. On Oct. 7, the main snow of the period fell and before long liquefied, turning the streets to mud and seriously hampering German tasks. Granulating forward, Bocks troops turned around various Soviet counterattacks and arrived at the Mozhaisk guards on Oct. 10. That equivalent day, Stalin reviewed Marshal Georgy Zhukov from the Siege of Leningrad and guided him to direct the guard of Moscow. Expecting order, he centered Soviet labor in the Mozhaisk line. Wearing Out the Germans Dwarfed, Zhukov sent his men at key focuses in the line at Volokolamsk, Mozhaisk, Maloyaroslavets, and Kaluga. Continuing his development on Oct. 13, Bock looked to maintain a strategic distance from the majority of the Soviet resistances by moving against Kalinin in the north and Kaluga and Tula in the south. While the initial two fell rapidly, the Soviets prevailing with regards to holding Tula. After frontal assaults caught Mozhaisk and Maloyaroslavets on Oct. 18 and ensuing German advances, Zhukov had to fall back behind the Nara River. Despite the fact that the Germans made increases, their powers were severely worn out and tormented by strategic issues. While German soldiers needed suitable winter attire, they additionally took misfortunes to the new T-34 tank, which was better than their Panzer IVs. By Nov. 15, the ground had solidified and mud stopped to be an issue. Looking to end the crusade, Bock coordinated the third and fourth panzer armed forces to circle Moscow from the north, while Guderian moved around the city from the south. The two powers were to connect up at Noginsk, 20 miles east of Moscow. German powers were eased back by Soviet safeguards yet prevailing with regards to taking Klin on Nov. 24 and after four days crossed the Moscow-Volga Canal before being pushed back. In the south, Guderian skirted Tula and took Stalinogorsk on Nov. 22. His hostile was checked by the Soviets close Kashira a couple of days after the fact. With the two prongs of his pincer development stalled, Bock propelled a frontal ambush at Naro-Fominsk on Dec. 1. Following four days of overwhelming battling, it was vanquished. On Dec. 2, a German observation unit came to Khimki, just five miles from Moscow. This denoted the farthest German development. With temperatures coming to - 50 F and as yet deficient with regards to winter gear, the Germans needed to end their offensives. Soviets Strike Back By Dec. 5, Zhukov had been intensely fortified by divisions from Siberia and the Far East. Having a hold of 58 divisions, he released a counteroffensive to push the Germans once again from Moscow. The start of the assault concurred with Hitler requesting German powers to accept a cautious position. Incapable to compose a strong resistance in their development positions, the Germans were constrained from Kalinin on Dec. 7, and the Soviets moved to encompass the third Panzer Army at Klin. This fizzled and the Soviets progressed on Rzhev. In the south, Soviet powers calmed pressure on Tula on Dec. 16. After two days, Bock was sacked for Field Marshal Gã ¼nther von Kluge, due to a great extent to Hitlers displeasure regarding German soldiers leading a vital retreat against his desires. The Russians were supported by extraordinary cold and poor climate that limited the Luftwaffes tasks. As the climate improved in late December and early January, the Luftwaffe started concentrated shelling on the side of German ground powers This eased back the adversary progresses and by Jan. 7, the Soviet counteroffensive reached a conclusion. Zhukov had pushed the Germans 60 to 160 miles from Moscow. Fallout The disappointment of German powers at Moscow bound Germany to battling a drawn out battle on the Eastern Front. This piece of the war would expend by far most of Germanys labor and assets for the rest of the contention. Setbacks for the Battle of Moscow are discussed, however assesses recommend German misfortunes of 248,000 to 400,000 and Soviet misfortunes of 650,000 to 1,280,000. Gradually constructing quality, the Soviets would reverse the situation of the war at the Battle of Stalingrad in late 1942 and mid 1943.

General Economic Indices for the Power Tool Market Essay

In evaluating the force apparatus ventures, it tends to be discovered that there are a few general financial files which have are significant in surveying the practicality of the business. There are four of these which could be surveyed with the end goal of the Able Corporation as they seek after their objectives with their items. These four general monetary files incorporate lodging begins, uses for private development, consumptions for business development, and uses for home fixes and improvement. To start with, the lodging start measurements which have gotten pertinent to the business â€Å"represent the start of the development of new exclusive single-family homes, townhouses, and multifamily loft buildings† (Frumkin, 2005, p. 132). Besides, it prohibits frameworks for lodging which fall under manufactured homes, bunch quarters, open lodging properties, redesigns made to existing houses, and changed over lodging from non-private to private lodging (Frumkin, 2005). From the chronicled information introduced from the US Census Bureau, there is a whimsical pattern that can be seen from the year 2004 to 2008. Be that as it may, it is obvious that there is a constant lessening from the year 2005 up to the 2008 leaving the year 2004 as the main special case. The individual qualities for every year are 1,955,800 for the year 2004; 2,068,300 for the year 2005; 1,800,900 for the year 2006; 1,355,000 for the year 2007; and 905,500 for the year 2008 (â€Å"New Privately Owned,† n. d. ). From the pattern appeared, it is made clear that the lodging units which have been begun are turning out to be bring down each year from the US information. Second, there are likewise significant information which are made accessible for the uses which are put for private fixes and improvement. This sort of information shows the measure of cash that has been utilized to improve the private spots for motivations behind fixes and improvement. For the year 2003, the information shows that $179,700,000,000 has been spent on the main quarter, $173,200,000,000 has been gone through on the subsequent quarter, $187,400,000 has been spent on the second from last quarter, and $166,700,000,000 has been spent on the final quarter (US Census Bureau News, 2008). Then again, there are expenses of $198,900,000,000 for the main quarter, $192,600,000,000 for the subsequent quarter, $202,100,000,000 for the second from last quarter, and $200,500,000,000 for the final quarter (US Census Bureau News, 2008). For the year 2005, the separate an incentive for the first to fourth quarters are $213,600,000,000 $192,800,000,000, $220,900,000,000 and $235,500,000,000 (US Census Bureau News, 2008). For the year 2006, the qualities for the individual four quarters are $232,200,000,000, $225,000,000,000, $231,000,000,000, and $226,000,000,000 (US Census Bureau News, 2008). Concerning the year 2007, the incentive for the first to the final quarter is $230,900,000,000, $227,700,000,000, $213,200,000,000, and $236,600,000,000 (US Census Bureau News, 2008). From these qualities, it is indicated that the uses for each quarter and over the years are expanding with the end goal that there has been more cost spent for this on the most recent long stretches of the recorded information. Third, the report of the US Census Bureau likewise shows that there are additionally consumptions for private development which can be concentrated from the year 2003 to 2007. For the year 2003, the absolute consumption is $705,276,000,000. The succeeding qualities are: $803,305,000,000 for 2004, $897,989,000,000 for 2005, $937,047,000,000 for the year 2006, and $875,010,000,000 for the year 2007 (â€Å"Construction and housing,† 2009). While the pattern shows that here is a steady increment from the year 2003 to the year 2006, there is an abrupt dive for 2007 which can be accounted to a few monetary variables that forbid the development of new private frameworks. Fourth, there is additionally a financial list accessible for consumptions on nonresidential units, which is likewise taken from the US Census Bureau. From the year 2003 to 2007, the separate qualities are $229,335,000,000, $238,478,000,000, $256,644,000,000, $295,715,000,000, and $349,566,000,000 (â€Å"Construction and housing,† 2009). From these information, it very well may be seen that there is a nonstop increment in the sum spent with the end goal of development nonresidential units. Comparable to the force instrument showcase, these financial general records are viewed as significant as a result of the job it plays as far as the interest for power apparatuses which are required for development. The lodging start information would direct what number of new force instruments might be required together with the measure of consumptions that are believed to be utilized for enhancements and development of new frameworks. The way that force devices are viewed as a need for the development and fix of lodging and nonresidential units relates this industry to the development of lodging and nonresidential ones. During situations where there are inconsistencies, note that these general monetary records will be of incredible assistance just when precision is available. In any case, when there are situations where it is hard to see which of the present discoveries are precise, there ought to be data from other related monetary elements that originate from the administration which could be a solid wellspring of information. In this manner, it very well may be seen that there are a few components which influence the force apparatus showcase considering the monetary relations it has with the development business. There are a few different ways through which the financial conjectures for the force device industry can be acquired corresponding to the development information. References Frumkin, N. (2005). Manual for financial markers (fourth Ed. ). Armonk, New York: M. E. Sharpe. Recently Privately Owned Housing Units Started. (n. d. ). Recovered April 23, 2009, from http://www. enumeration. gov/const/startsan. pdf. Segment 20: Construction and lodging. (2009). Recovered April 23, 2009, from http://www. statistics. gov/nudge/2008pubs/09statab/build. pdf. US Census Bureau News. (2008). Uses for upgrades and fixes of private properties evaluated at $226. 4 Billion out of 2007. Recovered April 23, 2009, from http://www. enumeration. gov/const/c50_curr. pdf.

The need for Financial Planning in Households - Free Essay Example

Financial planning is a must for every household. Financial planning goes beyond savings. It is an investment with a purpose. It is a plan to save and spend future income. It should be carefully budgeted. Financial Planning is the process of meeting your life goals through proper management of your finances. Life goals can include buying a house, saving for your childs higher education or planning for retirement. Today you find people living beyond their means, having credit card debt, making risky investments and doing things that are irresponsible and against the basic principles of financial planning. Further the proliferation of new and often complex financial products demands more financial expertise. Also turbulent conditions and changing tax laws compound the need for adequate financial planning. Thus it has become inevitable for all to get into financial planning and understanding financial products. Financial planning envisages both short term and long term savings. A portion of the savings is invested in certain assets. There are various investment options in the form of assets: bank d eposits, government saving schemes, shares, mutual funds, insurance, commodities, bonds, debentures, company fixed deposits etc. Financial planning isnt something that happens by itself. It requires focus and discipline. It is a six step process that helps you take a big picture look at where you are and where you want to be financially. Your Parents were right: money doesnt grow on trees. It actually grows on other money which is where we get the old saying, It takes money to make money. Money does have an amazing ability to make more money. The good news is it doesnt take much money to make this happen. SAVINGS = INVESTING Saving is what people usually do to meet short term goals. Your money is very safe in a savings account, and it is usually earning a small amount of interest. Its also easy for you to get to your money when you need. Investing means youre setting your money aside for longer term goals. Theres no guarantee that the money you invest will grow. In fact, it is normal for investments to rise and fall in value over time. But in the long run, investments can earn a lot more than you can usually make in a savings account. Why are savings and investing so important to your financial goal? For one, saving or investing money for your financial goals makes you less tempted to spend it. But the best reason for investing is that your money is actually making money for you. Any interest or investment gains get you that much closer to your financial goals. And you didnt have to do anything for it! Start saving early and youll be prepared when you need it, whether youre saving for a home, a childs education, or your retirement. If you start saving in your 20s, youll be off to a great start. If you dont, youll play catch-up for the rest of your life. Youngsters have an advantage that older people dont have: time. When they understand this concept and use time in their favour, young people have a much better chance of pursuing their dreams and reaching their financial goals. The Price of Procrastination You know that the more time you have to invest, the more money you are likely to end up having. But the flip side of that is true too. By waiting to invest, youre paying an opportunity cost. Its easy to say that you dont have enough money to start saving and investing now. Id rather wait until I have more money. But that decision probably costs you more than you think because the power of compounding works both ways. It costs you because waiting eans giving up earning compound interest from even just a small amount of money. Ask yourself the following question:- Could you spend 10 percent less than you do now, still have fun and put that money to work for your future? If you could save 10 percent of your income for future goals, what would those goals be? It takes more than luck to get what you want out of life. People need to know that by paying yourself first making saving a priority they can do more than just dream about what they want in the future. Whether ones income is small or large, setting aside some of it for investments requires selfdiscipline. By maintaining discipline to postpone buying certain things theyd like to have now they can enjoy the longer term benefits of having that money work for them through savings and investments. BUDGETING The first step in your financial planning is budgeting. Budgeting is a process for tracking, planning and controlling the inflow and outflow of income. It entails identifying all the sources of income and taking into account all current and future expenses, with an aim to meet an individuals financial goals. The primary aim of a budget planner is to ensure savings after the allocation for spending. Benefits of budgeting ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ It puts checks or balances in place in order to prevent overspending at various levels ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Takes into account the unexpected need for funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Helps discipline yourself ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Helps one maintain his/her standard of living post retirement Steps for budget planning:- Step 1:- Calculate your income: This should include income from all sources, including your paycheck and interest from any investment Step 2:- Determine your bill for essentials: List out your essential expenses, which may include rent, grocery, clothing, telephone and electricity bills and fuel and car maintenance. Calculate the amount spent on each. Step 3:- Note down your total debts, including interest payments on the same. Step 4:- Determine your bill for non-essentials: Your list of non essentials may include vacations, gifts and trips to restaurants. Calculate the amount spent on each. Step 5:- Calculate your savings: This is done by subtracting the figure obtained by adding steps 2, 3 and 4 from the figure obtained in step 1. Realize that unexpected things come up in life. You may have to break your budget plan, or reconstruct it, occasionally. However try to avoid debt to cover the shortage and stick to your budget as much as possible. Inflation Effects On Investments When you are planning your investment, it is critical that you take into account the effects of inflations on your investments. At its most basic level, inflation is simply a rise in prices. Over time, as the cost of goods and services increase, the value of a rupee is going to go down because you wont be able to purchase as much with those rupees as you could have in the last month or last year. How does inflation affect my investment decision? A Vada pav which used to cost Rs.2 five years back now the same costs Rs.7. The cost increase is not as a result of increase in quantity or better quality. The increase is a result of increase in prices of ingredients which have increased as a result of inflation. Change in the prices of some assets:- Assets Price then (2001- 02) Price now (2009-10) Sugar (1 kg) 46 85 Cooking Oil (5 liters) 390 500 Gold (10 grams) 17,138 37,138 Silver (1 kg) 7,868 28,345 Rice (1 kg) 30 75 Petrol (1 liter) 61.46 76.83 Diesel (1 liter) 43.88 52.74 Inflation is greatly feared by investors because it grinds away the value of your investment. Example:- If you invest Rs.1,000 in a one year fixed deposit that will return 5% over that year, you will be giving up Rs.1,000 right now for Rs.1,050 in 1 year. If over the course of that year there is an inflation rate of 6%, your expenses which were Rs.1,000 in the previous year will increase to Rs.1,060 at the end of the year. Thus even after investing your money for 1 year you are worse off compared to the previous year because the returns delivered by your investments has been below the inflation rate. What are the steps that an investor can take to avoid the adverse effects of inflation? Try to determine your real rate of return which is the return you can expect after factoring in the effects of inflation. In addition to being aware of the current rate of inflation, it is rucial to be aware of what inflation rate the experts are anticipating. Both the value of current investments and the attractiveness of future investments will change depending on the outlook for inflation. Also remember fixed income investments are particularly vulnerable to the effects of inflation. If you are locked into a particular interest rate, and inflation increases your earnings will not keep up and you will earn a negative return. Risk and Return Risk and investing go hand in hand. Risk can be defined as the chance one takes that all or part of the money put into an investment can be lost. The good news is that investing risk comes with the potential for investing reward which is what makes the whole process worthwhile. The basic thing to remember about risk is that it increases as the potential return increases. Essentially the bigger the risk is, the bigger the potential payoff. (Dont forget the two words potential payoff. There are no guarantees) Even seemingly no-risk products such as savings accounts and government bonds carry the risk of earning less than the inflation rate. If the return is less than the rate of inflation, the investment has actually lost ground because your earning arent being maximised as they might have been with a different investment vehicle. While you stay invested it is crucial you take necessary measures to manage your risk. Once you invest in any asset class you should mo nitor your investments and keep yourself updated about various market happenings to avoid any pitfalls. Always check the potential risks when quoted returns are unusually high. Power of Compounding As you pursue your financial planning, the most powerful tool for creating wealth safely and surely is the magical power of compounding. Albert Einstein had once remarked, The most powerful force in the universe is compound interest. Compounding is a simple concept that offers astounding returns: if you park your money in an investment with a given return, and then reinvest those earnings as you receive them, your investment grows exponentially over time. With simple interest, you earn interest only on the principal (that is, the amount you initially invested); with compounding, you earn interest on the principal and additionally earn interest on the interest. Consider what the power of compounding does to an investment of Rs.12,000 a year (that is, an affordable Rs.1,000 a month) in a scheme that offers a 9 per cent return, over 30 years. The total investment of Rs.3.6 lakhs (principal) grows to Rs.17.83 lakhs over that period. Compounding rewards disciplined investing and works best over long tenures. In the above example, the first 20 years yield is just Rs.6.69 lakhs. The last 10 years show the multiplier effect of the power of compounding. The longer you leave your money untouched, the faster and bigger it grows. For instance, stretching the above investment pattern to 40 years will give you Rs.44.20 lakhs. Compounding, thus, is a wonder tool that lets you make the most of small investments made over long periods of time to accumulate phenomenal wealth. It works best if you start investing early, and leave the money alone. Compounding is, in fact, the single most important reason for you to start investing right now. Every day you are invested is a day that your money is working for you, helping to ensure a financially secure and stable future. Time Value of Money As time passes you will realise that if 10 years back you could afford to purchase a full lunch for Rs.10, today you might afford to get a few pieces of vegetables only. This means that the value of a thousand rupee note would be higher today than after five years. Although the note is the same, you can do much more with the money if you have it now because over time you can earn more interest on your money. By receiving Rs.1,000 today you are poised to increase the future value of your money by investing and gaining interest over a five year period. At the most basic level the time value of money demonstrates that time literally is money the value of the money you have now is not the same as it will be in the future and vice versa. CHOOSING THE RIGHT INVESTMENT OPTIONS The choice of the best investment options will depend on personal circumstances as well as general market conditions. An investment for one objective may not suit the needs of the other. Right investment is a balance of three things: Liquidity, Safety and Return. Liquidity This will cover the ease with which the investment can be covered to cash to meet expenses. Some liquid investments are required to meet exingencies that arise in the normal course or otherwise. Safety This is about the risk factor of the investment. The worst case is losing all the invested money. The milder case is losing on the income or low income growth or investment growth. Inflation is also a risk, as the purchasing value of money reduces. Return Income generated by investments is another factor to consider. Safe investments offer steady but lower income and risky investments offer high returns or no returns at all! There are several short-term and long-term financial investment options available, some of which are given below: Thus, there is a staggering variety of investments to choose from. In the following chapters we will focus on these and explain about them. ASSET ALLOCATION STRATEGY Every Asset class has its own risk and returns. Equity Investments are considered to be risky investments as they might lead to erosion of entire capital invested, whereas government bonds are considered to be risk free as you can be confident that the government will not default on its interest payments. This is where asset allocation plays a crucial role. Asset allocation is a technique for investing your money into various asset classes that would suit your income and risk appetite. Asset allocation involves tradeoffs among three important variables: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Your time frame ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Your risk tolerance ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Your personal circumstances Depending on your age, lifestyle and family commitments your financial goals will vary. While allocating your funds to various assets, it is important to see that you distribute your funds across various assets to benefit from diversification. Normally, in an age based asset allocation, the amount allocated to equities is based on the clients age. The premise of using this model is as the investor gets older, his portfolio should be more conservative. However, as this is just a thumb rule, an investor is the best judge of what suits him the most. SELF PORTRAIT To know exactly where you stand financially, having financial statements compiled is one of the best ways to gain this kind of insight. A key component of a financial statement is a detailed and complete accounting of assets and liabilities associated with the person. Identifying Goals The most important step in financial planning is identifying and understanding what you want to accomplish. Money is merely a tool to be used to satisfy your desires. By understanding what you truly want, it is much easier to plan for how much you need to accomplish your goals. Identifying Assets Once your goals are identified, it is time to assess what assets are available to meet them. Assets need to be categorized as to their liquidity and the stability of their long term value. The key to identifying and categorizing assets is understanding when and how they generate cash. Make a list of all your assets which include your house, investments in shares, mutual funds, fixed deposits, money lying in the savings bank account etc Identifying Liabilities Indentifying your liabilities is as important as identifying the assets available. Ideally, the assets should be more than the liabilities. Else, planning is required to invest in assets to meet the liabilities and have some assets left over for earning income and investment purposes. Likely Future Earnings When estimating your future earnings you need to make certain assumptions. Some of the safer assumptions can be as follows:- If you are a salaried employee it is safe to assume that your salary income will increase at a rate of 8% p.a till retirement. Rate of return on debt investments can be assumed as 7% p.a. and return on equity index as 12% p.a. Likely Future Expenses Here again you need to make assumption like:- Long term inflation rate of 5% p.a Household and personal living expenses (including entertainment, education, marriage etc) expenses increase at a rate of 8% p.a (3% more then the rate of inflation) Planning Matching cash inflows from assets to cash outflows from liabilities is the crux of financial planning. In financial planning, goals are considered liabilities due to the fact they generally require cash outflows. This is a multi step approach. Example:- Suppose your goal is to save enough money for your childrens higher education Step 1: Determine the no. of years till your child will require higher professional education Step 2: Determine the education cost today. This calculation usually involves taking the current price of a professional course and multiplying it against an estimated annual rate of inflation. Step 3: Suppose it costs Rs.1,00,000 today for a professional course. Rs.1,00,000 x 1.05^20= Rs.1,79,585 would be the cost 12 years from now and with an expected 5 percent annual inflation rate. Step 4: The next step is to figure out the present value of that future cash outflow. To do that you would take the future value of the money and divide it by your expected rate of return. The future value of the Rs.1,00,000 equals Rs.1,79,585 as calculated above. The present value of that future value with an estimated annual return of 8 percent for 12 years is 1,79,585 / 1.08^20, which equals Rs.71,315. So you need to put Rs.71,315 today into an asset that will earn you 8 percent annually on average to be able to pay for your childs education in 12 years that costs 100,000 in todays terms. Step 5: For every cash outflow you anticipate in the future, you need to calculate the present value of that outflow and find an asset that can be used to cover the future cost. This process need to be repeated for all your future goals. Calculate your future expenses and start saving for it today so you are in a position to meet all of them. SAVINGS INVESTMENT RELATED PRODUCTS Banks Bank deposits are safe investments as all bank deposits are insured upto a maximum of Rs.100,000 under the Deposit Insurance Credit Guarantee Scheme of India. Banks are subject to control and regulated by the Reserve Bank of India. They offer various types of deposits, depending on the needs of the customer. Bank deposits are preferred more for their liquidity and safety than for the returns thereon. It is possible to get loans up to 75 90% of the deposit amount from banks against fixed deposit receipts. TYPES OF DEPOSITS AND KEY FEATURES Savings Bank Account ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Often the first banking product people use ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Low interest. However, highly liquid ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Suitable for inculcating the habit of savings among the customers Bank Fixed Deposit (Bank FDs) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Involves placing funds with the banks for a fixed term (not less than 30 days) for a certain stipulated amount of interest ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The ideal investment time for bank FDs is 6 to 12 months as normally interest on bank less than 6 months bank FDs is likely to be low ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The time frame assumes importance as early withdrawal carries a penalty Recurring Deposit Accounts ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Some fixed amount is deposited at monthly intervals for a pre-fixed term ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Earns higher interest than Savings Bank Accounts ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Helps in the saving of a fixed amount every month Special Bank Term Deposit Scheme ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ This is the only Tax Saving Scheme available with banks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Relief under Section 80C of the Income Tax, Act available ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Term deposit of five years maturity in a scheduled bank is mandatory GOVERNMENT SCHEMES Tax Savings Schemes The Government has launched Income Tax Saving Schemes including: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ National Savings Certificates (NSC) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Public Provident Fund (PPF) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Post Office Scheme (POS) Bonds A Bond is a loan given by the buyer to the issuer of the instrument, in return for interest. Bonds can be issued by companies, financial institutions, or even the Government. The buyer receives interest income from the seller and the par value of the bond is receivable by the buyer on the maturity date which is different types. Company Fixed Deposits Key Features ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Fixed deposit scheme offered by a company. Similar to a bank deposit ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Used by companies to borrow from small investors ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The investment period must be selected carefully as most FDs are not encashable prior to their maturity ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Not as safe as a bank deposit. Company deposits are unsecured ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Offer higher returns than bank FDs, since they entail higher risks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Rating can be guide to their safety Mutual Funds A mutual fund pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each unit represents an investors proportionate ownership of the funds holdings and the income those holdings generate. Salient Features of Mutual Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Professional Management Money is invested through fund managers ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Diversification Diversification is an investing strategy that can be neatly summed up as Dont put all your eggs in one basket. By owning shares in a mutual fund instead of owning individual stocks or bonds, the risk is spread. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Economies of Scale Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Liquidity Just like individual shares, mutual fund units are convertible into money by way of sale in the market ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Simplicity Buying a mutual fund unit is simple. Any bank has its own line of mutual funds, and the minimum investment amount is small ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Investors should examine each of the above feat ures carefully before investing in mutual Funds. Types of Mutual Funds Each fund has a predetermined investment objective that tailors the funds assets, regions of investments and investment strategies. At the fundamental level, there are three varieties of mutual funds: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Equity funds (stocks) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Fixed-income funds (bonds) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Money market funds All mutual funds are variations of these three asset classes. For example, while equity funds that invest in fast-growing companies are known as growth funds, equity funds that invest only in companies of the same sector or region are known as specialty funds. Mutual Funds can also be classified as open-ended or closed-end, depending on the maturity date of the fund. Open-ended Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ An open-ended fund does not have a maturity date ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Investors can buy and sell units of an open-ended fund from / to the Asset Management Company (AMC), at the mutual fund offices or their Investor Service Centres (ISCs) or through the stock exchange. The prices at ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ which purchase and redemption transactions take place in a mutual fund are based on the net asset value (NAV) of the fund Closed-end Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Closed-end funds run for a specific period ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ On the specified maturity date, all units are redeemed and the scheme comes to a close ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The units shall be listed on a stock exchange to provide liquidity ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Investors buy and sell the units among themselves, at the price prevailing in the stock market Money Market Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Invest in extremely short-term fixed income instruments ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The returns may not be very high, but the principal is safe ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ These offer better returns than savings account but lower than fixed deposits without compromising liquidity Bond/Income Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Purpose is to provide current income on a steady basis ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Invests primarily in government and corporate debt ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ While fund holdings may appreciate in value, the primary objective of these funds is to provide a steady cash flow to investors Balanced Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Objective is to provide a balanced mixture of safety, income and capital appreciation ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Strategy is to invest in a combination of fixed income and equities Equity Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Invest in shares and stocks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Represent the largest category of mutual funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Investment objective is long-term capital growth with some income ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Many different types of equity funds because of the different types of investment objectives Foreign/International Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ An international fund (or foreign fund) invests in the equity of the companies which are outside the home country Sector funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ These are targeted at specific sectors of the economy such as financial, technology, health, etc. Index Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ This type of mutual fund replicates the performance of a broad market index such as the SENSEX or NIFTY ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ An index fund merely replicates the market return and benefits investors in the form of low fees Equity Shares A stock market is a public market for the trading of company shares at an agreed price; these are securities listed on a stock exchange. The shares are listed and traded on stock exchanges which facilitate the buying and selling of stocks in the secondary market. The prime stock exchanges in India are The Stock Exchange Mumbai, known as BSE and the National Stock Exchange known as NSE. The purpose of a stock exchange is to facilitate the trading of securities between buyers and sellers, thus providing a marketplace. Investing in equities is riskier than and definitely demands more time than other investments. There are two ways in which investment in equities can be made: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Through the primary market (by applying for shares that are offered to the public) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Through the secondary market (by buying shares that are listed on the stock exchanges) Having first understood the markets, it is important to know how to go about selecting a company, a stock and the right price. A little bit of research, some diversification and proper monitoring will ensure that the investor earns good returns. Depository System In order to invest in shares, it is necessary to understand the term Dematerialisation of Shares, as almost all shares now are in Demat form. Earlier, there used to be physical share certificates issued, which are now converted to Electronic form. For this, an understanding of the depository system becomes essential. A depository is an organisation which holds securities (like shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. It can be compared with a bank, which holds the funds for depositors. Benefits of availing depository services include: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ A safe and convenient way to hold securities; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Immediate transfer of securities; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ No stamp duty on transfer of securities; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Reduction in paperwork involved in transfer of securities; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Reduction in transaction cost; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ No odd lot problem, even one share can be traded; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Nomination facility; Change in address recorded ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Transmission of securities is done by DP eliminating c orrespondence with companies; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Automatic credit into demat account of shares, arising out of bonus/split/consolidation/ merger etc. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Holding investments in equity and debt instruments in a single account. Points to Remember ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Participants range from small individual stock investors to large fund traders, who can be based anywhere ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ One of the most important sources for companies to raise money ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Stock market is often considered the primary indicator of a countrys economic strength and development ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Stock prices fluctuate, in marked contrast to the bank deposits or bonds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The reasons for investing in equity must also be reviewed periodically to ensure that they are still valid ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Sometimes the market seems to react irrationally to economic or financial news, even if that news is likely to have no real effect on the val ue of securities itself ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-changing events, making the stock market behaviour difficult to predict. Investment Philosophies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Evaluate risk of every investment ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Have clarity on short term and long term needs of the family ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Decide the investment based on the needs ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Do not invest in any scheme that you do not understand ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Do not invest on trust. Have everything backed up by documents ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Take into account tax implication of every income ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Do not blindly follow market tips and rumours ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Anything that appears unnaturally high or low will have some catch disguised ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Do not follow schemes where you may protect the interest but lose the principal ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Invest with knowledge after understanding the product well PROTECTION RELATED PRODUCTS Insurance Policies Insurance, as the name suggests is an insurance against future loss. However, although life insurance is most common, there are other schemes that generate regular income and cover other types of losses. Life Insurance Life Insurance is a contract providing for payment of a sum of money to the person assured or, following him to the person entitled to receive the same, on the happening of a certain event. It is a good method to protect your family financially, in case of death, by providing funds for the loss of income. Term Life Insurance ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Gaining popularity in India ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Lump sum is paid to the designated beneficiary in case of the death of the insured ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Policies are usually for 5, 10, 15, 20 or 30 years ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Low premium compared to other insurance policies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Does not carry any cash value Endowment Policies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Provide for periodic payment of premiums and a lump sum amount either in the event of death of the insured or on the date of expiry of the policy, whichever occurs earlier Annuity / Pension Policies / Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ No life insurance cover but only a guaranteed income either for life or a certain period ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Taken so as to get income after the retirement ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Premium can be paid as a single lump sum or through instalments paid over a certain number of years ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The insured receives back a specific sum periodically from a specified date onwards (can be monthly, half yearly or annual) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ In case of the death, it also offers residual benefit to the nominee. Units Linked Insurance Policy ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ A State Life is a life insurance policy which provides a combination of risk cover and investment. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The dynamics of the capital market have a direct bearing on the performance of the State Life Insurance Company. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The investment risk is generally borne by the investor ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Most insurers offer a wide range of funds to suit ones investment objectives, risk profile and time horizons. Different funds have different risk profiles. The potential for returns also varies from fund to fund ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ ULIPs offered by different insurers have varying charge structures. Broadly the different fees and charges include- Premium allocation charges, Mortality charges, fund management fees, policy/administration charges and fund switching charges Health Insurance Health Insurance policies insure you against several illnesses and guarantee you stay financially secure should you ever require treatment. They safeguard your peace of mind, eliminate all worries about treatment expenses, and allow you to focus your energy on more important things. There are several health insurance or medical insurance plans in India. These can be divided into the following categories based in the coverage offered: Comprehensive health insurance coverage: These plans provide you complete health coverage through a hospitalisation cover while at the same time also creating a health fund to cover any other healthcare expenses Hospitalisation plan: These health insurance plans cover your expenses in case you need to be hospitalised. Within this category, products may have different payout structures and limits for various heads of expenditure. The hospitalisation coverage may be reimbursement based plans or fixed benefit plans. These plans aim to cover th e more frequent medical expenses. Critical Illness Plans: These health insurance plans provide you coverage against critical illness such as heart attack, organ transplant, stroke, and kidney failure among others. These plans aim to cover infrequent and higher ticket size medical expenses. Specific Conditions Coverage: These plans are designed specifically to offer health insurance against certain complications due to diabetes or cancer. They may also include features such as disease management programs which are specific to the condition covered. BORROWING RELATED PRODUCTS With todays heightened cost of living, debts become a usual thing. A number of people apply for personal loans, car loans, mortgage loans, and a whole lot of others. There seems to be a loan for everything. Often, financial troubles begin as a result of too large debt. DIFFERENT TYPES OF LOANS AVAILABLE Personal Loans Personal loans are usually taken when you have to meet unexpected needs that are beyond a persons immediate financial means. People often get into financial trouble by taking out personal loans just for the extra money, or to purchase frivolous items, and then find that they cant make the monthly payments required. Key Features ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Be ready for high interest rates of 14-18% p.a, high fees and even higher monthly instalments ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The application process can be time consuming, taking weeks to be approved and funds disbursed, quite impractical for those unexpected immediate needs ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Rates and terms of the personal loans can vary tremendously, careful comparison is wise, helping to ensure that the consumer does not pay more than necessary for those emergency funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Take your time and do the homework before taking a personal loan ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Not advisable except for emergency requirements Housing Loan A home loan is just another loan with your house as the collateral. If you are buying your first home then it is important to understand the ins and outs of home loans. There are many variations according to the economy and what the market is doing that determines things that are going to apply to your home loan. Key Features ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Banks finance 75-80% of the property value ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Banks have recently started to offer lower fixed teaser rates for a short period of time. Then after some time the interest rates jump up and become variable. Be careful to read the fine print. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Most housing loans have a minimum lock in period of 3 years or more. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Heavy penalty charges for pre payment ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Hidden fees include appraisal fees and other charges associated with the loan ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ If you want to sell the house the loan becomes payable immediately Reverse Mortgage The whole idea of a reverse mortgage is entirely opposite to the regular mortgage process where a person pays the bank for a mortgaged property. This concept is particularly popular in the western countries. Key Features A senior citizen who holds a ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ house property, but lacks a regular source of income can put his property on mortgage with a bank or housing finance company. The bank/ housing finance company pays the person a regular paymentÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The good thing is that the person who reverse mortgages his property can stay in the house for his life and continue to receive the much needed regular payments. So effectively the property now pays for the owner. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The way this works is that the bank will have the right to sell off the property after the incumbent passes away or leaves the place, and to recover the loan. It passes on any extra amount to the legal heir Draft Guidelines of reverse mortgage in India prepared by RBI have the following salient Features: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Any house owner over 60 years in eligible ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The maximum loan is upto 60% of the value of residential property ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The maximum period is 15 years ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The borrower can opt for monthly, quarterly, annual or lump sum payments at any point, as per his discretion ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The revaluation of the property has to be undertaken by the Bank or HFC once every 5 years. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The amount received through reverse mortgage is considered as loan and not income ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Reverse mortgage rates can be fixed or floating and hence will vary according to market conditions depending on the interest rate regime chosen by the borrower Loan against Securities The main purpose of taking loans against shares is to preserve investment, apart from taking care of personal needs. People also resort to such a loan to meet their contingencies and get liquidity without actually selling the shares. It is advisable to take loan against securities only when you are expecting a certain sum of money a few months down the line and you need some funds in the interim. Key Features ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ RBI allows banks to lend up to 75% of the value of demat shares and 50 per cent of the value of physical shares. However, banks can, and do, fix their own limits with respect to the extent of funding within that range ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Banks have an approved list of securities that they lend against and this list varies from one lender to the other. This list also gets revised from time to time ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Loans against mutual fund units are based on their NAV value ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The amount of loan that you will get depends on the valuation of the security, applicable margin, your ability to service and repay the loan and other conditions ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Interest rates usually range between 14-18% ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Charges vary from bank to bank and usually include processing fees (1-1.5%) and documentation charges ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€š  ¢ Only fully paid shares are accepted ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Scrips in the name of corporate, minors, Firms, HUF, and NRIs are not eligible for finance under this scheme. Credit Card Debt Credit card debt is usually resorted to when all other option including personal loans are exhausted. Credit card debt is unsecured therefore it carries very high interest rates. A credit card gives you the power to spend money even when you dont have the funds. Lots of young people misuse it by spending on frivolous things Stay away from credit card debt: Lots of young people are having problems with credit debt. Paying only the minimum is costly and will ensure that you have debt for a long time. Try to consistently pay as much as you are able towards your debts you will be glad you did. Key Features Interest rates on credit ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ cards are probably the highest compared to other credit facilities. The interest ranges from 18-36% p.a ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Debt keeps accumulating via interest and penalties. If you are not paying off your outstanding balance before the interest free period expires then you will be paying a high interest rate. This can make it hard to reduce your credit card debt ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ As most credit card limits are low some borrowers tend to neglect the fact that the interest payment is relatively small on a month to month basis. This is a dangerous practice because the amount of interest you pay can quickly jump to exceed the value of your actual debt ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Be very careful of having multiple cards and be very careful of taking up the marketing promotions from credit card providers when they actively try and get you to increase your credit card limit Steps to Avoid Excess Debt Set debt limits ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Decide how much you can afford to be in debt. Then, make sure that your total debt is below this amount ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ You may also want to set a limit on how much money out of each paycheck you are willing to spend on debts. Having this sort of limit can be very useful in ensuring that you do not overextend your credit Shop carefully for debts ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ If you do need a loan, be sure to do your research well. Always understand how much you will pay for your loan in interest and look for the lowest interest rates and the most affordable debt you can find. This will ensure that you do not end up overspending on interest rates ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Once a year, check to make sure that you are still getting the best interest rates and best loan deals possible Dont give into temptation ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Once you show that you can handle some debt, many companies will be eager to offer you more credit. Companies may start sending you credit card offers and your lenders may offer you additional credit products ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ While it may be tempting to take out lots of new debt, you need to be wary of doing so. Only take out a loan or credit service when you really need to Automatically have money go towards your bills ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Many banks and employers will allow you to have some money automatically deducted from your paycheck ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ This can be a great way to ensure that your bills get paid promptly. Plus, since you wont even see the money, you are less likely to miss it ADVANTAGES OF FINANCIAL EDUCATION The pressing need for financial education comes from two areas. Firstly is the deterioration of personal finances. Today youngsters resort to living beyond their means, have credit card debt, and making risky investments. Second is the proliferation of new, and often complex, financial products that demand more financial expertise of consumers. Turbulent market conditions and changing tax laws compound the need for sound financial education. Even Government servants are moving from defined contribution regimes to schemes with benefits for retirement, at their option. Therefore, retirement planning becomes very important. Some Advantages Of Financial Education Are:- ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Helps build a secure financial future. Lack of financial knowledge can affect an individuals or familys ability to save for long-term goals and make them vulnerable to severe financial crisis ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Prepared for financial emergencies. By incorporating contingencies in your financial plan you are ready to face unseen circumstances head on ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ People who are financially literate are reluctant to buy financial products that they do not understand and thus do not fall for marketing gimmicks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Feeling a sense of accomplishment. Financial education is effective at moving people closer to their goals ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Makes a more responsible individual with a disciplined approach to money. Helps people from overspending and inculcates a habit of savings and investments ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ You become more aware of questionable lending practices adopted by banks and other lenders to sell their products ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Feel like you are setting a good example for your family ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Money management skills can benefit other aspects of your life.

Exxon and Chad-Cameron Pipeline - 7344 Words

UV0100 EXXONMOBIL AND THE CHAD CAMEROON PIPELINE In November 1999, ExxonMobil CEO Lee Raymond faced the potential collapse of the Chad/Cameroon Oil Pipeline project on which the company was about to embark. Both Royal Dutch/Shell and France’s TotalFinaElf, ExxonMobil’s partners in the Pipeline Consortium, had just withdrawn, citing environmental concerns among other things and leaving its future temporarily in doubt. This withdrawal delighted many environmental groups long opposed to the pipeline. A spokesperson for the Rainforest Action Network (RAN), a grassroots environmental organization and longtime pipeline opponent, said in a press release: Based on its experience in Nigeria, Royal Dutch/Shell recognizes a bad situation when it†¦show more content†¦(Ironically, the Exxon Mobil merger reassembled the legendary Standard Oil, John Rockefeller’s company. In 1911, antitrust authorities forced Standard Oil to break into two companies: Standard Oil of New Jerse y, which later became Exxon, and Standard Oil of New York, which later became Mobil.) Nonetheless, the two companies had very different images in the oil industry. Mobil was seen as having a â€Å"combative feistiness,† whereas Exxon had a â€Å"relentlessly efficient stuffiness.†5 Because of the size of the companies, the merger was scrutinized by antitrust regulators and, in order to complete the merger, both companies had to get rid of certain operations, including almost 2,500 service stations in the United States and Europe. By the mere fact that a growing population of environmentally concerned people worldwide was skeptical of large oil companies and their promotion of fossil fuel use, both Exxon and Mobil struggled with their public image. Exxon had the most damage to contain, however, because of the 1989 Exxon Valdez oil spill in Alaska’s Prince William Sound, when the single-hulled oil tanker, while dodging icebergs, hit a reef outside the shipping lan e. The

Moral And Social Developments Of Children - 1337 Words

The moral and social developments of children in their first years of life are critical. Children go through many stages that influence their lives such as family, school, friends and technologic or the media. During infancy, children learn from the people around them to recognize the good and bad in this way begin to form their idea of morality. Researchers like as Jean Piaget and Lawrence Kohlberg carefully studied moral reasoning of children and girls. Both agree that moral development progresses slowly and is an orderly process that takes time. Piaget all its research center in the perception of children as Kohlberg came to adulthood. According to the psychologist, in her book Ramona Rubio Developmental Psychology (1992) states that for Piaget and Kohlberg’s moral development is not understood as a process of internalization of norms, otherwise acquisition of autonomous principles of justice.† Jean Piaget and Lawrence Kohlberg studied moral and reasoning carefully. 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Khmer New Year in Cambodia free essay sample

In the villages the people engage in traditional Khmer games, they play games such as the Bas Angkunh ‘seed throwing’, Chaol Chhoung ‘twisted-scarf throwing’, Leak Kanseng ‘twisted-scarf hide’ and dance to traditional Khmer songs. The first day of Khmer New Year is called â€Å"Maha Sangkran†, Sangkran means movement and refers to that the sun is moving into a new Zodiac sign and Maha means great. Some say that Maha Sangkran means welcome to the new spirits. In the morning the Cambodians will go to the temple and offer food to the monks and receive blessings. During this time the Cambodians clean and decorate their homes and prepare fruits and drinks on a table or in their spirit house to welcome the new spirits. Elderly people like to meditate or pray the Dharma because they believe that any spirit that comes to their home will stay with them throughout the whole year and take care of their family. The second day is called â€Å"Wanabot† and it is the day that they offer gifts to parents, grandparents and elders. In the evening of this day many Cambodians will go to the temple and build a mountain of sand to remember their ancestors who have passed away and have the monks give them blessings of happiness and peace. The third day is called â€Å"Leung Sakk† and this is the first day of the new year. In the morning the Cambodians go to the temple and perform a ceremony where the mountain of sand gets blessed. The last ceremony is called â€Å"Pithi Srang Preah† and the purpose of this ceremony is to honor and to give a special cleansing to Buddha Statues, the monks, elders, grandparents and parents. During this ceremony the participators apologize for any mistakes they have made during the last year. The Khmer New Year is not only a great festival it is also an opportunity to pass on the Cambodian traditions to the next generation. In ancient countries of Chompou Tvip (the central continent of the seven continents surrounding Mount Meru) the elder people adopted the Khmer New Year’s date in Khe Mikase (January), i. e. he early year. According to the lunar calendar, they formerly chose three seasons including Heman Radov or winter, Kimha Radov ir hot season and Vasan Radov or rainy season. Since Chol Sakarach (Lesser Era) they have formally adopted the solar calendar and held the Khmer New Year Festival in Khe Chet (fifth month) that is a free time from their farming. Four main seasons in the solar calendar contain winter, spring, summer and autumn. The Khmer people have adopted the fifth solar month, known as Khe Chet, to celebrate their New Year festival. Usually, according to the solar calendar, the Khmer New Year falls on the 13th of April although sometimes it falls on the 14th of April. The auspicious occasion of the Khmer New Year is detailed in the astrological almanac and extends over three days. The first day is known as Maha Sangkran or â€Å"Great Almanac Day†, the second day is called Veara Vanabath or â€Å"Worshipping Day†, and the third day is known as Veara Leung Sak or â€Å"Rank and Promotion Day†. Of the three days Veara Leung Sak is considered the most auspicious. The history of the Khmer New Year is closely connected to the seven signs of the zodiac for the week. The legend of the New Year is detailed in the Almanac which says: In ancient, happier times, a young man by the name of Thoamabal, the son of a tycoon, had an extensive knowledge of three Vedas (ancient books on Hinduism) by the age of seven. Thoamabal’s father built a temple under the spread of a large Chrey tree (a fig tree) on the banks of a river that was home to many species of birds. He had an innate ability that enabled him to understand the languages of birds. Thoamabal’s attributes allowed him to become a layman in charge of religious ceremonies for all classes of people. Upon hearing this news another religious leader Kabel Maha Prohm, decided to challenge Thoamabal with tree riddles. He vowed that if Thaomabal could successfully answer the riddles he, Kabel Maha Prohm, would be beheaded; however if Thoamabal could not answer the riddles correctly then it woul d be Thoamabal who would be beheaded. Thoamabal insisted on having seven days to answer the puzzling enigma until Kabel Maha Prohm agreed. For six days Thoamabal could not solve the problems and knew that he faced the prospect of being killed by Kabel Maha Prohm the next morning. He therefore decided to hide himself and let his life fade away by natural causes. He hid himself beneath a pair of sugar palm trees in which a pair of eagles were nesting, that night Thoamabal overheard the eagles talking. The female asked, â€Å"What will we eat tomorrow morning? † The male eagle replied, â€Å"We will eat the flesh of Thoamalobal because tomorrow he is going to be beheaded by Kabie Maha Prohm due to his inability to solve the riddles†. The female then asked, â€Å"What are the riddles? † The male answered, â€Å"The first riddle is, where is luck to be found in the mornine? † Of course the answer is that luck is on the face because people always take water to wash their faces. The second riddle asked, where is luck located at noon? It is on the chest because people always take water to wash their chests. Finally, the third question asked, where is luck located in the evening? The answer is that luck is on the feet because people always wash their feet in the evening. Thoamabal overheard all of the conversation and so happily returned to his temple. In the morning Kabel Maha Prohm came to ask Thoamabal if he could answer the three riddles. Thoamabal successfully answered each of the riddles. Kabel Maha Prohm realixing he had failed, called his seven daughters, who were maids of Branma, to learn of his fate. Kabal Maha Prohm said, â€Å"Your father is foing to be beheaded in front of Thoamabal. If my head is set on the earth , if will set fire to Earth, if my head is thrown into the air, the rain will evaporate, if my head is thrown into the sea, the sea will dry up. Therefore I ask you, my seven daughters to get a holy metal tray on which to set your father’s head†. Having said this, he beheaded himself and his head was passed to Neang Toungsa, the eldest of his daughters. She placed her father’s head on the holy tray and then proceeded to walk around Mount Meru for one hour, respectfully keeping the tray on her right hand. She then took the tray to the temporary sanctuary of Phnom Kailas. At Phnom Kailas, Preah Visakam created a hall where seven holy glasses (Pheakabatei Saphea) were set. The glasses were for use by angels during ceremonies. Each year the seven angels took turns to invoke the head of Kabel Maha Prohm to and complete a holy procession around Mount Meru. Following the holy procession the angels returned to their heaven. The Seven Angels of the Almanac: If the annual procession talls on a Sunday then the day will be known as Toungsa, Monday is Kooreak, Tuesday is called Reaksa, Wednesday is   Kereney, Friday is known as Kemera and Saturday is Mahaotra. During the Khmer New Year Festival, youths gather to play popular traditional games such as Chaol Chhoung (throwing a ball) and Bas Angkunh (throwing brown seeds). The youths are normally divided into female and male teams to play these games. In some parts of Cambodia, e. g. Siem Reap and Battambang, they play a game known as the â€Å"Trot Dance†. Trot performers dance and ask for alms from house to house in their village. A man will ride on a long curved stick with a deer’s head on one side and with a cluster of grass on the other side like the deer’s tail. Two men pretend to be hunters and are armed with a crossbow. When they receive alms they will donate it for the benefit of the local pagoda. In villages along the Mekong Riverinthe province of Kandal women gather to rowboats in front of the pagodas. This action is believed to appease the crocodiles. This custom originated long ago when many crocodiles lived in the river. In some villages, people trample on effigies to appease the ghosts that live in the trees near the pagodas and ask for happiness in the coming year. The Khmer people will gather together and visit pagodas and temples on the occasion of the Khmer New year. Each year many residents from other provinces visit Angkor Wat to worship to the powerful gods and trace their ancestors’ heritage.