Planting the seeds of Love

The things we have loved and tended continue to thrive, even when we can no longer care for them.

I go grocery shopping nearly every day. We go every two weeks for a full order, but it seems I always need something just when I am about to prepare dinner. I'm not sure if I'm just absent-minded, or if I really go to the store because I meet people there. A little of both, I guess.

This day would not disappoint me. I was trying desperately to find a tomato that looked like I just picked it off the vine in my garden. In reality my garden failed miserably this year. It was all my fault. I just didn't take care of it. But now I wish I had. The prices of fresh vegetables are high and the quality low.

In frustration I finally grabbed the best one I could find. Backing away from the counter with my meager selection in hand, I wasn't paying attention.

"Oh, I'm so sorry!" I said as I nearly fell over a woman in an electric scooter. Many stores have started providing them as a courtesy to those who have difficulty getting around. I see them everywhere.

Well, except for this one, and it was right behind me.

"Oh, that's okay. I'm used to it. They need to put horns on these things," she said with a smile. "We are positioned a bit lower and somewhat out of view. They are also so quiet that often times people just don't hear us coming. But I don't know what I'd do without one."

"I was so wrapped up in trying to find a good tomato," I said.

She nodded. "The prices keep going up, too. I used to grow my own. The best in the neighborhood. But this year I just couldn’t do it any more."

"Well, I grew cherry tomatoes this year. They weren't supposed to be. They were Big Boys that never grew up," I said, laughing. She then maneuvered her way closer to find one for herself. "I'm sorry for your challenges. It must be frustrating," I added.

"Well, it all requires a change in attitude. I could spend my time thinking about what I can't do any more, or spend it on what new things I can do."

Then backing up and turning her cart so she could face me, she continued. "Sure, I loved gardening. Besides my vegetables I also planted many flowers. I learned all the tricks of the trade to make them bloom bigger and better each year. I thought my garden would look so bleak, but it's wonderful. You see, even though I can't do all the things I once did, the flowers can. The perennials keep doing what they know how to do best. They came back again all on their own. All those years of love and attention kept them strong, so my work paid off. It's like raising my children. I did all the work and now they will take over from here."

"I love your attitude," I said. "But tell me, what new thing have you discovered? You said you need to focus on new things you can do."

"Well, I can go to the grocery store and make new friends by running into perfect strangers with my cart," she said, grinning.

"Or they can fall over you when they aren't paying attention," I put in.

"What I've discovered is I can't grow flowers any more, but I can paint them. Since I can't get around as much and they are just sitting there, we are a perfect match. The annuals, the flowers I won't see in my yard because they need to be replanted each year, are as much a part of my memory as the sunsets."

"Oh, another sunset lover."

"Yes, but the great part about sunsets is, you not only remember how beautiful the sunset was, you remember when and where you saw it."

"And the flowers?"

"When I hang my flower paintings on the wall, the fresh scent lingers in my soul from years of loving them up close. Again just like raising kids," she said.

"Just like meeting you, my friend. You added beauty to my day and will brighten the dark corners of my memory just when I need it most," I told her.

The tomato was perfect with dinner.

Source: http://www.beliefnet.com/nllp/Inspiration.aspx?WT.mc_id=Inspiration03&date=10-05-2008

!! Engineer is King !!

Take 1
Two engineering students were walking across campus when onesaid, "Where did you get such a great bike?"
The second engineer replied, "Well, I was walking along yesterday minding my own business when a beautiful woman rode up on this bike. She threw the bike to the ground, took off all her clothes and said, "Take what you want."
"The second engineer nodded approvingly, "Good choice; the clothes probably wouldn't have fit."


Take 2
An architect, an artist and an engineer were discussing whether it was better to spend time with the wife or a mistress.
The architect said he enjoyed time with his wife, building a solid foundation for an enduring relationship. The artist said he enjoyed time with his mistress, because of the passion and mystery he found there. The engineer said, "I like both." "Both?" Engineer: "Yeah.
If you have a wife and a mistress, they will each assume you are spending time with the other woman, and you can go to the lab and get some work done."


Take 3
A pastor, a doctor and an engineer were waiting one morning for a particularly slow group of golfers.
The engineer fumed, "What's with these guys? We must have been waiting for 15 minutes!"
The doctor chimed in, "I don't know, but I've never seen such ineptitude! "
The pastor said, "Hey, here comes the greens-keeper. Let's have a word with him." [dramatic pause] "Hi George. Say, what's with that group ahead of us? They're rather slow, aren't they?"
The greens-keeper replied, "Oh, yes, that's a group of blind fire-fighters. They lost their sight saving our clubhouse from a fire last year, so we always let them play for free anytime." The group was silent for a moment.
The pastor said, "That's so sad. I think I will say a special prayer for them tonight."
The doctor said, "Good idea. And I'm going to contact my ophthalmologist buddy and see if there's anything he can do for them."
The engineer said, "Why can't these guys play at night?"

Ouch!!
Traditionally engineers have been viewed as geeks or nerds who do nothing but study strange kinds of things and manufacture big machines and buildings. Even nowadays when some coaching institute puts up an ad showing engineering aspirants they would put up posters of people with formal boring shirts and a metallic cap which the mechanics wear in garages. Whereas the doctors they'll show are all smart and dashing with matching colourful shirts inside their white aprons.
I mean why such discrimination against engineers. They would make serials like sanjeevani and dhadkan for doctors. Do only doctors have the charm to woo girls. And engineers are all boring people found glued to their computer screens or buried inside a pile of machines.
Come on, engineers are not like that. At least not what I've seen and known.
Then who are engineers and what are engineers. Well understanding this species is extremely difficult. However the common characteristics are:
Extreme
Whatever they do has to be on an extreme. No study for the 4-5 months of the semester and no sleep for the 4-5 days before the exams. The same student who you'll find with his torn jeans and the college t-shirt jumping out of the class(or rather bunking out of the class), impressing the panel of interviewers from the very best companies of the world.
The same stud whom you found half-conscious and fully drunk lying outside the hostel gate in the garden, can stun a gathering full of scholars while delivering a speech on consiousness.
Adaptive
Engineering students are supposed to be the most indisciplined and rude fellows on campus who are always clumsily dressed. But what happens to these guys/gals when they hit the corporate floor. They are the most smartly dressed people and present the face of India Inc.
They are as comfortable in the college-side khokha(dhaba) eating maggy sitting on the mat as they are while having lunch with their clients in a 5-star hotel.
Matter-of-factly
The 4 years of engineering teaches engineers how to learn. Learn different concepts, languages, techniques and anything else. Engineers are basically learners. Engineers doing well in CAT and other entrances are not because they are engineers but because they are good learners and can adapt to the changing situations.

To the optimist, the glass is half full. To the pessimist, the glass is half empty. To the engineer, the glass is twice as big as it needs to be.

Investment Banking - What do they do

An investment bank uses its proprietary book (own money) to lend others and invest. It started with the subprime crisis. Banks like Lehman, buy mortgage loans from other banks, and then package them to sell bonds against the loan pool. Often they add cash to make the loan pool more attractive, so that the bonds can be sold at a higher price.

Suppose mortgage was earning 6%, these bonds are sold at 4%. The difference is the spread which the investment bank earns. By selling these structured bonds, it raises money and frees capital. But when homebuyers started defaulting, these bonds lost their value. It all began like this, and then the virus spreads across markets.

3 Ways to Persuade

Aristotle (right) says, "Calm down, Plato.Campaign rhetoric isn't that bad."
The U.S. presidential campaign is kicking into high gear. That means both sides will be pulling out all of the rhetorical stops to try to persuade folks to pick their candidate. So, for a little perspective on the art of persuasion, we're turning to a political commentator unlike any on TV. We're turning to famous Greek philosopher Aristotle (384-322 BC). He wrote the book on rhetoric--called The Art of Rhetoric--way back in the 4th century BC. We asked Aristotle, how should those politicians persuade? He told us that, aside from "tortures, depositions, and the like," there are only three ways: logos, pathos, and ethos. In English, you might say logic, emotion, and character. Put it all together, and you get a reasonable argument, passionately made, by a person you trust.

Logos

Logic is an obvious one. After all, who isn't a sucker for irrefutable facts, verifiable numbers, and the inexorable march of reason across the course of a well-constructed speech? In fact, for many thinkers, including Aristotle's mentor, Plato, logos is the only legitimate way to win friends and influence people. The rest is sophistry. Logos was even more persuasive to ancient Greek philosophers, because they had a pretty expansive notion of what logos was. It could be the simple reason in the words of a speech, or it could mean the supreme reason of the universe, which all rational appeals naturally plugged into.

Pathos

Still, unlike old Plato, Aristotle was willing to look beyond strictly rational appeals. He recognized that people "do not give judgment in the same way when aggrieved as when pleased"--especially, he snobbily wrote, "audiences of limited intellectual scope and limited capacity to follow an extended chain of reasoning." Enter pathos. Let's face it, said Aristotle. If you really want to persuade people, sometimes you have to resort to emotional appeals. It's why campaigns try to wrap themselves in the flag and make you fear the other guy. It's why a winning smile and puppy-dog eyes work magic in getting your way. It's why lawyers have the saying "If the facts are on your side, pound the facts. If the law is on your side, pound the law. If neither is, pound the table." Of course, emotional appeals can take more subtle forms, too. Aristotle pointed out that eloquence itself is a kind of emotional persuasion. "Style makes the matter more persuasive," he wrote, "for the mind is tricked as though the speaker were telling the truth."

Ethos

For a reason-loving philosopher like Aristotle, admitting the power of pathos had to be hard enough. But he goes even further with ethos. "Character," he wrote, "contains almost the strongest proof of all." Quite simply, it matters who's trying to persuade you. If the person trying to sway you shows "common sense, virtue, and goodwill" (for Aristotle, an ethical trifecta), then really, aren't you more likely to believe what that person says? Aristotle thought so, and so thought that persuasive attempts must work to "establish the speaker himself as being of a certain type"--namely, the type of person you'll believe. Sometimes ethos is the only thing that matters. If, based on arcane medical tests, one doctor says you need immediate surgery, and another says you don't, how are you going to decide--except by judging who seems more credible? Similarly, lawyers put dueling experts on the stand, and politicians put dueling wonks on TV. Their reasons are obscure and technical, and only ethos makes the sale. That's why the old vaudeville philosophers used to say, "If you can fake sincerity, you've got it made."

Rohtang Tour

I went to visit Rohtang Pass while I was in Manali in month of August, 2008. It was a very unique experience for me. I was there with my mother and my maternal uncle and we enjoyed each and every bit of this journey and stay. Though I just wished if I was there with my friends as it would have been a different experience altogether. I do have many memorable moments from that journey. More than words, let's use snaps to go through the tour.



Roads on each turn seemed to end in the middle of the way. Sun was playing hide and seek that day, but it was a quite enjoyable weather while we were moving towards Rohtang.

In-Progress, keep visiting for new information and snaps !!

Systematic Investment Plans aka SIP

Systematic Investment Plans (SIPs) are much misunderstood. For one, investors often mistake SIPs as an investment avenue rather than a mode of investing in mutual funds. Then there are investors who invest in SIPs expecting quick results without fully appreciating the need to invest via SIPs for the long-term.

In an earlier article, we discussed how SIPs are perceived incorrectly by many investors as standalone investments. This explains why one of the most common queries we receive on the website is – which is the best SIP? Unfortunately, these investors have not been educated by their investment advisors about SIPs i.e. SIPs are only a mode of investing and not an independent investment avenue.

Minimum tenure of an SIP
Another misconception investors have about SIPs is with regards to the minimum tenure. Most fund houses have a minimum SIP tenure of 6 months. This leads investors to believe that 6 months is the ideal time frame for investing via SIPs (just like a lot of investors invest Rs 5,000 in mutual funds simply because that is the minimum investment amount for several mutual fund schemes).

In our view, investors should ideally invest via SIPs over at least 2-3 years. This way they can exploit the most critical benefit of an SIP – rupee cost averaging. Let’s understand how this is possible.

For an SIP to deliver the goods, it must witness a falling market. This way the investor can average out his cost of purchase. If the investor does not witness a downturn, i.e. he is only exposed to a market rally, the average purchase cost of his SIP will rise over a period of time.

SIPs in a rising market

Month of investment	NAV (Rs)	No. of Units
January	11.00	45.45
February	12.00	41.67
March	12.50	40.00
April	12.90	38.76
May	13.25	37.74
June	13.40	37.31
Avg. purchase cost of 6 SIPs	Rs 12.45

In the above table the average purchase cost of the SIP is Rs 12.45. Clearly, the SIP has not worked in the investor’s favour. Why is that? Because if he had instead invested lumpsum in January, his purchase cost would have been Rs 11.00 as opposed to the average purchase cost of Rs 12.45 over a 6-month period.


SIPs in a falling market

Month of investment	NAV (Rs)	No. of units
January	11.00	45.45
February	12.00	41.67
March	12.50	40.00
April	12.90	38.76
May	13.25	37.74
June	13.40	37.31
July	12.10	41.32
August	11.20	44.64
September	10.30	48.54
October	10.10	49.50
November	10.50	47.62
December	10.20	49.02
Avg. purchase cost of 12 SIPs	Rs 11.50

However, if the investor had opted for a longer investment tenure of say 12 months, he could have benefited from greater fluctuations in the mutual fund’s NAV. These fluctuations which arise over a market cycle lower the average purchase cost of the SIP over the long-term.

This is apparent from the above illustration. As is evident from the table, if the investor had taken an SIP for 12 months (instead of 6 months) his average purchase cost would have declined to Rs 11.50. Compare this with the average purchase cost of Rs 12.45 for a 6-month SIP.

It can be argued that there is no way for the investor to know when there is likely to be a turnaround in the markets (in this case a downturn). That is exactly our point. Since the investor does not know when markets will fall (and lower his average purchase cost), he must opt for a longer SIP tenure. Or at least he must manage his investments in a manner so that when his existing SIP terminates without witnessing a dip in stock markets, he can extend it further. This way should the markets fall, his SIP can benefit from a dip in the mutual fund NAV which in turn will lower his average purchase cost.

Points to remember before opting for an SIP

1) Ironically, while SIPs are meant to eliminate market-timing, investors must opt for a long-enough SIP tenure so as to ‘time’ the market downturn.

2) SIPs are equally beneficial in a falling market. Most investors believe that lumpsum investments (as opposed to SIPs) prove more beneficial in a falling market. This is only partly true. Having an SIP in operation during a falling market can ensure that investors stand to benefit should markets fall even further.

Health Insurance -- An Insight

Health insurance is a catch-all term that covers three distinct policies.

1. Mediclaim Policy
2. Hospitalisation Policy
3. Critical Illness Policy

Lets understand a little bit about each one of them.

Mediclaim Policy
This health policy reimburses you the actual hospitalisation cost for treatment of any disease and is offered only by non-life insurers.

Hospitalisation Policy
In this health policy, you primarily get a daily allowance for every day spent in the hospital. Some policies also provide higher daily allowance for stay in intensive care unit (ICU).
Others have a provision for lump sum payment if you undergo any of the surgical procedures covered in the policy.

Critical Illness Health Policy
This policy is in a way a specification to any of the above two policies. The next type of health insurance covers critical illness. Given the increased stress and strain of modern life combined with unhealthy and sedentary lifestyles, most of us are prone to serious illness.

But advances in modern medicine ensure that most of us survive these. This, however, comes at a cost and makes a serious dent in our ability to pay, either from salary or business. This is where a critical illness cover can step in and pay off a lump sum benefit.

Most life insurers have for long offered these covers as riders (riders are covers for additional risks or to enhance the existing risk covers). Now, these critical illness covers are also being offered as standalone policies for specific illnesses like cancer . These policies are recommended for salary earners.

A relevant question would be whether one would need a hospitalisation policy if s/he already has a Mediclaim policy?

A Mediclaim policy only reimburses the expenditure incurred in the actual treatment of the disease/illness at a hospital. The policies offered by life insurers are actually an addition and not replacements for Mediclaim policies. It can not be replaced by any other kind of policy.

Under the umbrella of Hospitalisation and Critical Illness Policies, Life-Insurers provide excellent products. Such policies should be a necessary part of your risk cover portfolio.

Policies offered by life insurers (Hospitalisation and Critical Illness Policies) cannot be cancelled during their tenure.
Non-life policies (Mediclaim Policies) can be cancelled.

Also, policies issued by life insurers guarantee a cover during their entire tenure.

For more information, you might find these links pretty useful while deciding which one to choose:
http://www.apnainsurance.com/index.html