Invest Now and Stop Wasting Your Money

"I don't wait for moods. You accomplish nothing if you do that. Your mind must know it has got to get down to work."- Pearl S BuckShalini and Sunil Bakshi defy the popular notion that Indians are traditionally savers and need not be taught how to save. Both are earning well but they are also spending equally well whether it's a bigger car, house or a long vacation. Shopping binges are not only domestic but also international.

For the last couple of years, I have heard them talk about the need to start their financial planning but it takes a backseat for various reasons right from corporate travel to meetings to vacations and so on. This was like Sunil's regular trips to the gym which stalled due to an illness and then never started for the next two years (even though Sunil knows how important this is for his health and family).

Procrastination or inaction is one of the biggest reasons for investors not achieving their financial goals, for lower returns and losses. So why do people really procrastinate?

There are several reasons why people delay or do not take action even when things are in their economic interest. They are caught up in many activities and action takes a backseat; they are not able to decide; they do not have time; or its just inertia, laziness or lack of understanding
Sunil had some 400 shares of Pfizer [Get Quote] that I have been telling him to sell when the stock was over Rs 1050 and opt for some other growth oriented blue chip stock. He wanted to do it but somehow he never got around to doing it. Today the stock is at Rs 650 levels. Now, he will surely not miss a meal because of his inaction, but these are some small steps that lead to where you end up in terms of your financial net worth.

At the same time, there are some investors who want to act all the time and believe that they have to keep jumping as the stock market index goes up and down. But for these same investors, when it comes to other areas they have no interest in things like buying a life insurance (pure term plan: risk cover) or making a will; these activities again take a backseat because there are no immediate returns or instant gratification.
What should one do to overcome this?

Read the book First Things First or The Power of Now. If you want a quick read, go for the executive summary of this book that can be read in 20 minutes. This could probably help in terms of introspection on your priorities and things that you might need to focus on.
If you do not want to read the books, then set a real short term goal like opening a bank account and doing it. You could use a penalty clause here and pay your wife Rs 1,000 for every day that you do not finish the activity.

If none of these work, you need to outsource or have a mentor. You need to have someone who is accountable and who you can blame when things go wrong (on a lighter note).
If none of the above work, then continue with what you have been doing and hope for the best.
Finally, it is the doing that makes all the difference. There is no substitute for action. Just knowing that exercise is good will not keep you fit. In the same vein, just knowing that this investment is good is of no use unless you buy it.

I come across so many intelligent people like Sunil who know many things but are simply unable to implement them because of various reasons. Whatever the reason, it affects your economic well being at the end of the day. For example, if you have to buy insurance, do it now.
Sunil had exclaimed to me sometime back: "I knew this mutual fund would do well, I wish I had put in money here. This fund manager was with me in my management school and he had told me to invest in this fund when I had met him. I know that this fund still has a lot of potential considering his capabilities." He is yet to invest in this fund one year after.
At the end, we have to choose between our financial situation driving us all the time, or we driving our financial situation. The first choice is what a lot of people follow as it is very easy and there's nothing to do.

The second choice is something where we have to think , act and then review; a slightly complicated situation for most people. So we end up taking the easier route and hope things will fall in place. Well, hope is surely not a strategy when it comes to your personal finance matters.

Source: Amar Pandit
http://inhome.rediff.com/money/2007/dec/03pf.htm

My Harris Poll

My Harris Poll
Here is my final Harris Poll ballot:

1. LSU
2. Georgia
3. Virginia Tech
4. Ohio State
5. USC
6. Hawaii
7. Oklahoma
8. Missouri
9. Kansas
10. Florida
11. Illinois
12. Arizona State
13. West Virginia
14. Auburn
15. BYU
16. Tennessee
17. Boston College
18. Wisconsin
19. Texas
20. South Florida
21. Cincinnati
22. Clemson
23. Texas Tech
24. Virginia
25. Boise State

The BCS Is In Total Disarray

Who likes complete and utter college football chaos?
Yep, that's what we've got this morning – BCS confusion and chaos.
No. 1 Missouri drowned in the San Antonio Riverwalk, and couches all over Morgantown were spared Saturday night when Pittsburgh, a 28 ½-point underdog, upset No. 2 West Virginia.

So now, who deserves to play in the national championship game? It figures that No. 3 Ohio State will move up when the final Bowl Championship Standings are released at 7 p.m. today. But the Big Ten champion Buckeyes can only guess who their opponent might be at this point.
Can you just imagine the crazy, confused look on the faces of those coaches and Harris poll voters? Surely they knew that the college football world is relying on them to figure it all out.
I know Georgia (10-2) and Kansas (11-1) were in the BCS top five last week, but they don't deserve to play in New Orleans. If you can't win your division and play for a conference title, you don't deserve to play in the national championship game.

Virginia Tech was sixth in the BCS standings last week. Good team. Excellent defense. The Hokies won the ACC title on Saturday, but there aren't many people bragging on the strength of that league.

Give me LSU (11-2).

The Tigers had a roller-coaster ride through Atlanta like no other on Saturday. Coach Les Miles started the day fending off what he called erroneous reports from ESPN about him leaving for Michigan.

He ended it by celebrating a Southeastern Conference title with a 21-14 win over Tennessee in the Georgia Dome.

"Well, I don't exactly know how votes will go, but we're the champions of the finest conference in America," Miles said. "We played Auburn, Alabama, Tennessee, Florida. I challenge any other team in America to go through this conference and come out unscathed."
Here's the thing about Miles' Tigers. Yes, LSU did lose against Kentucky and Arkansas. Both of those are respectable teams, but neither one is anywhere near the BCS discussion. The Wildcats and Razorbacks needed six overtimes combined to knock off the Tigers, though. Anything can happen in overtime.

LSU was seventh in the BCS computer rankings last week. The voters are going to have to do all the heavy lifting on LSU's behalf. It's incumbent on the voters to forget about their ballots last week and vote who they think truly deserves to be 1-2 and play for the national title.
Unfortunately for the Big 12, neither Missouri or Oklahoma is going to get in the BCS title mix.
Mizzou (11-2) can't be included after the way OU dominated the second half and ran away with the final score. OU (11-2) won't climb over LSU and USC into the No. 2 position, either.

Same goes for West Virginia. The Mountaineers (10-2) cannot lose to a big underdog such as the Panthers and then get into the national title game. Now, West Virginia will still be in a BCS bowl by virtue of winning the Big East title. But quarterback Pat White's dislocated thumb injury will be talked about in coal mines for years to come.

The rest of the BCS fallout will be relatively easy once the top two teams get decided. Oklahoma is going to the Tostitos Fiesta Bowl. Missouri and Kansas will battle it out for an at-large berth.
Don't forget about Hawaii. If the Warriors held on late Saturday and finished the regular season undefeated, June Jones' team will be in the BCS mix, too.

You can bet the happiest people on earth were Fox television executives. Now, we've all got a reason to tune into today's BCS selection show. Then, we can start the argument all over again an hour later.

WHO WILL IT BE?
Ohio State (11-1) looks like a lock for the BCS national title game. Staff writer Brian Davis ranks the possible opponents for the Buckeyes:

1. LSU (11-2): Any team that wins the SEC title must be considered. Voters have to move the Tigers way up, though.
2. USC (10-2): The Pac-10 champion Trojans can beat anybody right now. USC's November dominance was no fluke.
3. Virginia Tech (11-2): The Hokies make a nice storyline, but the ACC simply isn't stronger than the SEC and Pac-10.
4. Kansas (11-1): The Jayhawks have a legitimate beef with an 11-1 record. But KU didn't even win its division.
5. Georgia (10-2): Georgia's in the same boat with Kansas. Winning your division must be a prerequisite.

PROJECTING THE BCS
Staff writer Brian Davis projects the five BCS games as things stand today.
Allstate BCS national championship: Ohio State vs. LSU
FedEx Orange: Virginia Tech vs. West Virginia
Tostitos Fiesta: Oklahoma vs. Arizona State
Allstate Sugar: Georgia vs. Kansas
Rose: USC vs. Hawaii

Source: Brian Davis of the Dallas Morning News
http://www.dallasnews.com/sharedcontent/dws/spt/columnists/bdavis/stories/120207dnspodavis.2b09fb8.html

Army/Navy Game Returns Today To Baltimore

The rivalry between the Army and Navy is one of the strongest in sports. Either side could have a losing season, and still count the season as a success if they win the Army/Navy game.

Shortly before 9:30, the March On began, with both sides marching in procession onto the field. There are 8,000 Midshipmen and Cadets marching. The Army went first and the Navy's procession hit the field around 10 a.m.

Because of increased security, spectators are no longer allowed to line the streets and watch the March On.

Some Army supporters shared their support for the Cadets from Iraq. They will be able to watch the game from their base in Baghdad. "We actually work as part of a joint task force with the Navy, so there's a bit of camaraderie going on," an officer said. "Unfortunately, no alcohol, but there's a big-screen TV and some food."

"Everybody's getting along really well...except with the Navy guys," laughed Leroy Hill."We're fired up and ready to beat Navy!" said Brigadier General Rebecca Halstad, the first woman to graduate from West Point in 1981. "Everybody here today is a winner. It doesn't matter. Our nation's a winner because of these young men and women. I've watched this game in Afghanistan and in Iraq. You know where you are, but you feel close to home."

"The bond [between Army and Navy] is unique because they're going to go after each other as hard as any other two teams will, but after, you'll see them standing shoulder to shoulder. To me, there's nothing like it, " said noted author John Feinstein.

"This game generates a lot of spirit," said United States Naval Academy Superintendent Jeffrey Fowler. It is Fowler's first game as superintendent.

"To actually be here, live in Baltimore...I'm really excited about it," Fowler said. "These are people volunteering to serve their country in a time of war. As much as this is a sporting event, it's also a reflection of how wonderful these people are. We're not local institutions; we're national institutions.

"Fowler added that on the game field, they are enemies but once they are on the battlefield, they are friends and brothers.People from across the nation have arrived to see the Army/Navy game.

"It's the only game I actually do on television, so this is a chance I couldn't pass up," said Boomer Esiason. "It's really about the kids, because these kids have gone to these military academies knowing what faces them later on.

"Esiason noted that Navy seniors have never lost a game to the Army and that the current crop of Army plays have not beaten Navy, so there is a great deal at stake in Saturday's game.

Kai Jackson reports there seems to be a pretty even mix of Army and Navy supporters.Saturday's game is the 108th time the two teams have faced off on the football field. Navy has won 51 games, lost 49 and tied seven times.The first game was in 1890 at West Point. Navy won that game, 24-0.

Since 1899, Philadelphia has been the usual host for the game, because it is the halfway point between the two teams.Baltimore has hosted this game on three other occasions, most recently in 2000.

Mark Viviano reports there is nothing more important to these teams than winning the Army/Navy game. If Navy wins today, it will be the sixth consecutive win for them over the Army, a record. Navy already has broken a record this year, defeating Notre Dame for the first time in decades.

The Naval Academy also named a woman as commandant for the first time this year. Captain Peg Klein is also one of the youngest commandants ever.

Source: Baltimore WJZ
http://wjz.com/local/army.navy.football.2.600026.html

Blue Chips Get Bernanke Boost

Dow and S&P manage gains in a choppy session.


NEW YORK (CNNMoney.com) -- Blue chips gained Friday in a choppy session in which investors welcomed comments from Fed chair Ben Bernanke that implied further interest rate cuts are on the way, but showed some caution after a three-day advance.
The Dow Jones industrial average (Charts) added 0.4 percent, according to early tallies. The broader S&P 500 index (Charts) gained 0.8 percent. The tech-fueled Nasdaq (Charts) composite lost 0.3 percent.

Stocks rallied through the morning as investors welcomed falling oil prices and comments from Fed chief Ben Bernanke that suggested more rate cuts are on the way. The two developments helped ease worries that the turmoil in financial markets could send the economy into a recession.

But gains were limited in the afternoon by tech weakness, caused in part by disappointment about Dell's quarterly results.
Here's a look at what was moving near the close.

"A rate cut would be a shot in the arm to the markets and I think people are taking Bernanke's speech as meaning that another rate cut is coming, but stocks have been choppy and are going to remain choppy," said Dean Barber, president at Barber Financial Group.
Bernanke said Thursday night that the Fed remains concerned about the problems in the housing and credit markets and the threat posed to consumer spending and the economy. He said the Fed would remain "exceptionally alert and flexible" leading up to the next policy meeting on Dec. 11, all of which seemed to signal to Wall Street that the Fed will cut rates again.
Traders are currently betting that the central bank will cut rates by at least a quarter percentage point at the next meeting, with some banking on a half-point cut.
The Fed has cut interest rates at the last two policy meetings, lowering the fed funds rate, a key short-term interest rate, by 75 basis points since September. There are 100 basis points in one percentage point.

Stocks surged Wednesday after Donald Kohn, the Fed's No. 2 official, also hinted at rate cuts in a speech, saying that the central bank needs to be "nimble" in the face of the economic uncertainty.

Also helping stocks Thursday: reports that the White House and the major banks are nearing a deal that would temporarily freeze interest rates on certain subprime mortgage rates.
Stocks have also gotten a boost this week from technical factors, following Monday's selloff. That decline left the three major gauges down at least 10 percent from the October highs, the definition of a "correction." Traders seemed to be using that "correction," as an opportunity to get back into stocks at lower levels.

In other news Friday, personal income and spending gains slowed in October, missing forecasts. The core PCE deflator, the report's inflation component and a measure watched by the Fed, rose 0.2 percent, in line with forecasts.

A separate report, the Chicago PMI, rose to 52.9 in November, up from the previous month and topping expectations. The report tracks manufacturing activity in the Midwest. Another report showed a surprisingly large drop in construction spending in October, following a small increase in the previous month.

Source: By Alexandra Twin, CNNMoney.com senior writer
http://money.cnn.com/2007/11/30/markets/markets_0405/index.htm?section=money_latest