[financeboyz] Welcome
- From: "Radhesh Mohandas" <financerod@xxxxxxxxx>
- To: financeboyz@xxxxxxxxxxxxx
- Date: Tue, 23 Apr 2002 22:02:53 -0700
Dear Boyz,
The advertisements on yahoo have grown extremely annoying and hence I selected
this forum in a quick shopping free. Further we must prevent monopoly in any
field even if it means we have to undergo a little bit of trouble. OK !! OK !!
These people use linux and hence I selected this site :)
Now Business:
-------------
1. In the previous few days we have seen a lot of advice on 401K. If you have
an employer's contribution, then I would say that you have to go ahead and
invest the full amount. However in my case,
the employer doesnot provide any benefit and our provider is Goldman Sacch's. I
figured out that their
funds are quite crappy for small amounts and the revenue earned primarily goes
towards paying the Harward MBA's, most of whom get salaries bigger than the
GDP's of many third world countries. I also plan to go back to India as soon as
possible and there is now way that I can wait till I became a Budda to use the
money as then it will be of no use to me. So I made a simple calculation and
found that the maximum gain that I may incur will be at the most $1000
for great amounts of pain. Statistics should be used as a guiding tool and I am
going to enclose my calculations in a later mail.
2. I have had a few wins in the small financial decisions which I would like to
share with you and it is up to you to draw inferences. After a few months of
landing in the US, I came to know about the credit card system and in a hurry
applied to about 10 of them
which ended up mostly as rejects. Only later did I learn that these work
against my credit report. However I started building a good credit record
starting from $500 limit and using my credit cards
for every possible transaction. Eventually my credit rating went on imroving
and before graduating I had upto $20,000 limits. This helped me a lot during my
unemployment days when I piled up as much as $8k on them. And no I did not pay
much interest on them for I
had a 0% APR and the buffer period worked good for me.
Due to my credit ratings I got a low 4.9% APR for my car loan and a $300
discount from GEICO.
3. Another useful thing that I did was switching over to online banking in 1999
itself. This enabled me to
withdraw cash from any where, pay bills online and more
important get a much higher interest rate and sign on bonos which pumped up my
Return of investment high. Even if you end up gaining a $100 more than a friend
who didn't use this, you can see it as a free TV that you get every year or so.
4. I have been investing in stocks since 1999 with online brokerage firms and
there is a small learning curve that one has to bump into.
5. I am using a Roth IRA account for my daytrading so that I do not have to pay
capital gains :)
6. I have also done a little bit research on Real Estate Investments in recent
times
7. In short, for current investment, I would say that the US market is very
finicky and doing some international investment may fetch you better returns.
South Korea is the country to watch now.
-Cheers,
Radhesh
See Dave Matthews Band live or win a signed guitar
http://r.lycos.com/r/bmgfly_mail_dmb/http://win.ipromotions.com/lycos_020201/splash.asp
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