Want to make your child a Rocket Scientist?:You can really make your dream come true.

Every parents want their children to become the most successful, most powerful figure in the world. This dream is common to almost all the parents in the world. But dreams are easy to see and challenging to fulfill. The world has become a global village and nowadays the local corporate affairs have really become global, making this world a much more competitive & challenging place to survive. Everyone is running after their dreams but less than half is fulfilled. All the companies are running after profit, people are running after them to fetch a good earning to sustain, and the rising tide of inflation rate is running after people to make them even more miserable. I think the present scenario is affecting the people so much that parents are giving up dreaming as they have become confused and unpredictable about the future of this present situation. But its time for a GOOD NEWS. We all know the saying that "where there is a will, there is a way" and the US government has showed the "WILL" by introducing the idea of a PLUS loan(PARENT LOAN FOR UNDERGRADUATE STUDENTS) which is sponsored federally for the undergraduate and dependent students. With the help of this , a parent can now dream of making his child a "Rocket Scientist" or a "Doctor" as they have got the best funding options to support their child's education.

Criteria for getting the Loan and basic features.
Parents can apply for the loan if they are doing it for the education of their undergraduate or dependent children.Parents of dependent students are eligible to get the loan. Besides the incumbent must be a US citizen. Before application a Credit check is also need to be done. One can take a loan equal to the full cost of his/her child's education. After a new law being enforced by the federal government on 1st July 2006, the interest rate of the loan taken on or after the mentioned date is fixed at 8.5%. The repayment starts after 60days of disbursement of the loan. But a parent can postpone the repayment if his/her child remains enrolled in the course or drops out or continue with the course. But a prior intimation through an written application furnishing the reason must be produced.

Credit Card: a Curse or a Boon?

"Credit Card",two simple words yet very powerful to help you during crisis or emergency, pay your urgent bills and even to ruin you and make you helpless.I think nowadays these three situations are common with almost all the people who own a credit card. From the ancient times human beings have learned the art of customizing anything according to their own need. In the modern times credit card is such a tool. Today credit cards hold different meaning to different people. It is a tool to deal with emergency,a smart device to impress your girlfriend , a way to spend in an unplanned way and finally a tool to make you cry at the end. Though it looks very smart when you open your wallet full of stylish,colorful credit cards for payment of your purchase in a mall or a store,yet many are still unaware of the fact that it has become a global problem.In the US most of the people are facing this problem.specially the student community. The card issuing authorities have acted smartly as they are fully aware of the needs of the students and youths and accordingly made sound marketing strategies to enter the market.But the failure on their part is that they have not mentioned the negative consequences and proper usage methods. This has resulted in unwise usage of credit cards which finally resulted in many suicide cases. The youths often get carried away when they find that with the help of a plastic card ,they can actually buy many things,even if instant cash is not available with them. But they often overlook the fact that spending must be in accordance with the income and ability to pay back the interest. Most of the credit cards charge high interest rates and the students find it difficult to cope up with the situation. I feel that in this global financial crisis,the credit cards played an important role.The banks have issued millions of cards just to gain profit.Their sales strategies were faulty with a poor research. They sold credit cards to practically everyone they wanted,but before that they forgot the fact that how they will recover the money. For example if a bank ,just to maximize its business, issues 100 credit cards worth 2 lakhs of credit limit ,all to the students ,the chances of recovering the debt is very low.I think that it is a crime on the part of the users, as wasteful expenditure is an injustice to the society and this situation is actually creating a crisis and a drift in the society and top of all the financial organizations and the banks are giving indulgence to the matter in order to maximize their profit.

insurance: a basic need.

This article is for two types of people: one who always thinks that he/she has saved a lot for his/her future and also for his/her family and will be able to sustain his life as God has given enough, overlooking the potential risks. The other type of people wants to get insured but has a great fear & dilemma in his/her mind thinking what type of policy to take?how much to invest ? or from whom to take. Now a days most of the Insurance companies operate through Agency model and sometimes people also look down upon this channel as they feel that the agents are mere representatives of the company and cannot manage their portfolio. Don't worry,this article will make you aware of basic Dos and Don't s before purchasing a policy and also about basic functionality of various types of Insurance Policy.

Today I will try to cover all about ULIPs or Unit Linked Insurance Plans as an overview.Don't get scared after hearing the word "UNIT LINKED" or thinking of the present Bearish market situation, you can infact still gain a lot. Making money is just a matter of paitence and time. Now lets start our topic:

ULIP: how they work?

Unit Linked Insurance Policies (ULIPs) as an investment option are very much similar to mutual funds in terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared.

Similarly ULIP investors have the freedom of investing in their chosen portfolio or funds like the equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component. But why to go for an ULIP..the answer is: wealth maximization can be realized only in the long run and though various companies promise to double your money in one year or so, actually cannot as nothing is in their hands. So it is advisable to go for ULIPS taking care of the present situation as only time can give you actual realization. Besides in ULIPs not all of your money is invested in the equity market.A portion is also kept safe in the debt instrument or money market instrument and you have the authority and freedom to construct your portfolio. But in case of OPEN_ENDED mutual funds you do not have the option. Either you have to invest in a equity mutual fund or a debt mutual fund.Besides in money matters people always have the mentality to get short-term gains.But remember nothing can be gained in shortcut. Besides another good thing is that there is a 3 years locking period in all the insurance policies thus it will act more or less like a fixed deposit for the traditional investors. Thus the option is up to you: you want to play safe? or take a chance? But most of the people don't go for ULIPS due this locking period but I would rather suggest that go for it if you want to gain out of this situation. Besides most ULIPSs are attached with good insurance schemes which will really benefit you and your family. I have seen people suffering due to certain sudden mishap.Anything can happen anytime but the problem is people always ignore those threats or danger. Besides do your Financial Health Checkup to know where you stand? How much you need to invest and covered on the basis of your income , present inflation rate and predictable future inflation rate.(I will publish the Financial Checkup Format in my later posts).

Basic Dos and Dont's before investing in an ULIP

1. Always opt for Child plans or retirement plans due to their smart combination of investment and insurance.
2. Go for a practical term period. If you are 25 then go for 10-15 years term in a single policy .
3. Don't think that you are over insured, no one is over insured, rather always take 2-3 policies with 10-15 years term. As this will give you maximum returns in time of maturity.Besides in time of emergency you can surrender one policy and still you will not have to worry as you have two more policies with you. If you have only one policy with a huge premium and a term of 30 years then think of the situation if something happens you are left with nothing.
4. Always enquire about the sectors where your money is invested, portfolio manager, his experience , surrender charges & allocation charges. Always go for policies where allocation charges are low.
5. Do not believe in fake promises like"doubling you money in 3 years" & etc etc.
6. If any agent contact you,tell him/her to take his/her Sales Manger with him and always give appointment to 2-3 agents of different company to make a comparative study.
7. Always do the financial checkup before deciding on the Premium amount: As a sales manger or agent may convince you to give high premium ..due to his earning benefit.but always calculate that according to your income and expenditure how much you can pay.
8. Besides always try to opt for Half-yearly or yearly premium mode.
9. Fill up the form by your own specially the sections where amount,terms,and name of plan to be given
10. After receiving your policy kit don't keep it in your cupboard rather use the ids and passwords given inside it to regularly track your wealth performance on a monthly basis.