SHAME ON YOU: Rep. Speier To You Mr. Sullivan,. Chairman Waxman's Eric R. Dinallo, Superintendent, NY State Insurance Dept, Lynn E. Turner, arch accountant, Securities Exchange Commission Robert B. Willumstad, CEO, Martin J. Sullivan, CEO, AIG

Obaid Karki An Outcast Underdog Libertarian Diogenesist Kabbalist Spinoziste Qutbist Pantheon Hexalingual Automath Former UAE Under Secretary Independent Street-Knowledge Urban Talking-head. Unaffiliated to a State, an Organized Religion Group, a Sect or a Kin and an Anti Tribal Gentile. Every phrase is an earnest verdict. Thats my bio. If you dont agree with me thats an honor. It is immoral to appease to please. My word hurts big time because it is quality of a moment of truth US Conspiracism is a Grassroot Religion alas belief masterminded by the Establishment to Worthy the Worthless. This in-thing is sold as Partisanship to the Unemployables for free. Its the Disneyfication of the Mass to glorify a Legacy of Ghosts as Rothchild, Bilderberg, English royalty etc. Neither Mainstream Media & nor Hollywood or the Publisher's Clan would be outsourced to such task simply because they are assigned to edutain the Untalentable Aristocrat Urban Parasites. AIG American International Group, Inc. (NYSE) Google Finance Yahoo Finance MSN Money AOL Finance CNN Money Reuters 3.51 0.36 ( 9.30%) 7 Oct 4:00pm ET Open: 4.22 High: 4.22 Low: 3.51 Volume: 90285327 Avg Vol: 218654000 Mkt Cap: 9.44B Disclaimer After Hours: 3.54 +0.03 (0.85%) 7 Oct 7:59pm ET Crisis strengthens Manulife's hand in AIG bid Manulife and other insurers are expected to bid for AIG divisions as early as this week, they said. The American insurance giant is under pressure to sell Former AIG Executives Get Harsh Criticism ...



http://www.youtube.com/watch?v=jK4_rDGEXZs&hl=en

SHAME ON YOU: Rep. Speier To You Mr. Sullivan,. Chairman Waxman's Eric R. Dinallo, Superintendent, NY State Insurance Dept, Lynn E. Turner, arch accountant, Securities Exchange Commission Robert B. Willumstad, CEO, Martin J. Sullivan, CEO, AIG

Obaid Karki An Outcast Underdog Libertarian Diogenesist Kabbalist Spinoziste Qutbist Pantheon Hexalingual Automath Former UAE Under Secretary Independent Street-Knowledge Urban Talking-head. Unaffiliated to a State, an Organized Religion Group, a Sect or a Kin and an Anti Tribal Gentile. Every phrase is an earnest verdict. Thats my bio. If you dont agree with me thats an honor. It is immoral to appease to please. My word hurts big time because it is quality of a moment of truth US Conspiracism is a Grassroot Religion alas belief masterminded by the Establishment to Worthy the Worthless. This in-thing is sold as Partisanship to the Unemployables for free. Its the Disneyfication of the Mass to glorify a Legacy of Ghosts as Rothchild, Bilderberg, English royalty etc. Neither Mainstream Media & nor Hollywood or the Publisher's Clan would be outsourced to such task simply because they are assigned to edutain the Untalentable Aristocrat Urban Parasites. AIG American International Group, Inc. (NYSE) Google Finance Yahoo Finance MSN Money AOL Finance CNN Money Reuters 3.51 0.36 ( 9.30%) 7 Oct 4:00pm ET Open: 4.22 High: 4.22 Low: 3.51 Volume: 90285327 Avg Vol: 218654000 Mkt Cap: 9.44B Disclaimer After Hours: 3.54 +0.03 (0.85%) 7 Oct 7:59pm ET Crisis strengthens Manulife's hand in AIG bid Manulife and other insurers are expected to bid for AIG divisions as early as this week, they said. The American insurance giant is under pressure to sell Former AIG Executives Get Harsh Criticism ...



http://www.youtube.com/watch?v=jK4_rDGEXZs&hl=en

Toys for Tots at MassMutual: Mike Fanning and Diana Ruddick

Diane Ruddick, vice president of field operations at Massachusetts Mutual Life Insurance Company (MassMutual), and Michael R. Fanning, executive vice president of MassMutual's US Insurance Group look over some of the toys donated by MassMutual employees for the annual Toys for Tots drive. Marines picked up the toys at MassMutual's headquarters on State Street in Springfield, Mass. on Wednesday, Dec. 15.



http://www.youtube.com/watch?v=lVRqq5k3Gz0&hl=en

Market Psychology

Today we are inundated with tons of information about the economy, stocks, government agencies and foreign governments. They show us charts and graphs of the increase/decrease in oil production over the last 5 years, the amount of maple syrup produced in Vermont for the past century, the time it takes to bounce a signal off the moon and all kinds of other nonsense that we can live without. The talking heads on the investment programs, both radio and TV, tell us how this is going to affect the price of certain stocks and the market in general. Well, maybe.

When you step back to get a better view of the market because the trees are in the way you really get a different view. No matter what stock or mutual fund you own there is one important factor that is causing all of them to change. It is the mass thinking of all the people who own equities of any type. The stock market is a reflection of this mass thinking and causes changes in human behavior. This mass thinking does not necessarily reflect what the economy is doing at any specific moment.

Take the euphoria of stock buyers at the end of 1999 and the beginning of 2000. All the mass psychology was bullish and everyone knew the market was going to go higher. The economy knew better and stocks headed down. The market was a reflection of what we could not see.

Currently many people are becoming bearish and think the market is headed lower, but no one really knows until after the fact. It is dangerous to be either bullish or bearish at this moment. So what is the best course of action when you are not sure of what to do with your money? Keep in mind that protection of your capital, especially your retirement money, is a prime consideration. If you own a stock now that has been going up you don't want to sell it, but you can protect yourself against loss and lock in profit by placing an Open Stop-Loss Order with your broker. Keep moving the stop up as the stock goes higher.

If you have a stock or fund that is going down you must either sell out or place an order to get out if it goes down further. Usually 10% is about right. If your stock is $40 place your stop at $36.

If the mass psychology becomes too negative it can cause massive selling and even the best equities get flushed. All boats go down when the tides goes out. If you do not have a loss limit in place at all times you will lose your investment capital. The example of this was what happened when the World Trade Center was destroyed. Selling was caused by mass psychology and had little to do with valuation.

It is a herd instinct and you don't want to be led to slaughter will all the other dumb animals. Protect your money. Put in a stop today.

SHAME ON YOU: Rep. Speier To You Mr. Sullivan,. Chairman Waxman's Eric R. Dinallo, Superintendent, NY State Insurance Dept, Lynn E. Turner, arch accountant, Securities Exchange Commission Robert B. Willumstad, CEO, Martin J. Sullivan, CEO, AIG

Obaid Karki An Outcast Underdog Libertarian Diogenesist Kabbalist Spinoziste Qutbist Pantheon Hexalingual Automath Former UAE Under Secretary Independent Street-Knowledge Urban Talking-head. Unaffiliated to a State, an Organized Religion Group, a Sect or a Kin and an Anti Tribal Gentile. Every phrase is an earnest verdict. Thats my bio. If you dont agree with me thats an honor. It is immoral to appease to please. My word hurts big time because it is quality of a moment of truth US Conspiracism is a Grassroot Religion alas belief masterminded by the Establishment to Worthy the Worthless. This in-thing is sold as Partisanship to the Unemployables for free. Its the Disneyfication of the Mass to glorify a Legacy of Ghosts as Rothchild, Bilderberg, English royalty etc. Neither Mainstream Media & nor Hollywood or the Publisher's Clan would be outsourced to such task simply because they are assigned to edutain the Untalentable Aristocrat Urban Parasites. AIG American International Group, Inc. (NYSE) Google Finance Yahoo Finance MSN Money AOL Finance CNN Money Reuters 3.51 0.36 ( 9.30%) 7 Oct 4:00pm ET Open: 4.22 High: 4.22 Low: 3.51 Volume: 90285327 Avg Vol: 218654000 Mkt Cap: 9.44B Disclaimer After Hours: 3.54 +0.03 (0.85%) 7 Oct 7:59pm ET Crisis strengthens Manulife's hand in AIG bid Manulife and other insurers are expected to bid for AIG divisions as early as this week, they said. The American insurance giant is under pressure to sell Former AIG Executives Get Harsh Criticism ...



http://www.youtube.com/watch?v=jK4_rDGEXZs&hl=en

SHAME ON YOU: Rep. Speier To You Mr. Sullivan,. Chairman Waxman's Eric R. Dinallo, Superintendent, NY State Insurance Dept, Lynn E. Turner, arch accountant, Securities Exchange Commission Robert B. Willumstad, CEO, Martin J. Sullivan, CEO, AIG

Obaid Karki An Outcast Underdog Libertarian Diogenesist Kabbalist Spinoziste Qutbist Pantheon Hexalingual Automath Former UAE Under Secretary Independent Street-Knowledge Urban Talking-head. Unaffiliated to a State, an Organized Religion Group, a Sect or a Kin and an Anti Tribal Gentile. Every phrase is an earnest verdict. Thats my bio. If you dont agree with me thats an honor. It is immoral to appease to please. My word hurts big time because it is quality of a moment of truth US Conspiracism is a Grassroot Religion alas belief masterminded by the Establishment to Worthy the Worthless. This in-thing is sold as Partisanship to the Unemployables for free. Its the Disneyfication of the Mass to glorify a Legacy of Ghosts as Rothchild, Bilderberg, English royalty etc. Neither Mainstream Media & nor Hollywood or the Publisher's Clan would be outsourced to such task simply because they are assigned to edutain the Untalentable Aristocrat Urban Parasites. AIG American International Group, Inc. (NYSE) Google Finance Yahoo Finance MSN Money AOL Finance CNN Money Reuters 3.51 0.36 ( 9.30%) 7 Oct 4:00pm ET Open: 4.22 High: 4.22 Low: 3.51 Volume: 90285327 Avg Vol: 218654000 Mkt Cap: 9.44B Disclaimer After Hours: 3.54 +0.03 (0.85%) 7 Oct 7:59pm ET Crisis strengthens Manulife's hand in AIG bid Manulife and other insurers are expected to bid for AIG divisions as early as this week, they said. The American insurance giant is under pressure to sell Former AIG Executives Get Harsh Criticism ...



http://www.youtube.com/watch?v=jK4_rDGEXZs&hl=en

Buying Silver As a Hedge Against Inflation

Why Would I buy Silver?

With money printing going on like never before in US history, and the annual deficits out of control, it is only a matter of time before we experience hyperinflation in America. The laws of economic cause and effect will not spare any country who ignores them. Soon China will further reduce its purchases of US debt and the budget crises of the many American state governments will hit critical mass. When this bubble bursts, the dollar will become worth less and less very quickly. Just consult history.

If our wealth is measured in paper dollars, which are being devalued by printing presses churning out more and more of them, then we will lose our wealth. The alternatives are stocks, real estate and precious metals.

Given the uncertainty in Congress over new tax hikes and the continued worsening of the economy, it will be very difficult to know which stocks to choose.

Real estate is always a good way to preserve wealth, but the prices are dropping like a rock and knowing when the bottom hits is anyone's guess. Not to mention that real estate taxes are rising, and will have to rise a lot more to fund local governments which are being driven to financial collapse. Finally, income generating real estate will not be as attractive soon, as rents will not be able to rise fast enough to cover rising real estate taxes and the dropping dollar.

That leaves us with precious metals. Great advice, learning lessons from history and with plenty of facts to back it up, comes from Mike Maloney, author of "Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future." He and Robert Kiyosaki believe firmly that the only winning strategy will be to invest in Gold and Silver as the bubble inflates and, when it is looking like that bubble is nice and ripe for bursting, bail out and buy real estate. The reason: real estate will bottom out as precious metals top out

Why Would I buy Silver Instead of Gold?

That is an important personal decision, but the rationale is very rational! As of this writing, an ounce of gold is over $1150, which is not too affordable for the average American. However, silver is under $19, which means that anyone can afford to buy silver. More reasons:

Unlike Gold, silver is used up in industrial applications and the supply is less than it has ever been.
Silver is at a historical low versus gold. The ratio has been about 16:1, meaning that it has taken 16 ounces of silver to purchase 1 ounce of gold throughout history. The ratio is now over 60:1. While everyone does not agree that the ratio should be 16:1 these days, due to a lot of different factors that have not existed in the past, just about every expert agrees that silver has a lot more of an upside potential than gold. However, these economists are unanimous that both metals are poised for great gains in the near future.

What Do I Need to Know to Buy Silver?

First off, silver (as well as gold) is sold by the Troy ounce. This is a bit different than a normal ounce, as there are only 12 Troy ounces to a pound instead of 16.

Second, silver can be purchased in basically two forms: physical silver, which is in either coins or bars, and "paper" silver, which is in the form of mutual funds or ETFs. (Some also regard stocks in silver mining companies as a legitimate investment, but a couple dishonest executives in any company can ruin everything: think Enron. Stocks in an individual company are very risky). Paper silver is as good as your faith in the Wall Street bankers that issue it. Enough said. Physical silver can be stored for you by a company in their vault (which means you have to trust them...) or you can take delivery and hold the silver yourself. This is by far the best option.

Third, silver is priced by the market. Today it may be $18.20 per ounce and tomorrow it could be $75 higher or lower. For that reason, you buy it at whatever the "Spot" price is when you make the transaction. However, if the Spot price is $18.00 an ounce, you will NOT be paying only $18.00. There is a premium over Spot that accounts for the melting and minting of the silver, as well as the commission of the dealer. Beware (and read to the end of this report), because the premiums you pay can vary a great deal. Don't trust anyone who is going to sell it to you.

When buying silver, you can choose between bars from 1 to 100 ounces, or rounds ("coins" issued by a company that does not have minting authority of a government), or coins. Buying a single ounce coin that is supposedly worth $5000 because it is so rare is a risky prospect: who knows if someone will want to pay that much when you want to sell it. The best bet is to stay with a bar, round or coin whose value is the intrinsic value of the metal itself.

The most easily identifiable and 'coin of choice' is the 1 ounce silver American Eagle. Everyone knows these and you will never have any difficulty selling them. The only downside is that they come at a premium. The premium on Eagles can be as high as $2 per ounce.

Bars and rounds are available from a multitude of different companies. How do you choose which one to buy from? The best way is to consult with a few local coin dealers and ask them. They are the local experts and will be best able to tell you what is commonly accepted without hesitation. APMEX, Silvertowne, Johnson Matthey, Sunshine and Englehard are commonly accepted, but there are many more. Do your own research.

The one thing you MUST do before paying for silver is ensure that there it says.999 Fine (this is investment grade silver) and that it clearly states how many Troy ounces it is.

Where Should I Store My Silver?

Paying 'vault charges' to let some company store your silver for you is not a good idea (remember, you have to trust these bankers...), so obviously you want to store your silver yourself. Many people immediately think of a bank safety deposit box, but others are skittish. If there is an economic meltdown, history shows us that a bank holiday would be declared and you can't retrieve your silver from a bank that is closed. Furthermore, when banks fail, there have been cases where it was not immediately reopened under the ownership of another, FDIC selected bank. In such a case, it may take a long time to get any possessions from a safety deposit box.

Home storage of your silver is not without its problems. First off, you must worry about robbery. If some bad people get ahold of records and find out that you have bought silver, or if you or someone in your family mention it to anyone, you could be paid a visit by some gun wielding thugs. This happens all the time in countries that have experienced economic collapse. A fireproof wall safe will do you no good if a man holds a gun to a loved one's head demanding that you produce the silver... Many insurance companies will NOT cover more than a couple hundred dollars worth of cash or precious metals, whether the loss is from theft or fire. Do your homework.

A lot of people have taken to the old fashioned "bury it in the backyard" approach. This is made easy with a simple length of PVC pipe and two end caps from the Home Depot, which makes a great burial capsule. However, a bad guy with a metal detector will find it in no time if you have loose lips!

Where Should I Buy My Silver?

As of this writing, there is no reporting or record keeping requirements for purchases of precious metals of under $10,000. Even then, it is only cash purchases of over $10,000 that require any record keeping, due to the Patriot Act. For this reason, it is best to keep each transaction under $10,000. For security purposes, some prefer a local dealer (since there is no need for your to give your name and address), and some prefer a national dealer (which means that nobody in your locale knows that you bought silver).

Most local coin dealers are not in the business of dealing with a lot of silver. Think about it: there is a huge risk in maintaining an inventory, as the price fluctuates every single hour. Because of this, most local coin dealers charge a high premium over Spot price.

There are many online dealers, including those with radio advertising campaigns featured on the nationally syndicated talk shows. Shop around. The premium you will pay over spot will vary widely, and will also depend on the quantity you buy. It is important to find out what the shipping charges are, as this can add substantially to your effective per-ounce purchase price.

There is always risk in any investment. While it seems that silver presents the best hedge against the coming Depression, each person should consult their own financial advisor and nothing herein should be construed to be legal or investment advice. It is everyone's responsibility to do their own research into the financial and legal ramifications of investing their own money.

Disability Awareness Night at Sun Devil Stadium danny Blake accustomed 2010 EP Maxwell Schleifer Award

PUBLIC ADDRESS ANNOUNCEMENT ASU -- November 13, 2010 Disability Awareness Night Pre-Game Ceremony Good evening Ladies and gentlemen -- We ask that you focus you attention to mid-field please. Arizona State University, EP Global Communications, Inc. the EP Foundation for Education and the Dollarhide Financial Group / MassMutual welcome you to Disability Awareness Night at Sun Devil Stadium. EP Global Communications, Inc. is the publisher of Exceptional Parent magazine, a two-time Folio and Consumer Health Publishing Association of America Gold Medal award winner. Exceptional Parent magazine is the nation's oldest and most respected monthly peer-reviewed journal dedicated to practical, therapeutic, and inspirational information for families, educators, and healthcare professionals serving the special needs community. We are here to honor people who are part of your community for their extraordinary inspiration and contributions to improving the lives of people with disabilities. We are also honoring the 54.6 million Americans who are classified as having a disability or special health care need. With the support of our National Sponsor Massachusetts Mutual Life Insurance Company (MassMutual) and their unique SpecialCare program, it is a great pleasure to co-host the presentation of the EP Maxwell J. Schleifer Distinguished Service Award to Danny Blake. The Easter Seals Blake Foundation is honored to have nominated Danny Blake for this award. Danny Blake recently celebrated ...



http://www.youtube.com/watch?v=GBaD5w2mkF0&hl=en

Why Aren't More Agents Talking About Life Settlements?

Many agents have never spoken to a senior client about life settlements. Why so little interest in this valuable financial planning tool? For starters, not every agent is allowed to discuss the life settlement option with a client. Insurance company or broker/dealer prohibitions close the door for these agents even though a life settlement may be in the client's best interest. Let's examine some other possible reasons.

Reason #1 - "I am not familiar with the life settlement concept."

Agents need additional training in these transactions to feel comfortable discussing them with senior clients. Continuing education has not been available until recently. At least two life settlement providers have training programs approved in some states. Industry training has been available for some time. It is incumbent upon life settlement brokers and providers to offer training programs. The key is developing relationships and providing a turnkey solution, including compensation.

Reason #2 - "I'm waiting for the issue to come up."

A client may complain about the annual life premium he just received in the mail, but he probably never heard of a life settlement if you haven't brought it up. Traditional mass media outlets don't cover life settlements. Business editors and producers appear to be confused by the concept or have a vague memory of people losing money in viatical (terminal illness) settlements. The effect of this news blackout is that the senior never hears the term "life settlements" and doesn't know to ask the question to the insurance agent.

The sad truth is that many seniors are orphaned policyholders with no servicing agent. Their only contact is with the issuing company, virtually ensuring that there will be no chance of being presented the life settlement alternative. If you are in front of a client who may qualify for a life settlement, simply ask, "Has your life insurance policy been reviewed recently?" That question will be worth its weight in gold.

Reason #3 - "I manage assets. I don't do insurance."

This is a common objection from broker/ dealer financial advisors who don't understand that an insurance policy is an asset to be managed like a mutual fund or stock and bond portfolio. If you are a wealth manager and don't understand your client's life insurance holdings, you may be putting other assets at risk. Not all investments perform as intended. Poorly performing investments are often sold and replaced by other investments. A life insurance contract may also perform poorly. Perhaps, at inception, the policy illustration was shown with a projected rate of interest that is no longer attainable. The scheduled premium may no longer support the illustrated cash values or even the death benefit.

An insurance agent or financial advisor should perform an annual policy review with current ledger illustrations to make sure that policy premiums are adequate to maintain projected cash values and the death benefit. The policy review will also raise the issue of whether the coverage is adequate. Policy management also addresses the issues of replacement, insurability, and possible tax consequences.

Reason #4 - "I prefer to recommend a 1035 exchange for replacement."

This objection tells me that the agent does not understand the value that a life settlement creates or the tax consequences. Nearly half of all life settlement proceeds go into acquiring new policies, according to the Life Insurance Settlement Assn. If new insurance is to be acquired, is a 1035 exchange better than a sale in a life settlement transaction?

There are no current tax consequences to a 1035 exchange. The basis in the old life contract is transferred to the new contract and the old policy is traded in at cash surrender value to acquire the new policy.

In the sale of a life insurance policy, there may be a tax consequence upon sale if the proceeds exceed the cost basis. However, to make the comparison fair, the after-tax proceeds must be compared to the existing policy's cash surrender value. No taxpayer is in the 100% tax bracket. Also, incremental after-tax gains via sale are almost always greater than the cash surrender value. By definition, a life settlement must be greater than cash surrender value. This means that a qualifying senior has more money at their disposal to acquire a new policy. Historically a life settlement runs an average of 200% to 300% greater than cash-surrender values. While every case is different, comparing 1035 exchanges to a possible life settlement is the right way to approach policy replacement.

Reason #5 - "I don't understand how fair market value is created."

As mentioned earlier, there is an enormous spread between a policy's cash surrender value and fair market value. In real estate, the buyer and seller negotiate fair market value. The seller lists at one price, the buyer counters with a lower price, and the selling price is somewhere in the middle.

Contrast that with the competitive bidding process in the secondary market. The highest bidder gets to present a life settlement offer. Wouldn't it be nice to have 10 potential buyers bidding on your house the way they bid on your life insurance policy? A policy's cash value represents the bid of one buyer - the issuing insurance company. Do you think this valuation would be higher or lower than competitive bid?

A health arbitrage also creates the valuation gap. Insurance policies are priced based on the insured's age, sex, and health at the application date and subsequent health changes cannot be anticipated or accounted for. A buyer in the secondary market looks at the insured's current health and how health issues affect life expectancy. There is an inverse relationship between policy valuation and life expectancy.

Reason #6 - "I'm not sure how to market this product."

The market for life settlements is the senior who is generally 70 or older with a health issue that has developed since the policy application date. Institutionally funded life settlement providers buy policies on an insured with a two-year to 12-year life expectancy. Direct marketing to seniors whom you do not know may be ineffective.

A financial seminar can be an opportunity to discuss these transactions to the right audience as long as there are other topics on the table. It is much too narrow a topic to be the focal point. Not every senior owns a life insurance policy, not every policyholder qualifies, and not everyone is interested in disposing of a policy. The life settlement topic makes a good bullet point on a seminar agenda with a brief mention that it is a new idea that could generate cash from a dormant asset.

If senior seminars are not for you, there are other marketing ideas to consider. Approach CPAs, estate attorneys, and trust officers in your network about life settlements, positioning yourself as an expert. Chances are that they have never heard about life settlements or they are only slightly familiar with them. You will add value to their service offerings and will introduce them to a new concept, putting yourself in a favorable referral position.

Mention that corporate-owned policies and trust-owned policies can qualify for potential sale in addition to individually owned policies. This will trigger client prospects in their minds. You could publish an article on life settlements in a local business journal making sure your byline includes contact information. You also may want to market life settlements to those who provide other services to seniors, perhaps those who offer senior healthcare services or those who organize senior activities. Offer a compensation incentive for them to recruit prospects for you.

Finally, connect with the planned giving officer at your alma mater or local university. Universities frequently receive life insurance gifts. Most would prefer getting the cash now to waiting years to collect a benefit. A life settlement gives the university the opportunity to get immediate cash. Perhaps the university could send a letter to alumni who are approaching the age of 70 about making gifts of the proceeds of unneeded or unwanted life insurance policies. The tax deduction for donated assets is the fair market value of the asset. The deduction for the cash donation of a life settled policy would be larger than for the donated policy itself.

Selling a new financial service requires awareness, then familiarity, then expertise, then planning and creativity, commitment, and follow-through. It is not too late to add life settlements to your arsenal of product ideas. Remember, the very first Baby Boomer, who will not turn 70 until 2016, will soon be followed by millions upon millions more.

Investments in Costa Rica - Not Exactly What You Think

Investments in Costa Rica?... isn't that an island?...somewhere in the Caribbean?

My wife and I moved to Costa Rica six years ago from the frigid climate of Minnesota where we had owned a printing business for 15 years. For as long as we could remember we had worked 12 hour days and spent most of our time figuring out how to stay even...getting ahead wasn't even in the cards.

Then 9/11 happened. And for us it was an epiphany. Life was too short to spend the balance of our lives on a treadmill that went nowhere. We accelerated our retirement plans by almost ten years.
And over the next year we sold everything we owned and eventually found ourselves in Costa Rica (which, mind you, we had only visited once previously...and on vacation at that !).

Stupid? In retrospect, sure. To move to a foreign country where we knew no one, didn't know the language and our only exposure was the internet? Of course, it was stupid.

But...we loved it, even in spite of the fact that life here was completely different than the books portrayed or the internet showed. We rented a small home about an hour outside of San Jose in a community which was rural, coffee country and yet still large enough to have a hospital and within 45 minutes of the main airport.

And we purchased land...and we built a house. And luckily, Rhonda had the temperament to deal with the local builders, even though we didn't understand much Spanish. I still remained a type A and the manana attitude drove me crazy.

And much of the real estate and construction business was definitely not in any "how to..." book that we ever found. And we definitely made mistakes. But luckily they didn't hurt us TOO much financially. And we asked a lot of questions and we learned, little by little, how the real estate market functioned in Costa Rica.

And we decided that we wanted to let others know the things that we had to learn the hard way. We started a real estate company whose sole aim was to present properties which reflected prices that locals paid...because there is a two tier real estate market in Costa Rica...one for "gringos" and one for Ticos (locals, as Costa Ricans call themselves).

Because there are very few rules or regulations for real estate here, our "exposure" of the market didn't make us very popular with other real estate people. (remember, Costa Rica is a VERY small country...about the size of West Virginia or Houston). So our website didn't exactly endear us to local agents who were used to charging whatever prices and commissions that they thought the traffic would bear.

And slowly we began to get a reputation...admittedly, some was good, some bad...depending upon who you talked to. And we began to get publicity...unsolicited publicity from magazines like Newsweek and Investors Business Daily. And our business grew. And grew some more.

As our business grew we began to meet more people from Costa Rica...some influential, some not... some quality, some not. And we became exposed to many more types of investments that were totally foreign to us. And we learned who really "controls" the country and which people control investment capital and have the influence to make policy. To illustrate how much of our education was "coincidence" (and I personally do not believe in coincidences... I believe that they happen for a reason) our third attorney was introduced to us purely second hand at a local gathering; "coincidentally" his wife was from Minnesota...Rhonda was then invited to a weekly gathering of "gringas", all of which married Ticos 35-40 years ago and who have now ALL become very influential ; e.g., Minister of Finance; Minister of Agriculture and two other former cabinet members.

Because of our real estate organization (see it here: http://www.cr-home.com) we are able to see daily what people are seeking and watch the ebb and flow of interest. And not only are we able to gauge areas of interest but also types of properties or homes that are attracting the most interest...e.g., we know that beach properties or condominiums at present are receiving very little interest and the high end beach properties sales are very slow. We have our own hypotheses as to why this is occurring but we are dealing with "what is", not what we think "should be"...nor do we look for esoteric explanations to explain the status. We are big believers in the KISS philosophy..." keep it simple, stupid."

Over the past three years we have made a number of investments here...none have shown a loss and others have turned a 100% return within a 60 day period. Some have unrealized profits. We have yet to take a loss. Please understand here that we are not professional investors (if there indeed is such an animal)... we have simply taken advantage of situations that we consider to be extremely low risk. WE ARE NOT SIMPLY "HOPPING ON THE COSTA RICAN REAL ESTATE BANDWAGON"...because if we had done that, we would have already lost a significant amount of money.

Let me explain...
Our website and mission statement is all about value...and it is about education and knowing "the good, bad and ugly" BEFORE buying. Too many people get caught up in the emotion and beauty of Costa Rica and buy on impulse. And these are the people that ultimately run the risk of losing their entire investment. (con men and fraud exist everywhere but are more common here simply because of the lack of comprehensive rules and regulations concerning real estate and construction). That being said...we attract a different type of clientele...one that typically wants to ensure that he gets the most value for his or her money....and definitely not one that is an impulse buyer. We deal primarily with the "baby boomer" who is looking at Costa Rica as a retirement destination AND the buyer who wants to ensure that he or she gets the most value for their investment.
And the above paragraph illustrates the best, most concise reason why our business is almost recession proof and not affected by the "subprime crisis" and will allow us to continue to capitalize of various forms of investment in Costa Rica.

So...now that we have established our background...WHY are we recommending Costa Rica as a basis for specific types of investments?
We are not attempting to "sell" Costa Rica because we expect anyone who is examining Costa Rica as an investment to do their own due diligence. So...
- Costa Rica is home to the longest running democracy in Latin America. Its stability is unquestioned and it is allied closely with the U.S.
- Almost a third of the land mass of Costa Rica is set aside for national parks. Costa Ricans themselves are huge lovers of wildlife, flora and fauna.
- There is virtually no mineral exploration and absolutely no oil drilling in Costa Rica for environmental protection.
- The literacy rate in Costa Rica exceeds that of the States or Canada.
- Medical care is superb and available to everyone...even to those who are unable to pay.
- Costa Rica is more familiar to Americans than nearly any other foreign destination...for vacation. Nearly everyone who has visited Costa Rica wants to return and, in fact, Costa Rica has the highest return rate for vacationers of any other destination in the world.
- While Costa Rica is technically a "second world country", its infrastructure is excellent.
- Costa Rica's economy, while operating at a deficit, is in excellent shape.
- Costa Rica has no standing army, thus expends no funds on a national defense.
- Costa Rica espouses family values and many visitors liken it to the States from the 50s. The pace of living is slower and the Costa Rican people (Ticos) have different values than their counter parts in America and Canada.
- There are literally dozens of microclimates within a two hour drive from anywhere in the country. Where else can you drive for a day and see two oceans, several volcanoes, sandy beaches, mountains, waterfalls, lakes, rain forests, cloud forests, agricultural land, hot springs, wildlife preserves, and much much more...?
- Cost of living estimated at approximately 30% of equivalent lifestyle cost in the States or Canada.
- An estimated 30% of the population speaks or understand some degree of English.
This is only the abbreviated version of the positives of Costa Rica...other countries such as nearby Panama, Nicaragua and Mexico are attempting to woo the "baby boomers" but OUR belief is that the "blue chip" of Latin American investment will almost always win out. Just because land in Nicaragua or Panama maybe 20% cheaper or because the government offers one time incentives to expats....does not necessarily mean that it is worth the risk of your hard earned savings. Weigh the pros and cons. Some say that Costa Rica is overpriced...some say that its time has passed for investment...we say "take a look at the number of people that visit here...and that return...do your homework...then make your decision."

Okay, we have subjectives about Costa Rica and why people visit here and keep returning. Now we need facts.
During the first six months of 2008, more than 125,000 foreigners visited Costa Rica...and this is a 16% increase over last year. And remember, this is in a so called recession which is worldwide. Don't believe that the trend will continue?...try this: ask your friends what their impressions are of Costa Rica or what they have heard ABOUT Costa Rica. I can guarantee that the responses will be overwhelmingly positive. Subjective ? Yes, but still highly convincing and you will not get these types of responses from any other location or destination.

Numbers of weekly airline flights are climbing...ranging from American Airlines with 43, to Continental with 25, Delta with 24 down to Spirit and U.S. Airways each with 7. This does obviously not take into account visitors from other parts of the globe. Currently, the States and Canada account for over half of all visitors and tourists to Costa Rica. Europe accounts for nearly 20% and the rest of the world, the balance. This is another good rationale why our business is expanding instead of collapsing like many of the local pundits have predicted...the slowdown in the States is more than counterbalanced by Canada (which is experiencing a VERY strong economy and a very strong currency) and Europeans... who are also experiencing gains with the rise of the euro vs. the dollar and other currencies. The Costa Rican real estate market is simply not dependent upon one country or group of people to experience strong real estate interest. And please also keep in mind that Costa Rican real estate is a microcosm of Economics 101...the areas of interest for the "boomers" and second home buyers are small and it is easy to see that there are more buyers than sellers (which is really what the markets are all about... remember our KISS theory?)

We have established statistically that more and more visitors are arriving in Costa Rica. Now we need to establish a base for our investment philosophies...and it is primarily centered upon the huge number of "baby boomers" which are just beginning their retirement years. We do not need a huge elaboration as to why "boomers" are examining overseas destinations in increasing numbers...but here are a few of the major reasons:
- Cost of living...it is no surprise that costs of almost everything are climbing daily. The equivalent cost of living in Costa Rica is roughly a third as much.
- Medical care is excellent and only at a fraction of the cost.
- There is a tremendous amount of diversity here and an almost unending list of activities and sightseeing which is available daily...you will definitely never be bored!
- Stable government and environment.
- High literacy rate and people are genuinely friendly.
- Only a short plane ride from the States.
- Infrastructure is good and water is drinkable everywhere in the country.
- The banking system is excellent and safe.
- There is a huge amount of flora and fauna here which is literally unequalled anywhere in the world...and over 25% of the country's land is set aside for national parks.
- Land and construction is still extremely affordable by comparison.
- Crime is still relatively low, especially when compared to its counterparts and "competition".
Okay, now that we have established that Costa Rica is a viable, growing and stable marketplace AND that the "boomers" have the potential to have a major influence on the marketplace in Costa Rica...let's pinpoint specifics which will allow us to make significant investment gains:
Most "gringos" say that they would prefer beach living. The reality is that over 50% of all people who buy on the beach sell within five years. We have found over the past five years that most gringos prefer acreage with the following features:
- Views...either the ocean from a distance or the Central Valley
- Access to good medical and professional services
- Not "too remote"
- Good shopping and dining accessibility within a reasonable drive.
- Internet availability...good infrastructure
- More moderate temperatures
- More rural than urban but still amenities available closeby
- Within a "reasonable" drive to an international airport.
- Private, but not too private; i.e., neighbors nearby but not TOO close.
- At least half to an acre of land...river, waterfall or lake if possible.
- Fruit trees and other vegetation a major plus.

With the above in mind, Rhonda and I settled in Grecia which was approximately half an hour from the country's major airport, 45 minutes from a first class hospital (yet only 10 minutes to a municipal hospital, in Grecia). We chose to be in the mountains overlooking the town and the Central Valley. Major shopping was 45 minutes away as was "better dining" and (for me) bookstores. Notice how we fit the above "profile"? BTW, we also had a river on our property. Why do we bring this up here?...because our "property preferences" were (and are) the same as 80% of most gringos that move to Costa Rica to retire (full or part time.)

Next factor: there are very very few rules and regulations when it comes to real estate and construction in this country. There are ways to protect yourself legally but there are no sure methods of ascertaining what is a "fair and honest" price. There is no MLS system and there is not a system of comparables. For the most part, real estate is bought and sold the way it has been for decades...primarily word of mouth. This is specifically why people flock to the real estate industry...because of "net selling" or the simple fact that it is almost impossible to know what is a fair price. (net selling refers to "marking up" a property over and above what the seller wishes to "net...very commonplace here.)

Next: There are very few American style houses for sale here... and Tico houses simply are not satisfactory for 98% of "gringos" that move here (lower ceilings, smaller rooms, not enough land, no 220V power, no views, etc). This obviously brings up the logical conclusion...if there is a market, and it appears that it is highly skewed in favor of the sellers...is there an opportunity here to capitalize on that imbalance? (for those of you who are thinking ahead here...remodeling is difficult because almost all construction here is block and steel and all wiring and plumbing is encased in concrete...remodeling costs actually exceed "STARTING FROM SCRATCH".)

Because there is a two tier market here...one for locals and one for "everyone else" it is important to ensure that pricing received is comparable to others of comparison (as much as possible in a country where "comparables" are simply conversation over coffee.) A "gringo" certainly can look for his or her own property but it is almost a guarantee that prices will be at least 50% higher as locals share the common perception that "gringos" have money trees "back home" and that we will pay almost "any asking price" because we don't know the culture or the area.

And remember we know the markets...who is buying, what they are seeking and what they will pay. And then obviously the determination has to be made if it is possible to make a profit.

The last item to take into account is the simple fact of Costa Rican land itself...without the "gringo factor". Ticos (Costa Ricans) are accustomed to an inflation rate of around 12% annually and many compensate by buying additional land and simply holding hard assets. And when selling, Ticos know that if they do not get their price today...they will in six months or in a year. The trick then becomes to truly know the markets and to be able to take advantage of buyers that MUST sell and that need money.

On to "brass tacks" and specifics...
1. The void of, and lack of, American style houses in many areas is crying to be filled. The following is a quick "down and dirty" summary of approximate profits to be made from such an investment: Land cost: (one acre...view property in Grecia or environs) $50,000; American style house of 3 BR, 1500-1600 sq. meters: $75,000...misc costs including architect, utilities and landscaping: $10,000. Selling price: $190-195,000, possibly more. Estimated gross ROI (before payout to limited partner or construction supervisor)...50%.

2. Smaller developments can be even more profitable...we prefer to stick with a much smaller number of homes as it is more manageable and you fly under the municipality's radar...nothing illegal, just avoiding the possibility of locals swarming around with their hands out. Typically, we raise money in smaller increments (shares) as the amounts normally exceed $250,000.

Profit estimates here are extraordinary.
3. Oftentimes, at least bimonthly, we see a property at an extraordinary price...one that we know is substantially below market value. Sometimes these properties can be resold almost immediately...other times they involve buying a larger piece and reselling smaller units of land. A good example is a block of four quarter acre beach front parcels which are titled and located only 1 ½ hours from San Jose on the Central Pacific coast. The owner is in the States and is admittedly desperate. The units can be picked up as a whole and resold for at least a 50% profit (our opinion). They are RARE and gorgeous.

4. Recently, we were contacted by the owner of a small house in Grecia. We had previously listed it at a decent price...but no takers. It has a gorgeous view and the house needs probably $5000 worthy of work. In our opinion, the owner is now willing to sell for close to land value only. Not a huge winner, but percentage wise, probably a 50% profit is available. Estimated ROI to the investor...50%+

5. Occasionally we are shown properties which have a "glitch" in their titles...not major problems but simple filings to correct them. "informacion processoria" properties are normally those which have passed down from family member to family member over the years without doing proper registration or filings. It is a simple matter for a competent attorney to correct the oversight (and, in many cases, it was simply not done for lack of funds). These properties can oftentimes be had at substantial discounts. A good example is a property currently being offered of nearly two acres just on the outskirts of San Jose...a suburb called Aserri. The property HAD to be sold (family financial emergency)...asking price was actually less than 20% of what comparable properties were currently selling for ADJACENT to this property. Estimated "fix" time is six months...properties like this do not often surface and, most of the time they are "no brainers".

Now, we are the first to admit that 99.9% of people that read about these investments are not able to do them themselves. This is why we have typically set up "arrangements" or agreements to handle the everyday details and carry the project from start to finish. Obviously, investments such as the Aserri property, or others that are shorter term investments that can be resold quickly, do not need "special handling".

Hopefully, this investment overview has sparked your interest. We have met nearly all of our investors...some before the physical and actual investment, other afterward. We have an annual pigroast in January and typically nearly all of our investors along with friends and neighbors from Costa Rica get together for fun and an overview of each investment status. In the past it has been a huge hit...plus of course, it is a great excuse to come to Costa Rica.

Union Finance Budget for Financial Year 2007-2008, Government of India... (India is Shining)

Union Finance Minister (Govt. of India) P Chidambaram presented the Union Budget for 2007-08 in Parliament on Wednesday, 28th Feb. 2007.

The Following are the Highlights:

While Chidambaram kept income tax limit unchanged, he increased the threshold limit by Rs 10,000 giving every assessee a relief of Rs 1,000.

Deduction in respect of medical insurance under Section 80 (D) increased to Rs 15,000 and Rs 20,000 for senior citizens.

Exemption limit for women was increased to Rs 145,000 and for senior citizens to Rs 195,000.

Dividend distribution tax raised from 12.5 to 15 per cent.

ESOPs to be brought under FBT.

Expenditure on samples and free distribution items to be exempted from fringe benefit tax.

Additional revenue from direct taxes to yield Rs 3000 crore and indirect taxes revenue neutral.

Tax exemption on aviation turbine fuel sold to turbo prop aircraft extended to all small aircraft less than 40,000 kg.

Withdrawals by central and state governments exempted from Banking Cash Transaction Tax. The limit for individuals and HUF raised from Rs 25,000 to Rs 50,000.

Two lakh people to benefit out of service tax exemption. Govt to lose Rs 800 crore as a result.

Service tax on Residents Welfare Associations whose members contribute more than Rs 3,000.

Surcharge on Corporate income tax on companies below Rs one crore removed.

Tax free bonds to be issued by state-owned urban local bodies.

Five year tax holiday for two, three, four star hotels and convention centres with a seating capacity of 3,000 in NCT of Delhi, Gurgaon, Ghaziabad, Faridabad and Gautam

Minimum Alternate Tax being extended.

Benefits of investment in venture capital funds confined to IT, bio-technology, nano-technology, seed research, dairy among some others.

Excise duty on cement reduced from Rs.400 per tonne to Rs.350 per tonne for cement bags sold at Rs.190 per bag at retail market. Those sold above Rs.190 will attract excise duty of Rs.600 per tonne.

Corporate tax: No surcharge for firms with a taxable income of Rs 1 crore (Rs 10 million) or less.

E-governance allocation to be increased from Rs.395 to Rs.719 crore.

Indian investors to be allowed investment in overseas capital markets through mutual funds. Mutual funds to set up Infrastructure Fund schemes.

Any requirement for security of the nation to be provided.

Backward Regions Grant Fund to be raised to Rs 5800 crore.

A high-powered committee report aimed at making Mumbai a world class financial centre submitted.

Public suggestions will be invited.

Rs 50 crore provided to begin work on vocational education mission for which Task Force in Planning Commission is chalking out a strategy.

1,396 Indian Technical Institutes to be upgraded to achieve technical excellence.

An autonomous Debt Management Office in government to be set up.

Government to create one lakh jobs for physically challenged. Government will reimburse the EPF contributions of employers in the case of physically challenged people taken on rolls of the company and included in the PF scheme. A fund of Rs 150 crore to be started which will go up to Rs 450 crore.

An Expert Committee to be set up to study the impact of climate change in India.

Rs 150 crore to be given to Ministry of Youth and Sports for Commonwealth Games and Rs 350 crore to the Delhi Government for the purpose. Rs 50 crore to be provided for the Commonwealth Youth Games in Pune.

Rs 100 crore for recognising excellence in the field of agricultural research.

VAT revenues increased by 24.3 per cent in the first nine months of 2006-07.

A national level goods and services tax to be introduced from next fiscal.

Fiscal deficit to be 3.7 per cent in the current year and revenue deficit two per cent.

Fiscal management enabled States consolidate debt to the tune of Rs.1,10,268 crore and 20 states availed of debt waiver to the tune of Rs.8575 crores. The share of States from the revenue expected to touch Rs.1,42,450 crore during 2007-08 as against Rs.1,20,377 crore during 2006-07.

Total expenditure estimated at Rs 6,81,521 crore.

Increase in gross tax revenue by 19.9 per cent, 20 per cent and 27.8 per cent in first three years of UPA government. Intend to keep tax rates moderate.

Peak customs duty rate on non-agricultural items reduced from 12.5 to ten per cent.

All coking coal fully exempted from duty.

Duties on seconds and defective reduced from 20 to ten per cent.

Customs duty on polyster to be reduced from ten per cent to 7.5 per cent.

Fiscal deficit for 2007-08 pegged at 3.3 per cent of GDP at Rs.1,50,948 crore. Revenue deficit at Rs.72,478 crore which will be 1.5 per cent.

Total expenditure during 2006-07 estimated at Rs.6,80,521 crore including Rs.40,000 crore for SBI shares.

Duty on pet food reduced from 30 per cent to 20 per cent.

Duty on sunflower oil to be reduced by 15 per cent.

Duty reduced on watch dials and movements and umbrella parts from 12.5 to five per cent.

Import duty of 15 specified machinery to be reduced from 7.5 per cent to five per cent.

Economy grows 8.6 per cent in third quarter of this fiscal compared to 9.3 per cent in the year-ago period

Three per cent import duty to be levied on private importers of aircraft including helicopters.

No change in general CENVAT rate.

Ad valorem duty on petrol and diesel to be brought down from eight to six per cent.

Export duty on iron ore and concentrate at the rate of Rs.300 per tonne. Export duty on Cromium proposed at Rs 2000 tonne.

Small-scale industries excise duty exemption raised from Rs one crore to Rs 1.5 crore.

Manufacturing sector grows at 10.7 per cent, agriculture at 1.5 per cent during October-December 2006-07.

Excise duty for plywood reduced from 16 per cent to eight per cent.

Food mixes to be fully exempted from excise duty.

Excise duty for plywood reduced from 16 per cent to eight per cent.

Bio-diesel to be fully exempted from excise duty.

Water purification devices, small and big, fully exempted from excise. Specific rates of excise duty on cigarettes increased.

Excise duty on Pan Masala without tobacco as mouth freshners reduced from 66 per cent to 45 per cent.

PAN to be made single identity card for all securities/stocks/MFs related transactions.

Insurance companies to launch a senior citizens scheme in 2007-08.

Defence budget increased to Rs 96,000 crore

Tourism infrastructure to get an allocation of Rs.520 crore as against Rs.423 crore last year.

The ceiling of loans for weaker sections under deferential rate of interest scheme will be raised from Rs 6500 to Rs 15,000 and in housing loan from Rs 5000 to Rs 20,000.

Regulations would be put in place for mortgage guarantee company for housing loans.

Regional Rural Banks, which are willing to take up greater responsibilities, to undertake aggressive branch expansion programme. One RRB branch for each of 80 districts so far uncovered. RRBs to accept NRE and FCNR deposits.

FDI inflows between April and January this fiscal touched $12.5 bn while portfolio investment reached $6.8 billion

Technology Upgration Fund in textiles to continue during the 11th Plan. Rs 911 crore to be provided for this.

Allocation for National Highway Development programme to be stepped up from Rs 9,955 crore to Rs 12,600 crore.

Work on Golden Quadrilateral road project nearly complete. Considerable progress made on North-South, East-West corridor and likely to be completed by 2009.

Northeastern region will get Rs 405 crore for highway development. Road-cum-rail project over Brahmaputra in Bogibil, Assam.

Health insurance cover for weavers to be enlarged to ancillary industries. Allocation increased from Rs 241 crore to Rs 321 crore.

A scheme for modernisation and technological upgradation of choir industry for which Rs 23.55 crore has been earmarked.

Manufacturing growth rate estimated at 11.3 per cent.

9.2 per cent GDP growth rate estimated in 2006-07.

Average growth for last three years is 8.6 per cent.

Saving rate of 32.4 per cent, investment rate of 33.8 per cent will continue.

A number of proposals to perk up agriculture to be announced.

Average inflation in FY'07 to be 5.2-5.4 per cent; govt confident of managing inflation

Bank credit rate grew by 29 per cent during first ten months of 2006-07

Inflation during 2006-07 estimated at between 5.2 and 5.4 per cent against 4.4 per cent during the previous year.

Abhijit Sen report on forward trading to be submitted in two months' time.

Additional irrigation potential of 24 lakh hectares to be implemented, including nine lakh hectares under Accelerated Irrigation Benefit Programme.

Economy in a stronger position than ever before.

15,054 villages have been covered under rural telephony and efforts to be made to complete the target of covering 20,000 villages by 2006-07.

Allocation on Healthcare to increase by 21.9 per cent.

Allocattion for education to be enhanced by 34.2 per cent.

Two lakh more teachers to be employed and five lakh more classrooms to be constructed.

Secondary education allowance to be increased from Rs.1,837 crore to Rs.3,794 crore.

Government committed to fiscal reforms.

Foreign exchange reserves stand at 180 billion dollars.

Allocation under Rajiv Gandhi Drinking Mission stepped up from Rs 4680 crore to Rs 5850 crore.

Government concerned over inflation and would take all steps for moderating it.

Already a number of steps on fiscal, monetary and supply management side have been taken.

Annual target of 15 lakh houses under Bharat Nirmal Programme to be exceeded.

Allocation for National Rural Health Mission stepped up from Rs 8207 crore to Rs 9947 crore.

Gross budgetary support in 2007-08 raised to Rs 2,05,100 crore from 1,72,728 crore in 2006-07. Of this, budgetary support to the Central plan will go up to 1,54,939 crore against 1,72,728 crore.

School dropout rates high. To prevent dropout, a National Means-cum-Merit scholarship to be implemented, with an allocation of Rs 6,000 per child.

Rs 1290 crore to be provided for elimination of polio. Intensive coverage will be undertaken in 20 districts in UP and 10 districts in Bihar. This will be integrated into NRHM.

National AIDS Control Programme to achieve zero level disease.

Measures for significant improvement of health care in rural area.

Allocation for ICDS programme to be increased from Rs 4087 crore to Rs 4761 crore.

30 more districts under NREGA. Additional allocation of Rs.12,000 crore for it.

Rs 800 crore for Sampoorna Gram Rozgar Yojana in districts not covered by NREGA. Swarna Jayanti Swarozgar Yojana allocation increased from Rs 250 crore to Rs 344 crore.

Computerisation of PDS and integrated computerization programme for FCI.

Allocation for schemes only for SCs and STs to be increased to Rs 3271 crore.

Rs 63 crore for share capital for National Minorities Development Finance Corporation following Sachar Committee recommendations.

Allocation for SC/ST scholarships enhanced from Rs.440 crore to Rs.611 crore.

Scholarships programme for minorities students to be of the order of Rs 72 crore for pre-metric, Rs 48 crore for graduate and postgraduate.

Total Budget for the Northeastern region raised from Rs 12,041 crore to Rs 14,365 crore.

New Industrial Policy for the northeastern region to be in place before March 31.

Women's development allocation will be Rs.22,282 crore.

Rs 7,000 crore allocation for better tax administration to be used for social schemes.

Rs 2,25,000 crore farm credit proposed in the new budget. A target of additional 50 lakh farmers to be brought under farm credit.

Farmers' credit likely to reach Rs.1,90,000 crore as against the targeted Rs.1,75,000 crore during 2006-07.

Special Purpose Tea Fund to rejuvenate tea production.

Rs 100 crore allocated for National Rainfed Area Authority.

One hundred per cent subsidy for small farmers and 50 per cent for other farmers for water recharging scheme.

World Bank signed agreement for revival of 5,763 waterbodies in Tamil Nadu. Loan component Rs 2,182 crore. To have a command area of four lakh hectares. Similar agreement with Andhra Pradesh in March for recharge of 2,000 bodies. Command area 2.5 lakh hectares.

Bonds worth Rs 5,000 crore to augment NABARD to be issued.

Death and disability cover for rural landless families to be introduced, known as 'Aam Aadmi Bima Yojana'.

70 lakh households to be covered under a social welfare scheme with LIC and with support from state governments.

50 per cent of the premium at Rs.200 per household to be given by the Centre. Rs.1,000 crore fund to be maintained by LIC for the purpose.

Central public sector enterprises will be given Rs 16,261 crore as equity support and loans of over Rs 2600 crore.

Sources: Times of India; NDTV; StarNews

Another Article About Retirement Plans

As we get older we seem to lose a lot of things. Our vision goes, our hearing goes, and our taste buds go, but that doesn't mean our money has to go too. When you are deciding on retirement plans you should shop around. One of the best retirement plans I found was while I was researching on the internet and I came across Met Life. Their retirement plans are super flexible and affordable. Met life asks you where you want to live in the future, how you want to live, and basically gives you information on how to control your own retirement plans. Also, they help you by giving you tips on what future health care costs are currently and what they will be later down the road, so that your retirement plans can be even better and more successful.

As far as retirement funds are concerned, Met Life has great advice for that as well. Met life has a great 4 % rule for people. Basically the 4 % rule states that an individual around the age of 65 should not spend more than 4 % of their monthly income. If they do happen to spend more, then their retirement funds will be less and less is harder to work with. Also, another tip to increase retirement funds is a deferred annuity. Basically a deferred annuity is where an individual can receive tax benefits from making with drawls on the account because only the earnings are taxed. Plus beneficiaries of the individual will receive payments of the investment earnings along with the principal, after the individual has passed on.

Another way to secure your financial situation when you are retired is to make sure you have a good 401k plan. A 401k plan is a program offered to you through an employer to assist in financial security. Every 401k plan is different; it just depends on who your employer is and what they decide to offer you. Depending on the company, every dollar you put into your 401k plan, they will pay a percent of that dollar and put it in to your account. Now if you land a really great job and the company is really good to you, they will even match you half way and for every dollar you put in, they too will put in a dollar. So they are basically paying half of your 401k.

Also, not to scare people too much, but just enough to inform the public of the problem, but there are scammers out there. The scammers are typically known to take advantage of the elderly, the retired and even business owners of small companies. So if you fall into any of these brackets, just be extra careful when decided on packages and plans for your future. If you need any help with decisions, or if you have any concerns or questions pertaining to life insurance, or retirement funds, Met Life is a great company to go through. They have really great reviews and again, unbeatable prices.

SHAME ON YOU: Rep. Speier To You Mr. Sullivan,. Chairman Waxman's Eric R. Dinallo, Superintendent, NY State Insurance Dept, Lynn E. Turner, arch accountant, Securities Exchange Commission Robert B. Willumstad, CEO, Martin J. Sullivan, CEO, AIG

Obaid Karki An Outcast Underdog Libertarian Diogenesist Kabbalist Spinoziste Qutbist Pantheon Hexalingual Automath Former UAE Under Secretary Independent Street-Knowledge Urban Talking-head. Unaffiliated to a State, an Organized Religion Group, a Sect or a Kin and an Anti Tribal Gentile. Every phrase is an earnest verdict. Thats my bio. If you dont agree with me thats an honor. It is immoral to appease to please. My word hurts big time because it is quality of a moment of truth US Conspiracism is a Grassroot Religion alas belief masterminded by the Establishment to Worthy the Worthless. This in-thing is sold as Partisanship to the Unemployables for free. Its the Disneyfication of the Mass to glorify a Legacy of Ghosts as Rothchild, Bilderberg, English royalty etc. Neither Mainstream Media & nor Hollywood or the Publisher's Clan would be outsourced to such task simply because they are assigned to edutain the Untalentable Aristocrat Urban Parasites. AIG American International Group, Inc. (NYSE) Google Finance Yahoo Finance MSN Money AOL Finance CNN Money Reuters 3.51 0.36 ( 9.30%) 7 Oct 4:00pm ET Open: 4.22 High: 4.22 Low: 3.51 Volume: 90285327 Avg Vol: 218654000 Mkt Cap: 9.44B Disclaimer After Hours: 3.54 +0.03 (0.85%) 7 Oct 7:59pm ET Crisis strengthens Manulife's hand in AIG bid Manulife and other insurers are expected to bid for AIG divisions as early as this week, they said. The American insurance giant is under pressure to sell Former AIG Executives Get Harsh Criticism ...



http://www.youtube.com/watch?v=jK4_rDGEXZs&hl=en

Hurricane Katrina: No Match for Hurricane C

Watching the news coverage of Hurricane Katrina and the tragedy that befell those caught in her path, particularly in New Orleans, I began to wonder if there isn't a more sinister force of nature (?) to worry about than a mere Category 4 Hurricane.

The solemn-faced anchors and correspondents -- along with the politicians, policy-makers, and heads of various Federal bureaucracies to whom the network bosses grant airtime to lament the "natural" disaster and offer their often sketchy plans for remediation -- give way to ads for products and services appealing to all, but affordable only to the likes of those whose SUVs lined the Interstates after the evacuation was ordered in New Orleans preceding the storm. After CNN's hip "Hurricane Katrina" music signaled the transition from a particularly poignant report from the scene of mass hysteria and human misery along the Gulf Coast to commercial break, the viewer was greeted with an advert for the latest gas-guzzling, TV and satellite radio-equipped, power everything, leather seated, GPS enabled monstrosity, which could be had for twenty-something thousand dollars, after the dubious "employee discounts" and "cash back rebates" were applied. Watching the wundercar navigate through the most unforgivable of conditions -- including a deluged city street -- without incident or harm to its invisible driver and passengers, one might think to one's self, "Gee, if I were in New Orleans right now, I'd be able to get to higher ground if I had one of those," or, more likely, "Golly, what would the guys (or girls) say when I rolled up to the club (or golf course, race track, social dinner, or backyard get-together -- pick your poison) in that?"

By the time the would-be consumer processes that thought, they're immediately barraged with ads for "low-interest" home equity loans and mortgages, "high return" mutual funds and other Wall Street jibber-jabber, "family-friendly" cellular phone plans, and personalized credit cards that offer rewards for foolish spending (i.e., see above). The faces greeting the potential consumer are largely white and "comforting," males dominate the power positions (can one recall a commercial, featuring a man and woman in the same vehicle, where the "fairer sex" prevails in its operation?), and any people of color who are included are often portrayed without any ethnic personality traits, for fear that they might be considered edgy or threatening by the typical suburbanite, and, thus, damaging to the brand image that is so meticulously constructed and protected.

After some form of self-serving praise and promotion of the latest and greatest of themed news programming, the viewer is returned to the solemn-faced anchor, along with his or her corresponding cronies, reporting on the devastation -- flood, wind damage, fire, lawlessness -- wrought by the Hurricane. Crying mothers clutching hapless children punctuate their coverage of the aftermath, presented before a backdrop cluttered with wind-scarred hotels, newly amphibious vehicles (so much for On Star), and copious amounts of sewage- and toxin-laden floodwater. The reporters offer words of encouragement to those who were left behind by those with the means to get them out, as if they, the elite of the business, are in the same predicament. Are those words really meant to ease the suffering of Joe and Jane Hurricane Victim? Or, are they meant as metaphorical appeasement to the collective guilty conscience, subliminal as it may be, borne by an America whose default in compassion for the collective good has become so painfully evident in the delay of life-saving relief to those so desperately in need?

During the coverage of the storm (most of which, to be fair, occurred before the levees holding back the Mississippi River and Lake Pontchartrain faltered), there were more Americans tuned in to the MTV Video Music Awards than the combined news network coverage. The next morning, as New Orleans' children were dying en masse, America's well-to-do housewives and husbands took theirs to shop for school clothing in clean, white malls, bantering about the effects that the storm would have on the price of the gasoline needed to shuttle their family to their Labor Day vacation destination. Men and women in the office huddled around the water cooler and discussed preseason NFL or bragged about their standard of living. And people in economic situations similar to those who remained in New Orleans, had no idea what was going; one of my social work clients, a twenty five year old mother of four living in public housing, asked what I meant when I stated that anywhere was better than New Orleans on that particular morning.

The ignorance extended to the upper echelons of the Federal government. President Bush remained on vacation at his ranch until the news became so grim as to prompt an uprising if he hadn't returned to play leader; it seemed as if Karl Rove must have been on the porch, twisting his arm, like a mother would an insolent child's, waving the polling data, indicating the sheer unpopularity of his decision to stay in Texas while so many were trapped in New Orleans, in the air to punctuate his point. He attended a publicity stunt for his ridiculous Medicare policy, at which point he commented on the tragedy that had befallen his countrymen and women. Then, he was photographed receiving and strumming a guitar given to him by a country music artist, the look of boyish abandon evident upon his face. The Secretary of State was seen at a NYC production of "Spamalot" guffawing along with the others in attendance, while bodies were washing up on the beach in Biloxi, MS. She then went on a shopping spree and bought $7000 shoes. Let's hope they were galoshes, because this administration will have some sewage of their own to wade through once this catastrophe is properly addressed.

Even given the unprecedented coverage dedicated to the aftermath of Hurricane Katrina, many Americans approached the subject in as blasé a manner as imaginable...that is, until the looting was reported. While only sometimes drawing a distinction between scavenging for food and depicting the looters as pure, unadulterated criminals, the coverage of the looting was given as much play as the "important stuff," and call-in viewers and pundits were quick to rebuke and demand the heads of those involved. Conservative columnist Peggy Noonan was not the only talking head to suggest that looters should be shot on sight, when expressing her haughty displeasure at their "tragic piggism." So-called objective (ahem, fair and balanced) news personnel described the looters (or, if they were light-skinned, "scavengers") in less than objective terms. Within the context of one of the most tragic events that many of us will ever witness (hopefully), leaders such as Mississippi Governor Haley Barbour advocated "ruthless" treatment for those willing to break the law, without making the aforementioned distinction. Even the most non-judgmental among us cannot deny feeling a slight tinge of rage toward those who dared to defy laws protecting personal property in the midst of such a severe crisis. There were even calls, such as the one received on the Glenn Beck Show from a man in South Carolina, to boycott the Red Cross relief effort because, "the people who are looting are all black people," despite the fact that seventy percent of New Orleans is African American.

To an extent, that rage is not misguided, in terms of basic human behavior. To another extent (and while violence should never be condoned; the reports of rampant brawling, rape, and murder are truly as horrific as can be imagined) the rage would be better directed at a socioeconomic system that promotes material over true substance, and pits the rich and powerful against those who coincidentally lie in the wake of their transactions. Those same televisions that the looters were stuffing into industrial sized garbage bags and hauling away might have adorned the walls and shelves of their pre-flood homes, rented at a high premium from seedy establishments whose coffers are fueled by the "need to have it" mentality generated by our materialistic society. The shoes and jewelry being purloined by the armful represent niceties that, while not empirically necessary, are taught to be more reflective of a person than, well, personality and personability. Their deeds were reflective of a power structure that they, in the most dire of circumstances, were seizing as their own, if only for a few moments.

New Orleans is a cultural Mecca, a jewel of the Gulf Coast. Even folks that have never ventured to its allegedly-moss-covered streets, according to the 'other' Ms. Rice, Anne, description of the town, hold it in a certain state of reverence. However, with any great tourist destination, there comes the inevitable human tragedy of low-wage jobs, in the service of the rich and enabled. Yet the compassion and reverence that many feel toward the city's institutions and attractions (and local heroes) never seems to translate into support for those who are the backbone of the system. As Ms. Rice wrote in a recent editorial:

But to my country I want to say this: During this crisis you failed us. You looked down on us; you dismissed our victims; you dismissed us. You want our Jazz Fest, you want our Mardi Gras, you want our cooking and our music. Then when you saw us in real trouble, when you saw a tiny minority preying on the weak among us, you called us "Sin City," and turned your backs.

Truth is, the Hurricane hit most of these people generations ago, and has only intensified over the years. Hurricane C -- Capitalism -- along with the 'hypercompetitivism' and 'hyperconsumerism' that evolve has fueled the greed that has become painfully evident during this crisis. Many editorialists have noted Thomas Hobbes' "state of nature" argument as an explanation; "Hobbesian" this and "Hobbesian" that, and, "this is how we should all expect people to act in the vacuum created by a lack of responsible governance." However, Hobbes proved himself subservient to the system, making a case for economics and against the inherent good of human nature. To be sure, Hobbes' Leviathan was written following the extremely depressing English Civil War, but its tone eerily reflects the current prevailing US emotion with regard to world events: shrill paranoia and vapid uncertainty. Such wayward historians often forget to note what Jean-Jacques Rousseau wrote about the "state of nature" (pre-Social Contract) being corrupted by the marketplace and social hierarchies; the "state of nature" does not exist for we have, almost genealogically allowed profiteering and ruthless class division to obliterate it. Should there be some discussion of changing our underlying beliefs in the golden cow that is our marketplace? Or are we too comfortable in our Fortress America, the richest nation in the world? Do we not want to lend credence to the thought that our economic system has become our interpersonal system? Would we rather banter on about race and the criminal instinct than pursue a meaningful discussion about the effects of too much wealth? Time will tell.

The horrifying truth is that hypercapitalism had its filthy paws in the disaster, as much as Katrina, with her 145 mph winds and incredible storm surge. Geologists and public emergency preparedness workers had been tolling the impending disaster bell for more than 40 years, quoting astronomical human devastation due to structural integrity issues of the man-made defense system badly in need of address. However, instead of fully funding the projects focused on prevention (which were already in place), the Bush administration grabbed the purse strings, commissioning Federal dollars for its effort to appease its friends in the oil business (or, as the effort is more commonly described, to fight the "war on terror"). Haley Barbour, former RNC chairman, was instrumental in convincing the easily-led Bush administration to reverse flank and boycott the Kyoto Accords, due to the impact they might have on the pocketbooks of oil conglomerate CEOs.

And what of the relief effort? While so many Americans are pledging their homes and financial resources to the victims of the flooding (the humanitarian response on behalf of groups such as the Red Cross is unprecedented, one of the only bright spots in this carnival of deplorability), an insurance economist is quoted, in an article by Jennifer Bayot in the New York Times, as saying that Americans should not expect "generosity" from insurance underwriters in the aftermath of this tragedy. In an already-famous gaffe, Dennis Hastert, the speaker of the House, publicly posited that rebuilding New Orleans would not be economically beneficial, and is, therefore, a silly idea.

David Brooks recently authored an Editorial for the Times in which he argues that political change is bound to arrive in the aftermath of this tragedy. He sees America headed down any number of roads, including a progressive rebirth, a "hard-headed law and order" mentality, or a "McCainist patriotism." However, more than political change, America needs to remedy the sickening culture of "stuff" before it can dream of recovering from the loss of life (and property) caused by (short term) Katrina and (long term) Hurricane C.

Social scientists would be remiss to separate the plight of the hurricane survivors from that of so many low-income families and individuals around the country. To be sure, those who suffered through the worst that Mother Nature had to dish out in recent days and weeks are at a substantially more imminent risk of physical and emotional harm. However, for the over thirty percent (according to the most recently released figures which, incidentally, were released in conjunction with Katrina's landfall) of Americans living below the ridiculously understated poverty line, complete calamity and devastation is only a few raindrops (or gunshots) away, as has been shown with New Orleans, Biloxi, and, to a smaller extent, Mobile. Maybe this tragedy will serve as the impetus for genuine progress in the social justice movement. Then again, haven't we always been told not to mess with nature?