The Foundation held a special session on personal finance for those in their twilight years on how they can be safe with their money by avoiding scams and how they can make the best of their retirement corpus
“Not many senior citizens are aware that an option for reverse mortgage exists, and that it can be a good thing to look into after retirement,” said Mr Debashis Basu, trustee of Moneylife Foundation, speaking at a seminar held by the same organisation. He was speaking on investment and financial issues related to senior citizens.
Mr Basu said, “Reverse mortgage is a fairly new product, but it guarantees a fixed income till someone’s death. After his death, his spouse continues to enjoy the income as long as she is alive, after which, the property goes to the bank or housing finance corporation. It may not be a flawless option, but I think people need to look at it carefully.”
There is another kind of reverse mortgage available, by which the heir or children can reclaim the property by repaying the loan, Mr Basu explained. He also talked about investing in stocks and mutual funds, which he says is essential because inflation erodes fixed deposits and savings.
“When inflation is somewhere near 10%, and your bank/government bond is giving you an 8% interest, it is not a profitable situation. One must judiciously invest in stocks and mutual funds to create wealth because with age, expenses also grow. So it is better to start from 40,” he said. He said that health insurance is a must for every senior citizen, but unfortunately, the sector is badly regulated. Companies often charge high premiums, but enthusiastically reject loans, but it is better to have a medical insurance in case of senior citizens.
He advised against investing in gold, which doesn’t give any returns on its own. He said, “Gold prices are linked to value of US dollar and the rupee, and value of US Treasury Bonds. Unless you understand the currencies thoroughly, it is a risky speculative asset,” he said.
Ms Sucheta Dalal, trustee of Moneylife Foundation also spoke on the various scams and pyramid schemes which must be avoided to save money. She said, “Senior citizens and women are especially vulnerable, they trust what their friends and relatives say and are often duped.”
She also spoke Wills and nominations, and said, “Recently, a Bombay High Court judge has ruled that a nominee’s rights supercede the rights of the heir, so be very careful when selecting a nominee. Earlier, it was considered that after a person dies, the nominee transfers the shares/assets to the heir.”
Ms Dalal also talked about the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, which has been implemented in a few states excluding Maharashtra. The Act says that parents are entitled to an allowance, and if their children refuse to take care of them, the latter can be fined or imprisoned.
She also talked about retirement homes, which are becoming popular. “Unfortuantely, it is a new area, and there is not much information available. I would advise that one goes to a developer of repute to avoid future hassles, and think carefully whether living there would be comfortable,” she said. She said that it is better to go for retirement homes which are available on a deposit-and-lease basis, rather than buy a property. “Because then, you can only sell it to senior citizens. You are stuck if you want to move out, and after your death, your heir can neither sell nor live in it,” she said.
To deter unsolicited SMSes by telemarketing companies, TRAI had earlier restricted the number of non-commercial SMSes that can be send from a SIM to 100. The new cap of 200 SMSes per SIM per day will be effective from today, the telecom regulator said
New Delhi: Telecom consumers will now be able to send up to 200 SMSes per day from a SIM, as against the earlier limit of just 100 SMSes per day imposed by the Telecom Regulatory Authority of India (TRAI), reports PTI.
“The authority has received representations from some service providers and consumers to increase the limit of 100 SMSes per day per SIM. The authority has considered these representations and decided to increase the limit of 100 SMSes per day per SIM to 200 SMSes per day per SIM,” TRAI said in a statement today.
To deter unsolicited SMSes by telemarketing companies, TRAI had earlier restricted the number of non-commercial SMSes that can be send from a SIM to 100. There was no restriction on commercial messages sent through telemarketing companies registered with TRAI.
The new cap of 200 SMSes per SIM per day will be effective from today, the telecom regulator added.
If the Nifty falls below today’s low, it may find support at 5,160
The market settled in the red for the second day on fresh European concerns as the Greek prime minister sought a referendum on aid in the country. The slowdown in domestic infrastructure growth also weighed on investors. In yesterday’s closing report, we had mentioned that the pullback would continue. Today the Nifty traded lower for the entire trading session. Again, the National Stock Exchange (NSE) fell on a volume of 55.19 crore shares, which was above its 10-day moving average. From here if the Nifty does not hold on to today’s low, we may see the index fall to the level of 5,160. However, if we have to see the index resume its uptrend, it should close above today’s high, after which the upsurge may be to the level of 5,315.
Indian shares opened lower for the second day in a row on concerns about the progress of the initiatives to end the European debt crisis. Investor sentiments were down as the US market ended lower overnight and the Asian bourses opened weak this morning. Back home, the Nifty opened at 5,279, down 48 points, and the Sensex started the day with a loss of 164 points at 17,541.
Staying in the negative terrain, the market hit the day’s high in initial trade itself with the Nifty rising to 5,311 and the Sensex at 17,662. However, institutional selling pushed the indices further southwards as trade progressed. A weak opening of the key European indices made matters worse for the Indian benchmarks in noon trade.
The market fell to the day’s low around 2.30pm with the Nifty falling to 5,238 and the Sensex declining to 17,422. However, a minor recovery ensured a close off the lows of the day. End of day, the Nifty was at 5,258, down 69 points and the Sensex closed 224 points lower at 17,481.
The advance-decline ratio on the NSE was 654:1245.
Among the broader indices, the BSE Mid-cap index declined 0.72% and the BSE Small-cap index fell by 0.55%.
All sectoral gauges settled in the negative with the BSE Auto index (down 1.98%) leading the pack. It was followed by BSE Realty (down 1.87%), BSE Banked (down 1.54%), BSE Metal (down 1.52%) and BSE Capital Goods (down 1.10%).
The major gainers on the Sensex were Hindustan Unilever (up 3.52%), Wipro (up 1.83%), Tata Power (up 0.90%), Bharti Airtel (up 0.84%) and BHEL (up 0.53%). The top losers on the index were ICICI Bank (down 3.80%), Mahindra & Mahindra (down 3.38%), Sterlite Industries (down 3.22%), Tata Motors (down 2.49%) and ITC (down 2.35%).
The top performers on the Nifty were HUL (up 3.13%), Punjab National Bank (up 2.06%), Wipro (up 1.81%), BPCL (up 1.42%) and Maruti Suzuki (up 1.13%). The laggards were led by ICICI Bank (down 3.87%), M&M (down 3.75%), Reliance Infrastructure (down 3.73%), Dr Reddy’s (down 3.69%) and HCL Technologies (down 3.55%).
Reports of a fall in China’s factory output for September and the Greek prime minister’s call for a referendum on aid to the debt-stricken country resulted in the Asian bourses settling lower today. China’s official Purchasing Managers’ Index fell to 50.4 in October from 51.2 in September, the lowest in nearly three years. The reading indicates that manufacturing activity continues to slow in the world’s second-largest economy.
The Hang Seng tanked 2.49%; the Jakarta Composite plunged 2.79%; the KLSE Composite declined 1.09%; the Nikkei 225 slipped 1.70% and the Straits Times tumbled 2.3%. On the other hand, the Shanghai Composite rose 0.07%; the Seoul Composite added 0.03% and the Taiwan Weighted gained 0.45%.
Back home, foreign institutional investors were net buyers of stocks totalling Rs358.78 crore. On the other hand, domestic institutional investors were net sellers of shares aggregating Rs276.36 crore.
Fortis Healthcare India will pay $665 million (around Rs3,270 crore) to acquire Singapore-based Fortis Healthcare International Pte from a firm owned by its promoters, the Singh brothers. The acquisition, which is expected to be completed by mid-December 2011, would be funded by debt to start with and once the transaction is complete, Fortis Healthcare will execute its other fund raising plans. The scrip closed 3.45% higher at Rs128.80 on the NSE.
Making a foray into the international operations & maintenance (O&M) business, the country’s largest power producer NTPC today said it has bagged a Rs43 crore contract in Bangladesh for providing O&M services. NTPC Consultancy, a part of the state-run power major, has secured a six-year contract to provide O&M services at the Siddhirganj Peaking Power Plant in Bangladesh. The stock fell 1.31% to close at Rs176.90 on the NSE.
Pharma major Sun Pharmaceutical’s subsidiary has received approval from the US health regulator to market generic Diltiazem HCl extended-release capsules used for treating hypertension and angina in the American market. Diltiazem HCl extended-release capsules are indicated for the treatment of hypertension and for the management of angina. The stock lost 0.63% to close at Rs63.05 on the NSE.