Friday, 19 February 2016
Everyday Money
At first glance the patriarchy
appears to be thriving. More than 90% of presidents and prime ministers are
male, as are nearly all big corporate bosses. Men dominate finance, technology,
films, sports, music and even stand-up comedy. In much of the world they still
enjoy social and legal privileges simply because they have a Y chromosome. So
it might seem odd to worry about the plight of men. Yet there is plenty of
cause for concern. They earn fewer university degrees than women. Boys in the
developed world are 50% more likely to flunk basic maths, reading and science
entirely. Poorly educated men have struggled to find a role in the workplace. The
result, for low-skilled men, is a poisonous combination of no job, no family
and no prospects. What can be done? Part of the solution lies in a change in
cultural attitudes. Policymakers also need to lend a hand, because foolish laws
are making the problem worse. Even more important than scrapping foolish
policies is retooling the educational system, which was designed in an age when
most men worked with their muscles. Politicians need to recognise that boys’
underachievement is a serious problem, and set about fixing it. More generally,
schools need to become more boy-friendly. The growing equality of the sexes is
one of the biggest achievements of the post-war era: people have greater
opportunities than ever before to achieve their ambitions regardless of their
gender. But some men have failed to cope with this new world. It is time to
give them a hand.
Womenomics
Daughters
of Working Mothers Earn 23 Percent More
When a woman works outside of the home
before her children are 14 years old, she improves her daughter’s career
prospects, a new report found. Harvard Business School’s recently launched
“Gender Initiative” analyzed data of nearly 50,000 adults aged 18 to 60 in 24
nations from 2002 to 2012. The data was from the International Social Survey
Program, a multi-country program that looks at social trends across developed
nations. The same did not hold true for sons of working mothers, however; they
are as likely as sons with stay-at-home mothers to hold supervisory positions
and earn comparable salaries.
In the U.S., adult daughters of working
mothers earned 23 percent more than those whose mothers had not worked during
their childhoods, earning an annual average income of $35,474 versus $28,894,
the study found. More than one-third held supervisory positions, compared with
just one-quarter of their counterparts from more traditional households. The
study was written by Harvard Business School professor Kathleen McGinn; Harvard
Business School researcher Mayra Ruiz Castro; and Elizabeth Long Lingo, a
researcher at Mt. Holyoke College in South Hadley, Massachusetts.
The pattern of results strongly suggests a
“role modeling effect,” McGinn says. Daughters look around them to look at
what’s appropriate behavior. They see that it’s appropriate and reasonable for
women to go to work, and for women to be powerful, to hold supervisory
responsibility and to make money.”
Musings & Amusings
South Asia is one of the worst places in the world to be female
India’s bachelor leader, Narendra Modi,
struggles with the opposite sex. For a man usually so eloquent, Mr Modi
occasionally lands his sandalled foot in his mouth: on June 7th he made an
especially crass comment during an otherwise successful visit to Bangladesh,
praising his host, Sheikh Hasina, the prime minister, for being tough on
terrorism “despite being a woman”. Critics back home accused Mr Modi of having
retrograde views, typical of those who revere the country as “Mother India” but
who treat women atrociously. Yet such attitudes are widely shared, not just in
India but across South Asia. The whole region fails to grant women equal
respect or opportunities.
That may seem odd, given how prominent a
role women play in South Asian politics. China, Japan, Russia and many other
countries have failed to produce a female prime minister or president. South
Asia has had several. If Hillary Clinton is elected next year to lead the
world’s most powerful democracy, it will be a full half-century after Indira
Gandhi first led the world’s largest one. Sri Lanka’s Sirimavo Bandaranaike
pipped her to become the world’s first female head of government, in 1960. In
that country, uniquely, both a mother and her daughter have held the highest
political office. In the late 1990s Chandrika Kumaratunga even served as
president at the same time as her ageing mother, Mrs Bandaranaike, completed a
third, mostly ceremonial, term as prime minister.
Women prosper at the top of South Asian
democracies partly because they are propelled by dynasties that long formed the
core of political parties. In Bangladesh the two battling begums have ensured
that no other politician gets a look-in.
But if South Asia is one of the best places
on Earth for elite women who aspire to a political career, it is one of the
worst places to be an ordinary woman. The occasional chauvinism faced by
females at the top pales beside the burdens heaped on those at the bottom.
South Asian women fare terribly in a “Mothers’ Index” put together in May by
Save the Children, a British charity. It ranks 179 countries according to the
well-being of their women, using indicators such as maternal mortality, the
survival of young children and women’s involvement in politics. Subcontinental
nations come out the worst in Asia. Women in India and Pakistan (ranked 140th
and 149th) have a quality of life only a little brighter than those in
Afghanistan (152nd) and far behind those in China (61st), who are far more
likely to survive childbirth, or see their offspring spend a long time in
school.
Let
money do the talking
Yet South
Asia will need to spend a lot more on women in order to see further
improvements. The region devotes barely 1% of GDP to public health (China
spends 3.1%).This puts a heavy burden on those who give
birth and take most responsibility for child care.
The resources spent on women in South Asia
are shared more unevenly than in most places. Among the richest quintile in
Delhi (it is a similar story in Dhaka and elsewhere), women can enjoy maternal
and other care close to first-world standards. By contrast the poorest quintile
in the same cities, especially in slums, endure conditions as bad—or worse—than
in far poorer villages: in Delhi only 19% of such women have someone skilled
present when they give birth. Barely half of their children have had a measles
jab and nearly three-fifths are stunted. Reducing such inequality would be one
way to make existing resources go further in South Asia. But that is likely to
happen no quicker than changing old-fashioned attitudes to women.
Source: The Economist (Asia)
Monday, 14 September 2015
Finance & Investments
One of the interesting points fleshed out in a report released recently by
Deloitte on the future of the financial advice industry is the curious
mismatch between growing demand for financial advice and increased
levels of distrust in the community toward advisers.
The NZ experience is little different in my experience.
Baby boomers dominate the industry’s customer segment, with Australians aged over 55 accounting for two-thirds of all financial planning customers and a whopping 80 per cent of all dollars under advice. There has also been a recent focus on capturing high net worth customers.
One of the problems is the increased variety and complicated abundance of options can leave consumers “spoiled by choice and overwhelmed by difference” the report says, especially when it comes to the comparison of products and services with complex features.
Source: Business Spectator
The NZ experience is little different in my experience.
Baby boomers dominate the industry’s customer segment, with Australians aged over 55 accounting for two-thirds of all financial planning customers and a whopping 80 per cent of all dollars under advice. There has also been a recent focus on capturing high net worth customers.
One of the problems is the increased variety and complicated abundance of options can leave consumers “spoiled by choice and overwhelmed by difference” the report says, especially when it comes to the comparison of products and services with complex features.
Source: Business Spectator
Monday, 18 May 2015
Everyday Money
Being in debt can be a stressful experience.
1. Make a conscious decision to stop borrowing money
If you want to get out of debt fast, you have to stop using debt to fund your lifestyle. This means no more financing furniture, no more signing up for credit cards.
2. Establish a starter Emergency Fund of $1000
You might be wondering, ‘Why is having an emergency fund important’? Well, if you don’t have any money in the bank and an emergency does happen, how are you going to pay for it?
3. Create a realistic budget and stick to it
Developing a budget that tracks your income and your expenses is crucial to getting out of debt in a short period of time. The first way is to earn some extra cash. The second thing that you can do is trim your expenses.
4. Organise your debt
This is paramount to mapping out a plan to pay off your debt. There are two approaches that are worth considering. The first is where you list your debts smallest to largest regardless of the interest rate.
The other method is called laddering. This is where you list your debts, starting with the highest interest rate first and end with the debt with the lowest interest rate. This method makes the most mathematical sense, because you will save the most money in interest over time. Regardless of which process you choose, the key is to stick with it.
5. Throw any excess cash at your debt
Some good examples would be a tax refund, selling a car, an inheritance, winning a bet, etc. The more cash you can put towards your debt, the faster it will disappear.
Debt doesn’t have to be forever. Develop your financial game plan and start your journey toward being debt-free today.
Source: Clark Howard
1. Make a conscious decision to stop borrowing money
If you want to get out of debt fast, you have to stop using debt to fund your lifestyle. This means no more financing furniture, no more signing up for credit cards.
2. Establish a starter Emergency Fund of $1000
You might be wondering, ‘Why is having an emergency fund important’? Well, if you don’t have any money in the bank and an emergency does happen, how are you going to pay for it?
3. Create a realistic budget and stick to it
Developing a budget that tracks your income and your expenses is crucial to getting out of debt in a short period of time. The first way is to earn some extra cash. The second thing that you can do is trim your expenses.
4. Organise your debt
This is paramount to mapping out a plan to pay off your debt. There are two approaches that are worth considering. The first is where you list your debts smallest to largest regardless of the interest rate.
The other method is called laddering. This is where you list your debts, starting with the highest interest rate first and end with the debt with the lowest interest rate. This method makes the most mathematical sense, because you will save the most money in interest over time. Regardless of which process you choose, the key is to stick with it.
5. Throw any excess cash at your debt
Some good examples would be a tax refund, selling a car, an inheritance, winning a bet, etc. The more cash you can put towards your debt, the faster it will disappear.
Debt doesn’t have to be forever. Develop your financial game plan and start your journey toward being debt-free today.
Source: Clark Howard
Musings & Amusings
What Do Millionaires Know That We Don’t?
5 Surprising Facts About Millionaires
Most Millionaires Don't Feel Rich
When Spectrem researchers asked people with a net worth between $1 million and $5 million to put themselves on a sliding scale ranging from 0 (poor) to 100 (wealthy), the average response was 63.91 — or just above the middle. In reality, those with at least $1 million are wealthier than about 92 percent of American households.Hard Work and Education Are Keys to Success
When asked how their wealth was created, a whopping 94 percent of millionaires surveyed by Spectrem credited hard work. The number two factor? Education, cited by 87 percent. That ranked it ahead of smart investing (83 percent), frugality (78 percent) and risk-taking (60 percent).They Get Help From Experts
Millionaires typically don't see themselves as experts in investing. Only one in five considered themselves very knowledgeable. Another one in five admitted they weren't knowledgeable, while the majority — 60 percent — said they were fairly knowledgeable but still had a lot to learn.Only one in four millionaires Spectrem surveyed said they were self-directed investors with no assistance from advisors. The other three-quarters said they were either "advisor assisted" (26 percent), "advisor dependent" (14 percent) or "event driven" (32 percent), meaning they hired financial advisors to help them deal with specific events in their lives such as impending retirement or divorce.
They’re Hands-on With Their Money
Even though most hire help, the majority remain hands-on with their money, Spectrem found. And the more money they have, the more involved they want to be.The Wealthiest Households Enjoy Saving More Than Spending
Seven out of 10 of the wealthiest households — those with a net worth above $25 million — said that saving and investing their money gave them greater satisfaction than spending it.Source: Dailyworth













