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Monday, February 25, 2013

A Story of Appreciation - must read


This is a powerful message for our modern society. We seem to have lost our bearing & our sense of direction. One young academically excellent person went to apply for a managerial position in a big company. He passed the first interview; the director did the last interview. The director discovered from the CV that the youth's academic achievements were excellent all the way, from the secondary school until the postgraduate research, never had a year when he did not score.
The director asked, "Did you obtain any scholarships in school?"
The youth answered "none".
The director asked, "Was it your father who paid for your school fees?"
 The youth answered, "My father passed away when I was one year old, it was my mother who paid for my school fees.
The director asked, "Where did your mother work?" 
The youth answered, "My mother worked as laundry woman. 
The director requested the youth to show his hands. 
The youth showed a pair of hands that were smooth and perfect.
The director asked, "Have you ever helped your mother wash the clothes before?" 
The youth answered, "Never, my mother always wanted me to study and read more books. Furthermore, my mother can wash clothes faster than me.
The director said, "I have a request. When you go back today, go and clean your mother's hands, and then see me tomorrow morning.
The youth felt that his chance of landing the job was high. When he went back, he happily requested his mother to let him clean her hands. His mother felt strange, happy but with mixed feelings, she showed her hands to the young man. The youth cleaned his mother's hands slowly. His tear fell as he did that. It was the first time he noticed that his mother's hands were so wrinkled, and there were so many bruises in her hands. Some bruises were so painful that his mother shivered when they were cleaned with water. This was the first time the youth realized that it was this pair of hands that washed the clothes every day to enable him to pay the school fee. The bruises in the mother's hands were the price that the mother had to pay for his graduation, academic excellence and his future. After finishing the cleaning of his mother’s hands, the youth quietly washed all the remaining clothes for his mother. That night, mother and son talked for a very long time. Next morning, the youth went to the director's office.
The Director noticed the tears in the youth's e yes, asked: "Can you tell me what have you done and learned yesterday in your house? " The youth answered, "I cleaned my mother's hand, and also finished cleaning all the remaining clothes'
The Director asked, "Please tell me your feelings."
youth said:
1. I know now what appreciation is. Without my mother, there would not have been the successful me today.
2. By working together and helping my mother, only I now realize how difficult and tough it is to get something done.
3. I have come to appreciate the importance and value of family relationships.
The director said, "This is what I am looking for to be my manager. I want to recruit a person who can appreciate the help of others, a person who knows the sufferings of others to get things done, and a person who would not put money as his only goal in life. You are hired.
Later on, this young person worked very hard, and received the respect of his subordinates. Every employee worked diligently and as a team. The company's performance improved tremendously.
A child, who has been protected and habitually given whatever he wanted, would develop "entitlement mentality" and would always put himself first. He would be ignorant of his parent's efforts. When he starts work, he assumes that every person must listen to him, and when he becomes a manager, he would never know the sufferings of his employees and would always blame others. For this kind of a person, who may be good academically, may be successful for a while, but eventually would not feel sense of achievement. He will grumble and be full of hatred and fight for more. If we are this kind of protective parents, are we really showing love or are we destroying the children instead?
You can let your children live in a big house, eat a good meal, learn piano, watch a big screen TV. But when you are cutting grass, please let them experience it. After a meal, let them wash their plates and bowls together with their brothers and sisters. It is not because you do not have money to hire a maid, you want them to understand, no matter how rich their parents are, one day their hair will grow gray, same as the mother of that young person. The most important thing is your children learn how to appreciate the effort and experience the difficulty and learn how to work with others to get things done.


Tuesday, February 19, 2013

GROWING OLDER IS MANDATORY. GROWING UP IS OPTIONAL.!!


Hope for a Comprehensive Fix for RGESS Flaws



The Rajiv Gandhi Equity Savings Scheme is convoluted and cumbersome, but the government looks likely to fix the problems for next year...
Over the last few weeks have been somewhat eventful for the Rajiv Gandhi Equity Savings Scheme. One, the scheme itself is well on its way with a number of RGESS-specific mutual funds now available. Equity investments under the RGESS are also operational with some brokers actively canvassing for investors. Last week, the finance minister also participated in a function launching RGESS investments through the BSE with the first clutch of investors being handed shiny RGESS certificates of some sort that they held up triumphantly while posing for photographs.
While the RGESS is definitely a step forward, being the exclusively equity-oriented tax-saver in a long time, it is also clearly a work in progress. The scheme is convoluted and riddled with needless complications. One example: while you can invest in mutual funds under the scheme, you must do so through your demat account, for some reason that has never been made clear. Now, it so happens that of the three possible methods of fund investing--direct, distributor or demat—the last is the most cumbersome and the least popular. But the RGESS makes it compulsory, as if the goal was to get people to open demat accounts.
However, such as it is, it’s still a way of saving Rs 5,000 of tax if you have never invested in stocks before. But remember, if you are being pitched an RGESS investment by someone, you must make this Rs 50,000 investment only if you have exhausted the Rs 1 lakh limit under section 80C. For a given amount invested, RGESS yields only half the tax saving of Section 80C and so it makes sense to use up the latter first.
One has good reason to hope that these two months of this financial year is the only time that the RGESS will exist in its current form. A number of authorities, including the finance minister himself, have said that the scheme will be modified based on the learnings this year. Hopefully, we’ll have something much more useful next year.

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Thanks and Regards

CA Kapil Talreja
(Practising Chartered Accountant, Personal Finance Consultant & a Member of JagoInvestor Group)
(Mobile No.: 91-8734856509)