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BEICHUAN, China (Reuters) - Thousands of Chinese fled to the hills on Saturday amid fears a lake formed near the epicenter of this week's earthquake would burst its banks.
The water level at the lake formed after aftershocks blocked a river was rising rapidly in Beichuan and "may burst its bank at any time", the official Xinhua news agency said.
A paramilitary officer told Reuters the likelihood of the lake bursting its banks was "extremely big".
A witness said by telephone the military was evacuating everyone in Beichuan, even rescue workers.
A Reuters journalist fled an area near the Beichuan Middle School, which President Hu Jintao visited on Friday. Soldiers were talking on the radio saying "all retreat" and there was a lot of dust in the air. Troops were leaving fast.
China has said it expects the final death toll from Monday's 7.9 magnitude earthquake to exceed 50,000. About 4.8 million people have lost their homes and the days are numbered in which survivors can be found.
Cabinet spokesman Guo Weimin, taking a long pause to compose himself as he read from an updated casualty report at a news conference, put the death toll so far at 28,881.
Sichuan Vice-Governor Li Chengyun said more than 188,100 people have been injured and about 10,600 people remain buried under rubble. About 2.6 million tents are needed to shelter 4.8 million displaced residents,
Saturday, May 17, 2008
INDIA READY FOR DIGITAL INFORMATION
. A single click connects you to millions of people around the world and gets you information in an instant. And the man leading Google’s charge in India, has an American accent but Indian roots. Shailesh Rao, the Managing Director of Google India started at Google’s headquarters in Silicon Valley before he logged on to the Indian market.
A graduate from the Kellogg School of Management, Shailesh Rao had worked with Mercer, America Online and Yodlee before he joined Google. He started in California and now he is heading Google’s India operations. Shailesh Rao is the Managing Director of Google India at 36. His aspiration is to make Google an indispensable part of every Indian’s daily life and in every Indian business growth in five years time.
Shailesh Rao said that Google is young company. They have been around only for 8 or 9 years. He said that India has really come to the forefront Google's consciousness only in the last few years so it is a perfect time to come to India, take all the resources, the talent, the energy of Google and apply it to a vast, diverse interesting market like India. Rao added that India is absolutely ready for the the digital information age. He said that India is a culture that’s always has been focused on education. He spoke in an exclusive interview with CNBC-TV18's Shereen Bhan.
Experts from CNBC-TV18's exclusive interview with Shailesh Rao:
Q: You said that the first few months at Google were challenging because working at Google is a bit of an acquired taste. It is unlike any other organisation. Why is that?
A: Google has got a very particular culture in which one empowers all the individuals, employees to own their own work, own their achievements and try to have an impact. So, one has to get used to a culture where one has to be a self starter, be self motivated and have the self confidence to just get things done, and not look around for approvals or direction and ask your manager if something is okay or not. There is such a healthy confidence and belief in every employee’s ability to have impact, that once you understand that responsibility and that opportunity, it actually is a lot of fun.
Q: In spite of abysmally low penetration, the Indian Internet space has caught the fancy of web evangelists. Google India has already become the second largest operation for Google Worldwide in terms of number of employees and has even surprisingly emerged as the highest growth market in terms of advertising revenues. The effort is now on extending reach. The solution: bridging the language divide, India specific content, and India focused sites like youtube.co.in?
A: We want to be able to service all Indians, large or small. YouTube allows us to bring video to Indians. As a format it is very compelling. Culturally, we love video; we have a long history of enjoying film. But in addition, video allows an opportunity for all Indians to engage in the information revolution. It doesn’t require text input; it doesn’t require that level of literacy. It almost allows you to circumvent those issues and connect with a broader audience.
Q: This is a great time to be part of Google’s India operations because it is one of your fastest growing markets and of course in terms of R&D; it has always been of strategic importance to Google?
A: That’s right. We are a young company. We have only been around for 8 or 9 years. So, India has really come to the forefront of our company’s consciousness only in the last few years. It is a perfect time to come to India, take all the resources, the talent, the energy of Google and apply it to a vast, diverse interesting market like India and hopefully have an impact. We really are a start-up. So, working for a start-up within a start-up is extra special.
Q: What is the biggest challenge of working within a startup in a startup?
A: Having been in a startup that I know and remember, the challenge of making hard trade-offs, having big dreams and resources that are not that big, and making tough decisions about what to do and what most importantly not to do.
Q: What has been the toughest decision that you have taken both in terms of what to do and what not to do?
A: If you look at our global product portfolio, we actually have products for consumers that number in the dozens. Many people may not know but if you click on the more link on the Google homepage, there is a list of services beyond the ones that are used most often, which are really interesting for users. In India, we don’t have the privilege of taking that full slate of products and bringing them all simultaneously.
Q: Do you think India is ready at this point in time for it?
A: India is absolutely ready for the information age, the digital information age. It is a culture that’s always has been focused on education; Whether it is my parents, my relatives or friends - there is a common theme across the culture which that education is the pathway to better quality of life, a better livelihood for the next generation.
Q: When I was speaking to Ram Sriram a couple of months ago and he was talking about how Google has become the textbook or the new textbook in emerging markets and taking that philosophy forward in India. Have you had discussions with the government? How can you really become part of the sort of education initiative?
A: It is tremendous opportunity for us. We have spoken quite a bit with various parts of the government with respect to the potential public-private partnerships. There is a lot that we could do to help the youth of India access necessary information; Both for the educational purposes as well as just general knowledge and interest and entrainment.
Q: What will these partnerships really look like and what they would do?
A: The interesting thing about the internet today is that there is a lot of information on the internet. But it is not the most relevant for Indian interest and needs. So one of the primary focus areas for Google India is to work with all the content providers in India who have information relevant to Indians and find a way to merge their information with our capabilities to provide accesses and really create a fundamentally different kind of online experience for the average Indian - young or old.
Q: You have talked about making Google more relevant to an Indian audience, to an Indian internet user. Part of that initiative is really bridging the language divide, which you have sort of taken off in Indian - what more can we see on that front?
A: Whether it is ‘Google Search’ or ‘Google.co.in’ or whether it is ‘Orkut’, whether it is ‘Blogger’ - many of these products are available in many Indian languages beyond English - that’s the first step. But beyond the obvious, which is the language support, we really need to spend more time understanding the particular needs and interest of the vast diversity i.e. India.
Q: With a large engineering presence in India, you are keen to ramp up Google’s market capabilities to service the Indian markets. With the recent Indian tie-up with Bharti Airtel, Do you want Google mobile to cash in on India’s mobile mania.
A: There are two buckets. One bucket, takes Google products that users love around the world and in India and bring it to a mobile device. The second bucket or category is thinking about novel applications that take advantage of the mobile device for what it is - separate and distinct from the computer. We build our business is by providing advertising opportunities to businesses. In India, we believe there is a tremendous opportunity in mobile advertising. We have seen lots of success around the world in providing our type of advertising on a mobile device.
Q: Outside of the mobile phenomena the other revolution that India has got caught up is the entire social networking revolution Orkut, Facebook you name it and it is not now just an urban yippee phenomena it is a Tier I-Tier II phenomena as well. What more are we actually going to see on that front?
A: The thing that binds us around the world, and binds Indians across the country is a deep desire to connect to communicate, to share with one another and create a platform that enables them to do that has been very satisfying for us. So Orkut is a very important part of our portfolio in India. It is the most popular service on the Internet if you look at some third party’s statistics. So the main thing is to make sure that our existing community of users remain happy and get tremendous value out of this service.
Q: What are revenues going to look for this start up within a start up?
A: We are growing faster than the overall company and we are growing very fast even for an Indian business comparatively speaking. So very excited about that. The sure history we have had in India has been tremendous in terms of the reception we have got from the consumers and from businesses. With respect to consumers, I don’t think it is too far to say that at this point in our evolution we are as well situated in India maybe, as we have been anywhere out. The breadth and the diversity of the interest in our products has been really compelling. We hope to continue to invest in growth.
Q: Share with us before we let you go your five-point India strategy over the next 12-18 months?
A: Before I get into this strategy, I think the objective is important. The mission of the company is to organize the world’s information and make it universally accessible and useful. In that context; Our goal is to create products for Indian consumers and Indian businesses. To do that we need to build a great organization, making sure we have information relevant for Indians, and deliver that information across all the devices that Indians use to access information. Putting it in terms so that all Indians can participate across India in rural towns and in the urban sectors from North to South and making sure their businesses take advantage of ad-worlds as a platform to advertise and connect with consumers digitally. So that Google can be a central part of the overall India growth story and the economy’s
A graduate from the Kellogg School of Management, Shailesh Rao had worked with Mercer, America Online and Yodlee before he joined Google. He started in California and now he is heading Google’s India operations. Shailesh Rao is the Managing Director of Google India at 36. His aspiration is to make Google an indispensable part of every Indian’s daily life and in every Indian business growth in five years time.
Shailesh Rao said that Google is young company. They have been around only for 8 or 9 years. He said that India has really come to the forefront Google's consciousness only in the last few years so it is a perfect time to come to India, take all the resources, the talent, the energy of Google and apply it to a vast, diverse interesting market like India. Rao added that India is absolutely ready for the the digital information age. He said that India is a culture that’s always has been focused on education. He spoke in an exclusive interview with CNBC-TV18's Shereen Bhan.
Experts from CNBC-TV18's exclusive interview with Shailesh Rao:
Q: You said that the first few months at Google were challenging because working at Google is a bit of an acquired taste. It is unlike any other organisation. Why is that?
A: Google has got a very particular culture in which one empowers all the individuals, employees to own their own work, own their achievements and try to have an impact. So, one has to get used to a culture where one has to be a self starter, be self motivated and have the self confidence to just get things done, and not look around for approvals or direction and ask your manager if something is okay or not. There is such a healthy confidence and belief in every employee’s ability to have impact, that once you understand that responsibility and that opportunity, it actually is a lot of fun.
Q: In spite of abysmally low penetration, the Indian Internet space has caught the fancy of web evangelists. Google India has already become the second largest operation for Google Worldwide in terms of number of employees and has even surprisingly emerged as the highest growth market in terms of advertising revenues. The effort is now on extending reach. The solution: bridging the language divide, India specific content, and India focused sites like youtube.co.in?
A: We want to be able to service all Indians, large or small. YouTube allows us to bring video to Indians. As a format it is very compelling. Culturally, we love video; we have a long history of enjoying film. But in addition, video allows an opportunity for all Indians to engage in the information revolution. It doesn’t require text input; it doesn’t require that level of literacy. It almost allows you to circumvent those issues and connect with a broader audience.
Q: This is a great time to be part of Google’s India operations because it is one of your fastest growing markets and of course in terms of R&D; it has always been of strategic importance to Google?
A: That’s right. We are a young company. We have only been around for 8 or 9 years. So, India has really come to the forefront of our company’s consciousness only in the last few years. It is a perfect time to come to India, take all the resources, the talent, the energy of Google and apply it to a vast, diverse interesting market like India and hopefully have an impact. We really are a start-up. So, working for a start-up within a start-up is extra special.
Q: What is the biggest challenge of working within a startup in a startup?
A: Having been in a startup that I know and remember, the challenge of making hard trade-offs, having big dreams and resources that are not that big, and making tough decisions about what to do and what most importantly not to do.
Q: What has been the toughest decision that you have taken both in terms of what to do and what not to do?
A: If you look at our global product portfolio, we actually have products for consumers that number in the dozens. Many people may not know but if you click on the more link on the Google homepage, there is a list of services beyond the ones that are used most often, which are really interesting for users. In India, we don’t have the privilege of taking that full slate of products and bringing them all simultaneously.
Q: Do you think India is ready at this point in time for it?
A: India is absolutely ready for the information age, the digital information age. It is a culture that’s always has been focused on education; Whether it is my parents, my relatives or friends - there is a common theme across the culture which that education is the pathway to better quality of life, a better livelihood for the next generation.
Q: When I was speaking to Ram Sriram a couple of months ago and he was talking about how Google has become the textbook or the new textbook in emerging markets and taking that philosophy forward in India. Have you had discussions with the government? How can you really become part of the sort of education initiative?
A: It is tremendous opportunity for us. We have spoken quite a bit with various parts of the government with respect to the potential public-private partnerships. There is a lot that we could do to help the youth of India access necessary information; Both for the educational purposes as well as just general knowledge and interest and entrainment.
Q: What will these partnerships really look like and what they would do?
A: The interesting thing about the internet today is that there is a lot of information on the internet. But it is not the most relevant for Indian interest and needs. So one of the primary focus areas for Google India is to work with all the content providers in India who have information relevant to Indians and find a way to merge their information with our capabilities to provide accesses and really create a fundamentally different kind of online experience for the average Indian - young or old.
Q: You have talked about making Google more relevant to an Indian audience, to an Indian internet user. Part of that initiative is really bridging the language divide, which you have sort of taken off in Indian - what more can we see on that front?
A: Whether it is ‘Google Search’ or ‘Google.co.in’ or whether it is ‘Orkut’, whether it is ‘Blogger’ - many of these products are available in many Indian languages beyond English - that’s the first step. But beyond the obvious, which is the language support, we really need to spend more time understanding the particular needs and interest of the vast diversity i.e. India.
Q: With a large engineering presence in India, you are keen to ramp up Google’s market capabilities to service the Indian markets. With the recent Indian tie-up with Bharti Airtel, Do you want Google mobile to cash in on India’s mobile mania.
A: There are two buckets. One bucket, takes Google products that users love around the world and in India and bring it to a mobile device. The second bucket or category is thinking about novel applications that take advantage of the mobile device for what it is - separate and distinct from the computer. We build our business is by providing advertising opportunities to businesses. In India, we believe there is a tremendous opportunity in mobile advertising. We have seen lots of success around the world in providing our type of advertising on a mobile device.
Q: Outside of the mobile phenomena the other revolution that India has got caught up is the entire social networking revolution Orkut, Facebook you name it and it is not now just an urban yippee phenomena it is a Tier I-Tier II phenomena as well. What more are we actually going to see on that front?
A: The thing that binds us around the world, and binds Indians across the country is a deep desire to connect to communicate, to share with one another and create a platform that enables them to do that has been very satisfying for us. So Orkut is a very important part of our portfolio in India. It is the most popular service on the Internet if you look at some third party’s statistics. So the main thing is to make sure that our existing community of users remain happy and get tremendous value out of this service.
Q: What are revenues going to look for this start up within a start up?
A: We are growing faster than the overall company and we are growing very fast even for an Indian business comparatively speaking. So very excited about that. The sure history we have had in India has been tremendous in terms of the reception we have got from the consumers and from businesses. With respect to consumers, I don’t think it is too far to say that at this point in our evolution we are as well situated in India maybe, as we have been anywhere out. The breadth and the diversity of the interest in our products has been really compelling. We hope to continue to invest in growth.
Q: Share with us before we let you go your five-point India strategy over the next 12-18 months?
A: Before I get into this strategy, I think the objective is important. The mission of the company is to organize the world’s information and make it universally accessible and useful. In that context; Our goal is to create products for Indian consumers and Indian businesses. To do that we need to build a great organization, making sure we have information relevant for Indians, and deliver that information across all the devices that Indians use to access information. Putting it in terms so that all Indians can participate across India in rural towns and in the urban sectors from North to South and making sure their businesses take advantage of ad-worlds as a platform to advertise and connect with consumers digitally. So that Google can be a central part of the overall India growth story and the economy’s
Indiantelevision.com's News Releases
Network 18 Joins in the World's Richest 10 K Race in Bangalore
MUMBAI: Leading Indian News channels CNBC-TV18 has partnered with the 'Sunfeast WORLD 10 K' race, which will be held in Bangalore. The WORLD 10K race is a yearly event, which has been organized in different parts of the world and for the first time, is being organized in India. The 'Sunfeast WORLD 10K' is also the richest race, with total prize money of 150,000 USD.
The 'Sunfeast WORLD 10 K' will be a unifying experience which will have more than 15000 enthusiastic runners, including international and national elite athletes participating. CNBC TV18 will bring the event live to millions of Indians on May 18, 2008 from 7 am onwards, along with a power packed line up of programming built around the event.
CNBC-TV18 will cover the tremendous diversity of the WORLD 10K experience, ranging from professional participation to support of charity causes and corporate social endeavors to celebrity involvement, from individual recreation to community building.
On the race day, the channels will embed reporters and anchors through the race. This will ensure a power packed, razor sharp viewing experience. The channels will also showcase extensive graphical features such as leader boards, timers, chopper shots, trivia along with commentary from expert commentators.
Speaking on Network 18's partnership with this race, Ajay Chacko, Director, TV18 Business Media said, "The Sunfeast WORLD 10 K epitomizes the spirit of Bangalore and celebrates the city's emergence as the leading global symbol of India. Editorially, we constantly aim to deliver value added content to our viewers along with a special programming emphasis on properties that highlight the rapidly transforming economic scenario in the south. After our highly successful Mumbai marathon coverage, we believe that the 10 k race will be another significant programming milestone"
Mr. Anil Singh of Procam International, promoters of the event said "We are very proud and excited to be associated with Network18 for the Sunfeast 10 K. We believe that the race will take a quantum leap with coverage from the market leading channel of the group, CNBC-TV18, delivering maximized reach and audiences for the Sunfeast WORLD 10 K Race, Bangalore. The Race culture is rapidly spreading across India, symbolic of the nation's passion for health, competition and leadership and CNBC-TV18 will be an ideal partner in spreading this cult"
The 'Sunfeast WORLD 10K' will be held in 6 different categories which include the World 10K (distance: 10 km), Nation's Challenge (distance: 10 km), Open 10K (distance: 10 km), Majja Run (distance: 5.7 km), Sr. Citizens' Run (distance: 4 km) and the Wheelchair Event (distance: 4 km) for the physically challenged. The Race will commence from Kasturba Road, outside Kanteerva Stadium and end inside the Athletic Stadium.
The city of Bangalore has responded by enthusiastically swamping all the race categories on offer. So all you athlete's in the country, on your mark, get set to watch the 1st edition of Sunfeast 'WORLD10K' in Bangalore on CNBC TV 18 only.
MUMBAI: Leading Indian News channels CNBC-TV18 has partnered with the 'Sunfeast WORLD 10 K' race, which will be held in Bangalore. The WORLD 10K race is a yearly event, which has been organized in different parts of the world and for the first time, is being organized in India. The 'Sunfeast WORLD 10K' is also the richest race, with total prize money of 150,000 USD.
The 'Sunfeast WORLD 10 K' will be a unifying experience which will have more than 15000 enthusiastic runners, including international and national elite athletes participating. CNBC TV18 will bring the event live to millions of Indians on May 18, 2008 from 7 am onwards, along with a power packed line up of programming built around the event.
CNBC-TV18 will cover the tremendous diversity of the WORLD 10K experience, ranging from professional participation to support of charity causes and corporate social endeavors to celebrity involvement, from individual recreation to community building.
On the race day, the channels will embed reporters and anchors through the race. This will ensure a power packed, razor sharp viewing experience. The channels will also showcase extensive graphical features such as leader boards, timers, chopper shots, trivia along with commentary from expert commentators.
Speaking on Network 18's partnership with this race, Ajay Chacko, Director, TV18 Business Media said, "The Sunfeast WORLD 10 K epitomizes the spirit of Bangalore and celebrates the city's emergence as the leading global symbol of India. Editorially, we constantly aim to deliver value added content to our viewers along with a special programming emphasis on properties that highlight the rapidly transforming economic scenario in the south. After our highly successful Mumbai marathon coverage, we believe that the 10 k race will be another significant programming milestone"
Mr. Anil Singh of Procam International, promoters of the event said "We are very proud and excited to be associated with Network18 for the Sunfeast 10 K. We believe that the race will take a quantum leap with coverage from the market leading channel of the group, CNBC-TV18, delivering maximized reach and audiences for the Sunfeast WORLD 10 K Race, Bangalore. The Race culture is rapidly spreading across India, symbolic of the nation's passion for health, competition and leadership and CNBC-TV18 will be an ideal partner in spreading this cult"
The 'Sunfeast WORLD 10K' will be held in 6 different categories which include the World 10K (distance: 10 km), Nation's Challenge (distance: 10 km), Open 10K (distance: 10 km), Majja Run (distance: 5.7 km), Sr. Citizens' Run (distance: 4 km) and the Wheelchair Event (distance: 4 km) for the physically challenged. The Race will commence from Kasturba Road, outside Kanteerva Stadium and end inside the Athletic Stadium.
The city of Bangalore has responded by enthusiastically swamping all the race categories on offer. So all you athlete's in the country, on your mark, get set to watch the 1st edition of Sunfeast 'WORLD10K' in Bangalore on CNBC TV 18 only.
WALL STREET JOURNAL
Without Yahoo, Microsoft Has Little for Advertisers
By Robert A. Guth
Word Count: 490 | Companies Featured in This Article: Microsoft, Yahoo, Google
Online advertisers next week will descend on Seattle seeking signs of how Microsoft Corp. will compete online without buying Yahoo Inc. They will have to wait a bit longer.
For two days starting Tuesday, Microsoft will hold an annual demonstration to online advertisers its tools and strategies for making them money on the Internet. In the past, the message of the event was that Microsoft was on track to be a viable competitor of Google Inc. Microsoft would detail how it planned to get there by investing in its own services for searching the Internet and brokering ads. Advertisers ...
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• Yahoo's Shares Tumble As Microsoft Ends Pursuit May. 05, 2008
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• Microsoft Fails to Reach Yahoo Decision Apr. 30, 2008
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Related Web News
• Inside Microsoft's war against Google - BusinessWeek.com - MSNBC.com May. 10, 2008 nbc.com
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• Microsoft Walks May. 03, 2008 forbes.com
More related content Powered by Sphere
By Robert A. Guth
Word Count: 490 | Companies Featured in This Article: Microsoft, Yahoo, Google
Online advertisers next week will descend on Seattle seeking signs of how Microsoft Corp. will compete online without buying Yahoo Inc. They will have to wait a bit longer.
For two days starting Tuesday, Microsoft will hold an annual demonstration to online advertisers its tools and strategies for making them money on the Internet. In the past, the message of the event was that Microsoft was on track to be a viable competitor of Google Inc. Microsoft would detail how it planned to get there by investing in its own services for searching the Internet and brokering ads. Advertisers ...
RELATED ARTICLES FROM ACROSS THE WEB
Related Content may require a subscription | Subscribe Now -- Get 2 Weeks FREE
Related Articles from WSJ.com
• Yahoo's Shares Tumble As Microsoft Ends Pursuit May. 05, 2008
• Microsoft Appears to Lean Toward Hostile Yahoo Bid May. 02, 2008
• Microsoft Fails to Reach Yahoo Decision Apr. 30, 2008
• Yahoo Details Ad System Geared Toward Graphical Display Apr. 07, 2008
Related Web News
• Inside Microsoft's war against Google - BusinessWeek.com - MSNBC.com May. 10, 2008 nbc.com
• Collapse Yahoo talks leaves advertisers with less leverage May. 06, 2008 news.yahoo.com
• Microsoft's letter to Yahoo - May. 3, 2008 May. 04, 2008 money.cnn.com
• Microsoft Walks May. 03, 2008 forbes.com
More related content Powered by Sphere
EARN MONEY
Five Basics for Building a Solid Financial Future
Illustration by The New York Times
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By RON LIEBER
Published: May 17, 2008
The stark truth about managing our money these days is that we are mostly on our own.
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Illustration by The New York Times
Few employers want us around for 40 years, so our income is likely to have ups and downs and disappear altogether for brief periods between jobs. Saving for retirement is now mostly our responsibility, too. Health insurance, for those of us who have it and manage to keep it, requires increasingly large amounts of money out of our pockets. The list goes on and on.
At the same time, all sorts of individuals and institutions have smelled opportunity and lined up to peddle their wares, resulting in an explosion of credit cards, bank products and advisers of various stripes. Some of this is helpful because competition has led to lower costs. But in other instances — say, newfangled adjustable-rate mortgages — the result has been painful.
Complicating all of this is the housing downturn, which has affected the largest asset in many portfolios. Rising fuel and food prices along with tougher loan standards do not help.
Given the stakes, it is hard to avoid the persistent low-grade fear that we have made wrong choices or cannot find the right ones, even though they are out there somewhere.
“There’s no guarantee that the choices will be available, attractive or appropriate for everyone,” said Jacob S. Hacker, a political science professor at Yale University and author of “The Great Risk Shift,” which looked at how corporations and governments have pushed financial responsibility onto individuals.
So as I take on the Your Money column (and later this year, a companion personal finance site at nytimes.com), I want to devote some space to treating the subject in much the same way that this newspaper’s critics treat new films or restaurants. Important new offerings — whether mutual funds or a shopping search engine — will merit a review. And one by one, we will figure out what is worth using and what is best to ignore.
Until then, here are five basic guidelines. Think of them as the first principles of Your Money, guidance that can be useful in making just about any financial decision.
INVESTING IS SIMPLE The author Michael Pollan offered an elegant seven-word mantra in his best-selling book “In Defense of Food” that provides clarity amid the bounty of choices on supermarket shelves: “Eat food. Not too much. Mostly plants.”
Boiling down investing is a similar exercise: Index (mostly). Save a ton. Reallocate infrequently.
For most of us, investing in index mutual funds and similar vehicles — and sticking with them — is the hardest part of the mantra to accept. There are about 7,500 stocks on the three major exchanges in the United States and roughly 8,000 mutual funds. It would seem that with such an array of choices, we should be able to create portfolios that can outperform the market averages.
The fact is, however, besting the overall market in most investment classes is nearly impossible over long periods of time. Sure, it may be fun to try. But if you enjoy that sort of thing, do it with a tiny piece of your portfolio. And remember to call it what it actually is: gambling.
The rest of us should save as much as we can in a collection of low-cost index funds. Divide the money among stocks, bonds and other investments according to your time horizon and risk tolerance. Then adjust that allocation occasionally. Opinions vary on the frequency, but most experts agree that adjusting the mix more often than every 6 to 12 months is unnecessary and possibly costly.
IT STILL MAY BE WORTH PAYING FOR HELP Investing, however, is only one small part of your financial life. Mortgages, taxes, college savings, insurance and debt are a few of the hugely important tasks we have to figure out.
Perhaps the best thing a versatile professional — whether it is a financial planner, accountant, stockbroker or lawyer — does is provide discipline. It is difficult to get most of this stuff right. And to get it done at the right time. Professionals help make sure it all happens on schedule.
Most of us would rather avoid paying for help. Many financial planners charge 1 percent of a client’s assets annually for advice on anything and everything, including investing. So if you have $200,000 saved for retirement, that is $2,000 a year.
The best defense I have ever heard for this level of compensation comes from Roger Streit, a financial planner at Key Financial Solutions in Roseland, N.J. He says that only 1 percent of us are wise enough and regimented enough to manage our own financial affairs. The other 99 percent, meanwhile, could almost certainly improve their investment performance at least 1 percent, thus justifying the annual fee.
Sure, this sounds self-serving. But it is also probably true. For people without large portfolios or those who need help with something specific, planners affiliated with the Garrett Planning Network can help. All members are financial planners who agree to offer hourly rates.
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By RON LIEBER
Published: May 17, 2008
The stark truth about managing our money these days is that we are mostly on our own.
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Few employers want us around for 40 years, so our income is likely to have ups and downs and disappear altogether for brief periods between jobs. Saving for retirement is now mostly our responsibility, too. Health insurance, for those of us who have it and manage to keep it, requires increasingly large amounts of money out of our pockets. The list goes on and on.
At the same time, all sorts of individuals and institutions have smelled opportunity and lined up to peddle their wares, resulting in an explosion of credit cards, bank products and advisers of various stripes. Some of this is helpful because competition has led to lower costs. But in other instances — say, newfangled adjustable-rate mortgages — the result has been painful.
Complicating all of this is the housing downturn, which has affected the largest asset in many portfolios. Rising fuel and food prices along with tougher loan standards do not help.
Given the stakes, it is hard to avoid the persistent low-grade fear that we have made wrong choices or cannot find the right ones, even though they are out there somewhere.
“There’s no guarantee that the choices will be available, attractive or appropriate for everyone,” said Jacob S. Hacker, a political science professor at Yale University and author of “The Great Risk Shift,” which looked at how corporations and governments have pushed financial responsibility onto individuals.
So as I take on the Your Money column (and later this year, a companion personal finance site at nytimes.com), I want to devote some space to treating the subject in much the same way that this newspaper’s critics treat new films or restaurants. Important new offerings — whether mutual funds or a shopping search engine — will merit a review. And one by one, we will figure out what is worth using and what is best to ignore.
Until then, here are five basic guidelines. Think of them as the first principles of Your Money, guidance that can be useful in making just about any financial decision.
INVESTING IS SIMPLE The author Michael Pollan offered an elegant seven-word mantra in his best-selling book “In Defense of Food” that provides clarity amid the bounty of choices on supermarket shelves: “Eat food. Not too much. Mostly plants.”
Boiling down investing is a similar exercise: Index (mostly). Save a ton. Reallocate infrequently.
For most of us, investing in index mutual funds and similar vehicles — and sticking with them — is the hardest part of the mantra to accept. There are about 7,500 stocks on the three major exchanges in the United States and roughly 8,000 mutual funds. It would seem that with such an array of choices, we should be able to create portfolios that can outperform the market averages.
The fact is, however, besting the overall market in most investment classes is nearly impossible over long periods of time. Sure, it may be fun to try. But if you enjoy that sort of thing, do it with a tiny piece of your portfolio. And remember to call it what it actually is: gambling.
The rest of us should save as much as we can in a collection of low-cost index funds. Divide the money among stocks, bonds and other investments according to your time horizon and risk tolerance. Then adjust that allocation occasionally. Opinions vary on the frequency, but most experts agree that adjusting the mix more often than every 6 to 12 months is unnecessary and possibly costly.
IT STILL MAY BE WORTH PAYING FOR HELP Investing, however, is only one small part of your financial life. Mortgages, taxes, college savings, insurance and debt are a few of the hugely important tasks we have to figure out.
Perhaps the best thing a versatile professional — whether it is a financial planner, accountant, stockbroker or lawyer — does is provide discipline. It is difficult to get most of this stuff right. And to get it done at the right time. Professionals help make sure it all happens on schedule.
Most of us would rather avoid paying for help. Many financial planners charge 1 percent of a client’s assets annually for advice on anything and everything, including investing. So if you have $200,000 saved for retirement, that is $2,000 a year.
The best defense I have ever heard for this level of compensation comes from Roger Streit, a financial planner at Key Financial Solutions in Roseland, N.J. He says that only 1 percent of us are wise enough and regimented enough to manage our own financial affairs. The other 99 percent, meanwhile, could almost certainly improve their investment performance at least 1 percent, thus justifying the annual fee.
Sure, this sounds self-serving. But it is also probably true. For people without large portfolios or those who need help with something specific, planners affiliated with the Garrett Planning Network can help. All members are financial planners who agree to offer hourly rates.
1 2 Next Page »
More Articles in Business »Need to know more? 50% off home delivery of The Times.
Tips
To find reference information about the words used in this article, double-click on any word, phrase or name. A new window will open with a dictionary definition or encyclopedia entry.
Past Coverage
YOUR MONEY; Mortgage-Free, but Not Free From the Temptation to Borrow (May 3, 2008)SHORTCUTS; Pick a Planner Who Can Spell 'Fiduciary' (April 26, 2008)Muni Bonds, Safe With High Yields (April 21, 2008)STRATEGIES; The Odds for a Retirement Nest Egg, Recalculated (April 20, 2008)Related Searches
Personal Finances Add Alert
Stocks and Bonds Add Alert
Mortgages Add Alert
Finances Add Alert
More Articles in Business »
Ads by Google what's this?
Ultratech Concrete
We deliver Quality Concrete Get more info today
www.ultratechconcrete.com
MOST POPULAR - BUSINESS
E-Mailed Blogged
Your Money: Five Basics for Building a Solid Financial Future
For Wall Street Workers, Ax Falls Quietly
Germany Debates Subsidies for Solar Industry
High-Tech Japanese, Running Out of Engineers
Collateral Foreclosure Damage for Condo Owners
Robert Mondavi, 94, California Winemaker, Dies
DealBook: Carlyle to Buy Booz Allen’s Government Unit
In Siberia, Shopping Malls Are Sprouting All Over
This July 4, Fewer Bombs May Burst in Air
Robert Mondavi, Napa Wine Champion, Dies at 94
Go to Complete List »
Losing a Home, Then Losing All Out of Storage
Cablevision Offer Baffles Wall Street (Again)
Judge Says Countrywide Officers Must Face Suit by Shareholders
Condo Life: Foreclosures, Higher Fees and Mowing the Lawn
Cigarette Bill Treats Menthol With Leniency
When Should the Fed Crash the Party?
News Corp. Withdraws Its Bid for Newsday
Indians Bristle at U.S. Criticism on Food Prices
The Optimistic (and Long) View of Larry A. Silverstein
A Wish List for Fixing Wall Street
Go to Complete List »
nytimes.com/autos
Ready for its Hollywood close-up
Also in Autos:
In New York, parking is ever so easy How smart is smart? Fifty years of memorable cars
Advertisements
In a world of second opinions, get the facts first.
Which movies do the Critics recommend?
All the news that's fit to personalize.
Ads by Google what's this?
Ultratech Concrete
We deliver Quality Concrete Get more info today
www.ultratechconcrete.com
Podcast
Weekend Business
This week: The credit crisis spreads to student loans, the privileged life of the French business elite, and a greeting card creator's unconventional approach to business.
How to Subscribe This Week’s Podcast (mp3) Inside NYTimes.com
Fashion & Style » Books » Travel » Opinion » Television » Opinion »
On the Street: Saturday at the Market
A Memoir by J.F.K.’s Counselor
Frugal Traveler: The Grand Tour
Larry King Rumors Won’t Stop, and Nor Will He
Charles M. Blow: Skirting Appalachia
Home World U.S. N.Y. / Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Automobiles Back to Top
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