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My current investment is as follow:

1.40 lakhs in mutual funs invested so far in mutual funds via SIPs
2.5 lakhs in gold
3.5 lakhs to relative with 1% interest
4.25 lakhs in NRE FD with interest rate of 3-4%
5.PPF- Rs.3.5 lakhs
6.MIS total Rs.5 lakhs

Currently investing one lakhs per month, Via SIP in the following mutual funds.
(10,000 X 10 funds = One lakhs per month)

1.Reliance Regular Saving Equity
2.Birla Sun life frontline Equity
3.Reliance Growth
4.HDFC Equity
5.HDFC Prudence
6.HDFC TOP-200
7.Birala Sunlife Mid cap fund
8.Birala Sunlife 95 Fund
9.IDFC Premier Equity Fund
10.Kotak-30 fund

Please guide me for the following.

1.About asset allocation
2.Selection of funds
3.Where I should invest my remaining saving of Rs. One lakhs per month? I don’t need any money for next 6 years.
4.For debt investment, as an NRI what options are best – MIP? Debt funds?

Regards and I am really poor at finance

ram

The way you have invested so far tells me that you are not poor at finance.My thoughts:

1.Invest around 25% of total assets in property.around 50-100 lacs.
2.reduce mutual fund allocation & liuidate the FD i.e. take out money for property investment.
3.pls have a few insurance poilices (endowment & money back) avoid ulip.May go for single premium policies.
4.Your fund ALLOCATION SHOULD BE:
A.property 35%
B.Mutual funds 25%
C.FD 10%
D.gold 10%
E.PPF 10%
F.cash 10%(incl loan to relative)

INVESTMENT OPTION ELECTION
The following investment allocation will apply to all new money deposited into an existing group annuity or trust contract unless otherwise
directed. Monies previously deposited to this contract will not be changed to reflect the selections below. NOTE: In the event of a contract
conversion from an existing individual annuity contract or from another group annuity contract or trust agreement, all money previously
deposited at Nationwide will be invested pursuant to the selections below. If you have any questions, please consult your plan administrator.
All allocations must be made in whole percentages.
I hereby authorize all FUTURE CONTRIBUTIONS be invested as follows:
Risk
Inquire
Code Risk
Inquire
Code
IV -Capital World Gr & Inc R3 .0% 388
IV -Growth Fund of America R3 .0% 662
V AllianceBrnstn IntlValFd-A .0% 578
I BOA-INDEXED FIXED .0% 8001
V Baron Growth Fund .0% 584
V BlkRk LgCap Val A .0% 1059
V Davis Opportunity Fd A .0% 473
IV Fid Adv Equ Incm Fnd Cls A .0% 282
V Franklin BalSheet Inv Fd A .0% 975
II Gartmore Govt Bond Fd A .0% 835
VI Gartmore InvDes Aggr SC .0% 970
II Gartmore InvDes Cons SC .0% 974
IV Gartmore InvDes Mod SC .0% 972
V Gartmore InvDes ModAggr SC .0% 971
III Gartmore InvDes ModCons SC .0% 973
V Gartmore MidCap Mkt Indx A .0% 968
IV Gartmore S&P 500 Index SC .0% 356
VI Gartmore Small Cap Index A .0% 967
II GdmnScs Govt Income Fd A .0% 771
IV JPM MidCap Value A .0% 611
V Janus Twenty Fnd .0% 325
III Oakmark Equity & Inc Fd II .0% 669
VI Oppnhmr Devl Markets Fd A .0% 844
II PIMCO TtlRetrn Fnd Cls A .0% 138
IV Pioneer High Yield Fd A .0% 650
TOTAL 100.0%
Additional funds are available to you after this enrollment process via www.nationwide.com
Risk Category Legend: VI – Very High, V – High, IV – Moderate, III – Low, II – Very Low, I – Lowest

This is a very common problem with 401ks. A bunch of options and not a lot of guidance. And I might add not a great bunch of options either.

I am giving you my opinion and it will most likely be different from other opinions. I don’t care if someone is in their 20s or older, I do not believe a retirement fund should be invested overly aggressively. You are in a marathon not a sprint. I also believe it should be mostly equity investments because the main thing you want to do over the next 45 years is stay ahead of inflation with your assets. Fixed income can not do that. As you reach about 55, the equation does change because you do not want to suffer a major market downturn just prior to having to begin using that retirement nest egg.

So the question, what is a good moderate asset allocation that can keep you ahead of inflation.

Oakmark Equity & Income is one. It is over 50% bonds currently but has a 5 year annual return of better than 13%, a 3 year annual return of better than 9%. It is what is known as a moderate allocation fund. 30% of your investments in that one would not be too much.

It is generally wise to allocate some of your assets to foreign investments. They have done well in the past and the economic situation in the U S is not great. If the Capital World Growth and Income is by American Funds, that is a fine choice. Maybe 30%.

Now I told you not to be too aggressive. Having said that I do recommend a little aggression. Baron Growth Fund fits the bill. It invests in smaller companies that show promise of growing. It is indeed risky so you do not want to put too much into it but it is a good idea to allocate some of your investments into smaller companies. Maybe 20%

The rest in the S&P 500 index fund should do it. 20%

Again this is my opinion but with this allocation you are not too aggresive, you are well diversified and the funds chosen have an excellent track record for the most part.

First, if the company is matching you are getting free money- so in any case max out your 401k if you can afford it no matter what you decide to do with it.
Second, what are your choices? I personally think that 20% in fixed income at your age is enough. S&P500 index is one good pick and you need some international– I like about 30% of your equity portion in international , at least, which will include about 10% emerging markets. You are one of the lucky ones, IMO, lots of time to grow your wealth and your question is a common one and a very good one. Also, check out other investment sites that are dedicated to answering questions like yours. Morningstar.com has a forum, rest you pay, but it is a good site. www.moneyrec.com is a site developed for your investment questions- free to new users.

Best of Luck, keep asking and keep learning!

Grace

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To see the rest of this interview with Rob Arnott, please visit: http://www.morningstar.com/cover/videocenter.aspx

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ER Non Elective Contributions

So I just assumed that "ER Non Elective Contributions" meant my allocations that falls under the Investment Performance" of my 401K.

ER is Employer Non Elective Contribution ( or the money their plan document stated was to be put aside for you) BUT had a required time line of years of service which you apparently didn’t serve for.

The non electable portion was what the plan stated would be put in regardless of what you Elected to put in and got a match for. You needed to be vested to get that money and you are lucky you got the matching money that went in with your elected amount. The company’s SPD or Summary Plan Description would have these specs. Request one from HR and they will provide it…it’s the law

Robert shares his insight about Asset Allocation pt.2. Go to http://www.IdiotRiches.com

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Property in North Cyprus is relatively low cost and is some 40% cheaper than equivalent property in Southern Cyprus, and around half the price of property in Spain.

The reason for this is the fact that Cyprus is a divided island. The South is referred to as the Republic of Cyprus, and is part of the EU. The South is Greek while the North is Turkish. The North is also referred to as the Turkish Republic of North Cyprus (TRNC), although only Turkey and a few other countries recognise the region as an independent state.

The UK Annan Plan of 2004 attempted to re-unite the island prior to the EU accession. The plan was put to referenda. The North voted in favour of the plan, while the South voted against it. Despite this, the Republic of Cyprus became a member of the EU in 2004.

The property issue therefore remains unresolved. During the communal strife of 1974, Greek Cypriots fled from the North to the South and abandoned their properties in the North. Conversely, Turkish Cypriots fled to the North from the South. Greek Cypriots claim that up to 80% of land in the North really belongs to them.

The government of North Cyprus has issued title deeds since 1980. Some of these title deeds refer to land which was either owned or occupied by Greek Cypriots prior to 1974. North Cyprus title deeds fall into several categories.

These are, firstly, internationally recognised pre 1974 title deeds issued to Turks, Britons etc. These title deeds are recognised by the Greek Republic of Cyprus and are therefore considered absolutely safe. The problem is that there is very little land of this type, in attractive locations, coming to market. Most land is either already built on or is in a relatively inaccessible location with little prospect of mains services.

Secondly, Exchange title deeds, which were issued by the North Cyprus government to Turkish Cypriot refugees who had abandoned land in the South. The allocation of this land was allegedly based on a quid pro quo arrangement. As many Turkish Cyprus had valuable holdings of land in Paphos, Larnaca and Limassol, this process does have credibility. The Turkish Cypriot then signed over his property in the south to the TRNC government to be held by them pending a negotiated resolution and settlement between the north and south Governments. The owner of such a title deed is allowed to sell the property it relates to.

Thirdly, Points Based title deeds which were awarded for military service and to widows of servicemen. In addition, title deeds were given to immigrants from mainland Turkey in an effort to encourage settlement in some of the more under-populated areas of North Cyprus, especially the Karpaz peninsula. The presence of settlers in what were predominantly Greek areas is an ongoing source of bitterness and rancour between the Greek and Turkish communities.

Under the provisions of the Annan Plan, any land which has the benefit of TRNC title deeds, and has been developed, is safe from restitution. This is true even if a Greek refugee has credible title deeds. Developed land is defined as land which has been improved by the construction of a property, as opposed to vacant or agricultural land. In these circumstances, the best a Greek refugee could hope for would be compensation. This could either be in terms of an offer of comparable land nearby, if any could be found, or a financial sum. Several informed commentators have made hypothetical calculations based on the Annan Plan formula, and for a typical building plot of 800 square metres, figures of between 4,000 to 6,000 pounds sterling have been suggested. The TRNC government has officially guaranteed all North Cyprus title deeds and has paid compensation in several well publicised cases.

What is decidedly unsafe, is land on which a derelict property stands. The likelihood is that this could be an abandoned Greek property. If so, it can be returned to the rightful owner, regardless of whether it has been renovated or not.

A buyer has traditionally been able to identify the status of North Cyprus title deeds. However, in recent years the North Cyprus Land Registry has made these distinctions less transparent. This is part of the political process to normalise the status of land in the TRNC.

The government of the Greek Republic of Cyprus promotes the hope that, one day, all dispossessed Greek Cypriots will return to their lands in the North. As time goes by, this hope becomes increasingly unrealistic. The Greeks were heartened by several rulings from the European Court of Human Rights (ECHR) in their favour.

However, in 2006 a landmark ruling was made in London when a UK Court refused an application by a Greek Cypriot for the return of his land and house which had been bought by Linda and David Orams of Brighton. The Orams were represented by Cherie Blair. In addition, the ECHR has effectively recognised the North Cyprus Property Commission as a legitimate local agency for the resolution of land disputes. This means that all future applications by Greeks to the ECHR will be referred to the TRNC Property Commission, with a right of appeal to the ECHR if the matter is not satisfactorily dealt with.

Prospective purchasers of North Cyprus property should be aware of the legal process of buying a property. All foreigners need to make an application to the Council of Ministers before any title deeds can be transferred into their name. Although this is a formality, it does take up to two years. During this time, a property will have been constructed for them, and they will have taken occupation. It is essential for a purchaser to be assured that the landowner is contractually obliged to transfer the land to them without further cost, and that the land remains free of mortgages or other charges until the title deeds are issued.

There is a sizeable British community in North Cyprus, but there are no brash tourist resorts or lager louts in the North. English is widely spoken, the cost of living is low, and fresh food is abundant. Many transactions, including property, are made in Sterling and there is a HSBC bank in Kyrenia and Famagusta.

The Greek community had a significant opportunity in 2004 to vote for a reunification of the island, but they rebuffed the proposal. With the benefit of hindsight, it is now clear that the Annan Plan was the best and possibly the last opportunity the Greeks would have to reunite the island and reclaim some of their lost land. The ongoing political stalemate and the marked increase in prosperity of TRNC would suggest that the partition of the island is set to continue.

Many overseas investors have already taken the view that no significant numbers of Greeks will ever return to the North and that the TRNC will remain independent of the Greek Republic of Cyprus. If this is the case, then North Cyprus offers attractive financial opportunities for investment as well as outstanding natural scenery and a relaxed, crime free lifestyle.

Leslie Hardy
http://www.articlesbase.com/non-fiction-articles/north-cyprus-property-is-it-safe-to-buy–134682.html