Personal Finance and Investing

In emerging markets it might be hard to find the money to start up a business. Could cloud computing be a game changer in these markets?

The emerging markets are definitely interesting to cloud developers and providers. Cloud computing is popular because of the low running costs and low need of knowledge, but for the emerging markets, there are still obstacles to overcome.

Advantages.

One of the main advantages with cloud computing is the low cost of implementation. You don’t necessarily need a server, but can instead use of one of the many cloud providers out there. Most small and medium businesses will find that the cloud has a solution to suit their needs. Furthermore this also means that you won’t have to pay for an expensive license. As we’ve seen in both webOS’s and dedicated cloud OS’s most of the software bundled with an OS is included in the monthly subscription or even free. Furthermore if developers need more resources cloud servers are easy scalable, due to the fact that many of the providers offer pay-as-you-go solutions.

Another advantage is, that the cloud can be set up anywhere with an internet access. Since it is possible to store everything in the cloud, you can practically access your systems from a bamboo hut in the jungle. Furthermore if you provide your employees with a cheap netbook, you actually don’t need to provide an expensive office. This also means that if you require a person with certain competences, but such a person isn’t available in your region, you can still collaborate on projects over vast distances. As we saw in LotusLive communication and collaboration isn’t a problem since these functions often are integrated in cloud interfaces.

Then what about finding clients? Well, since your business is already using the internet on a daily basis it is even easier for you to bring it online and by this making your services available to customers worldwide.

Basic issues.

To be productive in the cloud requires some sort of a computer device. One obvious example could be a chromebook, but they are still as expensive as an ordinary laptop. Netbooks are much cheaper and it’s easy to install a hybrid OS or use a webOS. Simmtronics have tried to make use of this and are now selling their 199$ netbook in emerging markets. This is of course positive since several organizations have stated that 200$ is the point where computers becomes widely available to the public in poor countries. It can still be done cheaper. Raspberry Pi, a UK-based nonprofit organization, are currently working on a computer of the size of a credit card. The expected price for their device is 25$. The cheapest monitor on Bestbuy.com is sold for 80$, and then you’ll need a keyboard and a mouse which is 20$. This way you’ll have a full set-up for 125$. Their system runs on Ubuntu, but another Linux distribution, TinyCore, could be configured to start up directly in the web browser.

In developing countries and also emerging markets power isn’t always stable. Since power is necessary for a computer to work, then this is definitely an obstacle. The solution to this problem could be solar power since many of the emerging markets are located in sunny locations.

Another problem is connectivity. In quite a few emerging markets the access to broadband connections is very limited. The reason why the advanced economies are so well connected is that they had a huge density of preexisting phone lines which were easy to convert in to broadband connections. But digging cables in to the ground is expensive. Wireless internet access is much more interesting for small and medium businesses in emerging markets. VSAT was one of the first solutions, but with low bandwidth and high pricing it isn’t a viable solution. Instead 3G and Wimax could be the solution for these countries, but of course wireless as well as wired connections requires investments.

Each year the World Economic Forum publishes a report on the global ICT (internet and communication technology) and measures the network readiness of each country. In this statistic education plays an important role. Education must be prioritized in emerging markets for them to evolve in to an advanced market. In relations to cloud computing the question is if they know about this great concept. Is information available to entrepreneurs in emerging markets?

Three ways to evolution.

The development in the countries which are emerging markets moves to a more urbanised society. Therefore cloud computing knowledge centers need to be established in the biggest cities in these countries. By doing this both providers, developers and users can benefit from the concept. IBM is a huge player in the cloud industry and seems to spend a lot of time on developing new markets. They could be a great provider of such a facility.

To reduce costs and improve connectivity, new businesses could start out in a shared office facility. That way the firms could share a wired broadband connection, which is often more stable and faster than a wireless connection. There are obvious advantages for governments supporting such a facility. If you make it easier to start up new companies, then even if only a small percentage of these grow bigger over the years, these companies create jobs, income, export and in the end an increase of the annual GDP.

Of course we can’t just invest in the main cities. If a country’s leading communication providers don’t continuously work to expand the country’s communication infrastructure, the government has to step in. It must not act as a service provider itself though. It would be far better to present the providers with a reward as for example an exemption of taxes on new network areas within a limited period of time.

No Comments yet »

How can you save for the cost of higher education? Here are some ideas that can help regardless of how close you are to that first tuition payment.

Based on the mathematics of compound interest, we should start our college savings and retirement funds the day we start our first job. There are more than a few obstacles in the way; food, shelter, paying off your own college loans and raising children.

The best approach is to start a plan as soon as possible. Part of the plan includes having a set amount deducted from your paycheck for the purpose of college funding. If you don’t see it, you won’t spend it and a great place for your college fund is a 529 College Savings Plan.

The 529 College Savings Plan provides key advantages in savings. First, the earnings are allowed to accumulate tax-free. Second and more important, there is a 10% tax penalty on the earnings if the funds are used for purposes other qualified expenses. I like the penalty for two reasons, it is more difficult to withdraw money when you have to pay a penalty and even harder to tell the kids your new boat was once their college fund.

The 529 Plan can be funded with up to $60,000 per beneficiary per year, the beneficiary can be changed and the account is controlled by the parents. For financial aid purposes the account is considered an asset of the parents and not the child which provides a lower weighting in the financial aid process. I highly recommend that every parent and child research and understand the financial aid process.

The 529 Plan is also an excellent estate planning option for the grandparents since they can use the annual gift exclusion of $12,000 (in 2007) to fund a non-taxable gift or can elect to fund up to $60,000 with a special five-year election. A couple can fund twice these amounts. For most of us, an automatic deduction of a much lower amount is the most likely mode of funding.

Other savings options include the use of the Coverdell Education Savings Account (ESA). Annual contributions may not exceed $2,000 per beneficiary per year, the beneficiary must be under the age of eighteen and the taxpayer’s ability to fund a Coverdell ESA is phased out. Like the 529 Plan, the earnings are tax-deferred and are not taxable if they are used for qualified expenses.

U.S. savings bonds issued after December 31, 1989 may qualify for interest exclusion if they are in the name of the purchaser who is over the age of 24 and used to pay for the qualified higher educational expenses of the taxpayer, their spouse or dependents. The interest exclusion is phased out for at higher income levels.

Just to add another level of complexity, qualified expenses for all three savings options are different as are the phase limits for the Coverdell ESA and the interest exclusion on U.S. savings bonds.

My preference is the 529 Plan as it provides greater flexibility in terms of who can fund the accounts and the higher funding amount. The 529 Plans are offered by several low cost investment managers. Keep in mind that a key element in increasing your investment returns is to keep fees and expenses to a minimum.

Once the children start their higher education you may qualify for a few important tax breaks. Naturally they are limited based on income.

There is the HOPE Credit. Individual tax payers are allowed to claim a credit against their Federal income taxes up to $1,650 in 2007 for the first two years of a student’s post-secondary education or certificate program at an eligible institution. The student must also be enrolled on at least a half-time basis. The credit amount and income limitations are indexed for inflation.

The HOPE Credit is on a per-student basis. If you have more than one child in college even the IRS feels sorry for you; however, the HOPE Credit is phased out for taxpayers with a modified adjusted gross income between $40,000 and $50,000 ($80,000 and $100,000 for joint returns).

The Lifetime Learning Credit is available to students enrolled in an eligible education institute. Enrollment can be less than half-time as long as the student is taking undergraduate or graduate classes to acquire or improve job skills. The Lifetime Learning Credit can be used to reduce your Federal income taxes by up to $2,000. The credit is based on 20% of the qualified tuition and fees paid during the year. The Lifetime Learning Credit is phased out using the same limits as the HOPE Credit.

The credits cannot be combined. You cannot use the HOPE Credit and the Lifetime Learning Credit for the same child in the same year. You can use the HOPE Credit for one child and the Lifetime Learning Credit for different children in the same year.

If you have eligible work-related educational expenses and include the expenses in your itemized deductions you cannot use the Lifetime Learning Credit for those expenses.

Student loan interest is another potential tax savings. Rather than being a tax credit, up to $2,500 student loan interest is deductible from taxable income. As with other deductions, this one is also subject to phase out.

If the tax aspects seem overwhelming, your tax preparer or several of the tax software packages will determine how to get the most from the various credits and when the credits are phased out.

My final recommendation is to get a jump start on saving by understanding your options, what is available for tax benefits and to research the financial aid process. There are several excellent sources of information on the financial aid process. I particularly like the services of Octameron.Com. They have several inexpensive books that will greatly help you understand both the admissions and financial aid process.

No Comments yet »

Planning for college is one of the most important steps you can take toward success as a student. You can create a personal road map to your goals in higher education . . . and it’s easy to do!

Here is a practical 8 step plan:

Get a copy of the college catalog for your school. These annual guides list all course offerings and are usually available at the campus bookstore. The annual college catalog also lists all degree programs and the course requirements for each. Look inside the college catalog and find the requirements for your selected major or course of study. Make sure to take into account any general education, prerequisites or special requirements mentioned in the catalog. Select a class to fulfill each requirement and write it on a list. If possible, choose an alternate class that will also fulfill the requirement. Planning for flexibility will allow you to maintain momentum toward obtaining your degree. You will inevitably face obstacles in the form of full classes, inconvenient class times and the occasional professor you’d rather not be alone with in a dark office. Write the number of quarters or semesters you intend to attend college before completing your requirements. Note your intended graduation date. It’s best to choose an ideal graduation date and another later date in case it takes longer to fulfill the degree requirements than you had originally anticipated. For example, you may elect to drop a class or take a leave of absence from your studies for personal reasons. Ask a college counselor how many quarters or semesters you are allowed to attend before school policy indicates that you must graduate or leave. Many schools limit the amount of units you can accumulate before you must declare the intent to graduate. Divide the number of semesters from step four by the number of courses you must complete in order to graduate. This number will indicate how many classes you must take each term to graduate by your predetermined graduation date. You may be required to enroll in a minimum amount of course units in order to be considered a full-time student. Full-time status may be important to students who seek federal and state financial aid. Speak to a financial aid counselor at the college you will attend and check the Free Application For Federal Student Aid Eligibility FAQ for help with financial aid planning. Write a heading for each semester (i.e. Fall 2008, Spring 2009, etc.) on a new list. Using the number from step five, list that number of classes from your list under each heading. Make certain that you select classes that you would like to take at the same time. For example, you may want to take an elective at the same time that you take a more intense class to balance your course load. You may also consider enrolling in courses with similar subject matter during the same term in order to take advantage of cross referenced knowledge. Two term papers for similar History courses can become one term paper, reedited to target the objective of each of two or more related classes. Make an appointment with a college counselor at your school and have him or her review you plan. They can make helpful suggestions or guide you toward resources related to your studies. Be flexible. Sometimes a class won’t be available, you may be able to speed up your plan or you may fall behind. You may even find that your interests change completely and you need to adjust or create an entirely new plan. With your plan you will be able to make steady measurable progress and achieve your goal!

No Comments yet »

In every sport it’s important for players to be somewhat agile. In football it’s very important for most of the players to be very agile. For this reason football players are often required to complete football agility drills in practice.

You’ve probably seen football players running through tires. You also may have seen football players running over blocks and around other obstacles. These are all football agility drills that help a player improve his balance and agility.

But there are many other drills that football players can do in practice as well. These drills are effective whether they are being used for youth football agility drills or professional football agility drills.

Part of being agile is being able to start and stop quickly. Since football is played in spurts of only a few seconds at a time, being able to explode into motion is very important.

Players can be helped with starting and stopping simply by running short sprints in practice everyday. Not only will this help them with their agility but it will also help them with their physical conditioning.

A more specific running drill that also helps with conditioning and agility are shuttle runs. Shuttle runs require a player to run a certain distance, turn and run back, and then run another longer distance. The distance keeps getting longer and each time the player must run back to the place where he began.

For example, the player has to run 10 yards, go back, run 20 yards, and then go back, then 30 yards, etc. Not only does this help improve a player’s stamina and endurance but it also helps the player learn to take-off and explode into action.

Another one of the great football agility drill involves working one-on-one with a player. So it can’t be done with the team as a whole during practice. For this drill all you need is a step and a weighted ball. You may want to use a football instead of a weighted ball, that’s good too.

First, have the player step-up onto the step and balance himself on just one leg. Then have him slowly return back to the ground. He should do 2 sets of 20 step-ups for each leg. His movements should be slow and deliberate and his body should be under control at all times.

Once the player has mastered stepping-up, begin throwing him a weighted ball while he is standing on the step (with one leg). The player should catch the ball and then throw it back without losing his balance. This should be done in 2 sets of 20. Remember, you can also use a football for this drill instead of a weighted ball.

Having solid agility is a must for football players. That’s why it’s important for football players to perform football agility drills in practice. These drills should help the players improve their ability to burst into action, keep their balance, and change directions. All of these abilities are needed on the football field for just about every play.

No Comments yet »

Possibly related posts: (automatically generated)

• Related posts on Best Life Insurance Policies
• LIFE INSURANCE
• Again No Protection

• Related posts on Insurance Coverage
• Car Repair & Maintenance : How to Change a Hubcap | Garage Keepers …
• Cheap No Fault Auto Insurance « Is It Safe to Buy Auto Insurance …
• 3 Tips on How to Find Affordable Health Insurance

• Related posts on Obstacles
• Ugly sticker on 98 Avalon visors « Discussions related to Toyota …
• sort all your goals and select the top 5 « Pro-Sneaker.com
• My Experience of Not Having Health Insurance for Many Years

No Comments yet »