{balki Blog}
• • • • • • • • • • • • • • • •

While planning my current visit to India, I wanted to stay in touch with my US-based friends, colleagues and clients. So, I researched various options and narrowed down to Vonage V-Phone (mostly based on their ubiquitous ads). I picked one up at the local Best Buy and subscribed for the unlimited calling plan at Vonage.com. The enrollment process was straight forward and mostly uneventful. I got my new phone number almost instantly.

I made a few calls with the V-phone powered by Comcast broadband and the sound quality was impressive. I attributed this quality to the strong underlying broadband connection and was still skeptical about the quality in India (where reliable Internet connections are still a premium). I got my first chance to verify my skepticism during my layover in Frankfurt. I paid a nominal fee to get Internet connectivity from a T-mobile Hotspot in the airport terminal and made some calls to the US and India. The sound level was a little low but the quality was first-class.

Since landing in Hyderabad, I have been using the V-Phone on a 256kpbs DSL connection and am extremely pleased with the consistent sound and connection quality. I love the device itself and the seamless process of making free calls to the US and beyond.

Here is some obvious (and subtle) goodness in the device / service:

1. Completely divorced from any single computer system: Works like a charm on any computer as long as the computer is on a decent Internet connection (128kbps or better speeds recommended)

2. No footprint software: I just connect the USB dongle to any internet-enabled computer and the computer instantly recognizes the phone and is ready to make calls within 5-15 seconds. When I am done, I simply remove the device and there is no trace left on the system.

3. Great form factor: I like the orange color for the dongle and the blue LED light (that represents a successful connection). The included headset provides superior sound quality and the cable is long enough to allow me to move around comfortably without ripping out the dongle from the USB port.

4. Additional 256MB space on the USB drive: I do not carry the V-phone everywhere I go but can see how the additional space on the USB could come in pretty handy when you are on the go. The included key ring is cute and convenient.

5. Auto Load and Unload: This is my favorite feature. The soft phone keypad launches automatically when I insert the USB drive and disappears after I remove it. No worries about corrupting the drive or annoying pop-up warnings.

The only shortcoming I can think of is that there is no facility to import or leverage existing Outlook contact details. This is my biggest annoyance. I have enough devices already that force me to reenter my contact numbers and the V-phone is the worst offender of all. There is no interface to import contacts from anywhere. I really hope Vonage adds the import facility in their next version. Another minor annoyance is that the cap is really hard to remove from the device. I can understand their concern the cap might be lost, but there are other ways to secure it rather than making it impossible to pop it open.

If you travel international (or even domestic but worried about running over your free minutes on the cell phone), do try out the Vonage V-phone. I guarantee that you won’t be disappointed.

Technorati : V-Phone, VOIP, Vonage, hotspot
Del.icio.us : V-Phone, VOIP, Vonage, hotspot

Like I mentioned in a previous post, I still repent that I did not start investing sooner in life. A friend suggested that I blog about the basics of investing (especially about my personal experience) and so here it goes…

• Start by saving up enough money to cover all of your fixed expenses for at least 6 months. You do not want to be caught off-guard with an unexpected event like job-loss or extended illness. You can keep this money in a short-term CD, so it still earns interest while being flexible enough to withdraw in an emergency.
• Get started today! Really, you can get started with as little as 3000 dollars, by investing in a safe and reliable mutual fund like Vanguard Total Stock Market Index Fund
• Go through the “How to create your investment plan” on Vanguard’s site and understand your financial goals and the risks involved; remember to complete the most important part : Investor Questionnaire.
• Definitely enroll in your company’s 401-K plan. If your company matches your contribution, invest at least the minimum amount required to get the full employer match. If you are not doing that, you are just throwing away money.
• After investing in a low-risk, moderate-return mutual fund like Vanguard Total Stock Market Index Fund, switch to dollar-cost averaging. Dollar-cost averaging is an investment principle where you invest a fixed amount (say $100) in a stock or a mutual fund on a periodic basis (often monthly) instead of buying into the fund/stock at once. The theory is that, you reduce your exposure to risk by buying more shares of the same stock/fund when the price is low and fewer shares when the price is high. Here is a good primer about dollar-cost averaging: http://beginnersinvest.about.com/cs/newinvestors/a/041901a.htm. I had a pretty nice return on my various investments over the last 4 years using this simple technique.
• Compare the interest rates between your income generating sources (eg. CDs, money-market funds, bonds etc) and rates you pay for loans (mortgage, credit cards, car loans etc.). Pay-off the higher interest loans first using the money invested in the lowest income generating sources. For example, it just makes sense to pay off a 14.99% rate credit card using your money sitting in a short-term CD with a return of only 4-5%. Consider the income tax you pay on your income while calculating the rate difference. If you bought (or refinanced) your house in the last 4-5 years, it makes sense not to pay extra towards your mortgage, since the interest rates were in record low numbers during that time.
• If you are feeling ambitious and over-zealous (and if you have an outstanding credit score), you can apply for a low or 0% interest rate credit card and invest that money in a medium to long term CD. Interest rates on CDs are going up fast. Last time I checked, DCU was offering a 6% return on a 16-month CD. Make sure you have enough time to payoff the credit card balance at the end of the promotional rate term.
• Definitely go to a financial evaluation session offered by an Amerprise financial Advisor. The 1 to 2 hour session is totally worth the time (even after the aggressive sales pitch to sign up for their paid consultation). If you are in the Portland Metro area, I highly recommend the services of David Stanley
• Always reinvest your profits and dividends back into the same investment vehicle. To the right is a great example illustrating how you can earn an extra 270,000$, just by reinvesting dividends over a 24-year term.
• As you start growing your portfolio, remember to diversify based on asset type, investment methodology, the size of companies invested in, domestic/international funds etc. Many 401-K plans offer this diversification automatically in their so-called life-style portfolios based on your risk-level (obviously at a premium). Here’s my current asset allocation arrived at based on my risk-tolerance and financial goals:

• Also remember to re-balance your diversified portfolio periodically (I do it every quarter) to make sure you are invested at the right percentage you intended for. Again, many 401K plan providers and mutual fund companies offer this as an automatic service.

Feel free to add comments or email me if you specific questions on any of these tips or about my asset allocation style.

(DISCLAIMER: All content in this article is provided as-is and balki.net or its owner(s) are not responsible for any financial loss resulting from actions based on this advice.
Past performance is not necessarily a guide to future performance.
The investment and services mentioned on this website may not be suitable for you. If you have any doubts you should contact an independent financial advisor.The material on this website does not constitute advice and you should not rely on any material in this website to make (or refrain from making) any decision or take (or refrain from making) any action.
This website contains links to other websites which are not under the control of and are not maintained by balki.net. balki.net is not responsible for the content of those sites. We provided these links for your convenience only and do not necessarily endorse the material on these sites.)

Technorati : 401K, Investing, Vanguard, dollar-cost averaging, mutual funds, reinvestment
Del.icio.us : 401K, Investing, Vanguard, dollar-cost averaging, mutual funds, reinvestment

Yes! The “2GB 1st generation Black iPod Nano” arrived yesterday at the auspicious time of 11:35am yesterday! Exactly the one I wanted.

All this excitement might sound so 19th century, but you need to know the full story to appreciate the unrestrained fervor…

I already have a 2nd Generation iPod Color with Photo that I share with my wife. I am a great fan of the iPod + iTunes combo and an avid listener of several podcasts. But every time I am enthused about listening to some new podcast, my wife sneakily steals it away for her morning commute, even before I wake up. I have filed several petitions with her to acquire another iPod (a Nano this time, because I wanted to use it for my so-called workout sessions). But she rejected them all, claiming that we already have one and do not need to waste any more money on a music device (she did spend a cr*p-load of money on some “groceries”, “cleaning supplies” and “cat litter” though)

In the end, I did any honorable, law-abiding, well-bred citizen would do; I started a collection at work around a year ago specifically targeted to raise $199.99 within 2 months. Initial results were very encouraging (colleagues generously threw pennies and nickels into a pan I carried to all of the meetings) and the mug I used for the collections started filling up fast. But as people started “having kids”, “getting married” and “pursuing other jobs”, they completely forgot about this splendid cause. The last contribution to the mug was an “IOU $76.39″ note from Kevin Ombler!

So, I switched strategies and started looking for ways to get an iPod Nano for free and came across this promotion from TD Ameritrade: Fund 10K in an account and get an iPod Nano FREE. It was that simple! All I needed to do now was start a collection for $10,000. Just kidding! I was planning to divert some of my funds from an existing account to an investment portfolio anyway. This was a perfect opportunity.

Subsequently, 6 weeks of restless waiting and sleepless nights later, the iPod Nano Black 2GB arrived via UPS yesterday and am having a blast showing it off to everyone. (Also by sheer chance of luck, the stock market has done mightily over the last few weeks so I also made over 500$ on my original investment)

Oh yeah, I almost forgot… I added $5.45 to the collection at work, to buy a $6.95 clear hard case for the iPod. So, thank you, my beloved and generous colleagues in contributing towards my iPod collection. The fund did serve its grand purpose… sort of.

Technorati : Apple, Free iPod, Nano, eTrade
Del.icio.us : Apple, Free iPod, Nano, eTrade