...Article Citation: Mayhew, L., & Smith, D. (2014). Personal Care Savings Bonds: A New Way of Saving Towards Social Care in Later Life. Geneva Papers on Risk & Insurance, 39(4), 668-692. doi:http://dx.doi.org/10.1057/gpp.2014.30 Main Issue of Article: The article “Personal Care Savings Bonds: A New Way of Saving Towards Social Care in Later Life” is an interesting take on a new way to pay for your elderly care after retirement. “Social care” is what most people would associate with long-term care. Personal Care Savings Bonds (PCSBs) go about it in a whole different way. The general idea is to blend a traditional savings bond with the lottery. Combining the practical long-term, safe, savings of a bond with the instant gratification of winning a large cash prize. A very large expenditure of people at the end-stages of life is the cost of their care. These costs often destroy personal savings and drain the assets a person wants to leave to their families all while still costing the government (tax payers) billions of dollars per year. PCSBs would hope to encourage more saving by individuals by introducing a lottery aspect. As with any lottery, a person would buy as many “tickets” as they would like. If their number is chosen, they would win a large cash prize. How PCBSs differ is that the bulk of the money from the ticket would go towards a guaranteed bond. As people buy more and more tickets, the amount in their PCSB account would grow. The administrators...
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...THE EFFECT OF SAVINGS RATE IN CANADA The impact of savings rate in an economic has become a very conflicting issue in research and among economist all over the world. This may be due to the importance of savings generally to the economic growth and development of any nation. However, the structure of every economy cannot be generalised by a particular economics’ variation because various countries have different social security and pension schemes, and different tax systems, all of which have an effect on disposable income. In addition, the age of a country’s population, the availability and ease of credit, the overall wealth, and cultural and social factors within a country all affect savings rates within a particular country. Therefore, this paper seeks to find the effect of savings in the Canadian economy. Household saving is defined as the difference between a household’s disposable incomes mainly wages received, revenue of the self-employed and net property income and its consumption (expenditures on goods and services). The household savings rate is calculated by dividing household savings by household disposable income. A negative savings rate indicates that a household spends more than it receives as regular income and finances some of the expenditure through credit (increasing debt), through gains arising from the sale of assets (financial or non-financial), or by running down cash and deposits. Since the early-to-mid-1990s, savings rates have been stable in some...
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...I. Elements of Business Environment II. Social factors affecting acceptance and rejection of an identified product. III. Texture IV. Texture is a crucial criterion for sensory acceptance and rejection. Certain textures do seem to be universally liked, crispness, for example—perhaps through its association with freshness. Of course, to some extent, we will always prefer textures that are compatible with our dentition, and thus we would not expect infants to like hard foods. Foods that are difficult to manipulate in the mouth—such as soggy foods—are commonly disliked, as are foods that require excessive saliva and effort to swallow, such as dry, tough meat. While food texture is often cited as a reason for rejecting food, for example raw oysters, it is likely that such preferences are also a function of our prior expectations for specific foods. V. Color VI. Food color is also undoubtedly a strong influence on acceptability, but again this is likely to reflect prior expectations. Whether we prefer white (U.S.) or yellow (U.K.) butter depends on what we have eaten in the past. Some colors have been thought to be inappropriate for food. The color blue, for instance, has been suggested as a candidate for a universally inappropriate food color—after all, very few foods are naturally blue. But recent marketing of brightly and "inappropriately" colored foods for children tends to undermine this notion, since the children appear receptive to unusual colors. Removing...
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...social choices. These may be restricted from improving in countries which are trying to improve their GDP, grow as an economy- developing countries for the following factors. Firstly, in developing countries there is often a savings gap, where by domestic saving is very hard. For example, in low income regions such as Africa with high levels of absolute poverty, these people us most if not all of their income to provide and support their families with none left over to save. This makes it impossible for them to generate sufficient funds for unexpected expenses. This then can damage their living standards further if homes, livestock and possessions are lost. This restriction to make free economic and social choices, would, in Todaros view, indicate a lack of economic development. Furthermore, without saving it restricts developing economies from business and capital investment as with no one saving there is no money to loan out to fund investment and expansion for businesses to improve their capital and thus improving the standard of living in impoverished areas through increased wages and greater access to life sustaining goods such as food and water. Capital investment is important as is our productivity with it as the Harrod-Domar model looks at savings and productivity e.g. capital to explain an economies growth. Finally, capital investment if vital for capital accumulation such as schools and office blocks. Developing countries don’t have much capital acquired due to the inability...
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...bubbles showcasing the features of the site. Similar to atour of the product.i) Highlight 3 key things about the service, effortless tracking, automatic categorization& instant saving offers.orb2) Highlight the 3 major features of the site with icons above them that open to sampleimages. Link to Aaron's finances with a picture of him below that indicating take a tour of our CEO's finances.c) Show savings counter either per last hour/day or overall depending on activity and size.TBD after initial alpha launch.d) Link to current offers available or allow someone to put in there, bank, credit card, cellphone, mortgage, etc.. and we can show related offers about there.e) Links on bottom of the page: in the news, about, financial tips, blog, SECURITY,f) Everyone has a cell phone. We can allow everyone to enter there cell phone plan(minutes, cost) and recommend alternatives. I want to have some way that people caninteract and benefit from the site immediately. Then they can email it to friends. Greatexample: http://personal.fidelity.com/planning/retirement/content/myPlan/index.shtml orhttp://www.creditcardclients.com/sa/?s=pbz511Action Marketing Plans:Todaya) Add email collection to homepage with prompt.i) "How do you currently manage your finances?"ii) "What kind of things would you want in a financial product?"iii) "Would you like more money while doing less?"Alpha Launch Strategya) Have satisfaction survey that is numeric and must return greater than 90% reviews. Thisis a numeric questionnaire...
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...Saving and Investment Macroeconomics Assignment 1 Matthew Killeen 8173969 Professor: Octavian Strimbu Assignment - Saving and Interest Question: Many commentators, including high officials of the bank of Canada, have blamed the spending habits of the Canadian public for high interest rates. Are these commentators right? “It’s not your salary that makes you rich, it’s your spending habits.” - Charles A. Jaffe. Throughout the past 25 years, Canadians household savings rate have dropped severely resulting in the economy’s interest rates to rise in order to maintain stability. Many economists believe the increase in interest rates is due to the rise in consumer spending habits. In our current economy there is an evident relation between the diminishing house hold savings and the increase in interest rates in the Canadian public. When it comes to consumer spending and saving there is a clear trade-off, choosing to save now and consume more later, results in giving up current consumption. Many Canadians lose a good amount of their income due to enforced tax laws, causing them to spend instead of save. I agree with the the statement that the spending habits of Canadian Public is to be blamed because of high interest rates. The relationship between Canadians spending habits and high interest rates can be expressed through the supply and demand of loanable funds and the highly recognized Gross Domestic Product Equation. Since Canadian spending habits...
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...Japan’s Economic Malaise Three simple models for why Japan’s economy will never grow again Michael Smitka Professor of Economics Washington and Lee University Lexington, VA 24450-0303 MSmitka@wlu.edu Version 2 May 23, 2003 ---------------The first version was entitled Three Simple Models for Undergraduate Economists and was prepared for the ASIANetwork Conference, Furman University, April 11-13, 2003. This paper differs primarily in the introduction and summary, and in the addition of more figures. The core analysis and most of the calculatioins remain the same. Smitka / The End of Growth v2 May 23, 2003 Page 1 I. Introduction I argue below that Japan’s economy will not grow again, and that (with hindsight) this should not be surprising. First, Japan has matured, to the point where its labor force is in decline. Such an economy is unlikely to grow in absolute terms. Second, that maturation occurred in a short span of time, resulting in large structural shifts in the economy. These strained the Japanese financial system past the breaking point, and have stymied efforts at macroeconomic stimulus. I believe, however, that the magnitude of these shifts would have overwhelmed any financial structure. I do not deny that Japan’s financial system exhibited large vulnerabilities, and its macroeconomic policy systematic failures. Again, I believe that these are beside the point. Third, the current structure of Japan’s economy is not sustainable; financial liabilities (bank...
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...Personal Savings A lot of businesses mostly often use the personal savings option when owners feel the business is considered small and the savings are available to use to help the company if needs be. Practically Tesco depend a lot on their savings as a source of finance to help them improve as a business. Retained Profits The retained profits are money that has already been made and set aside securely for a company like Tesco to reinvest into the company for beneficial reasons. Tesco could use the money marketing and advertising reasons, vehicle upgrades or technology improvements. For example Tesco could use the money to invest in advertising schemes to attract more customers showing how much cheaper it is to shop at Tesco compared to their competitors. Another could be that updating technology, which could be in the stores to upgrade the older version of self-servicing machines to make it an easier and quicker process for customers. Working Capital The working capital is used for a short-term basis and reserved for day to day expenses. The money is mainly used for stationery, salaries, rent, bills and invoice payments. Sales of Assets Sales of assets are surplus fixed assets for example buildings and vehicles for a business like Tesco that they might sell to generate more money into the company and invest into new areas. These decisions that organisation make to sell items that have been used or are still being used might affect the amount of existing products or services...
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...company will have to provide facilities for their customers, and have to exceed individual needs. This will delight the customers as they are being treated fairly and listening to their needs makes them feel they are bring prioritise. The equal opportunities won’t let the business to discriminate the customers due to age, gender, or religion. However, the disadvantage comes to the business because they will have to spend a lot of time exceeding individual needs, by providing facilities, such as, lifts and disabilities parking etc. Providing these kinds of facilities will cost them money, instead of saving money they will have to invest them in here. The sales of goods legislation will benefit the customers because the customers can return any products they don’t like after purchase. If the customers find any fault in the products they will be able to refund or exchange the products, the customers know that the business offer value for money; so this legislation will give...
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...The Growth Record of the Indian Economy, 1950-2008: A Story of Sustained Savings and Investment Rakesh Mohan* I deem it a real privilege to visit the Institute of Economic Growth to deliver the keynote address at this prestigious conference on growth and macroeconomic issues and challenges in India. I am particularly happy that this Conference is being organised by the Institute as a part of its Golden Jubilee celebrations. The Institute has established a long and creditable track record of contributing to economic research consistently over its 50 years history. Its research has greatly enriched the debate on the conduct and formulation of economic policy over the years. The theme selected for the conference is befitting in the present context as we grapple with issues and challenges for sustaining the elevated growth momentum that we have now achieved. This has assumed added contemporary significance in the wake of expected moderation in global growth due to a projected slowdown in the US and some other advanced economies. Whereas emerging markets, including India have so far not been greatly affected by the financial turbulence in advanced economies, the increasing global uncertainties need to be watched and guarded against appropriately. Although our growth process continues to be dominated by domestic factors, we need to recognise some changing global patterns, which could have implications for the macroeconomic prospects of the Indian economy. Accordingly, in my address...
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...entrepreneurial and managerial skills and technology. FDIs complement the domestic savings in financing the capital formation in the host country. FDIs contribute to the generation of output and employment. The foreign exchange inflow augments the supply of foreign exchange, which is often scarce in the developing countries. In most cases, however, the project being set up with FDI is dependent upon imported plant and machinery, and technology. The foreign exchange -inflow takes care of these import requirements, partially or fully. The direct cost of FDI to the host country comprises remittances made on account of dividends on the equity held abroad, interest on loans or suppliers' credits extended by the foreign investors, royalties and technical fees, for transfer of technology and other services provided by the foreign partner. Unlike foreign borrowings, servicing remittances, viz., dividends in the case of FDI begin after the project starts making profits. However, the servicing burden of FDI builds up very fast, and consumes considerable foreign exchange resources of the host country. Further, these remittances have the tendency to grow over time as the enterprise consolidates and prospers. Thus, the direct impact of FDIs on the host country includes both positive and negative aspects. The favourable impact is by way of generation of output and employment by complementing the domestic savings and bringing in the much-needed entrepreneurial skills and foreign exchange...
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...December 10, 2010 Week 7 Assignment: End of Chapter Questions 1. Chapter 41.2 2. Chapter 41.7 Chapter 41.2 Definition of Security Yes, I believe that the notes issued by Co-Op were “securities”. Co-op offered the promissory notes to both members and non-members on the basis that they were an “investment program,” and they were offered at an interest rate higher than that available on savings accounts at financial institutions. I believe this note falls under an “investment contract.” An investment contract is a flexible standard for defining a security. Under the Howey test, a security exists if an investor invests money in a common enterprise and expects to make a profit from the significant efforts of others. In this case, investors bought the promissory notes, which were payable on demand and the invested money went to support Co-Ops general business operations. The investors invested their money into Co-Op and expected to make profits based on the efforts of the promoters. By definition, the notes in this case fall under investment contracts, and therefore qualify as a security. Chapter 41.7 Hoodes wins. Insider trading occurs when a company employee or a company advisor used material nonpublic information to make a profit by trading in the securities of the company. In this case, it is stated that “Hoodes did not possess material nonpublic information about Sullair when he sold or purchased the securities of the company. In the Matter...
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... One of the major contributors to the same is expected to be the young working population of the country. The working population (15-59 years) of India today largely, approximately 57%, consists of the youth (15-34 years). According to official data, India's labour force, which was 472 million in 2006, was around 526 million in 2011 and is expected to be around 653 million in 2031. In just about 3 years, 25% of the world’s working population will be Indian. Human beings tend to have a higher proportion of consumption in their childhood days, whereas, they save the most in their working years. Thus, the dependency ratio has gone down with the rise in the average savings rate. The saving rate of India has been on an increase since 2003 and currently stands at 33% of the GDP of the nation. The greater savings are expected to fuel higher investment rates contributing to growth of the nation. While the above is the supply side of the story, there are contributions from the demand side as well. The shift in demographics with rise in youth in the nation, there has been a steady rise in disposable income in the hands of individuals. This has led to a change in lifestyle of the individuals leading to growth in demand for consumption of goods to meet more than the basic needs of the individuals. In order to cater to this demand, there has been a drastic rise in consumerism in the country. Today domestic as well as international companies are all flocking to meet the Indian consumer’s...
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...open a pizza parlor in your hometown. You plan to deliver your pizzas in a four mile radius from your shop. Your annual fixed expenses are $54,000. You charge $10 for a pizza and it costs you $6 to make and deliver each pizza. Do not calculate income taxes for the purpose of this exercise. Complete the following problems: 1.Using the contribution-margin approach, what is your break-even point in pizzas? 2.What is the contribution-margin ratio? 3.Compute the break-even sales ratio using the contribution-margin ratio in your calculations. 4.Compute the number of pizzas that must be sold to earn a net profit of $60,000. Part 3: Research Report Research and define the following: A.Define personal saving. Also, differentiate between voluntary and contractual savings. B.What is the European Union (EU)? How...
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... Michael Busler, Ph.D. MINICASE #2 30 Sept. 2014 Old Alfred Road Retirement Plan “Old” Alfred Road, age 70 is ready to retire and requires assessment of his fiscal status to do so. He is a widower that lives alone in a home that he has completely paid for that he wishes upon his death to bequeath to his daughter, together with any remaining assets. He wishes to preserve the savings account for unexpected expenses and emergencies, therefore he wishes to live off his investment interest which is expected to continue to grow at .09 and social security payments which will be indexed for inflation at .04. He expects to live an additional 20 years and would like his monthly spending to increase along with inflation therefore remain stable in today’s dollars. His balance sheet is as follows: Income: Initial Interest Per Month Per Year (one) Investments 180,000 .09 1,350 16,200 Savings 12,000 .05 50 600 Social Security 750 .04 750 9,000 Expenses: Per month Per Year (one) Assumed Rate of Inflation Basic Living Expenses 1500 ...
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