Franklin & Marshall Women's Lacrosse Coaches' Press Release re: Hazing Incident

Lauren Paul Fired; Caitlin Powderly and Lidia Sanza Placed on Indefinite Leave in F & M Lacrosse Scandal

John A. Gallagher, Esquire has been retained to represent these coaches.  Here is a Press Release on behalf of the coaches:

Neither F &M woman’s lacrosse Head Coach Lauren Paul, nor her Assistant Coaches, Caitlin  Powderly and Lidia Sanza, had knowledge of or involvement in the March 11, 2011 incident giving rise to their present circumstances, and do not condone hazing in any form.  If they had known that hazing occurred in March 2011, if it occurred, they would have taken corrective action. 

The facts of this matter are important for the public to understand.

In early February 2012, Coach Paul made cuts from her team in the ordinary course.  Soon after, the parents of one of the cut players registered a complaint about a student-led event in March 2011, eleven months prior.  This incident, about which no details have been released to Ms. Paul or her assistants, has since been categorized as “hazing.”  It is unknown whether the parents in question made any sort of threats to the college.

After hearing of the March 2011 event in mid-February 2012, the administration took virtually no steps to investigate same until April 6th, 2012.  It is unknown what action the complaining parents, or their lawyer, took during this period of inactivity.

F&M thereafter began an “investigation” wherein the student-athletes were instructed not to speak with their parents, and told they did not need to seek representation of any kind.  This investigation was procedurally flawed in many significant respects. 

Although F & M fired Ms. Paul, placed her assistants on leave of absence (a particularly curious decision where Ms. Sanza is concerned, since she wasn’t even coaching F & M in March 2011) and suspended 11 student athletes from the team on April 17, the investigation was on that date still ongoing.

It appears that F & M elected to release news of these sanctions to the public on April 18, 2012.  It is unknown if this release was made solely at the election of F & M, or to satisfy the demands of third-parties. The initial press releases were accompanied by statements from F & M that sought to blame Ms. Paul, and her assistants, for the March 2011 events.

The college acknowledged in writing that, as of Friday, April 20, 2012, the investigation was still ongoing. Why F & M chose to fire Ms. Paul, and to zealously publish the news of such firing, while its investigation was still ongoing, is a matter that only F & M and its lawyers can answer.

Earlier this week, and having completed its investigation, F & M decided to invite the 11 suspended players back on to the team.  None of the suspended players were suspended or expelled from the college. Interestingly, the suspended players have rejected the college’s invitation to rejoin the team. 

Ms. Paul understands that F & M takes its Student Code of Conduct very seriously, and that it enforces same vigorously when students have engaged in violations that threaten the mental or physical safety of its students.  The decision to reinstate the suspended players, coupled with the absence of any meaningful student discipline being pursued or carried out, particularly when viewed through the prism of F & M’s stated principles where student well-being is concerned, clearly suggest that whatever occurred in March 2011 did not constitute “hazing.”

Ms. Paul's goal moving forward is to have a fulfilling and rewarding career. Ms. Powderly and Ms. Sanza share that ideal. While the coaches believe the actions taken against them were rash and wholly unwarranted, they understand that F & M, having published the reports concerning same, is unlikely to change its mind at this time.  Consequently, they are presently considering their vocational and legal options. 

Join the Petition Seeking Reinstatement of Coach Lauren Paul

There is a strong grass roots campaign advocating the rescission of the termination of Ms. Paul, and her reinstatement as F & M Head Coach.  Please Click Here to sign a Petition supporting this important cause in the name of what is just and right.

Footnote: The remaining members of the F & M lacrosse team elected on Friday April 27 not to play in the Centennial Conference tournament, thereby foregoing a near surefire NCAAA tournament bid for the 10th ranked Diplomats. These student athletes are a credit to themselves, their parents and families, and to Coach Paul and her staff.
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Not taking risk is THE greatest financial risk...


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 



Not taking "RISK" is the greatest financial risk...




Surprising!!! ???


But that's the reality. During our times, the greatest financial risk in one's life is not taking risk... Our generation is going through roller coaster lives. We are in an era of reasonably high income, higher lifestyles, higher aspirations, higher costs, lack of time, dwindling investment choices etc.,


We do take risks in life, careers, jobs but when it comes to investing, we tend to shy away from taking risks. And that will lead us to a definite dead end...


Let's look at the reasons why "not taking risk is the greatest risk in our times"...




Sky rocketing cost of living:




While our incomes are running, costs of living are sprinting... Let's consider few numbers...


  • If you were to spend Rs 7.5 lacs for a professional degree for your child now, can you guess what could it cost after 15 years???



Rs 62 lacs



  • If you were to spend Rs 20 lacs for a foreign degree now, can you imagine what could it cost after 15 years???

Rs 1.63 Crores



  • If you were to spend Rs 15 lacs for a wedding now, can you guess what could it cost after 15 years???

Rs. 1.23 Crores

  • Ok, let's see how much would your idli vada coffee breakfast cost you... If you were to spend Rs 60 now, after 20 years...
Rs 990

  • If you were to retire now and you need Rs 50 lacs as retirement fund, after 20 years...

Rs 8 Crores

  • If your monthly expenses are Rs 25,000 now , the same budget after 20 years would be...

Rs 4.10 Lacs


These numbers give very strong indications about the future costs for sure... These numbers should make one realize that not taking risk is the greatest financial risk....


Let's take the case of retirement:
  • Let's assume I need 8 crores for retirement fund after 20 years based on the current estimate of Rs 50 lacs... 
  • Let's also assume I deposit Rs 50 lacs in an FD which gives me an average annual return of 9% for 20 years.
After 20 years...

What I need is

Rs 8 Crores

But what I got is

Rs 2.80 Crores.

with the investment @ 9% returns...


The gap between what I need and what I got is too huge to bridge... And that's the cost of not taking enough risks while investing...


Remember, we are living in a globalized economy, wherein risk taking is a key ingredient for successful businesses. Investing in the stocks of such businesses can only add value to our wealth creation efforts...


Before closing, a recap of the story of five friends...



Story of Five friends:


Mr. Lazy
Mr. Fun
Mr. Cautious
Mr. Calculator
Mr. Smart


All of them put Rs 1 lac at the same time and after 20 years lets see how they have done?


Mr Lazy             @ 6%    - Rs 3.21 lacs  
Mr Fun              @ 9%    - Rs 5.61 lacs 
Mr Cautious       @ 12%  - Rs 9.65 lacs 
Mr Calculator     @ 15%  - Rs 16.36 lacs
Mr Smart           @ 18%  - Rs 27.40 lacs


If you observe, the difference between each one is just 3% in returns, but look at the difference in returns over the period of time... And that's the power of compounding for you my friend... It works very silently... 



Mr. Smart took risks and he was rewarded by the power of compounding...


Remember,


Not taking risk is the greatest financial risk




(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 
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What is a Necessitous and Compelling Reason for Quitting my Job Under Pennsylvania Unemployment Law?

YOU MAY BE ELIGIBLE FOR UNEMPLOYMENT IN PA IF YOU QUIT YOUR JOB

If you quit your job, you may be eligible for PA unemployment benefits if you had a necessitous and compelling reason to quit.  Here are some of the most common examples of a necessitous and compelling reason to quit your job:
 
1) demotion (typically with resultant significant reduction in earnings);

2) transfer to a different job location that creates a hardship (likely the job will have to be more than 50 miles away);

3) significant change in work hours resulting in significant hardship (think: working overnights, or having to get new child care);

4) significant (negative) change in compensation (think:  more than 25%);

5) significant change in job responsibilities (must be a demeaning-type change);

6) a geographic change by your spouse for a new job that requires you to quit so that you may move along with him/her;

7) a job offer from a different employer (you must have the offer in hand before you quit your job);
and,

8) persistent and significant mistreatment by a boss or employee that continues despite you bringing the issue to the attention of management (this is the most common reason for quitting -most people refer to this as a "hostile work environment;" it is also the most difficult situation to deal with when seeking unemployment).

Other questions concerning PA Unemployment Law?  Click Here to jump to our answers to your FAQs.
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I Quit my Old Job and Now I was Laid Off From my New Job - am I Eligible For Unemployment in Pennsylvania?

Yes, in some cases.

In order to evaluate this situation, one must understand several terms and principles common to PA unemployment law.

First, if you had a job offer in hand from the new prospective employer when you quit your job, then you are deemed to have quit with anecessitous and compelling reason and would be eligible for unemployment benefits.

If you did not have an offer of employmenmt from the new employer in hand when you quit, you may need to prove that you had necessitous and compelling reason to quit the old job UNLESS you earned 6x your weekly benefit rate from your new job before you were laid off from your new job.

Under either of the above scenarios, your old employer may try to fight your claim by filing for Relief From Charges.  To understand whether you need to fight that, you need to understand how your  Base Year earnings are calculated.

In short order, though, if  you earned more than 6x your weekly benefit rate from your new job, you need not worry about fighting the request for Relief from Charges filed by your old employer.  If you did not, then you will have to fight your old employer by attending an Unemployment Hearing and proving you had a necessitous and compelling reason for quitting your old job.

More Questions about Pennsylvania Unemployment ?aw? Click Here to read our answers to your most FAQs.
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I Was Fired From My Old Employer and Now My New Employer Has Laid Me Off - Can I Get Pennsylvania Unemployment Benefits?

Yes, in some cases.

For example, if you were not fired from willful misconduct from your old job, you will have no problem getting benefits (your old employer may try to fight your claim by filing for Relief From Charges, so you may have to prove that you were not fired for willful misconduct in order to become eligible).

Or, even if you were fired for willful misconduct from your old job, you can get benefits as a result of your layoff if, while employed by your new employer, you earned 6x your weekly benefit rate or more.

Example:  Your Base Year earnings were $55,000, so you are entitled to benefits of $573 a week if you are eligible.  While employed with your new employer, you earned $3,438 (i.e. 6x your weekly benefit rate).  So, even though you were fired for willful misconduct from your old employer, you are still entitled to unemployment.

Under either of the above scenarios, your old employer will file for Relief From Charges. 

If you earned less than 6x your weekly benefit rate from your new employer, you will have to go to an Unemployment Hearing and prove you did not engage in willful misconduct.

If, on the other hand, you earned more than 6x your weekly benefit rate from your new employer, you need not worry about your old employer, and need not go to the Hearing.

More Questions about Pennsylvania Unemployment ?aw?  Click Here to read our answers to your most FAQs.
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I Quit My Old Job to Take a New Job and Then I Got Laid Off - Can I Get Unemployment in Pennsylvania?

Yes.  If you had the job offer from the new job in hand when you quit your old job, you can.

You need to understand, though, that your old job may fight your claim by filing for Relief From Charges if it os chargeable for your benefits as your sole or primary Base Year employer.
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Power of Compounding works on your money.. But do you?


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 



Power of Compounding works on your money... But do you?



Power of compounding works like a magic... Of course, only if you allow it to work... Want to look at some numbers??

Story of three friends:

Mr. Smart
Mr. Responsible
Mr. Fun


Generally its assumed that people take higher risks in the early stages of life and reduce the risk levels as they grow old. Same is assumed here...


Each invest Rs 1 lac in the following ways:


Mr. Smart           - at the age of 30 @ 18% PA
Mr. Responsible - at the age of 35 @ 15% PA
Mr. Fun              - at the age of 40 @ 12% PA


At the age 50, lets see how they have done....



  • Mr Smart invested Rs 1 lac at the age 30 @ 18% PA and accumulated a mind boggling,



Rs 27.40 Lacs


  • Mr Responsible invested Rs 1 lac at the age 35 @ 15% PA and accumulated just about



Rs 8.14 Lacs


  • Mr Fun invested Rs 1 lac at the age 40 @ 12% PA and accumulated a meager



Rs 3.11 Lacs



The winner was Mr. Smart because of 3 important reasons:


1. He did not just save..
2. He started investing early on..
3. He got efficient returns..


And look at the difference in the numbers each one made...And it was possible only because of the power of compounding which worked very well in Mr. Smart's favour... And of course he did his home work to take the advantage of the POC..


For the other two, their cases were double edged swords... They not only started late and but also invested in low yields...Though the difference in % returns is not very big, but the difference is too huge in actual returns because of starting early and efficiently...

Moral of the story:


  • It's wise to start saving...
  • It's wiser to start investing early on..
  • It's wisest to invest investing early on with efficient returns...

Only then the power of compounding will be extremely beneficial to your money... An efficient financial planner will be able to guide you to realize the power of compounding for your investments...


If you have missed it...




(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 

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Saving Vs Investing...



(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 




Savings is not equal to Investing:




Keeping it in the bank savings a/c @ 6% = Savings


Investing the same intelligently to earn 15% = Investing...


That's the difference...


In actual numbers,


In the first case, 1 lac kept in the bank a/c @ 6% gets you Rs 3.21 lacs after 20 years.


In the second case, 1 lac invested @ 15% gets you Rs 16.36 lacs after 20 years.


Which is your choice? Saving or Investing???


And remember, its not an easy task to achieve 15% returns PA given the constraints you would face. Hence the role of a wealth manager becomes important to make your money work hard...


Remember, Saving is not equal to Investing...



(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 



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Blog achieves 10,000 visitors milestone...


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 


The blog achieves 10,000 visitors milestone... :-)








Thank you visitors and readers...


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 

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Invest in yourself...


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 



Investing in yourself:



Financial planning is all about YOU.... Investing in yourself. 


YOUR health protection is important:


Health cover is very important for professionals like you and me... Yes, most of us are covered by our companies. But think about the times when there is a change in job, or change in career itself or during the retirement... Our current lifestyles definitely pose great challenge on our health. Having a good personal health cover will provide you the sense of reassurance during times of uncertainty.. Also this gives you a chance to save tax under Section 80D.


YOUR life protection is important:




The life is your's... Take control of it. Life insurance is a great tool to value the invaluable human lives. It's very true that nothing can replace a human life. But life insurance provides financial cover to one's family on his/her absence. Thumb rule is a person should have a life 5 times of his/her annual income, which means on his/her absence the family can sustain atleast for the next 5 years... Your life is important.


YOUR money is important:




You work really hard for your money... Make your money work equally hard for you as well. Because it's your money. Realize the power of compounding which can work wonders for your financial future. 


http://mymoneyavenues.blogspot.in/2012/04/one-compelling-reason-to-manage-your.html


YOUR family's future is paramount:




Your family's financial future rests on your shoulders. Job, career, protection, wealth creation all revolves around your family. Ensure your family's financial future through proper financial planning. Because it's your family...


YOUR goals are important:




You are what your goals are... It can be on your career, children's future, retirement planning etc., Though life is quite dynamic these days, its very important to identify your goals for your future... Which can then be supported by a good financial plan. Because, it's your goals...


YOUR time is important:




Exactly, time is precious. Waste is wisely... We just don't have unlimited time at our disposal... We need live today, save for tomorrow, invest for future... Our and our family's goals and aspirations rest on us and we need to make most of it. Get a financial plan done for you by financial planner and waste your time wisely...


YOU are very unique:




You are a unique person; what is appropriate for you may not be the same for your friend or colleague... You are unique because of your dreams, goals, aspirations, future plans, priorities are unique only to you. Financial planning cannot be "one size fits all"... Financial plans are custom made for each and every individual...


That's why I said, that financial planning is all about investing in yourself...


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 



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What is My Base Year Under Pennsylvania's Unemployment Law?

How Long Do I Have to Work For a Company to Get Unemployment in Pennsylvania?

At least 13 weeks, and maybe more depending upon how much you earn each week.  Allow me to explain via a relatively common hypothetical.

Assume that you worked for a Company X for 3 years at a salary of $40,000 until your employment ended on January 1, 2012. 

On April 1, 2012, you find a new job with Company Y paying you w-2 wages in the amount of $500 per week. Unfortunately, Company Y lets you go as part of a lay off on June 30, 2012 (i.e. 12 weeks after you started with Company Y).

You then apply for unemployment in connection with your involuntary lay off from Company Y. 

Under this scenario, and based upon the way your Base Year of earnings is calculated, you have not earned enoungh from Company Y to entitle you to unemployment benefits, because it did not pay you any wages during your Base Year (which, as discussed below, is the last 3 quarters of 2011, and first quarter of 2011, during which time you did not work for Company Y). 

How Does Pennsylvania Unemployment Calculate My Base Year of Wages?

Your Base Year is the first 4 of the last 5 quarters that immediately preceded the date of your separation from your most recent employment. In this scenario, your most recent job ended June 30, 2012 so, in calculating your Base Year earnings, one skips your most recent quarter of earnings (i.e. do not take into account any of your earnings from Company Y, all of which were made during the second quarter of 2012 - i.e. in the most recent of the 5 quarters immediatly preceding your claim).  So, if you had not during the last 5 quarters worked for anyone other than Company Y, then you did not earn enough to qualify for unemployment.

However, you did work for another employer during the relevant time operiod - Company X.  Therefore, even though Company Y may not be charged for your benefits, you may still be eligible for benefits chargeable to Company X or from the unemployment common fund.

Click Here to find out more about how this may work.

Additional questions about how Pennsylvania unemployment works?  Click Here to jump to our soup to nuts answers to your FAQs.
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Relief From Charges Under Pennsylvania Unemployment Law - What Does That Mean?

PENNSYLVANIA UNEMPLOYMENT LAW: WHAT IS RELIEF FROM CHARGES

A request for Relief From Charges is a document filed by employers under Pennsylvania Unemployment law.  Let me address one common scenario wherein an employer files for Relief From Charges.

Assume that you worked for a Company X for 3 years at a salary of $40,000 until your employment ended on January 1, 2012 (either because you were fired or you quit).  You would have been entitled to toughly $500 per week in unemployment as per your Notice of Financial Determination, but in March you lose your Unemployment Hearing before the Referee (either on the grounds that you engaged in willful misconduct or that you quit your job without necessitous and compelling reason).

On April 1, 2012, you find a new job with Company Y paying you w-2 wages in the amount of $500 per week.  Unfortunately, Company Y lets go as part of a lay off on June 30, 2012 (i.e. 12 weeks after you started with Company Y). You then apply for unemployment in connection with your involuntary lay off from Company Y. 

In such a scenario, you are under Pennsylvania's unemployment law  entitled to unemployment because you are laid off, provided that you have enough earnings from Company Y.

Below, I discuss how you figure out if you have enough earnings from Company Y and, if not, what that means regarding your application from unemployment.

WHAT IS MY BASE YEAR UNDER PENNSYLVANIA UNEMPLOYMENT LAW?

To know how this all plays out, you need first understand what your "Base Year" is under the law. 

Your Base Year is the first 4 of the last 5 quarters that immediately preceded the date of your separation from your most recent employment.  In this scenario, your most recent job ended June 30, 2012 so, in calculating your Base Year earnings, we skip your most recent quarter of earnings (i.e. we do not take into account any of your earnings from Company Y, all of which were made during the second quarter of 2012).

HOW DO I KNOW IF I EARNED ENOUGH MONEY FROM MY EMPLOYER TO BE ENTITLED TO UNEMPLOYMENT UNDER PENNSYLVANIA LAW?

Ordinarily, the calculations for how much you need to earn in order to be entitled to unemployment benefits is relatively straight forward.  In summation, if Company Y was the only employer that had employed you during your base year, you would have had $0 earnings for the Base Year (remember, one counts only the first 4 of the most recent 5 quarters in determining eligibility), and would be ineligible for benefits.

Yet, in this case, sue to your former employment with Company X, your Base Year earnings were $40,000 (i.e. your 2011 earnings , which constituted the 4 quarters taken into account when determining your Base Year earnings).

So, because you were formerly employed with Company X, you have enough earnings to qualify for unemployment when you are laid off from Company Y.  In fact, you would be eligible for the same $500 that you would have received as a result of the end of your employment from Company X, had you been so eligible.

In this scenario, only Company X may be charged for your unemployment benefits, since it is the only one that employed you during your Base Year.  Company Y is completely off the hook.  Yet, you were initially ineligible for benefits from Company X, while you would have been eligible for benefits resulting from your lay off from Company Y.  What gives?

EMPLOYERS THAT WOULD OTHERWISE BE CHARGED FOR YOUR UNEMPLOYMENT CLAIM CAN AVOID BEING CHARGED BY FILING FOR RELIEF FROM CHARGES

In such a scenario, Company X is referred to as the nonseparating employer (i.e. an employer that had employed you during your Base Year that is not the employer that most recently employed you) and Company Y is referred to as the separating employer (i.e. the one who most recently separated you from employment, and who may or may not have employed you during your Base Year.).

As noted above, only Company X has a stake in the outcome of your claim for benefits relating to the claim you made arising out of your lay off from Company Y.

Since the reasons from your separation from Company X made you ineligible for unemployment, Company X wants to fight your claim.  Yet, insofar as it has already won a determination of your ineligibility where your January 1 separation from employment is concerned, what else can it do?

In this scenario, Company X files for Relief From Charges.

CAN I GET UNEMPLOYMENT IN PENNSYLVANIA AFTER I AM LAID OFF IF I WAS FIRED FROM MY PREVIOUS JOB FOR WILLFUL MISCONDUCT OR IF I QUIT MY PREVIOUS JOB WITHOUT NECESSITOUS AND COMPELLING REASON?

The answer to this question is: Yes, provided that you earned at least 6x your weekly benefit rate from the employer that laid you off.

In the example given above, you would be eligible for unemployment because you earned in excess of $3,000 from Company Y (i.e. earned more than 6x your weekly benefit rate of $500).

Yet, since you were fired from Company X, it will not be charged for the unemployment benefits that you receive as a result of your lay off from Company Y, as long as it files a timely request for Relief From Charges.  If such a timely request is filed, it will be granted (remember, your ineligibility for benefits where Company X is concerned has already been determined via the Referee Hearing). 

You will still get benefits, though, paid by the common fund maintained by Unemployment.

WHAT SHOULD I DO IF MY EX-EMPLOYER FILES FOR RELIEF FROM CHARGES?

Under the hypothetical situation set forth above, you need do nothing in response to Company X's request for Relief From Charges.  For  one thing, you cannot win because you already lost on the eligibility issue where Company X is concerned during the March 2012 Unemployment Hearing.  Moreover, you need not do anything - if indeed you were laid off from Company Y, you will get benefits because, following the cessation of your employment with Company X, you earned more than 6x your weekly benefit rate.

Additional questions about Pennsylvania's unemployment law?  Click Here to read our answers to your FAQs.
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Financial Planning Vs T20 Cricket...


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com)



8 reasons why T20 Cricket and Financial Planning are similar...




T20 cricket is no different from Financial Planning. Fast paced, uncertain, little time to achieve, limited resources and most importantly, winning the game. Our lives can also be equated with this T20 evolution in the sense that our lives too have evolved drastically.


Let's look @ 8 points what financial planning lessons can be learnt from T20 cricket:


1. Game Plan:




Let's get it straight; T20 is all about precise game plan and teams don't win matches by sheer luck as it's appears. Every ball which is being hit and every ball being bowled is planned for the simple reason that teams have only 120 balls to bowl and 120 to bat and the match has to be won within that... So is the case with our financial life. We have big financial goals and objectives with very little time on hand. That requires a sound financial plan to make one a winner in his/her life. It's all abut game plan.



2. Run rate matters from the start:




Like in a T20, life is filled with run rates... Limited time to achieve too many things... Children education, foreign holidays, new home, retirement plan etc., Time and money is very limited, hence the importance of achieving the desired run rate (returns in our case). 


  • Story of 3 friends aged 30: 

They invest 1 lac each and meet after 20 years...


Mr. Cautious invests at the age of 30 years @ 9%
Mr. Responsible invests at the age of 35 years @ 12%
Mr. Fun invests at the age of 40 years @ 15%


@ 50 years...


Mr. Cautious has made  5.61 lacs @ 9% 
Mr. Responsible made   5.47 lacs @ 12%
Mr. Fun has made       - 4.04 lacs @ 15%


If you look at the results, you would be astonished...
Mr. Cautious has made most money among the rest though he earned the lowest returns in the group. But what made him as the winner is, he started early on in his life. On the other hand, Mr. Fun got the highest returns, but started very late in his life.... Power of Compounding worked very well for Mr. Cautious.




3. Right choices of Ps (player/product):






T20 in India is all about getting the right players in the right winning combination. Once that's done, the rest is on the field. Financial life is all about getting into the right products which can ensure our financial future. 


http://mymoneyavenues.blogspot.in/2012/04/one-compelling-reason-to-manage-your.html


The above link shows how people can benefit financially by choosing the right investment avenue with the limited resources.




4. Importance of Coaches:




T20 is all about having great winning coaches. Though the T20 format looks very fun loving, it's a serious business. And that's why we see the best coaches in the cricket business getting drafted into T20 league. Financial planning is all about having good coaches to assist people on formulating financial goals and prepare a financial plan to achieve those goals.




5. Fast faster fastest...:




Our life is as fast as a T20 game and even before we could realize the game is over... Such is our lives that we find very little time to plan for our financial future; but we have ever growing goals and aspirations for our future. We are largely focus on earning wealth.. But the critical component is to create more wealth out of the earned wealth. 




6. Hero there/zero here and vice versa:






We have seen many heroes of ODIs and Test formats turning zeros in T20 formats. Many zeros in ODIs and tests have turned heros in T20. Many of us are hugely successful in our careers and professions, but that may not be the case with our financial planning and there are many reasons for that. Our success in careers need not translate into successful financial life.




7. Make the most out of resources:




Resources in T20 are limited and they have to be optimally utilized. For eg., A best bowler can bowl only 4 overs. Same is the case with our lives. We have limited resource, limited time frame but unlimited goals; we need to optimally utilize it for our financial future. For eg., If I have Rs 1 lac to invest., I can either keep it in bank a/c which gives me 6% or I can choose to invest in an avenue which can give 15%. This is one way to look at optimizing resources. 


8. Defensive and Offensive game play: Protection and creation










T20 is all about the judicious mix of defense and offense, though it is widely popular for exotic shots and scores. One has to protect wicket when it is required and offend when needed the most. Same is the case with our lives. We need to first protect our and our family's interests against uncertainties. Also that we need to go for long term wealth creation for a bright financial future. Any one strategy alone will not yield the desired results both in T20 and our lives.





(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com)





You have read this article with the title April 2012. You can bookmark this page URL http://clapclapclappp.blogspot.com/2012/04/financial-planning-vs-t20-cricket.html. Thanks!

One compelling reason to manage your money effectively...


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com)



One compelling reason to manage your money effectively:



Power of Compounding:




There are many compelling reasons to manage one's money effectively, but I can tell you one compelling reason as to why you have to manage your money effectively, and Power of compounding is that reason...


Story of Five friends:


Mr. Lazy
Mr. Fun
Mr. Cautious
Mr. Calculator
Mr. Smart


All of them put Rs 1 lac at the same time and after 20 years lets see how they have done?


Mr Lazy            @ 6%    - Rs 3.21 lacs  
Mr Fun             @ 9%    - Rs 5.61 lacs 
Mr Cautious      @ 12%  - Rs 9.65 lacs 
Mr Calculator    @ 15%  - Rs 16.36 lacs
Mr Smart          @ 18%  - Rs 27.40 lacs


If you observe, the difference between each one is just 3% in returns, but look at the difference in returns over the period of time... And that's the power of compounding for you my friend... It works very silently... 


Remember earning money is only one side of the coin; but creating wealth is the important another side of the coin...


Just by effectively investing the money Mr Smart has got 21 lacs more than Mr Lazy, who had kept his money in his savings bank A/C...




So decide if you want to be Mr Lazy or Mr Smart on managing the hard earned money... End of the day, you work really hard to earn money... The next time you leave it in your savings bank a/c, think about the power of compounding...


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com)
You have read this article with the title April 2012. You can bookmark this page URL http://clapclapclappp.blogspot.com/2012/04/one-compelling-reason-to-manage-your.html. Thanks!