Oxygen and glucose 'boost brain power' - Health News, Health & Families - The Independent: "Oxygen and glucose 'boost brain power'
By Lorna Duckworth, Social Affairs Correspondent
Monday, 2 April 2001
Mental performance can be improved by 'feeding' the brain with extra oxygen or glucose, according to research published today that could have implications for the treatment of dementia.
Mental performance can be improved by 'feeding' the brain with extra oxygen or glucose, according to research published today that could have implications for the treatment of dementia.
Brain power can be increased by up to 20 per cent when people take extra supplies of either of the two basic neural fuels, the study by psychologists suggests.
Their research also found that a single dose of gingko, a herbal extract that improves blood flow, oxygenation and glucose metabolism, can improve concentration for as long as six hours.
The brain is the body's most energetic organ, consuming at least 20 per cent of its calories even when at rest. But unlike muscle cells or other organs, it is unable to store energy and needs a constant supply of glucose and oxygen in the blood.
Researchers at the Human Cognitive Neuroscience Unit of the University of Northumbria say the findings could help develop treatments for patients with chronic fatigue syndrome, Alzheimer's and dementia.
Their study, reported in The Psychologist magazine, found that oxygen or glucose had the biggest effect when people were set the most difficult mental tasks. Volunteers remembered up to 20 per cent more words from a list after they were given a short blast of oxygen through a face mask.
A dose of oxygen also improved performance when playing the computer game Tetris when the game was at its hardest level.
Similar results were shown when volunteers were given a glucose drink or gingko combined with ginseng before they performed arithmetic tests."
Thursday, May 28, 2009
Wednesday, May 20, 2009
Braingle: 'Letter to Yourself' Mentalrobics Article
Braingle: 'Letter to Yourself' Mentalrobics Article: "Creativity :: Work Hard, Play Hard
Many famous thinkers got their bright ideas while they were relaxing and not thinking about the problem. Archimedes got his sudden flash of genius while taking a bath and Darwin figured out evolution while driving down the road. These flashes of insight happen because the unconscious mind continues to process information in the background while you are doing other things. If your subconscious figures something out, it will seem like the idea came out of nowhere.
One way to encourage this is to periodically review your notebook to remind your subconscious mind about some of your recorded ideas. Then give your conscious mind a break from concentrating on the topic and do some novel and interesting activities. When you do this, it gives your subconsciousness a chance to freely explore the idea without the constraints that you impose upon your conscious thinking."
Many famous thinkers got their bright ideas while they were relaxing and not thinking about the problem. Archimedes got his sudden flash of genius while taking a bath and Darwin figured out evolution while driving down the road. These flashes of insight happen because the unconscious mind continues to process information in the background while you are doing other things. If your subconscious figures something out, it will seem like the idea came out of nowhere.
One way to encourage this is to periodically review your notebook to remind your subconscious mind about some of your recorded ideas. Then give your conscious mind a break from concentrating on the topic and do some novel and interesting activities. When you do this, it gives your subconsciousness a chance to freely explore the idea without the constraints that you impose upon your conscious thinking."
Tuesday, May 12, 2009
Five Ways to Speak Like Obama | BNET
Five Ways to Speak Like Obama | BNET: "Now that we’ve got your attention, you should realize, of course, that you don’t want to speak like Barack Obama. You want to speak like you. Nevertheless, as a student of the art of public speaking, you can — and should — observe Obama’s oratorical skills. The greats all learn from other greats, so don’t hesitate. Study Obama’s repertoire, take what you like, and use what you can to improve your own public speaking.
Obama is a master at grabbing and keeping his audience’s attention, which is the number one goal of any public speaker. How does he do it? Here are five key lessons from Obama’s rhetorical playbook.
1. Talk About the Audience’s Concerns
Notice that when Obama addressed a joint session of Congress for the first time, he told our story before he told his own. He talked about our sleepless nights, for example, and the college admission that might have to be turned down because of a lack of financing.
This was brilliant, and you can do it, too. Start your talk by broadly defining the situation that your listeners face. Then, once you’ve got them nodding their heads in agreement, move on to describe the problems or challenges that are on their minds. Start where the audience is, not where you are. Once you have their attention, you can lead your listeners wherever you want to take them.
2. Keep It Simple
Throughout the presidential campaign, Obama kept his main message — “change you can believe in” — simple and easy to remember. Sure, some pundits mocked its simplicity, but it served its purpose perfectly as the banner at the front of his parade. You, too, can keep it simple, even if you have mountains of research to report.
First, fine-tune your core message. Fierce debate within Obama’s campaign no doubt accompanied the birth of the slogan “change you can believe in,” and similar prolonged discussion may accompany the discovery of your own core message. But once the decision has been made, don’t let that debate show. Chisel away at your topic until you can reduce your presentation to a core message. Once you achieve this, all your complex ideas can march behind it.
This is as true for business presentations as it is for political campaigns. Granted, your content may be nuanced and detailed, but so were Obama’s policy positions. He used his simple slogan to make us believe he was the politician for change — something so many Americans longed for — and he appealed to us to have faith (to believe) in the change he was offering us. Obama won people through a simple slogan, which then allowed him to more easily serve up his ideas about meaty topics such as health care, terrorism, and the crumbling economy.
We make a serious error if we mistake a complete argument for a persuasive one. All audiences, no matter how sophisticated, have limited attention spans and a limited ability to retain detailed spoken information. Don’t fear that you’re leaving details out; you must be selective. After all, what good is a thorough and detailed argument if it is inaccessible?
3. Anticipate What Your Audience Is Thinking
Obama and his speechwriters are certainly aware of the great line by Goethe, “Every word that is uttered evokes the idea of its opposite.” What this means is that when you express one view, the odds are high that people will reflexively think about other, unmentioned aspects of the topic.
A presentation that does not deal with this “evoking of opposites” loses the audience’s attention because it fails to address the questions and concerns that come up in people’s minds. So anticipate it. Show your audience that you understand the contrary view better than they do, and explain why your proposal or argument is still superior.
Obama did this effectively in his speech on race, in which he attempted to distance himself from the inflammatory Rev. Jeremiah Wright. Obama pointed out, for example, that he won primaries in former Confederate states and that he had built a “powerful coalition of African Americans and white Americans.” But he also acknowledged what was undoubtedly on people’s minds when he said, “This is not to say that race has not been an issue in the campaign.” He went on to say that, yes, Reverend Wright’s sermons were controversial, but, no, that’s not why he must be rebuked. He said that, yes, the clips of Reverend Wright on YouTube make him look terrible, but, no, that’s not the full measure of the man.
His speech was powerful and widely praised. It was effective in part because Obama let everyone know that he had thought a lot about race, and in particular about both sides of the controversy surrounding his former pastor.
Attack your topics this way, too, and you will be in charge of the conversation. This approach will not only grab and hold the attention of your listeners, but it will also help you win people into your camp, which is what you need to do if, say, your goal is to persuade your board of directors of the wisdom of a seemingly risky partnership.
4. Learn to Pause
Obama has mastered the art of pausing. Just check out his presidential acceptance speech in Chicago to see this skill at work. He pauses to let us catch up with him. He pauses to let his words resonate. He pauses, in a sense, to let us rest. Pauses also give the impression of composure and thoughtfulness.
Here’s an exercise to help you learn to pause.
* Mark up your paragraphs / in this manner / into the shortest possible phrases. / First, / whisper it, / breathing / at all the breath marks. / Then, / speak it / in the same way. / Do this / with a different paragraph / every day.
Here’s what the opening paragraph of Obama’s remarks would look like:
* “If there is anyone out there / who still doubts / that America is a place / where all things are possible, / who still wonders / if the dream of our founders / is alive in our time, / who still questions / the power of our democracy, / tonight / is your answer.”
Where you pause is up to you; there are no hard and fast rules. But try it. Slowly inhale to the count of three at each breath mark. Speak as though you had plenty of time. The goal / of this exercise / is to teach your body / to slow down.
5. Master the Body Language of Leadership
Obama’s body language is relaxed and fluid. It does not display tension or fear. He’s calm and assertive — which is exactly what you need to be to get people to comply with your requests. For the ultimate in Obama smoothness, watch his entrance on The Ellen DeGeneres Show.
To achieve the body language that’s effective for you, focus on a single attribute — for example, calm — and practice implementing it in the basic motions of your day, from getting dressed in the morning, to leaving your home for work, to greeting your friends and colleagues. Research in the Scientific American suggests that focusing on one word is the most effective way to learn a new behavior. It will probably feel forced at first, but don’t worry. It will soon become natural, and eventually your body language will communicate the right mix of calm and assertiveness.
Finally, you’ll need to rehearse. Practice calmly walking up to the lectern or the front of the room. Arrange your papers calmly. Look out to the audience with a sense of command, with assertiveness. Let the silence hang for a moment, and only then deliver your opening remarks.
Calmness begets a sense of authority. Behave as if you are in control, and you will in fact gain control and command attention."
Obama is a master at grabbing and keeping his audience’s attention, which is the number one goal of any public speaker. How does he do it? Here are five key lessons from Obama’s rhetorical playbook.
1. Talk About the Audience’s Concerns
Notice that when Obama addressed a joint session of Congress for the first time, he told our story before he told his own. He talked about our sleepless nights, for example, and the college admission that might have to be turned down because of a lack of financing.
This was brilliant, and you can do it, too. Start your talk by broadly defining the situation that your listeners face. Then, once you’ve got them nodding their heads in agreement, move on to describe the problems or challenges that are on their minds. Start where the audience is, not where you are. Once you have their attention, you can lead your listeners wherever you want to take them.
2. Keep It Simple
Throughout the presidential campaign, Obama kept his main message — “change you can believe in” — simple and easy to remember. Sure, some pundits mocked its simplicity, but it served its purpose perfectly as the banner at the front of his parade. You, too, can keep it simple, even if you have mountains of research to report.
First, fine-tune your core message. Fierce debate within Obama’s campaign no doubt accompanied the birth of the slogan “change you can believe in,” and similar prolonged discussion may accompany the discovery of your own core message. But once the decision has been made, don’t let that debate show. Chisel away at your topic until you can reduce your presentation to a core message. Once you achieve this, all your complex ideas can march behind it.
This is as true for business presentations as it is for political campaigns. Granted, your content may be nuanced and detailed, but so were Obama’s policy positions. He used his simple slogan to make us believe he was the politician for change — something so many Americans longed for — and he appealed to us to have faith (to believe) in the change he was offering us. Obama won people through a simple slogan, which then allowed him to more easily serve up his ideas about meaty topics such as health care, terrorism, and the crumbling economy.
We make a serious error if we mistake a complete argument for a persuasive one. All audiences, no matter how sophisticated, have limited attention spans and a limited ability to retain detailed spoken information. Don’t fear that you’re leaving details out; you must be selective. After all, what good is a thorough and detailed argument if it is inaccessible?
3. Anticipate What Your Audience Is Thinking
Obama and his speechwriters are certainly aware of the great line by Goethe, “Every word that is uttered evokes the idea of its opposite.” What this means is that when you express one view, the odds are high that people will reflexively think about other, unmentioned aspects of the topic.
A presentation that does not deal with this “evoking of opposites” loses the audience’s attention because it fails to address the questions and concerns that come up in people’s minds. So anticipate it. Show your audience that you understand the contrary view better than they do, and explain why your proposal or argument is still superior.
Obama did this effectively in his speech on race, in which he attempted to distance himself from the inflammatory Rev. Jeremiah Wright. Obama pointed out, for example, that he won primaries in former Confederate states and that he had built a “powerful coalition of African Americans and white Americans.” But he also acknowledged what was undoubtedly on people’s minds when he said, “This is not to say that race has not been an issue in the campaign.” He went on to say that, yes, Reverend Wright’s sermons were controversial, but, no, that’s not why he must be rebuked. He said that, yes, the clips of Reverend Wright on YouTube make him look terrible, but, no, that’s not the full measure of the man.
His speech was powerful and widely praised. It was effective in part because Obama let everyone know that he had thought a lot about race, and in particular about both sides of the controversy surrounding his former pastor.
Attack your topics this way, too, and you will be in charge of the conversation. This approach will not only grab and hold the attention of your listeners, but it will also help you win people into your camp, which is what you need to do if, say, your goal is to persuade your board of directors of the wisdom of a seemingly risky partnership.
4. Learn to Pause
Obama has mastered the art of pausing. Just check out his presidential acceptance speech in Chicago to see this skill at work. He pauses to let us catch up with him. He pauses to let his words resonate. He pauses, in a sense, to let us rest. Pauses also give the impression of composure and thoughtfulness.
Here’s an exercise to help you learn to pause.
* Mark up your paragraphs / in this manner / into the shortest possible phrases. / First, / whisper it, / breathing / at all the breath marks. / Then, / speak it / in the same way. / Do this / with a different paragraph / every day.
Here’s what the opening paragraph of Obama’s remarks would look like:
* “If there is anyone out there / who still doubts / that America is a place / where all things are possible, / who still wonders / if the dream of our founders / is alive in our time, / who still questions / the power of our democracy, / tonight / is your answer.”
Where you pause is up to you; there are no hard and fast rules. But try it. Slowly inhale to the count of three at each breath mark. Speak as though you had plenty of time. The goal / of this exercise / is to teach your body / to slow down.
5. Master the Body Language of Leadership
Obama’s body language is relaxed and fluid. It does not display tension or fear. He’s calm and assertive — which is exactly what you need to be to get people to comply with your requests. For the ultimate in Obama smoothness, watch his entrance on The Ellen DeGeneres Show.
To achieve the body language that’s effective for you, focus on a single attribute — for example, calm — and practice implementing it in the basic motions of your day, from getting dressed in the morning, to leaving your home for work, to greeting your friends and colleagues. Research in the Scientific American suggests that focusing on one word is the most effective way to learn a new behavior. It will probably feel forced at first, but don’t worry. It will soon become natural, and eventually your body language will communicate the right mix of calm and assertiveness.
Finally, you’ll need to rehearse. Practice calmly walking up to the lectern or the front of the room. Arrange your papers calmly. Look out to the audience with a sense of command, with assertiveness. Let the silence hang for a moment, and only then deliver your opening remarks.
Calmness begets a sense of authority. Behave as if you are in control, and you will in fact gain control and command attention."
Thursday, May 7, 2009
9 Important steps to improve your mental strength
"Mental strength or toughness is not something that you have to be born with as mental toughness is something that can be transferable. There is no point in going through life as if you were in a fire; be ready to face the many challenges of life and keep moving forward towards reaching your goals by improving your mental strength.
1. The best way to improve your mental strength is to listen to experts in this field. There are many biographies and audio programs available that teach you to overcome obstacles and be successful in life. There are many success stories on the internet and in papers about people like you. And remember that if they can do it, there should be nothing stopping you from reaching your goal.
2. Though it is said that it is only with pain there is gain, this is not always true. Once you realize that failure and handicap does not actually prevent winning in life, you improve your mental strength by developing more confidence and courage to follow your dreams.
It is only through trial and error that you learn from mistakes. Don’t keep too high hopes, but do keep reachable hopes. With too high expectations, you tend to overwork and overstrain yourself. Remember that success will always reach you, if not in days, in months’ time.
3. Always do something you are not familiar with. This means you could walk a different route, stop watching television for a few days, drive to office using a different route or perhaps change your workout routines. By changing your routine, you become more adept in handling different and difficult situations with better calmness.
4. Never dwell on things that go wrong. Instead, think what you should do next and move forward in your work. Think of avenues where you can do better and decide if your goals are reachable by you. Most important, keep goals that you can keep, and not follow goals that are meant for others. This way, there is less scope of anything going wrong with your task.
5. Always adapt a positive attitude about health and personal fitness. Paying too much attention to small aches and pains only leads to a deterioration of your mental strength.
6. There are many enticing ads about new products like weight loss gimmicks, and new investment ventures. Don’t fall for all of them; follow your instinct and follow that meets your criteria, and tends to satisfy all of your concerns.
7. Meet more people who have done something in their lives. It is not advisable to mingle with people who are suffering from unsolved problems and who are frustrated with their lack of achievement in life. This is because the negativity and woe they suffer from can pass on to you.
8. Pay more attention on the rewards of your success, and not on focusing on mistakes you have done. Do only what is necessary today, and not on yesterday or tomorrow. This removes most of your worry.
9. Always be ready for the unexpected. Remember that though you can’t control life or nature, you can be ready for things that may happen. This way, you have a better approach to life, and in whatever you do.
With all these tips, you find an improvement in your mental strength, which in turn makes it much easier and better for you to face life all the tasks life gives you.
You May be Interested In More Other interesting articles :-
5 Best ways to Overcome All Obstacle Challenges
5 tips to turn Negative thoughts Into Positive thoughts
7 Useful tips to overcome your fear of failure"
1. The best way to improve your mental strength is to listen to experts in this field. There are many biographies and audio programs available that teach you to overcome obstacles and be successful in life. There are many success stories on the internet and in papers about people like you. And remember that if they can do it, there should be nothing stopping you from reaching your goal.
2. Though it is said that it is only with pain there is gain, this is not always true. Once you realize that failure and handicap does not actually prevent winning in life, you improve your mental strength by developing more confidence and courage to follow your dreams.
It is only through trial and error that you learn from mistakes. Don’t keep too high hopes, but do keep reachable hopes. With too high expectations, you tend to overwork and overstrain yourself. Remember that success will always reach you, if not in days, in months’ time.
3. Always do something you are not familiar with. This means you could walk a different route, stop watching television for a few days, drive to office using a different route or perhaps change your workout routines. By changing your routine, you become more adept in handling different and difficult situations with better calmness.
4. Never dwell on things that go wrong. Instead, think what you should do next and move forward in your work. Think of avenues where you can do better and decide if your goals are reachable by you. Most important, keep goals that you can keep, and not follow goals that are meant for others. This way, there is less scope of anything going wrong with your task.
5. Always adapt a positive attitude about health and personal fitness. Paying too much attention to small aches and pains only leads to a deterioration of your mental strength.
6. There are many enticing ads about new products like weight loss gimmicks, and new investment ventures. Don’t fall for all of them; follow your instinct and follow that meets your criteria, and tends to satisfy all of your concerns.
7. Meet more people who have done something in their lives. It is not advisable to mingle with people who are suffering from unsolved problems and who are frustrated with their lack of achievement in life. This is because the negativity and woe they suffer from can pass on to you.
8. Pay more attention on the rewards of your success, and not on focusing on mistakes you have done. Do only what is necessary today, and not on yesterday or tomorrow. This removes most of your worry.
9. Always be ready for the unexpected. Remember that though you can’t control life or nature, you can be ready for things that may happen. This way, you have a better approach to life, and in whatever you do.
With all these tips, you find an improvement in your mental strength, which in turn makes it much easier and better for you to face life all the tasks life gives you.
You May be Interested In More Other interesting articles :-
5 Best ways to Overcome All Obstacle Challenges
5 tips to turn Negative thoughts Into Positive thoughts
7 Useful tips to overcome your fear of failure"
Tuesday, May 5, 2009
Home loans: Tips to save money
Home loans: Tips to save money: "When the Reserve Bank of India [Get Quote] hiked the repo rates and CRR on July 29, banks immediately followed suit by hiking their rates. Since January this year, most banks have increased their rates between 1 and 1.5 per cent, thereby leading to a rise in the equated monthly instalments (EMIs) or tenures of home loan borrowers.
There is another option - prepayment-in-parts or one-time to curtail the impact on EMIs.
However, before deciding on it, check whether the EMIs for the home loan (along with other loans) have crossed 50 per cent of the take-home income. 'If the EMIs are crossing 50 per cent of the salary, it is time to start controlling the monthly expenses,' said Rajesh Saluja, CEO, ASK Wealth Advisors.
Households whose EMIs are less than 50 per cent of the salary need not consider prepayment as interest rates should come down within 15 months. This could be usually in the case of families that have been repaying the loan for more than five years. As home loans are for the long term, rising income ensures that the monthly instalments becomes smaller vis-a-vis the income.
The worst affected lot, due to rising interest rates, are recent home buyers. If you had borrowed Rs 40 lakh in January for 15 years, his EMI would have been Rs 44,216. Now if the interest rate has increased by 1.5 per cent over the last six months (for simplicity we assume that the entire rate rise has happened at one time, rather than a staggered fashion), the restructured EMI will be Rs 47,918 per month, a rise of almost 8 per cent.
'Borrowers, who have taken a loan in the last three-five years should try and prepay part of the loan. Instances of such customers are already on the rise,' said Rajiv Sabharwal, head (retail assets and rural finance), ICICI Bank [Get Quote]. This will lead to reduction in the principal, which in turn, will reduce the interest payout.
For instance, for the same home loan, if the EMI has risen by Rs 3,702 (Rs 47,918 - Rs 44,216), you could pay around Rs 6.5 lakh at one-go to keep the EMI at the same level of Rs 44,216. Definitely, this is a large amount of money and may not be available easily.
However, if one takes a look at such rises in a staggered fashion, then the first rise would have been from 10.5 per cent to 11 per cent or 11.25 per cent. In this case, paying off around Rs 2.3 lakh would have kept the EMI constant.
For making such prepayments, financial experts suggest liquidation of debt instruments that are not giving great returns, especially the bank fixed deposits. Before doing so, call up the lender and ask about the amount that you need to pay to bring down your EMI to a comfortable level.
'Though equity investments should not be used for prepayment purposes, in some cases we have used these returns for prepayment,' said Kartik Jhaveri, a certified financial planner. When investing in equities, one expects to earn around 15 per cent a year in the long term.
However, if the equity portfolio gives more returns, use the surplus returns to payoff some parts of the loan. 'This ensures that the goals of the person are on track and the excess returns can be used to reduce the liability,' Jhaveri said.
In case you don't have the money to prepay immediately, Sabharwal suggests that stepping up the EMI outgo, if possible, is a better option than increasing tenures.
Another option, if you cannot prepay, is to switch your home loan from the existing bank to the one that is offers lower interest rates. 'However, switching only makes sense if the person gets the economics right.
In most of the cases the person has to pay around 3 per cent upfront on the outstanding loan,' said Sabharwal. He suggests a look at the charges involved such as foreclosure charges (2 per cent), processing charges (0.5 - 1 per cent) and the difference between the interest rates.
The apt time to prepay the loan is when you are nearing retirement and still have a housing loan. 'Prepay as much as possible. One may even liquidate some equity savings, if required,' Saluja suggests.
Then, there are situations where high expenses are expected. For instance, Sachin Anand and his wife used their gold to prepay 40 per cent of the Rs 15 lakh loan they took a year and a half ago. The Anands are expecting a child come November. Realising that the monthly expenses will increase, they liquidated the precious metal. And part of the proceeds from the sale have been kept for maternity expenses.
Yes, home loan EMIs have started hurting now. However, before arriving at any decision about prepaying, a rise in EMIs or tenures, you need to weigh all these options carefully."
There is another option - prepayment-in-parts or one-time to curtail the impact on EMIs.
However, before deciding on it, check whether the EMIs for the home loan (along with other loans) have crossed 50 per cent of the take-home income. 'If the EMIs are crossing 50 per cent of the salary, it is time to start controlling the monthly expenses,' said Rajesh Saluja, CEO, ASK Wealth Advisors.
Households whose EMIs are less than 50 per cent of the salary need not consider prepayment as interest rates should come down within 15 months. This could be usually in the case of families that have been repaying the loan for more than five years. As home loans are for the long term, rising income ensures that the monthly instalments becomes smaller vis-a-vis the income.
The worst affected lot, due to rising interest rates, are recent home buyers. If you had borrowed Rs 40 lakh in January for 15 years, his EMI would have been Rs 44,216. Now if the interest rate has increased by 1.5 per cent over the last six months (for simplicity we assume that the entire rate rise has happened at one time, rather than a staggered fashion), the restructured EMI will be Rs 47,918 per month, a rise of almost 8 per cent.
'Borrowers, who have taken a loan in the last three-five years should try and prepay part of the loan. Instances of such customers are already on the rise,' said Rajiv Sabharwal, head (retail assets and rural finance), ICICI Bank [Get Quote]. This will lead to reduction in the principal, which in turn, will reduce the interest payout.
For instance, for the same home loan, if the EMI has risen by Rs 3,702 (Rs 47,918 - Rs 44,216), you could pay around Rs 6.5 lakh at one-go to keep the EMI at the same level of Rs 44,216. Definitely, this is a large amount of money and may not be available easily.
However, if one takes a look at such rises in a staggered fashion, then the first rise would have been from 10.5 per cent to 11 per cent or 11.25 per cent. In this case, paying off around Rs 2.3 lakh would have kept the EMI constant.
For making such prepayments, financial experts suggest liquidation of debt instruments that are not giving great returns, especially the bank fixed deposits. Before doing so, call up the lender and ask about the amount that you need to pay to bring down your EMI to a comfortable level.
'Though equity investments should not be used for prepayment purposes, in some cases we have used these returns for prepayment,' said Kartik Jhaveri, a certified financial planner. When investing in equities, one expects to earn around 15 per cent a year in the long term.
However, if the equity portfolio gives more returns, use the surplus returns to payoff some parts of the loan. 'This ensures that the goals of the person are on track and the excess returns can be used to reduce the liability,' Jhaveri said.
In case you don't have the money to prepay immediately, Sabharwal suggests that stepping up the EMI outgo, if possible, is a better option than increasing tenures.
Another option, if you cannot prepay, is to switch your home loan from the existing bank to the one that is offers lower interest rates. 'However, switching only makes sense if the person gets the economics right.
In most of the cases the person has to pay around 3 per cent upfront on the outstanding loan,' said Sabharwal. He suggests a look at the charges involved such as foreclosure charges (2 per cent), processing charges (0.5 - 1 per cent) and the difference between the interest rates.
The apt time to prepay the loan is when you are nearing retirement and still have a housing loan. 'Prepay as much as possible. One may even liquidate some equity savings, if required,' Saluja suggests.
Then, there are situations where high expenses are expected. For instance, Sachin Anand and his wife used their gold to prepay 40 per cent of the Rs 15 lakh loan they took a year and a half ago. The Anands are expecting a child come November. Realising that the monthly expenses will increase, they liquidated the precious metal. And part of the proceeds from the sale have been kept for maternity expenses.
Yes, home loan EMIs have started hurting now. However, before arriving at any decision about prepaying, a rise in EMIs or tenures, you need to weigh all these options carefully."
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