Family Money: Rethinking Pensions
By Leslie
Wright,
Managing director of Westminster Portfolio Services (Thailand) Ltd.
As I wrote about some weeks ago, global pension fund
assets are in serious trouble. Recently published figures are perhaps even
more frightening, and should serve as a clarion call both to retirees who
are relying on corporate or private pensions, and to those hoping to
retire in the next decade or so.
Three consecutive years of heavy stock market falls in
11 major markets have taken $2,800bn off world pension funds, leaving them
back at 1997 levels. Half of this - some $1,400bn of asset value - was
lost last year alone.
The increased liabilities pension planners now work
under only make matters worse: the money has to be found to honour
pre-existing commitments, but taking these liabilities into consideration,
global pension fund balance sheets have worsened by over 20%.
Global pension funds peaked in 1999 at $13,485bn.
Annual average growth in the nine years up to the 1999 peak was a healthy
12%, ahead of a post-war market annual average rise of 8.2%.
Over that period average growth was stable - but the
TMT (Technology, Media, Telecommunications) bubble inflated valuations and
created expectations of early retirement. That bubble burst in April 2000
and set off the subsequent three-year slide. As a result of market falls,
more and more companies have been closing their final-salary pension
schemes to new entrants.
Work longer,
draw less
Most countries in the developed world are struggling
with severe pension funding shortfalls. Increased life expectancy and
declining birth rates have led to an ageing population, placing a heavier
burden on pension providers, both State and corporate.
Many European countries are switching to
"funded" schemes and avoiding pay-as-you-go schemes. For
instance, after the market falls of the past three years Germany’s
funded pension assets now stand at just 10% of GDP. By 2025 Germany’s
pension shortfall is forecast to be 110% of its gross domestic product
(GDP). That is unsustainable, and pension funds will be under pressure,
either through statutory force or through their own industry, to put their
funds into better order.
The news is not looking good for expats with dreams of
taking early retirement at 55. A recent survey asked independent financial
advisers (IFAs) for their views on possible UK government policy options
to address the UK’s pension funding crisis. Most respondents believe
that only by taking drastic action will more people be persuaded to plan
adequately for their retirement.
Of those IFAs who took part, the majority (58%) believe
that a key solution would be to increase the current State retirement age
from 65 to 70 years. The chief reason why IFAs are keen to support this
retirement age increase is their belief that clients would save more if
they planned to retire at 70 rather than 65. A cynic might think this
opinion to be self-serving - but the growing number of bodies in the UK
calling for an increase in the State pension age include the National
Association of Pension Funds and the Institute of Public Policy Review, as
well as most financial institutions. The implications for workers
approaching retirement age are massive. But there is no question that
radical steps need to be taken to address a very real crisis.
More choice,
more options
Expats are somewhat luckier, with more options
available for offshore personal pension planning. There are a number of
offshore retirement-income providers, most of which are life assurance
companies based in Dublin, Guernsey and the Isle of Man. The products on
offer are called ‘international pensions’ - but this marketing wrapper
is slightly misleading, since you should not expect such products to
operate in the same way as pensions back in the UK.
For example, these plans do not guarantee a proportion
of a final salary. Rather, they operate along similar lines to defined
contribution schemes as they are designed to build up a capital reserve
over time from investments made in a range of equity and bond funds. The
amount of capital built up will depend on the amount you contribute over
time into the plan, your selection of funds - conservative, balanced, or
aggressive - and of course, the performance of the markets in which these
funds are invested.
Essentially, offshore international pensions are
investment-based savings plans which are built up by expats making either
regular payments (premiums), or contributing lump sums as and when they
can afford to. Some plans offer a combination of both payment methods.
These offshore savings plans are favoured by many for
being more flexible than comparable pension plans back in the UK. Offshore
plan holders are not restricted as to when monies may be drawn down, nor
are investors beholden to purchase annuities with the accumulated capital.
Another difference from onshore pensions is there’s
no pre-set limit on a specific age for maturity: you may choose your own
maturity date or contributory period.
Many plans allow you to increase or decrease regular
contributions, typically on each anniversary of the plan (to offset
inflation and keep pace with rising income), and most will allow access to
accumulated capital if you suddenly need some emergency cash.
At maturity, you again have choices: you may elect to
remain invested in the plan, drawing down either a regular ‘pension’
or irregular amounts as & when you need them; or you may withdraw all
the accumulated capital and simply keep it on deposit in the bank.
One obvious advantage is that offshore plans grow
without tax being deducted at source, and drawdowns remitted into Thailand
are free of tax too.
There are a variety of plans available with differing
features and charging structures to suit each individual investor’s
needs and circumstances - but remember that if you stop these plans early,
you’re likely to suffer a penalty, and most importantly, it will never
achieve the goal for which it was set up: providing you with an adequate
pension for the rest of your days.
Snap Shot: Become an ‘Events’ photographer - and return with the goods!
by Harry Flashman
We all get asked to take photographs at events. Happy
Anniversary! Happy Birthday! Congratulations on your engagement,
graduation, marriage, baptism! Have a great vacation! It just goes on.
Every week there will be some sort of celebration. Now have a look in your
own family album and you will undoubtedly get all sorts of memories - here’s
Bill when he graduated, Noi’s birthday, Lek’s wedding or even Felix’s
funeral.
For all these people, the event is an important
milestone in their lives, in some way or another, and so the event
deserves to be recorded properly. And guess what, you can’t do it with
one shot - it should even take more than one roll of 36 shots on.
So to make sure that you can get the event in its
entirety, here are a few hints from Harry Flashman. The secret is to start
long before you get to the event venue and sit down and make yourself a
list. A checklist, in fact. What you have to remember at all times, is
just what is this event all about? Let us assume that the party you are
going to record is a birthday. Here’s what you should be thinking about.
What do you need to show? Firstly you have to show that
it is a birthday, not just any old party. Secondly you have to feature the
person whose birthday it is. Thirdly you have to show who came to
celebrate the birthday and fourthly any significant gifts that were
received. Not even Henri Cartier-Bresson would be able to get all that lot
into one photograph!
It should go without saying that you have checked your
camera, it does work, you do have film and you do have spare batteries for
the flash. Here is the type of list I would draw up for myself if taking
photographs for your child’s birthday:
1. Shot of birthday boy looking at a birthday card
(close up - this gives the visual clue that it is a birthday)
2. Birthday boy opening present (close up - more clues)
3. As above with parents and friends standing around
(wide angle shot)
4. Mother placing candles on birthday cake (classic
clue)
5. Father lighting candles
6. Blowing out the candles (close up - an absolute
"must")
7. General shots of people singing and clapping
8. Happy time shots
Note that all these shots are designed to set the
scene, show the participants and nominate the "star". There are
varied shots, some close up, some group shots and together they make a
package called "Billy’s Birthday".
Probably one of the most important items to remember is
my adage - "Walk several metres closer!" When people are just
small dots, you cannot pick out who they were, several months later. Do
not be afraid to walk in close - this one factor alone will result in much
better pictures.
For many of the shots, you will also have to be
prepared, because when the action happens at an event, it can happen very
quickly. For example, blowing out the candles. You can’t say,
"Sorry, I wasn’t ready. Can you do it again please?" The name
of the game is to know what you are wanting to shoot, and be ready for it.
Now when you come to put them in the family album, you
have a nice group of pictures which many years later will continue to say
"Billy’s Birthday", unmistakably. And you made it happen
photographically. Well done!
So next time you are going to photograph an important
event, buy a couple of rolls of film and plan your shots, take them
deliberately according to the plan and be amazed at how much better your
results will be!
One final word of warning. When you have become the ‘official’
photographer for any event, you cannot be the life and soul of the party
until you have taken all the shots on your list. You are being relied upon
to come home with the goods. You can’t do it with a belly full of gin
and tonics!
Modern Medicine: Your personality - can it change your disease pattern?
by Dr Iain Corness, Consultant
Can your personality determine the diseases you will
get? Yes it most certainly can. And that’s for certain, too. After much
recent research, including clinical studies, the answer is out. Be happy
and stay well. Be aggressive and get heart attacks and cancer.
Now that does not mean that all happy folk live to be
183 and the misery bags croak at 45 - but there is enough evidence to show
that your personality type influences the sorts of diseases you will get
later in life.
However, this is really nothing new. In the ancient
times of Hippocrates, the healers were interested in the personality of
the patient, because they felt that this had a bearing on the disease
process. This conclusion was reached after observation of the patients.
This combination of mind and body and disease is the basis for holistic
healing, and even though Hippocrates and his healers did not have all our
pharmaceutical treatments and wonderful tests, they did treat the person,
not just the disease.
So why do we fall ill in the first place? Is it a
personal weakness, is it just "lifestyle" or just plain bad
luck? Since I am not a great believer in "luck" be it good or
bad, my leaning after many decades of medicine is towards a type of
personal weakness. After all, you can take two people with the same
lifestyle but one gets ill and the other does not. Why? Simply, one person
was more susceptible than the other - in some way they had a
pre-disposition or call it a "weakness". Simplistic I know, but
it seems to fit.
So what factors seem to be involved in bringing about
the pre-disposition. Genetics are one, and do play a part - if your
parents are diabetic then you will most likely have the problem too, but
it is not the be all and end all. The modern scientific studies with large
numbers of people have come up with interesting statistics. One famous
researcher, Eysenck, lumped us all into four main personality categories.
Type 1 have a strong tendency to suppress their
emotions and tend towards "hopelessness" and are unable to deal
with personal stress.
Type 2 people, on the other hand, are also unable to
deal with personal stress, but react to life with anger and aggression.
Type 3 is less clear-cut with a mixture of all these
personality traits.
Type 4 covers the optimistic and relaxed who deal much
better with interpersonal stress.
Using these broad categories and looking at disease
profiles that each type gets, returned some amazing facts. Type 1 was the
cancer prone group, Type 2 got the heart disease, Type 3 got both while
Type 4 people were not prone to either cancer or heart disease. Can you
see what’s coming next?
Eysenck did not stop there. He went on to show that
when people modified their personality they also modified the expected
disease profile. When you think about it, this is staggering stuff! By
attention to your personality profile you can modify your disease profile!
The most significant personality trait was
"anger". Learn to modify your anger response (and this can be
done) and you become less "at risk". This is almost approaching
Buddhist philosophy now - but you CAN modify your personality. That last
sentence can make you live ten years longer, happier and disease free.
Forget all the wonder cures, just look at yourself first! Hippocrates did
more than say oaths!
Heart to Heart with Hillary
Dear Hillary,
Is there something that can be done about telephones in this
country? So many times when I ring a company looking to buy something I get a
recorded voice (in Thai) and I have no idea what they are talking about and
eventually I give up in disgust. They miss on a sale and I don’t get what I
want. Why don’t they take a leaf out of the American telesales marketing
book? If they want to sell to me, they have to speak my language. Surely this
is obvious? What is your answer to my problems, sweet Hillary?
Cheesed Off
Dear Cheesed Off,
You have lots of options, Petal. First off you can get
somebody who speaks Thai to ring up for you. Secondly, you could try learning
enough Thai so you can do it yourself - after all, this country is called
Thai-land, if you hadn’t noticed, and the native language is called Thai.
Surely this should be obvious, even to you. Or thirdly, you can ring America
and order what you want from there direct, in that quaint dialect called
"American" English. Or fourthly, and probably the best option in your
case, is to go back to America, where life will be simpler for you.
Dear Hillary,
A little something for you to chew on! I realise that
Thailand is not a cricketing nation, but wonder if protective boxes are
available in Pattaya. My problem is not from ‘googlies’ but more on ‘goolies’
when traversing certain sois. What can I do? I have recorded a recent episode
in verse to illustrate this matter and append a version for your consideration.
"As we were walking down Soi Six,
Two ladies grabbed us by our mits
Sawasdee Khar, the first one said,
Let’s pop inside and see Uncle Ned.
It may be haa roi, may be hok;
It all depends on how much you joke."
Advice please on this sticky wicket, Hillary.
Mistersingha
Dear Mistersingha,
One week I get sketches (thanks again, Dickens 44), and
on another I get verses! But yours is going from bad to verse, I’m afraid,
Petal. As you can see, I cleaned up the rhymes a little and decided that iambic
tetrameter was a more preferential cadence for the rhyming couplets, but your
meaning has been retained. So what can you do to keep yourself safe while
traversing certain sois? Simple, drive down in a Volvo - they’ve got great
safety records. I think it is also safer if you give up writing poetry, it
doesn’t appear to be your best medium, Mistersingha. Stick to your day job!
Dear Hillary,
My Thai friend is driving me nuts with his giving in to his
family at all times. Anything they want, he will give them, even if it is
personal items of jewellery that I have given him. They want money and he will
dish it out - only problem is that it is my money that he is doling out. And it’s
not just a few hundred baht here and there, it’s by the thousand. I believe
that it is the custom in Thailand that children look after their parents, as a
matter of duty. I did not know that this covers a grasping avariciousness by
the family towards the children. Is this the norm for this country? It seems
that the family condones this behaviour, and even encourages it. If it is, I
think I will make some other country my next port of call.
George
Dear George,
Duty to one’s parents is part of Thai culture, but how
that is applied is not quite so clear. Since you are worrying because your
finances are part of all this, you should consider that you also have a duty to
your bank account, and your duty is not to his parents. However, once you give
something to your boyfriend, it is his prerogative as to what he does with it.
Nevertheless, it is also your prerogative to ignore the begging from your
boyfriend, no matter what the reason for the asked for hand-out from his
family. There are families in Thailand that are not so avaricious. In all
countries there are cultural differences, you have come across one extreme.
There are others in Thailand not so extreme. The choice is always yours
Dear Hillary,
With so many of the men writing in with problems, would it
be possible for you to start some kind of dating service so that we would know
that the girls have your recommendation. This would stop a lot of problems and
heartache, surely?
Me First
Dear Me First,
I’m sorry, Me First, but you are not the first to
suggest this as an answer for all the broken hearts out there. Apart from the
fact that Hillary is a columnist and not an introduction agency, I see many,
many problems with your suggestion. How could I possibly give the girls a ‘recommendation’
as you suggest? Even after an interview, I would still not really know the full
story behind any Thai girl who would want to have an association with you. The
responsibility and care is yours, Petal. Not mine.
Personal Directions: To measure intention,
look at the results
by Christina Dodd
Managing director of Westminster Portfolio Services (Thailand) Ltd.
I had the experience yesterday of being asked why I did
not respond to a particular e-mail that was sent to me. In view of the
fact that I check my e-mails about five times a day, I asked the person
the simple question of, "when was it sent?" The reply, which was
rather long-winded was, "about a month ago". I stopped to gain
my composure and to think before reacting and to enquire a little further
into this. As it turned out, the basis of this meeting we were having
revolved around the information contained in the elusive e-mail! The
immediate thought that came to my mind was, "if this meeting was so
important and the information was so crucial to the meeting, why didn’t
anyone follow-up on the e-mail? Why didn’t the sender ask for a receipt?
Why didn’t anyone call me?"
This type of situation is not rare or isolated. It
happens with avid frequency and not only with e-mailing and every other
form of communication, but with the way we go about doing almost every
kind of task. It makes me think of two important things (apart from the
obvious) and they are:
1. To measure someone’s intention, look at the
results of their actions, and
2. People are more reactive than proactive.
In most conversations I have with managers and
businessmen and women these days, these subjects always come up. They
struggle with such matters in the workplace and of staff not initiating
tasks, not thinking ahead, not planning ahead, but sitting back and
waiting for results to magically appear - to suddenly happen. They wonder
why a lot of projects don’t have the expected results and this concerns
small, medium and large-scale projects.
The first statement is as clear as a bell. If you want
to know how intent someone is on doing something, just have a look at the
results. The results speak for themselves. In my episode with the
"one-month-ago e-mail", the sender gave zero importance to this
- he had no real intention of doing anything about it and it was obvious
because of the end result. If he had really intended for me to get the
e-mail, he would have followed up the same day, if the matter was so
important. It is that simple.
This way of measuring intention can be used for
everything that we undertake to do in life. When people say they’ll call
back for instance, or get in touch with you later, you can gauge their
level of intention by when or if the call comes. How you interpret their
level of intention is entirely up to you. Perhaps there are factors out of
their control that influence their efforts and their intentions.
Measuring your own level of intention is an interesting
exercise. Just go back to some task you have set yourself to do, maybe you
have been meaning to write to a friend who is overseas or you have been
meaning to call a family member back home, and you just haven’t got
around to doing it. What does it tell you about yourself and your
intention to do these things? Is it that you are too busy or is it that
you haven’t placed enough importance on them? If you really wanted to do
these things, you would have done them, right? If you really intended to
write the letter or make the call, you would have done it, right? Take a
quick look at results, and you will instantly realize the level of your
intention. Your level of intention will determine the kind of results you
produce. Half-hearted intention produces half-hearted results.
Whole-hearted intention produces whole-hearted results. The arithmetic is
fairly easy to follow.
This statement becomes very interesting when you take a
look at the workplace and at the people you work with. It can tell you a
great deal about them in a moment. And it will help to confirm the fact
that most people are reactive as opposed to proactive. It’s much easier,
after all, to be that way and you don’t have to think or do very much.
Such is human nature, but in the world of getting ahead
and performing well in a job, it pays to be on the proactive side of the
table. When companies call for new recruits in virtually any position,
this characteristic or attribute is high on the list of selection
criteria. It identifies those most likely to get ahead and to be more
successful in their working careers. They are a rare find indeed and
employers will search high and low to source them and when they do find
them, it’s like striking gold.
But in the real world, we are who we are and there are
a many great ways that we can learn to improve ourselves and the way we do
things. In order to do this, it doesn’t mean that we have to change who
we are, but it means that we have to able to change some of our thinking
and our attitudes towards things. Learning how to be more proactive is not
an impossible task and like any task we all undertake, if we place a high
level of importance to our intention, then the results will come out
accordingly and they will speak for themselves.
The amount of intention we put into something is a
major factor in the final outcome. It is a driving force in the way we
approach our everyday private lives and our professional lives. It can
dictate whether something is going to be a success or a f ailure. It can
determine whether you are going to be a success or a failure. It is so
much a part of who we are that it is critical to be able to understand its
ultimate power.
For more information on these subjects and other
training matters, please contact me by e-mail at [email protected]
and visit our website at www. asiatrainingassociates.com
Have a great week!
Woman's World: Fountain of Youth
by Lesley Warner
In England I used to live a very different life from
the one I live in Pattaya. My home was in amongst the rolling hills and
winding lanes of North Devon, and as I drove to work every day I used to
pass the livery yard. They also supplied bulk animal feed so I often
called in for the horse and dog food. Outside on a large black board the
owner had once written ‘Aloe Vera’. In my ignorance I used think,
"I wonder who Vera is," as the owner quite often used to replace
the words with other cryptic topics.
As I have already mentioned we can’t take everything,
so must choose what we think is going to give us the most benefit for a
healthy lifestyle. Always top of the list of course is eating the correct
diet and getting the most exercise you can fit in the day. Although the
climate as it is in Pattaya at the moment hardly gives me the energy to
put my foot out of the bed!
Aloe Vera is a cactus-like plant but is actually part
of the lily family. There are over 300 varieties of the Aloe plant, but it
is the Aloe Barbadensis variety that exhibits the best medicinal
properties. Most botanists agree, and historical evidence suggests, that
the Aloe Vera plant originated in the warm, dry climates of Africa.
However, because the plant is readily adaptable, and because man has been
so eager to carry it with him from place to place, it can now be found in
many warm lands.
The history of Aloe Vera goes way back to the ancient
Egyptians and Greeks who recognized it as a safe, effective medicine and
skin care aid. It can even be found mentioned in the bible - the healing
properties were used for a wide range of ailments.
Both Marco Polo and Christopher Columbus took the plant
with them on their travels to distant lands, to spread the seeds and the
word of this magical plant around the world. There are a few unusual
descriptions of the Aloe Vera plant such as ‘Voodoo Juice’, ‘Fountain
of Youth’, ‘First Aid Plant’, and ‘Wand of Heaven’.
Aloe Vera was used during the terrible time of World
War I & II to heal radiation burns. After World War II it was used to
help victims of the fallout in Nagasaki and Hiroshima. Reports stated that
those victims who were treated with Aloe Vera showed signs of increased
tissue growth and reduced pain, where other medicines had failed.
Aloe Vera has been proven to have various beneficial
effects on the body.
Blood circulation – a number of constituents have
beneficial effects on blood pressure and coagulation.
Bone and joint disorders – due to its high mineral
and amino acid content.
Detoxification – amino acids assist the liver and
kidneys.
Digestion – as well as being widely shown to benefit
irritable bowel syndrome, it is also useful with other digestive problems,
including peptic ulcers.
Laxative – it has a gentle laxative effect on the
bowels.
Immune system – Aloe contains at least 23
polypeptides (immune stimulators), so we can understand why Aloe juice
helps control a broad spectrum of immune system diseases and disorders,
including HIV and AIDS. The polypeptides, plus the anti-tumor agents Aloe
emodin and Aloe lectins, explains its ability to control cancer.
Skin care – moisturising and conditioning effects
even when taken internally.
Burns and Sunburn – The soothing and healing
qualities of Aloe Vera are well known for any type of burn and is
especially popular for sunburn.
The precise method by which Aloe Vera works is not yet
fully understood, but it is a great stimulator of the body’s own system,
which counteracts disease and disorder.
Aloe Vera contains an assortment of materials,
including the following:
Acids – antimicrobial, anti-helminitic
(anti-parasitic worms), wound healing for skin tissue and ulcers.
Amino Acids – required for repair and growth. Aloe
Vera contains twenty of the twenty-two essential amino acids.
Enzymes – catalysts enabling chemical reactions to
take place.
Lectin – anti-tumour effects.
Lipids – principle structural components of living
cells.
Minerals – calcium, magnesium, potassium and sodium
are all present in significant quantities.
Lactates and Salicylates – analgesic properties.
Phenolics – mild antiseptics and antimicrobials.
Polysaccharides – long chain sugars broken down to
smaller ones via enzymes.
Urea-Nitrogen – pain killing effect.
Vitamins – contains 8 of the 13 recognised vitamins.
Although Aloe Vera is still not fully recognized in the medical world,
that may soon change, as there is some serious research going on now to
find out exactly how the plant helps with HIV, AIDS and cancer, the worst
killers on the planet.
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