All golfers want that perfect golf swing that they can always rely on. It is a swing that can be used effectively with either a wood or iron. You can tee off and drive with it, adapting to changes in wind and terrain. It is a swing that can get you out of bad situations like bunkers and even water. It is a swing that is as simple as it can get, yet can be versatile and dependable.
That isn't happening though if your swing has slice.
Perfecting that golf swing definitely isn't easy, no
Saturday, December 18, 2010
Friday, December 10, 2010
ECONOMIC INSIGHT
I was lucky enough to be invited to a talk the other day by the top economist at Quilters (investment managers). It was interesting and I thought I would pass on some of the highlights he mentioned:
Gold. You might remember that I was backing gold in March at something over $1,000 an ounce and now it's around $1,400, so that's a tasty return. This economist didn't like gold. Claimed it was a commodity with no real use and that it was like one giant Ponzi scheme - needed a bigger fool to buy it from you! He did admit that some of his colleagues disagreed, but it was an interesting perspective.
Ireland: If the interest on government bonds exceeds 6%, then that government will not be able to afford the interest, let alone repay the capital. Ireland could be paying 8 - 9%. What next?
Euro: Germany can't let it fail, because it's main market for manufactured goods is Europe. So Euro will survive, but there could be some interesting 'tweaks'.
Equities: should perform strongly in 2011 and is a favoured sector, but beware of volatility.
Bonds: underweight. Avoid government bonds or those offering high interest rates - they're not high for nothing.
Cash: Boring. Rates likely to stay low until at least 3rd quarter 2011.
Oil: likely to hit $100 a barrel. Demand from India and China will outstrip savings in the West and demand will exceed supply at current prices.
Currency: Euro down; Sterling flat; US$ up.
National Economies: India and China will continue to forge ahead, but less dramatically.
Interesting insight, but the trouble with economists is that they'll tell you tomorrow why the forecasts they made yesterday didn't happen today!
Be well.
Gold. You might remember that I was backing gold in March at something over $1,000 an ounce and now it's around $1,400, so that's a tasty return. This economist didn't like gold. Claimed it was a commodity with no real use and that it was like one giant Ponzi scheme - needed a bigger fool to buy it from you! He did admit that some of his colleagues disagreed, but it was an interesting perspective.
Ireland: If the interest on government bonds exceeds 6%, then that government will not be able to afford the interest, let alone repay the capital. Ireland could be paying 8 - 9%. What next?
Euro: Germany can't let it fail, because it's main market for manufactured goods is Europe. So Euro will survive, but there could be some interesting 'tweaks'.
Equities: should perform strongly in 2011 and is a favoured sector, but beware of volatility.
Bonds: underweight. Avoid government bonds or those offering high interest rates - they're not high for nothing.
Cash: Boring. Rates likely to stay low until at least 3rd quarter 2011.
Oil: likely to hit $100 a barrel. Demand from India and China will outstrip savings in the West and demand will exceed supply at current prices.
Currency: Euro down; Sterling flat; US$ up.
National Economies: India and China will continue to forge ahead, but less dramatically.
Interesting insight, but the trouble with economists is that they'll tell you tomorrow why the forecasts they made yesterday didn't happen today!
Be well.
Sunday, November 21, 2010
Why We Should All Worry About Inflation
If you're reading this the chances are that you are old enough to remember the 70's and 80's and when a certain Margaret Thatcher became Prime Minister and inflation was rampant. In 1979 inflation was running at an incredible (by today's standards) 27%. By 1981 Mrs T had started cutting costs and raising taxes. Sound familiar? It lead to strikes and riots.
So today we should be really grateful that our inflation rate is only around 3.5%. Still a bit over the Bank of England's target rate, but not too bad. Or is it? Are we becoming a little complacent? Those of us reliant on modest incomes should spare a thought for the future. Even at 3.5% inflation, your savings will be worth close on 20% less in real terms within 5 years. And it doesn't look as though interest rates are going to increase any time soon to compensate for the erosion in the value of your cash.
We might need to consider ways of making a few extra pounds to see us through to a half-reasonable retirement.
As they say in the North; "Think on".
So today we should be really grateful that our inflation rate is only around 3.5%. Still a bit over the Bank of England's target rate, but not too bad. Or is it? Are we becoming a little complacent? Those of us reliant on modest incomes should spare a thought for the future. Even at 3.5% inflation, your savings will be worth close on 20% less in real terms within 5 years. And it doesn't look as though interest rates are going to increase any time soon to compensate for the erosion in the value of your cash.
We might need to consider ways of making a few extra pounds to see us through to a half-reasonable retirement.
As they say in the North; "Think on".
Saturday, November 13, 2010
The Only Four Ways to Make Money
Essentially there are four ways that you can create an income:
you can be an employee and have a job
you can be self-employed
you can be a business owner
you can be an investor
When you think back to your school years you will probably remember being told to get a good education so that you could move on to a good job or career. I don't recall any of my school teachers telling me that ‘JOB’ stood for Just Over Broke or that the best way to become seriously rich was to be entrepreneurial and run my own business. The teacher's job is to take the risk out of your future and the
you can be an employee and have a job
you can be self-employed
you can be a business owner
you can be an investor
When you think back to your school years you will probably remember being told to get a good education so that you could move on to a good job or career. I don't recall any of my school teachers telling me that ‘JOB’ stood for Just Over Broke or that the best way to become seriously rich was to be entrepreneurial and run my own business. The teacher's job is to take the risk out of your future and the
A Million Pensioners with a Mortgage
According to the Daily Telegraph more than 1 million people are going to have to repay their mortgage after they retire. it would seem that nearly 250,000 people aged over 65 are still paying off their mortgage and many experts agree that a further 1 million homeowners approaching retirement age have still not paid off their mortgage.
Many of us bought endowment policies back in the days when they were supposed to guarantee paying out, not just enough to cover the mortgage debt, but a good deal extra to supplement our pensions. What a shattered dream that has turned out to be. The net result is that many pensioners are going to face financial hardship as they struggle to pay off their debt from a pension that has failed to live up to expectations.
It can only be a question of time before interest rates are seen to rise again and this can only make matters worse for cash strapped pensioners. So called quantitative easing (banks printing money) has given stock markets around the world a bit of a boost and this must help pension funds, but it's only a short-term fix and may in any case be too late for those approaching retirement.
I have to admit that it's a bit depressing and it is becoming ever more apparent that people are going to have to retire much later in life, or are going to have to come up with some method of supplementing their pension to overcome their financial difficulties.
The Retirement Revenue website has a number of ideas to assist the baby boomer generation with with ways to increase their income and there are other sites too, such as Cash in Retirement, that offer helpful advice. With a bit of research and determination it should be possible to create a modest additional income that will help to pay off the mortgage.
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Many of us bought endowment policies back in the days when they were supposed to guarantee paying out, not just enough to cover the mortgage debt, but a good deal extra to supplement our pensions. What a shattered dream that has turned out to be. The net result is that many pensioners are going to face financial hardship as they struggle to pay off their debt from a pension that has failed to live up to expectations.
It can only be a question of time before interest rates are seen to rise again and this can only make matters worse for cash strapped pensioners. So called quantitative easing (banks printing money) has given stock markets around the world a bit of a boost and this must help pension funds, but it's only a short-term fix and may in any case be too late for those approaching retirement.
I have to admit that it's a bit depressing and it is becoming ever more apparent that people are going to have to retire much later in life, or are going to have to come up with some method of supplementing their pension to overcome their financial difficulties.
The Retirement Revenue website has a number of ideas to assist the baby boomer generation with with ways to increase their income and there are other sites too, such as Cash in Retirement, that offer helpful advice. With a bit of research and determination it should be possible to create a modest additional income that will help to pay off the mortgage.
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Sunday, October 31, 2010
Take Action Now to Protect Your Health in Retirement - Six Action Items Retirees Need to Know
There is probably nothing more important to the enjoyment of the retired lifestyle than good health. Poor health limits your retirement options dramatically. It may restrict where you can live. Your willingness and ability to travel are both negatively affected by poor health. It's hard to enjoy seeing new places if you can't get around, or are tied to medical support facilities or special medical devices.Assuming you are currently enjoying reasonably good health, take action to maintain
What Seniors Need to Know About Stretching
Although there are benefits to stretching for everybody, seniors in particular should spend time stretching every day. Stretching assists with relaxation, flexibility, strength and fitness. Traditionally, stretching is thought to be for warming up and soothing muscles before and after exercise. With the modern day popularity of practices like Yoga and Pilates, it is now seen as much more, and stretching for some is their whole exercise regime.Benefits of Stretching for SeniorsEveryone slows
Drills and Secrets To Improve Your Golf Swing
When you play golf, are you tense?? Do you have trouble relaxing and concentrating on hitting the ball?? You are not alone if you have these issues. It can be really hard to relax when you are out with your golfing buddies.? If you really screw up a shot, you will never hear the end of it.? They will still be talking about it 20 years from now!? Relaxing is something that most everyone needs to work on.? It isn?t easy to relax and the more you think about relaxing, the more tense
Saturday, October 30, 2010
What is the Magic in Lee Trevino's Golf Swing?
Lee Trevino certainly didn't take the traditional route to becoming a great PGA Tour Golfer. The "Merry Mex" did not grow up with a silver spoon in his mouth so he had to learn golf the hard way...Lee Trevino found his swing in the Mexican dirt with long and hard practice sessions.Lee certainly has a great understanding of the golf swing. His golf swing is far from classic as he reroutes his golf club on the way down...not a conventional golf swing to say the least. One thing Lee
High Blood Pressure - What is it and Why is it Such a Big Deal?
One out of three adults in the United States has it. It has no symptoms, so you can have it for years without knowing it. During the time when you were clueless that you have it, it can damage the vital organs inside you: your kidneys, your heart, blood vessels and a lot more. What is it? It's high blood pressure or HBP.As we all know, the force of blood that pushes against the walls of the arteries as your heart pumps blood is called "blood pressure". If it rises and remains high over a
The Making of a Bad Golf Swing
The perfect golf swing is the most important thing for a golfer of any handicap and experience. Greenhorns and veterans of the game strive to make their golf swings a little better than last weekend's 18 holes. There are a lot of instructional videos and booklets that are available to improve a golfer's swing but none of them will work if you fail to understand some of the basic concepts of what makes a golf swing bad.The Set-up The key element of a bad golf swing is sometimes
Friday, October 29, 2010
Good Ways to Make Money Online - 5 Top Online Opportunities
When it comes to making money online, there are indeed the 'good ones' which are not only legitimate but also great ways to make good cash as well. Indeed, making money online has become a major trend in these times when businesses and people are moving towards the internet to promote their businesses and to make extra money as well.If you are looking for the good ways to make money online, here are some of the money-making ideas that you may want to start with.1. Start with a blog. If you are
Make Money from the Comfort of Your Own Home!
How many times have you heard that phrase, pitch, advertisement, or whatever? Lots, I'm sure. It is used so much because marketers know that staying home and making money is the fondest dream of millions of people.
And why not? Did you know that the majority of fatal heart attacks happen
at 9 a.m. Monday morning? It's true. It seems a lot of people would rather die than get back to the old grind after a weekend of freedom. So when someone offers an opportunity or plan for you to
And why not? Did you know that the majority of fatal heart attacks happen
at 9 a.m. Monday morning? It's true. It seems a lot of people would rather die than get back to the old grind after a weekend of freedom. So when someone offers an opportunity or plan for you to
Investing Basics – What Are Your Investment Goals
When it comes to investing, many first time investors want to jump right in with both feet. Unfortunately, very few of those investors are successful. Investing in anything requires some degree of skill. It is important to remember that few investments are a sure thing – there is always the risk of losing your money!
Before you jump right in, it is better to not only find out more about
Before you jump right in, it is better to not only find out more about
Wednesday, August 11, 2010
50% RISE IN JOBLESS OVER 50
According to the charity Age UK and as reported in the Daily Mail, the number of jobless people over 50 has increased by more than 50% in a year and is now at the highest level for a decade. There are now more than 170,000 in this category that will struggle to find a full-time job ever again.
Despite a lot of fine-sounding rhetoric from government and employers, the fact remains that ageism still exists and is becoming increasingly evident.
It’s all very well for the government to say that they want to reinvigorate retirement and allow people to extend their working lives into their 70’s and beyond, but this presupposes that the jobs are there for them to fill.
Ed Davey, the Employment Relations Minister, said recently that people wanting to extend their working lives should not be prevented from doing so just because they have reached a particular age, but employers seem to be taking a different approach.
As Mr Brown from Northants said in response to the Mail Online: “These over 50’s should think about working for themselves rather than do the demoralising job search. There are lots of opportunities out there to start a small business or go self-employed.”
It’s a big decision to start up a small business, but it must be better than sitting around waiting for that illusive job to turn up whilst relying on social welfare. As the old saying goes: “Every journey starts with a single step.” And there’s a lot of help and support available for individuals who want to go down that route. Web sites like www.retirementrevenue.co.uk can give you some ideas about how to get started.
If you’re unfortunate enough to be over 50 and out of work, it is well worth considering striking out on your own and putting your years of experience to good effect. So much better than doing nothing.
Be well.
Despite a lot of fine-sounding rhetoric from government and employers, the fact remains that ageism still exists and is becoming increasingly evident.
It’s all very well for the government to say that they want to reinvigorate retirement and allow people to extend their working lives into their 70’s and beyond, but this presupposes that the jobs are there for them to fill.
Ed Davey, the Employment Relations Minister, said recently that people wanting to extend their working lives should not be prevented from doing so just because they have reached a particular age, but employers seem to be taking a different approach.
As Mr Brown from Northants said in response to the Mail Online: “These over 50’s should think about working for themselves rather than do the demoralising job search. There are lots of opportunities out there to start a small business or go self-employed.”
It’s a big decision to start up a small business, but it must be better than sitting around waiting for that illusive job to turn up whilst relying on social welfare. As the old saying goes: “Every journey starts with a single step.” And there’s a lot of help and support available for individuals who want to go down that route. Web sites like www.retirementrevenue.co.uk can give you some ideas about how to get started.
If you’re unfortunate enough to be over 50 and out of work, it is well worth considering striking out on your own and putting your years of experience to good effect. So much better than doing nothing.
Be well.
Thursday, July 29, 2010
NEW BANK OPENS
People living in and around London will be interested in the first new bank to be opened in the UK for more than 100 years. Metro Bank has just opened their first branch in Holborn and plans to open another branch in Earls Court in August this year. A further 10 branches are promised over the next 2 years with a network of 200 branches during the next 10 years. All will be within the M25.
It doesn’t look as though they will win any prizes for competitive interest rates and instead will focus on better service and convenient opening hours. Branches will be open 7 days a week and from 8am to 8pm Monday to Friday; 8am until 6pm on Saturdays and 11am to 4pm on Sundays.
Branches will have toilets and dog owners will be pleased to learn that they can take their dogs into the bank where they will be given a bowl of water and a bone (the dog, not the owner).
You can use their free coin counting machines to count up all the extra pennies you can make by working after 65 now that the Government are going to make it illegal for your firm to push you out just because you’ve reached retirement age.
Be well
It doesn’t look as though they will win any prizes for competitive interest rates and instead will focus on better service and convenient opening hours. Branches will be open 7 days a week and from 8am to 8pm Monday to Friday; 8am until 6pm on Saturdays and 11am to 4pm on Sundays.
Branches will have toilets and dog owners will be pleased to learn that they can take their dogs into the bank where they will be given a bowl of water and a bone (the dog, not the owner).
You can use their free coin counting machines to count up all the extra pennies you can make by working after 65 now that the Government are going to make it illegal for your firm to push you out just because you’ve reached retirement age.
Be well
Monday, July 12, 2010
EVERYONE ON LINE?
Martha Lane-Fox strikes me as being a bit of a feisty lady who knows her own mind and has been very successful in various ventures, not least of which was lastminute.com, the travel website she co-founded.
You may have heard that she’s started out on a new venture to get everyone in the UK using the Internet by 2012. It seems that there are something like 10 million people in this country who are not yet switched on. Now this seems to be a pretty ambitious target and there are always those people around who simply do not want to get hooked up to any kind of new technology and simply refuse to try and understand it. I remember many years ago visiting an old great-aunt of mine and the bulb had blown in the main light in her sitting room. I offered to change it for her, but she was worried that if I removed the bulb the electricity would fall out!
The time will soon come when our retired population will have grown up with computers and it will be second nature to them. They couldn’t imagine life without a computer or the Internet in much the same way as we couldn’t now imagine life without a telephone or a TV or radio. I can’t see it happening by 2012, but I wish her luck with the project.
You are obviously computer literate or you wouldn’t be reading this, but do you have friends who are not on the Internet? Maybe you could help Martha by getting them interested.
Be well.
You may have heard that she’s started out on a new venture to get everyone in the UK using the Internet by 2012. It seems that there are something like 10 million people in this country who are not yet switched on. Now this seems to be a pretty ambitious target and there are always those people around who simply do not want to get hooked up to any kind of new technology and simply refuse to try and understand it. I remember many years ago visiting an old great-aunt of mine and the bulb had blown in the main light in her sitting room. I offered to change it for her, but she was worried that if I removed the bulb the electricity would fall out!
The time will soon come when our retired population will have grown up with computers and it will be second nature to them. They couldn’t imagine life without a computer or the Internet in much the same way as we couldn’t now imagine life without a telephone or a TV or radio. I can’t see it happening by 2012, but I wish her luck with the project.
You are obviously computer literate or you wouldn’t be reading this, but do you have friends who are not on the Internet? Maybe you could help Martha by getting them interested.
Be well.
Friday, July 9, 2010
PRIVATE PENSIONS UNDER ATTACK
Well, they had a go at public sector pensions and now the UK government want to have a pop at the private sector.
This chap, Steve Webb, who is the Pensions Minister, wants to link the increase in private sector pensions to the Consumer Price Index (CPI) rather than the Retail Price Index (RPI). Now you might not think that this amounts to much in the overall scheme of things. It's just another way of measuring inflation, isn't it? Yes and no, but funnily enough over the last 20 years the CPI is nearly always lower than the RPI. This means that the increase in your private pension is going to be less than it has been in the past. According to those clever accounting people at KPMG, this could save the private sector pension providers a whopping £100 billion.
Pensions in general seem to be under attack from all sides under the current austerity measures that are being introduced. Maybe you should write to your MP, or if you think you're going to need a bit more cash in your retirement you can get some ideas from Retirement Revenue. Click on this link: http://retirementrevenue.co.uk
Be well.
This chap, Steve Webb, who is the Pensions Minister, wants to link the increase in private sector pensions to the Consumer Price Index (CPI) rather than the Retail Price Index (RPI). Now you might not think that this amounts to much in the overall scheme of things. It's just another way of measuring inflation, isn't it? Yes and no, but funnily enough over the last 20 years the CPI is nearly always lower than the RPI. This means that the increase in your private pension is going to be less than it has been in the past. According to those clever accounting people at KPMG, this could save the private sector pension providers a whopping £100 billion.
Pensions in general seem to be under attack from all sides under the current austerity measures that are being introduced. Maybe you should write to your MP, or if you think you're going to need a bit more cash in your retirement you can get some ideas from Retirement Revenue. Click on this link: http://retirementrevenue.co.uk
Be well.
Thursday, June 24, 2010
DON'T SAY I DIDN'T WARN YOU!
Yes, you read it here first (see "BUDGET 2010: ARE WE BETTER OFF?"). If your a man aged 60 or less, you won't be getting your pension until you're 66 and I have no doubt that it will continue to increase over time until future generations will be working until they're 70.
Watch out now for your bus pass, the winter fuel allowance and the TV licence. These subsidies to pensioners cost the Government about £4bn and they will be on the target list for further cuts in welfare benefits that are due this autumn.
The problem with 'across the board' benefits like this is that they don't differentiate between those that really need them from those that don't. And when they cut these benefits, they hurt those needy people and the rest simply shrug and pour another glass of wine. It can't be beyond the wit of some economist to come up with a simple formula that's easily applied so that the poorer pensioners in society are protected from the whim of a Chancellor. How about, if you're of pensionable age and you pay income tax you don't get the benefit, or if your income's above £20,000 (to take a number) you don't get a bus pass, or whatever. Like the man said - it's not rocket science.
There's a big black hole in the economy that has to be filled and a lot of what Mr Osborne has done makes sense, but let's not fill the hole with the supporting framework of the poorer pensioners.
On the positive side, businesses will not be able to force you to retire at 65 if you don't want to. Some far-sighted companies have already adopted this policy. B&Q for example abolished their retirement age more than 15 years ago.
Perhaps the best way to supplement your retirement income is to look after yourself and run a small part-time business from home. Retirement Revenue have got some good ideas on that subject.
Be well.
Watch out now for your bus pass, the winter fuel allowance and the TV licence. These subsidies to pensioners cost the Government about £4bn and they will be on the target list for further cuts in welfare benefits that are due this autumn.
The problem with 'across the board' benefits like this is that they don't differentiate between those that really need them from those that don't. And when they cut these benefits, they hurt those needy people and the rest simply shrug and pour another glass of wine. It can't be beyond the wit of some economist to come up with a simple formula that's easily applied so that the poorer pensioners in society are protected from the whim of a Chancellor. How about, if you're of pensionable age and you pay income tax you don't get the benefit, or if your income's above £20,000 (to take a number) you don't get a bus pass, or whatever. Like the man said - it's not rocket science.
There's a big black hole in the economy that has to be filled and a lot of what Mr Osborne has done makes sense, but let's not fill the hole with the supporting framework of the poorer pensioners.
On the positive side, businesses will not be able to force you to retire at 65 if you don't want to. Some far-sighted companies have already adopted this policy. B&Q for example abolished their retirement age more than 15 years ago.
Perhaps the best way to supplement your retirement income is to look after yourself and run a small part-time business from home. Retirement Revenue have got some good ideas on that subject.
Be well.
Tuesday, June 22, 2010
BUDGET 2010: ARE WE BETTER OFF?
Well, there you have it, George Osbourne's first budget. This was the 'Emergency' Budget to resolve the rotten mess that the country's finances are in. So how will it affect the country's pensioners and are we better off or not?
On the face of it you'd think that we'd probably done quite well, but let's just think about it for a moment. On the plus side, the Government has restored the link between pensions and earnings. To be precise, pensions will keep pace with earnings, the Consumer Price Index or 2.5%, whichever is greater, with effect from April next year. As Mr Osbourne said: "There will be no more 75p increases to the State Pension." That's great, but it is no more than all the parties had said before the election, so it's not exactly news, welcome though it is.
Unfortunately, the increase in VAT to 20% is likely to wipe out any benefit. Neither will the VAT increase be offset by the reported £1,000 increase in the personal tax allowance to £7,475. That's because we already benefit from a personal tax allowance of £9,490.
Inflation is likely to rise and there is no sign of any increase in interest rates and this is bad news for those on fixed incomes, like us for example.
There were some other 'teasers' that were a bit light on detail, but which indicated the way the Government is thinking. It will no longer be compulsory to buy an annuity before the age of 75 and this will be broadly welcomed, but we don't have the detail yet.
Anyone under 60 might be a bit concerned about the news that the Government will be 'accelerating' the advance in the retirement age to 66. It was previously understood that this would not happen until most of us were passed caring, but it sounds as though this might come in much more quickly; like in 2016 for men and 2020 for women. There is going to be a comprehensive review of the retirement age and we're unlikely to know any more until the review is completed, but you can bet your pension that the increased retirement age will be effective in 2016 for men and 2020 for women. That means that millions of people under 60 are not going to get a pension until they're 66.
This Budget seems to be a bit of a Curate's egg for us pensioners - good in parts, but you could argue it both ways. According to Emma Simon in the Telegraph: "Pensioners are the biggest losers".
Looks like we might need Retirement Revenue after all.
Be well.
On the face of it you'd think that we'd probably done quite well, but let's just think about it for a moment. On the plus side, the Government has restored the link between pensions and earnings. To be precise, pensions will keep pace with earnings, the Consumer Price Index or 2.5%, whichever is greater, with effect from April next year. As Mr Osbourne said: "There will be no more 75p increases to the State Pension." That's great, but it is no more than all the parties had said before the election, so it's not exactly news, welcome though it is.
Unfortunately, the increase in VAT to 20% is likely to wipe out any benefit. Neither will the VAT increase be offset by the reported £1,000 increase in the personal tax allowance to £7,475. That's because we already benefit from a personal tax allowance of £9,490.
Inflation is likely to rise and there is no sign of any increase in interest rates and this is bad news for those on fixed incomes, like us for example.
There were some other 'teasers' that were a bit light on detail, but which indicated the way the Government is thinking. It will no longer be compulsory to buy an annuity before the age of 75 and this will be broadly welcomed, but we don't have the detail yet.
Anyone under 60 might be a bit concerned about the news that the Government will be 'accelerating' the advance in the retirement age to 66. It was previously understood that this would not happen until most of us were passed caring, but it sounds as though this might come in much more quickly; like in 2016 for men and 2020 for women. There is going to be a comprehensive review of the retirement age and we're unlikely to know any more until the review is completed, but you can bet your pension that the increased retirement age will be effective in 2016 for men and 2020 for women. That means that millions of people under 60 are not going to get a pension until they're 66.
This Budget seems to be a bit of a Curate's egg for us pensioners - good in parts, but you could argue it both ways. According to Emma Simon in the Telegraph: "Pensioners are the biggest losers".
Looks like we might need Retirement Revenue after all.
Be well.
Monday, June 21, 2010
HINDSIGHT'S A WONDERFUL THING
Back at the end of March I considered investing in gold, but said to myself (and anyone else who read the blog) that I had probably missed the boat. You can still see the original item - published on 26th March and called "How Can I Get More Interest?"
At the time, gold was trading at $1,104.30. Right now it's about $1,231.79, down from a high above $1,248. If I sold now (and to be honest if I had invested in gold I would now be selling) I would have made something over a 10% return in less than 3 months. That's not too sniffy is it? But then you see, hindsight is a wonderfull thing, and I wish I had a pound for every trader who said: "If only.......".
The Retirement Revenue website has just published an article about Setting Investment Objectives, you can get to it from here, and it makes sensible reading. It might be fun for us retired folk to take a bit of a punt every now and then, but in my case I see it as just that, a bit of a punt. It's a gamble at the end of the day and I don't have enough in my pension pot to risk it on gambling. I don't want to look back with the benefit of hindsight and think: "If only.....".
Be well.
At the time, gold was trading at $1,104.30. Right now it's about $1,231.79, down from a high above $1,248. If I sold now (and to be honest if I had invested in gold I would now be selling) I would have made something over a 10% return in less than 3 months. That's not too sniffy is it? But then you see, hindsight is a wonderfull thing, and I wish I had a pound for every trader who said: "If only.......".
The Retirement Revenue website has just published an article about Setting Investment Objectives, you can get to it from here, and it makes sensible reading. It might be fun for us retired folk to take a bit of a punt every now and then, but in my case I see it as just that, a bit of a punt. It's a gamble at the end of the day and I don't have enough in my pension pot to risk it on gambling. I don't want to look back with the benefit of hindsight and think: "If only.....".
Be well.
Sunday, June 20, 2010
5 TIPS FOR ENTREPRENEURS
I have no connection with it, but I find "The Week" to be an excellent magazine that provides a precis of the best of British and foreign media.
There's a piece in the City section by enterprise expert Rachel Bridge offering her tips about how to get the maximum return from a business start-up. I think they're worthy of greater consideration so, to get you thinking, I've repeated the headlines here:
1. Make your start-up easy to sell.
2. Don't borrow if you can avoid it.
3. Do something you understand.
4. Outsourcing is your friend.
5. Set tangible goals.
All good advice for the budding entrepreneur and you don't need to be a 30-something 'whizz-kid' to create a new business. Many people in their 50's and 60's have started very successful enterprises. Tip number 5 above is particularly relevant to the older generation considering a small business to supplement their pensions.
The goals you set have to be tangible, but they also have to be achievable and fit within your time frame. No point is setting unrealistic goals about building a significant enterprise if you only want to work three days a week for the next five years.
If you're thinking about starting a small business to pay for a few of life's little luxuries, you could do far worse than join the members of the Retirement Revenue community. You can see their website here.
There's a piece in the City section by enterprise expert Rachel Bridge offering her tips about how to get the maximum return from a business start-up. I think they're worthy of greater consideration so, to get you thinking, I've repeated the headlines here:
1. Make your start-up easy to sell.
2. Don't borrow if you can avoid it.
3. Do something you understand.
4. Outsourcing is your friend.
5. Set tangible goals.
All good advice for the budding entrepreneur and you don't need to be a 30-something 'whizz-kid' to create a new business. Many people in their 50's and 60's have started very successful enterprises. Tip number 5 above is particularly relevant to the older generation considering a small business to supplement their pensions.
The goals you set have to be tangible, but they also have to be achievable and fit within your time frame. No point is setting unrealistic goals about building a significant enterprise if you only want to work three days a week for the next five years.
If you're thinking about starting a small business to pay for a few of life's little luxuries, you could do far worse than join the members of the Retirement Revenue community. You can see their website here.
Thursday, June 17, 2010
MILLIONS HEADING FOR IMPOVERISHED RETIREMENT
There’s been some pretty scary news from an outfit called Partnership. According to them (they specialise in annuities and long-term care), millions of UK workers are heading for an impoverished retirement. Partnership have revealed the extent of a savings black hole that will leave millions of pensioners trying to survive on less than £10,000 a year.
It’s pretty obvious that people are not saving anywhere near enough for their retirement years.
Apparently, almost 90% of all pension pots are less than £50,000 and over the six years to 2009, 77% of all annuity transactions have been for less than £30,000.
Philip Brown, Partnership’s Head of Retirement Products, said: “Put simply, our figures show that most average men and women retiring in the UK today can look forward to a State pension of under £6,000 per year, plus a private pension of around £2,000 a year.
He went on to warn that “Today’s average wage for men and women is hovering around £26,000, so in other words they will be obliged to live on a reduction in income of up to 70% when they stop work”.
Either we’re going to have to work far longer than we expected or we are going to have to come up with some other way of supplementing our retirement income.
The Retirement Revenue website offers a range of ideas for earning money in retirement and it’s well worth a look. You can get there from here.
Be well.
It’s pretty obvious that people are not saving anywhere near enough for their retirement years.
Apparently, almost 90% of all pension pots are less than £50,000 and over the six years to 2009, 77% of all annuity transactions have been for less than £30,000.
Philip Brown, Partnership’s Head of Retirement Products, said: “Put simply, our figures show that most average men and women retiring in the UK today can look forward to a State pension of under £6,000 per year, plus a private pension of around £2,000 a year.
He went on to warn that “Today’s average wage for men and women is hovering around £26,000, so in other words they will be obliged to live on a reduction in income of up to 70% when they stop work”.
Either we’re going to have to work far longer than we expected or we are going to have to come up with some other way of supplementing our retirement income.
The Retirement Revenue website offers a range of ideas for earning money in retirement and it’s well worth a look. You can get there from here.
Be well.
Monday, June 14, 2010
Back from the wine
I'm back home now after a little sojourn to St Emilion in the Bordeaux region of France. A very pleasant few days enjoying the weather, the town and the wine. If you've never been to St Emilion you should put it on your list of places to see. It dates back to the 8th century and contains a massive underground church dug out of the rock by Benedictine monks. Fascinating.
The wine, of course, is famous throughout the world and 2009 was an exceptional year for the region. Prices are almost certain to increase over time, so it might be worth buying some if you have a long-ish term view of investments. You'll probable need to hold it for five years or so to get the best return. Of course, you'll also have to store it or arrange for it to be stored by your wine merchant. Berry Brothers and Rudd in London are very good.
I did a short article about investing in wine a while back and you can still see a copy on this link: http://bit.ly/9niaN9
The great thing about investing in wine is that if it doesn't make you a handsome profit, you can always drink it. Gives a whole new meaning to liquid assets doesn't it!
Cheers.
The wine, of course, is famous throughout the world and 2009 was an exceptional year for the region. Prices are almost certain to increase over time, so it might be worth buying some if you have a long-ish term view of investments. You'll probable need to hold it for five years or so to get the best return. Of course, you'll also have to store it or arrange for it to be stored by your wine merchant. Berry Brothers and Rudd in London are very good.
I did a short article about investing in wine a while back and you can still see a copy on this link: http://bit.ly/9niaN9
The great thing about investing in wine is that if it doesn't make you a handsome profit, you can always drink it. Gives a whole new meaning to liquid assets doesn't it!
Cheers.
Tuesday, May 18, 2010
I'M TURNING GREEN
Everyone's talking about 'green' issues these days. I'm sure that's a good thing and no sensible thinking person would argue against the principle, but there's usually a cost involved. Retired old bloggers like me are very cost conscious and protective of our limited retirement income. So we tend to like the idea of being green, but hate the expense.
I was therefore interested in an article I saw recently about how to be 'eco-friendly' when diving your car - seems to me that this is a contradiction in terms, but anyway, I read the article.
Now, I don't know about you, but I get thoroughly brassed off when 30-somethings tell us to walk or ride a bike. I enjoy a walk in the country for the pleasure of it and I'll even ride my old bike a bit - but not when I need to go to town or go shopping. There's no way I'm lugging my resuable bags of shopping back home on foot. Sorry, but at my age, I'll take the car (and no, there isn't a bus for miles).
Anyway, back to this article. The really interesting thing about it was that it explained how I could drive in an eco-friendly way that would also save me money - that gets my attention. In essence, it boiled down to Mazda's Smarter Motoring Tips, and I'm sure they won't mind if I reproduce them here:
1. Change up 'early' through the gears, just before the 'peak torque' rpm. (If you don't know what that means, ask a 30-something person).
2. Ease your acceleration and speed.
3. Anticipate to avoid unnecessary braking and stopping.
4. Use the air-conditioning sparingly as it increases fuel consumption.
5. Switch off the engine whenever it is safe to do so.
6. Check tyre pressures regulalry.
7. Remove unnecessary weight from the car.
8. Reduce aerodynamic drag from the car whenever possible, e.g. removing roof racks when not in use.
9. Follow the recommended servicing schedule.
Most of it's common sense I suppose, but it sometimes helps to see it written down.
Best not print this blog - save the trees.
Be well.
I was therefore interested in an article I saw recently about how to be 'eco-friendly' when diving your car - seems to me that this is a contradiction in terms, but anyway, I read the article.
Now, I don't know about you, but I get thoroughly brassed off when 30-somethings tell us to walk or ride a bike. I enjoy a walk in the country for the pleasure of it and I'll even ride my old bike a bit - but not when I need to go to town or go shopping. There's no way I'm lugging my resuable bags of shopping back home on foot. Sorry, but at my age, I'll take the car (and no, there isn't a bus for miles).
Anyway, back to this article. The really interesting thing about it was that it explained how I could drive in an eco-friendly way that would also save me money - that gets my attention. In essence, it boiled down to Mazda's Smarter Motoring Tips, and I'm sure they won't mind if I reproduce them here:
1. Change up 'early' through the gears, just before the 'peak torque' rpm. (If you don't know what that means, ask a 30-something person).
2. Ease your acceleration and speed.
3. Anticipate to avoid unnecessary braking and stopping.
4. Use the air-conditioning sparingly as it increases fuel consumption.
5. Switch off the engine whenever it is safe to do so.
6. Check tyre pressures regulalry.
7. Remove unnecessary weight from the car.
8. Reduce aerodynamic drag from the car whenever possible, e.g. removing roof racks when not in use.
9. Follow the recommended servicing schedule.
Most of it's common sense I suppose, but it sometimes helps to see it written down.
Best not print this blog - save the trees.
Be well.
Wednesday, May 12, 2010
A BIT SAD, BUT READ IT ANYWAY.
This is a bit sad, but at the same time I think that lots of people of my generation will be nodding sagely having read what follows.
An Obituary printed in the London Times.
Today we mourn the passing of a beloved old friend, Common Sense, who has been with us for many years. No one knows for sure how old he was, since his birth records were long ago lost in bureaucratic red tape.
He will be remembered as having cultivated such valuable lessons as:
- Knowing when to come in out of the rain;
- Why the early bird gets the worm;
- Life isn't always fair;
- and maybe it was my fault.
Common Sense lived by simple, sound financial policies (don't spend more than you can earn) and reliable strategies (adults, not children, are in charge).
His health began to deteriorate rapidly when well-intentioned but overbearing regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition.
Common Sense lost ground when parents attacked teachers for doing the job that they themselves had failed to do in disciplining their unruly children. It declined even further when schools were required to get parental consent to administer sun lotion or an aspirin to a student; but could not inform parents when a student became pregnant and wanted to have an abortion.
Common Sense lost the will to live as the churches became businesses; and criminals received better treatment than their victims. Common Sense took a beating when you couldn't defend yourself from a burglar in your own home and the burglar could sue you for assault.
Common Sense finally gave up the will to live, after a woman failed to realize that a steaming cup of coffee was hot. She spilled a little in her lap, and was promptly awarded a huge settlement. Common Sense was preceded in death, by his parents, Truth and Trust, by his wife, Discretion, by his daughter, Responsibility, and by his son, Reason.
He is survived by his 4 stepbrothers; I Know My Rights, I Want It Now, Someone Else Is To Blame, and I'm A Victim
Not many attended his funeral because so few realized he was gone. If you still remember him, pass this on. If not, join the majority and do nothing.
------------------------------------
There are facilities on the blog to make any comment you think might be appropriate on the death of a friend.
________________________________________
An Obituary printed in the London Times.
Today we mourn the passing of a beloved old friend, Common Sense, who has been with us for many years. No one knows for sure how old he was, since his birth records were long ago lost in bureaucratic red tape.
He will be remembered as having cultivated such valuable lessons as:
- Knowing when to come in out of the rain;
- Why the early bird gets the worm;
- Life isn't always fair;
- and maybe it was my fault.
Common Sense lived by simple, sound financial policies (don't spend more than you can earn) and reliable strategies (adults, not children, are in charge).
His health began to deteriorate rapidly when well-intentioned but overbearing regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition.
Common Sense lost ground when parents attacked teachers for doing the job that they themselves had failed to do in disciplining their unruly children. It declined even further when schools were required to get parental consent to administer sun lotion or an aspirin to a student; but could not inform parents when a student became pregnant and wanted to have an abortion.
Common Sense lost the will to live as the churches became businesses; and criminals received better treatment than their victims. Common Sense took a beating when you couldn't defend yourself from a burglar in your own home and the burglar could sue you for assault.
Common Sense finally gave up the will to live, after a woman failed to realize that a steaming cup of coffee was hot. She spilled a little in her lap, and was promptly awarded a huge settlement. Common Sense was preceded in death, by his parents, Truth and Trust, by his wife, Discretion, by his daughter, Responsibility, and by his son, Reason.
He is survived by his 4 stepbrothers; I Know My Rights, I Want It Now, Someone Else Is To Blame, and I'm A Victim
Not many attended his funeral because so few realized he was gone. If you still remember him, pass this on. If not, join the majority and do nothing.
------------------------------------
There are facilities on the blog to make any comment you think might be appropriate on the death of a friend.
________________________________________
Saturday, May 1, 2010
SUPPLEMENTING YOUR PENSION?
The world's gone mad. But then most of our generation knew that anyway.
How about this as an idea for supplementing your pension? Go to the the Victoria and Albert Museum and help yourself to some soup in their restaurant. Claim that you burnt your thumb in the process and they may award you £400.
Or how about trespassing at Carlisle Castle in the early hours of the morning (say about 2am) and falling into the moat? Have a go at this one and you could get £15,000 - that's about 3 years worth of the basic States Pension.
You might laugh, but both of these incidents actually happened according to a survey in the Sunday Telegraph.
Tourist attractions are having to pay out millions of pounds to visitors who have 'accidents' on their premises. Whatever happened to personal responsibility?
Now, of course, I'm not advocating anything so extreme as a way of increasing your pension or getting a retirement income going. Like I said, the world's gone mad.
Be well.
How about this as an idea for supplementing your pension? Go to the the Victoria and Albert Museum and help yourself to some soup in their restaurant. Claim that you burnt your thumb in the process and they may award you £400.
Or how about trespassing at Carlisle Castle in the early hours of the morning (say about 2am) and falling into the moat? Have a go at this one and you could get £15,000 - that's about 3 years worth of the basic States Pension.
You might laugh, but both of these incidents actually happened according to a survey in the Sunday Telegraph.
Tourist attractions are having to pay out millions of pounds to visitors who have 'accidents' on their premises. Whatever happened to personal responsibility?
Now, of course, I'm not advocating anything so extreme as a way of increasing your pension or getting a retirement income going. Like I said, the world's gone mad.
Be well.
Sunday, April 25, 2010
7 WAYS TO INCREASE YOUR PENSION
I went to fill up my car with diesel yesterday. To be honest, I'd been a bit remiss and had let it get so low that it was just about running on fumes. It's only a small car, but it cost me £48.00 (hate to think what a 4x4 costs to fill up). My car is an essential for me. I don't live on a convenient bus route and whilst I walk and cycle a bit, it's not so easy at my age. So this £48.00 was an essential spend for me, like it is for so many other people of my generation. £48.00 is pretty much a half of the basic State pension. That's a big chunk for every pensioner in this country, so I thought it might be useful if I came up with 7 ways of supplementing your pension. Here goes (in no particular order):-
1. Make sure you are claiming everything that you are entitled to from the Government. There's a free and comprehensive guide available from the Department for Work and Pensions. Click here to see a copy.
2. Start your own business (it's never too late) and you can work from home, part-time if you wish. There's a free eBook that will give you some ideas that you can download here.
3. Manage your money. If you just need some help managing your finances without any jargon or sales pitch, there's a Government backed website worth looking at here.
4. Keep working. Just because you've reached the so-called retirement age doesn't mean you have to give up working. There's a complimentary article about working in retirement you can find here.
5. Make a 27% return on your investment! This is a brief article that I wrote about in a previous blog, but it's important and worth repeating. You can see the blog here. Alternatively you can get the full details from this Government website.
6. Equity release. This can generate an income for you without having to move away from your home, but it should not be your first option. There's a free article about it here.
7. Share with someone else. OK, this is a bit tongue-in-cheek, but it makes sense. If you're living alone, think about renting out a room or maybe finding a new partner to move in with! If you're not sure how to go about it, have a look at this site for finding new friends.
Hope this helps.
Be well.
1. Make sure you are claiming everything that you are entitled to from the Government. There's a free and comprehensive guide available from the Department for Work and Pensions. Click here to see a copy.
2. Start your own business (it's never too late) and you can work from home, part-time if you wish. There's a free eBook that will give you some ideas that you can download here.
3. Manage your money. If you just need some help managing your finances without any jargon or sales pitch, there's a Government backed website worth looking at here.
4. Keep working. Just because you've reached the so-called retirement age doesn't mean you have to give up working. There's a complimentary article about working in retirement you can find here.
5. Make a 27% return on your investment! This is a brief article that I wrote about in a previous blog, but it's important and worth repeating. You can see the blog here. Alternatively you can get the full details from this Government website.
6. Equity release. This can generate an income for you without having to move away from your home, but it should not be your first option. There's a free article about it here.
7. Share with someone else. OK, this is a bit tongue-in-cheek, but it makes sense. If you're living alone, think about renting out a room or maybe finding a new partner to move in with! If you're not sure how to go about it, have a look at this site for finding new friends.
Hope this helps.
Be well.
Wednesday, April 21, 2010
HOW TO LOSE MONEY (1)
Imagine this. You're sitting in your favourite corner of the pub with your pint and the daily paper minding your own business (not too hard to imagine, really). A man you vaguely recognise comes over and interrupts your reading. He starts talking about investments and during the course of the conversation he asks you what percentage of your savings would you invest in a market that can frequently offer good returns of 10% or so, but has lost 50% of its value twice in the last 10 years?
Somethng similar to the above scenario actually happened to me quite recently. It didn't take me too long to work out that this sounded like a very high risk investment and really wasn't my thing. I said so, but the man insisted I think about it just for the sake of argument. And so I said that, if I had some spare risk capital (which I don't) that I didn't mind losing, I might put 10 or 20% of that into the sort of higher risk investment that he was presumably talking about.
He then asked me how much of my pension fund was invested in the UK stock market. The penny dropped. The FTSE has lost 50% of its value twice in 10 years. Makes you think, doesn't it?
Be well.
Somethng similar to the above scenario actually happened to me quite recently. It didn't take me too long to work out that this sounded like a very high risk investment and really wasn't my thing. I said so, but the man insisted I think about it just for the sake of argument. And so I said that, if I had some spare risk capital (which I don't) that I didn't mind losing, I might put 10 or 20% of that into the sort of higher risk investment that he was presumably talking about.
He then asked me how much of my pension fund was invested in the UK stock market. The penny dropped. The FTSE has lost 50% of its value twice in 10 years. Makes you think, doesn't it?
Be well.
Tuesday, April 13, 2010
POOR PENSIONS ADVICE
The Financial Services Authority (FSA) have started to stand up and be counted. They're actually throwing their weight around and fining companies and directors all over the place. Maybe it's something to do with the threat of disbandonment by the Tories if they win the election. Whatever the reason, it's not before time.
Recently they have turned their attention to some Independent Financial Advisers (IFAs) and some banks who are still giving poor advice to their clients about how, when and why to switch pension funds. The FSA undertook a major survey of pensions advice a couple of years ago and subsequently wrote to 4,500 firms giving details of the FSA's concerns.
22 firms remain on the FSA's watch list where "high levels of unsuitable advice" have been identified. Some firms have already been dealt with by the regulator, but it would appear that most of the 22 poor advisers may have to refund at least £150 million in compensation.
If you think that you have been given duff pensions advice you are recommended to complain to the adviser (IFA or bank) so that they can have a chance to put it right. If that fails you can use this link to find out what to do next:
http://www.moneymadeclear.fsa.gov.uk/HTML/en/products/pensions/pension_complaints_popup.htm
The site is part of the Money Made Clear scheme that is run by the FSA for the benefit of the consumer.
Life is hard enough without being given poor advice by professionals.
Be well.
Recently they have turned their attention to some Independent Financial Advisers (IFAs) and some banks who are still giving poor advice to their clients about how, when and why to switch pension funds. The FSA undertook a major survey of pensions advice a couple of years ago and subsequently wrote to 4,500 firms giving details of the FSA's concerns.
22 firms remain on the FSA's watch list where "high levels of unsuitable advice" have been identified. Some firms have already been dealt with by the regulator, but it would appear that most of the 22 poor advisers may have to refund at least £150 million in compensation.
If you think that you have been given duff pensions advice you are recommended to complain to the adviser (IFA or bank) so that they can have a chance to put it right. If that fails you can use this link to find out what to do next:
http://www.moneymadeclear.fsa.gov.uk/HTML/en/products/pensions/pension_complaints_popup.htm
The site is part of the Money Made Clear scheme that is run by the FSA for the benefit of the consumer.
Life is hard enough without being given poor advice by professionals.
Be well.
Sunday, April 4, 2010
SAGA LOUTS
Back in January 2007, the Independent reported on a survey of 1,500 people over 65 who had been asked if they had any regrets. 70% wished they'd had more sex; 57% wished they'd travelled more; 45% wished they had quit their jobs and changed profession.
So this blog is about travel (yes, I thought about the other one, but don't have enough experience) and if you want to quit your job, go to the Retirement Revenue website.
If you thought that 'Gap-Year' travel was the exclusive preserve of hairy un-washed teenagers with a backpack and a pocket full of condoms wandering around India, you'd be wrong. They reckon there are upwards of 200,000 'baby-boomer' gappers in the UK. They are referred to in the travel trade as 'Saga louts' or, even worse, 'denture venturers' and they are big business.
The idea of taking a year out really appeals to a lot of people in our age bracket, we were after all, the hippies of the 60's. Some will have few bob by now and want to go round the world in a bit of style, typically spending over £5,000 each. They may have financed part of their trip by letting the house out or cashing in some of their pension or just spending some of the children's inheritance.
Others may want to do some volunteering and find themselves helping to build a school in Africa or bringing water to a remote bit of scorched earth, Worthwhile, rewarding and giving something back.
If you fancy turning the tables on your children by having your own gap-year and letting them have all the worry you'll need to do some research. You could start by trying http://www.gapadvice.org/in-retirement, an excellent website with loads of advice for grey-gappers. I have no connection with them, but recommend them anyway!
Be well.
So this blog is about travel (yes, I thought about the other one, but don't have enough experience) and if you want to quit your job, go to the Retirement Revenue website.
If you thought that 'Gap-Year' travel was the exclusive preserve of hairy un-washed teenagers with a backpack and a pocket full of condoms wandering around India, you'd be wrong. They reckon there are upwards of 200,000 'baby-boomer' gappers in the UK. They are referred to in the travel trade as 'Saga louts' or, even worse, 'denture venturers' and they are big business.
The idea of taking a year out really appeals to a lot of people in our age bracket, we were after all, the hippies of the 60's. Some will have few bob by now and want to go round the world in a bit of style, typically spending over £5,000 each. They may have financed part of their trip by letting the house out or cashing in some of their pension or just spending some of the children's inheritance.
Others may want to do some volunteering and find themselves helping to build a school in Africa or bringing water to a remote bit of scorched earth, Worthwhile, rewarding and giving something back.
If you fancy turning the tables on your children by having your own gap-year and letting them have all the worry you'll need to do some research. You could start by trying http://www.gapadvice.org/in-retirement, an excellent website with loads of advice for grey-gappers. I have no connection with them, but recommend them anyway!
Be well.
Friday, April 2, 2010
AGE DISCRIMINATION
For about 4 years now it has been illegal for employers to discriminate against those of us of more mature years on account of our age. Since October 2006 to be precise.
Now, I'm a retired old blogger, so it doesn't really apply to me, but I thought it worth mentioning for the sake of my more youthful readers. It doesn't just apply to jobs and recruitment. Your employer cannot discriminate against you (on account of your age) when it comes to promotion or training either.
Another thing that's worth knowing is that, provided you are still physically capable and you've still got all your marbles and therefore are capable of doing the job, they can't oblige you to retire before the 'default' retirement age. This is currently 65, but keep an eye on the politics, because this is likely to change anytime soon.
If you would like to postpone your retirement and carry on working beyond your normal retirement age, your employer has a legal duty to consider your request. If they want you to retire at 65 (or whatever the 'default' age is) they will have to give you 6 months notice of that decision.
If you're unsure of your rights have a word with your HR department, or go and chat to those nice people at Citizens Advice.
Be well.
Now, I'm a retired old blogger, so it doesn't really apply to me, but I thought it worth mentioning for the sake of my more youthful readers. It doesn't just apply to jobs and recruitment. Your employer cannot discriminate against you (on account of your age) when it comes to promotion or training either.
Another thing that's worth knowing is that, provided you are still physically capable and you've still got all your marbles and therefore are capable of doing the job, they can't oblige you to retire before the 'default' retirement age. This is currently 65, but keep an eye on the politics, because this is likely to change anytime soon.
If you would like to postpone your retirement and carry on working beyond your normal retirement age, your employer has a legal duty to consider your request. If they want you to retire at 65 (or whatever the 'default' age is) they will have to give you 6 months notice of that decision.
If you're unsure of your rights have a word with your HR department, or go and chat to those nice people at Citizens Advice.
Be well.
Friday, March 26, 2010
Yahoo Catches Up with the Old Blogger!
Not that I want to crow about it you understand, but back on March 8th I brought to your attention a way of making a 27% return. Scroll down on the blog page and you'll see the item headed "How Can I Get More Interest?". In fact it's still featured on the Home page of the Retirement Revenue website.
It's gratifying to note that Yahoo Finance have published a very similar article - on 23rd March. They have obviously done their sums as well (one supposes) because they came up with exactly the same number (27%) that was published here more than two weeks earlier. I wonder where they got the idea from? Probably nothing to do with me, but it's an interesting idea to think that Yahoo might be reading this blog as well as you!
Original thinking from the Retired Old Blogger!
You read it here first.
It's gratifying to note that Yahoo Finance have published a very similar article - on 23rd March. They have obviously done their sums as well (one supposes) because they came up with exactly the same number (27%) that was published here more than two weeks earlier. I wonder where they got the idea from? Probably nothing to do with me, but it's an interesting idea to think that Yahoo might be reading this blog as well as you!
Original thinking from the Retired Old Blogger!
You read it here first.
How can I get more interest?
Interest rates on my meagre savings are damn near zero. In fact, when you take inflation into account, I'm actually losing money. My savings are depreciating at a faster rate than my interest is adding to the original amount.
This is crazy. The frightening thing is that it's not going to improve anytime soon. I used to rely on my bank interest to supplement my miserably small pension. Not any more. So I started wondering what I could do about it. Somehow I have to earn more than the 1 - 2% that I'm getting in bank interest, but I am scared silly about putting my few savings at risk.
I've thought about putting a bit on one side and maybe taking a punt on the currency markets, because I can't help feeling that sterling is down the tubes and that I should be hedging my bets by investing in some other currency. But then I think that I'm just gambling and most people lose money gambling. Instead of currencies I thought about buying gold, but it can be a bit of a hassle unless you buy an Exchange Traded Fund (ETF) that's physically backed by the commodity. Anyway, I've probably missed that particular boat by now.
The final thought was buying shares in foreign companies. Some research will produce a few jems that could make a capital gain and, at the same time, generate a much higher income (by way of dividends) than I'me getting in bank interest. They might also make a gain in currency terms. One such company would be France Telecom. This is the third largest telecoms company in Europe. Right now it's returning 7.9% on a price/earnings ratio of just about 10.
Worth a thought - but please make your own decisions, I'm no investment guru that's for sure.
This is crazy. The frightening thing is that it's not going to improve anytime soon. I used to rely on my bank interest to supplement my miserably small pension. Not any more. So I started wondering what I could do about it. Somehow I have to earn more than the 1 - 2% that I'm getting in bank interest, but I am scared silly about putting my few savings at risk.
I've thought about putting a bit on one side and maybe taking a punt on the currency markets, because I can't help feeling that sterling is down the tubes and that I should be hedging my bets by investing in some other currency. But then I think that I'm just gambling and most people lose money gambling. Instead of currencies I thought about buying gold, but it can be a bit of a hassle unless you buy an Exchange Traded Fund (ETF) that's physically backed by the commodity. Anyway, I've probably missed that particular boat by now.
The final thought was buying shares in foreign companies. Some research will produce a few jems that could make a capital gain and, at the same time, generate a much higher income (by way of dividends) than I'me getting in bank interest. They might also make a gain in currency terms. One such company would be France Telecom. This is the third largest telecoms company in Europe. Right now it's returning 7.9% on a price/earnings ratio of just about 10.
Worth a thought - but please make your own decisions, I'm no investment guru that's for sure.
Monday, March 15, 2010
Nine Million People Can't be Wrong
When you learn that the government has spent 60% more on the National Health Service over the last 10 years you think, "OK, credit where it's due. That sounds pretty good." Then you learn that productivity in the NHS has actually fallen by 4% over the same period.
Hang on. How can that be? How can expenditure go up by 60% and productivity fall by 4%. If you were in business you'd go broke in no time. If you were a manager with that kind of record you'd probably get sacked for incompetence. And yet the NHS, that you and I pay for, gets away with it.
It transpires that 2/3 (yes, that 66%) of all the new money has gone on pay deals and additional managers. Suddenly the government doesn't look too good any more.
According to a statistic I read in Money Week, nine million people of my generation - the over 55's - are thinking about leaving the country to go and live somewhere else. I never quite understood how they work out these statistics, nobody asked me, but if that's correct, it's a sad reflection on the mood of the older generation and nine million people can't be wrong, can they?
Actually, they might be thinking about it, but not many will go through with it. For a start the pound has fallen to such low levels against just about every other currency (it even fell against the Zimbabwian dollar) that moving abroad is an expensive business. Living costs will therefore be that much higher because we are going to be taking our pension in sterling and buying our food in Euros or whatever. So we might want to move out, but just at the moment it doesn't make economic sense, so we're stuck.
May as well stay put and try and make some extra money. Perhaps start a business in our spare time working from home, or maybe get a part-time job. There's a web site that will give you some ideas about how to get started: http://retirementrevenue.co.uk
Hang on. How can that be? How can expenditure go up by 60% and productivity fall by 4%. If you were in business you'd go broke in no time. If you were a manager with that kind of record you'd probably get sacked for incompetence. And yet the NHS, that you and I pay for, gets away with it.
It transpires that 2/3 (yes, that 66%) of all the new money has gone on pay deals and additional managers. Suddenly the government doesn't look too good any more.
According to a statistic I read in Money Week, nine million people of my generation - the over 55's - are thinking about leaving the country to go and live somewhere else. I never quite understood how they work out these statistics, nobody asked me, but if that's correct, it's a sad reflection on the mood of the older generation and nine million people can't be wrong, can they?
Actually, they might be thinking about it, but not many will go through with it. For a start the pound has fallen to such low levels against just about every other currency (it even fell against the Zimbabwian dollar) that moving abroad is an expensive business. Living costs will therefore be that much higher because we are going to be taking our pension in sterling and buying our food in Euros or whatever. So we might want to move out, but just at the moment it doesn't make economic sense, so we're stuck.
May as well stay put and try and make some extra money. Perhaps start a business in our spare time working from home, or maybe get a part-time job. There's a web site that will give you some ideas about how to get started: http://retirementrevenue.co.uk
Monday, March 8, 2010
Make a 27% Return!
I've had a letter from those very nice people at HMRC.
It seems that I'm entitled to something called Graduated Retirement Benefit. I haven't actually worked for the past 6 years and so haven't paid any National Insurance, but it seems that I can voluntarily make Class 3 payments of £626.60 a year to effectively 'buy back' these missing years.
Now I'm no mathemetician, but I got out my pencil and did some sums.
In April the basic states pension goes up to £5,077.80 a year. According to the rules, each year I pay for entitles me to 1/30th of the full pension. So, for £626.60 I get back £169.26 a year. I work that out to be a return of 27%.
This is what my grandchildren call a 'no brainer'.
Be well.
It seems that I'm entitled to something called Graduated Retirement Benefit. I haven't actually worked for the past 6 years and so haven't paid any National Insurance, but it seems that I can voluntarily make Class 3 payments of £626.60 a year to effectively 'buy back' these missing years.
Now I'm no mathemetician, but I got out my pencil and did some sums.
In April the basic states pension goes up to £5,077.80 a year. According to the rules, each year I pay for entitles me to 1/30th of the full pension. So, for £626.60 I get back £169.26 a year. I work that out to be a return of 27%.
This is what my grandchildren call a 'no brainer'.
Be well.
Thursday, March 4, 2010
How to Benefit from FX Without Trading Currencies
Foreign Exchange (FX) trading is not everyone's cup of tea. I have been known to dabble in it, but I'm not hugely enthusiastic and I'll tell you why. Time. FX traders don't buy-and-hold currency as you might do with shares. You take a punt. It's a gamble, a bet. The market is massive and it's massively volatile and so you need to keep a very watchful eye on the charts and be prepared to move quickly. Moving quickly is not something I do well, not at my age.
I can hear the howls of protest from swing traders and trend followers around the world, but currencies bounce around all over the place and stop-losses get hit with alarming regularity, even when a currency is trending strongly.
So, if you think that sterling is in long-term decline (and I wouldn't disagree), how do you benefit from that trend without shorting the pound? Well, you could buy gold or, better still, buy a fund that follows gold mining companies. The other alternative is to buy companies that trade on the London Stock Exchange, but that make most of their money elewhere in the world. Don't just buy any old company - you still need to do some research and remember one of Warren Buffett's great sayings: “It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”
By the way, please don't take this as advice - what do I know? I'm just passing on the benefit of my experience.
Trade well and take your time.
I can hear the howls of protest from swing traders and trend followers around the world, but currencies bounce around all over the place and stop-losses get hit with alarming regularity, even when a currency is trending strongly.
So, if you think that sterling is in long-term decline (and I wouldn't disagree), how do you benefit from that trend without shorting the pound? Well, you could buy gold or, better still, buy a fund that follows gold mining companies. The other alternative is to buy companies that trade on the London Stock Exchange, but that make most of their money elewhere in the world. Don't just buy any old company - you still need to do some research and remember one of Warren Buffett's great sayings: “It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”
By the way, please don't take this as advice - what do I know? I'm just passing on the benefit of my experience.
Trade well and take your time.
Tuesday, March 2, 2010
How Much to Retire?
It has to be said that I’m not a great fan of Twitter (or Facebook and the others), but I’m told it’s because I’m a Grumpy Old Man who doesn’t understand social networking. I don’t think that’s strictly true. I think it’s more that I have no interest in knowing that Alice has a hangover or that John’s cat just caught a mouse.
However, there are occasional snippets of valuable information and Retirementdosh recently posted a good example. They said that in order to have £1 million pounds in 20 years time you would need to save £3,962 per month. That struck me as being a huge amount that is well beyond the scope of most people. There can’t be many 40 year olds planning on retiring at 60 that can afford to put away the best part of £4,000 per month – I dare say most people of that age don’t earn four grand a month. So I thought I’d look into it in a bit more detail.
It turns out that this is all to do with real bottom line return on investments and the unreal expectations that we tend to have. Most of us think that we should be getting a 5% or 6% return on our investments. Except, that is, for a professor at the London Business School by the name of Elroy Dimson (honest). He, according to Money Week, is an expert on market returns and reckons that the net-net-net return is only a half of one percent. He’s obviously allowed for all the costs involved in investing; bid-offer spreads, income tax, capital gains tax, stamp duty, inflation and the fact that we don’t put all our savings into stocks and shares anyway.
If he’s right, and logic suggests that he is, the vast majority of people are going to have a fairly bleak retirement. Especially so when you consider that today’s 40 year old is going to live a lot longer than today’s Grumpy Old Men.
You’re going to need more income when you officially retire and you need to start thinking about it now. Check out the web site for some ideas: http://bit.ly/apWC4h.
However, there are occasional snippets of valuable information and Retirementdosh recently posted a good example. They said that in order to have £1 million pounds in 20 years time you would need to save £3,962 per month. That struck me as being a huge amount that is well beyond the scope of most people. There can’t be many 40 year olds planning on retiring at 60 that can afford to put away the best part of £4,000 per month – I dare say most people of that age don’t earn four grand a month. So I thought I’d look into it in a bit more detail.
It turns out that this is all to do with real bottom line return on investments and the unreal expectations that we tend to have. Most of us think that we should be getting a 5% or 6% return on our investments. Except, that is, for a professor at the London Business School by the name of Elroy Dimson (honest). He, according to Money Week, is an expert on market returns and reckons that the net-net-net return is only a half of one percent. He’s obviously allowed for all the costs involved in investing; bid-offer spreads, income tax, capital gains tax, stamp duty, inflation and the fact that we don’t put all our savings into stocks and shares anyway.
If he’s right, and logic suggests that he is, the vast majority of people are going to have a fairly bleak retirement. Especially so when you consider that today’s 40 year old is going to live a lot longer than today’s Grumpy Old Men.
You’re going to need more income when you officially retire and you need to start thinking about it now. Check out the web site for some ideas: http://bit.ly/apWC4h.
Sunday, February 28, 2010
We're Going to Need More Cash.
Whenever the election is called, and regardless of the colour of the chameleon party that wins, the fact is that we are all going to suffer. Everyone knows that you can't keep on borrowing to sustain an unsustainable lifesstyle. Sooner or later you have to pay it back. To do that, you have to make savings or generate more income. There are no other choices (apart from going bankrupt and that's not an option for the UK government). So the next government will have to make cuts in expenditure and raise taxes. This is not theoretical economics, this is housekeeping. Simple budgeting that every small business owner and housewife understands.
We don't do party politics on this blog and I'm not going to suggest you vote one way or the other, but you should definitely vote. I just want to point out that, whoever wins the election, they will have to take serious action over the budget shortfall. That means we are all going to have to pay more and that some of us will lose our job. That's the stark reality and it's a lot harder to find a new job if you're over 50.
Not many of us have saved enough for our retirement and either the loss of our job or increased taxation are going to make it harder to save anything at all. However, let's not get depressed about it, let's start looking at our options now and make plans for the future. We have to look after ourselves and that means we have to look at all possible ways of increasing our income. We need to make sure that we're paying the minimum amount of tax that we legally can (do you have an ISA?); make the best return on any savings we might have (standard rate tax payers need a return of 4.4% to be ahead of the game); and/or, we need to earn more. That may mean taking on a second job, perhaps part-time, or starting a small business from home.
Do it now - before the election. Retirement Revenue can help you get started.
Be well.
We don't do party politics on this blog and I'm not going to suggest you vote one way or the other, but you should definitely vote. I just want to point out that, whoever wins the election, they will have to take serious action over the budget shortfall. That means we are all going to have to pay more and that some of us will lose our job. That's the stark reality and it's a lot harder to find a new job if you're over 50.
Not many of us have saved enough for our retirement and either the loss of our job or increased taxation are going to make it harder to save anything at all. However, let's not get depressed about it, let's start looking at our options now and make plans for the future. We have to look after ourselves and that means we have to look at all possible ways of increasing our income. We need to make sure that we're paying the minimum amount of tax that we legally can (do you have an ISA?); make the best return on any savings we might have (standard rate tax payers need a return of 4.4% to be ahead of the game); and/or, we need to earn more. That may mean taking on a second job, perhaps part-time, or starting a small business from home.
Do it now - before the election. Retirement Revenue can help you get started.
Be well.
Thursday, February 18, 2010
Work Anywhere
My wife and I are lucky enough to have a motorhome (or a camping car if you're reading this in French). Actually we've just swapped our old one for a nice shiny new one. Not that we meant to. We had brought our 'van' in for a service that was going to take all day, so we wandered around the showroom in that slightly bored, mildly inquisitive,'wonder what that one's like inside', kind of way. Well, tucked away in one corner of the showroom was this unregistered last year's model - bargain. We struck a deal with the salesman; bit of haggling, but he was a nice man and we ended up with a new motorhome.
Trouble is it would take 3 - 4 days to sort everything out, so we decided to stay on site while they dealt with all the bits and pieces that need to happen on these occasions. Fortunately they had Wi-Fi on the site.
The point is that, although I'm sort-of retired, I did get an idea for a part-time business from the Retirement Revenue website and I can do almost all of the work involved either over the internet or by phone. It's great! I can work from anywhere that I can connect up to the internet. Camp site, hotel, Starbucks, or even via the mobile network. So I can enjoy the freedom that comes from my semi-retired status and travel around in the new van, but still run a small business that supplements the modest pension. Happy days!
Have a look at the Retirement Revenue website and see if you can pick up an idea to make yourself a bit of extra cash without sacrificing your freedom to roam. Here's the link. http://retirementrevenue.co.uk.
Be well.
Trouble is it would take 3 - 4 days to sort everything out, so we decided to stay on site while they dealt with all the bits and pieces that need to happen on these occasions. Fortunately they had Wi-Fi on the site.
The point is that, although I'm sort-of retired, I did get an idea for a part-time business from the Retirement Revenue website and I can do almost all of the work involved either over the internet or by phone. It's great! I can work from anywhere that I can connect up to the internet. Camp site, hotel, Starbucks, or even via the mobile network. So I can enjoy the freedom that comes from my semi-retired status and travel around in the new van, but still run a small business that supplements the modest pension. Happy days!
Have a look at the Retirement Revenue website and see if you can pick up an idea to make yourself a bit of extra cash without sacrificing your freedom to roam. Here's the link. http://retirementrevenue.co.uk.
Be well.
Tuesday, February 9, 2010
Rogue Tax Codes
As if pensioners didn't have enough to worry about, it has been brought to my attention that HMRC have sent out thousands of wrong tax codes to retired people in the UK. Nobody seems to know how big a problem this is, but it certainly seems big enough to me. Some people could be faced with paying more than £1,000 extra tax in a year.
As usual in these cases, it's being blamed on a new computer system and HMRC are unable to say how many people might have been sent the wrong code.
I don't know about you, but I'm finding it hard enough to manage on my limited resources without this kind of extra worry and uncertainty. At least I have been able to make a few extra shillings by writing one or two articles based on advice I got from the Retirement Revenue website. No doubt HMRC will want their share of that too.
Keep taking the pills!
As usual in these cases, it's being blamed on a new computer system and HMRC are unable to say how many people might have been sent the wrong code.
I don't know about you, but I'm finding it hard enough to manage on my limited resources without this kind of extra worry and uncertainty. At least I have been able to make a few extra shillings by writing one or two articles based on advice I got from the Retirement Revenue website. No doubt HMRC will want their share of that too.
Keep taking the pills!
Monday, February 1, 2010
New Feature on Web Site
The Retirement Revenue web site has introduced a new facility that provides a number of additional free features. There's a free eBook that gives some ideas for what might be described as 'old fashioned' business ideas. These are ideas, aimed at the 50+ age group, for starting a business from home either full or part-time. It also gives some useful links to other sites relating to the business opportunity in question.
Also free is the Newsletter which is described as 'irregular' and only issued when the editor has something of interest to report. That makes a refreshing change; I get so hacked off when I get bombarded by so-called newsletters that are actually trying to sell me something.
Whilst this is a membership site there is currently a half-price offer and a huge amount of information and service is available completely free, including the comprehensive shopping section.
Anyway, I reckon the site's worth more than just a cursory look. You can get through with this link:
http://www.retirementrevenue.co.uk/
Keep taking the pills!
Also free is the Newsletter which is described as 'irregular' and only issued when the editor has something of interest to report. That makes a refreshing change; I get so hacked off when I get bombarded by so-called newsletters that are actually trying to sell me something.
Whilst this is a membership site there is currently a half-price offer and a huge amount of information and service is available completely free, including the comprehensive shopping section.
Anyway, I reckon the site's worth more than just a cursory look. You can get through with this link:
http://www.retirementrevenue.co.uk/
Keep taking the pills!
Tuesday, January 26, 2010
Changes to working practices?
Older workers should not be forced to retire at 65. As the country comes out of recession we face a very real threat of not having enough workers. This is the view of Baroness Margaret Prosser, deputy chair of the Equality and and Human Rights Commission (EHRC).
Hear, hear, the Rertired Old Blogger cries. Forcing people to retire at a specified age (currently 60 for women and 65 for men, but changing to 65 for both by 2020) is a nonsense and creates problems for the economy. There's a loss of skills and a pending pensions crisis that can only get worse.
Research conducted by EHRC found that 24% of men and 64% of women plan to continue working after they reach the official retirement age. All this has prompted the EHRC to come up with proposals for a complete change to employment practices.
They have woken up to the fact that today's population is moving away from systems established when people pegged out shortly after retiring and wives didn't work.
Nowadays, pensions are barely adequate and have to last a lot longer. The vast majority of people will need to be earning well beyond their 'official' retirement age. Good thing the Retirement Revenue website is their to help them out.
CLICK HERE to go to the Retirement Revenue Website
Hear, hear, the Rertired Old Blogger cries. Forcing people to retire at a specified age (currently 60 for women and 65 for men, but changing to 65 for both by 2020) is a nonsense and creates problems for the economy. There's a loss of skills and a pending pensions crisis that can only get worse.
Research conducted by EHRC found that 24% of men and 64% of women plan to continue working after they reach the official retirement age. All this has prompted the EHRC to come up with proposals for a complete change to employment practices.
They have woken up to the fact that today's population is moving away from systems established when people pegged out shortly after retiring and wives didn't work.
Nowadays, pensions are barely adequate and have to last a lot longer. The vast majority of people will need to be earning well beyond their 'official' retirement age. Good thing the Retirement Revenue website is their to help them out.
CLICK HERE to go to the Retirement Revenue Website
Tuesday, January 19, 2010
MAGIC BOXES
I had lunch with a friend of mine a couple of weeks back, John. I say lunch, it was a pie and a pint, but welcome for all that. Anyway, John started telling me about this software programme that automated foreign exchange trading. John, being a bit of a punter, thought he'd give it a go and signed up. He opened an account with a respected spread betting company, funded it and loaded up the programme.
"It's magic," he said. "Don't have to do anything. The programme works on a particular currency pair over a specified time frame, analyses loads of data and then decides when to trade. It automatically sets profit limits and stop losses." He went on in full praise, "I've been running it for about 10 days and it's made me about £250. It just creams off a few pips, not big money, but each trade seems to make between £15 and £35."
Now I don't know about you, but I don't like the idea of handing over control of my finances to a black box where I have no real control over what it's doing. The value of a currency can either go up or go down - it rarely stays the same for long. You can win either way, but you can also lose either way. So, to state the blindingly obvious, you need more winners than losers AND your winners should have a higher monetary value than your losers. If this all sounds a bit confusing the Retirement Revenue website had a decent article on the subject the last time I looked and their free eBook also has a chapter on spread betting. It's not rocket science, but it's worth a look.
Anyway, I saw John in the pub again yesterday. He wasn't quite so happy. His programme had continued to make a few pounds on most trades, but then a couple of nights ago it lost the best part of £1,000 on one disastrous trade. He was so emotionally devastated by this that he shut the programme down straight away.
You see, many of these programmes operate by setting the profit target quite close to the original trade price and therefore just take a few pounds per trade. But, they have a stop loss that is miles away 'to give the trade some breathing room'. Trouble is, if the trade goes badly against you and hits the stop loss, you are seriously out of pocket. In John's case, his 'system' had made 17 successful trades at an average of £24 per trade for a profit of £408. However, he had one, just one, loosing trade that cost him the best part of £1,000.
I reckon that if you want to trade currencies, or shares or oil or frilly knickers, you have to have a basic understanding of the market, whether that's the Foreign Exchange market, the Stock Exchange or Petticoat Lane. If someone offers you a 'magic box' with an 80% success rate - think on.
"It's magic," he said. "Don't have to do anything. The programme works on a particular currency pair over a specified time frame, analyses loads of data and then decides when to trade. It automatically sets profit limits and stop losses." He went on in full praise, "I've been running it for about 10 days and it's made me about £250. It just creams off a few pips, not big money, but each trade seems to make between £15 and £35."
Now I don't know about you, but I don't like the idea of handing over control of my finances to a black box where I have no real control over what it's doing. The value of a currency can either go up or go down - it rarely stays the same for long. You can win either way, but you can also lose either way. So, to state the blindingly obvious, you need more winners than losers AND your winners should have a higher monetary value than your losers. If this all sounds a bit confusing the Retirement Revenue website had a decent article on the subject the last time I looked and their free eBook also has a chapter on spread betting. It's not rocket science, but it's worth a look.
Anyway, I saw John in the pub again yesterday. He wasn't quite so happy. His programme had continued to make a few pounds on most trades, but then a couple of nights ago it lost the best part of £1,000 on one disastrous trade. He was so emotionally devastated by this that he shut the programme down straight away.
You see, many of these programmes operate by setting the profit target quite close to the original trade price and therefore just take a few pounds per trade. But, they have a stop loss that is miles away 'to give the trade some breathing room'. Trouble is, if the trade goes badly against you and hits the stop loss, you are seriously out of pocket. In John's case, his 'system' had made 17 successful trades at an average of £24 per trade for a profit of £408. However, he had one, just one, loosing trade that cost him the best part of £1,000.
I reckon that if you want to trade currencies, or shares or oil or frilly knickers, you have to have a basic understanding of the market, whether that's the Foreign Exchange market, the Stock Exchange or Petticoat Lane. If someone offers you a 'magic box' with an 80% success rate - think on.
Sunday, January 17, 2010
Pensions Black Hole
There's a stark warning by Steve Webb, Liberal Democrat Shadow Works and Pensions Secretary, that council tax will rise to plug the looming £60 billion (yes, billion) hole in local government pensions. According to a report in the Telegraph, fund managers in charge of local government pensions revealed that 83 out of 87 schemes were in deficit in 2007.
According to the Telegraph, Mr Wbb said that millions of people could be faced with cuts to vital services and council tax hikes, hitting pensioners especially hard.
Apparently, town hall pensions are costing every taxpaying household almost £300 per year. That sounds like a huge amount to me that isn't being spent on cleaning the streets or emptying the bins.
The government claims that the size of the deficit is just speculation and the Unite Union has said that the Liberal Democrats forecast is "far removed from financial reality."
Still, it's food for thought isn't it. Even if the 'black hole' was a smaller percentage of the amount claimed by Mr Webb, the question still remains as to how it's going to be filled. Someone, somewhere is going to have to pay.
For information about supplementing your own pension, visit the Retirement Revenue website.
According to the Telegraph, Mr Wbb said that millions of people could be faced with cuts to vital services and council tax hikes, hitting pensioners especially hard.
Apparently, town hall pensions are costing every taxpaying household almost £300 per year. That sounds like a huge amount to me that isn't being spent on cleaning the streets or emptying the bins.
The government claims that the size of the deficit is just speculation and the Unite Union has said that the Liberal Democrats forecast is "far removed from financial reality."
Still, it's food for thought isn't it. Even if the 'black hole' was a smaller percentage of the amount claimed by Mr Webb, the question still remains as to how it's going to be filled. Someone, somewhere is going to have to pay.
For information about supplementing your own pension, visit the Retirement Revenue website.
Monday, January 4, 2010
What's in Store?
Well, here we are. Not just at the start of a new year, but the beginning of a new decade. 2010 is also the year that we launch the Retirement Revenue website (actually on January 14th). The site is designed to help the baby boomers make the most of their pensions, savings and investments. And for those of us that are a bit short on the income front (who isn't?) there are stacks of ideas about how to make some extra cash. We don't mean the 'Get Rich Quick' schemes, if that's what you're after you need a different site, we mean ideas for earning an extra income to supplement you pension or your savings. This is the sort of information that will be available to you:-
Make sure you check out the website after it goes live on January 14th, 2010. We'll be giving you the link on this blog.
Be well.
- How to set up your own business working from home
- How to write articles (even books) that actually get published
- How to get the best deposit rates
- How to improve investment returns
- Discover safe investment ideas
- Find out about annuities
- How to save money on a raft of everyday expenses
- Where to get the best insurance
- Shop for specially selected goods and services
Make sure you check out the website after it goes live on January 14th, 2010. We'll be giving you the link on this blog.
Be well.
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