Written by richard on 13 September 2006
If like me you are becoming increasingly concerned and the stories in the news about Mortgages and Debt, it seems that what some of us knew years ago is now coming ‘home to roost’, with increasing numbers of people not understanding or not being able to service their debt.
I am concerned for them fortunately my clients are safe in the knowledge that they have had excellent Mortgage Advice and should not have any concerns, but if you have not then make contact.
http://news.bbc.co.uk/1/hi/uk/5340878.stm is the link to one the stories today.
If anyone you know wants advice or thinks that they may have grounds for complaint then get them to call me for some free advice.
Richard Smith
The Finance Zone
0845 226 9106
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Written by richard on 06 September 2006
The unearthing of a US$400 million pension corruption scandal in Shanghai late last week came as no surprise to many Chinese.
When it comes to matters of finance and investment, our research has shown that Chinese consumers have high trust levels for well established foreign financial brands over many home-grown institutions for this very reason.
While the latest scandal did not involve a bank, there is certainly an entrenched belief among middle-class Chinese that power tends to corrupt, and those who wield power in a financial sense often make sure they and those around them are able to ‘wet their beaks’ in the course of doing business.
Last week’s incident saw one of China’s richest men and a senior Shanghai official (a scapegoat perhaps) implicated in the affair that allegedly involved the siphoning of funds from the “Paris of the East’s” social security system, which looks after more than 10 billion Renminbi (US$1.25 billion).
In response, Beijing sent 100 investigators to Shanghai to look into the scandal – yes, 100 exactly! – not 99 or even 101, but 100.
A nice round symbolic figure perhaps to demonstrate the Government’s genuine intent to crack down on such self-serving behaviour?
However, the more cynical among us may suggest that the exercise is more to do with politics and merely Chinese President, Hu Jintao, flexing his muscles to ensure all the pieces are in place that would allow him to appoint his own successor when the Chinese Communist Party holds its five-yearly Congress in late 2007.
If the latest corruption scandal is just political grandstanding then one would be inclined to believe a much greater level of ‘grafting’ exists beyond this very public case.
Finance, investing, and saving for retirement is all about confidence and trust, and until the Chinese public can truly trust those empowered to hold and manage their money the financial services industry in the Middle Kingdom will never reach its full potential.
Richard Smith
www.thefinancezone.co.uk
0845 226 9106
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Written by richard on 03 September 2006
I know, the weekend papers are full of these stories, however I am not convinced we should really panic yet, after all it has been like this for many months (years).
News from today (Reuters) – Here are some key facts and comments from British banks on impairment charges for bad debts in the first half of this year and the outlook.
Banks have reported sharp increases in impairment charges as UK consumers have struggled to repay unsecured loans, while bigger debt burdens and higher fuel and utility bills have squeezed spending.
Bad debts have also swelled due to a change in bankruptcy laws last year, making it easier for people to declare bankruptcy or to reach individual voluntary arrangements (IVAs) to pay part of their debt over time.
Group bad debt charge in the six months to the end of June was $3.89 billion, up 19 percent from a year earlier. UK retail bad debt charge rose 36 percent to 361 million pounds ($683 million).
HSBC said the UK bad debt rise was mainly due to the change in bankruptcy rules. A third of the provisions on its UK unsecured loan book were related to people going bankrupt or taking out IVAs, up from 22 percent a year ago.
Chief Executive Michael Geoghegan: “It concerns me that there appear to be non-regulated advisers who are advising people and charging for this advice to suggest that people should file for bankruptcy.”
Richard Smith
0845 226 9106
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Written by richard on 01 September 2006
I have just finished two really important pieces of work on behalf of clients.
The first a major exercise in mitigating (reducing) a Major Inheritance Tax Liability (IHT) for a Business Owner and his Spouse, not that these things are easy to do as each client has individual needs and areas of concern that are applicable to them. However despite what you read in the press, and despite what the ‘bloke down the Pub’ says, it is possible (still) to reduce your IHT liability greatly, or to ensure that your House is not sold to fund Nursing Home Fees by the Local Council and to ensure that your Business is passed on correctly and in a timely manner to your Dependants.
You just need to make contact with me (or another Adviser specialising in these areas) and deal with the planning aspects, its that simple. Doing nothing is not an option. Noting of course that Inheritance Tax is a Voluntary Tax still!
The other work mentioned concerns a Small Business Owner that was insistent on arranging some Finance to cover a short term loan (Cash Strapped) and to consider putting in place some longer term planning in order to fund the purchase of some business premises. Neither of which the business really needed.
After I had carried out a formal review of the Business Financial Planning we determined that the Business needed to sell more stock, collect payments in a more efficient manner, deal with some of the I.T/Marketing/Administration issues and to move forward with the re- organisation of the business and its storage. With a few minor changes, the business will be in profit this month and with a forward plan will be able to purchase the Business Premises without borrowing a penny. Am I a magician, no. Just practical with an awareness of how things should work.
Don’t forget I also run my own business.
It’s late on Friday, the weekend is looming, time to spend some quality time with my Children and start hunting for that New House.
Richard $mith
www.thefinancezone.co.uk
Providing Practical Financial and Business Advice across Sussex.
0845 226 9106
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