Ross Naylor +48 (22) 389 65 70 (w) +48 512 275 706 (m) ul. Królewska 27 lok 411 Warszawa 00-060 PolandTo Insure or Not to Insure OK, confession time. I am a financial adviser and I hate insurance. However, while I may hate it Irecognize that there is often an absolute need for it. Land of Opportunity?Here are some stati stics that back that need up: The Iraqi stock market has a A working adult is 10 times more likely to be unable to market capitalization ofwork through ill health than to die before retirement. USD3.5 Billion. One in five people has a chance of being off work due Here are the capitalizations ofto illness for at least three mont hs. some other countries by way of a comparison: There is a one in six chance of an adult beingincapacitated for longer than six months. Sri Lanka - USD11 Billion Kuwait - USD95 BillionWhen thinking about what could cause you to be unable Saudi Arabia - USD300to work due to ill health, it is not necessary to look for Billionsomething serious. Think something simple, backache forexample. Yet Iraq has the 3rd biggest oil reserves in the world.
Its not all doom and gl oom. Chances are, your employerwill continue to pay you for the first 3-6 months. If a large Yes, the country faces all sortspart of your income comes from bonuses or commission of problems but the potential ishowever, you will lose out as this will not be covered. huge.In addition some countries have generous state safetynets. Here in Poland, for example, ZUS takes over onceyour employer stops and continues to pay until yourecover or reach retirement age.Again, this wont cover bonus or commission income. Inaddition if you are here on an expatriate contract then itwont cover the allowance for housing or school feeseither.This last point is not terribly relevant anyway, as if youare here as an expatriate and become unable to work QROPS Cornerdue to ill health, chances are you will go back to your This section of my ezine willhome country anyway. only be of interest to you if you have a UK pension scheme.The questions therefore, that you need to ask yourselfare: I have decided to introduce it for 2 reasons:1) What effect would being unable to work due to longterm incapacity have on your present finances and your 1. Demand. I have receivedfuture financial plans? numerous requests for information on the subject.2) Are you prepared to take that risk? (Or as ClintEastwood would say - do you feel lucky?) 2. It is a highly complex area with significant scope for abuse.[In the next issue, I will look at a simple and relativelycost effective way of insuring your income against ill In future issues I will report onhealth.] areas to look out for and changing legislation that will affect such schemes.Food for Thought Be sure to keep an eye out ifThese are some of the things that I have been this subject affects you.reading/listening to in the past few days.I thought that I would share them with you. I hope thatyou find them interesting too.Firstly, in the last issue I mentioned a phenomenon called
"contango" in relation to commodity investing. Here, theguys at Khan Academy explain it far more concisely thanI could.This is a great interview with a guy who turns theperceived wisdom behind home ownership on its head.He comes across as being a bit wacky but he makessome valid points. I particularly like the one about theconcept of home ownership being created by companybosses so that their employees couldnt move away Sign Upeasily. If you have been forwarded this ezine by someone elseIf you already own silver or are thinking of jumping on and wish to sign up to receiveboard, this is worth reading. future issues automati cally, just enter your e-mail addressFinally, there was an interesting piece in the FT on the here.new geopolitics of oil. DisclaimerAnd finally... The views expressed here are mythis made me smile. I just received a flier for a new bond own. They are not necessarilyfund that was launched 3 months ago (I wont who shared by AES International. Theylaunched it, to save embarrassing them). are subject to change at any time based on market and otherAnyway, they compare their performance to that of Pimco conditions.who are probably the standard bearer for bond fundmanagers. Over the first 3 months they stack up well and This is not an offer or solicitation forthus their pretty little chart suggests that they must be as the purchase or sale of any securitygood as Pimco. and should not be construed as such. References to specificThe only difference - Pimco have been doing it for more securities are for illustrative orthan 20 years, not 3 months. informational purposes only and are not intended to be, and shouldCreative marketing at its very best. not be interpreted as, recommendations to purchase orWith that, Ill thank you for reading and wish you a great sell such securities.week. My day job is as a qualifiedRoss. financial planner. This entails me giving my clients advice on maximizing the returns on their investments within their specified risk parameters. This may or may not involve me recommending
some of the securities listed above.Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m)