National Adoption Week

65,000 Children in care in the UK. 65,000 is too many children in care.  Of these 65,000 kids, 3600 are babies and only 60 were adopted last year. National Adoption Week is the once a year chance to highlight the plight of these kids who really just want someone to care for them and love them.

The worst part of all this is that often it is not the lack of people wanting to foster or adopt these kids it is the very system that is suppose to protect them that is really letting them down.  The result of which is that many of these children spend their informative years in care and then go on to become tomorrows criminals.

I remember six years ago, my husband, Ron and I were having dinner with some friends. It was National Adoption Week and the publicity had made them think about fostering a child. Ron and I said we had always thought about adoption but as we had travelled so much it never seemed an appropriate time to adopt. We now considered ourselves too old to which they replied there is no age limit anymore. The next day we contacted our local council for information.

It took 5 months to get the first appointment with a Social Worker from the Council and another year to go through the screening process before finally being approved to adopt. We just needed the official notification of approval. That took another 3 months to come through. After receiving the notification another few months went by during which time we heard nothing from anyone.  We received no information about kids available for adoption and no communication from our Social Worker or Council.  So we notified our Council we wanted to go on the National Register. This went down like a ton of bricks.  'We like you to wait 12 months before going on the register' was the reply. We were now 2 years into the adoption process and not getting any younger so we insisted we be put on the National Register. We never went on the register as  surprisingly a couple of days later a child was available for us to consider adopting.  She was 8 years old. She lived in North England. We said yes and a few days later the Social Workers representing her came down to see us. Yes, we thought, things are starting to move now.

It took the North England Social Workers six months to decide if we should be put forward to a matching panel to consider if the now 9 year old girl should be allowed to move in with us.  Once she had moved in it was another 15 months before we were given their support to file for the adoption to be made final. This was only after we contacted NSPCC for a Child Advocate to represent our daughter. (another story to be told at another time)

Our 12 year old daughter is an absolute delight. She is witty and intelligent. Has a very caring and loving nature. She has wound around her little finger not just us but all our friends, family and even the teachers at her school who all describe her as adorable. She has her demons though not only from her past before she was taken into care but from the trauma of being in care. Moved between Foster Carers(most of whom do a wonderful job) and having numerous Social Workers, this comes out in the nightmares she endures. Once a nightly event they now rarely occur. Something we like to think is because we are providing the love and stability she needs.

It is National Adoption Week and I am sure there are many loving and caring families able to provide a nuturing home for one or more of the 65,000 kids who find themselves in care if only the system and the workers within the system will give them a fair chance.

http://www.giveachildahome.co.uk/

October Book Review - Surviving 2012

Four years ago in 2007, in unprecedented scenes, Northern Rock had a run on it's branches which saw Northern Rock Bank become nationalised. It was the forerunner to the 2008 Credit Crunch.  Now four years later banks are still in financial difficulty. The almost daily notification of downgrades in credit worthiness of banks comes as no surprise. Countries which printed or borrowed endless money used to bail out their banks are themselves on the brink of bankruptcy.  The implementation of severe austerity measures as countries try and reduce their debt and GDP ratios has only contributed to high inflation, high unemployment and low economic growth. The world is on the brink of a depression unlike anything we have ever seen. Worse than the 1930's Great Depression.  Governments don't know how to solve the problems. They keep fighting with the same old tools that got us into the situation we currently find ourselves in. Instead of improving things it makes them worse. We are facing an enormous disaster and very few people are aware it is coming.

In my fifth book, Surviving 2012, due for release in January 2012, I discuss ways of improving your financial education and preparing for the biggest economic disaster of our lifetime. If you are looking for a know it all answers for everything type of book then this is not for you.  This book has been written as a basic financial book for beginners giving some fundamental information that could can help you survive 2012 and beyond.  The greatest financial disaster of a lifetime is almost upon us. Those with financial education will make it through the coming storm, not unscathed, but in a better position than those not prepared for it. 

As the financial world we know changes forever a great transfer of wealth is beginning and Surviving 2012 can help you share in it.

Surviving 2012 by Karen Newton due for release in January 2012.

September Book Review

Unfair Advantage - The Power of Financial Education by Robert Kiyosaki

If you follow my tweets @newydd105 you will know by now I am a big fan of Robert Kiyosaki. I was introduced by a friend to his books in 1999 and have read every book written since. Unfair Advantage has all I have come to expect from Robert and more.

It covers the traditional information such as building assets; defining what is an asset and liability; gives examples of the investments that Robert has completed and how you can do the same. It also has updated information on the different types of investor which was originally covered in 'Cashflow Quadrant' the second book in Robert's Rich Dad, Poor Dad series.

In my own life I have treated the different investor levels as my personal version of a promotion each time I have moved up from one level to the next. The rewards have been greater investor knowledge, more confidence, better lifestyle and increased cashflow and net worth. The expansion of investor levels in 'Unfair Advantage' has given me more challenges to expand my personal growth and financial understanding over the coming years.

Each book contains historical information which helps put into perspective where we stand economically today.  'Unfair Advantage' looks at the current topic of bank bailouts.  It was fascinating reading about the number of bank bailouts that have taken place since 1971.  Each time the bailouts are bigger and bigger but really only became public knowledge following the credit crunch of 2008.  As I write this we are on the verge of yet more bailouts which could eclipse those of 2008.

In my tweets and blogs I have advised of the coming financial storm.  the storm is brewing and it is a storm so great and powerful it will make the Great Depression of the 1930's seem inconsequential. The aftermath of the storm will affect millions of people.  'Unfair Advantage' is your chance to learn how to get some protection against the disaster about to engulf all our lives.

Unfair Advantage - The Power of Financial Education by Robert Kiyosaki is available in paperback or as a kindle download.  The kindle version is available using the link on the right of this page. If you don't own a kindle, free apps are available for computers, ipads and ipods from Amazon books using the same link.

Action Man Needed!!

Three weeks ago I had a flood in one of my rental properties caused by faulty workmanship done under a Government Grant Scheme.

An Engineer was required to assess the damage and do an official report.  He was quickly on the scene, within a couple of hours, a 12+ page report was completed.  He informed me that the installation had just run out of the installers guarantee but was still covered under the scheme's guarantee.  It should take a couple of days for his report to go through the appropriate channels and work would then commence to make the house habitable again.

Three weeks later, nothing has happened except I've run up my telephone bill with daily calls and being passed from one organisation to the other each refusing to accept responsibility and do any work.  The gist of the problem being that EAGA, the company running the scheme for the government lost the contract in March and say they don't have any funding available to honour the guarantee.  The new company, NEST, who took over the management contract in April insist EAGA has been paid and therefore it is not their responsibility.

Yesterday, I decided on a new tact.  Find a person who could apply pressure in the right place.

My first call was to Torfaen Council. ( A few years ago they had approached me to start using grant funding. Their problem that all this money had been put in place for landlords to upgrade their properties but no landlords were using the funding.  As I was the largest private landlord in Torfaen they wanted to show they were supporting landlords and encouraging the use of the grants.) While the female operator empathised she could only give me NEST's phone number.

My second call was to NEST and again I was told  EAGA were responsible and I should try being more forceful with them. As if I haven't given them a hard time over the last 3 weeks. The female operator empathised and suggested I contact my MP.

My third call was to the Welsh Assembly where I was finally put through to David. Off came my business woman hat and on went the helpless female hat. David listened to my sob story. 'Well, the buck stops here' he said. 'I'll ring you back within 2 hours'.

Two hours went by - nothing.  Three hours - nothing. Four hours - nothing. Five hours later and my phone is ringing non stop. NEST, EAGA, British Gas, the installation company all eager to get my property rentable again.

In 3 weeks David is the first male I have spoken to apart from the Engineer. Although he didn't manage the two hours timeframe he got action within a day. Is he good at his job? I don't know but how refreshing to talk to someone who would take action and not try fobbing me off.

The Storm is Brewing

As the largest world economy, whether we like it or not, what happens in America has a large impact on the rest of the world. Last week one of the Chinese Credit Rating Agencies downgraded the US and a couple of hours ago Standards and Poor also downdgrade the US credit rating. Just over thirty years ago America was a nation of credit today is has the largest debt in the world.  But why should you worry?

Immediately, you may not notice much but gradually as the impact of the downgrade filters through there will be some noticable impact.  We are entering the era of the largest number of people retiring the world has seen. That is the baby boomers born post second world war. As they start retiring they will find their pension pots worth much less than they expected.  Any money they do have left will buy even less of an anuity than they expected leaving them with less and less to live on in their retirment years. 

Increases in interest rates will trickle through putting up the cost of borrowing up filtering through to your loans, mortgages, credit cards etc.  Businesses will find it more difficult to trade as they have no alternative but to increase their costs. Life in general will become more expensive.

In times of recession most governments normally increase their debt enabling them to pump more money into the economy and keep the country working.  Central Banks reduce the base interest rates to encourage consumers to spend more and gradually work the country out of recession. This time however, we have already been in recession caused by the credit crunch. The government has an unsustainable debt level that needs to be reduced quickly and is already having an effect on the economy. Central Bank has rates at their lowest levels and has maintained that level for 29 months.  Neither has worked and the country continues to decline. What do they have left in their armoury?  Little or nothing is the answer.

What can you do to protect yourself? There is no doubt that we are in the eye of the storm.  It started with the credit crunch triggered by the banks over borrowing and being unable to sustain the repayments.  Now we have governments over borrowing and also unable to sustain it.  The second part of the storm will be even greater, deeper and harder felt by consumers.  To help reduce the impact try the following:

1. Reduce bad debt - credit cards, personal loans and hire purchase which are considered bad debt should be reduced and if possible paid off as quickly as possible.  This will free up cash and reduce your exposure to increased borrowing rates likely to filter through over the coming months.

2. Buy income producing assets. - many people are confused about assets. Robert Kiyosaki has the best description of an asset.  It is something that puts money in your pocket.  So whether you work or not the money keeps coming in.  For me income producing assets are rental property; dividends from defensive shares; interest from a lending portfolio and investment in businesses.

3. Gold and Silver- we've all seen Gold hit new highs this past week.  As the economy becomes more volatile and depressed both Gold and Silver are likely to continue rising over coming year.  Based on the value of Gold in the 1980's and calculating it's price in todays money it should be around $2200 an ounce.  Gold is still undervalued at $1660 and a good buy.  If you can't afford Gold then Silver is another undervalued commodity and offers good investment opportunities.  I recently heard that around 5% of your wealth should be held in Gold  and Silver.  How much are you worth and how much are you holding?  Central Banks have bought large quantities of Gold in the first half of this year. Far more than they bought during the whole of last year.  What do they know that you and I don't?

4. Education - Financial Education should probably be number one on the list.  The world economy is changing at a greater pace than ever before and those not prepared to invest in their education are going to miss out on the best opportunities to protect or save what they have.  For a very small amount of money, around £5 - £10 there are some very good books available that will keep you up to date with changing forces.  £10 spent today on improving your education could save you £20,000 £50,000 or £100,000 in the future and could even make you millions.  Some of what I learned 10 years ago no longer applies. But if I didn't keep learning I wouldn't keep up with the changes and would probably have lost everything in the credit crunch instead of making more money.

Time is running out to protect your wealth. Time is coming is when there will be limitless opportunities to increase you wealth. The Storm is Brewing are you ready for it?

Warning - Northern Rock Mortgagees

If you hold a Northern Rock Mortgage beware you could be about to lose your house.

We all remember the scene in 2007 when there was a run on the Northern Rock Bank.  Queues of people waiting around the country to get into the bank and withdraw their money.  It was at this time the government stepped in and nationalised the bank.

As a property investor. my husband, had a large portfolio of mortgages with Northern Rock at the time, he has since reduced the number of mortgages held with them but still retains a substantial portfolio mortgaged to Northern Rock.

Since we have had the lib/con government the bank has been split into two separate divisions.  One holding all the customers deposits and one holding all the mortgages.  An organisation UKAR is now responsible for managing the Northern Rock mortgage portfolio under the new name of N-RAM.

In June we received a letter from N-RAM stating they wanted to revalue our portfolio and have a meeting to discuss our exit strategy.  The meeting subsequently took place with our accountant present.  Through probing questions from our accountant it was admitted that N-RAM want the portfolio revalued, if property prices have dropped since the last valuation - basically we all know they have dropped since 2007 - and LTV is higher than the terms and conditions of the mortgage agreement then N-RAM are claiming breach of contract and will be forcing the sale of the properties.

I don't know how many mortgages held by N-RAM would fall into that category but imagine what that is going to do to the housing market having all these properties repossessed and sold off on the market.  I can see house prices plummeting and giving N-RAM more opportunity to dispose of all the mortgages it holds in a very short time frame.

What a Crazy Investment Week ....

The past 7 days have been one of my busiest weeks in a long long time.  I am very much an advocate of working as little as possible each day. It's one of the perks of building up my investments and focusing on cashflow, the ability to work when I want to work.  Something went drastically wrong last week!

So here is a brief summary of my investment week. (It is probably a good time to state that I am not offering financial advice. I am not regulated by the FSA and so cannot offer any advice. I purely write about my experience and urge you to do your own research or get financial advice from people authorised to give it.)

Property - lots of viewings and several new tenants has seen my portfolio hit the maximum on occupancy. In other words my properties are full with the exception of one where the tenant moves out today. I opted a few weeks ago to give this property to a RSL to manage. I wait to see if they live up to all the hype they have given me and how quickly they can tenant it.  Phone is still running hot and I have topped up my waiting lists.

Shares - I have been investing heavily in shares. UK shares have fallen for 7 consecutive weeks making this the longest downturn in the market since the credit crunch meltdown in 2008. Today has continued with the downward trend.  Worries around the Greek debt has the markets trembling as they prepare for the economic fallout if Greece defaults.  Banks are particularly exposed to the default as they hold (by law) a percentage of their capital in sovereign debt. The continued downward trend has created some very cheap prices to buy into companies.

My strategy is two fold.  I buy for dividends and I buy for capital growth.  On the dividend side I had 3 companies in my portfolio going ex-dividend this month.  The cheaper shares has allowed my to buy extra stock and hence boost my income for July and August when the dividends are paid. It's times like this I remember the words of the great Warren Buffett  'you want to be fearful when others are greedy and greedy when others are fearful'. At the moment sharemarket investors are fearful and this is my opportunity to be greedy and buy my shares at a discount price. Remember, I am only buying into companies that I have researched, seem solid companies and whose shares appear undervalued by my criteria.

My second strategy is capital growth where I buy penny stocks which I sell once they have doubled in value or once I feel they have hit their high.  Surprisingly, most of my penny stocks have held their price or risen in value during this down time.  Two stocks have fallen due to their link with oil. So I took the opportunity to purchase more as the companies still look fundamentally sound.

Bonds - I sold off the last of my bonds. I have been slowly selling them for several weeks as the returns have been dwindling.  Finally, offloaded the last of them.  I'm sure there will come a time when bonds are giving good returns again but now is not the time.

P2P - I have been involved in this type of investing for around 20 years.  Mainly in New Zealand but since coming back to the UK the opportunities have been very restrictive until companies such as Zopa.com went online 6 years ago filling the void created by the banks failure to lend.  P2P (Peer-to-Peer Lending) has grown significantly with Zopa now having 2% of the market and other companies coming online with niche markets and their own spin on ways to borrow money or you to lend as an investor. Ratesetter; Thincats; Yes and Funding Circle are just a few. I've used some of the money from Bonds to increase the amount held in these accounts and again this will increase the monthly cashflow over the coming months.

Gold and Silver - I've increased my holdings in both these commodities. Interestingly while US dollars prices for gold and silver have declined recently due to exchange rates UK stirling continues to increase in value. Gold bought at the beginning of the week has increased and now stands around £950 per troy ounce.  I wouldn't be at all surprised to see gold reach £1000 per troy ounce during the second half of this year.

And finally Woodlands- I had a good look at some woodlands with the view to purchasing some for the income from the timber and capital increase in the land.  Income from Woodlands is tax free. Capital Gain on the timber is also tax free. You do however pay capital gains on the increase in the land.

So there you have what has been a very busy investment week for me.  Until the problems over Greece are sorted I expect the volatility in the investment world to continue and this might just be the start of what could be long days and busy weeks for a few months to come.