Your Financial Guide

Grant Thornton UK LLP has appointed Martin Young as Head of Financial Planning for London.

In his previous role as Managing Partner at Coutts & Co UK, Martin managed and developed the Fleet Street Office to become the largest and highest revenue generating private client team in the bank with a particular focus on the legal and accountancy sectors. Martin also had oversight of the largest assets managed by Coutts UK private client teams including investments, deposits and lending.

Martin has been recruited as a Head of Financial Planning in Grant Thornton’s London team where he will oversee a team of seven investment advisers and is tasked with substantially increasing the team’s revenue by 2015.

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Highest budget deficits – Ireland, Japan, UK and US

10 Year Bond Yields

• Greece and Ireland seem to have the relationship you might expect deficit close to 10% of GDP  causing bond yields to rise.
• But, in the case of Spain and Portugal, bond yields are high given their relatively modest budget deficit.
• By contrast, UK, US and Japan have very high budget deficits yet they have very low bond yields.

Firstly, as well as looking at annual budget deficit, it is important to also consider total levels of debt. For example,a budget deficit is more of a problem if your debt to GDP ratio is already over 100% of GDP. Bu

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Since 2000 real estate or home ownership has still outperformed on average the DOW (+6.7%), the S&P (-12%), and the NASDAQ (-30%).

Real estate’s Return On Investment (ROI) as compared to the DOW, S&P, and the NASDAQ  would be +43%.  

Clearly, home ownership or real estate investment is still a good vehicle for longer-term investments.

The tax practice at KPMG in the UK has reported revenues of £395 million in the year ended 30 September 2011, an increase of 12 percent from 2010’s £350 million.

Alastair McLeish, head of tax and pensions at KPMG in the UK, commented:  “Tax and pensions at KPMG in the UK has had an excellent year and the results are testament to the hard work and dedication of everyone in the practice.  Indirect tax and pensions both enjoyed particularly strong growth and we are building momentum across our corporate tax practice where we have been particularly busy with iXBRL and international projects.

“In the current challenging economic climate, both tax and pensions remain hugely important areas for our clients and we anticipate continued market demand for advice.”

When it comes to planning a nice and comfortable retirement, there is nothing more important than savings. In order to be able to invest, you need to have sufficient amount of money in savings. The return on investment can then be saved and invested further, and the cycle continues while your wealth develops gradually. There are a number of savings vehicle and options that you can use to help you set aside portions of your income.

If you are an employee, you are most likely covered by the 401(k). The account is designed to allow a portion of your income to be set aside for retirement. Your employer will match your contribution into the account as well, so you the amount gathered can increase rapidly over shorter period of time. Read more…

Ive talked before about how to build wealth.   Ive even talked about buying gold.

But if you really want to be rich. I mean, lavished-with-gold-beyond-your-wildest-imagination rich, then there is one investment you must make and one step you must takeand it involves buying gold.

I was reading about the Laodicean church in Revelation recently (Revelation 3:14-22), and heres what it says in verse 17:

For you say, I am rich, I have prospered, and I need nothing, not realizing that you are wretched, pitiable, poor, blind, and naked.

Talk about perception not based in reality!  

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Readers Question: What are the similarities and differences between the Bank of England and the ECB? Thank you

• They are both responsible for controlling inflation. However, this year, the Bank of England have shown much greater flexibility and willingness to consider other objectives such as full employment and preventing recession. The ECB have been much more rigid in targeting low inflation.
• The Bank of England are also willing to pursue quantitative easing and increase the money supply where necessary. The ECB have promised to avoid creating money and not to get involved in buying government bonds (in any significant quantity).

Inflation Target of ECB and Bank Of England

Both have an inflation target as the primary objective.

• The Bank of England have a target of inflation of CPI = 2% + / – 1
• The ECB have an inflation target of below, but close to, 2%. T

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