Family Money: Short-Time Boys

By Leslie Wright

In case you thought this was going to be a discussion of the relative costs of the personnel working in Boystown, I’m sorry to disappoint you. (But the title got your attention, didn’t it!?)

This article is in fact aimed towards those readers who are working here on contract terms.

The days of the long-term employment contract - what Orientals traditionally term the Iron Rice Bowl - seem to have passed into history, along with flared trousers and 45 rpm singles (although many readers will have fond recollections and maybe even collections of both).

Expatriates are especially vulnerable to the vagaries of short-term or open-ended contracts that can be terminated at any time, leaving you without work and without income.

Typically, short-term working contracts pay very well - and expatriates on such contracts should be making the most of the opportunities these present. But there may be intervals in between them when cash flow becomes tight.

When planning for such an eventuality, flexibility is an important consideration.

So is keeping a readily accessible ‘cash cushion’ in your bank accounts.

Tempus fugit

Over the years I have met innumerable people who are on short-term contracts, but who have failed to plan effectively either for the periods in between or for the longer term.

But time passes faster each year, it seems. A typical three-year contract soon comes up for renewal or replacement with another elsewhere.

Without sound financial planning, these intervals can pass without any real long-term benefits having been accrued.

How many readers on short-term employment contracts have made sensible arrangements to save some excess income and put it to work for them, both to provide an income between contracts, and for when they eventually stop working? In my professional experience, very few.

Okay, most working people put something aside for a rainy day - but I’m talking about sound financial planning, not just what you feel comfortable keeping in the bank.

Important considerations

When considering starting up any sort of investment savings plan, certain important criteria should be borne in mind.

First, how much commitment will you be able to make to keep it going? If you’re at all unsure about “keeping regular” come what may, it would be better to use a plan which permits a high degree of flexibility.

What this means in practical terms is one which allows you to reduce or suspend contributions should you be out of work for some time - and preferably without penalty.

Another criterion is accessibility. Can you withdraw money from your plan if the need arises? And if so, without heavy charges or penalties being applied?

Third is portability. Can you take your plan with you wherever you might be transferred? I have known cases where someone started up a regular savings plan and just a few months later got transferred to the other side of the world.

One such had to stop his plan because local exchange control regulations prevented him from remitting his contributions overseas - thus not only did his plan not achieve the objective for which it was set up, but he suffered heavy penalties as a result.

Had his financial adviser addressed this possibility before signing him up for what turned out to be an inappropriate plan for his circumstances, the client would have been far better off.

The tax aspect

Tax efficiency is always a consideration. After all, why pay tax if you don’t have to?

This aspect should be addressed by your financial adviser not just for the regime where you are currently located, but where you are likely to be when you draw down the benefits of the plan.

For instance, if you were sure you were going to be in Thailand when you draw down some money from your plan, you don’t need to be concerned about having to pay tax on monies remitted from an offshore investment vehicle.

But if you were in UK, Germany, or France, different rules would apply, depending on how long the plan had been going, and how it was structured.

If you are Australian, and plan eventually to return there, you would be obliged upon your return to report to the tax authorities that you were holding an offshore investment program, and pay tax on the theoretical growth - even if you hadn’t drawn down a single cent from the plan.

In that case, you’d probably be better off encashing it (without penalty, of course) before your return home.

Affordable amounts

Most financial consultants will ask you how much you can “comfortably” put aside, and suggest a plan which will accommodate this in a cost-effective manner.

That keeps things simple both for the client and the consultant. But that’s not the end of the story - or at least, it shouldn’t be.

In my view, not only all the criteria discussed earlier should be taken into consideration, but both his or her short-term needs and longer-term requirements as well.

Most expatriates on contract terms can afford to save quite substantial amounts, and this opens up more possibilities than most appreciate.

Many lack a pension, and have given this little if any consideration in their overall financing planning.

However, most cost-effective offshore ‘pension’ plans require long-term commitments which someone on a short-term contract may be unwilling to consider. This is being short-sighted, in my opinion.

Who says you have to take out only one plan when considering your savings program? (The financial consultant who has his eye on the commission he will earn rather than the needs of the client is, sadly, the usual answer.)

In most cases, contract-working expatriates can afford to set up not only a highly cost-effective long-term savings program designed to provide them with an adequate (and perhaps tax-efficient) pension, but also a totally flexible (but admittedly somewhat less cost-effective) open-ended plan which can be stopped at any time without penalty, and could even be drawn down from in times of need, also without penalty.

This two-pronged strategic planning will put your excess income to work for you far more effectively than just sitting in a bank account, while meeting both your shorter- and longer-term needs and changing circumstances.

Nowadays there is a wide variety of both types of plan - as well as some that are a compromise of both for those with more modest disposable income - and most have various additional features that can be included to cater to special needs and circumstances.

It is in your own best interests to take advantage of your expatriate status, and find out how best to make the most of your unique opportunities - while you still have the chance.

Leslie Wright is Managing Director of Westminster Portfolio Services (Thailand) Ltd., a firm of independent financial advisors providing advice to expatriate residents of the Eastern Seaboard on personal financial planning and international investments. If you have any comments or queries on this article, or about other topics concerning investment matters, contact Leslie directly by fax on (038) 232522 or e-mail [email protected]. Further details and back articles can be accessed on his firm’s website on www.westminsterthailand.com.

Editor’s note: Leslie sometimes receives e-mails to which he is unable to respond due to the sender’s automatic return address being incorrect. If you have sent him an e-mail to which you have not received a reply, this may be why. To ensure his prompt response to your enquiry, please include your complete return e-mail address, or a contact phone/fax number.

The Computer Doctor

by Richard Bunch

From Jez Hewitt, Philippines: Hi there, I have a Kodak digital camera that I bought a couple of years ago. Whilst I know digital camera technology has advanced since my purchase, this camera was top of the line when I bought it and still gives me results that I am more than pleased with. In the past I only used it for pleasure, but I have recently started a new job and am using it on a daily basis, taking on average 70 to 100 shots. I am finding it increasingly irksome to have to connect the serial cable to it and download the shots to the PC; this process is taking a considerable amount of time, several hours and ties up the PC for other things. I am sure there must be an easier and faster way to do this; any suggestions would be greatly appreciated. One final thing, I have a limited budget so...

Computer Doctor replies: Oddly enough, this is not something I have been asked before, but I can sympathise with you. The good news is there are several solutions to your predicament. The first is to purchase a new camera, say one of the Sony Mavica range. These take the pictures in a JPG format on a standard 3.5" floppy disk. This means they can be accessed directly from any PC that has a 3.5" floppy drive and some software that can read the JPG format, most PC’s will satisfy both these requirements. The drawback with these is that floppy disks can prove unreliable, they are susceptible to dust, moisture, etc.; not good if you are on location, also copying from the floppy or even opening them directly from the floppy can be slow.

Another solution is to use what are called “compact flash card readers” these are small devices, which accept the flash card (memory module) from the camera. They appear as a hard disk, and can be accessed directly; they are extremely quick in operation and are probably a better option. They are generally priced around $75-$100 so hopefully will be within your budget. These come with various interfaces, parallel port, USB and combo, i.e. both parallel and USB. The model you use will depend on the computer you are interfacing with; however, most computers over the last few years will have USB ports and this includes many laptops. Personally I prefer USB devices as they can be plugged in and out with the PC still running and are automatically detected. That’s not to say that the parallel port models are not good, they are, but tend to be a little more cumbersome when it comes to connecting them up; most of them take the power from the keyboard socket whereas the USB models do not require an external power source. Two manufacturers who you may wish to consider are Datawise and DataFab, check out their websites at www.datawise-online.com and www.datafab.com.

Send your questions or comments to the Pattaya Mail at 370/7-8 Pattaya Second Road, Pattaya City, 20260 or Fax to 038 427 596 or E-mail to [email protected]. The views and comments expressed within this column are not necessarily those of the writer or Pattaya Mail Publishing.

Richard Bunch is Managing Director of Action Computer Technologies Co., Ltd. Providing professional services which includes; website design, website promotion (cloaking) turnkey e-commerce solutions, website hosting, domain name registration, computer and peripheral sales service and repairs, networks (LAN & WAN) and IT consulting. Please telephone 038 716 816, e-mail [email protected] or see our website www.act.co.th

Successfully Yours: Anupong Prathompatama (AKA “Od” Carabao)

Anupong Prathompatama, better known as “Od” Carabao, is twinkling eyed, happy and handsome Thai father of three boys aged four to twelve. He is in fact so youthful looking, I was surprised to find he was just celebrating his forty something birthday. How does he manage to look so young? Od laughed, “Because I play music it keeps me young, and I am happy.”

It certainly is music that has made Od’s world go round. As an important part of the Carabao Band, Od plays Thai Latino sounding songs mixed with a little bit of rock on Thai classical instruments. The band is famous throughout Thailand because the lyrics, which are in Thai (naturally), are concerned with the government and Thai society, pinning social conscience like a butterfly to a wall. This band is no part-time weekend guitar strummers either. The band has just held it’s fifteenth anniversary, and has now cut 48 albums and has three sound recording studios. And where does Anupong Prathompatama alias “Od” Carabao fit in? He has been the band’s mainstay bass player and sound recording technician ever since the Carabao band cut their second album.

Od was not someone who imagined he would make a career out of music. He only started playing a guitar and bass in his college years while studying architecture. “I worked with an architectural company for two years, though I think of myself as a musician. I’ve forgotten everything I ever learned about construction.” However, he certainly has not forgotten his music.

About thirty years ago Od teamed up with a friend and played for the GI’s at army and air force bases here for about four years. Then it was back to Bangkok, but not to the building industry, playing with the President Band for 6 years. He ended up playing bass “because nobody else wanted to,” he laughed.

Od was always interested in electronics and took on being a trainee in the renowned Sirkrung sound studio in Bangkok. Now he does all the sound mixing for the group and in 1986 the Carabao band built their own recording studio at a cost of 10 million baht. Definitely no backyard band!

They now have three recording studios and as mentioned before, have cut close to fifty albums. Successful you would say, but Od does not think so. “Some people tell me I am very successful, now we are famous with 3 studios. I would have to look into that because success means something else to me. I am very serious about the Buddha, I pray and I live my life by the Buddhist rules, so my family is most important to me, as is keeping other people happy. Do you know ‘sabai jai’? It means easy living, good heart and make the family strong. That is what is important to me.”

Although he rejected architecture, music is not the only string to Od’s bow, as eight months ago, together with Carabao band partner Kio, he opened a restaurant called Steak Lao on Pattaya Beach Road. It was his partner Kio’s concept and has turned out to be extremely popular. Between them, the band already has opened four more branches since they opened in Bangkok and one of their restaurants there seats 1000. By the way, they serve brilliant Thai food with the chilli level moderated for farang tastes if you ask.

If all this is not enough to keep him busy, Od has recently commenced a cosmetic company with his brother. They have been developing the products for a year, with recipes consisting of all natural herbal ingredients which his brother brought back from China. They will have four products, a hair restorer, anti wrinkle and acne preparations and skin rejuvenation cream. Perhaps this is the secret to Od’s looks? Od will be responsible for production and marketing and they will be ready to launch their products on to the market in 2 to 3 months. I asked Od if I could be the first customer. Od replied with that happy, twinkling laugh again.

Od’s plans for the future are focused mainly on his restaurant, proudly saying that even just the day before he had signed a contract with Dove, a German beer. He believes that in that business, the key to success lies in keeping his customers happy and he has instructed his managers to ensure that this happens.

To the disappointment of his fans, he remains happily married to Joy, his Thai wife of 14 years. Indeed, the most important values to him in life are family. Eyes twinkling, he said proudly, “It’s my birthday today and even my mother came down from Surin. It is the first time she has been to Pattaya. My family are very important to me.” In fact, when I spoke with Od he was playing with his sons, the four year old on his lap proudly giving him the painting he had made for his father’s birthday.

Od’s advice to the youngsters out there about to begin their business life is simply to remember to keep Sabai Jai, a good heart. There is a more than passing chance that this is the secret of Od’s success too!

by Mirin MacCarthy

by John D. Blyth

I make no apology for spending four weeks on French compound locomotives; the French, after all, provided the first successful compound and brought the system to high degree of perfection. I now have about 900 words to cover the rest of the world! It may be best to start by listing the countries which never saw a compound locomotive: the list is surprisingly short, even if some ‘near misses’ are included. I can only think of the following: Thailand, Luxembourg, Lebanon, Iran, Sierra Leone, Cameroon and some minor South American States. Some very near misses could be the Netherlands, who had just one (but the builders Werkspoor of Amsterdam built some fine express 4-6-2s and some 2-8-8-0 Mallets for their 1067mm gauge lines in colonial Java); Burma who largely followed Indian practice, but had a curiosity in the form of a compound Garratt articulated locomotive, but I find at the last moment that they also bought 22 0-6-6-0 Malletts from Britain; Malaysia - 2 Malletts intended for Russia; Palestine, which had just four 0-4-4-0 Mallets on the narrow-gauge Jaffa-Jerusalem line; Iran, which somehow came by four Golsdorf type 2-cylinder compounds of typical Austrian appearance; New Zealand, which had one unsuccessful special locomotive for a mountain line; and Australia with which must be included Tasmania as that small island accounted for all five-three Malletts and the original two Garratt locomotives, which were rare compounds for their type.

Tandem compound 2-8-0 by Brooks, of Dunkirk, New Jersey, built 1892.

So near to France, and yet the railways of Britain did not embrace compounding with much favour; of all the main line railways whose independence ended with the 1923 amalgamation to make the four groups whose names are still familiar, the lines serving the south coast of England did not have a compound between them other than the Great Western’s three ‘Frenchmen’, and two tandem compounds, best forgotten. The five companies forming the railways of Scotland could only muster one compound between them: this was the old locomotive that had been recovered from the bed of the River Tay after the collapse of the first Tay Bridge in 1879, and which was then rebuilt as a tandem compound as an experiment. In England only the Midland Railway and the LMS of which was to form part, took up the compound system keenly, with a reasonably successful 3-cylinder 4-4-0 design by Johnson, simplified by his successor, Deely, and eventually numbering no less than 240 examples. A near miss was a proposal of 1924 on similar lines as a 4-6-0, but much more fearsome was design for a 4-cylinder compound 4-6-2 and a companion 2-8-2 for freight work. The orders for these monsters of 1926 were stopped just in time!

The original Midland/LMS Compound 4-4-0, in service until B.R days as it appears in preservation.

Passing quickly by the reign of terror on the North Western, when Webb’s compounds were storming the West Coast lines, we will just note that on the other side of the country the Great Northern and Great Central had a few compounds each, whilst the North Eastern under the two Wordsells, compounded a number of small freight engines – all right for long slow runs, but too slow for much shunting. And both ‘halves’ of Ireland had some compounds, the north even on the narrow gauge, under engineer Bowman Malcolm, chief engineer at age 21.

Spain, Portugal and Belgium were so close to France that some ideas would cross the frontiers, so all had de Glehn type locomotives, which on the wide Iberian gauge looked little different from the home product. Germany, too, had de Glehns, but local ideas from von Borries and from the Maffei works in Munich also prevailed; German practices were also to the fore in most Balkan lands. Greece only had compounds on the metre gauge Peloponnesus and Attica lines, on tank locomotives later made ‘simple’. All the Scandinavian systems had at least some compounds; I had almost put ‘nil’ against Finland until I recalled an ancient 2-cylinder 2-6-0 seen in 1962 at Hyvinkไไ works and which was a compound too. The Austro-Hungarian empire took much from Germany, but had a great engineer, Karl G๖lsdorf, who saw merit in the compound system and used it in engines up to a classic 2-12-0; few lasted long after his death.

We must not stop long over Russia and China except to record that, once again thanks to Anatole Mallet, both had a smattering of compounds, but also some of orthodox type, and in China one of the early railways had been built and was owned by the French, who equipped it with pure de Glehn locomotives! Railways in North Africa also toyed with compounds of various breeds; The Kenya-Uganda had some British-built Malletts, and under German rule Tanganyika had 0-4-4-0 Mallets which were unmistakable in their German parenthood. Mozambique harboured a solitary and derelict Mallet for some years, which had allegedly worked on the Trans-Zambezi Railway. The great system which served the Union of South Africa used bigger and bigger Mallets, all of course compounds, until they discovered the superiority of the Garratt. I find no evidence of compounds in Angola, and only a few small ones in the remaining African states.

Heavy haul on the Norfolk & Western, a compound 2-8-8-2 Y6b, of which building continued to the end of steam in the USA.

In the small space that remains we must deal with the Americas! Canada had only six compound Mallets, preferring to go for very big ‘rigid’ locomotives, the 2-10-4 being favourite. One of these was a compound, although the books usually ignore it: this was one of only five locomotives ever built with the Scmidt-Henschel three-stage boiler; curiously this was one of the three that enjoyed small success - the real failures being in the USA and Britain.

The USA had begun playing with compound systems before the advent of the first compound Mallet in 1904; tandem compound systems had quite a vogue, mainly, but not only for freight work; this was one way to avoid a crank axle despite four cylinders, by placing high and low, one behind the other on either side of the engine, with the pistons for each in ‘line astern’ on a common rod. There was a tendency to cast the cylinders in pairs instead of separately, which made maintenance very difficult, and even made lubrication a problem.

Samuel Vauclain of the great Baldwin works had another solution which was to avoid crank axles by putting the cylinders above one another outside the frames, the two piston rods driving each side on to a common crosshead and thence a common connecting rod. This worked remarkably well, even on high speed locomotives, but there was a limit on size.

Typical Vauclain compound from the Baldwin works with superimposed cylinders.

The compound Mallet was seen as the answer to the power problem, but low pressure cylinders finally reached a diameter of four feet, no less, and the difficulty of controlling the weight of these as they sought to swing the pivoted front unit from side to side led unavoidably to the ‘simple Mallet’ with all cylinders the same size. They are not part of this story, but some of them could run safely at 80mph, against the 35-40mph now just safe with a compound. Yet the latter, still seen as superior as load-movers, were built until the end of USA steam.

The major lines in South America’s many states also went for compound Mallets until beaten by the size and weight difficulties, but the once British owned railways of the Argentine also went for a big and interesting program of 2-cylinder compounds, even suburban tank locomotives and ten-coupled types for heavy freight work being quite successful on such an unusual arrangement, some being made even better by the modifications of that disciple of Chapelon, the late L. Dante Porter.

Comments welcome at PO Box 97 in Pattaya 20260, and next week something quite different.

Copyright 2000  Pattaya Mail Publishing Co.Ltd.
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Updated by Chinnaporn Sangwanlek, assisted by Boonsiri Suansuk.