Family Money: Why pay tax if you don’t have to?

If you’re working overseas and plan eventually to return to your home country, wouldn’t it be nice to have a saving’s plan which would allow you to withdraw your investment back home without ever having to pay any tax on it?

Well, if you’re British or German, you might be pleased to know that such beneficial investment vehicles do exist. (And if you’re French, you have even more options - but that’s another topic for another day.)

Such a vehicle is commonly known as a "qualifying" savings plan.

This is simply an offshore savings plan which is so structured that if it were later substituted for an equivalent onshore plan, any withdrawals after maturity would qualify under current tax regulations to be taken entirely tax-free.

The four criteria to qualify

Sounds good, doesn’t it? Well, it is. Except that you have to adhere quite strictly to the tax authority’s rules that make such an offshore plan potentially qualifying:

1. The contract term (i.e., the contributory period) must be at least 10 years for the U.K. and 12 years for Germany.

2. Contributions must be continued regularly throughout the term of the plan.

3. Under U.K. rules, no single premium can be more than double any other premium; German rules are somewhat less flexible with regard to increasing or decreasing premiums.

4. It is written as an insurance policy with a ‘wrapper’ of guaranteed life-insurance coverage equivalent to at least 75% of the expected total contributions for the U.K. and 60% for Germany.

What these criteria mean in practice is simply that you contract with the institution concerned (and all the major offshore British insurance companies offer these types of plans) to make regular contributions into your plan for a set term of not less than 10 years if you intend eventually to draw down the money in Britain, or 12 years for Germany.

You can elect at the outset to contribute for longer than the minimum period (either 10 or 12 years, depending on your nationality), but the contract term must be at least this minimum.

As you have to be prepared to make this relatively long-term commitment to keep it going to ensure you reap the full benefits later, make sure you start it off at a figure you know you can afford to continue throughout the whole contractual period.

Flexibility

Contributions can generally be accepted on either a monthly, quarterly or annual basis.

If you need to suspend payments for some reason, that’s okay in most cases. Most institutions allow you to start their plans up again, and pay in the back premiums owed within one year of stopping. You may have to pay a penalty for doing so, but at least you won’t lose the benefits of the plan’s "qualifying" status.

If you stop contributions altogether before the 10-year mark (or 12-year mark), you can do so. However, most institutions would charge you a penalty for doing so - but more importantly, the plan would lose its potentially-qualifying status, and thus the potentially beneficial tax treatment.

On the other hand, some such plans offer a built-in escalation option, whereby you can automatically increase contributions each year, to offset the eroding effects of inflation, and keep up with your (hopefully) rising income.

The third criterion listed above really applies only to the U.K. and means that you could not increase your contributions by more than 5% each year, nor for more than 15 years.

(For those planning to return to Germany, some annual indexed increment is permitted, which must be set at the beginning.)

Above 5% each year, and you might inadvertently end up contributing more than double the early premiums before you’d reached the 10-year mark - which would breach the rule and render the plan non-qualifying.

Similarly, if you escalate by 5% p.a. and then carry this forward for more than 15 years, in your 16th year you would be contributing more than double your first year’s inputs, thereby again breaching this rule, and losing the potentially qualifying status.

This rule must also be borne in mind if a change of circumstances necessitates reducing your level of contributions.

If this led to your reduced contributions being less than half any other premium, again, the rule would be breached and the plan rendered non-qualifying.

This is perhaps the most important rule to bear in mind if ever you were to consider increasing or decreasing your contributions into such a plan.

Insignificant life coverage

The insurance element is comparatively small, and should not be thought of as providing significant life insurance coverage.

It’s there only to comply with the tax rules (although should you die unexpectedly while the plan was in force, your estate would receive either the built-in guaranteed insurance value, or the bid value of your investment units, whichever was greater at the time).

Similarly you shouldn’t be put off by the cost of this life coverage. The cost of the risk taken on by the insurance companies running these schemes has been carefully calculated in a competitive environment, so is quite reasonable for the risk taken on by the institution concerned.

Typically, the premiums for this coverage are deducted from your regular contributions before these go to buy investment units in your chosen underlying funds.

Once the value of the investment element exceeds the "guaranteed" life coverage inherent in the plan, the life insurance element ceases automatically, and so does the cost of the coverage.

In most cases, the institution calculates the life-cover risk as the difference between the current value of investment units and the guaranteed insurance coverage, and it’s only this difference that you actually pay for.

Thus the premium-cost of this guaranteed life-cover becomes progressively cheaper as the investment element builds up closer to the guaranteed insured value.

Liens on the policy

Some people who have suffered ill health are under the impression that they would not pass the medical examination they expect with this type of plan.

Well, in many cases a medical examination may not even be necessary, depending on the level of contribution, your age at outset, and your health history (for example, how serious and how long ago your medical problem occurred).

But if a medical examination is required (which is determined by the institution’s underwriters), and it turns out from this that you have a medical condition which renders you less than a solid risk, the institution will probably still issue your "qualifying" savings plan structured to be potentially tax-free in the U.K. (or Germany), but put a lien on the guaranteed insurance element (which, remember, has to be 75% for the U.K. or 60% for Germany of the expected total contributions, to make the plan potentially qualifying.)

What this means is simply that you’re properly covered as far as the tax authorities are concerned with regard to assessing the "qualifying" status of your policy, but should you die as a result of this pre-existing condition, instead of paying out the full insured value of the plan (which, remember, is really only there for tax-efficiency purposes), they will pay out that sum less the amount stipulated by the lien.

For example, if you have a heart condition, and a potentially-qualifying policy were issued to you with a 40% lien stipulated on it, this simply means that if you die as a result of this heart condition whilst the plan is in force, the institution would pay out either the full bid value of the investment units or 60% of the guaranteed face value of the policy (100% less 40%), whichever is greater at the time.

Such a lien is similarly applied to those people engaged in high-risk activities (such as oil-rig workers, for example), or who enjoy motorcycle racing, or deep-sea diving.

The lien simply reflects the greater risk your occupation or extra-curricular activity implies, which is taken on by the institution in issuing the policy.

It is always better to declare up front that you engage in these activities, and let the institution decide what level of coverage they will be prepared to give (or rather, what extra premium they’re going to charge you to provide the required insurance coverage for tax purposes), and therefore whether a lien on the policy is indicated, than to tell porky-pies, and put your family at risk of collecting only the value of the investment units with nothing extra should something happen to you resulting from something you failed to declare.

The ‘worst case’ scenario is a 100% lien, whereby your family would still get back the investment element of the plan should you die unexpectedly, but without any ‘extra’. This would still be tax free, mind you. And that’s what you’re paying the small additional premiums for, which inevitably are far less than the potential tax savings.

It is important to understand that the potentially-qualifying tax-free status of the plan would be unaffected by any liens that might be applied to the policy; these affect only the guaranteed payout in case of death.

And this type of plan should not be thought of as a substitute life insurance policy; it should be thought of purely as a highly tax-efficient savings plan which merely happens to have a small element of built-in life-insurance benefit.

Going home

Throughout this article I have used the term "potentially qualifying", which perhaps needs some further explanation.

You see, so long as you remain offshore, your plan is an offshore savings plan which is growing tax free anyway. The situation only changes when you return to the U.K. (or Germany).

If you then decide you will remain onshore permanently, you can substitute your offshore plan for an onshore one, and usually at no cost.

This is done by "selling" the potentially-qualifying offshore plan to the offshore institution, who then pass the redemption proceeds to that same institution’s onshore sister (or in some cases, parent) company, who issue a new policy which is structured to qualify as a tax-exempt insurance policy under U.K. rules.

The structure is virtually identical to the offshore plan, and the IRD effectively gives you ‘credit’ for the period you were contributing into the offshore version.

You can, however, usually take this opportunity to effect certain changes at no cost to yourself.

For example, whilst you were offshore, you might have been earning US dollars and contributing into your plan in that same currency. Now that you’ve returned to the U.K. (or Germany), it would make more sense if you could make future contributions in Sterling (or DM if you’re German).

Most of the onshore institutions permit this currency-denomination change at the time of substitution.

They also permit you to choose a new set of underlying onshore funds into which your contributions are invested, and at no extra charge. In other words, a free switch.

Another point to bear in mind is that not everyone who returns ‘home’ decides to stay there.

The IRD regulations address this point by allowing you one full year from your date of return in which to complete the substitution onshore. Thus you have several months’ grace period in which to make up your mind.

This is an important decision, inasmuch as once you’ve substituted your offshore plan for an onshore one, you can never reverse the process: it can’t be re-substituted offshore again.

It’s rather like pickle and cucumber. You can turn a cucumber into pickle any time, but you can never turn pickle back into cucumber!

There is another advantage in this one-year grace period. Most offshore funds are not taxed at source, whereas most onshore ones are. Therefore offshore funds typically grow by 2%-3% more per annum than onshore ones.

Thus you can gain a few extra months of tax-free growth by putting off the substitution process for as long as possible - but not too long, to allow adequate time for the institution to process the paperwork before the 12-months’ deadline.

This whole process is in fact just a paper exercise, but it ensures that when the plan comes to maturity, you will be able to withdraw either all the capital, or part of it, or take a regular income, or withdrawals as & when you may need them - all without having to pay one penny in tax.

And to my mind, for anyone who is considering eventually returning to U.K. or Germany, and wants to save some excess income in the meantime - whether for building a personal pension, or buying a house, or educating the children, or whatever - a plan which legally permits you to avoid paying 25%-40% in taxes when you draw down your investment is well worth considering...

If you have any comments or queries on this article, or about other topics concerning investment matters, write to Leslie Wright, c/o Family Money, Pattaya Mail, or fax him directly on (038) 232522 or e-mail him at [email protected]. Further details and back articles can be accessed on his firm’s website on www.westminsterthailand.com.

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.

Successfully Yours: Brett Seagrott

What would make a high powered international tennis coach throw in his racquet and move to Pattaya to start up a luxury chauffeured limousine service? Brett Seagrott is unsure - perhaps latent insanity, perhaps lifestyle advantage or a mix? "It is amazing how life changes. If you asked me five years ago, I would have said that I was married to tennis, but here I am in a new industry and I don’t even miss tennis."

Brett came to Thailand in 1984. Born to an outdoor loving Australian family of all tennis enthusiasts, Brett was the one who excelled. He made tennis his all, even bypassing the surf that was at his door in favour of practising tennis seven days a week. After he left school at age 18, Brett became successful very quickly, being put in charge of high performance squads, an accomplishment usually only awarded to star tennis pros. He was chosen to work for the International Tennis Federation and had a glamorous life touring the world 45 weeks year coaching international tennis competitors in different tournaments.

Brett Seagrott.

"Everyone has their own coach. You are not teaching technique, you are a motivator, a psychologist, a tactician at that level of high performance coaching. You are worth your high fees," explained Brett.

However, after five years on the international circuit Brett was finding it an increasingly lonely and tough existence, so he decided to complete his final contract with a two-week holiday in Thailand. Again he used his time to best advantage. He looked up Thai competitors he had met on the international circuit. When he explained his intention to opt out, he was quickly seduced by an offer of a four month contract to coach two Thai lady international players. Right after that he was selected as national coach for the Thailand Asian Games in 1984. Following this came a three-year stint as manager of the Tennis section of the Capitol Club in Bangkok. "A sports and recreational club for wealthy people. They advertise themselves as the best. I was responsible for coaching members and training the Thai staff. It was an experience."

Finally though, the pollution and the heat in Bangkok got to him, "I decided I had enough of tennis after fifteen years. It is a very hot and physical sport for a 33 year old, and the smog was giving me bronchitis, so I decided I need a change."

He discussed possibilities with friends and because of the economy opted for a location with a concentrated tourist market in a better atmosphere. Pattaya was the obvious answer. Brett could see the need for chauffeured travel for tourists who wanted to be transported in style and prestige.

He opened Image Car and Travel in Jomtien just five weeks ago. Brett has a mix of values he considers essential, "Honesty, integrity, enthusiasm and not being too serious - having an Aussie laid back attitude." Success for him is, "Being happy with what you are doing, good financial rewards, and developing the staff." His advice to would be business men here really displays the true Brett thinking, "For a Farang you must understand the Thai culture and have a deep insight into their mentality to behave in a way that makes things happen here. Otherwise have a trusted Thai advisor, and being competent in Thai language helps. I enjoy working with Thais, they have an unbelievable enthusiasm and capacity to learn new skills quickly. My long term commitment is to this country."

It is almost predictable that Brett Seagrott will be able to change his final score to "Advantage Server".

Snap Shots: Red Eye

By Harry Flashman

There are a few causes for "red eye". Ignoring the obvious ones of late nights with excessive alcohol intake and scratchy contact lenses, the photographic cause of "red eye" is the flash burst illuminating the back of the eyeball! This is particularly a problem with cameras that have their own in-built flash. The startling look of staring red eyes can certainly spoil an otherwise pleasant portrait.

The reason for this is that the beam of light from the flash is very close to and parallel with the lens axis, so the lens "looks" directly into the back surface of the eyeball as does the flash beam. To get around this problem, professional photographers will often use a flash gun mounted off to the side of the camera. In this way the flash actually comes across the subject’s eyes at an angle and "red eye" is less likely.

Grainy romantic portrait by using high speed film.

Another reason for the prevalence of "red eye" is that in low light situations (and that’s the times when you have to use flash illumination) the subject’s pupils are dilated and it becomes even easier to see into the eye.

The clever camera manufacturers have now begun incorporating a "pre-flash" before the main flash to make the pupil contract, so it is less likely that you will see inside the eyeball. The only problem here is that many people imagine that the "pre-flash" going off means the picture has been taken and move away just as the main flash fires. If you have a camera with this facility it is best to warn the subject that there will be two flashes, with the real one being the last one! It will certainly save you some wasted film!

Fast Film

The "speed rating" of film is generally given by an ASA number. The higher the number, the faster and more sensitive the film emulsion. The most "usual" film speed is about 100 ASA, however, it makes a lot of sense to go for some different film speeds every so often.

The trick is to adapt your film use to the kind of picture you want to take. Confused? Don’t be. The rationale behind film speed is simple. The faster the film (the higher the ASA number) the better it is in lower light levels. To put it simply, if you want to take shots in the evening without using a flash then select a film with ASA up around 1600 or even higher. That film is five times more sensitive to light than your usual 100 ASA film. Or put another way, it will satisfactorily expose film at one fifth of the amount of light that the "normal" film needs.

All this super sensitivity comes at a price, though. And that is "sharpness" and clarity. The faster the film, the more "fuzzy" it gets.

Sometimes you may want to get that "soft" romantic look in a portrait. Again this is where you use the fast film and enlarge for the portrait. That "grainy" look is now at your command!

At the other end of the scale, the lower (and slower) ASA numbers need a lot more light for proper exposure, but the film emulsion gives pin sharp, clearly defined images. Pro shooters will often use 50 ASA film to get that crisp picture that will withstand big enlargements.

If you have a camera with DX de-coding, then the camera will automatically adjust for the different films used. However, if your camera has manual adjustment for film speed, remember to set the new ASA rating or you will have wasted a complete roll. And what does Harry Flashman use for everyday? Try 200 ASA for a good all-rounder.

Modern Medicine: Cough Mixtures

Presented by Bangkok-Pattaya Hospital

by Dr. Iain Corness

What would make a high powered international tennis coach throw in his racquet and move to Pattaya to start up a luxury chauffeured limousine service? Brett Seagrott is unsure - perhaps latent insanity, perhaps lifestyle advantage or a mix? "It is amazing how life changes. If you asked me five years ago, I would have said that I was married to tennis, but here I am in a new industry and I don’t even miss tennis."

Brett came to Thailand in 1984. Born to an outdoor loving Australian family of all tennis enthusiasts, Brett was the one who excelled. He made tennis his all, even bypassing the surf that was at his door in favour of practising tennis seven days a week. After he left school at age 18, Brett became successful very quickly, being put in charge of high performance squads, an accomplishment usually only awarded to star tennis pros. He was chosen to work for the International Tennis Federation and had a glamorous life touring the world 45 weeks year coaching international tennis competitors in different tournaments.

"Everyone has their own coach. You are not teaching technique, you are a motivator, a psychologist, a tactician at that level of high performance coaching. You are worth your high fees," explained Brett.

However, after five years on the international circuit Brett was finding it an increasingly lonely and tough existence, so he decided to complete his final contract with a two-week holiday in Thailand. Again he used his time to best advantage. He looked up Thai competitors he had met on the international circuit. When he explained his intention to opt out, he was quickly seduced by an offer of a four month contract to coach two Thai lady international players. Right after that he was selected as national coach for the Thailand Asian Games in 1984. Following this came a three-year stint as manager of the Tennis section of the Capitol Club in Bangkok. "A sports and recreational club for wealthy people. They advertise themselves as the best. I was responsible for coaching members and training the Thai staff. It was an experience."

Finally though, the pollution and the heat in Bangkok got to him, "I decided I had enough of tennis after fifteen years. It is a very hot and physical sport for a 33 year old, and the smog was giving me bronchitis, so I decided I need a change."

He discussed possibilities with friends and because of the economy opted for a location with a concentrated tourist market in a better atmosphere. Pattaya was the obvious answer. Brett could see the need for chauffeured travel for tourists who wanted to be transported in style and prestige.

He opened Image Car and Travel in Jomtien just five weeks ago. Brett has a mix of values he considers essential, "Honesty, integrity, enthusiasm and not being too serious - having an Aussie laid back attitude." Success for him is, "Being happy with what you are doing, good financial rewards, and developing the staff." His advice to would be business men here really displays the true Brett thinking, "For a Farang you must understand the Thai culture and have a deep insight into their mentality to behave in a way that makes things happen here. Otherwise have a trusted Thai advisor, and being competent in Thai language helps. I enjoy working with Thais, they have an unbelievable enthusiasm and capacity to learn new skills quickly. My long term commitment is to this country."

It is almost predictable that Brett Seagrott will be able to change his final score to "Advantage Server".

Dear Hillary,

I have visited Thailand and Pattaya several times now. Thai people are charming in general but there are a few things which I find upsetting.

I find it very abrasive the way Thai service people and taxi drivers say ‘Hey you!’

I also am at a loss for words when Thai people ask me if I’m married, how many children I have, how much money I make and tell me that I’m very fat.

I also don’t like it when Thai men grab my behind. I’m a man and this behavior seems a bit odd.

I don’t mind being overcharged a bit. This seems to be something we from developed countries must put up with. I just look at it as helping the Thai economy.

I wonder why perfectly nice people can have such mildly annoying habits.

Perplexed

 

Dear Perplexed,

I think you have things a bit ‘backward.’ When Thai people say ‘Hey, you’, most of them do not think they are being rude. They are thinking in Thai and the ‘you’ is ‘khun’, which means ‘honorable person’. The ‘hey’ is not considered polite. But where do you think the Thai people learned this? From westerners, of course.

As to the questions about your marital status, income and other personal matters. This is a Thai way of showing interest in you. When speaking to each other, Thais ask similar questions. You can’t expect them to talk to you about quantum physics, as language can be a problem.

About your behind. Thai culture allows for same sex contact in public. If a Thai man grabs another man’s bottom, this has no sexual connotation whatsoever. Or you could possibly have a very attractive derriere.

It’s better than a slap in the face.

The ‘backward’ part I referred to in the first sentence regards you not minding being overcharged. This is definitely not a part of ‘true’ Thai culture but rather opportunism. You are not helping the economy by letting this happen. You are contributing to inflation.

Try to ignore these minor irritations. You did say you’ve been here several times, so you must like the country.

Khun Ocha’s Cookbook: Camarones al Mojo de Ajo

A few weeks ago Khun Ocha printed a recipe from friend Arturo Boada, the crazed Colombian chef. Arturo was actually in Pattaya a couple of months back to pass on some of his expertise to the chefs at the Royal Garden Resort and impressed everybody with his innovative cuisine.

His restaurant in Houston, Texas is called Solero, and last night he fax’d over the following recipe for Solero’s Garlic Prawns, or as he put it "Camarones al Mojo de Ajo" (thank you, Alice Poulsen for the translation!)

The Colombian/Spanish cuisine is very similar to some Thai dishes, but just read through the ingredients for these prawns - one TABLESPOON of chopped garlic for three prawns! That’s about enough to turn your breath into paint-stripper! Make sure your loved one has some of these prawns as well or you’ll be sleeping outside for 24 hours.

It is an easy one to cook, but do watch out for oil spatter - it will burn.

Ingredients (serves two) Prawns (medium, peeled green) Garlic (chopped) Olive oil Capsicum Lime Juice Salt Coriander leaves (chopped) Tomatoes (diced) Green Onions (chopped green) 6 2 Tbspns 1/2 cup 2 Tbspns 2 Tbspns 1 tspn 16 2 oz’s 2 Tbspns Cooking method In the wok, heat the oil, add the garlic and cook until almost golden brown. Gently place in the prawns and cook for 30 seconds. Add the rest of the ingredients and cook until prawns turn pink. (Khun Ocha’s hint. Make sure you do not leave the prawns cooking too long or they will turn "rubbery". Try fishing the prawns out with a metal noodle strainer and then serving them immediately in ceramic bowls still fizzling and crackling!)

The Taste Test
Like all of Arturo’s recipes, the taste will be sensational. This guy really knows how to combine the subtle (and not so subtle) flavours of spices and herbs. The garlic will have your eyes running and the final result aphrodisiac. Thanks again, Arturo.

GRAPEVINE

Animal Crackers: Internet Cats

By Mirin MacCarthy

This tale called "How to give your cat a pill" was recently on the Internet, and is hilarious and accurate enough to share. As they say in the classics, "Many a true word is spoken in jest."

“You think I', going to swallow that?”

Cat Medicine

1. Cradle the cat in your arms as though you were about to give a baby a bottle. Say to it soothingly, "I have a nice treat for my lovely little baby." Pop the tablet into its mouth.

2. Find a handkerchief and mop up your bleeding arm. Rescue cat from curtain rail and the tablet from under the chair.

3. Again firmly grasp cat in the bottle feeding position but this time hold its front paws down with the left hand and lean on the back paws with the right elbow. Poke the tablet into its mouth with the right forefinger.

4. Scream. Leave the cat on the curtains. Find an ice pack for your punctured fingernail and drink a bottle of beer to steady your nerves.

5. Say sternly to yourself, "I’m in charge here." Get a new tablet and grab cat. Tell it, "Now listen here Rastus, I’m the boss and you are just going to eat this." Open the cat’s mouth and shove tablet in.

6. Lie on floor and cry. Leave tablet in your hair and wipe blood off your face. Crawl to the cupboard and drag out a large beach towel.

7. Spread towel out on the bed. Attempt to centralize cat neatly lying on its back, with its head just over the long edge of towel.

8. Take a towel edge and firmly flatten its front legs against its stomach. Do the same with the back legs.

9. Now roll cat in the towel fast. To prevent the escape ‘claws’ it is useful to have a friend helping.

10. With friend holding almost smothered cat, grab the cat’s face with your hand and squeeze on the jaw hinges at both sides of its mouth.

11. Drop the tablet in, poke gently then quickly hold cat’s mouth shut. Hold the little darling still for several minutes to stop it spitting the rotten tablet right back at you. Congratulations, now just check for battle scars.

Pill Pushing

All of the above comedy routine can be avoided by demanding that the vet give the cat an injection instead. In most cases they can. Alternatively purchase (from overseas if necessary) a pet tablet dispenser. These are brilliant plastic plungers that take the pain out of D.I.Y vetting.

Auto Mania: MGs, Harleys & Karts

By Dr. Iain Corness

Autotrivia Quiz

Last week we discussed the origins of the MGA Twin Cam engine and asked what was the alternative Twin Cam engine that was proposed to BMC (the corporation that had taken over MG in those days).

That was a difficult one. I only found out this year myself, that BMC had the choice of two engines for the Twin Cam MG’s. The alternative engine was built by the engine design team at Austin motors and was very similar in specification to the chosen engine. So there you are, another bit of unforgettable autotrivia!

Doug and Cindy in their 1938 Harley-Davidson.

This week’s question will test your knowledge of accessories. Who or what was known as "The Prince of Darkness" and why? We should get some interesting, humorous and first-hand experiences in the replies for that one. The funniest reply to shed light on this subject in the next week will win the Automania FREE beer of the week! Fax 427 596 or email to [email protected].

A couple of weeks ago I asked about the original name for Sir William Lyons’ Jaguar cars. Martyn Callow, a regular internet reader from Canada came up with the goods. It was called the Swallow Sidecar and Coachbuilding Company, and they built special bodies on various chassis combinations before setting about manufacturing their own cars. As mentioned before, the first cars were called "S.S." but this name was dropped in 1945 for obvious reasons!

Very Highly Dangerous!

Take a look at this week’s photo. This motorcycle and sidecar outfit spotted last week in Jomtien is even older than me! Ridden by Desperate Doug, with side-car Cindy alongside, it is a 1938 Harley-Davidson V twin flat head with an interesting history. Imagine just what a 60 year old motorcycle could tell you. Especially one that found its way out of the Burmese jungles and into Chiang Mai before coming down to Pattaya.

The outfit is in great condition and is the result of many hours of a painstaking labour of love for Doug (AKA "Bones"). The suspension is interesting with coil sprung front forks and a solid rear end. To stop the rider getting a solid rear end as well, the all leather seat has its own springing system, while the passenger gets a couple of coil springs under the sidecar and a transverse leaf as well.

The exhaust system has the fashionable (for the era) fishtail ends and the gearchange is by hand lever on the left side of the tank. Top speed? I doubt if there is anyone game enough to give it a big enough wristful, but the speedometer reads to 120 mph. It would have been a brave rider who tried to get the needle round that far!

The bike is very original, although Doug does admit to changing the electrical system to incorporate more modern alternator technology and the front tyre looks to be automotive rather than motorcycle. However, it is great to see these priceless gems of our self-propelled past being maintained and used.

I have never been one to advocate storing the old dears in sheds. The engineers who designed and built the vehicles all those years ago expected them to be driven, ridden and used. With proper upkeep, they can continue to be used for many years yet. Well done, Doug and Cindy!

Karted Away

The very active local GoKart people have sent over the Calendar for 1999. This class of motor racing has a strong following in Thailand, and we are lucky to have a few tracks to choose from in and around Pattaya.

In a bid to keep expenses down and make the racing more competitive, the ruling body has stipulated that a "control" tyre be used again next year. Once again the Apexis company won the tender to supply the tyres, but the new Thai rubber company V-Tech were very close.

To make sure they are not left behind in development, V-Tech will field a driver in each race to test their brand of alternative racing rubber. This driver will not be eligible for points or titles and prizes because they are not running the official "control" tyres.

This is a brave move by V-Tech and I am pleased to report that local GoKart exponent (and one time Champion) Tom Raldorf has accepted the position as test driver in the 160 Kg class. In return, Tom will be sponsored for the year by V-Tech and the Bangkok GoKart manufacturers NKT. I had the opportunity to look at and drive Tom’s NKT GoKart this year and was very impressed by the standard of workmanship in the chassis. Tom, mind you, will have to make sure he works on his own chassis (body) as he will soon be able to top 160 Kg’s without the Kart!

The Thailand Championship will be run over 6 rounds at the different circuits. The dates and venues are:

14th February, Thonburi
14th March, Korat
18th April, Rayong
9th May, Bira
13th June, Pattaya Kart Speedway
14th November, Seacon Square

The Club Race Calendar in Pattaya at the K.R. Circuit on Thepprasit Road is:

24th January
23rd May
18th July
19th September
21st November

There is also a series for the 150 c.c. "Formula 1" GoKarts to be run at the Prince Bira Circuit on the following dates:

13-14th February
12-14th April
5-6th June
7-8th August
9-10th October
18-19th December

It will certainly be a busy year for the GoKart fraternity, with races for one group or another every month for the entire year. Remember that almost every current international Formula 1 race driver began in GoKarts, including both Schumachers and current champion Mika Hakkinen. The only trick is you have to start when you are about eight years old! If you are reading this column, then you are too old already! How depressing!

For those of you who just want a little fun, I do recommend you try the Karts at the local tracks. They have hire Karts in different stages of tune and specification, from outright novice to professional standard. See you out there this weekend.

Fitness Tips: Health & Fitness of the mind

By David Garred,
Club Manager Dusit Resort Sports Club

G’day Pattaya. Fitness tips has taken a different path over these past two weeks. I believe that an individuals Health & Fitness is not of the body alone, it affects every aspect of our lives and is affected by everything around us.

As I mentioned last week, I received this message as an e-mail from a friend during a very difficult period recently and it helped me to come back from the dark place I was in.

I know that I have said it before but it needs to be said again, the message is so good and so thought provoking I had to share it with you.

Now for part 2 of the message:

Time and Friends

Imagine there is a bank that credits your account each morning with 86,400. It carries over no balance from day to day.

Every evening deletes whatever part of the balance you failed to use during the day. What would you do? Draw out every cent, of course!

Each of us has such a bank. Its name is TIME.

Every morning, it credits you with 86,400 seconds.

Every night it writes off, as lost, whatever of this you have failed to invest to good purpose. It carries over no balance.

It allows no overdraft. Each day it opens a new account for you.

Each night it burns the remains of the day.

If you fail to use the day’s deposits, the loss is yours.

There is no going back. There is no drawing against the "tomorrow".

You must live in the present on today’s deposits.

Invest it so as to get from it the utmost in health, happiness, and success! The clock is running.

Make the most of today.

To realise the value of ONE YEAR, ask a student who failed a grade.

To realise the value of ONE MONTH, ask a mother who gave birth to a premature baby.

To realise the value of ONE WEEK, ask the editor of a weekly newspaper.

To realise the value of ONE HOUR, ask the lovers who are waiting to meet.

To realise the value of ONE MINUTE, ask a person who missed the train.

To realise the value of ONE SECOND, ask a person who just avoided an accident.

To realise the value of ONE MILLISECOND, ask the person who won a silver medal in the Olympics.

Treasure every moment that you have! And treasure it more because you shared it with someone special, special enough to spend your time.

And remember that time waits for no one.

Yesterday is history. Tomorrow is mystery. Today is a gift.

That’s why it’s called the present!

It’s National Friendship Week.

Friends are a very rare jewel, indeed.

They make you smile and encourage you to succeed. They lend an ear, they share a word of praise, and they always want to open their heart to us.

Show your friends how much you care...

Send this to everyone you consider a FRIEND.

If it comes back to you, then you’ll know you have a circle of friends.

HAPPY FRIENDSHIP WEEK!

Carpe’ diem
A BIG HAPPY HOLIDAYS TO ALL

Copyright 1998 Pattaya Mail Publishing Co.Ltd.
370/7-8 Pattaya Second Road, Pattaya City, Chonburi 20260, Thailand 
Tel.66-38 411 240-1, 413 240-1, Fax:66-38 427 596; e-mail: [email protected]
Created by Andy Gombaz, assisted by Chinnaporn Sangwanlek.