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Guarding Your Wealth for Senior Citizens
Can Emerging Market Growth Continue to Reshape the
Global Economy?
We've only begun to see the impact they will have
in the financial markets
By Jeffrey D. Voudrie, CFP
 Feb. 11, 2008 - We've all heard about the amazing
growth taking place in developing countries and how the global economy
will never be the same again. But countries like China, India and
Vietnam seem so far away. It can be hard to understand how those
marketplaces can affect the individual investor here in the U.S.A. After
my recent trip to Cambodia, I'm here to tell you that emerging markets
aren't some short-lived fad. We've only begun to see the impact they
will have in the financial markets.
My wife and I had visited Cambodia last March, but
this time was different. Besides having our four children along for the
experience, the signs of a growing economy were everywhere.
Construction was taking place all around Phnom
Penh, the nation's capital. A new 42 story office building had broken
ground, the country's first skyscraper. It's being financed by a South
Korean company. A huge new complex of shops and office buildings were
coming up on old rice fields north of town in a special economic zone.
Masses of new apartment buildings were being
constructed. The prices of these condo/apartments continue to increase.
Those that were $40,000 when construction started are now $100,000.
Land values continue to soar exponentially. More
people can afford cars. Everyone has a cell phone. Universities and
schools teaching everything from nursing to English classes to
management and computer skills are popping up on every corner. And the
schools are packed.
The city continues to improve its infrastructure
with the paving of roads and improvement of their drainage system, which
is important during the monsoon season. Internet access is growing as is
the availability of cable television.
But there's much work to be done. Power outages
occur almost daily. The municipal water isn't potable. The sewer system
has a very limited reach. There is no mass public transportation service
in a city of well over 1 million. There's little garbage collection.
Just outside of town, the picture is even starker.
When you travel out to the provinces, it's like
stepping back in time. Once you get off the main highway, there are no
paved roads. Many homes are simple wooden shacks with thatch roofs.
Naked children play with sticks in the road next to ditches that are
little more than open sewers.
Electricity comes from generators that operate a
few hours a day. Health care is almost non-existent. The rice grown in
the fields hardly supplies enough grain for each family's yearly needs.
Not all provincial families live in dire poverty.
But the majority do.
The young people don't want the same life their
parents have. They want more. And they're willing to work for it. Many
of them turn to the garment factories, where by working six to seven
days a week, ten to twelve hours a day, they can make $100 a month. In
country where unemployment can reach 50%, that's a nice sum of money.
But it's not much of a life.
Others realize that education is their ticket to a
better future. The church we visited and were working with offers free
English and computer classes. Over 200 students jam every available room
of the building four nights a week.
In addition, all of these kids attend either high
school or university during the day. Many of them came from the
provinces and plan to send money they earn back home to help support
their families.
So if you think the emerging markets is just the
latest financial talk point, think again. The story in Cambodia is the
same story all over Asia.
These people want a better life. They want a higher
standard of living. They are becoming educated. Their countries are only
beginning to improve their infrastructure. Astute companies from around
the world are investing big bucks into these economies. And the growth
is only going to increase.
This isn't a five year fad. It will take decades
for these countries to grow into modern nations. But there's no going
back. The young people we met are determined and focused. This
generation will do what it takes to succeed.
Your generation worked very hard to achieve
financial security. In today's changing global marketplace, you'll have
to invest smarter in order to maintain it. In next week's article, I'll
give you practical steps to take advantage of the opportunities these
emerging markets provide.
If you have a specific question or would like more
information, give me a call toll-free at 1-877-827-1463 or you can also reach me by email at
jeff@guardingyourwealth.com.
I will answer your financial question FREE.
About Guarding Your Wealth:
Guarding Your Wealth is a
nationally syndicated weekly personal finance column written by Jeffrey
D. Voudrie, CFP. Mr. Voudrie is the President of Legacy Planning Group,
a private wealth management firm that employs sophisticated proprietary
strategies designed to protect and grow its clients' investments. Visit his website,
www.guardingyourwealth.com to read past articles under the Guarding
Your Wealth Article Archive that may not have appeared in
SeniorJournal.com.
Guarding Your Wealth for Seniors, on
SeniorJournal.com, is
a collection of columns by Voudrie that deal with issues of particular
interest to senior citizens.
Click here
for all columns.
In addition to being a nationally
syndicated columnist and Certified Financial Planning Practitioner, Mr.
Voudrie provides personal, private money management services to select
private clients
nationwide.
Looking for an energetic expert who
is passionate about financial and wealth management? Mr. Voudrie is an
excellent speaker who will excite and inspire your audience. Mr. Voudrie
is available for a limited number of speaking engagements, television
appearances and radio talk shows. For bookings, email
jeff@guardingyourwealth.com.
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