Taxx
Taxx, yes we have spelt it as a four letter word for 29 years. What else can you say after you examine your pay slip? You most certainly have something to say when you look at the year’s total taxx taken off you.
Are you happy that in someway you have paid for my health costs, or my pension or my daughter’s education, or my roof insulation or my solar panels, or my family allowance or the rebate on the 2 water tanks we have?
We could add many other ways the government thinks or believes or lies that it can do better with your money than you do.
Eg Conroy’s & Anna’s mate on 450K or junkets to Copenhagen for the well connected 120. Another is Anna’s recent announcement of 250k to help my daughter to read. There are examples every day as government makes up ~50% of GNP. Don’t wind us up on the vaccination rort.
We are fairly sure you aren’t that happy in contributing to any of the above ways that redistributes [others would use other words] your hard earned efforts & money. We only need to look within a family or a company to see who really ‘husbands’ the income & who is loose with the money. When it isn’t yours then you care less & maybe you are very care less with the money.
Yes we know all that you say. Well you can allow that taxx transfusion to continue or you can do something about it. We don’t mean a novated lease for an overpriced car because it will be worth ½ as much in 3 years. That isn’t smart but frequently suggested by taxx people or bankers as a taxx reduction strategy.
[We have a client who had such a lease & would have paid off his 350K mortgage in 16 years, now with no such lease he pays it off in 9years which means he could retire 7 years earlier]
If you look at your numbers then 25% + is taken by a government & the bank takes another 25%+ for your rent to them in the form of a mortgage.
E.g. Gross Income 90,000
Taxx say - 21,650 [we haven’t included your local rates, utilities & fines, Ambulance service, Medicare…]
Bank @ 6% -21,000 interest only & hence not reducing principal because with a P & I loan you don’t for 20+ years
You need to live say -50,000 & that’s tight as <1Kp.w.
Hence just maybe you are in credit card land with 2,650 in debt. Check you credit card & is it zero at the end of the month?
Is that fun? Thank you Mr. Taxx man who we read can without warrants arrive on your doorstep. We thought that happened only in Corsica or the Western Suburbs.
Hence there needs to be a rearrangement & restructuring of debt so that Mr. Taxx subsidises your mortgage over a period of time.
As we believe the health system is 180 degrees out & an oxymoron & My School is almost as much & we have our own allocated pension as past 55, then there is no need for you to contribute as much to us or others.
Welcome to call on 3848 1088, or email us or book on our websites before Mothers day.
Our active wealth strategy or other ideas may help you.
John McAuliffe
Good Cashflow business for sale
Good Cashflow business for sale
“Good cashflow business for sale. Why? We are tired of doing it & want to retire.”
This was the sign outside our local news agency today. They have been there since we have been here & that’s 29 years. We trust they have put away some other amount as at a guess they get from a small business is 1 years salary as ‘goodwill’ & SAV. What’s goodwill & when you want to sell then this is negotiable. SAV or stock at valuation could be a box of stamps. I.e. their retirement ‘cookie jar’ could be very empty.
So we trust they have some actioned some active wealth strategy over the last 29 years. Maybe they bought WBC back then @ $2.50 when the late Kerry wanted to buy 15% of WBC. Just maybe they have has a useful portfolio which with compound interest & reinvested dividends has built up to provide the replacement income that they need. When my wife comments that she spent $100 @ Woolies last night & she has to do the same today then they will need $700 per week just for the groceries. I.e. they need a capital sum of 700K @ 5% just for the groceries. We all know we need more than just the groceries. I.e. we could go through the budget; house maintenance & health & Rates, beer ….not to forget those travel goals. What does that total per week? Maybe an extra $700K is required in capital?
This just could be less as interest rates may rise & hence they may not need so much capital. I.e. they may only need 600K @6%. However we don’t see any form of government reducing their take & all this government global borrowing means rates & your government costs will rise. It also means that other commodities such as oil, food, transport rise as well.
We also noticed on our same stroll to the news agency two houses for rent in the same street. Why is this so? Has everyone bought a house & hence no one left to rent. Are all children living with their parents? Have all those rental house investors been caught with a house to rent & no tenants. Will landlords take any rent or will they sell onto the market & offload the rental property & the debt. If all are like this what happens to house prices.
Ralph from the CBA is suggesting that maybe the CBA will raise rates higher than the RBA does. Raising the rent may induce the tenant to leave. This is not what Wayne wants or the landlord & what does this do to house prices.
They just maybe relying on the government to subsidise all or part of their lifestyle & which will include their health costs. Where does the government get the funds to do so? This PIGS or STUPID [U = UK] sovereign debt issue suggests that maybe we can’t rely on government handouts when we are in a position to say “We are tired of doing it & want to retire.” There is a suggestion in the future that your super funds may have to invest in government bonds so that the government can maintain paying pensions. Is that another inter-generational transfer of wealth? Others would call it a Ponzi scheme.
Is this what they or you or I want? We could continue & compare the difference between our neighbours who we both spoke to.
Lets repeat what ‘Rich Dad, Poor Dad’ wrote many years ago. The house is not an asset as it costs & worth say 500K +. The Capital required when tired of it all is 1.4M. Which is more important?
Hence a different mindset is required -maybe our active wealth strategy which works on both simultaneously. Has the old way achieved you goals?
But why not call now on 07 3848 1088 or email us or book on our websites.
Our active wealth strategy for you is worth discussing over a lunch.
John McAuliffe
“Good cashflow business for sale. Why? We are tired of doing it & want to retire.”
This was the sign outside our local news agency today. They have been there since we have been here & that’s 29 years. We trust they have put away some other amount as at a guess they get from a small business is 1 years salary as ‘goodwill’ & SAV. What’s goodwill & when you want to sell then this is negotiable. SAV or stock at valuation could be a box of stamps. I.e. their retirement ‘cookie jar’ could be very empty.
So we trust they have some actioned some active wealth strategy over the last 29 years. Maybe they bought WBC back then @ $2.50 when the late Kerry wanted to buy 15% of WBC. Just maybe they have has a useful portfolio which with compound interest & reinvested dividends has built up to provide the replacement income that they need. When my wife comments that she spent $100 @ Woolies last night & she has to do the same today then they will need $700 per week just for the groceries. I.e. they need a capital sum of 700K @ 5% just for the groceries. We all know we need more than just the groceries. I.e. we could go through the budget; house maintenance & health & Rates, beer ….not to forget those travel goals. What does that total per week? Maybe an extra $700K is required in capital?
This just could be less as interest rates may rise & hence they may not need so much capital. I.e. they may only need 600K @6%. However we don’t see any form of government reducing their take & all this government global borrowing means rates & your government costs will rise. It also means that other commodities such as oil, food, transport rise as well.
We also noticed on our same stroll to the news agency two houses for rent in the same street. Why is this so? Has everyone bought a house & hence no one left to rent. Are all children living with their parents? Have all those rental house investors been caught with a house to rent & no tenants. Will landlords take any rent or will they sell onto the market & offload the rental property & the debt. If all are like this what happens to house prices.
Ralph from the CBA is suggesting that maybe the CBA will raise rates higher than the RBA does. Raising the rent may induce the tenant to leave. This is not what Wayne wants or the landlord & what does this do to house prices.
They just maybe relying on the government to subsidise all or part of their lifestyle & which will include their health costs. Where does the government get the funds to do so? This PIGS or STUPID [U = UK] sovereign debt issue suggests that maybe we can’t rely on government handouts when we are in a position to say “We are tired of doing it & want to retire.” There is a suggestion in the future that your super funds may have to invest in government bonds so that the government can maintain paying pensions. Is that another inter-generational transfer of wealth? Others would call it a Ponzi scheme.
Is this what they or you or I want? We could continue & compare the difference between our neighbours who we both spoke to.
Lets repeat what ‘Rich Dad, Poor Dad’ wrote many years ago. The house is not an asset as it costs & worth say 500K +. The Capital required when tired of it all is 1.4M. Which is more important?
Hence a different mindset is required -maybe our active wealth strategy which works on both simultaneously. Has the old way achieved you goals?
But why not call now on 07 3848 1088 or email us or book on our websites.
Our active wealth strategy for you is worth discussing over a lunch.
John McAuliffe
PIGS & Bears & a Bull
PIGS & Bears & a Bull
We advised our clients in late January that there might just be a high in the markets. This was that everyone was optimistic & we had said previously when we hear the word ‘boom’ next we sell. We haven’t gone that far but to use another’s term we are being ‘strategically cautious’. Hence we are lightening our portfolios.
There are several major global concerns for 2010 and you don’t want to be caught in between the PIGS & the Bear.
1. ‘G’ which stands for Greece has a total debt of 113% of GNP & last year’s budget deficit of 12.7% of GNP. Hence the need to fund these deficits means the yield is 7.162% today & the insurance against sovereign default has also risen. P = Portugal & S= Spain are no different. I = Ireland & UK where they have had serious house price falls are no different.
What does this mean do you? Well it means that money retreats from the Euro & Pound to the global reserve currency $US and this appreciates against all as the $US is ‘less bad’. Hence you may see the $AUS fall 10c from today’s 90c.
2. The big players in Wall Street will use their strengthening $US to also retreat to. They have made plenty since the $AUS was ~62c & arrived here when markets were very low. Did BHP hit $24? Now is the time for them to repatriate their funds & repeat the downswing or maybe a 2nd leg of the W. This is called the ‘carry trade’. Even when companies produce good results funds are ‘selling the fact’.
3. A third factor is China which has been the ‘Bull’ in the 2009 year. However after all the easy stimulus & credit expansion of 2009 [31% in 2009] the 9 men on the China ‘board’ have decided that is enough. It has caused inflation there to be 1.9% pa in December 09 which is triple November 09. Hence they have reduced lending target by 20%. A reduction in China demand will have a reduction in AUS resource prices.
4. A Victorian stockbroker has listed 50 reasons to be very aware of the Bear & these include bank bashing everywhere, Resources taxes, Woolies with fewer sales after stimulus and other.
5. Here is another 20 reasons why the global debt time bomb may explode soon from another commentator.
It is interesting that the RBA did not raise the official cash rate on 2nd February 2010. Just maybe they don’t want the $AUS too high & harder for exporters but great for travelers. On the other hand after reading that first house buyers made up only 13% of the market the RBA didn’t want property to become even more unaffordable. They may have read what ‘mortgage stress’ these first home buyers are under after being manipulated by government grants [why didn’t you get one?] & low interest rates. A family needs 100K income to live & support a loan which must limit house prices. They can’t keep going up as incomes have a ceiling.
Hence we repeat our theme; ‘control what you can control’ reduce those debt levels as our clients have done. Our active wealth strategy means as a first step with a principal loan reduction of 1K to 2k to 3k on average per month.
Of course if you have a super fund that isn’t proactive then you need an ‘active’ adviser.
Welcome to call on 07 3848 1088, email or book on our websites.
John McAuliffe
We advised our clients in late January that there might just be a high in the markets. This was that everyone was optimistic & we had said previously when we hear the word ‘boom’ next we sell. We haven’t gone that far but to use another’s term we are being ‘strategically cautious’. Hence we are lightening our portfolios.
There are several major global concerns for 2010 and you don’t want to be caught in between the PIGS & the Bear.
1. ‘G’ which stands for Greece has a total debt of 113% of GNP & last year’s budget deficit of 12.7% of GNP. Hence the need to fund these deficits means the yield is 7.162% today & the insurance against sovereign default has also risen. P = Portugal & S= Spain are no different. I = Ireland & UK where they have had serious house price falls are no different.
What does this mean do you? Well it means that money retreats from the Euro & Pound to the global reserve currency $US and this appreciates against all as the $US is ‘less bad’. Hence you may see the $AUS fall 10c from today’s 90c.
2. The big players in Wall Street will use their strengthening $US to also retreat to. They have made plenty since the $AUS was ~62c & arrived here when markets were very low. Did BHP hit $24? Now is the time for them to repatriate their funds & repeat the downswing or maybe a 2nd leg of the W. This is called the ‘carry trade’. Even when companies produce good results funds are ‘selling the fact’.
3. A third factor is China which has been the ‘Bull’ in the 2009 year. However after all the easy stimulus & credit expansion of 2009 [31% in 2009] the 9 men on the China ‘board’ have decided that is enough. It has caused inflation there to be 1.9% pa in December 09 which is triple November 09. Hence they have reduced lending target by 20%. A reduction in China demand will have a reduction in AUS resource prices.
4. A Victorian stockbroker has listed 50 reasons to be very aware of the Bear & these include bank bashing everywhere, Resources taxes, Woolies with fewer sales after stimulus and other.
5. Here is another 20 reasons why the global debt time bomb may explode soon from another commentator.
It is interesting that the RBA did not raise the official cash rate on 2nd February 2010. Just maybe they don’t want the $AUS too high & harder for exporters but great for travelers. On the other hand after reading that first house buyers made up only 13% of the market the RBA didn’t want property to become even more unaffordable. They may have read what ‘mortgage stress’ these first home buyers are under after being manipulated by government grants [why didn’t you get one?] & low interest rates. A family needs 100K income to live & support a loan which must limit house prices. They can’t keep going up as incomes have a ceiling.
Hence we repeat our theme; ‘control what you can control’ reduce those debt levels as our clients have done. Our active wealth strategy means as a first step with a principal loan reduction of 1K to 2k to 3k on average per month.
Of course if you have a super fund that isn’t proactive then you need an ‘active’ adviser.
Welcome to call on 07 3848 1088, email or book on our websites.
John McAuliffe