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