“The government beast in your home country feeds on debt and taxes,

“The government beast in your home country feeds on debt and taxes, and the best way to win is for bright, productive people to move away with their ideas, labor, and assets. This effectively starves the beast and accelerates its collapse. Then, when the smoke clears, you can move back and help rebuild a free society.

I'd really like to know what you think-- which is the right thing to do, stay or leave? What are you planning to do?”


This is a paragraph from one of the online services that helps provide us with an alternative view of the world.


Let’s answer what we do if we stay. I.e. do you stay & fight.

Those with mortgages make up about 35% of all households & it is they, the ‘mortgage belt’ who receive all the attention when elections happen or when interest rates rise. What can they do if they are ‘to win’? They won’t ‘win’ if they keep doing what they have done in the past. As any small business knows if it keeps doing the same it will keep achieving the same.

Let’s remind ourselves of the basics for a family.

They earn say 100,000+
They pay taxx say 25,000+
They pay say a 350,000 mortgage = DEBT @ say 7.5% interest only or ~26,000
I.e. they have 50,000 left to live on which is <1000 per week.
That’s the real world for this 35% which is a real struggle for Mum & Dad. When finances are tight relationships fray & children may lose.

As our client HMC today was earning 150k+ then the story is the same struggle
I.e. Taxx say 42,000 in taxx
The mortgage is bigger say 500,000 @7.5% = 38,000
So HMC has 70,000 left to live on which will also be a struggle because he has private school preferences which many do.


As the voters have shown recently they toss a coin whether they vote blue or red. They know that it is all wasted & they know they need this taxx money more themselves but ‘the beast’ gets in there first for its 25%-37% share. And as they say there is more. It does want need your TFN so as to know where all your money is. You need to provide it to your super fund so it doesn’t charge the maximum taxx rate.

Maybe the beast will do as Hungary did & demand your private super into its coffers as it did this week. How many government pension & health care promises are unfunded?

In case you are not aware you are only the beneficiary of your super fund as super is a trust structure. Also be aware that your non dependent elder children could pay up to 15% taxx on your super on your demise.
No wonder the struggling Aussie is disinterested in their super because they consider it a taxx.

We attempt to action what the late Don Chipp stated “keep the Beast honest”. It wants the poacher to become gamekeeper. This is why the ‘beast’ wants us to be regulated taxx agents so as we do its work. Its ATO just surrendered on that iconic Aussi Paul.

We would also suggest that as the NAB showed this week & as the global system was a blink away from in October 2008 the only cash you could have is the money in your wallet. Do you have two months income say 10,000 as cash = $ in a PVC pipe in the garden as the HMC suggested today? Do you have the B & B & B or “beans, bullets & baked beans” that online literature suggests?

As Kerryn suggested this week ‘On finances, I think I should be buying some gold before it goes up any more?

Is this going to extreme? Well watch if the Euro is a functioning currency within a timeframe. The US dollar is gradually being usurped by the Yuan in China’s sphere of influence.

Then there is the 350,000+ debt that strangles a family. There is commentary that it is government borrowings that pushes up the interest rates & whilst it might be convenient to blame the banks it is simply supply & demand. Globally governments are borrowing to support both their political promises & sovereign defaults are on the horizon.

We were discussing martial arts with our neighbour this week & although we know nothing about these we understand that you have the opponent somehow helping you.

Thus let’s have the ‘beast’ or the taxx man subsidise your personal debt. This allows the 35% to effectively reduce the two mouths who feed at the family table first i.e. the taxx man & the bank. Both are playing a game of bluff & there is our active wealth strategy that may help you not ‘keeps doing the same it will keep achieving the same’.

We read today that Aussies financially befuddled.

Of course if you belong in the 65% who don’t have debt then some foresight could also save you from the ‘beast’.

We promise that you will know more about your financial jigsaw after our meeting & we certainly won’t waste your or our time.
It won’t cost you anything but the effort to call us on 3848 1088 or email us on info@wealthcoach.net.au


John McAuliffe