Fear brings opportunities
‘Fear brings opportunities’ was the title of a recent Share broker’s presentation recently with Peter Q the speaker. PQ is as analytical as any speaker we have heard.
Lets summarise his main points
• The Eurozone is a collection with only 17 countries using the Euro & there is no common financial discipline. This is the current strong need with German leadership direction to resolve.
• Greece is broke [dead] & will be left out & Italy isn’t much better.
• Ireland & Portugal are good & back on track.
• The banks need 300B Euros & not the ‘laughable’ 150B the ECB suggested.
• Hence there will be another 3 months before Europe recapitalises with Europe having a recession for a year.
Is this a good time to travel there?
• The crisis will get worse before it gets better & then the ECB will be forced to help the solvency challenge. Germany doesn’t want to but will cooperate.
• The problem is the politics which is universal.
• Global profits are lower but there is only a 20-25% change of a global recession.
• Hence inflation will be lower & so interest rates will be lower.
• Valuations for equities will appreciate over the next 2 years but there will be another 6+ months of volatility. This follows the Normal pattern after a banking crisis.
• The total value of all government debt is greater that the world’s wealth.
• The ‘developed’ countries can’t grow & it will take 10 years to return to normal growth.
• The so called developing world will grow @5% for next 2-10 years but with a 20+% change of a global recession.
• The Chinese government plans on another 36 million new houses. It is prepared to spend 2% of GNP to boost their position.
• This means Australian resources will be good but other sectors are poor. Australian resources will make up 2/3 of Australian growth.
• There is another 6-9 months of volatility before equities growth of 55%.
•
• Why is it that global stocks have moved 55% up from GFC & Australian only 27%?
i. the strong currency due to the high interest rates & hence overseas investors are selling because of the currency gains.
ii. overseas investors believe & comment that the current government is BAD.
•
The current global PE ratios is 10 vs. a long term average PE of 16.
So what does all this mean?
It means as we suggested to Paul today to head off to France & do some more skiing in France. I.e. forget the headlines & don’t run into trees.
Meantime concentrate on the high income that are available e.g. the banks are yielding ~7% before you take franking credits into account.
It certainly beats banks term deposits. I.e. own the bank rather than lend to the bank.
Now is the opportunity where ‘others fear to tread’ to get set.
I.e. resources for the medium term & the high income earners available now.
As we read today the Euro has dropped below 1.30 to the $US.
I.e. there will be a flight to the ‘Perceived’ safety of the $US. [for the moment]
Gold @1500 & silver @ 29 will be very tempting.
This means the $US will appreciate for sometime & hence commodities which are generally priced in $US will fall. This means more equity downside especially resources stocks.
I.e. beware the Bears.
The Christmas holidays are the opportunity to prioritise & not be distracted by the noise.
I.e. the Central bankers & the politicians affecting your asset values.
The big priority is always to reduce DEBT & TAXX & our PCMS provides a symbiotic structure for you do to both.
As house values have fallen & debts not then it is time for new year resolutions to be acted on.
We wish you all a very Happy Christmas & a happier 2012 & a free Christmas cake when you drop in to pick it up.
John McAuliffe
How does David or 'Rachael' or 'Jody' or Tanya pay down their 500,000 DEBT?
How does David or ‘Rachael’ or ‘Jodie’ or Tanya pay down their 500,000 mortgage?
Yes this is the question we have been asking since we spoke to all four families in recent weeks? They also have families with David having 3 daughters & Tanya & ‘Rachael’ each planning to increase from one son.
Lets revisit Making your dreams come true the six secrets to Financial Freedom to help you realise there is a way out of DEBT faster.
We know that families need at least 5000 per month to live on without any extras such as following Junior Masterchef to Disneyland.
That is 60Kp.a. + after taxx just to meet reasonable basics.
A 500,000 DEBT [i.e. 4 letters] is designed to take 25 years and on a bank website that means 3,695 p.m. @7.5% on a standard variable home loan.
Total interest paid over the loan is 608,486 according to the site.
When we add the 500,000 principal that is a lotto prize 1.1m going to the bank.
Hence the advice we took 30+ years ago to buy bank shares. Profits this year for the big 4 banks have been 6.3+ Billion each. Thank you.
Remember also that DEBT might last longer than the relationship & hence there is much less time if any were to start again.
Hence David or ‘Rachael’ or ‘Jodie’ or Tanya need to earn 105,000 after taxx to survive & to pay down their DEBT in 300 months.
At the end of 300 months what will they have?
They might have paid off the house if they haven’t renovated or moved house or replaced the car several times.
Of course they will have their super. However their super won’t be much as the average retirement lump sum today is only 154K. As David & ‘Rachael’ & ‘Jodie’ & Tanya are 30 to 40 then yes they will have much more. They might even have in today’s numbers another 500K, the governments ‘benchmark’.
So they supplement the aged pension with say 25K p.a. from their super.
Are they all working so hard for only that outcome?
Let’s be very aware that big government makes the rules & super suffers from legislative risk & it is very possible it may be later changed so that it is only used as an income stream.
I.e. no lump sum to pay down the remaining DEBT.
It also has preservation rules & can only be accessed with difficulty e.g. after 26 weeks of Centrelink payments.
Hence David & ‘Rachael’ & ‘Jodie’ & Tanya need to revisit their thinking.
They could always do as Lisa our taxx agent suggests i.e. rent their best friend’s house next door.
Yes that would make their DEBT taxx deductible. However that option would be for very few.
There are others who suggest a SMSF with an investment property in it. We have heard of such in the booming mining areas but what happens when the mine, as they do by definition, is finished. Banks also require a LVR of > 50% for such loans. Remember houses are ‘like spouses they require money & makeup.’
So how do you have the taxx man subsidise your DEBT?
If David or ‘Rachael’ or ‘Jodie’ or Tanya need 104K net of taxx then they must earn a gross 145K. They must pay 34.2kp.a or 855K in Taxx to the ATO over the next 25 years.
What happens when ‘Rachael’ & Tanya take a pregnant pause. Does the bank do similar?
Yes there is a solution to their challenge & it is our PCMS or personal cashflow management system.
It isn’t suitable for many as the above numbers suggest a family income of 150K. We need some saving to capture & maximise.
We don’t like rental property with another big DEBT & do tenants pay the right rent & care for your asset?
Of course most are in this position & it is in their best interest to not leave it until it is too late as we believe this real life case is.
Why not read our ‘Making your dreams come true. The six secrets to Financial Freedom’.
Make it happen & Make a Plan & we have been suggesting this strategy PCMS for 17 years.
Welcome to call us on 07 3848 1088 or email or visit our websites
John McAuliffe
Yes this is the question we have been asking since we spoke to all four families in recent weeks? They also have families with David having 3 daughters & Tanya & ‘Rachael’ each planning to increase from one son.
Lets revisit Making your dreams come true the six secrets to Financial Freedom to help you realise there is a way out of DEBT faster.
We know that families need at least 5000 per month to live on without any extras such as following Junior Masterchef to Disneyland.
That is 60Kp.a. + after taxx just to meet reasonable basics.
A 500,000 DEBT [i.e. 4 letters] is designed to take 25 years and on a bank website that means 3,695 p.m. @7.5% on a standard variable home loan.
Total interest paid over the loan is 608,486 according to the site.
When we add the 500,000 principal that is a lotto prize 1.1m going to the bank.
Hence the advice we took 30+ years ago to buy bank shares. Profits this year for the big 4 banks have been 6.3+ Billion each. Thank you.
Remember also that DEBT might last longer than the relationship & hence there is much less time if any were to start again.
Hence David or ‘Rachael’ or ‘Jodie’ or Tanya need to earn 105,000 after taxx to survive & to pay down their DEBT in 300 months.
At the end of 300 months what will they have?
They might have paid off the house if they haven’t renovated or moved house or replaced the car several times.
Of course they will have their super. However their super won’t be much as the average retirement lump sum today is only 154K. As David & ‘Rachael’ & ‘Jodie’ & Tanya are 30 to 40 then yes they will have much more. They might even have in today’s numbers another 500K, the governments ‘benchmark’.
So they supplement the aged pension with say 25K p.a. from their super.
Are they all working so hard for only that outcome?
Let’s be very aware that big government makes the rules & super suffers from legislative risk & it is very possible it may be later changed so that it is only used as an income stream.
I.e. no lump sum to pay down the remaining DEBT.
It also has preservation rules & can only be accessed with difficulty e.g. after 26 weeks of Centrelink payments.
Hence David & ‘Rachael’ & ‘Jodie’ & Tanya need to revisit their thinking.
They could always do as Lisa our taxx agent suggests i.e. rent their best friend’s house next door.
Yes that would make their DEBT taxx deductible. However that option would be for very few.
There are others who suggest a SMSF with an investment property in it. We have heard of such in the booming mining areas but what happens when the mine, as they do by definition, is finished. Banks also require a LVR of > 50% for such loans. Remember houses are ‘like spouses they require money & makeup.’
So how do you have the taxx man subsidise your DEBT?
If David or ‘Rachael’ or ‘Jodie’ or Tanya need 104K net of taxx then they must earn a gross 145K. They must pay 34.2kp.a or 855K in Taxx to the ATO over the next 25 years.
What happens when ‘Rachael’ & Tanya take a pregnant pause. Does the bank do similar?
Yes there is a solution to their challenge & it is our PCMS or personal cashflow management system.
It isn’t suitable for many as the above numbers suggest a family income of 150K. We need some saving to capture & maximise.
We don’t like rental property with another big DEBT & do tenants pay the right rent & care for your asset?
Of course most are in this position & it is in their best interest to not leave it until it is too late as we believe this real life case is.
Why not read our ‘Making your dreams come true. The six secrets to Financial Freedom’.
Make it happen & Make a Plan & we have been suggesting this strategy PCMS for 17 years.
Welcome to call us on 07 3848 1088 or email or visit our websites
John McAuliffe
What is it that we do?
An article written by Steve Helmich that I believe is as relevant today as when I first read it in 2009.
Planning that lasts a lifetime
26 March 2009
I want to put it to you that a financial adviser is really a life coach and just like any other coach, their role is to change habits and get better outcomes for the person or people they are coaching.
The only difference is that the value a financial adviser adds can’t be witnessed in just six weeks after following a fitness regime – the rewards pay off over a number of years. It takes discipline and it takes time.
Why is it a well-kept secret that is known to those who have a relationship with an adviser but doesn’t seem to be understood by many industry commentators or critics?
Perhaps the best place to start is by blowing some of the misconceptions out of the water.
The greatest of these misconceptions is that a financial adviser’s main task is to beat the market or to select the next best share to invest in.
This leads many to the question of why people should pay money to advisers in the current environment when asset values are falling.
In reality, I do not know of any adviser who guarantees they can beat the market, and if a adviser promotes that as their value proposition, they are setting themselves up for a fall.
The value and strength of the relationship between a financial adviser and a client is somewhat intangible, but by seeking and taking an adviser’s advice, a family can be set up for life.
The Australians out there who have a close relationship with their financial adviser know exactly what I’m talking about.
For my wife and I, the strength of the relationship with our financial adviser was recently put into perspective when we finished a review of our strategy and despite the fact that our asset values had decreased, my wife turned to me and said, “I always feel good after visiting that office”.
This is exactly what you want from your adviser: peace of mind and confidence in your future strategy.
It is the intimacy of the relationship between clients and advisers that offers great value to clients. Over a period of time, a financial adviser will achieve more for a family than any other professional – the value of their work will span generations.
What does a planner actually do to add value?
Very early in the process an adviser will sit with a client to work out what goals or dreams they want to achieve in life.
Now for many this can be a challenge, especially in a situation where a husband and wife can’t reach an agreement on what the future looks like.
Quite often, the adviser will take on the guise of a counselor or mediator in situations such as this. How do you put a value on this? I can’t think of another profession that actually asks you to think ahead about your life and plan your goals.
After identifying the goals and reviewing the clients’ current financial circumstances, the adviser will set a path to achieve those goals while articulating the risks involved in such a plan, including making sure contingencies are in place. The adviser will also help manage cash flow, minimise tax and facilitate the correct asset ownership for their clients.
It is true that for many, visiting an adviser can be a very emotional and confronting experience.
Imagine being told you have to curb your spending and work to a budget – this isn’t always a message a mature adult likes or needs to hear.
It is this financial discipline that is missing in the lives of many Australians and it often takes hearing the harsh reality of the situation to make people realise the trouble they are in or what they need to do to achieve their dreams. How can you put a value on this?
We often hear about fees, charges and investment returns as being the key inhibitors for people who retire with too few dollars – the truth is that Australians need to contribute more than the compulsory employer superannuation contribution of 9 per cent for a comfortable retirement.
But they often take action in this area too late in life and the compound effect of time cannot make up the shortfall.
A financial adviser helps people plan for their retirement by forecasting exactly how much they will need to achieve a comfortable lifestyle in retirement.
They will then help a client change their ways.
The value of peace of mind
The world we live in is full of instant gratification (mostly on credit) and the value of using a financial adviser has limited appeal instantly.
But in the long run it is the most valuable professional relationship someone can have – it’s life changing.
Despite this, people do not flock to the offices of financial advisers to seek their professional and valuable advice.
Many of the new clients who walk through the doors of our financial advisory practices are referrals from existing clients who have witnessed firsthand the value of advice.
Often people seek the advice of a financial adviser much later in life, but it pays in the long run to benefit from advice early in order to achieve goals and dreams.
Why do only 17 per cent of Australians seek financial advice when there is so much value in it?
Is it the fear of the unknown? Is it the fear of being told things you don’t like to hear? Or is it just the uncertainty attached to the advice process and how much it might cost?
It is probably all these reasons, but the sad fact is that those who don’t enjoy the benefit of having a close relationship with a professional financial adviser during their life will be worse off.
They will most likely never achieve their financial and lifestyle dreams and goals, and in a country like Australia, that should be a crime.
An article we concur with.
Welcome to call on 07 3848 1088 or email info@wealthcoach.net.au
or visit our websites www.wecoachwealth.com.au
John McAuliffe
Planning that lasts a lifetime
26 March 2009
I want to put it to you that a financial adviser is really a life coach and just like any other coach, their role is to change habits and get better outcomes for the person or people they are coaching.
The only difference is that the value a financial adviser adds can’t be witnessed in just six weeks after following a fitness regime – the rewards pay off over a number of years. It takes discipline and it takes time.
Why is it a well-kept secret that is known to those who have a relationship with an adviser but doesn’t seem to be understood by many industry commentators or critics?
Perhaps the best place to start is by blowing some of the misconceptions out of the water.
The greatest of these misconceptions is that a financial adviser’s main task is to beat the market or to select the next best share to invest in.
This leads many to the question of why people should pay money to advisers in the current environment when asset values are falling.
In reality, I do not know of any adviser who guarantees they can beat the market, and if a adviser promotes that as their value proposition, they are setting themselves up for a fall.
The value and strength of the relationship between a financial adviser and a client is somewhat intangible, but by seeking and taking an adviser’s advice, a family can be set up for life.
The Australians out there who have a close relationship with their financial adviser know exactly what I’m talking about.
For my wife and I, the strength of the relationship with our financial adviser was recently put into perspective when we finished a review of our strategy and despite the fact that our asset values had decreased, my wife turned to me and said, “I always feel good after visiting that office”.
This is exactly what you want from your adviser: peace of mind and confidence in your future strategy.
It is the intimacy of the relationship between clients and advisers that offers great value to clients. Over a period of time, a financial adviser will achieve more for a family than any other professional – the value of their work will span generations.
What does a planner actually do to add value?
Very early in the process an adviser will sit with a client to work out what goals or dreams they want to achieve in life.
Now for many this can be a challenge, especially in a situation where a husband and wife can’t reach an agreement on what the future looks like.
Quite often, the adviser will take on the guise of a counselor or mediator in situations such as this. How do you put a value on this? I can’t think of another profession that actually asks you to think ahead about your life and plan your goals.
After identifying the goals and reviewing the clients’ current financial circumstances, the adviser will set a path to achieve those goals while articulating the risks involved in such a plan, including making sure contingencies are in place. The adviser will also help manage cash flow, minimise tax and facilitate the correct asset ownership for their clients.
It is true that for many, visiting an adviser can be a very emotional and confronting experience.
Imagine being told you have to curb your spending and work to a budget – this isn’t always a message a mature adult likes or needs to hear.
It is this financial discipline that is missing in the lives of many Australians and it often takes hearing the harsh reality of the situation to make people realise the trouble they are in or what they need to do to achieve their dreams. How can you put a value on this?
We often hear about fees, charges and investment returns as being the key inhibitors for people who retire with too few dollars – the truth is that Australians need to contribute more than the compulsory employer superannuation contribution of 9 per cent for a comfortable retirement.
But they often take action in this area too late in life and the compound effect of time cannot make up the shortfall.
A financial adviser helps people plan for their retirement by forecasting exactly how much they will need to achieve a comfortable lifestyle in retirement.
They will then help a client change their ways.
The value of peace of mind
The world we live in is full of instant gratification (mostly on credit) and the value of using a financial adviser has limited appeal instantly.
But in the long run it is the most valuable professional relationship someone can have – it’s life changing.
Despite this, people do not flock to the offices of financial advisers to seek their professional and valuable advice.
Many of the new clients who walk through the doors of our financial advisory practices are referrals from existing clients who have witnessed firsthand the value of advice.
Often people seek the advice of a financial adviser much later in life, but it pays in the long run to benefit from advice early in order to achieve goals and dreams.
Why do only 17 per cent of Australians seek financial advice when there is so much value in it?
Is it the fear of the unknown? Is it the fear of being told things you don’t like to hear? Or is it just the uncertainty attached to the advice process and how much it might cost?
It is probably all these reasons, but the sad fact is that those who don’t enjoy the benefit of having a close relationship with a professional financial adviser during their life will be worse off.
They will most likely never achieve their financial and lifestyle dreams and goals, and in a country like Australia, that should be a crime.
An article we concur with.
Welcome to call on 07 3848 1088 or email info@wealthcoach.net.au
or visit our websites www.wecoachwealth.com.au
John McAuliffe
Declutter & Inner Eternal Peace
Declutter & Inner Eternal Peace
Alison who returned from hot air ballooning in Turkey this week said she was in Declutter mode when we offered her David’s glass desks. It was David who left them with us & we are doing his Declutter for him.
Alison has also downsized house as Thomas was reluctant to work in the yard. In fact we commented that those who are now retiring with a rental property are selling as they find the negative cashflow is a negative with their spouse.
Also those who have ticked further are selling down as older couples find the big house is in fact a big chore. Downsizing & decluttering.
How many mini-skips to move?
This is what the retailers are finding at present. I.e. their sales are static because everyone has enough clutter & doesn’t need any more.
In fact Lester, a mortgage broker, recently told us that he is constrained so that he doesn’t provide loans to those which could leave them in financial hardship & have to sell the house.
What he also said was ‘it’s the clutter in the house that forces owners out of their mortgage’.
I.e. less clutter could mean for you less debt & less stress & maybe fewer working years.
Even the RBA could reward this with a 0.25% drop in the cash rate which helps the mortgage holder but not the retiree. Why the RBA drops rates because of the price of bananas only they could answer.
It was interesting to view a bank advertising that at age 70 most have no super left. Here is a bank suggesting save more & of course they want to give you investment advice.
Why is the world so at present? The banks& all knowing governments have brought us to where we are i.e. broke. Have a look at a bank’s share price over the last year.
Would they invest in the bank?
Will that bank planner be there next year or as Maureen stated ‘they could remember her father’s name a day later even though he had invested 750K with them’.
Over the years we have sat around a few kitchen tables & observed that those who have plenty of clutter can’t make the big decisions which go with wealth accumulation.
We suggested to Roger to Declutter before he actions his contemplated renovations. They then maybe smaller. his new borrowings might be smaller. It worked for us.
It has always been an axiom to save 10% but until SGC very few did.
Those who have recently bought into Brisbane property could be sitting on a 6.7% drop in price over the last year.
In fact Kevin who moved from his house 2 years ago had originally asked for 580k & eventually sold for 508k & a drop of 12% on his asking price. He is now very aware that his new mortgage is not reducing because it is in fact too big. He also said the new Mater home that was won along the road from him was advertised to be worth 1.2m & sold for 700K.
When we observe the Euro discussions then it is the bad loans to the beach lovers & those who want to retire at 50 on the public purse that have brought us to near collapse. It’s the big guys who have now need to Declutter their loans by 50%.
Interesting the IMF doesn’t want to do so maybe not a done deal yet. The Red Queen & White Duck might give the IMF another lecture.
Donna said recently shopping at Vinnie’s is where there are some great labels all for < $10.
We have found David’s glass desks invaluable & a serious discount to Freedom. The old truism is that ‘others trash is your treasure’.
There are bargains to be had whether as it be Irish banks as Doug suggested this week or ‘bargains galore’ as some brokers say.
We know Alistair who is selling property in the US which has fallen 40% & maybe you could purchase a town or two there. Others commented that the precious metals are worth considering.
This could all be true if you have decluttered your debts as then you have freedom to play.
This week we meet several who are off to WA. They have some wounds from marriages & with less time they are moving to WA where the pay is up to twice what they are earning here. The catch is that their taxx will be twice as high & unless some wealth coaching they may not be any better off. They also have restarted with bigger debts & new mortgages.
Will they ever learn?.
Recall that ideally we need to have 1 million in capital outside the house to provide the income we need so as we don’t run out at age 70 as the bank suggests.
As we discussed with another David yesterday ‘what most need is a strategy to have the taxx man subsidise the mortgage’.
We must congratulate Ted for achieving ‘ inner eternal peace’.
The Bleus may have got "a poke in the eye" back.
Was the ‘Rainbow Warrior’ mentioned before the final as Don suggested to us on Monday?
Teams achieve their goals when there is wisdom, old heads & free spirits along with self discipline & a skill set. When at some stage in the RWC the Wallabies were ranked world No 2 then no one was blaming Robbie.
We welcome your call on 07 3848 1088 or email or visit our websites as here to coach you through the financial game.
John McAuliffe
Alison who returned from hot air ballooning in Turkey this week said she was in Declutter mode when we offered her David’s glass desks. It was David who left them with us & we are doing his Declutter for him.
Alison has also downsized house as Thomas was reluctant to work in the yard. In fact we commented that those who are now retiring with a rental property are selling as they find the negative cashflow is a negative with their spouse.
Also those who have ticked further are selling down as older couples find the big house is in fact a big chore. Downsizing & decluttering.
How many mini-skips to move?
This is what the retailers are finding at present. I.e. their sales are static because everyone has enough clutter & doesn’t need any more.
In fact Lester, a mortgage broker, recently told us that he is constrained so that he doesn’t provide loans to those which could leave them in financial hardship & have to sell the house.
What he also said was ‘it’s the clutter in the house that forces owners out of their mortgage’.
I.e. less clutter could mean for you less debt & less stress & maybe fewer working years.
Even the RBA could reward this with a 0.25% drop in the cash rate which helps the mortgage holder but not the retiree. Why the RBA drops rates because of the price of bananas only they could answer.
It was interesting to view a bank advertising that at age 70 most have no super left. Here is a bank suggesting save more & of course they want to give you investment advice.
Why is the world so at present? The banks& all knowing governments have brought us to where we are i.e. broke. Have a look at a bank’s share price over the last year.
Would they invest in the bank?
Will that bank planner be there next year or as Maureen stated ‘they could remember her father’s name a day later even though he had invested 750K with them’.
Over the years we have sat around a few kitchen tables & observed that those who have plenty of clutter can’t make the big decisions which go with wealth accumulation.
We suggested to Roger to Declutter before he actions his contemplated renovations. They then maybe smaller. his new borrowings might be smaller. It worked for us.
It has always been an axiom to save 10% but until SGC very few did.
Those who have recently bought into Brisbane property could be sitting on a 6.7% drop in price over the last year.
In fact Kevin who moved from his house 2 years ago had originally asked for 580k & eventually sold for 508k & a drop of 12% on his asking price. He is now very aware that his new mortgage is not reducing because it is in fact too big. He also said the new Mater home that was won along the road from him was advertised to be worth 1.2m & sold for 700K.
When we observe the Euro discussions then it is the bad loans to the beach lovers & those who want to retire at 50 on the public purse that have brought us to near collapse. It’s the big guys who have now need to Declutter their loans by 50%.
Interesting the IMF doesn’t want to do so maybe not a done deal yet. The Red Queen & White Duck might give the IMF another lecture.
Donna said recently shopping at Vinnie’s is where there are some great labels all for < $10.
We have found David’s glass desks invaluable & a serious discount to Freedom. The old truism is that ‘others trash is your treasure’.
There are bargains to be had whether as it be Irish banks as Doug suggested this week or ‘bargains galore’ as some brokers say.
We know Alistair who is selling property in the US which has fallen 40% & maybe you could purchase a town or two there. Others commented that the precious metals are worth considering.
This could all be true if you have decluttered your debts as then you have freedom to play.
This week we meet several who are off to WA. They have some wounds from marriages & with less time they are moving to WA where the pay is up to twice what they are earning here. The catch is that their taxx will be twice as high & unless some wealth coaching they may not be any better off. They also have restarted with bigger debts & new mortgages.
Will they ever learn?.
Recall that ideally we need to have 1 million in capital outside the house to provide the income we need so as we don’t run out at age 70 as the bank suggests.
As we discussed with another David yesterday ‘what most need is a strategy to have the taxx man subsidise the mortgage’.
We must congratulate Ted for achieving ‘ inner eternal peace’.
The Bleus may have got "a poke in the eye" back.
Was the ‘Rainbow Warrior’ mentioned before the final as Don suggested to us on Monday?
Teams achieve their goals when there is wisdom, old heads & free spirits along with self discipline & a skill set. When at some stage in the RWC the Wallabies were ranked world No 2 then no one was blaming Robbie.
We welcome your call on 07 3848 1088 or email or visit our websites as here to coach you through the financial game.
John McAuliffe
How long to go until this Volatility ends?
How long to go until this Volatility ends?
How long to go until this Volatility ends is the question participants in the ‘markets’ are asking at the moment.
That is why we did attend this week four presentations from those entrusted to manage billions of your dollars. Lets listen to those who probably know rather than read the headlines from the sub editors.
Hence we listened to four different fund managers this week & their estimates are we have up to another year of turmoil. This is also what Peter Q said in May.
Why? It is those European debts who have loaned monies to governments who are unable to pay their loans back. The total that European banks need to be recapitalised is 1.6 trillion according to one speaker on Tuesday. I.e. 1.6 x 10¹² .
In the US most banks have done so but not yet in Europe.
Banks too frequently have to be recapitalised which is another reason why they are trading lower as new shares will be offered at a discount to current prices.
We recall buying WBC @ 3.05 in 1980 & then when the late Kerry was wanting to buy them @ 2.50 we were concerned then. What percentage fall was that & what have they returned in dividends since then has been much appreciated?
Our first presentation also known as ‘death by PowerPoint’ opened with a slide of DJ’s opening on Boxing Day. Also now is a great time to buy prestige cars & vineyards.
That was a common theme by the fund managers. I.e. the markets are at a 30 year low. This of course doesn’t imply that they won’t go lower.
We also watch Sky Business & a common theme there is ‘ bearish’.
I.e. there is no great rush to ‘go long’ yet as the trend is still down.
Now is when a monthly averaging in amount is appropriate .
However lets be very aware that deposits in the bank at 6% won’t go to the capital you require to complete the gray lap in style.
Without reproducing the 50 line disclaimer which is at every presentation lets summarise.
• The 2010 – 2011 financial year All Ords return was 12% from 8% growth & 4% dividends.
• From 1983 to 2011 Average growth has been 7.5% with dividends 4% giving 11.5%p.a.
• These are well above bank deposit rates & ‘franking’ would add another 1%.
• As intuition suggests the longer the holding the less risk. There was no period longer than 7 years when returns were negative. This was over any period in last 100 years.
• The forward PEs @ 11 are still below the average of 14.8.
• Developing countries are driving growth & not the tired socialised West.
• Corporate Australian is strong with cash sitting on balance sheets.
• One fund manager participated in 650 company meetings. Does an individual do that?
• This fund manager visited Mongolia which is much closer to China than Australia.
• A selective view on commodities for iron ore, copper & thermal coal & oil.
• Currently Australian banks have lower growth but valuations are attractive.
• There are sound reasons why credit e.g. bonds should be in a portfolio. [legal right, capital position & more predictable income].
• This global income fund earned 9.8% over 1 year & the high yield fund 11.8%.
• Bonds & credit deserve an allocation in your portfolio. [we have suggested previously this to be your age]
• Bonds have a lower volatility with competitive returns.
• Bonds provide diversification & enhance income.
• Bonds provide a less aggressive way to achieve returns.
• The current banking funding risk is NOT the liquidity crisis of 2008.
• There is a slow growth fear due to long term debt
• The G7 countries have debt >70% GNP
• There are options to deleveraging & there are risks.
• Interest rates are dropping here & elsewhere.
• A small cap fund did 23% to 31 August which is in spite of volatility.
These are ‘bullet point’s & all can be expanded. However there is plenty of opportunity other than the bank deposit .
Jarrod the builder on Wednesday compared that the DIY at Bunning’s with the licensed builder is at best playing but most can’t do the serious building.
So too the capital you require for a lifestyle shouldn’t be delegated to DIY.
It’s too important for that.
These fund managers in all cases were as gray as we are.
Hence there is no rush yet to invest but invest we must as otherwise we outlive our money & rely on others. How much do you need for a 30 year holiday?
You are welcome to call on 07 3848 1088 or email or visit our websites
We read today that Robbie was a maths teacher as we were.
We now both coach & have some common background. [yes we did score in front of Miss World although Belinda probably doesn’t remember].
John McAuliffe
How long to go until this Volatility ends is the question participants in the ‘markets’ are asking at the moment.
That is why we did attend this week four presentations from those entrusted to manage billions of your dollars. Lets listen to those who probably know rather than read the headlines from the sub editors.
Hence we listened to four different fund managers this week & their estimates are we have up to another year of turmoil. This is also what Peter Q said in May.
Why? It is those European debts who have loaned monies to governments who are unable to pay their loans back. The total that European banks need to be recapitalised is 1.6 trillion according to one speaker on Tuesday. I.e. 1.6 x 10¹² .
In the US most banks have done so but not yet in Europe.
Banks too frequently have to be recapitalised which is another reason why they are trading lower as new shares will be offered at a discount to current prices.
We recall buying WBC @ 3.05 in 1980 & then when the late Kerry was wanting to buy them @ 2.50 we were concerned then. What percentage fall was that & what have they returned in dividends since then has been much appreciated?
Our first presentation also known as ‘death by PowerPoint’ opened with a slide of DJ’s opening on Boxing Day. Also now is a great time to buy prestige cars & vineyards.
That was a common theme by the fund managers. I.e. the markets are at a 30 year low. This of course doesn’t imply that they won’t go lower.
We also watch Sky Business & a common theme there is ‘ bearish’.
I.e. there is no great rush to ‘go long’ yet as the trend is still down.
Now is when a monthly averaging in amount is appropriate .
However lets be very aware that deposits in the bank at 6% won’t go to the capital you require to complete the gray lap in style.
Without reproducing the 50 line disclaimer which is at every presentation lets summarise.
• The 2010 – 2011 financial year All Ords return was 12% from 8% growth & 4% dividends.
• From 1983 to 2011 Average growth has been 7.5% with dividends 4% giving 11.5%p.a.
• These are well above bank deposit rates & ‘franking’ would add another 1%.
• As intuition suggests the longer the holding the less risk. There was no period longer than 7 years when returns were negative. This was over any period in last 100 years.
• The forward PEs @ 11 are still below the average of 14.8.
• Developing countries are driving growth & not the tired socialised West.
• Corporate Australian is strong with cash sitting on balance sheets.
• One fund manager participated in 650 company meetings. Does an individual do that?
• This fund manager visited Mongolia which is much closer to China than Australia.
• A selective view on commodities for iron ore, copper & thermal coal & oil.
• Currently Australian banks have lower growth but valuations are attractive.
• There are sound reasons why credit e.g. bonds should be in a portfolio. [legal right, capital position & more predictable income].
• This global income fund earned 9.8% over 1 year & the high yield fund 11.8%.
• Bonds & credit deserve an allocation in your portfolio. [we have suggested previously this to be your age]
• Bonds have a lower volatility with competitive returns.
• Bonds provide diversification & enhance income.
• Bonds provide a less aggressive way to achieve returns.
• The current banking funding risk is NOT the liquidity crisis of 2008.
• There is a slow growth fear due to long term debt
• The G7 countries have debt >70% GNP
• There are options to deleveraging & there are risks.
• Interest rates are dropping here & elsewhere.
• A small cap fund did 23% to 31 August which is in spite of volatility.
These are ‘bullet point’s & all can be expanded. However there is plenty of opportunity other than the bank deposit .
Jarrod the builder on Wednesday compared that the DIY at Bunning’s with the licensed builder is at best playing but most can’t do the serious building.
So too the capital you require for a lifestyle shouldn’t be delegated to DIY.
It’s too important for that.
These fund managers in all cases were as gray as we are.
Hence there is no rush yet to invest but invest we must as otherwise we outlive our money & rely on others. How much do you need for a 30 year holiday?
You are welcome to call on 07 3848 1088 or email or visit our websites
We read today that Robbie was a maths teacher as we were.
We now both coach & have some common background. [yes we did score in front of Miss World although Belinda probably doesn’t remember].
John McAuliffe
We wish to confirm that the plans insurer has admitted your Total & Temporary Disablement [TTD] claim
Dear Mr.
We wish to confirm that the plans insurer has admitted your Total & Temporary Disablement [TTD] claim for the period 31 July 2010 to 31 August 2011.
The calculation of your benefit is as follows
Total Gross payment for the period $63,462.75
31July 2010 to 31August 2011
Les PAYG tax $12,753.00
Net Benefit Payable $50,709.75
The amount of $50,709.75 has been deposited into your nominated account.To enable the insurer to further assess your claim please complete the following
Group Salary Continuance Progress Claim for 1 September 2011 to 30 September 2011
Please forward in the self addressed envelope attached.
Yes this is daily news for some person or family & helps do the job when your income ceases due to an accident or illness. In ‘Joseph’s’ case after a ‘minor’ stroke this is a major help in paying the mortgage & meals & all those other needs for the next year with maybe another extra year of payment.
Of course it never makes the ‘if it bleeds then lead’ headlines but huge sums, say Billions, are paid out per annum from the life industry.Hence the ‘What if’ it happens to you or me today?
Will the mortgage be paid?
What about the extra gap payments that the selfish medical system needs?
What about the rates, car bills, school fees, superannuation payments , carer & we could go on.
We welcome you to check out our websites i.e. www.wecoachwealth.com.au or www.wealthcoach.net.au where you can have an estimate on what the premium might be.
However a ‘quoting tool’ like all equipment needs experience & a license & there may be other needs or solutions to your problem.It is generally between 1% to 2% of your income or sum insured.
As our Young travel agent always said ‘if you can’t afford the insurance you can’t afford the trip’.
Welcome to call 07 3848 1088 or email or visit our websites for a Free initial chat.
Is that too hard?
Here to help you if we can & you wish
John McAuliffe
We wish to confirm that the plans insurer has admitted your Total & Temporary Disablement [TTD] claim for the period 31 July 2010 to 31 August 2011.
The calculation of your benefit is as follows
Total Gross payment for the period $63,462.75
31July 2010 to 31August 2011
Les PAYG tax $12,753.00
Net Benefit Payable $50,709.75
The amount of $50,709.75 has been deposited into your nominated account.To enable the insurer to further assess your claim please complete the following
Group Salary Continuance Progress Claim for 1 September 2011 to 30 September 2011
Please forward in the self addressed envelope attached.
Yes this is daily news for some person or family & helps do the job when your income ceases due to an accident or illness. In ‘Joseph’s’ case after a ‘minor’ stroke this is a major help in paying the mortgage & meals & all those other needs for the next year with maybe another extra year of payment.
Of course it never makes the ‘if it bleeds then lead’ headlines but huge sums, say Billions, are paid out per annum from the life industry.Hence the ‘What if’ it happens to you or me today?
Will the mortgage be paid?
What about the extra gap payments that the selfish medical system needs?
What about the rates, car bills, school fees, superannuation payments , carer & we could go on.
We welcome you to check out our websites i.e. www.wecoachwealth.com.au or www.wealthcoach.net.au where you can have an estimate on what the premium might be.
However a ‘quoting tool’ like all equipment needs experience & a license & there may be other needs or solutions to your problem.It is generally between 1% to 2% of your income or sum insured.
As our Young travel agent always said ‘if you can’t afford the insurance you can’t afford the trip’.
Welcome to call 07 3848 1088 or email or visit our websites for a Free initial chat.
Is that too hard?
Here to help you if we can & you wish
John McAuliffe
Do you thank Robbie
Do you thank Robbie?
Yes just maybe Robbie the coach could be a reason that the Wallabies won the Tri-nations for the first time in 10 years. Of course it can always be argued that playing @ home or a new captain or it was a damp ball that contributed to the result.
We certainly have seen some revolving doors recently in the AFL when teams don’t perform & the coaches are marched. Hence there is some correlation between coaches & results & the Arsenal recent result was a one off we hope.
As we do we have recently attended various professional seminars as that is an expectation of ourselves & clients to be able to provide not only the macro picture but also the micro. We could easily expand on each one but it was our last attendance at a technical seminar run by a major organization that really had us thinking.
The presentation had the theme how much better off clients will be after they have had financial advice.
So in the kit for that day which started with a disclaimer was a strategic update, a 160 page superannuation guide, a 46 page pocket guide& a regulatory insurance guide website.
These are all only summaries of Canberra red tape.
Now we used to love detail & our 1st degree is in Pure Maths. However this stuff is pure strangulation. At least with maths the rules doesn’t change.
However this stuff changes daily which is why 80% have no interest in their super as it is out of control.
Canberra is suggesting that clients be ‘player coaches’ & should be able to do their taxx returns on line & they shouldn’t need any coaching on all matters financial.
This could be on their possible largest asset which is their super or their biggest liability which is their mortgage or how do we retire on more than the pension or the ‘what ifs?’ of life.
How often does that work?
Whose benefit is in when the maximum taxx refund isn’t claimed or if there is a better taxx effective way to be paid?
Is there a better solution than a chook raffle after a personal tragedy?
Have you ever filled out a Centrelink form & how often do they want to be updated & what are the consequences?If the fallback is Canberra then that is the solution that only Canberra wants.
As the presentation discussed the major reason for advice is strategic.
One page of the presentation was that strategies are not ‘set & forget’.
• Strategies are meant to optimize your position
• They can be affected by changes in taxx, super & social security. I.e. Canberra
• Strategies can be affected by age, employment status & other variables
• Certainly cashflow affects all families & businesses.
As Robbie coaches it is the big picture which is reviewed on every Monday after the game & how to prepare for the next game. The details are then refined & acted on. As recent Wallaby events have shown there are always variables that should have been handled correctly.
As discussed previously preparation means the outcome should be better.
This means for you that at every financial decision some guidance is wise.
Isn’t your time & your money so valuable & important that you would not like to waste it.
A conclusion also made was that a review every second year did provide an improved outcome compared to those who ‘set & forget’.
I.e. there is a cost to not meet & review. Canberra is suggesting that clients opt in every second year. If they don’t then clients will be generally worse off in end benefits.
We will certainly opt in to opt out should clients opt out.
Peter this week is a believer in focusing on what he can control during times of market turmoil. This means concentrating on buying opportunities, keeping investment costs and taxes to a minimum --.
Other points in the article are
• to maximise super as you have to play by today’s rules
• focus on asset allocation [e.g. you could argue is your industry fund is balanced?]
• controlling the income flow of investments
• retiring latter as assets values have fallen. This means health is essential.
You might note ‘Having a takeaway coffee twice day costs Sydneysiders more than annual electricity bill | is a simple strategy.
Reviewing if your super bats for the other side is another idea when we read of misuse of union funds.
We have just been asked if Sandra was our dentist. As all know the dentist suggests every 6 months. The car requires a service every 6 months & if we recall correctly where Robbie’s grandstand is they require ‘road worthies’ every 6 months. Coaches need to on the training paddock with the players.
We suggested after the Tri Nations that maybe Robbie out coached the All Black coaches.
This week we have had very useful reviews which have generally settled any doubts.
Any communication is good & no communication builds up the negatives.
If you ‘are stuck’ & want to improve your financial game then you are welcome to call us on 07 3848 1088 or email us or visit our websites.
We promise that your time won’t be wasted & you will know more about your money.
It costs not to contact us & we are non- aligned & servicing clients for 27 years.
John McAuliffe
Yes just maybe Robbie the coach could be a reason that the Wallabies won the Tri-nations for the first time in 10 years. Of course it can always be argued that playing @ home or a new captain or it was a damp ball that contributed to the result.
We certainly have seen some revolving doors recently in the AFL when teams don’t perform & the coaches are marched. Hence there is some correlation between coaches & results & the Arsenal recent result was a one off we hope.
As we do we have recently attended various professional seminars as that is an expectation of ourselves & clients to be able to provide not only the macro picture but also the micro. We could easily expand on each one but it was our last attendance at a technical seminar run by a major organization that really had us thinking.
The presentation had the theme how much better off clients will be after they have had financial advice.
So in the kit for that day which started with a disclaimer was a strategic update, a 160 page superannuation guide, a 46 page pocket guide& a regulatory insurance guide website.
These are all only summaries of Canberra red tape.
Now we used to love detail & our 1st degree is in Pure Maths. However this stuff is pure strangulation. At least with maths the rules doesn’t change.
However this stuff changes daily which is why 80% have no interest in their super as it is out of control.
Canberra is suggesting that clients be ‘player coaches’ & should be able to do their taxx returns on line & they shouldn’t need any coaching on all matters financial.
This could be on their possible largest asset which is their super or their biggest liability which is their mortgage or how do we retire on more than the pension or the ‘what ifs?’ of life.
How often does that work?
Whose benefit is in when the maximum taxx refund isn’t claimed or if there is a better taxx effective way to be paid?
Is there a better solution than a chook raffle after a personal tragedy?
Have you ever filled out a Centrelink form & how often do they want to be updated & what are the consequences?If the fallback is Canberra then that is the solution that only Canberra wants.
As the presentation discussed the major reason for advice is strategic.
One page of the presentation was that strategies are not ‘set & forget’.
• Strategies are meant to optimize your position
• They can be affected by changes in taxx, super & social security. I.e. Canberra
• Strategies can be affected by age, employment status & other variables
• Certainly cashflow affects all families & businesses.
As Robbie coaches it is the big picture which is reviewed on every Monday after the game & how to prepare for the next game. The details are then refined & acted on. As recent Wallaby events have shown there are always variables that should have been handled correctly.
As discussed previously preparation means the outcome should be better.
This means for you that at every financial decision some guidance is wise.
Isn’t your time & your money so valuable & important that you would not like to waste it.
A conclusion also made was that a review every second year did provide an improved outcome compared to those who ‘set & forget’.
I.e. there is a cost to not meet & review. Canberra is suggesting that clients opt in every second year. If they don’t then clients will be generally worse off in end benefits.
We will certainly opt in to opt out should clients opt out.
Peter this week is a believer in focusing on what he can control during times of market turmoil. This means concentrating on buying opportunities, keeping investment costs and taxes to a minimum --.
Other points in the article are
• to maximise super as you have to play by today’s rules
• focus on asset allocation [e.g. you could argue is your industry fund is balanced?]
• controlling the income flow of investments
• retiring latter as assets values have fallen. This means health is essential.
You might note ‘Having a takeaway coffee twice day costs Sydneysiders more than annual electricity bill | is a simple strategy.
Reviewing if your super bats for the other side is another idea when we read of misuse of union funds.
We have just been asked if Sandra was our dentist. As all know the dentist suggests every 6 months. The car requires a service every 6 months & if we recall correctly where Robbie’s grandstand is they require ‘road worthies’ every 6 months. Coaches need to on the training paddock with the players.
We suggested after the Tri Nations that maybe Robbie out coached the All Black coaches.
This week we have had very useful reviews which have generally settled any doubts.
Any communication is good & no communication builds up the negatives.
If you ‘are stuck’ & want to improve your financial game then you are welcome to call us on 07 3848 1088 or email us or visit our websites.
We promise that your time won’t be wasted & you will know more about your money.
It costs not to contact us & we are non- aligned & servicing clients for 27 years.
John McAuliffe
Our one is smaller than your one!
Our one is smaller than your one!’ is the inference that some advertising regarding your superannuation fees makes.
But that is only part of the story.
What about the returns of the funds ,say balanced or growth or other, you are invested in.
Just maybe they too are smaller than our one.
It is usual to declare that ‘our one is bigger than your one ‘& this they have not been doing so.
So as is usual the big guys tell the biggest furbies.
What is of concern to you is the net return to you after fees.
It is the return that matters.
They may have on their sites the facility to compare fund fees.
However they do not have the facility to compare your net returns of the thousands of funds after fees have been deducted.
These returns can be calculated over various time frames which can provide you with a fair comparison on how your net fund return is performing.
So what is available.
We have the facility to compare funds types, many markets & many individual portfolios for you.
We have available the features & benefits comparison of 190 Australian funds which are the major industry, corporate, government, retail personal & employer funds.
This comparison can provide dollar for dollar comparison based on investment options & platforms.
A report of your fund comparison can be printed off.
Just suppose for the moment that your fund returns are smaller than others available. What is that going to cost you over your remaining working life.The market & competition is reducing fees between funds but it doesn’t do that for funds. That is where a fund comparator could be very worthwhile for you.
It may be very worth
while to have your fund, be it industry or a bank or any other fund compared. This will at least provide some peace of mind for you as it could even be your most important asset.
Of course there is more to it than just comparing funds. Maybe some other coaching & financial advice may leave you better off.
It is too important not to call us & compare your funds or not listen to advice or not make a plan.
Welcome to call us on 07 3848 1088 or email or visit our websites
John McAuliffe
But that is only part of the story.
What about the returns of the funds ,say balanced or growth or other, you are invested in.
Just maybe they too are smaller than our one.
It is usual to declare that ‘our one is bigger than your one ‘& this they have not been doing so.
So as is usual the big guys tell the biggest furbies.
What is of concern to you is the net return to you after fees.
It is the return that matters.
They may have on their sites the facility to compare fund fees.
However they do not have the facility to compare your net returns of the thousands of funds after fees have been deducted.
These returns can be calculated over various time frames which can provide you with a fair comparison on how your net fund return is performing.
So what is available.
We have the facility to compare funds types, many markets & many individual portfolios for you.
We have available the features & benefits comparison of 190 Australian funds which are the major industry, corporate, government, retail personal & employer funds.
This comparison can provide dollar for dollar comparison based on investment options & platforms.
A report of your fund comparison can be printed off.
Just suppose for the moment that your fund returns are smaller than others available. What is that going to cost you over your remaining working life.The market & competition is reducing fees between funds but it doesn’t do that for funds. That is where a fund comparator could be very worthwhile for you.
It may be very worth
while to have your fund, be it industry or a bank or any other fund compared. This will at least provide some peace of mind for you as it could even be your most important asset.
Of course there is more to it than just comparing funds. Maybe some other coaching & financial advice may leave you better off.
It is too important not to call us & compare your funds or not listen to advice or not make a plan.
Welcome to call us on 07 3848 1088 or email or visit our websites
John McAuliffe
Who do you know is next for Aged Care?
Who do you know is next for Aged Care?
Yes aged care is staring us in the face & as we have mentioned before it is a minefield. So much so that the productivity commission has just written a report ‘Caring for Older Australians’ & writes ‘the opaqueness of the system’.
Hence the current rules will be rewritten which happens in all games.
Michael S wrote on 16th August 16, 2011 of ‘it must make baby boomers pay more of their aged care bills.
So its countdown for you & I. How can we prepare for it? Yes having the funds is important & having the knowledge to prepare for it minimises your downside.
Remember Proper Preparation Prevents Piss Poor Performance.
Let’s look at some of the framework in Aged care as they stand @ August 2011.
The first step is to be assessed by ACAT [Aged Care Assessment Team].
ACAT assess & approve what kind of care will best suit your needs when you can’t manage at home without assistance.
There are two broad types of residential Aged care & the facilities offered can vary.
1. Low level care as hostels providing accommodation & personal care.
2. High level care nursing homes providing continuous care for those who are frail.
What are the Fees & Charges?
After classification into Low Level care then there is an Accommodation bond where the maximum can be all your assets minus $39,000.
This can be paid as a lump sum or periodically where the facility charges 9% or a combination of both. Out of this refundable bond the hostel can retain $3816 p.a. for 5 years.
This accommodation bond is exempt from Centrelink asset & income tests.
This is when it is important to seek advice before selling the family home.
In general when you enter aged care if your spouse remains in the home then the home is exempt from the Centrelink assets test.
If there is no spouse in the home then the home is not included as an asset for 2 years. The net rent is not assessable if the bond or charge is paid periodically.
I.e. if you sell the home it becomes an assessable asset. [this is the subject of the productivity report.
Then there are daily fees which are a basic daily fee and an income tested fee & an extra service fee.High level nursing home fees have a daily charge depending on your assets.
As above if your assets are less than 39,000 then there is no daily charge. Above $102,544 then the daily charge is 30.55. [August 2011]. In between it is [Assets -39,000] / 2080 = ?
What happens to the family home when assessed? It will be included as an asset unless
• A spouse or dependent child is living there
• or a carer eligible for income support for 2 years
• or a close relative eligible for income support for 5 years
This assets assessment is different from the Centrelink assessment.
What are the daily fees?
The standard resident contribution or Basic fee is 84% of the pension & currently 40.25 daily if non pension income <9,971 or for a couple 19,006. [there are variances on these.]
There is an income tested fee in both high & low level care. & has a daily maximum of 64.69.
This is calculated as [Total assessable income - total assessable income free area] X 5/12
Generally an Income free area is 22,045 for singles & 21577 each for couples.
If we were having this discussion in three years time & you were looking back over those three years what needs to have happened both personally & professionally for you to feel happy with your progress.
Hence you have an opportunity to reduce your total assessable income by utilising some planning & coaching.
There are strategies for this & you are welcome to contact us o 07 3848 1088 or email info@wealthcoach.net.au
A suggestion that maybe relevant for some is the use of various long term income streams.
As these may have a return of portion of your capital then you can reduce your assessable income down by this return of capital. Hence your income tested daily fees are reduced but not your income. These income streams can be tailored for you & hence are very flexible in their design for you.
John McAuliffe
Yes aged care is staring us in the face & as we have mentioned before it is a minefield. So much so that the productivity commission has just written a report ‘Caring for Older Australians’ & writes ‘the opaqueness of the system’.
Hence the current rules will be rewritten which happens in all games.
Michael S wrote on 16th August 16, 2011 of ‘it must make baby boomers pay more of their aged care bills.
So its countdown for you & I. How can we prepare for it? Yes having the funds is important & having the knowledge to prepare for it minimises your downside.
Remember Proper Preparation Prevents Piss Poor Performance.
Let’s look at some of the framework in Aged care as they stand @ August 2011.
The first step is to be assessed by ACAT [Aged Care Assessment Team].
ACAT assess & approve what kind of care will best suit your needs when you can’t manage at home without assistance.
There are two broad types of residential Aged care & the facilities offered can vary.
1. Low level care as hostels providing accommodation & personal care.
2. High level care nursing homes providing continuous care for those who are frail.
What are the Fees & Charges?
After classification into Low Level care then there is an Accommodation bond where the maximum can be all your assets minus $39,000.
This can be paid as a lump sum or periodically where the facility charges 9% or a combination of both. Out of this refundable bond the hostel can retain $3816 p.a. for 5 years.
This accommodation bond is exempt from Centrelink asset & income tests.
This is when it is important to seek advice before selling the family home.
In general when you enter aged care if your spouse remains in the home then the home is exempt from the Centrelink assets test.
If there is no spouse in the home then the home is not included as an asset for 2 years. The net rent is not assessable if the bond or charge is paid periodically.
I.e. if you sell the home it becomes an assessable asset. [this is the subject of the productivity report.
Then there are daily fees which are a basic daily fee and an income tested fee & an extra service fee.High level nursing home fees have a daily charge depending on your assets.
As above if your assets are less than 39,000 then there is no daily charge. Above $102,544 then the daily charge is 30.55. [August 2011]. In between it is [Assets -39,000] / 2080 = ?
What happens to the family home when assessed? It will be included as an asset unless
• A spouse or dependent child is living there
• or a carer eligible for income support for 2 years
• or a close relative eligible for income support for 5 years
This assets assessment is different from the Centrelink assessment.
What are the daily fees?
The standard resident contribution or Basic fee is 84% of the pension & currently 40.25 daily if non pension income <9,971 or for a couple 19,006. [there are variances on these.]
There is an income tested fee in both high & low level care. & has a daily maximum of 64.69.
This is calculated as [Total assessable income - total assessable income free area] X 5/12
Generally an Income free area is 22,045 for singles & 21577 each for couples.
If we were having this discussion in three years time & you were looking back over those three years what needs to have happened both personally & professionally for you to feel happy with your progress.
Hence you have an opportunity to reduce your total assessable income by utilising some planning & coaching.
There are strategies for this & you are welcome to contact us o 07 3848 1088 or email info@wealthcoach.net.au
A suggestion that maybe relevant for some is the use of various long term income streams.
As these may have a return of portion of your capital then you can reduce your assessable income down by this return of capital. Hence your income tested daily fees are reduced but not your income. These income streams can be tailored for you & hence are very flexible in their design for you.
John McAuliffe
what is a hangover Dad?
What is a hangover, Dad?
‘What is a hangover Dad’ was the question we were asked during our school run this morning. As ‘it wasn’t me’ as 2 beers after a run doesn’t do that we were remiss to ask ‘why do you ask?’.
However It did give us the opportunity to provide some analogies & connect them with some lessons to be learnt. But do we learn & those who might have suffered a 2nd hangover & even sworn off it sometimes don’t.
This is what the markets are suffering at present. Not of course those European politicians who were on their sacrosanct August holidays when decisions were needed to be made.
So the markets have had a riot of a party. We can only sympathise with those English Bobbies after teaching maths in North London in 1975 & 1976.
Why is the electorate so mad at present. Why would there be a riot of a poll if it was held today. Simply because all that is wrong in Europe we are seeing here. The English are taking their medicine after laboring with a government which was turfed out because they were very browned off. Just compare what Brown sold gold at then & the 1800p.oz it is today.
Now the rest of Europe is having its hangover & unfortunately when others have hangovers you don’t want to be around. This could be a long hangover as the European banks as Peter Q from Bell Potter suggested in April haven’t yet ‘dried out’ or recapitalised as they need to do.
Peter Q was also optimistic on next year & demonstrated with a template that this was ‘normal volatility’. He also suggested 15% correction & we may well have suffered more than that but it was fair guideline.
Very simply the party where we have Big Brother government provided the cheap plonk & the banks the cheap debt is over. It’s now back to individual responsibility where you are in charge of your destiny. It’s your choice whether to drink or not.
As coach Robbie Deans has pointed out & what the Wallabies didn’t do on last Saturday night ‘you must play what is in front of you’ & ‘you must earn the right & confront’ before going sideways. We understand at least two of those All Blacks have no hangovers as they intend to have a bigger party [maybe] in October.
Self discipline is what Dad would like a child to practice although we can’t be a spoil sport or ‘train cats’.
The electorate is mad because they have been ‘on the wagon’ for 3 years & the poll dancers & the ‘taxx & confiscate’ haven’t.
Why are there so many anti Red Queen emails circulating?
The secessionists in WA have been arguing so for a long time.It was scary to be advised that the IRS want to know [‘Important changes to US tax documentation processes. Due to changes made by the Internal Revenue Service (IRS), clients now need to submit their own tax documentation if they hold securities that pay U.S. derived income.
Read more...’]
There is a lesson here to be read & we suggest 1984 is a good read.
Cash & gold & basic common sense may well be kings.
As Dads do we need & try to be exemplary. It is time our elected leaders do the same. As individuals & companies most are behaving & reducing down debts & saving cash & staying out of DJs.
Is it now a better time to ‘Now when we say we have a deal, we mean we have a deal and today we have what could be THE BEST PRICED CENTRAL OTAGO PINOT NOIR IN AUSTRALIA, IF NOT THE WORLD, PRODUCED by AWARD WINNING winemaker Ant Moore the, Row 88 Central Otago Pinot Noir 2009. AT UNDER HALF OF ITS NORMAL PRICE FOR JUST $9.99 (DON’T PAY $25.99) this is one of those deals that even we find hard to fathom but get in quick as once word gets out that we have a Pinot Noir from NZ’s if not the world’s finest Pinot growing region Central Otago!
This above email just arrived & although tempting we will resist at least until October when those two AB forward abstainers might have a better excuse for a party.
DWM did indicate to us on Tuesday ‘I am going to be away for 2 months. While I'm away, use your discretion to invest some of my cash fund.’
Bret suggested today ‘Might buy this morning & sell this arvo & then invest the profits into some CFD's in currency for overnight, so I can make a fortune even when I go to bed. Can't possibly see how that could go wrong.’
We will resist all at least until October& you are welcome to call us on 07 3848 1088 or email us or visit our websites.
It’s HW time or practice before the next big game. Does your portfolio have the longevity for a full game.
When we ‘wake’ up we might find Big government is broke & can’t afford to party or pay your Ponzi scheme pensions any longer.
John McAuliffe
‘What is a hangover Dad’ was the question we were asked during our school run this morning. As ‘it wasn’t me’ as 2 beers after a run doesn’t do that we were remiss to ask ‘why do you ask?’.
However It did give us the opportunity to provide some analogies & connect them with some lessons to be learnt. But do we learn & those who might have suffered a 2nd hangover & even sworn off it sometimes don’t.
This is what the markets are suffering at present. Not of course those European politicians who were on their sacrosanct August holidays when decisions were needed to be made.
So the markets have had a riot of a party. We can only sympathise with those English Bobbies after teaching maths in North London in 1975 & 1976.
Why is the electorate so mad at present. Why would there be a riot of a poll if it was held today. Simply because all that is wrong in Europe we are seeing here. The English are taking their medicine after laboring with a government which was turfed out because they were very browned off. Just compare what Brown sold gold at then & the 1800p.oz it is today.
Now the rest of Europe is having its hangover & unfortunately when others have hangovers you don’t want to be around. This could be a long hangover as the European banks as Peter Q from Bell Potter suggested in April haven’t yet ‘dried out’ or recapitalised as they need to do.
Peter Q was also optimistic on next year & demonstrated with a template that this was ‘normal volatility’. He also suggested 15% correction & we may well have suffered more than that but it was fair guideline.
Very simply the party where we have Big Brother government provided the cheap plonk & the banks the cheap debt is over. It’s now back to individual responsibility where you are in charge of your destiny. It’s your choice whether to drink or not.
As coach Robbie Deans has pointed out & what the Wallabies didn’t do on last Saturday night ‘you must play what is in front of you’ & ‘you must earn the right & confront’ before going sideways. We understand at least two of those All Blacks have no hangovers as they intend to have a bigger party [maybe] in October.
Self discipline is what Dad would like a child to practice although we can’t be a spoil sport or ‘train cats’.
The electorate is mad because they have been ‘on the wagon’ for 3 years & the poll dancers & the ‘taxx & confiscate’ haven’t.
Why are there so many anti Red Queen emails circulating?
The secessionists in WA have been arguing so for a long time.It was scary to be advised that the IRS want to know [‘Important changes to US tax documentation processes. Due to changes made by the Internal Revenue Service (IRS), clients now need to submit their own tax documentation if they hold securities that pay U.S. derived income.
Read more...’]
There is a lesson here to be read & we suggest 1984 is a good read.
Cash & gold & basic common sense may well be kings.
As Dads do we need & try to be exemplary. It is time our elected leaders do the same. As individuals & companies most are behaving & reducing down debts & saving cash & staying out of DJs.
Is it now a better time to ‘Now when we say we have a deal, we mean we have a deal and today we have what could be THE BEST PRICED CENTRAL OTAGO PINOT NOIR IN AUSTRALIA, IF NOT THE WORLD, PRODUCED by AWARD WINNING winemaker Ant Moore the, Row 88 Central Otago Pinot Noir 2009. AT UNDER HALF OF ITS NORMAL PRICE FOR JUST $9.99 (DON’T PAY $25.99) this is one of those deals that even we find hard to fathom but get in quick as once word gets out that we have a Pinot Noir from NZ’s if not the world’s finest Pinot growing region Central Otago!
This above email just arrived & although tempting we will resist at least until October when those two AB forward abstainers might have a better excuse for a party.
DWM did indicate to us on Tuesday ‘I am going to be away for 2 months. While I'm away, use your discretion to invest some of my cash fund.’
Bret suggested today ‘Might buy this morning & sell this arvo & then invest the profits into some CFD's in currency for overnight, so I can make a fortune even when I go to bed. Can't possibly see how that could go wrong.’
We will resist all at least until October& you are welcome to call us on 07 3848 1088 or email us or visit our websites.
It’s HW time or practice before the next big game. Does your portfolio have the longevity for a full game.
When we ‘wake’ up we might find Big government is broke & can’t afford to party or pay your Ponzi scheme pensions any longer.
John McAuliffe
Whether renunciation is right for you
Whether renunciation is right for you‘
Simon grills the world's foremost renunciation expert on the how-tos of giving up US citizenship. If you've ever wondered 'whether renunciation is right for you’ is an excerpt from Simon of sovereignman.com
& just maybe the option you are considering now that you will be slugged with another proposed taxx.
This Carbon Taxx just might be the last straw for you & maybe fleeing which is a prehistoric male mood maybe the solution for you.
We certainly know of several blue heeler Aussies who are very keen to leave their mummy or is it their nanny state.
There is David who has a MBA & MCommLaw who his wife says ‘We have to go as we have no option’. David just can’t wait to leave as what is the point of staying in the 14th most expensive city in the world when taxx takes close to half, 45%, his income after expenses.
There is Peter who not only spent 5 years on a horse in the Northern Territory but also built a successful consulting business & established various businesses. He to wants to leave permanently even though he has a granddaughter here.
In fact there would be over 1 million expatriates or Diaspora & they aren’t all doing the grey lap or the OE trip.
The frustration at what is happening in US is also happening here in AUS.
Today only 27% approve of the current big government & either persuasion is questionable.
Privacy is another issue for another day.
As we all know Taxx is wasted & spent on pet projects.
You can use your funds better.
This is reflected in the attitude that ‘If we don't keep cost competitive, (investors) will go elsewhere, that's the reality," she said’.
So mining jobs leave. Let’s kill the goose.
So your equities in your super fund which is your pension loses more.
Thank you very much poll dancers.
Dominic next door pointed out that he pays 45k in taxx. Ok he must earn a lot but then his employer believes he is worth it. We certainly don’t begrudge him his income as we know his occupation. He can’t leave his family just because his taxx is ridiculous.
So what is he to do.
We gather that costs will increase due to this carbon taxx.
That means to Dominic & home buyers that rates will go up when inflation picks up.
Thank you very much poll dancers.
We do have a simple strategy for him which is to have the taxx man over time ‘subsidise his mortgage’ & create a portfolio outside super.
There are many different ‘taxx structures’ available to you & you don’t need to investigate Labuan to minimise your taxx.
If you are our age then an allocated pension pays zero taxx on its earnings & there is also a 15% rebate to you.
If you are George & turned 55 recently then you to should convert all your super to a similar pension.
If your wife isn’t earning then income & assets in her name is a simple solution.
If you are both earning over 37K then you will be on 32.5% MTR. There is a better way.
And an idea that just entered our mail box.
From 1 July 2011 the exempt asset amount increased from $11,000 to $11,250. This means that a client can now receive up to $438.75 per annum in extra age pension. This is also an opportunity to review your existing funeral bond clients as they can top up their funeral bond so long as total contributions do not exceed the new $11,250 limit.
Not exciting but appropriate for many & a simple idea.
If your super ‘bats for the other side’ then maybe you should reconsider where your fund’s administration fees go.
We have argued the cost benefits to you recently.
We have many more ideas & you are welcome to call on 07 3848 1088 or email or visit our websites. Dominic also mentioned that you needed 2 million in capital to retire on. That is right & the traditional way won’t get you there.
Recall that the poll dancers believe 500K before capping contributions is sufficient for you
We promise you will know more about your finances after our meeting.
John McAuliffe
Simon grills the world's foremost renunciation expert on the how-tos of giving up US citizenship. If you've ever wondered 'whether renunciation is right for you’ is an excerpt from Simon of sovereignman.com
& just maybe the option you are considering now that you will be slugged with another proposed taxx.
This Carbon Taxx just might be the last straw for you & maybe fleeing which is a prehistoric male mood maybe the solution for you.
We certainly know of several blue heeler Aussies who are very keen to leave their mummy or is it their nanny state.
There is David who has a MBA & MCommLaw who his wife says ‘We have to go as we have no option’. David just can’t wait to leave as what is the point of staying in the 14th most expensive city in the world when taxx takes close to half, 45%, his income after expenses.
There is Peter who not only spent 5 years on a horse in the Northern Territory but also built a successful consulting business & established various businesses. He to wants to leave permanently even though he has a granddaughter here.
In fact there would be over 1 million expatriates or Diaspora & they aren’t all doing the grey lap or the OE trip.
The frustration at what is happening in US is also happening here in AUS.
Today only 27% approve of the current big government & either persuasion is questionable.
Privacy is another issue for another day.
As we all know Taxx is wasted & spent on pet projects.
You can use your funds better.
This is reflected in the attitude that ‘If we don't keep cost competitive, (investors) will go elsewhere, that's the reality," she said’.
So mining jobs leave. Let’s kill the goose.
So your equities in your super fund which is your pension loses more.
Thank you very much poll dancers.
Dominic next door pointed out that he pays 45k in taxx. Ok he must earn a lot but then his employer believes he is worth it. We certainly don’t begrudge him his income as we know his occupation. He can’t leave his family just because his taxx is ridiculous.
So what is he to do.
We gather that costs will increase due to this carbon taxx.
That means to Dominic & home buyers that rates will go up when inflation picks up.
Thank you very much poll dancers.
We do have a simple strategy for him which is to have the taxx man over time ‘subsidise his mortgage’ & create a portfolio outside super.
There are many different ‘taxx structures’ available to you & you don’t need to investigate Labuan to minimise your taxx.
If you are our age then an allocated pension pays zero taxx on its earnings & there is also a 15% rebate to you.
If you are George & turned 55 recently then you to should convert all your super to a similar pension.
If your wife isn’t earning then income & assets in her name is a simple solution.
If you are both earning over 37K then you will be on 32.5% MTR. There is a better way.
And an idea that just entered our mail box.
From 1 July 2011 the exempt asset amount increased from $11,000 to $11,250. This means that a client can now receive up to $438.75 per annum in extra age pension. This is also an opportunity to review your existing funeral bond clients as they can top up their funeral bond so long as total contributions do not exceed the new $11,250 limit.
Not exciting but appropriate for many & a simple idea.
If your super ‘bats for the other side’ then maybe you should reconsider where your fund’s administration fees go.
We have argued the cost benefits to you recently.
We have many more ideas & you are welcome to call on 07 3848 1088 or email or visit our websites. Dominic also mentioned that you needed 2 million in capital to retire on. That is right & the traditional way won’t get you there.
Recall that the poll dancers believe 500K before capping contributions is sufficient for you
We promise you will know more about your finances after our meeting.
John McAuliffe
Have you compared the Two?
Have you compared the two?
Yes we are continually interrupted with an advt. asking us this question.
So we decided to do some HW by venturing to such an industry fund who somehow can afford the large sums [a contemporary recently suggested $18m] for TV advertising.
We didn’t find the answers on the first page of the website although they do have a calculator on their site suggesting you use it.
However we just wanted the answers & it will be in the PDS.
You have to search hard to find the PDS & then under fees you find the answer.
It is not that simple because they never are.
We have copied their fees page from their PDS.
An example of annual fees
Here’s an example of how the fees and costs in the Balanced option for this product can affect your superannuation investment over a one-year period.
You should use this table to compare this product with other superannuation products.
Example - the Balanced Investment Option Balance of $50,000 with total contributions of $5,000 during the year
Contributions fees Nil
For every $5,000 you put in, you will be charged $0.
Plus: Management costs
0.65% plus $78 ($1.50 per week)
And for every $50,000 you have in the fund you'll be charged $325 each year, plus $78 in administration fees regardless of your balance.
Equals: Cost of fund
If you put in $5,000 during a year and your balance was $50,000, then for that year you'll be charged fees of $403.
What it costs will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.
Account management costs Amount Administration fee $1.50 per week
Adviser service fee
This is deducted after you authorise payment to an eligible adviser for the advice you receive about your investment.
This fee is automatically set at zero but can be negotiated between you and your adviser up to the following limits:
Initial advice: $4,659.10
Once-off advice: $2,329.55
Member Benefit Protection (MBP) for 2009/10 # 0.05% pa
Additional service fee Amount Binding nomination fee
This is the annual fee charged if you decide to make a Binding Death Benefit Nomination. $10 per year.
This article suggests a very good reason why you do so.
Hence we conclude that their administration fees which is what they are wanting us to compare to are not as cheap as they suggest.
I.e. it is [0.65% & .05% = 0.70%] + $78p.a. + $10 = 0.70% +$88
Are we sure that it is their hands they are holding?
We suggest that for you we can generally do this cheaper.
It is implied that theirs is better than others but closer examination suggests that may not be so.
We heard 25 years ago that about from the weather the world’s most boring question is
‘what is the cost’?
And certainly cost is a factor & we have answered this for you.
There is No debate that the biggest cost is the government 15% taxx grab within the fund. Why doesn’t government reduce that?
They have made a start by refund contributions taxx next year but why not this financial year. A $ is worth less next year.
Why did the Liberals disagree with this excellent Labour idea? Is it their only one?
Apart from cost three other issues within your super are
• the returns & many funds on a platform will beat their fund returns.
• when is the contributions taxx paid as the ATO shouldn’t get it a day before necessary.
• the insurance definitions are a minefield & need close examination in many cases. You get what you pay for.
E.g. are you covered if your employer doesn’t pay or if you leave that employer.
And what about the trustees & beneficiaries?
We read today 5th July 2011 that
‘Serious concerns about longevity risk are being expressed by Australians over 50’.
The majority of Australians approaching retirement have grave fears they will outlive their savings, a new industry survey has shown.
The second MetLife International Employee Benefits Trends Study revealed 52 per cent of respondents over the age of 51 were extremely worried they would outspend their savings.
However, according to MetLife, only 40 per cent of individuals were actually taking action to boost their retirement savings while they were still working.
Currently, the average superannuation asset balance for people over 50 was $52,500, the research showed.
To compound this current lack of savings, the research found 25 per cent of participants were unable to plan for the future and were continuing to live from pay packet to pay packet. Furthermore, most people had some form of debt to service as well.
The survey did uncover a desire to take some action, starting with education, with a large number of employees calling for methods to improve their ability to plan their financial future.
Employers are also concerned about the generation on the verge of retirement and the impact it will have on the workforce. Reflective of this sentiment was the fact 90 per cent of respondents named employee retention as their first and foremost priority.
"Australians look to their chosen superannuation fund and their employers when they consider their personal insurance and financial protection needs. With both the economy and the labour market heating up, there is a real opportunity to explore innovation in benefits packages, including flexible retirement solutions,"
The survey was conducted between November 2010 and February 2011 by GFK Custom Research on behalf of MetLife, with the opinions of 258 people sought
We could conclude that you need advice today.
We will certainly suggest that our advice fee will be a fraction of theirs because we don’t have the ego or the advertising or the overheads or the party that they do.
And we have been helping & advising for 27 years which beats almost all.
Here to help you 24/6 if you wish.
Welcome to call on 07 3848 1088
or email info@wecoachwealth.com.au
or visit our websiteswww.wecoachwealth.com.au
John McAuliffe
Yes we are continually interrupted with an advt. asking us this question.
So we decided to do some HW by venturing to such an industry fund who somehow can afford the large sums [a contemporary recently suggested $18m] for TV advertising.
We didn’t find the answers on the first page of the website although they do have a calculator on their site suggesting you use it.
However we just wanted the answers & it will be in the PDS.
You have to search hard to find the PDS & then under fees you find the answer.
It is not that simple because they never are.
We have copied their fees page from their PDS.
An example of annual fees
Here’s an example of how the fees and costs in the Balanced option for this product can affect your superannuation investment over a one-year period.
You should use this table to compare this product with other superannuation products.
Example - the Balanced Investment Option Balance of $50,000 with total contributions of $5,000 during the year
Contributions fees Nil
For every $5,000 you put in, you will be charged $0.
Plus: Management costs
0.65% plus $78 ($1.50 per week)
And for every $50,000 you have in the fund you'll be charged $325 each year, plus $78 in administration fees regardless of your balance.
Equals: Cost of fund
If you put in $5,000 during a year and your balance was $50,000, then for that year you'll be charged fees of $403.
What it costs will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.
Account management costs Amount Administration fee $1.50 per week
Adviser service fee
This is deducted after you authorise payment to an eligible adviser for the advice you receive about your investment.
This fee is automatically set at zero but can be negotiated between you and your adviser up to the following limits:
Initial advice: $4,659.10
Once-off advice: $2,329.55
Member Benefit Protection (MBP) for 2009/10 # 0.05% pa
Additional service fee Amount Binding nomination fee
This is the annual fee charged if you decide to make a Binding Death Benefit Nomination. $10 per year.
This article suggests a very good reason why you do so.
Hence we conclude that their administration fees which is what they are wanting us to compare to are not as cheap as they suggest.
I.e. it is [0.65% & .05% = 0.70%] + $78p.a. + $10 = 0.70% +$88
Are we sure that it is their hands they are holding?
We suggest that for you we can generally do this cheaper.
It is implied that theirs is better than others but closer examination suggests that may not be so.
We heard 25 years ago that about from the weather the world’s most boring question is
‘what is the cost’?
And certainly cost is a factor & we have answered this for you.
There is No debate that the biggest cost is the government 15% taxx grab within the fund. Why doesn’t government reduce that?
They have made a start by refund contributions taxx next year but why not this financial year. A $ is worth less next year.
Why did the Liberals disagree with this excellent Labour idea? Is it their only one?
Apart from cost three other issues within your super are
• the returns & many funds on a platform will beat their fund returns.
• when is the contributions taxx paid as the ATO shouldn’t get it a day before necessary.
• the insurance definitions are a minefield & need close examination in many cases. You get what you pay for.
E.g. are you covered if your employer doesn’t pay or if you leave that employer.
And what about the trustees & beneficiaries?
We read today 5th July 2011 that
‘Serious concerns about longevity risk are being expressed by Australians over 50’.
The majority of Australians approaching retirement have grave fears they will outlive their savings, a new industry survey has shown.
The second MetLife International Employee Benefits Trends Study revealed 52 per cent of respondents over the age of 51 were extremely worried they would outspend their savings.
However, according to MetLife, only 40 per cent of individuals were actually taking action to boost their retirement savings while they were still working.
Currently, the average superannuation asset balance for people over 50 was $52,500, the research showed.
To compound this current lack of savings, the research found 25 per cent of participants were unable to plan for the future and were continuing to live from pay packet to pay packet. Furthermore, most people had some form of debt to service as well.
The survey did uncover a desire to take some action, starting with education, with a large number of employees calling for methods to improve their ability to plan their financial future.
Employers are also concerned about the generation on the verge of retirement and the impact it will have on the workforce. Reflective of this sentiment was the fact 90 per cent of respondents named employee retention as their first and foremost priority.
"Australians look to their chosen superannuation fund and their employers when they consider their personal insurance and financial protection needs. With both the economy and the labour market heating up, there is a real opportunity to explore innovation in benefits packages, including flexible retirement solutions,"
The survey was conducted between November 2010 and February 2011 by GFK Custom Research on behalf of MetLife, with the opinions of 258 people sought
We could conclude that you need advice today.
We will certainly suggest that our advice fee will be a fraction of theirs because we don’t have the ego or the advertising or the overheads or the party that they do.
And we have been helping & advising for 27 years which beats almost all.
Here to help you 24/6 if you wish.
Welcome to call on 07 3848 1088
or email info@wecoachwealth.com.au
or visit our websiteswww.wecoachwealth.com.au
John McAuliffe
New development in Crows Nest
We are very pleased to be able to offer clients early access to the a new development in Crows Nest NSW.
The building consists largely of one bedroom + study/guestroom apartments.
They offer a very spacious 61m2 of internal space and 8m2 wintergarden (or logier).
There are also a handful of corner position two bedroom apartments for those perhaps looking at an owner-occupier option.
These range in size from 81m2 internally to 92m2 internally with 8-9m2 wintergardens or balconies.
The building offers good value on a price per square meter basis, strong projected rental returns and very high level of finishes.
The development is due to commence construction in September 2011 with completion in early-mid 2013.
Pricing;
1. One bedroom + study/guestroom apartments ; $545,000 to $610,000 (remember zero stamp-duty under $600,000)
2. Two bedroom apartments; $810,000 to $895,000
Process;
• The VIP launch will be held on the weekend of the 9th & 10th July.
Please contact us for the Purchase Procedures document for a full explanation of the process.
• $10,000 Expression of Interest deposits will be required.
For your further information such as floor plates, sample floor plans, rental appraisals, outgoings and images of the development please contact us.
Note that we can provide deprecation schedules so we will be able to provide cash-flow analyses.
If you may be interested in the development please do not hesitate to call us on
07 3848 1088
Alternatively you can email us on info@wecoachwealth.com.au .
We will be pleased to speak to any interest parties and assist them with their enquiries.
John McAuliffe
The building consists largely of one bedroom + study/guestroom apartments.
They offer a very spacious 61m2 of internal space and 8m2 wintergarden (or logier).
There are also a handful of corner position two bedroom apartments for those perhaps looking at an owner-occupier option.
These range in size from 81m2 internally to 92m2 internally with 8-9m2 wintergardens or balconies.
The building offers good value on a price per square meter basis, strong projected rental returns and very high level of finishes.
The development is due to commence construction in September 2011 with completion in early-mid 2013.
Pricing;
1. One bedroom + study/guestroom apartments ; $545,000 to $610,000 (remember zero stamp-duty under $600,000)
2. Two bedroom apartments; $810,000 to $895,000
Process;
• The VIP launch will be held on the weekend of the 9th & 10th July.
Please contact us for the Purchase Procedures document for a full explanation of the process.
• $10,000 Expression of Interest deposits will be required.
For your further information such as floor plates, sample floor plans, rental appraisals, outgoings and images of the development please contact us.
Note that we can provide deprecation schedules so we will be able to provide cash-flow analyses.
If you may be interested in the development please do not hesitate to call us on
07 3848 1088
Alternatively you can email us on info@wecoachwealth.com.au .
We will be pleased to speak to any interest parties and assist them with their enquiries.
John McAuliffe
what the seers are saying!
Yes you are right & What the financial commentators are saying ?
Yes we are where Peter from Bell Potter says we are in the cycle.
Peter showed us on a template during his lunchtime address on Tuesday that we are in the ‘year of volatility’ that is normal.
So it is normal to be down by 13% during the 2nd year after governments bails out the banks.
Peter expects at least 2 of the PIIGS to default as ‘Europe is sad & bad’.
However if PIG do fall then at most 3% of Europe wealth.
He commented that OECD government bonds are greater that the OECD net wealth & that it takes 5 to 14 years for government deficits to be reduced to sustainable levels.
Peter is optimistic about China prospects as 36 million more units & infrastructure is being built in Tier 2, 3 cities.
In Australia rates will go up to 5.75% in a year’s time & hence exchange rates will stay above parity for longer.
He observed that overseas fund managers consider the government ‘ hopeless’ & hence are repatriating their funds out.
This is another reason why equity markets have weakened.
Thanks again ‘poll dancers’.
After August 2012 Peter suggests as Peter from Sky Business says it is ‘off to the races’ with a gain of 40%.
Then we have Porter from The USA forecasting ‘the end of America’.
He is particularly negative. We have been following him for 3 years & he has made the big calls correctly. He particularly blames big government & their causes of most of the volatility.
He suggests this is caused by paper money, the explosion of debt, the military & where losses e.g. GFC are socialised but the profits are private.Porter is placing all his core shares on hold & has some ‘shorts’ on financials & even more trouble on the US real estate market.
He calls this 'the Great Correction’.
Then we have Steve who have subscribed to for 4 years.
Although he would prefer to be optimistic he comments that ‘the trend is down’ & markets are ‘wobbly’.
Hence again his core stocks are on hold & he is only adding gold at present as are the above two. Where else do the big players park their money?
Then we read this morning from Doug who summarises it all with ‘we are not out of the woods yet’.
It all depends on the US reporting season & if negative then ‘it will in effect serve as a great low-risk buying opportunity when the dust settles’.
So you are right as ‘Australian retail cash deposits are at a record high of $560 billion, an 8.9% increase for the year to March and 1.5% increase for the quarter to March, according to the latest CoreData Australian Cash report.
Credit unions, interestingly enough, have been growing at an above system rate of 10.1% for the year to March and 1.6% for the quarter to March 201’.
What the commentators say doesn’t necessarily help you.
Leaving funds in cash forever doesn’t achieve that 1,000,000 very fast.
We all have the challenges of wanting or needing to be independent of government as at present they are all broke or on the path to being so.
The Common thread of all this is ‘Sovereign risk’ & with 500+billion in government bonds Australia is on the slippery slope.
We have the challenges of becoming a millionaire with a million in capital outside the house, less taxx & less debt.
It also means good health & from what we have observed recently some better estate planning.
Here to help you & welcome to call on 07 3848 1088 or email
John McAuliffe
Yes we are where Peter from Bell Potter says we are in the cycle.
Peter showed us on a template during his lunchtime address on Tuesday that we are in the ‘year of volatility’ that is normal.
So it is normal to be down by 13% during the 2nd year after governments bails out the banks.
Peter expects at least 2 of the PIIGS to default as ‘Europe is sad & bad’.
However if PIG do fall then at most 3% of Europe wealth.
He commented that OECD government bonds are greater that the OECD net wealth & that it takes 5 to 14 years for government deficits to be reduced to sustainable levels.
Peter is optimistic about China prospects as 36 million more units & infrastructure is being built in Tier 2, 3 cities.
In Australia rates will go up to 5.75% in a year’s time & hence exchange rates will stay above parity for longer.
He observed that overseas fund managers consider the government ‘ hopeless’ & hence are repatriating their funds out.
This is another reason why equity markets have weakened.
Thanks again ‘poll dancers’.
After August 2012 Peter suggests as Peter from Sky Business says it is ‘off to the races’ with a gain of 40%.
Then we have Porter from The USA forecasting ‘the end of America’.
He is particularly negative. We have been following him for 3 years & he has made the big calls correctly. He particularly blames big government & their causes of most of the volatility.
He suggests this is caused by paper money, the explosion of debt, the military & where losses e.g. GFC are socialised but the profits are private.Porter is placing all his core shares on hold & has some ‘shorts’ on financials & even more trouble on the US real estate market.
He calls this 'the Great Correction’.
Then we have Steve who have subscribed to for 4 years.
Although he would prefer to be optimistic he comments that ‘the trend is down’ & markets are ‘wobbly’.
Hence again his core stocks are on hold & he is only adding gold at present as are the above two. Where else do the big players park their money?
Then we read this morning from Doug who summarises it all with ‘we are not out of the woods yet’.
It all depends on the US reporting season & if negative then ‘it will in effect serve as a great low-risk buying opportunity when the dust settles’.
So you are right as ‘Australian retail cash deposits are at a record high of $560 billion, an 8.9% increase for the year to March and 1.5% increase for the quarter to March, according to the latest CoreData Australian Cash report.
Credit unions, interestingly enough, have been growing at an above system rate of 10.1% for the year to March and 1.6% for the quarter to March 201’.
What the commentators say doesn’t necessarily help you.
Leaving funds in cash forever doesn’t achieve that 1,000,000 very fast.
We all have the challenges of wanting or needing to be independent of government as at present they are all broke or on the path to being so.
The Common thread of all this is ‘Sovereign risk’ & with 500+billion in government bonds Australia is on the slippery slope.
We have the challenges of becoming a millionaire with a million in capital outside the house, less taxx & less debt.
It also means good health & from what we have observed recently some better estate planning.
Here to help you & welcome to call on 07 3848 1088 or email
John McAuliffe
Yes you are right & what the seers are saying
Yes you are right & What the financial commentators are saying ?
Yes we are where Peter from Bell Potter says we are in the cycle.
Peter showed us on a template during his lunchtime address on Tuesday that we are in the ‘year of volatility’ that is normal.
So it is normal to be down by 13% during the 2nd year after governments bails out the banks.
Peter expects at least 2 of the PIIGS to default as ‘Europe is sad & bad’.
However if PIG do fall then at most 3% of Europe wealth.
He commented that OECD government bonds are greater that the OECD net wealth & that it takes 5 to 14 years for government deficits to be reduced to sustainable levels.
Peter is optimistic about China prospects as 36 million more units & infrastructure is being built in Tier 2, 3 cities.
In Australia rates will go up to 5.75% in a year’s time & hence exchange rates will stay above parity for longer.
He observed that overseas fund managers consider the government ‘ hopeless’ & hence are repatriating their funds out.
This is another reason why equity markets have weakened.
Thanks again ‘poll dancers’.
After August 2012 Peter suggests as Peter from Sky Business says it is ‘off to the races’ with a gain of 40%.
Then we have Porter from The USA forecasting ‘the end of America’.
He is particularly negative. We have been following him for 3 years & he has made the big calls correctly. He particularly blames big government & their causes of most of the volatility.
He suggests this is caused by paper money, the explosion of debt, the military & where losses e.g. GFC are socialised but the profits are private.Porter is placing all his core shares on hold & has some ‘shorts’ on financials & even more trouble on the US real estate market.
He calls this 'the Great Correction’.
Then we have Steve who have subscribed to for 4 years.
Although he would prefer to be optimistic he comments that ‘the trend is down’ & markets are ‘wobbly’.
Hence again his core stocks are on hold & he is only adding gold at present as are the above two. Where else do the big players park their money?
Then we read this morning from Doug who summarises it all with ‘we are not out of the woods yet’.
It all depends on the US reporting season & if negative then ‘it will in effect serve as a great low-risk buying opportunity when the dust settles’.
So you are right as ‘Australian retail cash deposits are at a record high of $560 billion, an 8.9% increase for the year to March and 1.5% increase for the quarter to March, according to the latest CoreData Australian Cash report.
Credit unions, interestingly enough, have been growing at an above system rate of 10.1% for the year to March and 1.6% for the quarter to March 201’.
What the commentators say doesn’t necessarily help you.
Leaving funds in cash forever doesn’t achieve that 1,000,000 very fast.
We all have the challenges of wanting or needing to be independent of government as at present they are all broke or on the path to being so.
The Common thread of all this is ‘Sovereign risk’ & with 500+billion in government bonds Australia is on the slippery slope.
We have the challenges of becoming a millionaire with a million in capital outside the house, less taxx & less debt.
It also means good health & from what we have observed recently some better estate planning.
Here to help you & welcome to call on 07 3848 1088 or email
John McAuliffe
Yes we are where Peter from Bell Potter says we are in the cycle.
Peter showed us on a template during his lunchtime address on Tuesday that we are in the ‘year of volatility’ that is normal.
So it is normal to be down by 13% during the 2nd year after governments bails out the banks.
Peter expects at least 2 of the PIIGS to default as ‘Europe is sad & bad’.
However if PIG do fall then at most 3% of Europe wealth.
He commented that OECD government bonds are greater that the OECD net wealth & that it takes 5 to 14 years for government deficits to be reduced to sustainable levels.
Peter is optimistic about China prospects as 36 million more units & infrastructure is being built in Tier 2, 3 cities.
In Australia rates will go up to 5.75% in a year’s time & hence exchange rates will stay above parity for longer.
He observed that overseas fund managers consider the government ‘ hopeless’ & hence are repatriating their funds out.
This is another reason why equity markets have weakened.
Thanks again ‘poll dancers’.
After August 2012 Peter suggests as Peter from Sky Business says it is ‘off to the races’ with a gain of 40%.
Then we have Porter from The USA forecasting ‘the end of America’.
He is particularly negative. We have been following him for 3 years & he has made the big calls correctly. He particularly blames big government & their causes of most of the volatility.
He suggests this is caused by paper money, the explosion of debt, the military & where losses e.g. GFC are socialised but the profits are private.Porter is placing all his core shares on hold & has some ‘shorts’ on financials & even more trouble on the US real estate market.
He calls this 'the Great Correction’.
Then we have Steve who have subscribed to for 4 years.
Although he would prefer to be optimistic he comments that ‘the trend is down’ & markets are ‘wobbly’.
Hence again his core stocks are on hold & he is only adding gold at present as are the above two. Where else do the big players park their money?
Then we read this morning from Doug who summarises it all with ‘we are not out of the woods yet’.
It all depends on the US reporting season & if negative then ‘it will in effect serve as a great low-risk buying opportunity when the dust settles’.
So you are right as ‘Australian retail cash deposits are at a record high of $560 billion, an 8.9% increase for the year to March and 1.5% increase for the quarter to March, according to the latest CoreData Australian Cash report.
Credit unions, interestingly enough, have been growing at an above system rate of 10.1% for the year to March and 1.6% for the quarter to March 201’.
What the commentators say doesn’t necessarily help you.
Leaving funds in cash forever doesn’t achieve that 1,000,000 very fast.
We all have the challenges of wanting or needing to be independent of government as at present they are all broke or on the path to being so.
The Common thread of all this is ‘Sovereign risk’ & with 500+billion in government bonds Australia is on the slippery slope.
We have the challenges of becoming a millionaire with a million in capital outside the house, less taxx & less debt.
It also means good health & from what we have observed recently some better estate planning.
Here to help you & welcome to call on 07 3848 1088 or email
John McAuliffe
The following three projects recently listed by our Melbourne Residential Projects Team.
Each project offers its own unique appeal, below is a brief description of each;
1. 587-589 Elizabeth Street, Melbourne VIC
a. Boutique development of 55 apartments close to Queen Victoria Market, the University of Melbourne and the Royal Melbourne Hospital
b. Developed by Austgroup Holdings and designed by Architects Eat
c. Project due for commencement in December 2011 (so significant stamp-duty savings available now) and due for completion 18 months thereafter
d. One bedroom apartments 45m2 internal to 60m2 internal ($380,000 to $435,000)
e. Two bedroom apartments 53m2 internal to 68m2 internal ($390,000 to $560,000)
2. 457 Lygon Street, Brunswick East VIC
a. Boutique development of only 40 apartments all with storage and at least one car parking space, Upper Lygon is just a stones throw from the famous Italian Quarter
b. Contemporary five story building, open plan living, stone bench tops, reverse cycle air-conditioning and stainless steel European appliances
c. Architect is D’Orio Architects
d. One bedroom apartments 49m2 internal to 63m2 internal ($390,000 to $480,000)
e. One bedroom + study apartments 53m2 internal to 65m2 internal ($425,000 to $560,000)
f. Two bedroom apartments 67m2 internal to 79m2 internal ($550,000 to $620,000)
3. 26-38 Merri Parade, Northcote VIC
a. Development consists of 79 apartments and 14 town houses. Majority of apartments come with one car parking space.
b. All forms of transportation are a stones throw away. Also, a very unique offering for Parade residents with a Go Get Share Car available with zero joining and monthly fees for the first twelve months.
c. One bedroom apartments 39m2 internal to 51m2 external ($350,000 to $430,000)
d. Two bedroom apartments 76m2 internal to 84m2 external ($570,000 to $650,000)
e. Townhouses 121m2 internal to 183m2 external ($850,000 to $950,000)
Townhouse come with minimum one car space, most have two.
If you may be interested in any of the above projects
please do not hesitate to contact us on 07 3848 1088 or email
We would be very pleased to assist.
Kind regards,
John McAuliffe
Each project offers its own unique appeal, below is a brief description of each;
1. 587-589 Elizabeth Street, Melbourne VIC
a. Boutique development of 55 apartments close to Queen Victoria Market, the University of Melbourne and the Royal Melbourne Hospital
b. Developed by Austgroup Holdings and designed by Architects Eat
c. Project due for commencement in December 2011 (so significant stamp-duty savings available now) and due for completion 18 months thereafter
d. One bedroom apartments 45m2 internal to 60m2 internal ($380,000 to $435,000)
e. Two bedroom apartments 53m2 internal to 68m2 internal ($390,000 to $560,000)
2. 457 Lygon Street, Brunswick East VIC
a. Boutique development of only 40 apartments all with storage and at least one car parking space, Upper Lygon is just a stones throw from the famous Italian Quarter
b. Contemporary five story building, open plan living, stone bench tops, reverse cycle air-conditioning and stainless steel European appliances
c. Architect is D’Orio Architects
d. One bedroom apartments 49m2 internal to 63m2 internal ($390,000 to $480,000)
e. One bedroom + study apartments 53m2 internal to 65m2 internal ($425,000 to $560,000)
f. Two bedroom apartments 67m2 internal to 79m2 internal ($550,000 to $620,000)
3. 26-38 Merri Parade, Northcote VIC
a. Development consists of 79 apartments and 14 town houses. Majority of apartments come with one car parking space.
b. All forms of transportation are a stones throw away. Also, a very unique offering for Parade residents with a Go Get Share Car available with zero joining and monthly fees for the first twelve months.
c. One bedroom apartments 39m2 internal to 51m2 external ($350,000 to $430,000)
d. Two bedroom apartments 76m2 internal to 84m2 external ($570,000 to $650,000)
e. Townhouses 121m2 internal to 183m2 external ($850,000 to $950,000)
Townhouse come with minimum one car space, most have two.
If you may be interested in any of the above projects
please do not hesitate to contact us on 07 3848 1088 or email
We would be very pleased to assist.
Kind regards,
John McAuliffe
Could this be you?
Could this be you?
Good afternoon John,
Well we have had our tax assessment come back from the accountant for the 2010 financials and we have an estimated bill of around $35k combined.
We aren't happy with the service we are getting from this accountant, and seemingly have to continue to pay ridiculous amounts of tax all the time. One needs to wonder why we are working so hard to continue to get slapped in the face by the tax man.
We have asked her on a number of occasions to give us guidance / advice on how to 'divert' our money from the ATO, but never get anything from her.
Before we sign off these assessments, we were hoping to have another accountant review our figures to see what they can come up with.
Do you know of any 'creative accountants' that could help us?
Thanks,
‘Ann’
Yes that to could be your challenge.
However accountants who are generally ‘compliant book keepers’ are very limited & are not creative in their advice. Buying cars or houses is frequently their safe option although they are now warming to super. Their suggestion of SMSF is frequently glib & you need a sizable amount to be considered.
However super has government risk & most people now want no advice with their super.
Very simply if you are earning a gross 100K then Taxx [‘Ann’ spells it differently] is 25,000.
Then if you have an average mortgage say 350,000K @ 7.2% interest only you pay another 25,000 without reducing your debt levels.
AND that leaves 50K to live on and you can’t.
No wonder house prices are falling& most know this by now. It is called a weak market by sellers & RE agents.
Of course as the workers are feeling the pinch then they are all going out to strike as they need more to live on.
It’s a vicious circle as we then have wages pushing up prices which suggests inflation later which means the gnomes in Martin place, the RBA, increases rates. Increasing rates pushes house prices down.
It also pushes share prices down which lowers the value of your retirement funds. Therefore you work longer and live on less.
Thanks heaps to the marginal voter & the ‘fence sitters’ in the House.
If you are a similar position as “Ann’ with 1 or more rental properties then are you any better off?
‘Ann’ earns say 150,000
Her negative cashflow from 3 ‘rental properties’ is say 30,000++
Hence taxable income is 120,000-
Her taxx = 32,351
Hence a net 87,649
Her mortgage is 460,000 & larger because her income is larger.
Hence interest only is 33,120 which feeds the bank but doesn’t reduce her home debt.
Which leaves 54,529 to live on which is 1049 per week.
We all need MORE that to live on as you know.
‘Ann’ can see that her lifestyle is no better off with 3 rental properties than a person on 100K with no rental properties.
However ‘Ann’ may not want to sell in this weak market & the 4% costs in doing so.
This shows that you need to be earning close to 150,000 if you have a rental property & to live.
If you are not earning this then what do you do.
Ann needs to let the taxx man subsidise her own home mortgage out west of here.
That reduces the total take that the taxx man & the bank take from her.
How do you qualify for such a solution?
If you have a LVR less than 70%, you can save $10 per day or 3k p.a. and don’t want to be subsidising the pension with your super and have a ‘positive’ risk profile.
then you are welcome to call 07 3848 1088 or email or visit our websites.
You might do so before June 30th although our options are limited by the time frame.
Give us time & we will [may] have a solution for you.
John McAuliffe
Good afternoon John,
Well we have had our tax assessment come back from the accountant for the 2010 financials and we have an estimated bill of around $35k combined.
We aren't happy with the service we are getting from this accountant, and seemingly have to continue to pay ridiculous amounts of tax all the time. One needs to wonder why we are working so hard to continue to get slapped in the face by the tax man.
We have asked her on a number of occasions to give us guidance / advice on how to 'divert' our money from the ATO, but never get anything from her.
Before we sign off these assessments, we were hoping to have another accountant review our figures to see what they can come up with.
Do you know of any 'creative accountants' that could help us?
Thanks,
‘Ann’
Yes that to could be your challenge.
However accountants who are generally ‘compliant book keepers’ are very limited & are not creative in their advice. Buying cars or houses is frequently their safe option although they are now warming to super. Their suggestion of SMSF is frequently glib & you need a sizable amount to be considered.
However super has government risk & most people now want no advice with their super.
Very simply if you are earning a gross 100K then Taxx [‘Ann’ spells it differently] is 25,000.
Then if you have an average mortgage say 350,000K @ 7.2% interest only you pay another 25,000 without reducing your debt levels.
AND that leaves 50K to live on and you can’t.
No wonder house prices are falling& most know this by now. It is called a weak market by sellers & RE agents.
Of course as the workers are feeling the pinch then they are all going out to strike as they need more to live on.
It’s a vicious circle as we then have wages pushing up prices which suggests inflation later which means the gnomes in Martin place, the RBA, increases rates. Increasing rates pushes house prices down.
It also pushes share prices down which lowers the value of your retirement funds. Therefore you work longer and live on less.
Thanks heaps to the marginal voter & the ‘fence sitters’ in the House.
If you are a similar position as “Ann’ with 1 or more rental properties then are you any better off?
‘Ann’ earns say 150,000
Her negative cashflow from 3 ‘rental properties’ is say 30,000++
Hence taxable income is 120,000-
Her taxx = 32,351
Hence a net 87,649
Her mortgage is 460,000 & larger because her income is larger.
Hence interest only is 33,120 which feeds the bank but doesn’t reduce her home debt.
Which leaves 54,529 to live on which is 1049 per week.
We all need MORE that to live on as you know.
‘Ann’ can see that her lifestyle is no better off with 3 rental properties than a person on 100K with no rental properties.
However ‘Ann’ may not want to sell in this weak market & the 4% costs in doing so.
This shows that you need to be earning close to 150,000 if you have a rental property & to live.
If you are not earning this then what do you do.
Ann needs to let the taxx man subsidise her own home mortgage out west of here.
That reduces the total take that the taxx man & the bank take from her.
How do you qualify for such a solution?
If you have a LVR less than 70%, you can save $10 per day or 3k p.a. and don’t want to be subsidising the pension with your super and have a ‘positive’ risk profile.
then you are welcome to call 07 3848 1088 or email or visit our websites.
You might do so before June 30th although our options are limited by the time frame.
Give us time & we will [may] have a solution for you.
John McAuliffe
Money Flow Workshop (Cashflow 101) (Sat 18/6/11)
Money Flow Workshop (Cashflow 101) (Sat 18/6/11)
Valued at $97, The famous Cashflow 101 board game by Robert Kiyosaki is used to create learning outcomes that make a difference to the financial mindset of participants.
Of course, there is the opportunity to network with like minded people!
Whether you are a novice or an experienced player or a successful business owner, there is someone for you to meet and a lesson to be learnt.
Meet business owners, entrepreneurs and investors.
TEENAGERS Welcome! Let's start them thinking right young.
Benefits of attending:
• Walk Away With Deep Distinctions on HOW Money Flows!
• Get the 4 Steps to Money Flow as a Framework to take Action
• Network with like minded people and form connections.
• Use Cashflow 101 interactively with people and have an amazing experience (as opposed to clicking a button)
o Cashflow 101 is an advanced board game better than Monopoly where you get to buy shares, property and businesses.
o You will learn the FLOW of MONEY because of it's interactive nature!
• Learn from each other's experiences and lock in your learning.
• WIN some great PRIZES.
• Light refreshments are provided.
• Networking Display Table
o Place your Business Cards/brochures to share your goods/services.• Please BRING: Pencil, Eraser & Calculator
testimonials can be found at:http://www.youtube.com/WealthCatalyst
e.g. http://www.youtube.com/watch?v=fTxD8t4gG84
Tickets are valued at $97 but only $30 when you register,
thanks to the sponsor John McAuliffe of WeCoachWealth
Sorry NO tickets at the door.
Group discounts are available and encouraged! Tell your friends, bring your team and invite newbies!
Start time: 1:30pm 100pm doors open Finish 4:30pm
There will be more instruction and familiarisation with the game and how to get out of the rat race.
We will go through the Opportunity Cards, the Worksheet, The bank account sheet and some basics of the game
Venue: Salisbury Bowles Club, 37 Ainsworth St, Salisbury
Cashflow 101 will be used to create learning outcomes that make a difference to the financial mindset of participants
More information or any Questions call John McAuliffe on 3848 1088
John McAuliffe of WeCoachWealth P / L
www.wecoachwealth.com.au http://wealthcoach.net.au
Valued at $97, The famous Cashflow 101 board game by Robert Kiyosaki is used to create learning outcomes that make a difference to the financial mindset of participants.
Of course, there is the opportunity to network with like minded people!
Whether you are a novice or an experienced player or a successful business owner, there is someone for you to meet and a lesson to be learnt.
Meet business owners, entrepreneurs and investors.
TEENAGERS Welcome! Let's start them thinking right young.
Benefits of attending:
• Walk Away With Deep Distinctions on HOW Money Flows!
• Get the 4 Steps to Money Flow as a Framework to take Action
• Network with like minded people and form connections.
• Use Cashflow 101 interactively with people and have an amazing experience (as opposed to clicking a button)
o Cashflow 101 is an advanced board game better than Monopoly where you get to buy shares, property and businesses.
o You will learn the FLOW of MONEY because of it's interactive nature!
• Learn from each other's experiences and lock in your learning.
• WIN some great PRIZES.
• Light refreshments are provided.
• Networking Display Table
o Place your Business Cards/brochures to share your goods/services.• Please BRING: Pencil, Eraser & Calculator
testimonials can be found at:http://www.youtube.com/WealthCatalyst
e.g. http://www.youtube.com/watch?v=fTxD8t4gG84
Tickets are valued at $97 but only $30 when you register,
thanks to the sponsor John McAuliffe of WeCoachWealth
Sorry NO tickets at the door.
Group discounts are available and encouraged! Tell your friends, bring your team and invite newbies!
Start time: 1:30pm 100pm doors open Finish 4:30pm
There will be more instruction and familiarisation with the game and how to get out of the rat race.
We will go through the Opportunity Cards, the Worksheet, The bank account sheet and some basics of the game
Venue: Salisbury Bowles Club, 37 Ainsworth St, Salisbury
Cashflow 101 will be used to create learning outcomes that make a difference to the financial mindset of participants
More information or any Questions call John McAuliffe on 3848 1088
John McAuliffe of WeCoachWealth P / L
www.wecoachwealth.com.au http://wealthcoach.net.au
Are you coming to learn the Cashflow 101 game
As ‘there is nothing as practical as a good theory’ then now maybe the time for you or the kids to learn this game.
It was created by ‘Rich Dad Poor Dad’ Robert Kiyosaki who wrote several books & all sold in the millions. There may be one in your family bookshelf.
This game is suitable for those who wish to ‘escape the rat race’ and in particular
• Those with mortgages or
• Those who are starting out in their financial journey or
• Those who are struggling financially or
• Those who are concerned about their next financial step or
• Those who want to address their finances before June 30 or
• Those who want to understand cashflow or
‘six billion stories & counting’
Your opportunity to learn this game is on
Saturday June 11th @ 1.30pm to 4.15pm
@ Salisbury Bowls Club 37 Ainsworth St, Salisbury
Prizes will be awarded to the first 3 who ‘escape the rat race’
Your investment [$30]* & no tickets will be sold at the door
Contact John McAuliffe today on 3848 1088
Or email info@wealthcoach.net.au
*discounts for couples or pairs.
As ‘there is nothing as practical as a good theory’ then now maybe the time for you or the kids to learn this game.
It was created by ‘Rich Dad Poor Dad’ Robert Kiyosaki who wrote several books & all sold in the millions. There may be one in your family bookshelf.
This game is suitable for those who wish to ‘escape the rat race’ and in particular
• Those with mortgages or
• Those who are starting out in their financial journey or
• Those who are struggling financially or
• Those who are concerned about their next financial step or
• Those who want to address their finances before June 30 or
• Those who want to understand cashflow or
‘six billion stories & counting’
Your opportunity to learn this game is on
Saturday June 11th @ 1.30pm to 4.15pm
@ Salisbury Bowls Club 37 Ainsworth St, Salisbury
Prizes will be awarded to the first 3 who ‘escape the rat race’
Your investment [$30]* & no tickets will be sold at the door
Contact John McAuliffe today on 3848 1088
Or email info@wealthcoach.net.au
*discounts for couples or pairs.
Does your money bat for the other side?
Does your money bat for the other side?Yes you have 5 weeks to act & do something with your hard earned cash.
I.e. what are you doing before the end of the financial year to not pay out any more than you need to Black Duck & the ATO.
Yes it was suggested that maybe go out & get a new Ute & maybe collect a 5K rebate from the ATO.
It is often suggested to go out & prepay all your future deductible expenses or increase your vehicle costs & increase your novated lease.
You might want to prepay your ‘negative cashflow rental property’ loan but that can lock you in for another year.
We only heard on Wednesday from a fund manager who manages 3.5 Billion that they have a careful watch on such properties.
We heard this month from Jon who has been in Real Estate for 30 years that properties in his area are down 10-15%. Maybe you might want to sell now.
We have previously suggested that the baby boomers are retiring & find the 10K negative cashflow rental property’ a big negative on their relationship with the spouse.
But will these increase your capital for retirement?
Let’s face it the government is now suggesting that 500,000 is an objective for retirement capital which does suggest that you can survive on 25k or 500per week. Yes you might but it is survival only & you Have worked harder to deserve more than that.
True to form the government has yet to define when this 500,000 is to be benchmarked.
However the trade minister confirmed the view in Canberra that superannuation represented the budget's biggest single tax deduction.
It’s fairly simple why this is so. I.e. if you earn over 37,000 then paying 15% taxx on your super beats paying your marginal rate of 30% or more.
Of course if your spouse earns less than that then it makes no sense to pay into her super. However you could claim a spouse rebate which means no upfront 15% taxx or if you can split your supers.
It all depends where you are financially. If your debt is paid off then congratulations but now you have the challenge to fund the 1,000,00 that you need.
Will pouring 25,000 over the balance of your working live into your super achieve your retirement need. It will help & if you are over 50 then you have a year to salary sacrifice to 50,000.
The other side are all about that theirs is lower than yours. I.e. they are talking costs on their super funds. As a contemporary asked us last Wednesday
‘Where do they get the 18m to advertise?’ such lines.
It’s not often we say that lowest costs are best. Just check out your house or car or the diamond ring or the school your family goes to.?
Lets recall that you get what you pay for. When we talked to Adam on Thursday he believed his super was doing a good job.
He hadn’t looked at the website with its funds returns. We would suggest that there are many fund lemons out there not achieving what you hoped for.
It may be time to review your super & we are non-aligned as work for you. Have you looked at your bank fund returns closely?
Of course you could still have the average debt which frequently means you will have a debt on retirement. Then if you can access your super you use that to pay down your debt which means for you that you live on maybe a lot less.
This is certainly one risk i.e. government legislation which can easily change the rules.
We do have 13 different super strategies alone & you are welcome to contact us for the PDF file.
There is another way & it is our PCMS personal cashflow management strategy. This is particularly tailored for those with a high debt level & earning over 100K.
You are welcome here for an introduction to this strategy. May listened when we described the strategy ‘as the taxx man subsidising the debt’ & even more so when we added ‘ it was cashflow neutral’.
It’s action time & there are alternative strategies depending where you are financially.
We offer more than most & why not a free meal here to take the 1st step.
We promise not to waste your time as we hate waste as you have worked too hard for your money.
John McAuliffe
I.e. what are you doing before the end of the financial year to not pay out any more than you need to Black Duck & the ATO.
Yes it was suggested that maybe go out & get a new Ute & maybe collect a 5K rebate from the ATO.
It is often suggested to go out & prepay all your future deductible expenses or increase your vehicle costs & increase your novated lease.
You might want to prepay your ‘negative cashflow rental property’ loan but that can lock you in for another year.
We only heard on Wednesday from a fund manager who manages 3.5 Billion that they have a careful watch on such properties.
We heard this month from Jon who has been in Real Estate for 30 years that properties in his area are down 10-15%. Maybe you might want to sell now.
We have previously suggested that the baby boomers are retiring & find the 10K negative cashflow rental property’ a big negative on their relationship with the spouse.
But will these increase your capital for retirement?
Let’s face it the government is now suggesting that 500,000 is an objective for retirement capital which does suggest that you can survive on 25k or 500per week. Yes you might but it is survival only & you Have worked harder to deserve more than that.
True to form the government has yet to define when this 500,000 is to be benchmarked.
However the trade minister confirmed the view in Canberra that superannuation represented the budget's biggest single tax deduction.
It’s fairly simple why this is so. I.e. if you earn over 37,000 then paying 15% taxx on your super beats paying your marginal rate of 30% or more.
Of course if your spouse earns less than that then it makes no sense to pay into her super. However you could claim a spouse rebate which means no upfront 15% taxx or if you can split your supers.
It all depends where you are financially. If your debt is paid off then congratulations but now you have the challenge to fund the 1,000,00 that you need.
Will pouring 25,000 over the balance of your working live into your super achieve your retirement need. It will help & if you are over 50 then you have a year to salary sacrifice to 50,000.
The other side are all about that theirs is lower than yours. I.e. they are talking costs on their super funds. As a contemporary asked us last Wednesday
‘Where do they get the 18m to advertise?’ such lines.
It’s not often we say that lowest costs are best. Just check out your house or car or the diamond ring or the school your family goes to.?
Lets recall that you get what you pay for. When we talked to Adam on Thursday he believed his super was doing a good job.
He hadn’t looked at the website with its funds returns. We would suggest that there are many fund lemons out there not achieving what you hoped for.
It may be time to review your super & we are non-aligned as work for you. Have you looked at your bank fund returns closely?
Of course you could still have the average debt which frequently means you will have a debt on retirement. Then if you can access your super you use that to pay down your debt which means for you that you live on maybe a lot less.
This is certainly one risk i.e. government legislation which can easily change the rules.
We do have 13 different super strategies alone & you are welcome to contact us for the PDF file.
There is another way & it is our PCMS personal cashflow management strategy. This is particularly tailored for those with a high debt level & earning over 100K.
You are welcome here for an introduction to this strategy. May listened when we described the strategy ‘as the taxx man subsidising the debt’ & even more so when we added ‘ it was cashflow neutral’.
It’s action time & there are alternative strategies depending where you are financially.
We offer more than most & why not a free meal here to take the 1st step.
We promise not to waste your time as we hate waste as you have worked too hard for your money.
John McAuliffe
do you have an extended or blended family?
Do you have a Extended or Blended family?
Let’s face it nearly half of all families are blended as close to half of all marriages & partnerships split up.
Let’s take up one scenario which we know of and it is a simple & common scenario.
It was now way back in 1986 when markets were positive & there was no such thing as compulsory superannuation or SGC. ‘Colin’ who was earning enough to have to pay taxx & wanted retirement benefits for the future took out a superannuation plan. This was deductible & it had life cover on it to cover his mortgage & to provide something for his family. He nominated his wife as beneficiary on 2 policies.
All good so far.
However as it happened & we all can get too hard to live with there was a split 10 years later & a subsequent divorce.
As ‘Colin’ needed a kindred spirit he found another partner. Is that uncommon? As his three children were still at school or needed financial assistance then he contributed to his ex spouse over another 10 years.
But just this year ‘Colin’ took his last puff. He still had his original will made out to his ex & family. He hadn’t changed his beneficiaries to his new partner or changed it in anyway.
Thus his executors who aren’t professional & don’t do this more than once have to decide all this. If it was too hard for ‘Colin’ then what chances are that they get it right.
If you are the executor of a will have you researched into what your responsibilities are.
If the funds do go to his adult children then they will be taxed at 15% or 30% on the lump sum as now non dependant. At least there is adequate money to distribute which may not be the case in your union fund. ‘Colin’ elected not to opt in for advice & hence the family suffers the consequences.
This is a simple & common scenario but there are many more.
What if as happens ‘Colin’ has a child to the new lady. How common is that? What does the executor or the trustee of a super fund do then?
We had ‘Norman’ here recently. He has, as does a neighbour, children younger than his grandchildren. How extended is that? He has assets & a business with debt on it. Yes he does have life cover but the above questions still apply.
Then there is ‘Anthony’ who is one of many on his 3rd marriage. Who does he leave his legacy to? Is it his spouse or his grandchildren or a charity. It’s his choice but if he hasn’t actioned an estate plan then who knows & at what cost to solve the challenge.
An estate plan can be a simple or as technically difficult as the law can be. Hence a simple step is a meeting to look at the simple basics & the next steps to take such as
‘Dying without a will is courting chaos: claims against your estate’
Wills ensure you have the last word: properly drafted wills
Prevention is always easier today than after the event. We aren’t members of the 1st profession but financial planners who first consider the holistic picture. We can direct you to our estate partners.
Then there is this ‘death or serious illness can create huge problems for self-managed funds’
‘ a common characteristic of high-net-worth individuals seems to be that they're more than happy to seek, and pay for, good quality advice’
We welcome your call on 07 3848 1088 or email or our websites
John McAuliffe
Let’s face it nearly half of all families are blended as close to half of all marriages & partnerships split up.
Let’s take up one scenario which we know of and it is a simple & common scenario.
It was now way back in 1986 when markets were positive & there was no such thing as compulsory superannuation or SGC. ‘Colin’ who was earning enough to have to pay taxx & wanted retirement benefits for the future took out a superannuation plan. This was deductible & it had life cover on it to cover his mortgage & to provide something for his family. He nominated his wife as beneficiary on 2 policies.
All good so far.
However as it happened & we all can get too hard to live with there was a split 10 years later & a subsequent divorce.
As ‘Colin’ needed a kindred spirit he found another partner. Is that uncommon? As his three children were still at school or needed financial assistance then he contributed to his ex spouse over another 10 years.
But just this year ‘Colin’ took his last puff. He still had his original will made out to his ex & family. He hadn’t changed his beneficiaries to his new partner or changed it in anyway.
Thus his executors who aren’t professional & don’t do this more than once have to decide all this. If it was too hard for ‘Colin’ then what chances are that they get it right.
If you are the executor of a will have you researched into what your responsibilities are.
If the funds do go to his adult children then they will be taxed at 15% or 30% on the lump sum as now non dependant. At least there is adequate money to distribute which may not be the case in your union fund. ‘Colin’ elected not to opt in for advice & hence the family suffers the consequences.
This is a simple & common scenario but there are many more.
What if as happens ‘Colin’ has a child to the new lady. How common is that? What does the executor or the trustee of a super fund do then?
We had ‘Norman’ here recently. He has, as does a neighbour, children younger than his grandchildren. How extended is that? He has assets & a business with debt on it. Yes he does have life cover but the above questions still apply.
Then there is ‘Anthony’ who is one of many on his 3rd marriage. Who does he leave his legacy to? Is it his spouse or his grandchildren or a charity. It’s his choice but if he hasn’t actioned an estate plan then who knows & at what cost to solve the challenge.
An estate plan can be a simple or as technically difficult as the law can be. Hence a simple step is a meeting to look at the simple basics & the next steps to take such as
‘Dying without a will is courting chaos: claims against your estate’
Wills ensure you have the last word: properly drafted wills
Prevention is always easier today than after the event. We aren’t members of the 1st profession but financial planners who first consider the holistic picture. We can direct you to our estate partners.
Then there is this ‘death or serious illness can create huge problems for self-managed funds’
‘ a common characteristic of high-net-worth individuals seems to be that they're more than happy to seek, and pay for, good quality advice’
We welcome your call on 07 3848 1088 or email or our websites
John McAuliffe
Traits that make you filthy rich.
Traits that make you filthy rich.
So what are the traits that make you filthy rich?
A question that David asked us last week. Let’s go back to basics at the moment & drop the filthy as all goals need to be achievable. However the multiple billionaires both here & elsewhere would state that the status of a billionaire is easily attainable.
All observations & there have been many say in the classic Napoleon Hill ‘Think & Grow Rich’ that all have a passion for their idea & which they have grown into a business.
Hence we only need to look closely to the Murdock’s & the Packers & maybe the Hancock’s to trace back to a simple idea. They & the families in these cases have grown the seed of an idea into a business. They have taken generations but at each step from inception to maturity there has to be the passion to progress & break through.
Of course this passion can be achieved by you or your neighbour. Another classic ‘The Millionaire Next Door’ demonstrated that certainly rich, say a millionaire, could be in your suburb. The challenge for your neighbour who is in his own business is to maintain that passion & hence the need as explained in ‘The E-myth revisited’ is to build a business which functions without the original entrepreneur.
We are working closely with Owen at the moment who has an idea that could leap him into the rich & maybe the very rich. He has striven for six years to break through. He has the passion to make it happen sometime. Has Steve Jobs passion for Apple?
A second tip would be that all have listened to others. This again is discussed in ‘Think & Grow Rich’. All have had mentors or coaches or teachers be it their father say Tiger or Gina or surrounding themselves with the best & the brightest.
Those Formula 1 drivers might have the passion or ‘madness’ to drive their cars but they don’t look under the bonnet or change the tyres. Any sustainable business which is built on an idea needs the very best to build & expand that idea. A jack of all trades won’t do.
The entrepreneur is the general of the business but he needs his commanders & his troops.
Our visitor today is the CEO of 3 companies employing 120+ staff & owned by one man. This entrepreneur has built a business from [yes CHC].
These mentors to the entrepreneur may change over time.
However the entrepreneur always listens.
Another tip is [We suspect] that most have some challenges early in life. As Archie would say ‘a splinter in the banister of life.’ When there is no turning back then the way must be to go forward.
We only need to go back within our own families who immigrated here. After months at sea then if you survived it then you were unlikely to make the return trip. It would be a good study to see how the current boat asylum seekers make out over the next few years. We would observe those previous groups say after the various wars who made Australia home.
You would have to say that many are rich & no doubt some are filthy rich. Many of course never discuss these issues with anyone else.
Owen who we mentioned above certainly has had more than his share of splinters. However with another common trait of persistence then we expect him to make the rich ranks.
Yes that is another trait persistence to crystallise the idea through. It was yesterday that we meet Louie who we have know since 1994 who has on his desk the classic picture with the frog being swallowed by the heron but resisting by strangling the throat. i.e. never, never ever give up.
Again Napoleon Hill & you would have plenty of examples.
Of course you need a little luck to go your way & you need to recognise the opportunity when it arises. However it is the persistence that will separate the winners from the also rans.
One other tip is that it is all meaningless, we would argue, unless you share it with someone. Hence a final clue would be remain married. This is certainly easier said than done & the statistics arguably 40+% state that.
We know how difficult we are ourselves to live with.
However the general observations are that most are scarred financially and emotionally & it takes time for these scars to heal.
Hence one goes backwards when divorce occurs. It could also be a business divorce.
Rupert, amongst others, would show that it doesn’t mean a permanent distraction but in general some prevention & life balance would be wise.
One final tip is that you [probably] don’t want to share it with the Red Queen or provide other social justice donations.
Hence minimising taxx within the ever changing rules makes sense. All need capital to grow a business & losing your hard earned to government waste is a waste.
We return to tip two & before June 30 is the time to minimise your taxx. As everyone is different then we can only generalise that most can be financially tuned up.
One final observation. All the rich & the filthy rich build & invest in businesses. I.e. the house or investing in a house is not on their business plan. Just ask Warren Buffett.
Here are five+ tips & we trust in the above there are some tips to help achieve ‘filthiness’ for you.
Welcome to call us on 07 3848 1088 or email us @ info@wealthcoach.net.au
Are you listening?
John McAuliffe
So what are the traits that make you filthy rich?
A question that David asked us last week. Let’s go back to basics at the moment & drop the filthy as all goals need to be achievable. However the multiple billionaires both here & elsewhere would state that the status of a billionaire is easily attainable.
All observations & there have been many say in the classic Napoleon Hill ‘Think & Grow Rich’ that all have a passion for their idea & which they have grown into a business.
Hence we only need to look closely to the Murdock’s & the Packers & maybe the Hancock’s to trace back to a simple idea. They & the families in these cases have grown the seed of an idea into a business. They have taken generations but at each step from inception to maturity there has to be the passion to progress & break through.
Of course this passion can be achieved by you or your neighbour. Another classic ‘The Millionaire Next Door’ demonstrated that certainly rich, say a millionaire, could be in your suburb. The challenge for your neighbour who is in his own business is to maintain that passion & hence the need as explained in ‘The E-myth revisited’ is to build a business which functions without the original entrepreneur.
We are working closely with Owen at the moment who has an idea that could leap him into the rich & maybe the very rich. He has striven for six years to break through. He has the passion to make it happen sometime. Has Steve Jobs passion for Apple?
A second tip would be that all have listened to others. This again is discussed in ‘Think & Grow Rich’. All have had mentors or coaches or teachers be it their father say Tiger or Gina or surrounding themselves with the best & the brightest.
Those Formula 1 drivers might have the passion or ‘madness’ to drive their cars but they don’t look under the bonnet or change the tyres. Any sustainable business which is built on an idea needs the very best to build & expand that idea. A jack of all trades won’t do.
The entrepreneur is the general of the business but he needs his commanders & his troops.
Our visitor today is the CEO of 3 companies employing 120+ staff & owned by one man. This entrepreneur has built a business from [yes CHC].
These mentors to the entrepreneur may change over time.
However the entrepreneur always listens.
Another tip is [We suspect] that most have some challenges early in life. As Archie would say ‘a splinter in the banister of life.’ When there is no turning back then the way must be to go forward.
We only need to go back within our own families who immigrated here. After months at sea then if you survived it then you were unlikely to make the return trip. It would be a good study to see how the current boat asylum seekers make out over the next few years. We would observe those previous groups say after the various wars who made Australia home.
You would have to say that many are rich & no doubt some are filthy rich. Many of course never discuss these issues with anyone else.
Owen who we mentioned above certainly has had more than his share of splinters. However with another common trait of persistence then we expect him to make the rich ranks.
Yes that is another trait persistence to crystallise the idea through. It was yesterday that we meet Louie who we have know since 1994 who has on his desk the classic picture with the frog being swallowed by the heron but resisting by strangling the throat. i.e. never, never ever give up.
Again Napoleon Hill & you would have plenty of examples.
Of course you need a little luck to go your way & you need to recognise the opportunity when it arises. However it is the persistence that will separate the winners from the also rans.
One other tip is that it is all meaningless, we would argue, unless you share it with someone. Hence a final clue would be remain married. This is certainly easier said than done & the statistics arguably 40+% state that.
We know how difficult we are ourselves to live with.
However the general observations are that most are scarred financially and emotionally & it takes time for these scars to heal.
Hence one goes backwards when divorce occurs. It could also be a business divorce.
Rupert, amongst others, would show that it doesn’t mean a permanent distraction but in general some prevention & life balance would be wise.
One final tip is that you [probably] don’t want to share it with the Red Queen or provide other social justice donations.
Hence minimising taxx within the ever changing rules makes sense. All need capital to grow a business & losing your hard earned to government waste is a waste.
We return to tip two & before June 30 is the time to minimise your taxx. As everyone is different then we can only generalise that most can be financially tuned up.
One final observation. All the rich & the filthy rich build & invest in businesses. I.e. the house or investing in a house is not on their business plan. Just ask Warren Buffett.
Here are five+ tips & we trust in the above there are some tips to help achieve ‘filthiness’ for you.
Welcome to call us on 07 3848 1088 or email us @ info@wealthcoach.net.au
Are you listening?
John McAuliffe
Could managing your cashflow change your life?
Could managing your cashflow change your life?
‘Cash is king’ and it is a key component of a successful investment strategy. When you get the basics right then you may achieve your financial goals quicker.
There are 4 components to cashflow
1. Income which means all income such as salaries, benefits, dividends, interest & rent.
2. Expenses which means all outgoings which includes mortgages, taxes & living costs.
3. Assets which are defined as cash creating such as deposits or shares or positive incomes.
4. Liabilities which are your loans, credit cards
The main reasons most save are
• The ‘rainy day’ & floods are only be one of them.
• Holidays & travel
• Paying down debts
• Retirement
How are you going so far?
However as only 36% are now debt free then the conventional way isn’t working.
Australians now have the highest level of debt along with their biggest houses.
There was a Westpac survey sometime ago which found that a comfortable lifestyle required an income of 53,000. Who has the necessary 1,000,000 in their retirement accounts?
So how do you get There?
Financial independence is all about positive cashflow.
This is when your additional income meets or exceeds your cost of living. The way to create positive cashflow is by investing in cash creating assets.
To help you with the mind set change that is required we have for you two excellent & free publications
1. ‘Cashflow Matters - How managing your cashflow could change your life’
2. ‘Your cashflow plan’ – a workbook to help you identify your position.
There needs to be a mindset change if you wish to improve your financial position.
If nothing changes then nothing changes
You are welcome to call on 07 3848 1088 or us for these two excellent & free publications.email
John McAuliffe
‘Cash is king’ and it is a key component of a successful investment strategy. When you get the basics right then you may achieve your financial goals quicker.
There are 4 components to cashflow
1. Income which means all income such as salaries, benefits, dividends, interest & rent.
2. Expenses which means all outgoings which includes mortgages, taxes & living costs.
3. Assets which are defined as cash creating such as deposits or shares or positive incomes.
4. Liabilities which are your loans, credit cards
The main reasons most save are
• The ‘rainy day’ & floods are only be one of them.
• Holidays & travel
• Paying down debts
• Retirement
How are you going so far?
However as only 36% are now debt free then the conventional way isn’t working.
Australians now have the highest level of debt along with their biggest houses.
There was a Westpac survey sometime ago which found that a comfortable lifestyle required an income of 53,000. Who has the necessary 1,000,000 in their retirement accounts?
So how do you get There?
Financial independence is all about positive cashflow.
This is when your additional income meets or exceeds your cost of living. The way to create positive cashflow is by investing in cash creating assets.
To help you with the mind set change that is required we have for you two excellent & free publications
1. ‘Cashflow Matters - How managing your cashflow could change your life’
2. ‘Your cashflow plan’ – a workbook to help you identify your position.
There needs to be a mindset change if you wish to improve your financial position.
If nothing changes then nothing changes
You are welcome to call on 07 3848 1088 or us for these two excellent & free publications.email
John McAuliffe