How you could save $135,772 in Capital &

How you could save $135,772 in Capital.

Probably the most important table you need to consider .

	Modest lifestyle single p.w.	Modest lifestyle couple p.w.	Comfortable lifestyle – single p.w.	Comfortable lifestyle  couple p.w.
Housing – ongoing only	$60.65	$58.22	$70.30	$81.49
Energy	$40.48	$53.77	$41.08	$55.72
Food	$74.90	$155.15	$107.00	$192.60
Clothing	$18.05	$29.30	$39.06	$58.60
Household goods and services	$26.44	$35.85	$74.38	$87.14
Health	$37.28	$71.95	$73.97	$130.55
Transport	$93.36	$96.01	$139.13	$141.77
Leisure	$71.76	$106.91	$217.46	$298.00
Communications	$9.33	$16.33	$25.64	$32.64
Total per week	$432.26	$623.49	$788.02	$1,078.50
Total per year	$22,539	$32,511	$41,090	$56,236

 

The ASFA Retirement Standard benchmarks the annual budget needed by Australians to fund either a comfortable or modest standard of living in the post-work years. It is updated quarterly to reflect inflation, and provides detailed budgets of what singles and couples would need to spend to support their chosen lifestyle.

According to the latest data for September 2012, in general, a couple looking to achieve a comfortable retirement needs to spend $56,236 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $32,511 a year.

The full article on this we have but unfortunately not the link from the Courier Mail 2/5/13

& hence you are welcome to email us for it.

So we have some choices i.e. do we want to be comfortable or better on retirement & when do we want to retire.

The Capital required depends on the interest rate available & how long do we live & do we draw down the principle.

Simply if you want to be comfortable & rates are 5% [which is not today] then the capital you require is 1,124,720+. If you draw down on principal then the article suggests  a capital sum  of 900,000 at age 60 or 780,000  at age 65.

In every case the capital required to retire on is MUCH More  that the house that we live in.

However what does Mum suggest we do. ‘Settle down & buy a house’.

We would agree with that if you follow the basic guidelines which are

·         Is it cheaper to buy than rent?

·         Will this be your last house?

·         Where are you sending the kids to school?

·         Do you have a 30% deposit?

·         Are you ‘handy’?

Surely the larger capital sum needs more time as more important. Hence we suggest that a house might be deferred although we certainly agree that a family needs a home.

We are all sucked in by the big boys who lie & we need to re-examine our concepts & priorities.

Let’s look at the table & examine where you could make a serious saving.

The article says The seniors’ healthcare card ensures that the cost of the drugs she uses don’t eat up her remaining savings. (Our refrigerator does look like a pharmacy.)

i.e. your future health bill could be on average 130.55p.w. or 6,789p.a. which suggests $135,772 in capital is required to fund your health needs.

We need convincing that the health system will actually look after you in your later years. We believe that it looks after itself, is avaricious & simply doesn’t solve your future medical condition.

George wants to know today that there may be a better solution than morphine for his back pain. There are too many vested big boys & we aren’t dopes.

What has worked for us for 15 years & our family & 600 top athletes & the WTA girls has been on the prevention side. Our top clients agree with us. Nobody even wants the flu  especially an employer or the self employed & we know that no one gives you your due respect when you are either poor or unhealthy.

 Nobody wants to use their insurance which is a lot dearer than our  alternative suggestion. It won’t get cheaper & the 30% rebate is reducing by stealth.

As ‘Gerald’ a radiologist client said years ago ‘if everyone was on these he would be out of a job’.

Ok we are not qualified in the medical business but  we probably can race you up our drive.

Our proposition for you is

·         If we were in your position what would we do?

·         Is there a more efficient way for you?

If you want to maximise your dollar then health is certainly one way for you to do so.

Why not request our comparative guide to indicate one company that maybe able to help you.

Maybe you could use a personalised health assessment available on its site normally valued @$55.

It only takes 15 minutes to complete.

You will receive details of your top health risks, a customised health and lifestyle plan  and a nutrition recommendation for you. Most people find these reports invaluable.  
 

If you would like to spend more on travel & less on health either today or later then we can introduce you so that you are healthier. Hence fewer money worries. It is as Myrna wrote on ‘peeling the onion’ today ‘a core belief’ of hers & ours.

You might need more capital as you might live longer. Yes they do cost you 10+p.w. each.
Wwe haven’t factored in that capital cost.

Of course as it is  nearly June 30 you might want a financial efficiency examination.
You are welcome to call on 07 3848 1088 or email or visit our websites.

We have various EOFY strategies for you. We may have a better way to maximise your dollar.

 

John McAuliffe

 

 

It is 2 Trillion, Penny

If we recall from our school days there were 12 pennies to a shilling & 20 shillings to a pound & a pound converted to 2 dollars.

Hence it appears that the $17 billion shortly as we heard Penny on Sky Business this morning state is a lot more than 17 billion pennies.  It is 17 x 10⁹ X 12 x 20 ÷ 2 =  2.04 Trillion Pennies.

‘Opposition treasury spokesman Joe Hockey tweeted 7/5/13

 “Wong says revenue write-down’s now $17bn. Last week Gillard said $12bn. Week before Swan said $7bn. Budget in complete chaos !!”

As we wrote exactly 3 years ago this week on our 60^th birthday ‘girls fib’.

The difficulty is keeping track of all the fibs so  a girl doesn’t become entangled & confused.

We also read today Government paid $2bn by telcos for wireless spectrum, $1bn less than hoped

So your taxx is going to go up that is a fact & that is not a fib.

We have a list of taxes that government could do to bring this 2 trillion deficit back to some sort of control.

What are you going to do about it.?

We read ‘Rich get richer, poor pay their taxes’ & it is simply a matter of you asking for advice.

It is simply a matter of sitting around the table & maximising what you can do before June 30 which is only weeks away.

We have a list of 12 strategies that we could do for you. We could add to that list.

 It appears that life is going to be tougher i.e. increased taxx & less government welfare.

 Today

Government scraps plans to increase Family Tax Benefit A in Federal Budget

Now Joe today says he will wind ‘back universal access to payments’" .

Advice is smart & it is not sales.

We had an enquiry from Howard this week who had been advised to take some income protection.

However he had been sold a ‘rental property’ that is cashflow negative by the average 10K p.a.

When he only makes 65K as a council employee & now has total debts of 650k then we don’t know how he will live.

i.e. Howard Earns 65K, Taxx =12.6,Net income 52.4K

Cashflow= -10k

Lives on 42.4K = 815p.w. from which he has to pay his own mortgage with no room for error say disability longer than sick leave.

Of course he hadn’t seen the property which is in another state.

Sold & not advised.

Howard has bought a rental property because of rightly perceived government risk. He has wanted to reduce his taxx but the Swan bluster & talk of taxes on super has concerned him.

However he has taken a big risk with big borrowings & we recall from Debbie that her biggest regret was buying her rental property.

We suggest that it is now time to overcome your inertia & at least meet us before end of June.

Let’s not forget why we invest or save.

According to the latest data for September 2012, in general, a couple looking to achieve a comfortable retirement needs to spend $56,236 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $32,511 a year.

How much capital do your require is the challenge?

A common rule of thumb is that if you want to retire at 60, you will need about 15 times the amount you have calculated for your annual after-tax retirement expenses. So if you estimate $60,000 per year then you will need $900,000.

If you can wait until 65, you may only need 13 times expenses, which will be $780,000.

How are you going to achieve this?

We advise & not sell & our parameters are

·         Is this what we would do ourselves?

·         & what is a [taxx] efficient solution to your problem?

You are welcome to call us on 07 3848 1088 or email us or visit our websites

You might ask us why we spell Taxx as taxx. It might also save you a pretty penny.

 

John McAuliffe