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