Why not Zero taxx on your Super?
Taxx is your biggest fee on your super.
Why not a zero contribution taxx on your super? This is a question that you should ask all politicians who are so good at doling out your money.
We have also asked this other question before of Beasley 11 years before he had to be wheeled to the White House. Why not remove the 15% taxx on the earnings of a super fund. Yes we didn’t get an answer then but we live in hope. Why should we propose again this simple & elegant solution?
Simply as last week end the Australian headlined “the Great super delusion”. Telling us what we all know that we will have an insufficient amount in capital to retire on & hence baked beans & bourbon for our last chapters.
W/E Australian.13-14/03/2010,
“Despite compulsory superannuation, most Australians don’t have anywhere enough cover & the government so far lacks an answer.”
Or again
“The vast majority of Australians are going to retire on less money than they can live on”
There are 3, yes only 3 reports into superannuation & we hold our breath.
“Superannuation minister Chris Bowen says the governments response will be guided by 4 principles i.e. simplicity, efficiency, equity & adequacy.”
We suggest that removing the 15% contribution taxx & the 15% taxx on the earnings on your super satisfies these 4 principals easily & doesn’t need another committee to report on the report
It is certainly simple
It is efficient
It is your money
& it maybe be adequate if given time to compound
Of course the government throws all sorts of political & red herrings which require other articles to answer. To do so would distract from the solution to your superannuation shortfall.
Why do most not contribute to the maximum allowed under the current i.e. today’s caps.
Simply they don’t have any spare funds if they earn less than 90k+ per family. The average family is struggling under debt which sucks 25% of their income. The government sucks a similar amount. Then there are the indirect taxes such as rates, Medicare levy, medical insurance premiums, utilities costs, fines and others. Not much left. They also don’t trust any government who can manipulate super. What is your TFN for?
If the government didn’t taxx your super for someone’s pension or health or schooling then you could look after yourself. Isn’t that simple? After all if you can’t invest or spend your super then it is another taxx.
The unions’ suggestion for a 15% SGC or the super funds associations call for 12% is nonsense[ambient claim] & just a blatant grab for control of your money. Don’t tell me the unions & industry funds do it for nothing.
Thus to achieve the goal of a million in capital to look after your own responsibilities & to pay down that mortgage faster requires a simple & elegant solution i.e. our active wealth strategy. This address’s your taxx & mortgage challenge simultaneously. We have an answer to the government & another answer to your problem.
This is unless any government reduces the taxx on your super. After all this is your biggest fee on your super.
What has Henry said to Kevin?
Welcome to call or email or visit our websites.
John McAuliffe
Follow the money - its new for us
Follow the money
We had a ‘Eureka moment’ last week attending another professional development course. ‘Eureka’ does it matter how we make money for clients as long as it is legal. Note vices have not had good returns as we smoke less & Fosters share price has been very poor. After 26 years in this financial services industry we are very cynical as we have heard plenty. But this was definitely what clients are looking for.
Yes, it is a magic pudding or more accurately a ‘black box’. We have heard over time that again Goldman Sachs [masters of the universe or other names] made huge profits from their momentum trading. This is not them but it is momentum trading & the track record is impressive.
What do they do? They follow the money trend.
Hence from their adviser only summary sheet we note
• An alternative investment strategy with low correlation to other asset classes over the longer term.
• The fund has a long track record of strong performance through bull & bear markets.
• The fund applies a systematic approach to capture price trends in both rising & falling markets across more than 100 global markets including equities, interest rates currencies, energy, agricultural commodities & metals.
• The fund is designed to increase risk adjusted returns of portfolios by providing returns with low correlation to other asset classes over the long term.
• The founders were early pioneer of the scientific application of systematic techniques to investment management.
• The fund invests heavily in the research driven evolution of its trading systems designed to maximise future returns.
• This fund is rated ‘highly recommended by Lonsec which is as high as it gets.
• From their graph, http://www.managedfutures.com/managed_futures_index.aspx the relevant index of managed futures with 10k invested in Dec 89 would be 100k in Dec.09. So 100k invested would be 1m.
Clients have been entrusting us with their funds since 1984. As a contemporary lady financial adviser said to us recently ‘we can look them in the eye & know we have given them the correct advice’.
Let’s recall that not too long ago we were in the midst of a 10 year drought. Now that is very hard to believe today when we have inland seas in South Queensland.
We also compare markets with personal relationships i.e. ‘they go up & down & we have to live with them’.
However that is very hard to reconcile with when we are talking about money. Hence because of the CFG & the volatility others are looking at other investments. They look at rental property as it is spruiked that property ‘doubles every 10 years. I.e. a compound rate p.a. of 7.2%. Well sorry but that is very disappointing & can be bettered. We could also refer you to a recent article that states that 25% of buyers of houses in Sydney have lost money if they bought & sold in the last 5 Years. In Brisbane it is suggested 15%.
We suggest that that this % is bigger because no data ever takes into account the costs of property. There are costs to property at the beginning & hence you have paid more for your property. Similarly you have paid costs on the selling such as stamp duty, conveyancy fees, real estate agents 2-3% commission and costs of moving & the new QLD land taxx. These reduce your profits we would argue by 5 %. You then generally trade up or on the same market. You also do some ‘renovating’ as you want to improve & profit but this cost is also not taken into account.
As examples we have been offered by property marketing agents a share of 25K for selling a new unit or house. Client of ours recently commented how aggravated he was with the real estate agent who made 25k & ‘didn’t want to know him after the house went unconditional’.
Hence we suggest you need to make 50K + before you sell to break even. We also suggest that ‘a house is like a spouse it requires money & maintainence’. It does mean on average you spend 1% to 2 % simply on maintaining the house. You don’t take into account your unpaid labour time on the guttering or the tree lopping or the bathroom painting.
Of course if you are negative gearing & a recent request for help was 9Kp.a cashflow negative. Where does that necessary 9K come from? Does your lifestyle suffer? Let me think about it.
We suggest you need 100k profits before you sell? Then & we almost forgot the ATO will want 50% X MTR of the real gains. Let me think about it!
If you wish to follow the money & your own house is enough property & you are aware that you need 1M in capital to retire on then you are welcome to call on 07 3848 1088, email us on info@wecoachwealth.com.au or visit our website www.wecoachwealth.com.au
We only yesterday attended another manager with 15% p.a. returns over 15 years. That is TWICE as good p.a. as the average property & means maybe EIGHT times more in 15 years with less cost.
John McAuliffe
We had a ‘Eureka moment’ last week attending another professional development course. ‘Eureka’ does it matter how we make money for clients as long as it is legal. Note vices have not had good returns as we smoke less & Fosters share price has been very poor. After 26 years in this financial services industry we are very cynical as we have heard plenty. But this was definitely what clients are looking for.
Yes, it is a magic pudding or more accurately a ‘black box’. We have heard over time that again Goldman Sachs [masters of the universe or other names] made huge profits from their momentum trading. This is not them but it is momentum trading & the track record is impressive.
What do they do? They follow the money trend.
Hence from their adviser only summary sheet we note
• An alternative investment strategy with low correlation to other asset classes over the longer term.
• The fund has a long track record of strong performance through bull & bear markets.
• The fund applies a systematic approach to capture price trends in both rising & falling markets across more than 100 global markets including equities, interest rates currencies, energy, agricultural commodities & metals.
• The fund is designed to increase risk adjusted returns of portfolios by providing returns with low correlation to other asset classes over the long term.
• The founders were early pioneer of the scientific application of systematic techniques to investment management.
• The fund invests heavily in the research driven evolution of its trading systems designed to maximise future returns.
• This fund is rated ‘highly recommended by Lonsec which is as high as it gets.
• From their graph, http://www.managedfutures.com/managed_futures_index.aspx the relevant index of managed futures with 10k invested in Dec 89 would be 100k in Dec.09. So 100k invested would be 1m.
Clients have been entrusting us with their funds since 1984. As a contemporary lady financial adviser said to us recently ‘we can look them in the eye & know we have given them the correct advice’.
Let’s recall that not too long ago we were in the midst of a 10 year drought. Now that is very hard to believe today when we have inland seas in South Queensland.
We also compare markets with personal relationships i.e. ‘they go up & down & we have to live with them’.
However that is very hard to reconcile with when we are talking about money. Hence because of the CFG & the volatility others are looking at other investments. They look at rental property as it is spruiked that property ‘doubles every 10 years. I.e. a compound rate p.a. of 7.2%. Well sorry but that is very disappointing & can be bettered. We could also refer you to a recent article that states that 25% of buyers of houses in Sydney have lost money if they bought & sold in the last 5 Years. In Brisbane it is suggested 15%.
We suggest that that this % is bigger because no data ever takes into account the costs of property. There are costs to property at the beginning & hence you have paid more for your property. Similarly you have paid costs on the selling such as stamp duty, conveyancy fees, real estate agents 2-3% commission and costs of moving & the new QLD land taxx. These reduce your profits we would argue by 5 %. You then generally trade up or on the same market. You also do some ‘renovating’ as you want to improve & profit but this cost is also not taken into account.
As examples we have been offered by property marketing agents a share of 25K for selling a new unit or house. Client of ours recently commented how aggravated he was with the real estate agent who made 25k & ‘didn’t want to know him after the house went unconditional’.
Hence we suggest you need to make 50K + before you sell to break even. We also suggest that ‘a house is like a spouse it requires money & maintainence’. It does mean on average you spend 1% to 2 % simply on maintaining the house. You don’t take into account your unpaid labour time on the guttering or the tree lopping or the bathroom painting.
Of course if you are negative gearing & a recent request for help was 9Kp.a cashflow negative. Where does that necessary 9K come from? Does your lifestyle suffer? Let me think about it.
We suggest you need 100k profits before you sell? Then & we almost forgot the ATO will want 50% X MTR of the real gains. Let me think about it!
If you wish to follow the money & your own house is enough property & you are aware that you need 1M in capital to retire on then you are welcome to call on 07 3848 1088, email us on info@wecoachwealth.com.au or visit our website www.wecoachwealth.com.au
We only yesterday attended another manager with 15% p.a. returns over 15 years. That is TWICE as good p.a. as the average property & means maybe EIGHT times more in 15 years with less cost.
John McAuliffe
Taxx, yes we have spelt it as a four letter word for 29 years
Taxx
Taxx, yes we have spelt it as a four letter word for 29 years. What else can you say after you examine your pay slip? You most certainly have something to say when you look at the year’s total taxx taken off you.
Are you happy that in someway you have paid for my health costs, or my pension or my daughter’s education, or my roof insulation or my solar panels, or my family allowance or the rebate on the 2 water tanks we have?
We could add many other ways the government thinks or believes or lies that it can do better with your money than you do.
Eg Conroy’s & Anna’s mate on 450K or junkets to Copenhagen for the well connected 120. Another is Anna’s recent announcement of 250k to help my daughter to read. There are examples every day as government makes up ~50% of GNP. Don’t wind us up on the vaccination rort.
We are fairly sure you aren’t that happy in contributing to any of the above ways that redistributes [others would use other words] your hard earned efforts & money. We only need to look within a family or a company to see who really ‘husbands’ the income & who is loose with the money. When it isn’t yours then you care less & maybe you are very care less with the money.
Yes we know all that you say. Well you can allow that taxx transfusion to continue or you can do something about it. We don’t mean a novated lease for an overpriced car because it will be worth ½ as much in 3 years. That isn’t smart but frequently suggested by taxx people or bankers as a taxx reduction strategy.
[We have a client who had such a lease & would have paid off his 350K mortgage in 16 years, now with no such lease he pays it off in 9years which means he could retire 7 years earlier]
If you look at your numbers then 25% + is taken by a government & the bank takes another 25%+ for your rent to them in the form of a mortgage.
E.g. Gross Income 90,000
Taxx say - 21,650 [we haven’t included your local rates, utilities & fines, Ambulance service, Medicare…]
Bank @ 6% -21,000 interest only & hence not reducing principal because with a P & I loan you don’t for 20+ years
You need to live say -50,000 & that’s tight as <1Kp.w.
Hence just maybe you are in credit card land with 2,650 in debt. Check you credit card & is it zero at the end of the month?
Is that fun? Thank you Mr. Taxx man who we read can without warrants arrive on your doorstep. We thought that happened only in Corsica or the Western Suburbs.
Hence there needs to be a rearrangement & restructuring of debt so that Mr. Taxx subsidises your mortgage over a period of time.
As we believe the health system is 180 degrees out & an oxymoron & My School is almost as much & we have our own allocated pension as past 55, then there is no need for you to contribute as much to us or others.
Welcome to call on 3848 1088, or email us or book on our websites before Mothers day.
Our active wealth strategy or other ideas may help you.
John McAuliffe
Taxx, yes we have spelt it as a four letter word for 29 years. What else can you say after you examine your pay slip? You most certainly have something to say when you look at the year’s total taxx taken off you.
Are you happy that in someway you have paid for my health costs, or my pension or my daughter’s education, or my roof insulation or my solar panels, or my family allowance or the rebate on the 2 water tanks we have?
We could add many other ways the government thinks or believes or lies that it can do better with your money than you do.
Eg Conroy’s & Anna’s mate on 450K or junkets to Copenhagen for the well connected 120. Another is Anna’s recent announcement of 250k to help my daughter to read. There are examples every day as government makes up ~50% of GNP. Don’t wind us up on the vaccination rort.
We are fairly sure you aren’t that happy in contributing to any of the above ways that redistributes [others would use other words] your hard earned efforts & money. We only need to look within a family or a company to see who really ‘husbands’ the income & who is loose with the money. When it isn’t yours then you care less & maybe you are very care less with the money.
Yes we know all that you say. Well you can allow that taxx transfusion to continue or you can do something about it. We don’t mean a novated lease for an overpriced car because it will be worth ½ as much in 3 years. That isn’t smart but frequently suggested by taxx people or bankers as a taxx reduction strategy.
[We have a client who had such a lease & would have paid off his 350K mortgage in 16 years, now with no such lease he pays it off in 9years which means he could retire 7 years earlier]
If you look at your numbers then 25% + is taken by a government & the bank takes another 25%+ for your rent to them in the form of a mortgage.
E.g. Gross Income 90,000
Taxx say - 21,650 [we haven’t included your local rates, utilities & fines, Ambulance service, Medicare…]
Bank @ 6% -21,000 interest only & hence not reducing principal because with a P & I loan you don’t for 20+ years
You need to live say -50,000 & that’s tight as <1Kp.w.
Hence just maybe you are in credit card land with 2,650 in debt. Check you credit card & is it zero at the end of the month?
Is that fun? Thank you Mr. Taxx man who we read can without warrants arrive on your doorstep. We thought that happened only in Corsica or the Western Suburbs.
Hence there needs to be a rearrangement & restructuring of debt so that Mr. Taxx subsidises your mortgage over a period of time.
As we believe the health system is 180 degrees out & an oxymoron & My School is almost as much & we have our own allocated pension as past 55, then there is no need for you to contribute as much to us or others.
Welcome to call on 3848 1088, or email us or book on our websites before Mothers day.
Our active wealth strategy or other ideas may help you.
John McAuliffe
Good Cashflow business for sale
Good Cashflow business for sale
“Good cashflow business for sale. Why? We are tired of doing it & want to retire.”
This was the sign outside our local news agency today. They have been there since we have been here & that’s 29 years. We trust they have put away some other amount as at a guess they get from a small business is 1 years salary as ‘goodwill’ & SAV. What’s goodwill & when you want to sell then this is negotiable. SAV or stock at valuation could be a box of stamps. I.e. their retirement ‘cookie jar’ could be very empty.
So we trust they have some actioned some active wealth strategy over the last 29 years. Maybe they bought WBC back then @ $2.50 when the late Kerry wanted to buy 15% of WBC. Just maybe they have has a useful portfolio which with compound interest & reinvested dividends has built up to provide the replacement income that they need. When my wife comments that she spent $100 @ Woolies last night & she has to do the same today then they will need $700 per week just for the groceries. I.e. they need a capital sum of 700K @ 5% just for the groceries. We all know we need more than just the groceries. I.e. we could go through the budget; house maintenance & health & Rates, beer ….not to forget those travel goals. What does that total per week? Maybe an extra $700K is required in capital?
This just could be less as interest rates may rise & hence they may not need so much capital. I.e. they may only need 600K @6%. However we don’t see any form of government reducing their take & all this government global borrowing means rates & your government costs will rise. It also means that other commodities such as oil, food, transport rise as well.
We also noticed on our same stroll to the news agency two houses for rent in the same street. Why is this so? Has everyone bought a house & hence no one left to rent. Are all children living with their parents? Have all those rental house investors been caught with a house to rent & no tenants. Will landlords take any rent or will they sell onto the market & offload the rental property & the debt. If all are like this what happens to house prices.
Ralph from the CBA is suggesting that maybe the CBA will raise rates higher than the RBA does. Raising the rent may induce the tenant to leave. This is not what Wayne wants or the landlord & what does this do to house prices.
They just maybe relying on the government to subsidise all or part of their lifestyle & which will include their health costs. Where does the government get the funds to do so? This PIGS or STUPID [U = UK] sovereign debt issue suggests that maybe we can’t rely on government handouts when we are in a position to say “We are tired of doing it & want to retire.” There is a suggestion in the future that your super funds may have to invest in government bonds so that the government can maintain paying pensions. Is that another inter-generational transfer of wealth? Others would call it a Ponzi scheme.
Is this what they or you or I want? We could continue & compare the difference between our neighbours who we both spoke to.
Lets repeat what ‘Rich Dad, Poor Dad’ wrote many years ago. The house is not an asset as it costs & worth say 500K +. The Capital required when tired of it all is 1.4M. Which is more important?
Hence a different mindset is required -maybe our active wealth strategy which works on both simultaneously. Has the old way achieved you goals?
But why not call now on 07 3848 1088 or email us or book on our websites.
Our active wealth strategy for you is worth discussing over a lunch.
John McAuliffe
“Good cashflow business for sale. Why? We are tired of doing it & want to retire.”
This was the sign outside our local news agency today. They have been there since we have been here & that’s 29 years. We trust they have put away some other amount as at a guess they get from a small business is 1 years salary as ‘goodwill’ & SAV. What’s goodwill & when you want to sell then this is negotiable. SAV or stock at valuation could be a box of stamps. I.e. their retirement ‘cookie jar’ could be very empty.
So we trust they have some actioned some active wealth strategy over the last 29 years. Maybe they bought WBC back then @ $2.50 when the late Kerry wanted to buy 15% of WBC. Just maybe they have has a useful portfolio which with compound interest & reinvested dividends has built up to provide the replacement income that they need. When my wife comments that she spent $100 @ Woolies last night & she has to do the same today then they will need $700 per week just for the groceries. I.e. they need a capital sum of 700K @ 5% just for the groceries. We all know we need more than just the groceries. I.e. we could go through the budget; house maintenance & health & Rates, beer ….not to forget those travel goals. What does that total per week? Maybe an extra $700K is required in capital?
This just could be less as interest rates may rise & hence they may not need so much capital. I.e. they may only need 600K @6%. However we don’t see any form of government reducing their take & all this government global borrowing means rates & your government costs will rise. It also means that other commodities such as oil, food, transport rise as well.
We also noticed on our same stroll to the news agency two houses for rent in the same street. Why is this so? Has everyone bought a house & hence no one left to rent. Are all children living with their parents? Have all those rental house investors been caught with a house to rent & no tenants. Will landlords take any rent or will they sell onto the market & offload the rental property & the debt. If all are like this what happens to house prices.
Ralph from the CBA is suggesting that maybe the CBA will raise rates higher than the RBA does. Raising the rent may induce the tenant to leave. This is not what Wayne wants or the landlord & what does this do to house prices.
They just maybe relying on the government to subsidise all or part of their lifestyle & which will include their health costs. Where does the government get the funds to do so? This PIGS or STUPID [U = UK] sovereign debt issue suggests that maybe we can’t rely on government handouts when we are in a position to say “We are tired of doing it & want to retire.” There is a suggestion in the future that your super funds may have to invest in government bonds so that the government can maintain paying pensions. Is that another inter-generational transfer of wealth? Others would call it a Ponzi scheme.
Is this what they or you or I want? We could continue & compare the difference between our neighbours who we both spoke to.
Lets repeat what ‘Rich Dad, Poor Dad’ wrote many years ago. The house is not an asset as it costs & worth say 500K +. The Capital required when tired of it all is 1.4M. Which is more important?
Hence a different mindset is required -maybe our active wealth strategy which works on both simultaneously. Has the old way achieved you goals?
But why not call now on 07 3848 1088 or email us or book on our websites.
Our active wealth strategy for you is worth discussing over a lunch.
John McAuliffe
PIGS & Bears & a Bull
PIGS & Bears & a Bull
We advised our clients in late January that there might just be a high in the markets. This was that everyone was optimistic & we had said previously when we hear the word ‘boom’ next we sell. We haven’t gone that far but to use another’s term we are being ‘strategically cautious’. Hence we are lightening our portfolios.
There are several major global concerns for 2010 and you don’t want to be caught in between the PIGS & the Bear.
1. ‘G’ which stands for Greece has a total debt of 113% of GNP & last year’s budget deficit of 12.7% of GNP. Hence the need to fund these deficits means the yield is 7.162% today & the insurance against sovereign default has also risen. P = Portugal & S= Spain are no different. I = Ireland & UK where they have had serious house price falls are no different.
What does this mean do you? Well it means that money retreats from the Euro & Pound to the global reserve currency $US and this appreciates against all as the $US is ‘less bad’. Hence you may see the $AUS fall 10c from today’s 90c.
2. The big players in Wall Street will use their strengthening $US to also retreat to. They have made plenty since the $AUS was ~62c & arrived here when markets were very low. Did BHP hit $24? Now is the time for them to repatriate their funds & repeat the downswing or maybe a 2nd leg of the W. This is called the ‘carry trade’. Even when companies produce good results funds are ‘selling the fact’.
3. A third factor is China which has been the ‘Bull’ in the 2009 year. However after all the easy stimulus & credit expansion of 2009 [31% in 2009] the 9 men on the China ‘board’ have decided that is enough. It has caused inflation there to be 1.9% pa in December 09 which is triple November 09. Hence they have reduced lending target by 20%. A reduction in China demand will have a reduction in AUS resource prices.
4. A Victorian stockbroker has listed 50 reasons to be very aware of the Bear & these include bank bashing everywhere, Resources taxes, Woolies with fewer sales after stimulus and other.
5. Here is another 20 reasons why the global debt time bomb may explode soon from another commentator.
It is interesting that the RBA did not raise the official cash rate on 2nd February 2010. Just maybe they don’t want the $AUS too high & harder for exporters but great for travelers. On the other hand after reading that first house buyers made up only 13% of the market the RBA didn’t want property to become even more unaffordable. They may have read what ‘mortgage stress’ these first home buyers are under after being manipulated by government grants [why didn’t you get one?] & low interest rates. A family needs 100K income to live & support a loan which must limit house prices. They can’t keep going up as incomes have a ceiling.
Hence we repeat our theme; ‘control what you can control’ reduce those debt levels as our clients have done. Our active wealth strategy means as a first step with a principal loan reduction of 1K to 2k to 3k on average per month.
Of course if you have a super fund that isn’t proactive then you need an ‘active’ adviser.
Welcome to call on 07 3848 1088, email or book on our websites.
John McAuliffe
We advised our clients in late January that there might just be a high in the markets. This was that everyone was optimistic & we had said previously when we hear the word ‘boom’ next we sell. We haven’t gone that far but to use another’s term we are being ‘strategically cautious’. Hence we are lightening our portfolios.
There are several major global concerns for 2010 and you don’t want to be caught in between the PIGS & the Bear.
1. ‘G’ which stands for Greece has a total debt of 113% of GNP & last year’s budget deficit of 12.7% of GNP. Hence the need to fund these deficits means the yield is 7.162% today & the insurance against sovereign default has also risen. P = Portugal & S= Spain are no different. I = Ireland & UK where they have had serious house price falls are no different.
What does this mean do you? Well it means that money retreats from the Euro & Pound to the global reserve currency $US and this appreciates against all as the $US is ‘less bad’. Hence you may see the $AUS fall 10c from today’s 90c.
2. The big players in Wall Street will use their strengthening $US to also retreat to. They have made plenty since the $AUS was ~62c & arrived here when markets were very low. Did BHP hit $24? Now is the time for them to repatriate their funds & repeat the downswing or maybe a 2nd leg of the W. This is called the ‘carry trade’. Even when companies produce good results funds are ‘selling the fact’.
3. A third factor is China which has been the ‘Bull’ in the 2009 year. However after all the easy stimulus & credit expansion of 2009 [31% in 2009] the 9 men on the China ‘board’ have decided that is enough. It has caused inflation there to be 1.9% pa in December 09 which is triple November 09. Hence they have reduced lending target by 20%. A reduction in China demand will have a reduction in AUS resource prices.
4. A Victorian stockbroker has listed 50 reasons to be very aware of the Bear & these include bank bashing everywhere, Resources taxes, Woolies with fewer sales after stimulus and other.
5. Here is another 20 reasons why the global debt time bomb may explode soon from another commentator.
It is interesting that the RBA did not raise the official cash rate on 2nd February 2010. Just maybe they don’t want the $AUS too high & harder for exporters but great for travelers. On the other hand after reading that first house buyers made up only 13% of the market the RBA didn’t want property to become even more unaffordable. They may have read what ‘mortgage stress’ these first home buyers are under after being manipulated by government grants [why didn’t you get one?] & low interest rates. A family needs 100K income to live & support a loan which must limit house prices. They can’t keep going up as incomes have a ceiling.
Hence we repeat our theme; ‘control what you can control’ reduce those debt levels as our clients have done. Our active wealth strategy means as a first step with a principal loan reduction of 1K to 2k to 3k on average per month.
Of course if you have a super fund that isn’t proactive then you need an ‘active’ adviser.
Welcome to call on 07 3848 1088, email or book on our websites.
John McAuliffe
Can you help my son?
Can you help my son?
Can you help my son was the question today from a client. The client says that his son’s partner is now expecting & hence his son should have some cover.
The client is very aware of the need for cover as his wife has just had a trauma cover payout as she has cancer. This trauma payout was sufficient to pay out the mortgage for the client.
So can we help the son or rather the son’s partner or rather the up coming grand child. Yes, of course we can. The son only knows he has ‘not much super’ & we know for sure that he will have insufficient life cover should that event occur. How much is sufficient?
There are plenty of calculators on http://www.lifewise.org.au/Default.aspx to work that out. However back of envelope suggests more than 1 million. The family would prefer to have a rent free house paid off say 400k – 500k and then capital of 1 million to provide the income so as there is no reduction in family standards. The mother should be allowed to be the mother & who knows how many will be in the family.
We could argue the same amount for total & permanent disability. We all are aware of the efforts in looking after elderly parents or what is even more telling bring up autistic or other disadvantaged children. A huge amount of time, money, emotions is required along with much more support. Hence total disability needs more cover than the average industry fund provides & certainly more advice. These may seem large amounts but all can be tailored to the son’s needs & income.
Of course there is also income protection which as a recent TV advt says ‘isn’t it time you discussed income protection’? as more than ‘50% of household run out of money in a month.’ As most are aware this is taxx deductible. It is also generally better outside super due to constraints on super trustees from super legislation. The son can’t rely on others to meet his rent, car expenses & living costs as they have their own challenges.
We repeat ‘all can be tailored according to the budget’ & after 25 years in this service we find that 2-3 dollars per day maximum provides useful cover.
Of course at the age of 28 this son needs to start looking after his next 28 years & his responsibilities. His partner might start suggestion houses. Unfortunately they won’t have sufficient deposit although pre CFG they might be given a loan. Hence they need to build a 20% deposit, decide what school they will send the children & it is the only house they will buy. The bank or the mortgage broker will want to flog them a loan too early & this may not be for the child’s benefit in the future. The family needs 2 incomes to meet most loans.
Hence we offer the same opportunity as for the son. I.e. a complimentary meeting with a non-aligned wealth coach & we have been a member of the FPA since its inception. We have been a member of the AFA for 26 years.
Do you have sufficient cover & if not we are here to help you. Welcome to email, call on 3848 1088 or book on our websites.
John McAuliffe
Can you help my son was the question today from a client. The client says that his son’s partner is now expecting & hence his son should have some cover.
The client is very aware of the need for cover as his wife has just had a trauma cover payout as she has cancer. This trauma payout was sufficient to pay out the mortgage for the client.
So can we help the son or rather the son’s partner or rather the up coming grand child. Yes, of course we can. The son only knows he has ‘not much super’ & we know for sure that he will have insufficient life cover should that event occur. How much is sufficient?
There are plenty of calculators on http://www.lifewise.org.au/Default.aspx to work that out. However back of envelope suggests more than 1 million. The family would prefer to have a rent free house paid off say 400k – 500k and then capital of 1 million to provide the income so as there is no reduction in family standards. The mother should be allowed to be the mother & who knows how many will be in the family.
We could argue the same amount for total & permanent disability. We all are aware of the efforts in looking after elderly parents or what is even more telling bring up autistic or other disadvantaged children. A huge amount of time, money, emotions is required along with much more support. Hence total disability needs more cover than the average industry fund provides & certainly more advice. These may seem large amounts but all can be tailored to the son’s needs & income.
Of course there is also income protection which as a recent TV advt says ‘isn’t it time you discussed income protection’? as more than ‘50% of household run out of money in a month.’ As most are aware this is taxx deductible. It is also generally better outside super due to constraints on super trustees from super legislation. The son can’t rely on others to meet his rent, car expenses & living costs as they have their own challenges.
We repeat ‘all can be tailored according to the budget’ & after 25 years in this service we find that 2-3 dollars per day maximum provides useful cover.
Of course at the age of 28 this son needs to start looking after his next 28 years & his responsibilities. His partner might start suggestion houses. Unfortunately they won’t have sufficient deposit although pre CFG they might be given a loan. Hence they need to build a 20% deposit, decide what school they will send the children & it is the only house they will buy. The bank or the mortgage broker will want to flog them a loan too early & this may not be for the child’s benefit in the future. The family needs 2 incomes to meet most loans.
Hence we offer the same opportunity as for the son. I.e. a complimentary meeting with a non-aligned wealth coach & we have been a member of the FPA since its inception. We have been a member of the AFA for 26 years.
Do you have sufficient cover & if not we are here to help you. Welcome to email, call on 3848 1088 or book on our websites.
John McAuliffe
We managed to save $24 000 over the last 6 months and that doesn't include our tax refund or cash earnings either.
We managed to save $24 000 over the last 6 months and that doesn't include our tax refund or cash earnings either.
“Hoping you all had a lovely Christmas. WA was absolutely perfect for us, very peaceful and lazy.
Back at work this week and homework done.
We managed to save $24 000 over the last 6 months and that doesn't include our tax refund or cash earnings either. We're very satisfied with how we've weathered the GFC despite our reduced investment performance.
Happy New Year John!
Sue”
Yes we do have success when clients have success. We find that clients who do their monthly homework do have success as their homework helps them understand & achieve our active wealth strategy.
It is actually part of a very simple strategy where they pay their mortgage before they pay themselves. When we look at their HW we note $16,726 from dividends & taxx refund which accelerates their mortgage reduction even further.
These are average clients i.e. a public servant, working spouse & 2 expensive boys in later years of schooling.
As recent job figures suggest that iinterest rates might climb another 0.75% then it makes sense to reduce debt as fast as you can. However the key do doing so is the strategy & capturing the lost $3,068 that average families can’t define over a year. Also capturing the second income would make, no does make, a serious dent in the mortgage.
What about the dividends & taxx refund. Well as super is legislated & has taxx concessions it poses government risk of manipulation. It also doesn’t provide an additional income to reduce your mortgage debt. Hence even more restructuring & coaching is required to reduce both rates & taxx over time.
The reality is that your super maybe inaccessible & the government pension [which is a Ponzi scheme] is now not available to age 67. Hence additional capital is necessary & on average we aim to achieve an additional ½ million [today’s $] for clients.
We are not mortgage brokers but a non aligned wealth coach with an AFSL. Recall the bank or mortgage broker flogs the loan & paying it back is your challenge. We also read 15/01/10 that customers of the big four banks are unhappy. Well the big four will be happy if you stay with them. Fixing rates only handcuffs you to the bank & those with a rental property usually could be structured more efficiently.
We expect these clients to have their bad mortgage debt to Zero by the next Christmas break. We imagine these clients will really enjoy that holiday. They do have a reasonable lifestyle.
Yes there are other testimonials on our websites that may help you make the next step.
Welcome to call on 07 3848 1088, email or book on our websites.
John McAuliffe
“Hoping you all had a lovely Christmas. WA was absolutely perfect for us, very peaceful and lazy.
Back at work this week and homework done.
We managed to save $24 000 over the last 6 months and that doesn't include our tax refund or cash earnings either. We're very satisfied with how we've weathered the GFC despite our reduced investment performance.
Happy New Year John!
Sue”
Yes we do have success when clients have success. We find that clients who do their monthly homework do have success as their homework helps them understand & achieve our active wealth strategy.
It is actually part of a very simple strategy where they pay their mortgage before they pay themselves. When we look at their HW we note $16,726 from dividends & taxx refund which accelerates their mortgage reduction even further.
These are average clients i.e. a public servant, working spouse & 2 expensive boys in later years of schooling.
As recent job figures suggest that iinterest rates might climb another 0.75% then it makes sense to reduce debt as fast as you can. However the key do doing so is the strategy & capturing the lost $3,068 that average families can’t define over a year. Also capturing the second income would make, no does make, a serious dent in the mortgage.
What about the dividends & taxx refund. Well as super is legislated & has taxx concessions it poses government risk of manipulation. It also doesn’t provide an additional income to reduce your mortgage debt. Hence even more restructuring & coaching is required to reduce both rates & taxx over time.
The reality is that your super maybe inaccessible & the government pension [which is a Ponzi scheme] is now not available to age 67. Hence additional capital is necessary & on average we aim to achieve an additional ½ million [today’s $] for clients.
We are not mortgage brokers but a non aligned wealth coach with an AFSL. Recall the bank or mortgage broker flogs the loan & paying it back is your challenge. We also read 15/01/10 that customers of the big four banks are unhappy. Well the big four will be happy if you stay with them. Fixing rates only handcuffs you to the bank & those with a rental property usually could be structured more efficiently.
We expect these clients to have their bad mortgage debt to Zero by the next Christmas break. We imagine these clients will really enjoy that holiday. They do have a reasonable lifestyle.
Yes there are other testimonials on our websites that may help you make the next step.
Welcome to call on 07 3848 1088, email or book on our websites.
John McAuliffe