You can now team up with the Global leader in Real Estate
Australia could well be in a sweet spot with China helping us boom & hence that other great Australian dream of a rental property could be right.
Australians living in prosperous times, says CommSec
Hence after a national search you have the opportunity to team up with a global leader in real estate.
CB Richard Ellis
• Listed on NYSE
• 300 offices & 33,000 employees
• 264 Billion in global transactions in 2007.
• $5.1 billion in revenue in 2008
• Leadership position in virtually all of the world’s key business centres.
• ….
Hence CBRE can provide you an opportunity for Sydney & Australian premium residential properties.
• An alternative for you other than your local area & agent.
• This ensures the right outcome is achieved for your long term objectives.
• They comment that whilst Brisbane’s residential vacancy rates is increasing this is not so in Sydney & Melbourne where it remains tight.
• Strong underlying demand for housing in 2010+.
• Rising house prices will support demand for rental accommodation.
• The popularity of central city markets to remain high.
• Over 50% of rental properties are bought within a 7km radius of the family home. Is that diversification?
• Internationally investment can be sourced for you.
They have selected reputable partners for your conveyancing, property management with fees @5.5%, depreciation schedules @$300 and property information reports.
These all provide you with extremely competitive fees.
Current & upcoming projects for you are apartment developments 5-10km from city.
They are landmark projects designed to suit their geographical location with a strong market movement towards mixed use developments.
You would be enthused with the property on the original site of the Dee Why hotel. 1 bedroom units are from 415K to 490K & 2 bedrooms are from 545K to 640K. I.e. commercial has 6,000 sqm & retail has11, 000 sqm.
Another option for you is on the Pentridge Goal site which when completed will be worth 1 billion and many apartments have city & district views. It has an EDS focus with 1 bedrooms from 225K to 342K. 2 bedrooms are from 315K to 585K.
As you can imagine this is a smattering of what is available through a global leader in Real estate. As you would expect we can provide all the tools & research you require.
If you are looking for landmark property either for your own home or as rental property then here is an opportunity. You will be provided an end to end solution.
As these is only as suggestions on what is available from us & to discuss what is available for you in more detail then welcome to call on 07 3848 1088, email or visit our website.
John McAuliffe
“If we can't improve your current home loan situation, we'll give you $100 for your time.”
“If we can't improve your current home loan situation, we'll give you $100 for your time.”
“If we can't improve your current home loan situation, we'll give you $100 for your time.”
After a national wide search this is what our newly appointed loan partner & mortgage provider offers.
We recently compared rates for a major client. The banks rates were 0.3% higher than our new partner. What would that mean to you per month?
They have been the Money magazine winner 3 years in a row with the lowest home loan rates in Australia.
But they offer more than that
• They are independent with no alignment to any other financial institution.
• They are multi award winning
• They consistently offer product innovation & competitive pricing
• They tell you what others don’t want you to know
• They were founded in 1998.
• They have access to banks, non banks & wholesale funders.
• They provide home buyers with loan packages to better suit their needs
• Unique products such as a fixed rate mortgage with the full flexibility of converting between fixed or variable [whichever is lower at the time with no cost]
• Credit cards at home loan rates [how does this compare to WBC]
• An additional 10K on top of their mortgage not calculated in the LVR e.g. 80% + 10K potentially saving thousands of dollars in lenders mortgage insurance.
• In house approvals that as mortgage manager control the whole process.
• Access to a credit relationship manager.
• A full range of loans for your situation.
Points of differentiation
• Interest only up to 15 years
• Telephone & internet access
• 100% offset account
• Additional payments allowed
• Weekly or fortnightly or monthly payment options
• No monthly or annual fees
• Free withdraw & free switching
• No loan mortgage insurance.
We could embellish further but could your situation be improved with 1 call.
All with 1 application & 1 credit check
Remember we recently compared for a major client. The banks rates were 0.3% higher. What would that mean to you per month?
Welcome to call on 07 3848 1088 or email or visit our websites.
John McAuliffe
“If we can't improve your current home loan situation, we'll give you $100 for your time.”
After a national wide search this is what our newly appointed loan partner & mortgage provider offers.
We recently compared rates for a major client. The banks rates were 0.3% higher than our new partner. What would that mean to you per month?
They have been the Money magazine winner 3 years in a row with the lowest home loan rates in Australia.
But they offer more than that
• They are independent with no alignment to any other financial institution.
• They are multi award winning
• They consistently offer product innovation & competitive pricing
• They tell you what others don’t want you to know
• They were founded in 1998.
• They have access to banks, non banks & wholesale funders.
• They provide home buyers with loan packages to better suit their needs
• Unique products such as a fixed rate mortgage with the full flexibility of converting between fixed or variable [whichever is lower at the time with no cost]
• Credit cards at home loan rates [how does this compare to WBC]
• An additional 10K on top of their mortgage not calculated in the LVR e.g. 80% + 10K potentially saving thousands of dollars in lenders mortgage insurance.
• In house approvals that as mortgage manager control the whole process.
• Access to a credit relationship manager.
• A full range of loans for your situation.
Points of differentiation
• Interest only up to 15 years
• Telephone & internet access
• 100% offset account
• Additional payments allowed
• Weekly or fortnightly or monthly payment options
• No monthly or annual fees
• Free withdraw & free switching
• No loan mortgage insurance.
We could embellish further but could your situation be improved with 1 call.
All with 1 application & 1 credit check
Remember we recently compared for a major client. The banks rates were 0.3% higher. What would that mean to you per month?
Welcome to call on 07 3848 1088 or email or visit our websites.
John McAuliffe
Why not Zero taxx on your Super? Taxx is your biggest fee on your super.
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
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