What are the fundamental needs of your financial life, for you?

These would be our basic financial needs that must be satisfied & provide you & I with a sense of security.

They provide you & I  with a foundation to build on such as  security, choices, no stress, pay bills, no debt , financial freedom & having options that we might want to follow.

Yes those are fairly generic goals that we all have.

As Catherine & Bill had on Saturday they could be

·         Reducing the B deductible debt now that their mortgage is all deductible.

·         Having a ‘great job’ where no other department is paying so well.

·         Having a similar lifestyle on their retirement.

It might be the call from two different clients whose children were wanting to buy a house. The children maybe wanted ‘security’ & maybe ‘independence’ or ‘options’ not that a 10% house deposit is going to give them that.

Why do we ask this  question?

After your house has been drawn up by the architect you then start out preparing the ground for the slab. Your house needs great foundations. You & I start out on building our financial house & we use the  plan.  We need to agree on the foundations.

We then want the best strategy for the next year to kick these goals. This is why the builder  always looks at what the draughtsman has drawn up. He does need to know what your tastes are.

Initially we are all motivated to satisfy our basic survival needs.

If a picture says a thousand words then this did for us

 

So this picture summarises where our basic fundamental needs are. I.e. security.

Ego is all those details & milestones  that we focus on. Aspirational is a good word.

The stages & the ‘furlong posts’ in the race of life.

“keeping up with the Joneses”  comes to mind but that’s unfair.

For Catherine & William this year means trips to Japan & Vietnam to see their son, completing their renovations by painting the house  & enjoying work.

They needed to know what is the best way forward to ‘ticking the boxes’ or to maximise their chances of achieving these lifestyle outcomes.

Fulfilment at our age resonates with ‘the Six stages of man’. 

We used the word ‘legacy’  with Kim today.

 Keith just delivered our No 1* prevention health story & we asked’ what are your goals for the next financial year?

‘Work Hard’

Why?

‘Earn more income’

Why?

‘Just do’

There is no why do his work or perhaps why he is prepared to tell us or himself?

If we are to take a snapshot of our building what do we want to view?

 I.e. what do we want to be remembered for?

It provides you & I with our ‘Why’ which is an even harder question.

Whoops ‘ the meaning of Life’.

So now that you have stated your ‘foundations’ then let’s start this ‘feel good’ financial stage.

‘If you & I are to sit down in three years time what do we need to do today so that you are better of personally & financially.

As others do’   I need your advice. You are very wise and happy person I ever met’

call us on 07 3848 1088 or email us or visit our websites

Lets provide some certainty. 

Lets maximise your chances of achieving your financial objectives.

We observe that at the World Cup & also @ Wimbledon that all have coaches.

 How come? Do you have a financial coach??.

Or NEXT

John McAuliffe

Would Lawrence & John or you like an extra an extra $54,945 or even $208,388??

We have just viewed a very good webinar presented by Warren.

Amongst the very many good ideas we viewed was what Lawrence & John & maybe you could do in the next week. i.e. June 30 or EOFY

If they invested 100,000 over 10 years @ 10% net interest then this table was presented.

Taxx Bracket	Cookie Jar
46.5% no debt or Medicare levy	441,143
30% most are	672,749
15%  as it super	990,597
0 if overseas say & not in Greedy 20	1,378,584

Or as John has 20 years then

Taxx Bracket	Cookie Jar
46.5%	841,920
30%	1,618, 000
15%	2,925,766
0%	5,282,753

 *No doubt this doesn’t take into account any costs such as the 3,000p.a. to run a SMSF which we don’t like anyway or fund managers fees or other. It is an illustration of the 8^th wonder of the world compound interest.* we haven’t checked the numbers in the interest of you getting the point & maybe a taxx saving in next week.

 Now Lawrence & John  don’t have $100,000 sitting around.

But they both could invest 10,000  as they have been earning plenty in FWA & offshore that they have a spare 10,000. [F = Far.]

So they could put up to the allowable deductible or concessional 25,000 into their super in the next week if they act today.

This will increase to $30,000 or more depending on legislation passing around July 1^st. In fact we have clients putting much more in as non deductible amounts.

Lawrence has only had his SGC of $14,000 into It & John  being self employed & fixated with a house deposit has put in zero.

Which is more important at our age?

The $1 ,000, 000 house or the $50,000 p.a. from a 1,000,000 cookie jar?

As Rich Dad Poor Dad writes a house is not an asset as it doesn’t produce an income.

In fact as we have found over the last 3 weekends it is a liability as it costs time & money & enthusiasm & tools to paint just the steel beams.

This is also your opportunity NOW  to add to your cookie jar in the next week.

Many do have the means, be it redraw accounts or Warren mentioned  credit cards for a moment.

Of course if they  were to do  that extreme  then the interest is not deductible as the income goes back into their or your super.

The webinar had plenty of ideas but this week is the time to act.

As Warren said ‘Failure is following the Norm.’

‘If we were in your position what would we do so that you are better off in three years time.’

As Brad & Michael have done this week you are welcome to call us today  on 07 3848 1088 or email us or visit our websites

John McAuliffe