Whether renunciation is right for you‘
Simon grills the world's foremost renunciation expert on the how-tos of giving up US citizenship. If you've ever wondered 'whether renunciation is right for you’ is an excerpt from Simon of sovereignman.com
& just maybe the option you are considering now that you will be slugged with another proposed taxx.
This Carbon Taxx just might be the last straw for you & maybe fleeing which is a prehistoric male mood maybe the solution for you.
We certainly know of several blue heeler Aussies who are very keen to leave their mummy or is it their nanny state.
There is David who has a MBA & MCommLaw who his wife says ‘We have to go as we have no option’. David just can’t wait to leave as what is the point of staying in the 14th most expensive city in the world when taxx takes close to half, 45%, his income after expenses.
There is Peter who not only spent 5 years on a horse in the Northern Territory but also built a successful consulting business & established various businesses. He to wants to leave permanently even though he has a granddaughter here.
In fact there would be over 1 million expatriates or Diaspora & they aren’t all doing the grey lap or the OE trip.
The frustration at what is happening in US is also happening here in AUS.
Today only 27% approve of the current big government & either persuasion is questionable.
Privacy is another issue for another day.
As we all know Taxx is wasted & spent on pet projects.
You can use your funds better.
This is reflected in the attitude that ‘If we don't keep cost competitive, (investors) will go elsewhere, that's the reality," she said’.
So mining jobs leave. Let’s kill the goose.
So your equities in your super fund which is your pension loses more.
Thank you very much poll dancers.
Dominic next door pointed out that he pays 45k in taxx. Ok he must earn a lot but then his employer believes he is worth it. We certainly don’t begrudge him his income as we know his occupation. He can’t leave his family just because his taxx is ridiculous.
So what is he to do.
We gather that costs will increase due to this carbon taxx.
That means to Dominic & home buyers that rates will go up when inflation picks up.
Thank you very much poll dancers.
We do have a simple strategy for him which is to have the taxx man over time ‘subsidise his mortgage’ & create a portfolio outside super.
There are many different ‘taxx structures’ available to you & you don’t need to investigate Labuan to minimise your taxx.
If you are our age then an allocated pension pays zero taxx on its earnings & there is also a 15% rebate to you.
If you are George & turned 55 recently then you to should convert all your super to a similar pension.
If your wife isn’t earning then income & assets in her name is a simple solution.
If you are both earning over 37K then you will be on 32.5% MTR. There is a better way.
And an idea that just entered our mail box.
From 1 July 2011 the exempt asset amount increased from $11,000 to $11,250. This means that a client can now receive up to $438.75 per annum in extra age pension. This is also an opportunity to review your existing funeral bond clients as they can top up their funeral bond so long as total contributions do not exceed the new $11,250 limit.
Not exciting but appropriate for many & a simple idea.
If your super ‘bats for the other side’ then maybe you should reconsider where your fund’s administration fees go.
We have argued the cost benefits to you recently.
We have many more ideas & you are welcome to call on 07 3848 1088 or email or visit our websites. Dominic also mentioned that you needed 2 million in capital to retire on. That is right & the traditional way won’t get you there.
Recall that the poll dancers believe 500K before capping contributions is sufficient for you
We promise you will know more about your finances after our meeting.
John McAuliffe
Have you compared the Two?
Have you compared the two?
Yes we are continually interrupted with an advt. asking us this question.
So we decided to do some HW by venturing to such an industry fund who somehow can afford the large sums [a contemporary recently suggested $18m] for TV advertising.
We didn’t find the answers on the first page of the website although they do have a calculator on their site suggesting you use it.
However we just wanted the answers & it will be in the PDS.
You have to search hard to find the PDS & then under fees you find the answer.
It is not that simple because they never are.
We have copied their fees page from their PDS.
An example of annual fees
Here’s an example of how the fees and costs in the Balanced option for this product can affect your superannuation investment over a one-year period.
You should use this table to compare this product with other superannuation products.
Example - the Balanced Investment Option Balance of $50,000 with total contributions of $5,000 during the year
Contributions fees Nil
For every $5,000 you put in, you will be charged $0.
Plus: Management costs
0.65% plus $78 ($1.50 per week)
And for every $50,000 you have in the fund you'll be charged $325 each year, plus $78 in administration fees regardless of your balance.
Equals: Cost of fund
If you put in $5,000 during a year and your balance was $50,000, then for that year you'll be charged fees of $403.
What it costs will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.
Account management costs Amount Administration fee $1.50 per week
Adviser service fee
This is deducted after you authorise payment to an eligible adviser for the advice you receive about your investment.
This fee is automatically set at zero but can be negotiated between you and your adviser up to the following limits:
Initial advice: $4,659.10
Once-off advice: $2,329.55
Member Benefit Protection (MBP) for 2009/10 # 0.05% pa
Additional service fee Amount Binding nomination fee
This is the annual fee charged if you decide to make a Binding Death Benefit Nomination. $10 per year.
This article suggests a very good reason why you do so.
Hence we conclude that their administration fees which is what they are wanting us to compare to are not as cheap as they suggest.
I.e. it is [0.65% & .05% = 0.70%] + $78p.a. + $10 = 0.70% +$88
Are we sure that it is their hands they are holding?
We suggest that for you we can generally do this cheaper.
It is implied that theirs is better than others but closer examination suggests that may not be so.
We heard 25 years ago that about from the weather the world’s most boring question is
‘what is the cost’?
And certainly cost is a factor & we have answered this for you.
There is No debate that the biggest cost is the government 15% taxx grab within the fund. Why doesn’t government reduce that?
They have made a start by refund contributions taxx next year but why not this financial year. A $ is worth less next year.
Why did the Liberals disagree with this excellent Labour idea? Is it their only one?
Apart from cost three other issues within your super are
• the returns & many funds on a platform will beat their fund returns.
• when is the contributions taxx paid as the ATO shouldn’t get it a day before necessary.
• the insurance definitions are a minefield & need close examination in many cases. You get what you pay for.
E.g. are you covered if your employer doesn’t pay or if you leave that employer.
And what about the trustees & beneficiaries?
We read today 5th July 2011 that
‘Serious concerns about longevity risk are being expressed by Australians over 50’.
The majority of Australians approaching retirement have grave fears they will outlive their savings, a new industry survey has shown.
The second MetLife International Employee Benefits Trends Study revealed 52 per cent of respondents over the age of 51 were extremely worried they would outspend their savings.
However, according to MetLife, only 40 per cent of individuals were actually taking action to boost their retirement savings while they were still working.
Currently, the average superannuation asset balance for people over 50 was $52,500, the research showed.
To compound this current lack of savings, the research found 25 per cent of participants were unable to plan for the future and were continuing to live from pay packet to pay packet. Furthermore, most people had some form of debt to service as well.
The survey did uncover a desire to take some action, starting with education, with a large number of employees calling for methods to improve their ability to plan their financial future.
Employers are also concerned about the generation on the verge of retirement and the impact it will have on the workforce. Reflective of this sentiment was the fact 90 per cent of respondents named employee retention as their first and foremost priority.
"Australians look to their chosen superannuation fund and their employers when they consider their personal insurance and financial protection needs. With both the economy and the labour market heating up, there is a real opportunity to explore innovation in benefits packages, including flexible retirement solutions,"
The survey was conducted between November 2010 and February 2011 by GFK Custom Research on behalf of MetLife, with the opinions of 258 people sought
We could conclude that you need advice today.
We will certainly suggest that our advice fee will be a fraction of theirs because we don’t have the ego or the advertising or the overheads or the party that they do.
And we have been helping & advising for 27 years which beats almost all.
Here to help you 24/6 if you wish.
Welcome to call on 07 3848 1088
or email info@wecoachwealth.com.au
or visit our websiteswww.wecoachwealth.com.au
John McAuliffe
Yes we are continually interrupted with an advt. asking us this question.
So we decided to do some HW by venturing to such an industry fund who somehow can afford the large sums [a contemporary recently suggested $18m] for TV advertising.
We didn’t find the answers on the first page of the website although they do have a calculator on their site suggesting you use it.
However we just wanted the answers & it will be in the PDS.
You have to search hard to find the PDS & then under fees you find the answer.
It is not that simple because they never are.
We have copied their fees page from their PDS.
An example of annual fees
Here’s an example of how the fees and costs in the Balanced option for this product can affect your superannuation investment over a one-year period.
You should use this table to compare this product with other superannuation products.
Example - the Balanced Investment Option Balance of $50,000 with total contributions of $5,000 during the year
Contributions fees Nil
For every $5,000 you put in, you will be charged $0.
Plus: Management costs
0.65% plus $78 ($1.50 per week)
And for every $50,000 you have in the fund you'll be charged $325 each year, plus $78 in administration fees regardless of your balance.
Equals: Cost of fund
If you put in $5,000 during a year and your balance was $50,000, then for that year you'll be charged fees of $403.
What it costs will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.
Account management costs Amount Administration fee $1.50 per week
Adviser service fee
This is deducted after you authorise payment to an eligible adviser for the advice you receive about your investment.
This fee is automatically set at zero but can be negotiated between you and your adviser up to the following limits:
Initial advice: $4,659.10
Once-off advice: $2,329.55
Member Benefit Protection (MBP) for 2009/10 # 0.05% pa
Additional service fee Amount Binding nomination fee
This is the annual fee charged if you decide to make a Binding Death Benefit Nomination. $10 per year.
This article suggests a very good reason why you do so.
Hence we conclude that their administration fees which is what they are wanting us to compare to are not as cheap as they suggest.
I.e. it is [0.65% & .05% = 0.70%] + $78p.a. + $10 = 0.70% +$88
Are we sure that it is their hands they are holding?
We suggest that for you we can generally do this cheaper.
It is implied that theirs is better than others but closer examination suggests that may not be so.
We heard 25 years ago that about from the weather the world’s most boring question is
‘what is the cost’?
And certainly cost is a factor & we have answered this for you.
There is No debate that the biggest cost is the government 15% taxx grab within the fund. Why doesn’t government reduce that?
They have made a start by refund contributions taxx next year but why not this financial year. A $ is worth less next year.
Why did the Liberals disagree with this excellent Labour idea? Is it their only one?
Apart from cost three other issues within your super are
• the returns & many funds on a platform will beat their fund returns.
• when is the contributions taxx paid as the ATO shouldn’t get it a day before necessary.
• the insurance definitions are a minefield & need close examination in many cases. You get what you pay for.
E.g. are you covered if your employer doesn’t pay or if you leave that employer.
And what about the trustees & beneficiaries?
We read today 5th July 2011 that
‘Serious concerns about longevity risk are being expressed by Australians over 50’.
The majority of Australians approaching retirement have grave fears they will outlive their savings, a new industry survey has shown.
The second MetLife International Employee Benefits Trends Study revealed 52 per cent of respondents over the age of 51 were extremely worried they would outspend their savings.
However, according to MetLife, only 40 per cent of individuals were actually taking action to boost their retirement savings while they were still working.
Currently, the average superannuation asset balance for people over 50 was $52,500, the research showed.
To compound this current lack of savings, the research found 25 per cent of participants were unable to plan for the future and were continuing to live from pay packet to pay packet. Furthermore, most people had some form of debt to service as well.
The survey did uncover a desire to take some action, starting with education, with a large number of employees calling for methods to improve their ability to plan their financial future.
Employers are also concerned about the generation on the verge of retirement and the impact it will have on the workforce. Reflective of this sentiment was the fact 90 per cent of respondents named employee retention as their first and foremost priority.
"Australians look to their chosen superannuation fund and their employers when they consider their personal insurance and financial protection needs. With both the economy and the labour market heating up, there is a real opportunity to explore innovation in benefits packages, including flexible retirement solutions,"
The survey was conducted between November 2010 and February 2011 by GFK Custom Research on behalf of MetLife, with the opinions of 258 people sought
We could conclude that you need advice today.
We will certainly suggest that our advice fee will be a fraction of theirs because we don’t have the ego or the advertising or the overheads or the party that they do.
And we have been helping & advising for 27 years which beats almost all.
Here to help you 24/6 if you wish.
Welcome to call on 07 3848 1088
or email info@wecoachwealth.com.au
or visit our websiteswww.wecoachwealth.com.au
John McAuliffe
New development in Crows Nest
We are very pleased to be able to offer clients early access to the a new development in Crows Nest NSW.
The building consists largely of one bedroom + study/guestroom apartments.
They offer a very spacious 61m2 of internal space and 8m2 wintergarden (or logier).
There are also a handful of corner position two bedroom apartments for those perhaps looking at an owner-occupier option.
These range in size from 81m2 internally to 92m2 internally with 8-9m2 wintergardens or balconies.
The building offers good value on a price per square meter basis, strong projected rental returns and very high level of finishes.
The development is due to commence construction in September 2011 with completion in early-mid 2013.
Pricing;
1. One bedroom + study/guestroom apartments ; $545,000 to $610,000 (remember zero stamp-duty under $600,000)
2. Two bedroom apartments; $810,000 to $895,000
Process;
• The VIP launch will be held on the weekend of the 9th & 10th July.
Please contact us for the Purchase Procedures document for a full explanation of the process.
• $10,000 Expression of Interest deposits will be required.
For your further information such as floor plates, sample floor plans, rental appraisals, outgoings and images of the development please contact us.
Note that we can provide deprecation schedules so we will be able to provide cash-flow analyses.
If you may be interested in the development please do not hesitate to call us on
07 3848 1088
Alternatively you can email us on info@wecoachwealth.com.au .
We will be pleased to speak to any interest parties and assist them with their enquiries.
John McAuliffe
The building consists largely of one bedroom + study/guestroom apartments.
They offer a very spacious 61m2 of internal space and 8m2 wintergarden (or logier).
There are also a handful of corner position two bedroom apartments for those perhaps looking at an owner-occupier option.
These range in size from 81m2 internally to 92m2 internally with 8-9m2 wintergardens or balconies.
The building offers good value on a price per square meter basis, strong projected rental returns and very high level of finishes.
The development is due to commence construction in September 2011 with completion in early-mid 2013.
Pricing;
1. One bedroom + study/guestroom apartments ; $545,000 to $610,000 (remember zero stamp-duty under $600,000)
2. Two bedroom apartments; $810,000 to $895,000
Process;
• The VIP launch will be held on the weekend of the 9th & 10th July.
Please contact us for the Purchase Procedures document for a full explanation of the process.
• $10,000 Expression of Interest deposits will be required.
For your further information such as floor plates, sample floor plans, rental appraisals, outgoings and images of the development please contact us.
Note that we can provide deprecation schedules so we will be able to provide cash-flow analyses.
If you may be interested in the development please do not hesitate to call us on
07 3848 1088
Alternatively you can email us on info@wecoachwealth.com.au .
We will be pleased to speak to any interest parties and assist them with their enquiries.
John McAuliffe
what the seers are saying!
Yes you are right & What the financial commentators are saying ?
Yes we are where Peter from Bell Potter says we are in the cycle.
Peter showed us on a template during his lunchtime address on Tuesday that we are in the ‘year of volatility’ that is normal.
So it is normal to be down by 13% during the 2nd year after governments bails out the banks.
Peter expects at least 2 of the PIIGS to default as ‘Europe is sad & bad’.
However if PIG do fall then at most 3% of Europe wealth.
He commented that OECD government bonds are greater that the OECD net wealth & that it takes 5 to 14 years for government deficits to be reduced to sustainable levels.
Peter is optimistic about China prospects as 36 million more units & infrastructure is being built in Tier 2, 3 cities.
In Australia rates will go up to 5.75% in a year’s time & hence exchange rates will stay above parity for longer.
He observed that overseas fund managers consider the government ‘ hopeless’ & hence are repatriating their funds out.
This is another reason why equity markets have weakened.
Thanks again ‘poll dancers’.
After August 2012 Peter suggests as Peter from Sky Business says it is ‘off to the races’ with a gain of 40%.
Then we have Porter from The USA forecasting ‘the end of America’.
He is particularly negative. We have been following him for 3 years & he has made the big calls correctly. He particularly blames big government & their causes of most of the volatility.
He suggests this is caused by paper money, the explosion of debt, the military & where losses e.g. GFC are socialised but the profits are private.Porter is placing all his core shares on hold & has some ‘shorts’ on financials & even more trouble on the US real estate market.
He calls this 'the Great Correction’.
Then we have Steve who have subscribed to for 4 years.
Although he would prefer to be optimistic he comments that ‘the trend is down’ & markets are ‘wobbly’.
Hence again his core stocks are on hold & he is only adding gold at present as are the above two. Where else do the big players park their money?
Then we read this morning from Doug who summarises it all with ‘we are not out of the woods yet’.
It all depends on the US reporting season & if negative then ‘it will in effect serve as a great low-risk buying opportunity when the dust settles’.
So you are right as ‘Australian retail cash deposits are at a record high of $560 billion, an 8.9% increase for the year to March and 1.5% increase for the quarter to March, according to the latest CoreData Australian Cash report.
Credit unions, interestingly enough, have been growing at an above system rate of 10.1% for the year to March and 1.6% for the quarter to March 201’.
What the commentators say doesn’t necessarily help you.
Leaving funds in cash forever doesn’t achieve that 1,000,000 very fast.
We all have the challenges of wanting or needing to be independent of government as at present they are all broke or on the path to being so.
The Common thread of all this is ‘Sovereign risk’ & with 500+billion in government bonds Australia is on the slippery slope.
We have the challenges of becoming a millionaire with a million in capital outside the house, less taxx & less debt.
It also means good health & from what we have observed recently some better estate planning.
Here to help you & welcome to call on 07 3848 1088 or email
John McAuliffe
Yes we are where Peter from Bell Potter says we are in the cycle.
Peter showed us on a template during his lunchtime address on Tuesday that we are in the ‘year of volatility’ that is normal.
So it is normal to be down by 13% during the 2nd year after governments bails out the banks.
Peter expects at least 2 of the PIIGS to default as ‘Europe is sad & bad’.
However if PIG do fall then at most 3% of Europe wealth.
He commented that OECD government bonds are greater that the OECD net wealth & that it takes 5 to 14 years for government deficits to be reduced to sustainable levels.
Peter is optimistic about China prospects as 36 million more units & infrastructure is being built in Tier 2, 3 cities.
In Australia rates will go up to 5.75% in a year’s time & hence exchange rates will stay above parity for longer.
He observed that overseas fund managers consider the government ‘ hopeless’ & hence are repatriating their funds out.
This is another reason why equity markets have weakened.
Thanks again ‘poll dancers’.
After August 2012 Peter suggests as Peter from Sky Business says it is ‘off to the races’ with a gain of 40%.
Then we have Porter from The USA forecasting ‘the end of America’.
He is particularly negative. We have been following him for 3 years & he has made the big calls correctly. He particularly blames big government & their causes of most of the volatility.
He suggests this is caused by paper money, the explosion of debt, the military & where losses e.g. GFC are socialised but the profits are private.Porter is placing all his core shares on hold & has some ‘shorts’ on financials & even more trouble on the US real estate market.
He calls this 'the Great Correction’.
Then we have Steve who have subscribed to for 4 years.
Although he would prefer to be optimistic he comments that ‘the trend is down’ & markets are ‘wobbly’.
Hence again his core stocks are on hold & he is only adding gold at present as are the above two. Where else do the big players park their money?
Then we read this morning from Doug who summarises it all with ‘we are not out of the woods yet’.
It all depends on the US reporting season & if negative then ‘it will in effect serve as a great low-risk buying opportunity when the dust settles’.
So you are right as ‘Australian retail cash deposits are at a record high of $560 billion, an 8.9% increase for the year to March and 1.5% increase for the quarter to March, according to the latest CoreData Australian Cash report.
Credit unions, interestingly enough, have been growing at an above system rate of 10.1% for the year to March and 1.6% for the quarter to March 201’.
What the commentators say doesn’t necessarily help you.
Leaving funds in cash forever doesn’t achieve that 1,000,000 very fast.
We all have the challenges of wanting or needing to be independent of government as at present they are all broke or on the path to being so.
The Common thread of all this is ‘Sovereign risk’ & with 500+billion in government bonds Australia is on the slippery slope.
We have the challenges of becoming a millionaire with a million in capital outside the house, less taxx & less debt.
It also means good health & from what we have observed recently some better estate planning.
Here to help you & welcome to call on 07 3848 1088 or email
John McAuliffe
Yes you are right & what the seers are saying
Yes you are right & What the financial commentators are saying ?
Yes we are where Peter from Bell Potter says we are in the cycle.
Peter showed us on a template during his lunchtime address on Tuesday that we are in the ‘year of volatility’ that is normal.
So it is normal to be down by 13% during the 2nd year after governments bails out the banks.
Peter expects at least 2 of the PIIGS to default as ‘Europe is sad & bad’.
However if PIG do fall then at most 3% of Europe wealth.
He commented that OECD government bonds are greater that the OECD net wealth & that it takes 5 to 14 years for government deficits to be reduced to sustainable levels.
Peter is optimistic about China prospects as 36 million more units & infrastructure is being built in Tier 2, 3 cities.
In Australia rates will go up to 5.75% in a year’s time & hence exchange rates will stay above parity for longer.
He observed that overseas fund managers consider the government ‘ hopeless’ & hence are repatriating their funds out.
This is another reason why equity markets have weakened.
Thanks again ‘poll dancers’.
After August 2012 Peter suggests as Peter from Sky Business says it is ‘off to the races’ with a gain of 40%.
Then we have Porter from The USA forecasting ‘the end of America’.
He is particularly negative. We have been following him for 3 years & he has made the big calls correctly. He particularly blames big government & their causes of most of the volatility.
He suggests this is caused by paper money, the explosion of debt, the military & where losses e.g. GFC are socialised but the profits are private.Porter is placing all his core shares on hold & has some ‘shorts’ on financials & even more trouble on the US real estate market.
He calls this 'the Great Correction’.
Then we have Steve who have subscribed to for 4 years.
Although he would prefer to be optimistic he comments that ‘the trend is down’ & markets are ‘wobbly’.
Hence again his core stocks are on hold & he is only adding gold at present as are the above two. Where else do the big players park their money?
Then we read this morning from Doug who summarises it all with ‘we are not out of the woods yet’.
It all depends on the US reporting season & if negative then ‘it will in effect serve as a great low-risk buying opportunity when the dust settles’.
So you are right as ‘Australian retail cash deposits are at a record high of $560 billion, an 8.9% increase for the year to March and 1.5% increase for the quarter to March, according to the latest CoreData Australian Cash report.
Credit unions, interestingly enough, have been growing at an above system rate of 10.1% for the year to March and 1.6% for the quarter to March 201’.
What the commentators say doesn’t necessarily help you.
Leaving funds in cash forever doesn’t achieve that 1,000,000 very fast.
We all have the challenges of wanting or needing to be independent of government as at present they are all broke or on the path to being so.
The Common thread of all this is ‘Sovereign risk’ & with 500+billion in government bonds Australia is on the slippery slope.
We have the challenges of becoming a millionaire with a million in capital outside the house, less taxx & less debt.
It also means good health & from what we have observed recently some better estate planning.
Here to help you & welcome to call on 07 3848 1088 or email
John McAuliffe
Yes we are where Peter from Bell Potter says we are in the cycle.
Peter showed us on a template during his lunchtime address on Tuesday that we are in the ‘year of volatility’ that is normal.
So it is normal to be down by 13% during the 2nd year after governments bails out the banks.
Peter expects at least 2 of the PIIGS to default as ‘Europe is sad & bad’.
However if PIG do fall then at most 3% of Europe wealth.
He commented that OECD government bonds are greater that the OECD net wealth & that it takes 5 to 14 years for government deficits to be reduced to sustainable levels.
Peter is optimistic about China prospects as 36 million more units & infrastructure is being built in Tier 2, 3 cities.
In Australia rates will go up to 5.75% in a year’s time & hence exchange rates will stay above parity for longer.
He observed that overseas fund managers consider the government ‘ hopeless’ & hence are repatriating their funds out.
This is another reason why equity markets have weakened.
Thanks again ‘poll dancers’.
After August 2012 Peter suggests as Peter from Sky Business says it is ‘off to the races’ with a gain of 40%.
Then we have Porter from The USA forecasting ‘the end of America’.
He is particularly negative. We have been following him for 3 years & he has made the big calls correctly. He particularly blames big government & their causes of most of the volatility.
He suggests this is caused by paper money, the explosion of debt, the military & where losses e.g. GFC are socialised but the profits are private.Porter is placing all his core shares on hold & has some ‘shorts’ on financials & even more trouble on the US real estate market.
He calls this 'the Great Correction’.
Then we have Steve who have subscribed to for 4 years.
Although he would prefer to be optimistic he comments that ‘the trend is down’ & markets are ‘wobbly’.
Hence again his core stocks are on hold & he is only adding gold at present as are the above two. Where else do the big players park their money?
Then we read this morning from Doug who summarises it all with ‘we are not out of the woods yet’.
It all depends on the US reporting season & if negative then ‘it will in effect serve as a great low-risk buying opportunity when the dust settles’.
So you are right as ‘Australian retail cash deposits are at a record high of $560 billion, an 8.9% increase for the year to March and 1.5% increase for the quarter to March, according to the latest CoreData Australian Cash report.
Credit unions, interestingly enough, have been growing at an above system rate of 10.1% for the year to March and 1.6% for the quarter to March 201’.
What the commentators say doesn’t necessarily help you.
Leaving funds in cash forever doesn’t achieve that 1,000,000 very fast.
We all have the challenges of wanting or needing to be independent of government as at present they are all broke or on the path to being so.
The Common thread of all this is ‘Sovereign risk’ & with 500+billion in government bonds Australia is on the slippery slope.
We have the challenges of becoming a millionaire with a million in capital outside the house, less taxx & less debt.
It also means good health & from what we have observed recently some better estate planning.
Here to help you & welcome to call on 07 3848 1088 or email
John McAuliffe
The following three projects recently listed by our Melbourne Residential Projects Team.
Each project offers its own unique appeal, below is a brief description of each;
1. 587-589 Elizabeth Street, Melbourne VIC
a. Boutique development of 55 apartments close to Queen Victoria Market, the University of Melbourne and the Royal Melbourne Hospital
b. Developed by Austgroup Holdings and designed by Architects Eat
c. Project due for commencement in December 2011 (so significant stamp-duty savings available now) and due for completion 18 months thereafter
d. One bedroom apartments 45m2 internal to 60m2 internal ($380,000 to $435,000)
e. Two bedroom apartments 53m2 internal to 68m2 internal ($390,000 to $560,000)
2. 457 Lygon Street, Brunswick East VIC
a. Boutique development of only 40 apartments all with storage and at least one car parking space, Upper Lygon is just a stones throw from the famous Italian Quarter
b. Contemporary five story building, open plan living, stone bench tops, reverse cycle air-conditioning and stainless steel European appliances
c. Architect is D’Orio Architects
d. One bedroom apartments 49m2 internal to 63m2 internal ($390,000 to $480,000)
e. One bedroom + study apartments 53m2 internal to 65m2 internal ($425,000 to $560,000)
f. Two bedroom apartments 67m2 internal to 79m2 internal ($550,000 to $620,000)
3. 26-38 Merri Parade, Northcote VIC
a. Development consists of 79 apartments and 14 town houses. Majority of apartments come with one car parking space.
b. All forms of transportation are a stones throw away. Also, a very unique offering for Parade residents with a Go Get Share Car available with zero joining and monthly fees for the first twelve months.
c. One bedroom apartments 39m2 internal to 51m2 external ($350,000 to $430,000)
d. Two bedroom apartments 76m2 internal to 84m2 external ($570,000 to $650,000)
e. Townhouses 121m2 internal to 183m2 external ($850,000 to $950,000)
Townhouse come with minimum one car space, most have two.
If you may be interested in any of the above projects
please do not hesitate to contact us on 07 3848 1088 or email
We would be very pleased to assist.
Kind regards,
John McAuliffe
Each project offers its own unique appeal, below is a brief description of each;
1. 587-589 Elizabeth Street, Melbourne VIC
a. Boutique development of 55 apartments close to Queen Victoria Market, the University of Melbourne and the Royal Melbourne Hospital
b. Developed by Austgroup Holdings and designed by Architects Eat
c. Project due for commencement in December 2011 (so significant stamp-duty savings available now) and due for completion 18 months thereafter
d. One bedroom apartments 45m2 internal to 60m2 internal ($380,000 to $435,000)
e. Two bedroom apartments 53m2 internal to 68m2 internal ($390,000 to $560,000)
2. 457 Lygon Street, Brunswick East VIC
a. Boutique development of only 40 apartments all with storage and at least one car parking space, Upper Lygon is just a stones throw from the famous Italian Quarter
b. Contemporary five story building, open plan living, stone bench tops, reverse cycle air-conditioning and stainless steel European appliances
c. Architect is D’Orio Architects
d. One bedroom apartments 49m2 internal to 63m2 internal ($390,000 to $480,000)
e. One bedroom + study apartments 53m2 internal to 65m2 internal ($425,000 to $560,000)
f. Two bedroom apartments 67m2 internal to 79m2 internal ($550,000 to $620,000)
3. 26-38 Merri Parade, Northcote VIC
a. Development consists of 79 apartments and 14 town houses. Majority of apartments come with one car parking space.
b. All forms of transportation are a stones throw away. Also, a very unique offering for Parade residents with a Go Get Share Car available with zero joining and monthly fees for the first twelve months.
c. One bedroom apartments 39m2 internal to 51m2 external ($350,000 to $430,000)
d. Two bedroom apartments 76m2 internal to 84m2 external ($570,000 to $650,000)
e. Townhouses 121m2 internal to 183m2 external ($850,000 to $950,000)
Townhouse come with minimum one car space, most have two.
If you may be interested in any of the above projects
please do not hesitate to contact us on 07 3848 1088 or email
We would be very pleased to assist.
Kind regards,
John McAuliffe
Could this be you?
Could this be you?
Good afternoon John,
Well we have had our tax assessment come back from the accountant for the 2010 financials and we have an estimated bill of around $35k combined.
We aren't happy with the service we are getting from this accountant, and seemingly have to continue to pay ridiculous amounts of tax all the time. One needs to wonder why we are working so hard to continue to get slapped in the face by the tax man.
We have asked her on a number of occasions to give us guidance / advice on how to 'divert' our money from the ATO, but never get anything from her.
Before we sign off these assessments, we were hoping to have another accountant review our figures to see what they can come up with.
Do you know of any 'creative accountants' that could help us?
Thanks,
‘Ann’
Yes that to could be your challenge.
However accountants who are generally ‘compliant book keepers’ are very limited & are not creative in their advice. Buying cars or houses is frequently their safe option although they are now warming to super. Their suggestion of SMSF is frequently glib & you need a sizable amount to be considered.
However super has government risk & most people now want no advice with their super.
Very simply if you are earning a gross 100K then Taxx [‘Ann’ spells it differently] is 25,000.
Then if you have an average mortgage say 350,000K @ 7.2% interest only you pay another 25,000 without reducing your debt levels.
AND that leaves 50K to live on and you can’t.
No wonder house prices are falling& most know this by now. It is called a weak market by sellers & RE agents.
Of course as the workers are feeling the pinch then they are all going out to strike as they need more to live on.
It’s a vicious circle as we then have wages pushing up prices which suggests inflation later which means the gnomes in Martin place, the RBA, increases rates. Increasing rates pushes house prices down.
It also pushes share prices down which lowers the value of your retirement funds. Therefore you work longer and live on less.
Thanks heaps to the marginal voter & the ‘fence sitters’ in the House.
If you are a similar position as “Ann’ with 1 or more rental properties then are you any better off?
‘Ann’ earns say 150,000
Her negative cashflow from 3 ‘rental properties’ is say 30,000++
Hence taxable income is 120,000-
Her taxx = 32,351
Hence a net 87,649
Her mortgage is 460,000 & larger because her income is larger.
Hence interest only is 33,120 which feeds the bank but doesn’t reduce her home debt.
Which leaves 54,529 to live on which is 1049 per week.
We all need MORE that to live on as you know.
‘Ann’ can see that her lifestyle is no better off with 3 rental properties than a person on 100K with no rental properties.
However ‘Ann’ may not want to sell in this weak market & the 4% costs in doing so.
This shows that you need to be earning close to 150,000 if you have a rental property & to live.
If you are not earning this then what do you do.
Ann needs to let the taxx man subsidise her own home mortgage out west of here.
That reduces the total take that the taxx man & the bank take from her.
How do you qualify for such a solution?
If you have a LVR less than 70%, you can save $10 per day or 3k p.a. and don’t want to be subsidising the pension with your super and have a ‘positive’ risk profile.
then you are welcome to call 07 3848 1088 or email or visit our websites.
You might do so before June 30th although our options are limited by the time frame.
Give us time & we will [may] have a solution for you.
John McAuliffe
Good afternoon John,
Well we have had our tax assessment come back from the accountant for the 2010 financials and we have an estimated bill of around $35k combined.
We aren't happy with the service we are getting from this accountant, and seemingly have to continue to pay ridiculous amounts of tax all the time. One needs to wonder why we are working so hard to continue to get slapped in the face by the tax man.
We have asked her on a number of occasions to give us guidance / advice on how to 'divert' our money from the ATO, but never get anything from her.
Before we sign off these assessments, we were hoping to have another accountant review our figures to see what they can come up with.
Do you know of any 'creative accountants' that could help us?
Thanks,
‘Ann’
Yes that to could be your challenge.
However accountants who are generally ‘compliant book keepers’ are very limited & are not creative in their advice. Buying cars or houses is frequently their safe option although they are now warming to super. Their suggestion of SMSF is frequently glib & you need a sizable amount to be considered.
However super has government risk & most people now want no advice with their super.
Very simply if you are earning a gross 100K then Taxx [‘Ann’ spells it differently] is 25,000.
Then if you have an average mortgage say 350,000K @ 7.2% interest only you pay another 25,000 without reducing your debt levels.
AND that leaves 50K to live on and you can’t.
No wonder house prices are falling& most know this by now. It is called a weak market by sellers & RE agents.
Of course as the workers are feeling the pinch then they are all going out to strike as they need more to live on.
It’s a vicious circle as we then have wages pushing up prices which suggests inflation later which means the gnomes in Martin place, the RBA, increases rates. Increasing rates pushes house prices down.
It also pushes share prices down which lowers the value of your retirement funds. Therefore you work longer and live on less.
Thanks heaps to the marginal voter & the ‘fence sitters’ in the House.
If you are a similar position as “Ann’ with 1 or more rental properties then are you any better off?
‘Ann’ earns say 150,000
Her negative cashflow from 3 ‘rental properties’ is say 30,000++
Hence taxable income is 120,000-
Her taxx = 32,351
Hence a net 87,649
Her mortgage is 460,000 & larger because her income is larger.
Hence interest only is 33,120 which feeds the bank but doesn’t reduce her home debt.
Which leaves 54,529 to live on which is 1049 per week.
We all need MORE that to live on as you know.
‘Ann’ can see that her lifestyle is no better off with 3 rental properties than a person on 100K with no rental properties.
However ‘Ann’ may not want to sell in this weak market & the 4% costs in doing so.
This shows that you need to be earning close to 150,000 if you have a rental property & to live.
If you are not earning this then what do you do.
Ann needs to let the taxx man subsidise her own home mortgage out west of here.
That reduces the total take that the taxx man & the bank take from her.
How do you qualify for such a solution?
If you have a LVR less than 70%, you can save $10 per day or 3k p.a. and don’t want to be subsidising the pension with your super and have a ‘positive’ risk profile.
then you are welcome to call 07 3848 1088 or email or visit our websites.
You might do so before June 30th although our options are limited by the time frame.
Give us time & we will [may] have a solution for you.
John McAuliffe