Declutter & Inner Eternal Peace
Alison who returned from hot air ballooning in Turkey this week said she was in Declutter mode when we offered her David’s glass desks. It was David who left them with us & we are doing his Declutter for him.
Alison has also downsized house as Thomas was reluctant to work in the yard. In fact we commented that those who are now retiring with a rental property are selling as they find the negative cashflow is a negative with their spouse.
Also those who have ticked further are selling down as older couples find the big house is in fact a big chore. Downsizing & decluttering.
How many mini-skips to move?
This is what the retailers are finding at present. I.e. their sales are static because everyone has enough clutter & doesn’t need any more.
In fact Lester, a mortgage broker, recently told us that he is constrained so that he doesn’t provide loans to those which could leave them in financial hardship & have to sell the house.
What he also said was ‘it’s the clutter in the house that forces owners out of their mortgage’.
I.e. less clutter could mean for you less debt & less stress & maybe fewer working years.
Even the RBA could reward this with a 0.25% drop in the cash rate which helps the mortgage holder but not the retiree. Why the RBA drops rates because of the price of bananas only they could answer.
It was interesting to view a bank advertising that at age 70 most have no super left. Here is a bank suggesting save more & of course they want to give you investment advice.
Why is the world so at present? The banks& all knowing governments have brought us to where we are i.e. broke. Have a look at a bank’s share price over the last year.
Would they invest in the bank?
Will that bank planner be there next year or as Maureen stated ‘they could remember her father’s name a day later even though he had invested 750K with them’.
Over the years we have sat around a few kitchen tables & observed that those who have plenty of clutter can’t make the big decisions which go with wealth accumulation.
We suggested to Roger to Declutter before he actions his contemplated renovations. They then maybe smaller. his new borrowings might be smaller. It worked for us.
It has always been an axiom to save 10% but until SGC very few did.
Those who have recently bought into Brisbane property could be sitting on a 6.7% drop in price over the last year.
In fact Kevin who moved from his house 2 years ago had originally asked for 580k & eventually sold for 508k & a drop of 12% on his asking price. He is now very aware that his new mortgage is not reducing because it is in fact too big. He also said the new Mater home that was won along the road from him was advertised to be worth 1.2m & sold for 700K.
When we observe the Euro discussions then it is the bad loans to the beach lovers & those who want to retire at 50 on the public purse that have brought us to near collapse. It’s the big guys who have now need to Declutter their loans by 50%.
Interesting the IMF doesn’t want to do so maybe not a done deal yet. The Red Queen & White Duck might give the IMF another lecture.
Donna said recently shopping at Vinnie’s is where there are some great labels all for < $10.
We have found David’s glass desks invaluable & a serious discount to Freedom. The old truism is that ‘others trash is your treasure’.
There are bargains to be had whether as it be Irish banks as Doug suggested this week or ‘bargains galore’ as some brokers say.
We know Alistair who is selling property in the US which has fallen 40% & maybe you could purchase a town or two there. Others commented that the precious metals are worth considering.
This could all be true if you have decluttered your debts as then you have freedom to play.
This week we meet several who are off to WA. They have some wounds from marriages & with less time they are moving to WA where the pay is up to twice what they are earning here. The catch is that their taxx will be twice as high & unless some wealth coaching they may not be any better off. They also have restarted with bigger debts & new mortgages.
Will they ever learn?.
Recall that ideally we need to have 1 million in capital outside the house to provide the income we need so as we don’t run out at age 70 as the bank suggests.
As we discussed with another David yesterday ‘what most need is a strategy to have the taxx man subsidise the mortgage’.
We must congratulate Ted for achieving ‘ inner eternal peace’.
The Bleus may have got "a poke in the eye" back.
Was the ‘Rainbow Warrior’ mentioned before the final as Don suggested to us on Monday?
Teams achieve their goals when there is wisdom, old heads & free spirits along with self discipline & a skill set. When at some stage in the RWC the Wallabies were ranked world No 2 then no one was blaming Robbie.
We welcome your call on 07 3848 1088 or email or visit our websites as here to coach you through the financial game.
John McAuliffe
How long to go until this Volatility ends?
How long to go until this Volatility ends?
How long to go until this Volatility ends is the question participants in the ‘markets’ are asking at the moment.
That is why we did attend this week four presentations from those entrusted to manage billions of your dollars. Lets listen to those who probably know rather than read the headlines from the sub editors.
Hence we listened to four different fund managers this week & their estimates are we have up to another year of turmoil. This is also what Peter Q said in May.
Why? It is those European debts who have loaned monies to governments who are unable to pay their loans back. The total that European banks need to be recapitalised is 1.6 trillion according to one speaker on Tuesday. I.e. 1.6 x 10¹² .
In the US most banks have done so but not yet in Europe.
Banks too frequently have to be recapitalised which is another reason why they are trading lower as new shares will be offered at a discount to current prices.
We recall buying WBC @ 3.05 in 1980 & then when the late Kerry was wanting to buy them @ 2.50 we were concerned then. What percentage fall was that & what have they returned in dividends since then has been much appreciated?
Our first presentation also known as ‘death by PowerPoint’ opened with a slide of DJ’s opening on Boxing Day. Also now is a great time to buy prestige cars & vineyards.
That was a common theme by the fund managers. I.e. the markets are at a 30 year low. This of course doesn’t imply that they won’t go lower.
We also watch Sky Business & a common theme there is ‘ bearish’.
I.e. there is no great rush to ‘go long’ yet as the trend is still down.
Now is when a monthly averaging in amount is appropriate .
However lets be very aware that deposits in the bank at 6% won’t go to the capital you require to complete the gray lap in style.
Without reproducing the 50 line disclaimer which is at every presentation lets summarise.
• The 2010 – 2011 financial year All Ords return was 12% from 8% growth & 4% dividends.
• From 1983 to 2011 Average growth has been 7.5% with dividends 4% giving 11.5%p.a.
• These are well above bank deposit rates & ‘franking’ would add another 1%.
• As intuition suggests the longer the holding the less risk. There was no period longer than 7 years when returns were negative. This was over any period in last 100 years.
• The forward PEs @ 11 are still below the average of 14.8.
• Developing countries are driving growth & not the tired socialised West.
• Corporate Australian is strong with cash sitting on balance sheets.
• One fund manager participated in 650 company meetings. Does an individual do that?
• This fund manager visited Mongolia which is much closer to China than Australia.
• A selective view on commodities for iron ore, copper & thermal coal & oil.
• Currently Australian banks have lower growth but valuations are attractive.
• There are sound reasons why credit e.g. bonds should be in a portfolio. [legal right, capital position & more predictable income].
• This global income fund earned 9.8% over 1 year & the high yield fund 11.8%.
• Bonds & credit deserve an allocation in your portfolio. [we have suggested previously this to be your age]
• Bonds have a lower volatility with competitive returns.
• Bonds provide diversification & enhance income.
• Bonds provide a less aggressive way to achieve returns.
• The current banking funding risk is NOT the liquidity crisis of 2008.
• There is a slow growth fear due to long term debt
• The G7 countries have debt >70% GNP
• There are options to deleveraging & there are risks.
• Interest rates are dropping here & elsewhere.
• A small cap fund did 23% to 31 August which is in spite of volatility.
These are ‘bullet point’s & all can be expanded. However there is plenty of opportunity other than the bank deposit .
Jarrod the builder on Wednesday compared that the DIY at Bunning’s with the licensed builder is at best playing but most can’t do the serious building.
So too the capital you require for a lifestyle shouldn’t be delegated to DIY.
It’s too important for that.
These fund managers in all cases were as gray as we are.
Hence there is no rush yet to invest but invest we must as otherwise we outlive our money & rely on others. How much do you need for a 30 year holiday?
You are welcome to call on 07 3848 1088 or email or visit our websites
We read today that Robbie was a maths teacher as we were.
We now both coach & have some common background. [yes we did score in front of Miss World although Belinda probably doesn’t remember].
John McAuliffe
How long to go until this Volatility ends is the question participants in the ‘markets’ are asking at the moment.
That is why we did attend this week four presentations from those entrusted to manage billions of your dollars. Lets listen to those who probably know rather than read the headlines from the sub editors.
Hence we listened to four different fund managers this week & their estimates are we have up to another year of turmoil. This is also what Peter Q said in May.
Why? It is those European debts who have loaned monies to governments who are unable to pay their loans back. The total that European banks need to be recapitalised is 1.6 trillion according to one speaker on Tuesday. I.e. 1.6 x 10¹² .
In the US most banks have done so but not yet in Europe.
Banks too frequently have to be recapitalised which is another reason why they are trading lower as new shares will be offered at a discount to current prices.
We recall buying WBC @ 3.05 in 1980 & then when the late Kerry was wanting to buy them @ 2.50 we were concerned then. What percentage fall was that & what have they returned in dividends since then has been much appreciated?
Our first presentation also known as ‘death by PowerPoint’ opened with a slide of DJ’s opening on Boxing Day. Also now is a great time to buy prestige cars & vineyards.
That was a common theme by the fund managers. I.e. the markets are at a 30 year low. This of course doesn’t imply that they won’t go lower.
We also watch Sky Business & a common theme there is ‘ bearish’.
I.e. there is no great rush to ‘go long’ yet as the trend is still down.
Now is when a monthly averaging in amount is appropriate .
However lets be very aware that deposits in the bank at 6% won’t go to the capital you require to complete the gray lap in style.
Without reproducing the 50 line disclaimer which is at every presentation lets summarise.
• The 2010 – 2011 financial year All Ords return was 12% from 8% growth & 4% dividends.
• From 1983 to 2011 Average growth has been 7.5% with dividends 4% giving 11.5%p.a.
• These are well above bank deposit rates & ‘franking’ would add another 1%.
• As intuition suggests the longer the holding the less risk. There was no period longer than 7 years when returns were negative. This was over any period in last 100 years.
• The forward PEs @ 11 are still below the average of 14.8.
• Developing countries are driving growth & not the tired socialised West.
• Corporate Australian is strong with cash sitting on balance sheets.
• One fund manager participated in 650 company meetings. Does an individual do that?
• This fund manager visited Mongolia which is much closer to China than Australia.
• A selective view on commodities for iron ore, copper & thermal coal & oil.
• Currently Australian banks have lower growth but valuations are attractive.
• There are sound reasons why credit e.g. bonds should be in a portfolio. [legal right, capital position & more predictable income].
• This global income fund earned 9.8% over 1 year & the high yield fund 11.8%.
• Bonds & credit deserve an allocation in your portfolio. [we have suggested previously this to be your age]
• Bonds have a lower volatility with competitive returns.
• Bonds provide diversification & enhance income.
• Bonds provide a less aggressive way to achieve returns.
• The current banking funding risk is NOT the liquidity crisis of 2008.
• There is a slow growth fear due to long term debt
• The G7 countries have debt >70% GNP
• There are options to deleveraging & there are risks.
• Interest rates are dropping here & elsewhere.
• A small cap fund did 23% to 31 August which is in spite of volatility.
These are ‘bullet point’s & all can be expanded. However there is plenty of opportunity other than the bank deposit .
Jarrod the builder on Wednesday compared that the DIY at Bunning’s with the licensed builder is at best playing but most can’t do the serious building.
So too the capital you require for a lifestyle shouldn’t be delegated to DIY.
It’s too important for that.
These fund managers in all cases were as gray as we are.
Hence there is no rush yet to invest but invest we must as otherwise we outlive our money & rely on others. How much do you need for a 30 year holiday?
You are welcome to call on 07 3848 1088 or email or visit our websites
We read today that Robbie was a maths teacher as we were.
We now both coach & have some common background. [yes we did score in front of Miss World although Belinda probably doesn’t remember].
John McAuliffe
We wish to confirm that the plans insurer has admitted your Total & Temporary Disablement [TTD] claim
Dear Mr.
We wish to confirm that the plans insurer has admitted your Total & Temporary Disablement [TTD] claim for the period 31 July 2010 to 31 August 2011.
The calculation of your benefit is as follows
Total Gross payment for the period $63,462.75
31July 2010 to 31August 2011
Les PAYG tax $12,753.00
Net Benefit Payable $50,709.75
The amount of $50,709.75 has been deposited into your nominated account.To enable the insurer to further assess your claim please complete the following
Group Salary Continuance Progress Claim for 1 September 2011 to 30 September 2011
Please forward in the self addressed envelope attached.
Yes this is daily news for some person or family & helps do the job when your income ceases due to an accident or illness. In ‘Joseph’s’ case after a ‘minor’ stroke this is a major help in paying the mortgage & meals & all those other needs for the next year with maybe another extra year of payment.
Of course it never makes the ‘if it bleeds then lead’ headlines but huge sums, say Billions, are paid out per annum from the life industry.Hence the ‘What if’ it happens to you or me today?
Will the mortgage be paid?
What about the extra gap payments that the selfish medical system needs?
What about the rates, car bills, school fees, superannuation payments , carer & we could go on.
We welcome you to check out our websites i.e. www.wecoachwealth.com.au or www.wealthcoach.net.au where you can have an estimate on what the premium might be.
However a ‘quoting tool’ like all equipment needs experience & a license & there may be other needs or solutions to your problem.It is generally between 1% to 2% of your income or sum insured.
As our Young travel agent always said ‘if you can’t afford the insurance you can’t afford the trip’.
Welcome to call 07 3848 1088 or email or visit our websites for a Free initial chat.
Is that too hard?
Here to help you if we can & you wish
John McAuliffe
We wish to confirm that the plans insurer has admitted your Total & Temporary Disablement [TTD] claim for the period 31 July 2010 to 31 August 2011.
The calculation of your benefit is as follows
Total Gross payment for the period $63,462.75
31July 2010 to 31August 2011
Les PAYG tax $12,753.00
Net Benefit Payable $50,709.75
The amount of $50,709.75 has been deposited into your nominated account.To enable the insurer to further assess your claim please complete the following
Group Salary Continuance Progress Claim for 1 September 2011 to 30 September 2011
Please forward in the self addressed envelope attached.
Yes this is daily news for some person or family & helps do the job when your income ceases due to an accident or illness. In ‘Joseph’s’ case after a ‘minor’ stroke this is a major help in paying the mortgage & meals & all those other needs for the next year with maybe another extra year of payment.
Of course it never makes the ‘if it bleeds then lead’ headlines but huge sums, say Billions, are paid out per annum from the life industry.Hence the ‘What if’ it happens to you or me today?
Will the mortgage be paid?
What about the extra gap payments that the selfish medical system needs?
What about the rates, car bills, school fees, superannuation payments , carer & we could go on.
We welcome you to check out our websites i.e. www.wecoachwealth.com.au or www.wealthcoach.net.au where you can have an estimate on what the premium might be.
However a ‘quoting tool’ like all equipment needs experience & a license & there may be other needs or solutions to your problem.It is generally between 1% to 2% of your income or sum insured.
As our Young travel agent always said ‘if you can’t afford the insurance you can’t afford the trip’.
Welcome to call 07 3848 1088 or email or visit our websites for a Free initial chat.
Is that too hard?
Here to help you if we can & you wish
John McAuliffe
Do you thank Robbie
Do you thank Robbie?
Yes just maybe Robbie the coach could be a reason that the Wallabies won the Tri-nations for the first time in 10 years. Of course it can always be argued that playing @ home or a new captain or it was a damp ball that contributed to the result.
We certainly have seen some revolving doors recently in the AFL when teams don’t perform & the coaches are marched. Hence there is some correlation between coaches & results & the Arsenal recent result was a one off we hope.
As we do we have recently attended various professional seminars as that is an expectation of ourselves & clients to be able to provide not only the macro picture but also the micro. We could easily expand on each one but it was our last attendance at a technical seminar run by a major organization that really had us thinking.
The presentation had the theme how much better off clients will be after they have had financial advice.
So in the kit for that day which started with a disclaimer was a strategic update, a 160 page superannuation guide, a 46 page pocket guide& a regulatory insurance guide website.
These are all only summaries of Canberra red tape.
Now we used to love detail & our 1st degree is in Pure Maths. However this stuff is pure strangulation. At least with maths the rules doesn’t change.
However this stuff changes daily which is why 80% have no interest in their super as it is out of control.
Canberra is suggesting that clients be ‘player coaches’ & should be able to do their taxx returns on line & they shouldn’t need any coaching on all matters financial.
This could be on their possible largest asset which is their super or their biggest liability which is their mortgage or how do we retire on more than the pension or the ‘what ifs?’ of life.
How often does that work?
Whose benefit is in when the maximum taxx refund isn’t claimed or if there is a better taxx effective way to be paid?
Is there a better solution than a chook raffle after a personal tragedy?
Have you ever filled out a Centrelink form & how often do they want to be updated & what are the consequences?If the fallback is Canberra then that is the solution that only Canberra wants.
As the presentation discussed the major reason for advice is strategic.
One page of the presentation was that strategies are not ‘set & forget’.
• Strategies are meant to optimize your position
• They can be affected by changes in taxx, super & social security. I.e. Canberra
• Strategies can be affected by age, employment status & other variables
• Certainly cashflow affects all families & businesses.
As Robbie coaches it is the big picture which is reviewed on every Monday after the game & how to prepare for the next game. The details are then refined & acted on. As recent Wallaby events have shown there are always variables that should have been handled correctly.
As discussed previously preparation means the outcome should be better.
This means for you that at every financial decision some guidance is wise.
Isn’t your time & your money so valuable & important that you would not like to waste it.
A conclusion also made was that a review every second year did provide an improved outcome compared to those who ‘set & forget’.
I.e. there is a cost to not meet & review. Canberra is suggesting that clients opt in every second year. If they don’t then clients will be generally worse off in end benefits.
We will certainly opt in to opt out should clients opt out.
Peter this week is a believer in focusing on what he can control during times of market turmoil. This means concentrating on buying opportunities, keeping investment costs and taxes to a minimum --.
Other points in the article are
• to maximise super as you have to play by today’s rules
• focus on asset allocation [e.g. you could argue is your industry fund is balanced?]
• controlling the income flow of investments
• retiring latter as assets values have fallen. This means health is essential.
You might note ‘Having a takeaway coffee twice day costs Sydneysiders more than annual electricity bill | is a simple strategy.
Reviewing if your super bats for the other side is another idea when we read of misuse of union funds.
We have just been asked if Sandra was our dentist. As all know the dentist suggests every 6 months. The car requires a service every 6 months & if we recall correctly where Robbie’s grandstand is they require ‘road worthies’ every 6 months. Coaches need to on the training paddock with the players.
We suggested after the Tri Nations that maybe Robbie out coached the All Black coaches.
This week we have had very useful reviews which have generally settled any doubts.
Any communication is good & no communication builds up the negatives.
If you ‘are stuck’ & want to improve your financial game then you are welcome to call us on 07 3848 1088 or email us or visit our websites.
We promise that your time won’t be wasted & you will know more about your money.
It costs not to contact us & we are non- aligned & servicing clients for 27 years.
John McAuliffe
Yes just maybe Robbie the coach could be a reason that the Wallabies won the Tri-nations for the first time in 10 years. Of course it can always be argued that playing @ home or a new captain or it was a damp ball that contributed to the result.
We certainly have seen some revolving doors recently in the AFL when teams don’t perform & the coaches are marched. Hence there is some correlation between coaches & results & the Arsenal recent result was a one off we hope.
As we do we have recently attended various professional seminars as that is an expectation of ourselves & clients to be able to provide not only the macro picture but also the micro. We could easily expand on each one but it was our last attendance at a technical seminar run by a major organization that really had us thinking.
The presentation had the theme how much better off clients will be after they have had financial advice.
So in the kit for that day which started with a disclaimer was a strategic update, a 160 page superannuation guide, a 46 page pocket guide& a regulatory insurance guide website.
These are all only summaries of Canberra red tape.
Now we used to love detail & our 1st degree is in Pure Maths. However this stuff is pure strangulation. At least with maths the rules doesn’t change.
However this stuff changes daily which is why 80% have no interest in their super as it is out of control.
Canberra is suggesting that clients be ‘player coaches’ & should be able to do their taxx returns on line & they shouldn’t need any coaching on all matters financial.
This could be on their possible largest asset which is their super or their biggest liability which is their mortgage or how do we retire on more than the pension or the ‘what ifs?’ of life.
How often does that work?
Whose benefit is in when the maximum taxx refund isn’t claimed or if there is a better taxx effective way to be paid?
Is there a better solution than a chook raffle after a personal tragedy?
Have you ever filled out a Centrelink form & how often do they want to be updated & what are the consequences?If the fallback is Canberra then that is the solution that only Canberra wants.
As the presentation discussed the major reason for advice is strategic.
One page of the presentation was that strategies are not ‘set & forget’.
• Strategies are meant to optimize your position
• They can be affected by changes in taxx, super & social security. I.e. Canberra
• Strategies can be affected by age, employment status & other variables
• Certainly cashflow affects all families & businesses.
As Robbie coaches it is the big picture which is reviewed on every Monday after the game & how to prepare for the next game. The details are then refined & acted on. As recent Wallaby events have shown there are always variables that should have been handled correctly.
As discussed previously preparation means the outcome should be better.
This means for you that at every financial decision some guidance is wise.
Isn’t your time & your money so valuable & important that you would not like to waste it.
A conclusion also made was that a review every second year did provide an improved outcome compared to those who ‘set & forget’.
I.e. there is a cost to not meet & review. Canberra is suggesting that clients opt in every second year. If they don’t then clients will be generally worse off in end benefits.
We will certainly opt in to opt out should clients opt out.
Peter this week is a believer in focusing on what he can control during times of market turmoil. This means concentrating on buying opportunities, keeping investment costs and taxes to a minimum --.
Other points in the article are
• to maximise super as you have to play by today’s rules
• focus on asset allocation [e.g. you could argue is your industry fund is balanced?]
• controlling the income flow of investments
• retiring latter as assets values have fallen. This means health is essential.
You might note ‘Having a takeaway coffee twice day costs Sydneysiders more than annual electricity bill | is a simple strategy.
Reviewing if your super bats for the other side is another idea when we read of misuse of union funds.
We have just been asked if Sandra was our dentist. As all know the dentist suggests every 6 months. The car requires a service every 6 months & if we recall correctly where Robbie’s grandstand is they require ‘road worthies’ every 6 months. Coaches need to on the training paddock with the players.
We suggested after the Tri Nations that maybe Robbie out coached the All Black coaches.
This week we have had very useful reviews which have generally settled any doubts.
Any communication is good & no communication builds up the negatives.
If you ‘are stuck’ & want to improve your financial game then you are welcome to call us on 07 3848 1088 or email us or visit our websites.
We promise that your time won’t be wasted & you will know more about your money.
It costs not to contact us & we are non- aligned & servicing clients for 27 years.
John McAuliffe
Our one is smaller than your one!
Our one is smaller than your one!’ is the inference that some advertising regarding your superannuation fees makes.
But that is only part of the story.
What about the returns of the funds ,say balanced or growth or other, you are invested in.
Just maybe they too are smaller than our one.
It is usual to declare that ‘our one is bigger than your one ‘& this they have not been doing so.
So as is usual the big guys tell the biggest furbies.
What is of concern to you is the net return to you after fees.
It is the return that matters.
They may have on their sites the facility to compare fund fees.
However they do not have the facility to compare your net returns of the thousands of funds after fees have been deducted.
These returns can be calculated over various time frames which can provide you with a fair comparison on how your net fund return is performing.
So what is available.
We have the facility to compare funds types, many markets & many individual portfolios for you.
We have available the features & benefits comparison of 190 Australian funds which are the major industry, corporate, government, retail personal & employer funds.
This comparison can provide dollar for dollar comparison based on investment options & platforms.
A report of your fund comparison can be printed off.
Just suppose for the moment that your fund returns are smaller than others available. What is that going to cost you over your remaining working life.The market & competition is reducing fees between funds but it doesn’t do that for funds. That is where a fund comparator could be very worthwhile for you.
It may be very worth
while to have your fund, be it industry or a bank or any other fund compared. This will at least provide some peace of mind for you as it could even be your most important asset.
Of course there is more to it than just comparing funds. Maybe some other coaching & financial advice may leave you better off.
It is too important not to call us & compare your funds or not listen to advice or not make a plan.
Welcome to call us on 07 3848 1088 or email or visit our websites
John McAuliffe
But that is only part of the story.
What about the returns of the funds ,say balanced or growth or other, you are invested in.
Just maybe they too are smaller than our one.
It is usual to declare that ‘our one is bigger than your one ‘& this they have not been doing so.
So as is usual the big guys tell the biggest furbies.
What is of concern to you is the net return to you after fees.
It is the return that matters.
They may have on their sites the facility to compare fund fees.
However they do not have the facility to compare your net returns of the thousands of funds after fees have been deducted.
These returns can be calculated over various time frames which can provide you with a fair comparison on how your net fund return is performing.
So what is available.
We have the facility to compare funds types, many markets & many individual portfolios for you.
We have available the features & benefits comparison of 190 Australian funds which are the major industry, corporate, government, retail personal & employer funds.
This comparison can provide dollar for dollar comparison based on investment options & platforms.
A report of your fund comparison can be printed off.
Just suppose for the moment that your fund returns are smaller than others available. What is that going to cost you over your remaining working life.The market & competition is reducing fees between funds but it doesn’t do that for funds. That is where a fund comparator could be very worthwhile for you.
It may be very worth
while to have your fund, be it industry or a bank or any other fund compared. This will at least provide some peace of mind for you as it could even be your most important asset.
Of course there is more to it than just comparing funds. Maybe some other coaching & financial advice may leave you better off.
It is too important not to call us & compare your funds or not listen to advice or not make a plan.
Welcome to call us on 07 3848 1088 or email or visit our websites
John McAuliffe
Who do you know is next for Aged Care?
Who do you know is next for Aged Care?
Yes aged care is staring us in the face & as we have mentioned before it is a minefield. So much so that the productivity commission has just written a report ‘Caring for Older Australians’ & writes ‘the opaqueness of the system’.
Hence the current rules will be rewritten which happens in all games.
Michael S wrote on 16th August 16, 2011 of ‘it must make baby boomers pay more of their aged care bills.
So its countdown for you & I. How can we prepare for it? Yes having the funds is important & having the knowledge to prepare for it minimises your downside.
Remember Proper Preparation Prevents Piss Poor Performance.
Let’s look at some of the framework in Aged care as they stand @ August 2011.
The first step is to be assessed by ACAT [Aged Care Assessment Team].
ACAT assess & approve what kind of care will best suit your needs when you can’t manage at home without assistance.
There are two broad types of residential Aged care & the facilities offered can vary.
1. Low level care as hostels providing accommodation & personal care.
2. High level care nursing homes providing continuous care for those who are frail.
What are the Fees & Charges?
After classification into Low Level care then there is an Accommodation bond where the maximum can be all your assets minus $39,000.
This can be paid as a lump sum or periodically where the facility charges 9% or a combination of both. Out of this refundable bond the hostel can retain $3816 p.a. for 5 years.
This accommodation bond is exempt from Centrelink asset & income tests.
This is when it is important to seek advice before selling the family home.
In general when you enter aged care if your spouse remains in the home then the home is exempt from the Centrelink assets test.
If there is no spouse in the home then the home is not included as an asset for 2 years. The net rent is not assessable if the bond or charge is paid periodically.
I.e. if you sell the home it becomes an assessable asset. [this is the subject of the productivity report.
Then there are daily fees which are a basic daily fee and an income tested fee & an extra service fee.High level nursing home fees have a daily charge depending on your assets.
As above if your assets are less than 39,000 then there is no daily charge. Above $102,544 then the daily charge is 30.55. [August 2011]. In between it is [Assets -39,000] / 2080 = ?
What happens to the family home when assessed? It will be included as an asset unless
• A spouse or dependent child is living there
• or a carer eligible for income support for 2 years
• or a close relative eligible for income support for 5 years
This assets assessment is different from the Centrelink assessment.
What are the daily fees?
The standard resident contribution or Basic fee is 84% of the pension & currently 40.25 daily if non pension income <9,971 or for a couple 19,006. [there are variances on these.]
There is an income tested fee in both high & low level care. & has a daily maximum of 64.69.
This is calculated as [Total assessable income - total assessable income free area] X 5/12
Generally an Income free area is 22,045 for singles & 21577 each for couples.
If we were having this discussion in three years time & you were looking back over those three years what needs to have happened both personally & professionally for you to feel happy with your progress.
Hence you have an opportunity to reduce your total assessable income by utilising some planning & coaching.
There are strategies for this & you are welcome to contact us o 07 3848 1088 or email info@wealthcoach.net.au
A suggestion that maybe relevant for some is the use of various long term income streams.
As these may have a return of portion of your capital then you can reduce your assessable income down by this return of capital. Hence your income tested daily fees are reduced but not your income. These income streams can be tailored for you & hence are very flexible in their design for you.
John McAuliffe
Yes aged care is staring us in the face & as we have mentioned before it is a minefield. So much so that the productivity commission has just written a report ‘Caring for Older Australians’ & writes ‘the opaqueness of the system’.
Hence the current rules will be rewritten which happens in all games.
Michael S wrote on 16th August 16, 2011 of ‘it must make baby boomers pay more of their aged care bills.
So its countdown for you & I. How can we prepare for it? Yes having the funds is important & having the knowledge to prepare for it minimises your downside.
Remember Proper Preparation Prevents Piss Poor Performance.
Let’s look at some of the framework in Aged care as they stand @ August 2011.
The first step is to be assessed by ACAT [Aged Care Assessment Team].
ACAT assess & approve what kind of care will best suit your needs when you can’t manage at home without assistance.
There are two broad types of residential Aged care & the facilities offered can vary.
1. Low level care as hostels providing accommodation & personal care.
2. High level care nursing homes providing continuous care for those who are frail.
What are the Fees & Charges?
After classification into Low Level care then there is an Accommodation bond where the maximum can be all your assets minus $39,000.
This can be paid as a lump sum or periodically where the facility charges 9% or a combination of both. Out of this refundable bond the hostel can retain $3816 p.a. for 5 years.
This accommodation bond is exempt from Centrelink asset & income tests.
This is when it is important to seek advice before selling the family home.
In general when you enter aged care if your spouse remains in the home then the home is exempt from the Centrelink assets test.
If there is no spouse in the home then the home is not included as an asset for 2 years. The net rent is not assessable if the bond or charge is paid periodically.
I.e. if you sell the home it becomes an assessable asset. [this is the subject of the productivity report.
Then there are daily fees which are a basic daily fee and an income tested fee & an extra service fee.High level nursing home fees have a daily charge depending on your assets.
As above if your assets are less than 39,000 then there is no daily charge. Above $102,544 then the daily charge is 30.55. [August 2011]. In between it is [Assets -39,000] / 2080 = ?
What happens to the family home when assessed? It will be included as an asset unless
• A spouse or dependent child is living there
• or a carer eligible for income support for 2 years
• or a close relative eligible for income support for 5 years
This assets assessment is different from the Centrelink assessment.
What are the daily fees?
The standard resident contribution or Basic fee is 84% of the pension & currently 40.25 daily if non pension income <9,971 or for a couple 19,006. [there are variances on these.]
There is an income tested fee in both high & low level care. & has a daily maximum of 64.69.
This is calculated as [Total assessable income - total assessable income free area] X 5/12
Generally an Income free area is 22,045 for singles & 21577 each for couples.
If we were having this discussion in three years time & you were looking back over those three years what needs to have happened both personally & professionally for you to feel happy with your progress.
Hence you have an opportunity to reduce your total assessable income by utilising some planning & coaching.
There are strategies for this & you are welcome to contact us o 07 3848 1088 or email info@wealthcoach.net.au
A suggestion that maybe relevant for some is the use of various long term income streams.
As these may have a return of portion of your capital then you can reduce your assessable income down by this return of capital. Hence your income tested daily fees are reduced but not your income. These income streams can be tailored for you & hence are very flexible in their design for you.
John McAuliffe
what is a hangover Dad?
What is a hangover, Dad?
‘What is a hangover Dad’ was the question we were asked during our school run this morning. As ‘it wasn’t me’ as 2 beers after a run doesn’t do that we were remiss to ask ‘why do you ask?’.
However It did give us the opportunity to provide some analogies & connect them with some lessons to be learnt. But do we learn & those who might have suffered a 2nd hangover & even sworn off it sometimes don’t.
This is what the markets are suffering at present. Not of course those European politicians who were on their sacrosanct August holidays when decisions were needed to be made.
So the markets have had a riot of a party. We can only sympathise with those English Bobbies after teaching maths in North London in 1975 & 1976.
Why is the electorate so mad at present. Why would there be a riot of a poll if it was held today. Simply because all that is wrong in Europe we are seeing here. The English are taking their medicine after laboring with a government which was turfed out because they were very browned off. Just compare what Brown sold gold at then & the 1800p.oz it is today.
Now the rest of Europe is having its hangover & unfortunately when others have hangovers you don’t want to be around. This could be a long hangover as the European banks as Peter Q from Bell Potter suggested in April haven’t yet ‘dried out’ or recapitalised as they need to do.
Peter Q was also optimistic on next year & demonstrated with a template that this was ‘normal volatility’. He also suggested 15% correction & we may well have suffered more than that but it was fair guideline.
Very simply the party where we have Big Brother government provided the cheap plonk & the banks the cheap debt is over. It’s now back to individual responsibility where you are in charge of your destiny. It’s your choice whether to drink or not.
As coach Robbie Deans has pointed out & what the Wallabies didn’t do on last Saturday night ‘you must play what is in front of you’ & ‘you must earn the right & confront’ before going sideways. We understand at least two of those All Blacks have no hangovers as they intend to have a bigger party [maybe] in October.
Self discipline is what Dad would like a child to practice although we can’t be a spoil sport or ‘train cats’.
The electorate is mad because they have been ‘on the wagon’ for 3 years & the poll dancers & the ‘taxx & confiscate’ haven’t.
Why are there so many anti Red Queen emails circulating?
The secessionists in WA have been arguing so for a long time.It was scary to be advised that the IRS want to know [‘Important changes to US tax documentation processes. Due to changes made by the Internal Revenue Service (IRS), clients now need to submit their own tax documentation if they hold securities that pay U.S. derived income.
Read more...’]
There is a lesson here to be read & we suggest 1984 is a good read.
Cash & gold & basic common sense may well be kings.
As Dads do we need & try to be exemplary. It is time our elected leaders do the same. As individuals & companies most are behaving & reducing down debts & saving cash & staying out of DJs.
Is it now a better time to ‘Now when we say we have a deal, we mean we have a deal and today we have what could be THE BEST PRICED CENTRAL OTAGO PINOT NOIR IN AUSTRALIA, IF NOT THE WORLD, PRODUCED by AWARD WINNING winemaker Ant Moore the, Row 88 Central Otago Pinot Noir 2009. AT UNDER HALF OF ITS NORMAL PRICE FOR JUST $9.99 (DON’T PAY $25.99) this is one of those deals that even we find hard to fathom but get in quick as once word gets out that we have a Pinot Noir from NZ’s if not the world’s finest Pinot growing region Central Otago!
This above email just arrived & although tempting we will resist at least until October when those two AB forward abstainers might have a better excuse for a party.
DWM did indicate to us on Tuesday ‘I am going to be away for 2 months. While I'm away, use your discretion to invest some of my cash fund.’
Bret suggested today ‘Might buy this morning & sell this arvo & then invest the profits into some CFD's in currency for overnight, so I can make a fortune even when I go to bed. Can't possibly see how that could go wrong.’
We will resist all at least until October& you are welcome to call us on 07 3848 1088 or email us or visit our websites.
It’s HW time or practice before the next big game. Does your portfolio have the longevity for a full game.
When we ‘wake’ up we might find Big government is broke & can’t afford to party or pay your Ponzi scheme pensions any longer.
John McAuliffe
‘What is a hangover Dad’ was the question we were asked during our school run this morning. As ‘it wasn’t me’ as 2 beers after a run doesn’t do that we were remiss to ask ‘why do you ask?’.
However It did give us the opportunity to provide some analogies & connect them with some lessons to be learnt. But do we learn & those who might have suffered a 2nd hangover & even sworn off it sometimes don’t.
This is what the markets are suffering at present. Not of course those European politicians who were on their sacrosanct August holidays when decisions were needed to be made.
So the markets have had a riot of a party. We can only sympathise with those English Bobbies after teaching maths in North London in 1975 & 1976.
Why is the electorate so mad at present. Why would there be a riot of a poll if it was held today. Simply because all that is wrong in Europe we are seeing here. The English are taking their medicine after laboring with a government which was turfed out because they were very browned off. Just compare what Brown sold gold at then & the 1800p.oz it is today.
Now the rest of Europe is having its hangover & unfortunately when others have hangovers you don’t want to be around. This could be a long hangover as the European banks as Peter Q from Bell Potter suggested in April haven’t yet ‘dried out’ or recapitalised as they need to do.
Peter Q was also optimistic on next year & demonstrated with a template that this was ‘normal volatility’. He also suggested 15% correction & we may well have suffered more than that but it was fair guideline.
Very simply the party where we have Big Brother government provided the cheap plonk & the banks the cheap debt is over. It’s now back to individual responsibility where you are in charge of your destiny. It’s your choice whether to drink or not.
As coach Robbie Deans has pointed out & what the Wallabies didn’t do on last Saturday night ‘you must play what is in front of you’ & ‘you must earn the right & confront’ before going sideways. We understand at least two of those All Blacks have no hangovers as they intend to have a bigger party [maybe] in October.
Self discipline is what Dad would like a child to practice although we can’t be a spoil sport or ‘train cats’.
The electorate is mad because they have been ‘on the wagon’ for 3 years & the poll dancers & the ‘taxx & confiscate’ haven’t.
Why are there so many anti Red Queen emails circulating?
The secessionists in WA have been arguing so for a long time.It was scary to be advised that the IRS want to know [‘Important changes to US tax documentation processes. Due to changes made by the Internal Revenue Service (IRS), clients now need to submit their own tax documentation if they hold securities that pay U.S. derived income.
Read more...’]
There is a lesson here to be read & we suggest 1984 is a good read.
Cash & gold & basic common sense may well be kings.
As Dads do we need & try to be exemplary. It is time our elected leaders do the same. As individuals & companies most are behaving & reducing down debts & saving cash & staying out of DJs.
Is it now a better time to ‘Now when we say we have a deal, we mean we have a deal and today we have what could be THE BEST PRICED CENTRAL OTAGO PINOT NOIR IN AUSTRALIA, IF NOT THE WORLD, PRODUCED by AWARD WINNING winemaker Ant Moore the, Row 88 Central Otago Pinot Noir 2009. AT UNDER HALF OF ITS NORMAL PRICE FOR JUST $9.99 (DON’T PAY $25.99) this is one of those deals that even we find hard to fathom but get in quick as once word gets out that we have a Pinot Noir from NZ’s if not the world’s finest Pinot growing region Central Otago!
This above email just arrived & although tempting we will resist at least until October when those two AB forward abstainers might have a better excuse for a party.
DWM did indicate to us on Tuesday ‘I am going to be away for 2 months. While I'm away, use your discretion to invest some of my cash fund.’
Bret suggested today ‘Might buy this morning & sell this arvo & then invest the profits into some CFD's in currency for overnight, so I can make a fortune even when I go to bed. Can't possibly see how that could go wrong.’
We will resist all at least until October& you are welcome to call us on 07 3848 1088 or email us or visit our websites.
It’s HW time or practice before the next big game. Does your portfolio have the longevity for a full game.
When we ‘wake’ up we might find Big government is broke & can’t afford to party or pay your Ponzi scheme pensions any longer.
John McAuliffe