What Catherine said that Joe & Tony & you & I should note.




So let me now turn to three public policy areas that exemplify the degree of change required: health, education and the retirement income system.’
That is what we always tend to do - we begin with a solution, like a price signal, or a fee change, or an eligibility change, and it's the wrong place to start.
We have to start by asking ourselves “what is the problem we are trying to solve, what outcomes are we seeking and what do we want to move from and to?”
If we do not adopt this architecture in our approach to the big policy issues, we will continue to have the community reject what they perceive to be disconnected and short sighted interventions.

Health – Philosophical Shifts
In health, we need to change the mindset from one of fixing people when they are sick, to enabling them to stay healthy for as long as possible.
Put bluntly, the focus needs to shift from the second 50 years of life, to the first 50 years; that is, preventing the things that are preventable and preserving constrained resources for those which are not.

Education – Philosophical Shifts
Turning now to education and training.
We must move away from the notion that work is something we begin after a long period of study, to one where work is integrated with learning.
Given that an estimated 75 per cent of the fastest growing occupations, including those in the creative industries and humanities, will require STEM related skills and knowledge, the imperative for introducing these foundational skills into the primary and pre-primary curricula should be unassailable.
By STEM skills, I mean maths and science, yes, but also computer coding, computational thinking, problem solving and design thinking.
As it stands in Australia, however, the gap between the digital literacy of our young people and that of our competitor nations is increasing.

Retirement Income
Finally, on the so-called retirement income system, the philosophical shift we need is to rethink the current concept of retirement.
This means a paradigm shift about people working longer and training later in their life as the types of jobs available, and the type of work they can do, change.
The role of government would be to provide an adequate safety net, but more importantly to assist people to become, and stay, independent by fully participating in the economy.

Leadership
In the first instance, however, the leadership  must come from our elected representatives, and this includes the opposition, minor parties and independents, who are all part of our governance structure.
The role of these representatives is to provide leadership, not to be re-elected.
It must be leadership characterised, not by positional power and, as Jennifer Hewitt notes “a preoccupation with the political present, but by strong personal values, consistency, respect and transparency.”


The full article in front of the Press Cub in Canberra on 29th April 2015 is very worthwhile reading by You & I & we trust Tony & Joe were there & listened to Catherine.

Can Australia take the adult step that the UK just showed in their recent election?

We viewed Country House Rescue on Sunday where Simon the business advisor was invited in for his advice. It wasn’t taken & Francis the Failure will be remembered as losing for the family 400 years of history & wealth. His F*** language was not cut as it emphasized his frustration & unwillingness to bend.

Will you Listen?

Lets preserve & increase our self reliance.

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.

If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.
As others do call us on  07 3848 1088 or email  or visit our new website

John McAuliffe



Compare your two supers.




We had the occasion this week to compare two supers as Shane* intended to switch into arguably a low cost fund  where is his  work super is. 

I.e. Shane* was under the illusion that low cost means it must be better. 

 He had seen the advt. which suggests that our one is smaller than your one.

This could very well be true.

As an adviser we are expected  & it is our mission to provide benchmark advice.

In fact Shane* pays us to do so

So we accessed a comparative tool that we subscribe for to help our clients make considered decisions.

We produced this comparison of their performances 

Performance data
as at date
28 Feb 2015
28 Feb 2015
3 month
6.20%
11.62%
1 Year
15.26%
18.24%
3 Year % p.a.
12.59%
22.39%
5 Year % p.a.
9.92%
13.72%
* After tax and fees
Which fund would you select?

On the comparison chart we also produced a fee difference chart  & yes there is a fee difference. But it is not ~4%.
APIR
N/A
N/A
Asset type
Multi-Asset
Equity
Subregion
Australia
Australia
Multi-manager
Yes
No
Management fee**
0.30
0.99
ICR**
0.63
0.99
Buy/sell spread*
0
0.30
Mercer Capability Rating
N/A
B+ (P)
Fee Ranking
Not calculated
Not calculated
Fund Status
Open
Open
As you might observe these are different types of funds as we are unclear what fund Shane* was churning to. As it wasn’t under our advice & his own choice then it is likely to be the default fund.

Shane* now has all the facts so that he can make a judgement call. 
It is his call but as in the real world performances count.

Nothing has changed & you get what you pay for.

We have seen plenty of noise regarding the care of big institutions. Recall it is the big guys that that tell the big lies which is why they are so big.

Yes if you are considering switching then yes we can provide you with a full comparison between funds. 

Just ask us how on 07 3848 1088 or email or our websites.

As Mark* who has 1.5m in cash today said he wants & expects honest advice. If he should not proceed then he expects to be told. He ‘does not want yes men’.

We had James just call us. We helped him in last two years stay afloat by accessing his super. If you are like James & over 55 & need some guidance that you too could call us. 

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.

If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.


John McAuliffe

We woke up in the middle of the night about our advice to you’.



We woke up in the middle of the night about our advice to you’.
Yes that is what we said to Anthony* when we were presenting our advice document SOA to him this week.
Anthony* replied that as he didn’t want to wake up at night considering his financial  situation then that is what we are for. He wanted to meet at ‘trigger points’ and his birthday was one.

We also read this from a global health  newsletter  that all should subscribe to  as your health is even more important than your wealth.

The leading causes of stress for Americans are financial concerns, beat out work, family responsibilities, and even health concerns.


We just want & Anthony* expects us to optimise his position & have his best interest in our advice.
He called it the end game but we trust that is some time away.

We advised a tune up for him which in summary is this
Cost Savings

  • You will reduce your administration costs of your overall superannuation portfolio by $446 p.a.
  • Implementing this strategy will reduce your personal tax payable position by $2,250 therefore providing surplus funds in the first year of $2,250 to further reduce your mortgage.
  • Your superannuation will be moved into a tax-free environment.  Based on current legislation, earnings generated by your underlying investments whilst in the accumulation phase of superannuation are taxed at 15% whereas in the pension environment, earnings are 100% tax-free. This will result in significant annual savings within your pension account.  For example, based on a 4% annual income return within the pension account you will have tax savings of approximately $900 p.a. within this account.

 And
Manage Your Debts in an Effective Manner
·         You will reduce the term of your loan by one year.
·         You will reduce your interest paid over the life of the loan by $1,503
·         ‌The sooner you are able to reduce or eliminate your liabilities, the sooner you are able to create wealth to eventually provide for your retirement.

What is the total over the next 10 years although we will achieve even more when he turns 60?

We also had Margaret* call us from our website.  She had never seen a financial adviser before & after our conversation  she should have years ago.

Listening to her outflow on banks, tenants & investment properties suggest to us that if she had seen us or another financial adviser [note many property floggers call themselves that]years ago then she wouldn’t be having this stress.

As we have said to others ‘we share the load’ but in Margaret’s* case we may be too late to do  much.
Margaret* has made the hard call to call us & we have the impression that there are so many like her out there. When they,  the baby boomers, who have these so called investment properties all start to sell then just maybe the time to buy property but generally the income from residential property is a net 2% and 8% are sold at a loss.

What is that going to do to bank share prices & hence the ASX?

Then there was our police inspector Robert*  client today who is very concerned in the next budget that all superannuation will in the future be an income stream. Yep, that is very possible & hence another reason if you are over 55 to have a chat here.

We suggested to him that he would probably be fine but for his children we better plan something else as we have actioned for him outside super.

We had William* this week call us & ask us to pick him up from the cruise ship & drop him on the Gold Coast. Yep this adviser & we guess other advisers did that even though very certainly not family. You don’t read that in the media.


We read just now from the school newsletter

It seems that everyone agrees that school communities should have some sort of covenant, vision, mission, philosophy, or values to guide their work

And

Personalities and cultures are formed by values because, quite simply, values state what is important to individuals or businesses’.

What was the lost sleep over?

It was the decision do we use his new pension to reduce his mortgage by the maximum or minimum amount?. 

Do we reduce his retirement amount or his DEBT?

What would you do for yours?

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.

If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.

As others do call us on 07 3848 1088 or
email us or visit our websites.

John McAuliffe