yes we have 'copied & Pasted' from a fund manager & a global insurer but it is very relevant for you today

 

Retirement means something different to everybody. For some it means having more time to spend with family and watch their grandchildren grow, and for others it could mean taking the overseas trip they’ve always dreamed of or hitting the road to expand their horizons.

However, the one thing that everyone approaching retirement has in common is, that the choices you make today about your superannuation fund will ultimately determine whether or not your retirement goals become reality.

This is not always as simple as it sounds.

Did you know…

Almost half of Australians aged 45 years and over expect their main source of personal income in retirement will be from a superannuation, annuity or allocated pension plan?

Yet when you look at the actual position of retirees in this age group, two thirds currently receive government pension as their principle source of retirement income, with just 15 per receiving their main source of retirement income from a superannuation, annuity or allocated pension plan^[1]. 

That’s a huge gap between Australians’ goals and the reality of their retirement.

And with current fortnightly age pension rates just $782.20 for singles and $1,179.20 for couples, you need to ask yourself – are my current super contributions enough to ensure my retirement reality will be as close to my goals as possible?

To make sure you’re getting the most out of your final working years, provided the following seven tips to boost your super savings and help live the retirement of your dreams.

1. Increase your regular investment or make one-off payments

A little bit now can mean so much later, so making regular super contributions is a great way to boost your nest egg. Once you have made your initial contribution there is no minimum additional contribution required.

You can increase your current regular investment or make a one-off payment by mail, BPay or direct debit.

2. Beware contribution caps

Before making additional contributions, ensure you’re aware of how much you’ve already contributed that financial year so your caps aren’t breached. Caps are applied to the total amount of contributions made across all superannuation funds, not just limited to a single one.

For more information on the Concessional and Non-Concessional Contribution Cap click here.

3. Government Co-contribution

By making a personal (non-concessional) contribution, you may be eligible for the Government Co-contribution. That means the Federal Government may contribute up to 50 cents for every dollar you put towards your own superannuation (capped at a maximum of $1000 per year).

To find out if you’re eligible for the Government Co-Contribution click here.

4. Spouse contributions

 Contributing super on behalf of your spouse is a very tax-efficient way for a couple to save for retirement. If your spouse is eligible, either by not working or earning less than $10,800 per year, you can contribute to their super and receive a tax offset of up to $540 each financial year – reducing your tax payable.

The good news is there is no limit to the amount you can contribute to your spouse’s super, however you can only claim a tax offset of 18 per cent on up to $3000 of spousal contributions (where they earn less than $10,800). Keep in mind that there may be tax implications if caps are breached.

The  Superannuation Plan accepts a wide variety of superannuation contributions, including those on behalf of your spouse. For more information speak to your financial adviser.



5. Consolidate your super and consolidate your future

The Australian Tax Office estimates that there is $16.8 billion in unclaimed super in Australia today. Is some of it yours?

Losing track of various super funds over your life could mean you have to remain in the workforce longer because you haven't gained the full investment benefits of your funds. So taking a just few minutes to consolidate your super accounts could be the different between your retirement goals and actually living out your retirement dream.

Keep track of the different employers you have had over the years. Often when you leave a job, your superannuation remains in that employer’s chosen fund or is rolled over into an eligible rollover fund.

By making sure you know where all your super is kept and consolidating it into one account, you can help build your retirement savings faster and adopt a much more focused strategy. Plus – you’ll save on paperwork.

To consolidate your super accounts, call John McAuliffe on 07 3848 1088

6. Salary sacrifice

For individuals who earn more than the threshold for Government Co-contributions or spouse contributions, salary sacrificing into your superannuation may be a good option.

Salary sacrifice simply means that if you earn more than $37,000 per year, you can nominate part of your pre-tax income to be paid directly into your super account by your employer. Your reduced salary then becomes your income for tax purposes.

7. Work with your financial adviser

Of course, everyone has their own unique retirement expectations so it is important to assess the previous six strategies according to your own individual circumstances. This may seem daunting – especially for those who are relatively unfamiliar with the superannuation process and which options may be best for them. This is where speaking with a professional financial adviser can help.

Your financial adviser may be able to assist you by:

• Answering any questions you have on these various strategies;
• Assessing your individual financial position;
• Discussing your investment risk profile to determine if your current exposure to various asset classes (e.g. shares, fixed interest, listed properties) is still appropriate;
• Identifying your insurance, investment and retirement needs;
• Highlighting appropriate tax-effective strategies and asset allocation models; and
• Structuring solutions to meet your individual needs and objectives.

as others do & before you forget call us on 07 3848 1088 orThis email address is being protected from spambots. You need JavaScript enabled to view it.or reassure your self on our websites

John McAuliffe

 

We read today that 900,000 will have dementia by 2050 so before we do then there are some matters that need to be attended.

It was a very recent Masterclass that we attended that emphasised legal matters.

It is a given that around 50% of the population die intestate.

i.e. without a will & hence there is a bigger cost that need be.

We read ‘there's been an "explosion" of these bloodsuckers. There is now one of these wretched creatures for every 383 human New Zealanders. A generation ago, it was one to 681, so in our darkest hours we are twice as likely as our parents to find one of these parasites attached to our purses and wallets. More here

Yes there were eight of them including 2 judges in my class & we know at least one of them would prefer to live in Brazil. Yes he is conveyancing & hence as others are not ‘the no win no fee’ brigade

Then there are other stories that we all read about.

‘The last few years clearly shows that super fund death benefits are a new and lucrative river of gold for solicitor’.

‘These death benefits are often sizeable sums of money and are also relatively easy to attack because most people take inadequate steps to protect their super, as several court cases demonstrate’ .More here

And more recently

The children of former NSW premier Neville Wran have settled a case over their late father’s dollar estate. It was worth battling over 40million. More here.

And again

Victorian bushfires

‘Top partners in a leading law firm have pocketed more than $16m, but the victims are yet to receive a cent.’ More here

And again ‘Lawyers sitting on $25m soy compensation’ More here

Yes a lawyers picnic but does that need to be the case.

BUT 9/4/16

‘Troubled law firm Slater & Gordon is looking at ways to cut costs as it continues to negotiate with financiers.‘

Slater & Gordon has drafted in corporate adviser Grant Samuel. More here

No sympathy!!

Our estate lawyer client Doug* has told us’

‘When we first meet they love us & later when we present the bill they hate us’

As always & yes trite but true.

Perfect preparation & prevention prevents soliciting seagulls having such picnics at your expense.

As always there is a first step & hence a global financial company suggested

With an ageing population and increasing divorce rates, the demand for estate planning solutions is sure to grow rapidly in both the short and long-term.

To assist you to have a make a start then here is a link that you can use which maybe more cost effective than a solicitors ‘6 minute clock’.

Note: We are as you gather definitely NOT solicitors.



Now onto ‘Doodads’ which is a term we were reminded of whilst playing ‘the Cashflow game’ this week. It also means tutoring our family in some basic accounting and cashflow subjects.

Doodads are just the bills that arrive. In our case it was the rates yesterday which followed the dental surgeon’s invoice. It is those bills which upset your cashflow. As the game shows too many of those recurring bills can leave you ‘out of the game’

Yes we can meet the small bills but not the big one.

So we repeat as we do.

Do you have a month’s income handy if you are laid off today as others were or if the roof leaks or any other ‘doodads’ that you can visualise?

Last year we had told Rose* who took our family on holiday that there was to be no quad bike riding & today we are reminded why. There has been a Landline story on this them in the past.

Of course health is the big Doodad & that means years of perfect Prevention.

Just NOW we read from Robert Kiyosaki’s Prediction of 2016 Market Crash

Question: What is the job of a prophet?

Answer: To be wrong.

Before you join the 900,000 & forget you can contact us today  on 07 3848 1088

or This email address is being protected from spambots. You need JavaScript enabled to view it.or  check us out on our websites.

Take our 5 minute financial check up.


Simply we put certainty into your financial life & as a past maths teacher we like to solve your financial problem so that you are better off in three years time.

As client Sue stated ‘we now feel in control’



John McAuliffe



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Crowd funding into  the Kidman station?

Yes a new concept in property has just arrived &  it is worth a serious look.


The problem we have with so called investment property is that there is a huge loan  & you must take advice from the professionals who flogged this concept to him.


We are very aware as we have been offered the 25,000 & never taken on selling a new house.



We were introduced to this new concept at our recent Professional Development day.


What is Fractional Property Investing?


It appears to us to be a version of 'crowd funding'.

The Kidman Station which is for sale is being considered using this concept.

Read more


I.e. You & other investors who maybe your contacts decide to invest in a property which maybe commercial or retail or residential or industrial.


There is an ASIC approved book build process to facilitate the initial property purchase.


You choose who will be your property adviser to advise on the  initial property.


The property is managed by  independent  accredited property managers who are paid out of the gross rent. They arrange tenants, maintenance & rent collection.


As we are all aware  property is a larger sum than many have. i.e. 500,000 to 1 million or many millions.


An 'investor' who does have that in house equity but then risks of increasing rates or no tenants west of anywhere or loss of his income to meet the negative cashflow is only casually mentioned.


His house equity can disappear in a very over priced market  & in his case over valued property.

Remember at least 8% of all property is sold at a loss even before the high costs of selling.

in fact at a 'property investment seminar' last week we heard Nic the speaker state that

he most often buys from negatively geared investors who have to sell because of redundancy or other reasons.

he offers 20% less than house valuation.


Most should not & can't borrow because the family needs to live but he wants real property & not listed REITS.

I.e. direct property without borrowing.


The solution is investing into a first ever segregated property trust where each property is contained within a sub fund.


One of the biggest drawbacks to unlisted or real property is it is NOT liquid.

I.e you cannot sell off the back steps if you have a sudden need for funds.


However this concept  has a secondary market of other unit holders or other investors as it has 'make a market' Authorisations.


These sub funds have 5 year terms & requires a 50% vote to renew.


At any time unit holders can vote to wind up a fund & that requires a 75% agreement.


Then there is all the outsourced due diligence & administration done on behalf of investors. There is a simple end of year reporting  process.


The fund is low cost compared to the alternatives i.e. 0.8% on property & 0.2% on cash.

Ok that  is an introduction to a new concept to property investing.


I.e. investing without the need for any borrowing & with better liquidity without the risk attached to listed property trusts.


We comment that  it is now on our Dealer's Approved List. 

ie do you want a part of the Kidman station or other rural properties as they come onto the market?

If you want to know more then 'you know what to do' as a client's voice mail says.


You could check this you tube vision out.



 otherwise if you want top tips for retirement  Read more




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 Peter & others do call us on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it.or visit our websites.





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Yes we attended another seminar this month, this one an aged care Masterclass.

We read today that ‘People with early-stage Alzheimer’s disease do not lose their memories — just the ability to find them.’

We also read recently that 700 Aussies per day turn 65 & potentially join the dementia club. There will be in the near future be 400,000 Aussies with dementia .

The good news is that you have up to 3 years to plan for that forgettable event.

However have you planned if it is you or your mum or your partner.

There is so much to it & we will be suggesting to our retiring clients today that they take that enjoy that last hurrah of an European tour before that very harsh reality.

That is because as our back office commented , ‘these guys are in a good position’ . We were quite chuffed with that comment.

It is also because

My sister and I have discussed the Europe trip and decided that it is just not possible for us to both be out of the country at the same time (especially for an extended period) because of our mum. 

She is 89 and has not been especially well lately and, although we know there are family members to step in, we feel that the responsibility should not fall on them.

John and I will look at doing something else once my sister is back in the country.

Every speaker was engaging & hence a summary of each would deserve a blog. We could do that but let’s blog today the big picture summary to help you do the Essentials at least.

Natasha spoke about all those government changes to aged care support. Yes there have been tougher pension tests & hence reduced pensions for many & the pension cutting off much earlier than pre 1^st January 2016.

These pension rates are easily found here.

The new aged care challenge means that you have to find more means yourself to support yourself.

If your client enters care on or after 1 January 2016 and is renting out their former home, the rental income will now be counted as assessable income in the calculation of aged care costs The current changes only impact aged care fees.  It is proposed that from, 1 January 2017, the rental income may also impact aged pension entitlements

In particular learn terms such as RAD which is Refundable Accommodation Deposit which is a lump sum for the price of a room. It is usually less than 550K. It maybe in part paid daily which is the DAP which is the daily accommodation payment.

As an example a 400K RAD is approximately DAP =70p.d depending on the interest rate.

Then on top there is the basic daily Fee = BDF.

On top of that there is the means Tested Fee MTF & MTA.

MTA now includes the rental income from your former home which means the MTF could be higher by up to half the net rent. The RAD also counts as an asset.

The changes & proposed changes are here.

I.e. you have the challenge of finding a lump sum say 400k & the daily cashflow to meet expenses. The message is clear.

You can only live in one place & the house isn’t necessarily for the kids.

This is number crunching solving & does help the emotive issue of do we sell the house. Different cashflow options need to be discussed starting from the status quo of keeping the house. Martin has a solution that maybe a suitable option after the numbers are crunched.

                Danielle spoke alternatives to aged care i.e. what other options exist such as home care, retirement living or residential care. These are all preferable to us all. They exist & how do we access them & is there any funding. What also came out is the partner becomes the carer & that is a challenging & very different role. Some help eases the load & it certainly can’t always be the kids.

Here is the government link.

Joanne who is a GP spoke about wellness & the effect on the family when a parent moves in. When the parent repeats haven’t seen the family ever then it is the dementia talking. Joanne spoke about the carer not letting the guilt & stress built up.

I.e. look after yourself to care better. It takes on average 13 weeks before the resident accepts their new home.

Joanne also offered an antioxidant skin test for our whole group of 30 of our contempories. They all wanted to determine how well they all were. We topped with the highest 62,000 score & when we said why Joanne says ‘of course’. It is a firm belief of ours & ‘ask us for the Essentials. Today.

Stephen who is a psychologist discussed our personalities. Each one of us has a profile with two dominant sub types out of 4 sub types of personalities.

Hence we can relate to those who have similar dominant types & conflict arises when the other dominant subtype disagrees.

Hence the matter that partners & families can’t agree on what to do & hence a 3^rd party in stressful times is challenging to say the least.



Carolan who reduces her stress with a cigar before speaking emphasised how important it is to have all those legal forms in place before the dementia strikes.

Otherwise waiting for ‘A good day’ may never happen & hence delays & legal costs. Carolan provided some very good examples of the downsides of not having those legal forms all completed.

One example is when houses are to be sold & are in joint tenants then if one has dementia and there is no enduring power of Attorney EPOA then it can’t be sold as both need to sign.

A long & expensive legal delay. Who wins then?

Carolan also stated that there are solicitors that specialise in elder abuse.



This is a real stressful time for all & before you forget you can contact us today on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it. or check us out on our websites.

Simply we put certainty into your financial life & as a past maths teacher we like to solve your financial problem so that you are better off in three years time



John McAuliffe

Where do we start but in no particular order lets expose the biggest from this month’s reading.

1.       Porter writes ‘I recently learned about an ongoing financial crime – by far the largest in history.

According to sources that I trust (and based on my own team's research to verify these claims), something around $100 billion in dividends has already been stolen.

Up to $1 billion a month continues to be taken, in what must be the most brazen corporate crime in history.

To give you some idea about the scope of this crime (and how big this story will become), the fraud at Enron resulted in the collapse of a $40 billion corporation.
What has been stolen in this case is already almost twice that much, in cash.

 The most shocking aspect of this case, however, isn't its enormous size – and it's the largest corporate fraud of all time.

What's truly shocking is that the people behind this fraud were working for the government when the plan was implemented.

They've been using "executive privilege" as an excuse to cover their tracks, insisting that 11,000 documents that detail how this happened may be vital to national security.                                                  Read More



2. Fidelity, one of the very largest of fund managers writes

Excessive government debt can be curbed in various ways. Officials could even resort to tricks to do this.

One would be to mint, say, a trillion dollar coin. If the law allows, the treasury department could mint such a coin, deposit it with the central bank and receives the corresponding amount in cash, a sum that would wipe out the equivalent in government debt.

Another way would be to write off bonds held by central banks – do this, and some calculate that Japan’s government debt-to-GDP ratio would fall from a world-high 235% to about 95%. More credible steps would be to allow a modest rise in inflation to erode the real value of debt. Governments could sell assets or boost taxes and other charges.

More sneakily, governments could use their legal might to squeeze money from their citizens, be they savers, investors or creditors, via what is known as “financial repression”.

Underhand ways to reduce government debt are laws capping interest rates or laws that force citizens or managed funds to buy sovereign bonds. Or governments could default.                                                       Read More



Let’s review some of articles from this week alone in Australia.

3.    Henry writes in The Australian

In theory, putting your jewels in a safe protects them from theft. In practice, thieves know safes are where the jewels are kept. And if the thief has a key, you’re in ­trouble.

That, in a nutshell, is the story of super.

There are, no doubt, many twists in the saga; but all the latest episode confirms is that when they are desperate for cash, governments can be trusted to breach whatever trust we have placed in them                                              Read more

And also from the Australian this week

In the 2013 campaign the Coalition made a similar solemn promise — they would make no fundamental changes to superannuation in the 44th parliament. The Coalition completely broke that promise in the budget and even backdated their breach to 2007. To do that in such a long-term game as superannuation really shatters trust.                                                             Read more

From the campaign trial

What is safe?’

Bill Shorten says there is “seething rage” in the community over the government’s retrospective changes to superannuation.

“We ask Australians to compulsorily commit to retirement income - they don’t get the value of the money now, they have to save it for retirement,” the Opposition Leader said.

“But it turns Australians into a seething rage when they discover that they make investment decisions and, if Mr Turnbull and Mr Morrison can make a retrospective decision ... what is safe?”

And again from The Australian

Bill Shorten stands accused of misleading voters over the boost to growth from his $37.4 billion school funding plan by claiming an economic lift “straight away” from the spending despite economic ­research that shows the gains would take decades.                                                     Read more



4 . As we have a core belief that health is fundamental to your wealth as bad health destroys your wealth then lets add some massive medical lies IMHO

1.       Dr Mercola writes

However, if the vaccine is ineffective, and/or if the disease doesn't pose a great threat to begin with, then the vaccine may indeed pose an unacceptable risk. This is particularly true if the vaccine has been linked to serious side effects. Unfortunately, that's the case with the MMR vaccine, which has been linked to at least 98 deaths and 694 disabilities between 2003 and 2015.

Considering the fact that only 1 to 10 percent of vaccine reactions are ever reported, those numbers could actually be closer to 980 deaths and 6,940 disabilities.

Meanwhile, death from mumps is "exceedingly rare" according to the CDC,⁶ and no one has died from mumps during any of the recent outbreaks                                                   Read more

2.       And being a student from the sixties then   Read more on cynical government

 

3.       Then there is this best explanation we have read & so we are happy.

Lisa who works in palliative care will be happy but what about the 10% with severe & chronic back pain as George* has.  

Fewer DVOs!!...... Fewer cops & prisons & prescriptions….Maybe more Taxx.

The U.S. Food and Drug Administration (FDA) has concluded a review on the safety of medical marijuana, and the U.S. Drug Enforcement Administration (DEA) has announced plans to reconsider its restrictive Schedule I designation that makes the plant a controlled substance.     Read More

 

We could go on forever but better stop but for your own benefit & as a general comment what is not good for the goose is good for the gander.

They don’t like cash & their arguments its only for terrorists & gangsters is B. S. as our Dad would say.

They also don’t like Gold.

Simply we put certainty into your financial life & as a past maths teacher we like to solve your financial problem so that you are better off in three years time.

Before you forget take your 5 minute financial checkup or call us on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it.today or reassure yourselves via our website


John McAuliffe



      

        

Good morning John, sending this from my phone, sitting in our little van having a coffee.

We would like to ask you about the consequences of taking some money from John's super to take a 36 day cruise around the Mediterranean and Europe, with a possible side trip to the UK afterwards.

Our immediate reaction when asked by my sister to join her and my brother-in-law on this trip of a lifetime was no (you know what we're like!!!).

We could take the money from our savings but are a bit worried about depleting that bucket too much.

On the other hand we are obviously also worried about depleting the super. I know you always say to us we should go for it, but as usual we are super cautious, especially as we don't really know yet what income we will be getting from John's super.

Are we reaching too far???

Best from Tallebudgera, Linda* & Francis*

We reply

‘We have tools to show what we can do so will explore for you the numbers before we meet

An estimate or preferably a latest super  statement would be helpful’


Then

‘I can get the latest statement tomorrow and will email. We don't have a lot of time, we can put a cabin on hold for a week’

Then

‘Yep as an estimate of costs & when for trip

We thought you come over & check out whilst using our new financial tools

Worth the exercise to model scenarios as yes Centrelink also

You are back too early’

Then

We used the financial tools to model various scenarios which included

·         Living the same lifestyle using only both pension funds & no Centrelink

·         with no trip

·         then with the 30K cruise.

Funds are still there until their nineties even when using conservative income & growth figures


Then the good news using Centrelink who do want to know the make & model of car & everything else that they probably know anyway


Also lets model including what Centrelink from next year may add to your income


We used the new asset tests from 1^st January 2017 & also observing

‘From 1 January 2017 the government has proposed to increase the assets taper test - the amount by which a person’s pension entitlement decreased under the assets test - from $1.50 to $3 per fortnight for every $1000 of assets above the lower threshold

It’s designed to benefit the people in the middle - people who are just over the asset test threshold’

The tables below are sourced from the Hon Scott Morrison MP press release.

Couple homeowner Assessable assets	Current combined Age Pension	Combined Age pension From 1 Jan 2017 combined	Difference
$100,000	$34,923	$34,923	$0
$200,000	$34,923	$34,923	$0
$300,000	$34,865	$34,923	$59 increase
$400,000	$30,965	$32,973	$2,009 increase
$451,500	$28,956	$28,956	$0
$500,000	$27,065	$25,173	$1,892 decrease
$600,000	$23,165	$17,373	$5,792 decrease
$700,000	$19,265	$9,573	$9,692 decrease
$800,000	$15,365	$1,773	$13,592 decrease
$823,000	$14,467	$0	$14,467 decrease
$900,000	$11,465	$0	$11,465 decrease
$1m	$7,565	$0	$7,565 decrease
$1.1m	$3,655	$0	$3,665 decrease
$1.2m	$0	$0	$0

Our conclusion as our office also agreed

Thanks John, tell them to go on the Trip!!!!

Kind regards

Jill


Linda*

‘But, I have sent off an email about the cruise’



During our discussion & using various modelled scenarios other issues arose as they do & we comment

‘Other strategies to reduce a pensioner’s level of assets and potentially increase their pension entitlements include’….



And yes there is a list which does not include cruises specifically but yes spending is one of them although as Linda* asked initially there are always consequences which is why Modelling is so useful.



As H another client who we saw this week wrote

‘Thanks for the email john, it was nice to read (it felt a bit like a 'this is your life').. 

I'll work on filling in that info for you’

H


H & his family should know how much protection they should have & also how they can afford the future school fees when they will have ‘three children under four’.


Modelling enables you to answer those ‘What ifs’.

However it requires your input for your personal options.


To answer your question on what we do. Simply we put certainty into your financial life & as a past maths teacher we like to solve your financial problem so that you are better off in three years time. We are qualified Financial Strategists CFS & a Principal Adviser with 35 years financial services experience& qualifications which must also be recognised.



Contact us on 07 3848 1088 or via our This email address is being protected from spambots. You need JavaScript enabled to view it. or our website


John McAuliffe

We have been as we do nearly every weekend gardening around the lot. We finish every week end reflecting on what we have achieved & conclude that it’s looking good & nothing more needs to be done.

Until next week end!

It’s the same with painting around the house. We finish, reflect & conclude that it is looking as sharp as it can be.

Until another project appears.

Dentists & plumbers are similar in that there is always one more to complete.

It is never ending.

So too with our finances.

Even though we have been doing this for 30+ years we can always find a detail that can be gardened.

It’s as we were asked today by a mother.

‘What do we need to do & how do we move from a B grade to an A grade’?

In other words a tune up.

Certainly more effort and better efficiency needs to be actioned before the exam or assignment.

The same to with our finances.

Some financial gardening.

There are many ways of achieving progress which are summarised in our comprehensive review document.

To determine what your overall financial health mark would be there is our 5 minute financial health checkup.

It will prioritise what you believe needs to be actioned today and maybe before June 30 or another significant event.

Its worth the effort & the courage to do so before you forget.

Simply are you financially prepared?

Simply we put certainty into your financial life & as a past maths teacher we like to solve your financial problem so that you are better off in three years time.

Before you forget take your 5 minute financial checkup or call us on 07 3848 108807 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it. or reassure yourselves via our website

John McAuliffe

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The biggest in the Room is the Fed.

Today we readRates outlook uncertain: Fed's Dudley

Have you ever listened to Janet Yellen or Glenn Stevens?

They dribble and drivel as if they know.

Glenn says 12/02/16 ‘recession fears overdone’

his present instinct was "some of the gloom and doom is overdone but, you know, it remains to be seen."

Yeah right!

Janet won’t commit to the question on ‘whether negative interest rates are legal?’

We squirmed when we watched her this week dribble as she is the head OF THE Fed & this issue had been discussed in 2010.

The Fed was created & is a private bank & it is the trillions of nearly free $ they have created that has created this what Porter calls ‘the greatest Legal transfer of Wealth in history’.

How much debt is out there?

1.       19 trillion we read of the good old USA

How many zeros is that & arguably a google which = 10¹²************************'''''

Recall                 ‘Debt is like tattoos & weight

                             Easy to get but hard to lose’

The central banks have been creating debt to ‘create inflation & stimulate jobs….’

Congrates as no inflation [yet after 8 years]& lets ask all those commodity energy, oil & iron ore based employees ask how is their job?

It has a multiplier affect & the markets are saying yes a very serious recession will happen this time.

Shane from the AMP states today that ‘We would put the risk of a US/global recession at around 25%’.

How does he come up with that??

We read this week that WA government was downgraded & the Australian government is also under ‘watch’.

2.It is these commodity based companies that have billions in loans which banks globally may not be repaid.

Hence we see No easy way out for Deutsche Bank at a 30 year low.

It is why here the banks are dragging the ASX index down.

3..Then we have another huge debt challenge happening not only in the USA where the A boom in the number of American students attending for-profit colleges has led student debt to rise threefold in the past decade, to $1.2 trillion, and the issue has become a political one.

It is reflected in NZL where we read of a student refused leaving Auckland airport because of 110K student debt.

The debt for Australian students exists also & is 26 Billion and will grow to 70Billion in two more years.

Yet new research shows nearly 25 per cent — or $17bn — will never be repaid, a figure that would escalate under government plans to deregulate university fees.



4.   Let’s just throw in the other huge debt loan problem loan issue which is car loans.

We ferry our family to school two hours per day most days & marvel at the new expensive imported cars we see.

How can they afford those cars & in particular ‘what does Dad do to earn an income’.?

Easy.

Car loans & pass any car yard then yes they have a loan for you.

So with all those layoffs then all those miners & others laid off will be forced to sell their cars at a serious loss.

Shall we call them subprime car loans.

Yes we were taken to see ‘The Big Short’ as ‘it might be of interest to us’

Yes those GFC subprime mortgage loans & the winners were those who bet against the ‘too big to fail’ system.



5. Another reason for the big fall last week was that the big world Sovereign funds similar to our future Fund are having to sell . These big funds such as Norway and the Gulf states & others which control 5% to 10% of all assets are having to sell because the low oil price. This means that they are stretched to pay their welfare promises. Much =30% of their holdings are in European banks.

We smell more fun & mischief in Saudi Arabia & will enjoy the retribution to follow.



Is the market saying we don’t need a central bank.?

Commentary today is saying that they have used up all their ammunition.

We read The situation is worse than 2007

& hence our mailing to clients on 16^th January 16

‘We intend to sell our imputation funds, china & depending on your portfolio switch into cash as below summary from one we monitor suggests today that we do

Please confirm & we will action on Monday & deposit into UBS cash…..’

As we learn at home & at school there are always unintended consequences & maybe the central banks & banks & even governments might be reduced to bad memories.

Maybe WBC might fall to when we bought them in 1979 to 3.05 or to 2.50 when Kerry wanted to buy it.

Maybe The Don might trump the banks.

As Joseph & Helen did today let’s sit around the table to provide some certainity in this uncertain world.

Call us on 07 3848 108807 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it. or visit our websites



John McAuliffe

 

 

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Morris* will save $686 on his super group life insurance.

Morris* rang us last Friday concerned that the premiums on his life insurance inside his super was increasing from 1,242.70 last year to 1,900 this 1^st July 2016.

As the super fund explained to us & the client yes they are increasing by 50%.

The increase was the first in 15 years.

As we are able to find another insurer who estimates the same cover for $1,214.73

This means for Morris* he has another 686 invested to grow his super fund balance.

And this is an ongoing savings throughout his next working years.

I.e. as a very rough estimate, as these are all stepped premiums,

An 10,000 extra & more in his super balance than he otherwise would have.

We could provide you with many other examples but here is Richard’s*.

Death only                                                                                 $1,340,000.00

Total & Permanent Disablement                                          $340,000.00   

                                                                                  

Annual Premium at Commencement                                  $1,657.94        



What are they for this client this year?

Dear John

Please find below premiums for the following covers:

Death Only $1,000,000.00 - $1768.58

Death & TPD $340,000.00 - $1,179.51.

A total of 2,947 or an increase of 1289 p.a. which is 77%

This 1,289 could REDUCE the client’s super balance over 25years by 30K+ say.

Yes we can again use another insurer with an estimate of $1,706.11

I.e. a savings of 1,241this year.

What would that do to his fund balance?

Is that worth contacting us?

However it requires the effort to contact us on 07 3848 108807 3848 1088 This email address is being protected from spambots. You need JavaScript enabled to view it. at least take a 5 minute financial check up.



One more concern we have with group insurance in your industry or work super.

There are catches in the small print which means you are not covered. There is always suicide for 13 months but also

It happens to many who decide that living here is to ‘boring’ or ‘over regulated’ or just a need to up skill & explore other overseas pastures.

E.g. A member will be provided with 24 hour worldwide cover while on holiday or business, for up to 3 years in duration while they are outside their normal country of residence unless otherwise agreed to in writing by the Insurer.

E.G And from an industry fund

from BUSSQ super Handbook on page 19



You are eligible for insurance cover if you are:

·         A member of BUSSQ

·         Employed by an employer who is making ‘on time’

·         contributions on your behalf into BUSSQ

·         Not an ‘Excluded-Member’.

We also noted in this hand book the administration fees are 0.98% & we have funds that are Half that.

Note you do pay the union fee which suggests you pay the premium AND the union fee for doubtful cover.

Which is why this from Antony* an accountant today sent us the ‘3rd most expensive building in the history of the world.

Plenty of Ifs which you don’t find out until you need to & then it is too late.

We have written previously on the soliciting rip off desperate option.

These examples are intended for you to discover what your insurances inside your work super cost you.

Is there a better way without coming from your cashflow?

It comes out of your cashflow when you DIY it as it is another option & then also you are underwritten at claim time!!!! It is generally more expensive also.

A word of caution.

You may now be unable to buy life cover or it is loaded due to your current or future health.

Full disclosure is also required as the new insurer can ‘look back’ in the first three years if a claim.

Simply we put certainty into your financial life & as a past maths teacher we like to solve your financial problem so that you are better off in three years time.

Before you forget take your 5 minute financial checkup or call us on 07 3848 108807 3848 1088 This email address is being protected from spambots. You need JavaScript enabled to view it. today.

John McAuliffe









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Speech delivered at the Australia Day 2016 School Assembly

Director of English (and unapologetic pun enthusiast).

‘Our Homer’s girt by sea’ (or) ‘Australians all, lotus rejoice’

I am going to start my Australia Day Address in the most obvious place: ancient Greek mythology.

In Homer’s epic poem, The Odyssey, the wise and indomitable hero Odysseus struggles against gods and monsters for years to make it home from the Trojan War

It was Odysseus’ idea to give the Trojans a gift of a gigantic wooden horse full of Greek soldiers, a trick which won the war for the Greeks. The journey home from Troy is long and perilous: man-eating Cyclopses attack them, sea monsters snatch men from the decks, sirens try to lure them to shipwreck.

I am an English teacher, so you know what’s coming next: I am going to choose a small piece of this story, analyse its connotations, and then extrapolate to find its relevance to us today. Everything is a metaphor.

Still trying to get home to their island of Ithaca, Odysseus and his men are blown off course for nine days, and land on the island of a people called the Lotus Eaters. Their island is isolated; it is beautiful. Its people are friendly, peaceful, and easy-going, spending their days grazing on the ‘mellow fruit and flower’ (Homer trans. Fagles, R. 1997, IX:96) of the lotus plants that grow everywhere on the island.

The sailors who go ashore also eat these plants, and the ‘honey-sweet fruit’ (Homer, IX:106) has a powerful narcotic effect on them. They forget their purpose. They become completely satisfied, and care about nothing, not even returning to their families. They think their journey is over, and give up thinking, questing, and striving towards their goal, and exist instead in a kind of blissful, mindless trance.

Like Odysseus’ crew, we Australians have found ourselves on a beautiful island, isolated in many ways from the strife that afflicts the rest of the world, and, as we have just sung, our island ‘abounds in nature’s gifts’, and has ‘beauty rich and rare’. Around Australia Day, we hear a lot about how lucky we are, and how great our island home is. These things are true

The risk here is that — like Homer’s Lotus Eaters — we might slip into a kind of unthinking complacency. Satisfied with what we have, we might lose sight of our quest and purpose — where we are headed — and spend the day in a delirium, intoxicated not by lotus flowers, but by a flag-waving media and the delicious aroma of barbecuing lamb.

I would argue that many of us can spend the 26^th of January blissfully happy to be Australians, but that we should not lose sight of the fact that, as a nation, like Odysseus and his men, we have not reached the end of our journey. For many, life in Australia today is comfortable, peaceful, and fulfilling, but for many others, it is much less so. If we swallow the Australia Day hype about this being the best country on earth, like the lotus of Homer’s story, it could cause us to forget that we still have a long way to go. Odysseus’ landing party did just this; they forgot Ithaca. If we as Australians stop now and accept the way things currently are — no matter how comfortable that might be — we risk never achieving the happy future state in which we can ‘all rejoice’.

Yes, there is a risk that Australia Day could become an occasion for self-congratulation, where we all don thongs, green and gold zinc, and a flag-cape to chant ‘Aussie, Aussie, Aussie’, but the good people in charge of Australia Day have done their best to make sure that we do not end up sitting around our beautiful island feasting on this kind of patriotic lotus. For the last four decades or so, the Australia Day Council has named Australians of the Year to be a kind of Odysseus for our nation.

When he went ashore and found his stupefied, carefree men sitting around chewing on lotus, having completely forgotten their quest to get home, Odysseus dragged them forcibly back to the ship and tied them up until he and the rest of the crew had rowed clear of the island. The men who had eaten the lotus wanted to stay, but Odysseus forcefully reminded them of their ultimate — and higher — purpose.

The Australians of the Year do this for us, and not just on the day, but for a whole year and beyond. Consider how profound an impact Rosie Batty has had in her year as Australian of the Year in 2015 in focusing our attention on the terrible cost of domestic violence. Most Australians are not affected by domestic violence, but Rosie Batty reminded everyone that we have to speak out and act if we are to care for those who are vulnerable. The year before, Adam Goodes forced us to confront relations between Indigenous and non-Indigenous Australians. Most Australians do not have to deal with a traumatic history of colonisation and a present too often tainted by racism, but Adam Goodes reminded us that these are issues that we all have to confront, because if we don’t resist racism, we accept it. Patrick McGorry used his tenure as Australian of the Year to make all of us examine our attitudes towards, and treatment of, those who are suffering a mental illness.

This year, David Morrison will no doubt strive tirelessly to have us think and act to make sure Australia gets closer to its destination as a diverse and inclusive home for everyone, irrespective of gender, race, sexual orientation, or any other difference from the supposed norm. Each of these Australians, like Homer’s Odysseus, has had the wisdom and determination to wrench us from a comfortable present towards a better future.

Australia Day is a chance to appreciate all the great things we have in this country, and to feel pride. But what the story of the Lotus Eaters, and the efforts of our Australians of the Year remind us, is that we also must resist feeling satisfied. Our odyssey — our national quest — is far from over.

29 Jan 2016
 

we need reminding that if we are in 'The Lucky Country' that we must maximise our presence in the present & our moment in the sun of history

 

If you wish to maximise your financial moment for the future then as others do

call us on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it.or visit our website

 

John McAuliffe