Warren Buffet in his most recent annual report for Berkshire Hathaway highlighted over the last 53 years an overall gain in ‘Per Share Market Value’ from 1965 to 2017 a massive 2,404,748% (yes that’s million) compared to the ‘S&P 500 with Dividends Included of 15,508%.Details
What 4 strategies can you put in place to ensure you’re in a financially strong position to make a career change?
Looking for a new job can be exciting, but research shows that financial commitments is one of the top barriers for people considering a career change.
So, what 4 things do you need to do with your finances before making a career change?Details
I find this is the best time for me to set intentions, goals and priorities for the coming year. So I wanted to share some insights from an article I think is so appropriate for us in this community and outlines the values in which we must bring on board if we are to become…Details
Active investing is generally more expensive and passive investing may appear more simple but investors should consider their goals before deciding. The discussion around index investment strategies or active and passive investment strategies is more complex and investors should consider their long-term goals when deciding which path to take rather than matters of ease and…Details
Little things can cause significant changes. We have all experienced that. Imagine if you could change the world, (and your world), just by making your bed. Yes I know it seems like an odd action and you may ask, how could making my bed change my world? Find out here – you will be very surprised and even a…Details
The US is leading the current boom and US shares are more over-priced than Australian shares, so US shares will have further to fall in the next bust. Australia and the United States are similar in many ways. Both are former British colonies with relatively stable democracies, both have strong political, administrative, judicial and educational…Details
Our values are what we create our lives around. Consciously or unconsciously these values determine where we spend our time, energy and money. The higher something is placed on your list of values the more you are inspired to do it, spend money and your energy on. Axiology being the study of values comes from…Details
How does your wealth imprint affect your ability to accumulate the amount of wealth you want to achieve during your lifetime?
“Why is it that we constantly see the majority of lottery winners and recipients of inheritances end up where they started some 18mths to 2 years later and in some cases worse off? You see we all have something called a Wealth Imprint or in simple terms a ‘Wealth Thermostat’ and our wealth imprint tolerance oscillates at approximately 10% above and below this individual imprint line. The line indicates where your current inner and most often ‘subconscious wealth value’ is positioned.Details
“Don’t THINK BUT FEEL!” Bruce Lee from movie Enter the Dragon. Wealth Building does not only involve quantitative factors but also qualitative factors too. Call it Psychological, Metaphysical or the Softer factors all these are qualitative in nature and you need both to build wealth. One of these imperative for wealth building is our ‘4…Details
Growing up I always thought ‘Net Worth’ came before ‘Self Worth’… but what I have now come to recognize is something quite different. POEM on SELF WORTH…Details
Hopefully by now you have set up your ‘90 Day Reserve’ account that we discussed last month and started your direct debits to start building your ‘cushion’. Just to recap.. Last month we opened up one transaction account that will grow your money on auto pilot and serve the purpose of creating a ‘cushion’ and…Details
Case study Tony and his business partner Andrew run a successful veterinary practice. They each generate a pre-tax income of $20,000 per month and are jointly responsible for meeting the total business expenses of $16,000. This leaves them $12,000 each to draw as income every month. They have both used Income Protection insurance to protect…Details
I have been wanting to introduce this for sometime and it all came to the fore and became the ‘right time’ to share this with you on our recent family trip to Greece to visit my parents for Christmas. Revisiting some of the ancient wisdoms of the world really drew me back to my desire…Details
You could be forgiven for thinking that active fund managers have been having a hard time of it lately. First there was the release of the 2016 results of the independent scorecard produced by research and ratings group S&P Dow Jones that tracks how active managers are performing versus index. The SPIVA scorecard result did…Details
Credit Suisse has released their annual investment returns yearbook which is always a good reminder of the benefits in taking sensible long term views on investing. The one thing that always strikes me when I read this report is how well Australia fares in terms of long term performance of our share market, which as…Details
As your business grows, you should consider insuring the people who play a key role in the ongoing success and profitability of your business. What are the benefits? If something was to happen to you or another key person (such as a key employee 1), and the insurance provider pays to the claim, the insurance…Details
When taking out insurances, you should consider paying level rather than stepped premiums. What are the benefits? By using this strategy, you could potentially: pay a lower average premium over the life of the policy, and make your cover more affordable at a time when you need it most. Case study Tom and Harry are…Details
If you are taking out Life and Total and Permanent Disability (TPD) insurance, you may want to arrange the cover in a super fund rather than outside super. What are the benefits? By using this strategy, you could: potentially reduce the premium costs, and enable certain beneficiaries to receive the death or TPD benefit as…Details
According to Vanguard’s 2016 Index Chart Australian Listed Property recorded a 24.60% return just in front of Global Listed Property with 20.40% return this last financial year.
In fact Listed Property Asset Classes for both Australia and Globally have recorded double-digit growth over the last 2 years. In the last 5 years only US and International Shares together with Listed Property achieved double-digit growth looking at the Vanguard Index Chart below.Details
If you have a family business, you should consider using Life insurance as part of your broader succession planning.
What are the benefits?
By using this strategy, you could:
- provide additional funds to equalise your estate in the event of your death, and
- ensure your beneficiaries receive sufficient assets to achieve your estate planning objectives.
With the looming Pension changes coming 1st Jan 2017 we have prepared a 10 point checklist for EXTRA Centrelink benefits OR at worst make sure you know your downside.
Don’t think Centrelink will be ringing you to say “Hey we could pay you more” and don’t wait until October for them to call you with how these changes will affect you…
Check off each of these 10 points to make sure you are not one of the 326,000 retirees who will be affected by these changes. It is predicted many will loose up to 50% of their pension or more and others will have their pension slashed.Details
If you’ve used debt to start-up or grow your business, it is wise to ensure you and other key people have suitable insurance cover.
Adam, aged 40, is married to Kylie, aged 35. They have a young family and own a home worth $600,000.
Adam wants to expand his dry-cleaning business and to do this he’ll need to raise some capital. After assessing his options, he borrows $200,000 from a bank and, as part of the loan agreement, he signs a guarantee using the family home as security.Details
Check out courtesy of Herron Todd White half time review of National Property Clock for Residential Houses and Units together with Commercial for Capital Cities around the country with specific commentary extract for Adelaide.Details
Harriett is a self-employed architect and receives an income from her business of $120,000 pa. She owns a home worth $500,000 and has a mortgage of $350,000. If she is unable to work due to illness or injury, she wants to be able to meet her living expenses and mortgage repayments without having to eat into her limited savings.Details
In Part 3, we examine the ongoing growth in the Exchange Traded Products market and consider why investors are drawn to this investment. According to the ASX, total market capitalisation of the Exchange Traded Products market at February 2016 was $20.62 billion, up from $16.98 billion in February 2015.Details
Alex and Bill each owned 50% of the shares in a successful engineering business when Bill died suddenly. Bill’s shares were inherited by his wife Lynn via his Will and, because there was no Buy Sell agreement in place, Lynn is not obliged to sell the shares to Alex and Alex is not obliged to buy the shares…Details
In Part 2, we detail how SMSF investors have shifted from a traditional mix of investments, to a more diversified, defensive approach today.Details
If you are a small business owner, it is wise to consider Business Expenses Insurance. What are the benefits? By using this strategy, you could: keep on top of your business expenses if you are unable to work due to illness or injury, and ensure you have a saleable asset if you are unable to return to work. How…Details
In Part 1, we provide you with a summary of the views of both SMSF investors and the SMSF category as a whole. More so, you’ll learn what Trustees are thinking right now and discover the reasons for their considerable shift in asset allocation since the publication of the last report. If you need more information…Details
As your business grows, you should consider insuring the people who play a key role in the ongoing success and profitability of your business. What are the benefits? If something was to happen to you or another key person (such as a key employee 1), and the insurance provider pays to the claim, the insurance payment could be used to: offset…Details
A report out from the ATO on Self Managed Super Funds (SMSF’s) asset allocation reports a large exposure to broadly two asset classes namely Australian Listed Shares and Cash/Term Deposits with a smaller exposure to Non Residential Property and next to no exposure to International Shares. Whilst it could be argued Cash and Term Deposits…Details
Investors are more likely to reach their long-term goals if they remain invested and avoid short-term decisions that may take them off course. What this chart shows As this hypothetical example shows, investors may make suboptimal decisions when emotions take over, tending to buy out of excitement when the market is going up and sell out of fear when the market is falling. Markets…Details
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When taking out insurances, you should consider paying level rather than stepped premiums. What are the benefits? By using this strategy, you could potentially: pay a lower average premium over the life of the policy, and make your cover more affordable at a time when you need it most. How does the strategy work? When you take out insurance…Details
If you are taking out Life and Total & Permanent Disability (TPD) insurance, you may want to arrange the cover in a super fund rather than outside super. What are the benefits ? By using this strategy, you could: Potentially reduce the premium costs, and Enable certain beneficiaries to receive the death or tpd benefit…Details
“There’s an old economic rule known as the ‘Rule of 72’ that tells us how many years it would take for something to double in value. 72 / by growth rate. Simply divide the growth rate or interest rate into 72 and the answer will tell you how many years it would take for your…Details