Plan 2 Prosper

You are invited to an MLC Market Update Webcast

With the current market turbulence, you are probably worrying about its effect on your super or pension and are keen to know what you can do to protect your retirement nest egg.

In times like these, staying informed is the best way of staying in control. With this in mind, we would like to invite you to view a live, online panel discussion with MLC.

The panellists will provide a market update and talk through some of the options and choices that may be available to you given the current market circumstances.

This will be a great opportunity for you to raise your concerns, hear what other people are saying, and ask MLC’s market experts any questions.

You can watch the webcast live on Wednesday 4 December 2008 at [11 am EDST] at

http://mlc.permission.com.au/cgi-bin16/DM/y/nBkiX0UI6Rj0BA7z0RT510Er

or at a later time that’s more convenient for you.

Go to the Market Watch site for more information and contact us should you have any further questions or concerns.

Where to from here?

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Media headlines continue to be dominated by reports regarding uncertainty and volatility within our investment markets. As is usual, there are unhelpful voices saying that they got out of the markets before point X or point Y and are therefore smarter than the rest of us because of this proprietary  system or that registered business model … I trust when you come across them you recognise the sales pitch for what it is and insert bucket loads lots of disbelief.

Joe Public and for that matter Arthur Adviser are being scared out of their wits by media headlines highlighting doom and gloom, depression period analalogies and even more uncertainty. It is natural that consumer press will want to take a golden opportunity to grab reader and viewer attention. All this does is provide a result similar to every one in Rockhampton throwing their tins of mower fuel from the lookouts on Mt Archer toward the fires, fanning and feeding the flames that have been harassing the ranges and blanketing the region in a smoky haze.

More than anything, we as humans tend to fundamentally be herd animals. We like to move together and to think the same way … even if those thoughts and actions are in conflict with what we know fundamentally to be true. What we know for sure is that emotional human responses are rarely rewarded, and nobody has a clear crystal ball to forecast when and how the markets will respond. Bear markets do end and this time its not any different.

If you continue to watch the news and continue to get depressed by the “news” being provided, the best advice that can be provided is to simply stop watching the news. Take a moment for yourself. Go outside for a walk. Do those things you enjoy. Me, I enjoy pretending to fish and just watching the world go by … 

To further assist you, the major messages we would like to convey to you at this time are:

• Share markets are volatile, but Bear markets don’t last forever
• Focus on the Medium to Long Term

In doing this it is important to:

• Rebalance using a disciplined approach 
• Access the best management firms in the world, who can add value through active fundamental stock research 
• Be well diversified

Please gain reassurance that adopting the methodology above has aided many people like you to weather and thrive through many crises since 1985, and also that the important points outlined above are the very foundations of the vast majority of the plans we have implemented with our clients.

Where to from here?

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Melbourne Cup day is the busiest day of the year for betting agency TAB, with $159 million wagered across Victoria and NSW alone on the day in 2007. The Melbourne Cup is for many Australians part of the institution and culture that makes us what we are.

To bet or not to bet is not really the question … for me its more a question of if you are going to do it, do it responsibly and with people you enjoy being around. 

Melbourne Cup day in 2008 has also seen the Reserve Bank slash interest rates by a further 75 basis points to 5.25% … this action has likley made for more winners than the results of any speculation on the results of Race 7 at Flemington race track.  

What is the difference between investing and speculating? 

Investing involves a disciplined approach to investing your money in line with your goals, risk profile and time horizon in a diversified manner to reduce risk. Speculation on the other hand, is simply purchasing investments that are expected to provide a quick win, with little or no consideration for long term goals, time frame or diversification. Gambling on a coin machine or betting on a horse race are both forms of speculation. How many of you were left with nothing but a piece of paper and a memory of a moment around 2:10pm today?

So, overall investing means putting your money to work for you in a number of different ways. You need to adopt a longer investment time frame and a measured degree of risk. 

A lot of people believe that they do not need to worry about investing for the long term such as retirement as they believe that superannuation will provide a sufficient lump sum at this time.

However, you may be surprised to know that you need to contribute at least 15% of your salary for 40 years to generate a retirement income of 60% of your pre retirement income.

Although this may sound daunting, with the help of a financial planner, and some clever strategies, we can help you reach financial independence for your retirement and help you achieve your other lifestyle goals along the way.

Where to from here?

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates