» Get email notifications of new articles.
You work hard for your money - your money should work hard for you.
What an inspirational nugget of gold … it’s in practically every banking and investment ad, every online get-rich-quick-scheme …as we all know, it’s often easier said than done. Read the rest of this entry »
An email received from a friend today served such a stark reminder of making the most of what you have today, that I was compelled to share it with you. I made a few adaptations for local flavour:
A boat docked at Rosslyn Bay near Yeppoon.
A tourist complimented the local fishermen on the quality of their fish and asked how long it took him to catch them.
“Not very long.” they answered in unison.
“Why didn’t you stay out longer and catch more?”
The fishermen explained that their small catches were sufficient to meet their needs and those of their families.
“But what do you do with the rest of your time?”
“We sleep late, fish a little, play with our children, and take afternoon siestas with our wives. In the evenings, we go into the village to see our friends, have a few drinks, play the guitar, and sing a few songs.
We have a full life.”
The tourist interrupted, “I have an MBA from the University of Sydney and I can help you!
You should start by fishing longer every day.
You can then sell the extra fish you catch.
With the extra revenue, you can buy a bigger boat.”
“And after that?”
“With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet of trawlers. Instead of selling your fish to a middle man, you can then negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Noosa, the Whitsundays, or even the Gold Coast!
From there you can direct your huge new enterprise.”
“How long would that take?”
“Twenty, perhaps twenty-five years.” replied the tourist.
“And after that?”
“Afterwards? Well my friend, that’s when it gets really interesting”, answered the tourist, laughing. “When your business gets really big, you can start buying and selling stocks and make millions!”
“Millions? Really? And after that?” asked the fishermen.
“After that you’ll be able to retire, live at Zilzie Bay on the Capricorn Coast, sleep late, play with your children’s children, catch a few fish, take a siesta with your wife and spend your evenings drinking and enjoying life with your friends.”
And the moral of this story is:
Know where you’re going in life…you may already be there!!
Where to from here?
Dan Smith is self employed and based in Rockhampton. For many people he has become their trusted adviser and Financial Planner. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.
In The Big Shift author Bernard Salt provides an articulate interpretation of the settlement of the Australian continent, charting the shifts and shuffles that have made us who we are over the past 200 years.
He chronicles Australia from the unique bush culture of the swagman, to today’s world of boomers, Xers and Dotcoms, and goes on to consider the rise of suburbia on our national psyche and maps out the likely influences on Australian culture over the early decades of the twenty-first century. Many others have built on or offered alternative commentary on phenomena such as Tree change and Sea change. In an earlier post (“Is a tree or sea change the right retirement option?” ), we investigated some of those considerations that ought to be given far more time and attention.
Xanthe Kleinig recently provided an update (Meet the Overseas changers … ) on vast numbers of Australian retirees refinancing so they can spend their twilight years living like kings in foreign lands, in an international version of the “seachange” trend.
Whilst for many, moving away may mean long held dreams fulfilled, it does need to be given careful consideration. An alternative to selling, moving and finalising ownership of their current home may be to consider renting out the family home for a year or two. While renting the family home out, move to your desired location and rental accomodation there … dip a toe in the water and try before you buy. In this case, if the sea, tree or international change isn’t what it was planned to be, a return to the family home is available minimising the effects on original living arrangements.
More than anything else, plan so that you have choices if things don’t quite go to plan.
Where to from here?
Dan Smith is self employed and based in Rockhampton. For many people he has become their trusted adviser and Financial Planner. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.
In times like these, everyone claims to have the answers on how we can trim the household budget to help make way for the rising cost of living.
It’s easy to declare that getting rid of the morning espresso, or buying groceries in bulk from discount warehouses, are the answers to cutting costs. But what if there’s an easier way? Where does the bulk of our spending really go? Read the rest of this entry »
I found a poem in a box of my Grandfathers knick nacks while I was helping clear out his garage recently. I thought the poem had some relevant messages for us all and as such I’d like to share it with you. The poem is titled “Sermons we see”:
I’d rather see a sermon than hear one any day.
I’d rather one should walk with me than merely show the way.
The eye’s a better pupil and more willing than the ear,
fine counsel is confusing, but the example’s always clear;
and the best of all the preachers are the men who live their creeds,
for to see the good in action is what everybody needs.
I can soon learn how to do it, if you’ll let me see it done.
I can watch your hands in action, but your tongue too fast may run.
And the lectures you deliver may be very wise and true;
but I’d rather get my lesson by observing what you do,
for I may understand you and the high advice you give,
but there’s no misunderstanding how you act and how you live.
- Edgar A. Guest
Where to from here?
Dan Smith is self employed and is for many their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.
Financial year 2009 has been another tumultuous year for investors. In his Financial Year-End Market Wrap Up video, MLC Investment Analyst, Brian Parker analyses:
There has been strong growth in real property investment by self managed super funds (SMSF’s). Many funds hold such property as their only substantial asset - a position which has the potential to cause material difficulty should a benefit payment or rollover to another fund suddenly be required, such as upon an irreconcilable family breakdown (divorce), sudden death or major disability of a member.
For trustees of SMSFs, managing your own fund and getting it right is very important. There are many rules and regulations in the various laws that govern super that are designed to protect your retirement income. As a trustee, you need to adhere to the rules and know that you are ultimately responsible for the running of the fund, even if you use tax, financial and super professionals to help to manage it.
Statistics regarding death and illness are often quoted when advisers tell clients about the need to establish life, TPD, trauma or other risk cover. These same statistics can be quoted in support of the need to maintain liquidity in a SMSF. As with risk cover, the purpose of liquidity is to be prepared for the unexpected, such as death or sudden illness, rather than death in accordance with current actuarial life expectancy table.
Life is uncertain, and SMSF Trustees need to be prepared for the unexpected by retaining a reasonable portion of SMSF assets in liquid assets. Read the rest of this entry »
Today’s twenty something generation - Generation-Y or Gen-Y as they’re known - are renowned for being optimistic go-getters. Born between 1976 and 1991, these children of baby boomers are often described as being unrealistically optimistic and over-confident about life, particularly around financial matters.
Perceptions are often reality …
Gen-Y are perceived as being happy to rely on ‘Bank Boomer, ‘Family ATM’, ‘The M&D Bank’ to prop up their lifestyle, especially during this economic downturn. With tags such as ‘helicopter kids’, ‘Kidults’ and ‘boomerang kids’, who just keep coming back to their parents for further assistance, Gen-Y are fast becoming “Kids In Parents Pockets Eroding Retirement Savings” - KIPPERS. In the past, our Baby Boomer parents were pretty confident that they could sustain not only their lifestyle but, if things went wrong with their Gen-Y sons and daughters, that they could also help them out. Sadly, for many that confidence is gone, and is no longer a practical reality.
By nature of the year of my birth, I am a member of Gen-Y (only just).
Unlike previous generations, such as our baby boomer parents, credit has been all too readily available and we stand accused of failing to understand the ramifications of our spending habits and potential impact of escalated debt levels, particularly given the effects of the global financial crisis.
Recognised by many as the driving force for tomorrow’s economy, many of our number are financially uneducated and paralysed by debt. Gen-Y has its fair share of entrepreneurs and many have, or are looking to, start their own business. Basic budgeting, business planning and accounting advice will be beneficial in this respect to provide that initial foundation on which to build a sustainable business.
Now with increased unemployment and vulnerability in the economy, Gen-Y has received a much needed wake -up call. It’s great that this wake-up call has been received now, rather than in our early 40 and 50’s … much more time is on our side … I urge you now to take action and review or rethink your current and future financial strategies. I only hope you (Gen-Y) were listening when the wake-up call came and didn’t rollover for another sleep. Read the rest of this entry »
MLC Investment Specialist, Brian Parker verbalises his insight regarding developments in the market over the month of June and then looks to the periods beyond.
Brian reinforces the underlying volatility in the markets dance toward recovery via an analogy of three steps forward, two steps back.
MLC June Market Update Video Link
These and other regular updates provided by MLC are available for you to access directly from MLC’s Market Watch website.
Where to from here?
We’ve all heard the saying by Benjamin Franklin: “In this world nothing can be said to be certain except death and taxes.” I’m sure you would agree that this quote is as true today as it was in Franklin’s day when he first penned it in a letter. While a touch on the morbid side, my good news reminder to you is that implementing sustainable life insurance can help you minimise the financial impact of both of these certainties.
Now onto the topic of aged care in Australia. This is a topic that my own family has had recent personal experience. This recent personal experience has reinforced to me that that looking into the costs and legislation associated with moving an elderley person into care can be quite complex and requires careful financial planning. It also reminds me of an earlier post from 2007 : “A Lesson from Home and Away - Sunset Planning“. A balance is also required, as often is proven and observed, the best outcome financially may not be the best outcome emotionally. Read the rest of this entry »
