We wish you joy, great times spent with family and friends, and time to reflect on all the gifts you have given through your life. During the last few years I have come to appreciate that the gift of real value to me is the time my family and friends give me, time sharing stories, developing memories, and being able to share my life.
Easter is a time for thinking; it is a time that the Bible says one man gave his life so others may now live life to the fullest.
I find that Financial Planning is the hope we give to others, a knowing that with more knowledge they can change the “DASH” of their life. I have included the dash of a client, without a little knowledge things could have been different for his family.
It is all about the dash.
Start 1996 ————————————————————————————————- 2013
The story is about the end result, and you can get an end result when you have been in business a reasonable length of time. Start with a couple, doing their tax return, looking at their income and asking a simple question? “You have an annuity and it is designed to run out in four years, what are you going to do then?”
So: Initial Consultation Year 1996
Is there anything better that I can do so that I can have control of my funds?
I do not need all the income from my immediate annuity.
Are there any other options available?
- 64 years of age
- Had an immediate annuity
- Original Investment Amount, $92,500
- Term of annuity 10 Years
- Deductable amount $ 780
- Rebate $1,035.49
- No residual value
- Client had no other funds available
- Client had an English pension
- Client English pension $11,106.47’
- Partner English pension $ 2,915.33
- Annuity income $19,531.02
- Centrelink payments $ 4,552.03
- Total Income for the year $36,826.22
- Tax payable was $ 1,873.95
- Client’s home was fully paid
- Client was retired and only had four years of allocated pension income left.
- He was unsure of how things would be when the funds ran out.
- Place funds into an Allocated pension,
- You have more control of the amount of pension you are required to take
- Your funds have the ability to grow in a tax free environment
- Place funds into a variety of wholesale funds
- Use a platform for ease of management, the ability to access wholesale funds and the use of a reliable reporting facility
- Use a variety of fund managers with varying fund management styles
- Nil entry fee so that your funds earn from the first dollar
- Ongoing management fee of .09% of funds under management
- Ongoing review to assess how the plan fits your requirements
- Gross income decreased on an annual basis
- $59,204 was rolled over from the Annuity
- Deductable amount First year $1,811.99
- Client English pension $11,402.66
- Partner English pension $ 2,919.88
- Allocated Pension Income $ 3,120
- Taxable income reduced to $16,656
- Disposable income was $22,520.54
- Tax payable reduced to $557.58
- Australian pension remained the same
- Client had the ability to control income within constraints of the allocated pension parameters
- Tax Payable reduced
- 75 years of age
- Has an allocated pension
- Original Investment Amount, $59,204
- Allocated Pension now is $ 7,510
- Client has received $60,615 in pension payment to date
- Current value of Allocated pension is $74,393.89
- Client still has the English pension $15,538
- Spouse Income (UK and Aust Pensions) $12,089
- Centrelink payments each $ 7,144
- Disposable income $38,972
Year 2013 Client aged 80
I received a phone call from their son, the client has died and they are looking to finalize the estate. Out of the Initial investment of $59,204 in 1997, during his lifetime he received over $89,000 in income, had numerous tax benefits and had $55,000 left. If he had stayed within the original investment strategy the funds would have run out in 2000. The client was prepared to forgo initial income so that his nest egg would benefit him longer.
Financial planning is about opening your eyes to the possibilities you have, which are greater now than they used to be.
Your job is to look at the options, analyse them and see if you are prepared to do what is necessary to achieve you goals.
When you are traveling lifes journey, you accumulate memories and wonderful experiences. One such memory is that of a client who found my straignt forwardness hard to take and as a consequence went to another advisor.
On his death bed he asked me to visit.
“Irena, would you look after Dorethy when I am gone?’
Well, how do you respond to that? We went back a good many years, he told me that he found it hard to talk to me, he felt that I did not really hear him, so he went to someone that did. He also said that I was the only one he thought would really put his wife’s interest first. As a financial planner-adviser, what greater gift can be bestowed to you.
What an honor that was for me, at the time when he really wanted things to be right for his wife he felt comfortable enough to tell me his concerns and trusted me with the welfare of his only concern, his wife of many years.
We did what it took, looked after his wife until her death, and now look after his children.
As you travel lifes journey, you meet people who with their honesty give you oportunities to grow. This experience taught me the necessity to really listen and hear what is being said, when you do you have the oportunity to become better.
We are in the second month of our new year. Such an exciting time. Time to see all we can be and time to make small changes so we can.
The biggest obstacle that most people need to overcome in order to become successful is a feeling of inferiority or lack of self esteem. This is something that is often instilled into us as children, and can be the result of a careless comment or two, or a couple of early failures which result in a paralyzing fear of failure and low self-esteem, understand self esteem is just that, it is the way we see ourselves.
Thinking regulates actions, so if you are thinking that you are ‘not good enough’ or ‘not important’, then this will be reflected in your actions, and therefore will be how people see you. The great thing about this is that you have the power to change it! Whether it’s your personal or your professional life, it can be done!
Every human being has a unique blend of qualities, traits and skills that no other person has in the exact same way. You are unique. You are amazing. And do you know it? What is it that is preventing you from moving forward and being the person that you wish you could be? And there is the answer! Wishes are great and all that, but the last time I checked, there was no magic wand that was going to make all of my wishes come true. The only way to make a wish a reality is to turn it into a goal and take real steps towards making it come true!
So how do you turn your thinking around in order to become the person you know you can be?
Look Good – Feel Good. Take pride in your appearance! If you know you’re looking good, then you are going to feel great too!
Know what you do, you do well. Believe that the job you do is important, and do it with enthusiasm. Positive thinking promotes enthusiasm, and enthusiasm promotes success. Not only will your positive thinking and enthusiasm buoy you up, it will also inspire and motivate others!
Develop courage and self worth. Make a list of your assets: your best qualities and put them down on paper. When you have done this, write a ‘sales pitch’ to yourself and tell yourself all the reasons why you are great and why you are going to succeed and be the best ‘whatever’ you can be. Now you may feel like a fool, but read this out loud to yourself at least once a day, and keep it in your pocket or purse so that you can remind yourself in times of uncertainty and fear. But before too long, you won’t need it too often at all!!
When you are feeling uncertain or fearful, ask yourself what a truly successful person would do in this situation then do it!
The bottom line is if you want things to change, then you need to make sure your thinking is on your side and not against you. It’s amazing how often we convince ourselves of our inferiority or worthlessness when with a little effort and creative thinking we could turn everything around and actually believe that we are capable, and we are worthy. Go to it.
Think you can, and think your way to the top!
Wishing all our clients and friends a safe and healthy holiday season this year!
Looking forward to seeing you in the new year, and here’s to a great 2013!
Five years ago there was a huge correction in the equity market and in the ensuing years there has been fallout.
Many of us had not experienced this before and our experience in this market led us to beliefs which we espoused such as , stay in the market, ride it out, get out, take advantage of dollar cost averaging, and so many more.
I have heard so many different ideas on why this has happened and what needs to be done to fix it.
It is not a one minute fix. We as a people are obliged to look at the results of actions taken so that we can become aware and have a greater understanding of how our actions fashion the results.
What do we expect?
Do we understand how we make money on investments?
Do we know the different strategies used by investors and investment teams?
Are we developing an industry or creating a gamble?
Would you rather put your money in term deposits or own part of the bank?
Are imputation credits of value in our portfolios?
How can they be used?
What are Bonds?
Who issues them?
What happens if there is a default?
Who actually owns the risk?
Are you investing or gambling?
These are only a few questions that can be asked.
Investments have developed over the years and investment providers have changed their offerings to capture the market. The use of terms which indicate that you can have the results without the risk is an interesting concept. I was at a conference where a provider was telling us about a new product which was ‘a capital guaranteed equity product’ When asked about the guarantee we were told that they had insurance to cover that. How much belief do we have in insurance?
The reason you get the extra money when you invest is because you are taking a risk, a calculated risk. Wanting high returns and expecting a guarantee does not work. Getting something for nothing does not work for long.
So in this dilemma how can Financial Planning be of value?
Financial Planning should take into account:
- your personal details,
- how you think,
- what you want,
- the situation you are in and
- then endeavours to take that information and
- look at the economic,
- the legal,
- the taxation,
- the Centrelink,
- the business implications and
- Marry all that together to develop a plan so that you can get what you want.
It truly is a profession that has developed over the years; it has had its share of interesting participants. Many people have benefited from clarification of their situation and have gone down paths that have been of benefit to them.
I love the industry; I love that fact that there is always more to learn and more to give. Challenges are part of life, learn from them and make your life what you want.
Don let FEAR rule, learn and use your money effectively.
Man, hasn’t technology and the embracing of it made the world smaller. We can have access to all kinds of things, purchasing products from all over the world, getting information at our fingertips without leaving our home, being able to have mentoring sessions via the internet, talking to family and friends no matter where they are, absolutely fantastic!
I was at a conference yesterday (it seems as though I am always at conferences) and we had live sessions with people from all over the world. Communications, haven’t they come a long way.
One of my goals is to have great financial advice available to anyone who wants it, around the world. With all the tools available to us that is exactly what we can provide, no matter where in the world you are. What a leap forward.
When the industry is saying that the price of good financial advice is going to become out of reach for most people, we are saying that this personalized financial service can be offered and accepted at a price that you can afford.
Just use the CONTACT us area and let us know how we can be of assistance to you, we will let you know what options are available to you.
A new service, to anyone who would like to change their FINANCIAL direction.
Talk to me about how we can be of service to you.
What a step forward.
I was walking through my garden this morning, it was pelting down with rain and I must admit that for a fleeting second I felt a little annoyed that it was cold and wet and that I needed to do some work, in the garden, in the rain. However, it was only for that fleeting second because then I reminded myself of the fresh luscious fruit, the vegetables that I could pick, the beautiful flowers, and the different smells that permeate through the garden, the great times with the grandchildren as they run around and are able to pick the fruit.
Once I looked at the reasons why I liked my garden so much, the cold and the rain and the inconvenience of it all vanished. In fact I actually start to appreciate the fact that I was able to do the weeding, the transplanting, and being out in such a beautiful environment.
Funny thing isn’t it; we have the ability to change our feelings just by where we focus our thoughts, just a change of where we focus our thinking.
What a wonderful tool we posses.
Success in any endeavour means focus, trial, effort, re-evaluation, ensuring you have all the information, the positive evaluation of the facts, and your determined effort to make it work. Some times we allow our thoughts and the outside influences of others, to take precedents over our commitment to our future.
Your success depends on your ability to concentrate your effort
in the persuite of your goal.
Success means so many different things to us, so the price we pay for that success is different.
What success do you want?
What are you prepared to do to achieve that success?
Do you know what steps you need to take to reach the success you want?
Enjoy your journey.
Take some of your precious time and really appreciate what you have and where you can go, it takes just one step to change direction if you choose.
It is interesting to see the long term affects of some of the decisions we have made, because of the way we think.
“Sitting at the table, mum age 87 has been taken to hospital, I am 63, lived in mum’s house for over thirty years, I am sipping my tea laced with lemon, looking back and wondering what I am going to do. My wife and I have made this house our home, we did not think the day would come. I have never purchased a house because I lived in this one. I have never saved because there was never enough; we used all the money we had on living.
Lemon tea, sweet with the honey, however, it does not make me feel better, I have a sister, the will states that everything is to be sold and divided equally between us. I am too old to borrow, I didn’t think. What am I going to do?”
What a result.
Being aware of the possible end results of the choices we have made may make you think and may be make different choices.
Sitting in my office, two young people sitting at the other side of my desk, like many others they have their dreams of owning their home, putting their children through school and continue living now and putting money away for their future.
They have been taught the 40 year financial plan and they are afraid that it is not going to work. So what is the forty year plan?
You go to school and get a good education
You get a good job
You work forty years
And then you retire
And live on a portion of what you could not live on in the past.
That is the bill of goods we were sold, and we are trying to make it work. We know it doesn’t work we have proof all around us.
When we are young we do not look at the results we want to achieve, I can tell you from experience that time marches on and unless you are consciously aware of this you wake up and wonder what has happened to your life.
This beautiful young couple with two young children looked into their future and became afraid, they had a glimpse of what their future could be if they continued to think the same way.
Do I want to end up not owning my home?
How am I going to live after I retire?
How am I going to educate my children?
How did we get in this situation?
What can we do to get out of it?
It feels so bad.
We think that if we borrow money, on a lower interest rate, our repayments are lower; we will have more money for day to day spending.
That is bondage thinking.
I was at a conference recently and one of the slides I saw showed a man sitting at a desk and a couple sitting opposite. The quotation on the slide read;
“I would like to take your short term crisis and turn it into long term suffering”
They have taken a look at where they are and where they were heading, they want a different direction.
Is there another way?
Can I find it?
Who can help me?
Good questions, what are your answers?
As I walked through my garden I felt real joy, the almond trees are alive with blossom; they are generally the first to bloom and the first to set fruit. It shows me that spring is on the way and I need to ensure that I have set the garden ready for the new season. It was not always like this. The natural state of the soil was clay, full of nutrient, however difficult to grow anything in. It took years of work, knowing what I had to start with and knowing what I wanted. The thing is; I wanted the end result more than I was concerned about the work that it took.
The beauty of age is that you have the wonder of hindsight, you can see the how the little decisions worked out, how being bold in the decision making process and enduring when you thought that things were not going ‘right’, actually worked out.
Do you have a feeling that you would like things a little different?
If the answer is yes then
Do you know what it is that you want?
If the answer is no then you are already on your right path.
Those are the questions that will start the process. Every step is important. A small change can have a huge impact on your end result. The biggest problem that most of us have is that we believe that it takes big steps to make the appropriate change, incorrect; it is the little decisions, little steps, every day builds that builds the life you lead.
Creating true wealth is built on every step.