www.invest.org.au

What harms you may just help you

2012-01-06T16:28:00.000-08:00

Are you (super) ignorant of how much money you could be making?

2011-12-27T15:20:00.000-08:00

Don’t be (super) ignorant

In arguably the second-most controversial section of the award-winning investment book, “Who’s Taking Your Money? (and how to get some of it back!)”, Chapter 13 opens by stating that, “some people are just intellectually inferior… to hardwood…”

We could possibly change that last word to “driftwood”, as many hardwood timbers actually serve a defined and structured purpose, unlike the soppy pieces of wood that simply drift through life aimlessly without direction.

It may be cruel but it is a harsh fact of life: people who set themselves toward a certain goal or task will generally achieve it (or a semblance thereof), whilst people who bob along as victims of tides and circumstance will not achieve much (unless you count having a story about how much of a victim they are in life).

To continue the watery metaphor, we could discuss those who design their route after reading maps and charts left behind by wise sailors (guidebooks by mentors) or we could look at those who get caught up in merely watching or reacting to the uncontrollable currents (current events, current affairs); but you get the point. If you’re a column reader, you will be a classic succeeder.

As a guest on an international wealth creation teleconference two years ago, I asked the hypothetical question, “if you could continue to do your current job, and receive 10% wage increase and then, after 20 years, receive a bonus free car, would you switch companies?” With one exception, everyone on the call suggested that they would happily move.

The notable exception was a multi-multi-multi-millionaire who asked the pertinent question: “What kind of car do I get?” This question is further proof that millionaires are not just ‘lucky’ opportunists: they think differently (and this is a skill which can be learned).

One man asked the wise question, “Do I get a Ferrari or a Daewoo?”, whilst the rest of the callers were simply content with a 10% wage rise and a free anything. A free $10 000 car would be OK, but a free $40 Million car would be nicer… (just ask Ben Stiller’s character in the movie “Tower Heist”)

My reason for asking the question was an analogy about superannuation and it proved the point wonderfully. Most people are ignorant of the power of compounding and they are similarly ignorant of the control which they can exert over what is, and what shall be, their greatest investment. Someone who works without thinking and fails to choose their super will choose to fail with their super.

The employer will put you into the “default” fund if you fail to choose an option. It may be “safe as houses” (hang on, haven’t house prices dropped by 30%?) and your retirement money may be as solidly reliable as government bonds (yes, those big complex things that many investors are pulling out of, as major world governments accumulate debt which they cannot pay).

The default “balanced” fund for one of Queenslands’ major superannuation suppliers has had a barely positive result in the last five years: if you put $1000 in there in 2006 you would now have around $1020. If you think that you would have done better sitting in cash in the bank, you would be correct, and cash is the default option for many self-managed super funds (SMSF’s).

There are thousands of employer super funds to choose from and thousands of people who create their own SMSF’s to further direct their control of their monies.

Of the $430 Billion in Australian SMSF’s, it is interesting to note that only around 5% of this money is in “managed” investments such as managed funds or mutual funds. It would seem that the wealthier Aussies prefer to direct their own paths (around 88% of the $400+Bn is in direct shares, direct property and direct cash or trusts). [ABS 2011]

That “the rich get richer” is a cliché only because it is true; just not in the way that you may think. Those who are richest in education become richest in assets: it is all about knowing where to put the money and when (again, this skill can be learned: http://bitly.com/WealthClock).

With a plethora of investment books around, you may find it hard to read a handful of them and make an informed decision. We’d also suggest that if 90% of them agree on a point, it’s possible that the majority is wrong.

It would take a true contrarian to take cash OUT of the banks when everyone else is putting cash INTO the banks. It would take an incredible übermensch with nerves of steel to take money from cash IN the banks and put it into owning stock OF the bank itself.

Instead of leaving your cash in the super default fund and earning 4% per year for 5 years in a row, or putting the cash inside the bank and earning around 4%, you could have put your cash into bank stocks a few years ago.

In the last 3 years, stock in NAB has gone up 50%, as has Westpac. Commonwealth Bank is up 100% from January 2009 to January 2012, and ANZ is a smidge behind the 100% mark. We will not even mention mining stocks.

You can tell the people who do NOT own stock in their own bank; they are the ones who are constantly whinging about “the bastard banks” and lamenting the price of bank fees. If you owned part of the company and you just made 50% or 100% profit, you would not be whinging about it. So change.

How many times can we say “take control of your own destiny”, “stop being a victim and become an investor” or “buy a contrarian investment book”?

No excuses: for those who do not have the capital or the means to commence a SMSF, there are many funds around which will allow you to choose your own investments or even purchase direct stocks and shares inside of your “off the shelf” super fund. Just because your own fund said that they cannot do it, that doesn’t mean it is impossible. You just need to ask someone else.

Not only have I assisted clients to purchase stock with just $1000 in their work super fund, I have also opened super accounts for my kids whilst they were under 12 years old (another thing most super funds will tell you that you cannot do).

Rather than be accused of labouring the point or preaching to the choir, we will let it rest for now with some pointed yet sagacious advice: read something wise and make a decision now for a better future. The choice of a Daewoo or the Ferrari at 65 is entirely up to YOU; but you must decide now!

Jeremy Britton is an independent wealth coach and business coach who advises clients on all aspects of wealth creation. Find out more or purchase his best-selling investment book at www.24HourWealthCoach.com

The luckiest country in the world

2011-10-29T17:49:00.000-07:00

The luckiest country in the world

“DownUnder” bucks the global trend to come out on top as world’s richest

Whilst America and Europe are harbouring concerns about “GFC Part Two” or a double dip recession, one little country has plenty of reason to celebrate.

At around 3% of the world population, Australia’s population footprint is tiny, but this “blip” on the radar for people is actually a “blimp” on the radar for wealth.

Australia is now ranked as the world’s wealthiest nation by a Credit Suisse re

The average Aussie is now worth almost US$250 000 net, around 400% wealthier than the average US citizen. The proportion of Australian adults worth more than $US100,000 is now eight times the global average.port, citing Aussie wealth figures far in excess of Japan, Singapore, Switzerland, UK and the USA.

The high wealth rate in Australia is attributed to the strong Australian dollar, property ownership levels and a robust labour market. It could also be said that most Australians were not as caught up in soaring debt, sub-prime loans and massive expenditure such as had been observed in the US and some European countries pre-GFC.

Australians have become wealthier in actual dollar terms, increasing by 300%-400% in a decade, even after adjusting for the improved Australian dollar and the fall in the $US.

“It can be hard for people to tell who is truly rich when they are looking at perceived wealth rather than net wealth,” says Australian wealth coach Jeremy Britton. “We may see the image of the so-called ‘wealthy’ in Ferraris and Porches without realising that many of these people may be leasing the expensive car with a high income and may not actually have much money in savings or investment.”

Britton says that the rising popularity of being “green” has also helped Aussies to save and accumulate money. “Helping the environment by recycling things in business and in the home has cut spending, leading to more actual held profits, both in the corporate world and in our own homes.”

“Of course, Australia has benefited greatly from its mining boom and our relationship with China, but an increased income is no good unless you actually save it and invest it. It would have been very easy for cashed-up Aussies to spend their fortunes frivolously, but most seemed to have accumulated the money quite well, compared to other nations. ”

The Australian Bureau of Statistics (ABS) classifies someone as a millionaire only if they have more than $1 Million in “investable assets” such as cash, shares or property equity. Figures of those who are making higher-than average incomes do not necessarily show any correlation to net wealth.

The most recent ABS figures show that the average combined value of a true millionaire’s cars are only $36 000. This would seem to suggest that most Aussie millionaires do not drive cars worth more than a small house, and it may suggest that frugality, rather than flashiness, is one of the keys to true wealth.

Jeremy Britton is an independent wealth coach & business coach. He is often found on the beach, Facebook, or www.24HourWealthCoach.com.

Media contact +61410 468378

Flood waters drain financial fun but long-term profits ahead

2011-02-02T17:35:00.000-08:00

Flood waters drain financial fun but long-term profits ahead

Recently the media has put much attention on the January Queensland floods, and yes it looks like the doomsayers will get loads of coverage from the February Floods as well. Much of the news media coverage is bad news and they almost never tell you what companies will make money next year (however we are happy to give you some general investment advice).

The Queensland floods are a blip on the radar as far as investment markets go. Some people may panic and sell their shares in insurance companies such as Westpac, QBE or Suncorp, but wise people will know that long-term profits are ahead.

Right now, millions of people are being reminded of the importance of insuring their houses and their possessions (yes, people in rental houses should insure their household contents for flood, theft and fire; it only costs around 50 cents a day to protect your beds, TV’s, washing machines, fridges and clothes).

Millions more people are also being reminded of the importance of having appropriate insurance! Although the media doomsayers have a field day beating up major insurance companies for not providing more comprehensive cover (covering stormwater damage but not flood damage), the policy-holders also need to take some responsibility. Note to self and others: have accountability for your own choices. Good insurance is not cheap and cheap insurance is not good.

Share prices of some of the major insurers may have taken a short-term dip due to panic selling, but the insurance policy makers know that a major flood will come once every fifty years and they plan for it. They have huge stockpiles of money stored up to pay out claims, and this is what they do.

The insurance companies then sit back for the next fifty years and pull in millions of dollars in premiums and store them up again, waiting for the floods in 2065. Rest assured that the insurance companies will make massive profits going forward, just as they did in the 30 years after the Brisbane 1974 floods.

Two massively important tips for this month, so write them down and tell your friends; we cannot over-emphasise the importance of these two wealth creation tips.

1) Protect what you have before trying to get more. Insure your house contents, your car, your life, your income, your partner’s life and your partner’s income. If you cannot afford to insure it then you need to sell something you don’t need so that you can afford to protect what you really want.

2) Invest where you spend. If you insure your car with AAMI, your boat with Mariner, your bike with Shannons, your mum’s car with Australian Pensioner’s Insurance and have a mortgage with Suncorp then stay tuned. Suncorp owns all of the forementioned companies. You may do well to invest into a few shares in the company where you are sending so much money (parcels of shares start at just $500).

Remember that this is general advice for all readers and may not be appropriate for YOU in your unique circumstances. To receive tailored investment or insurance advice for your own situation, contact the author or contact your bank or your financial planner. Initial appointments are generally free. Investment fees and some insurance premiums may be tax deductible.

Jeremy Britton is an independent wealth coach, advising clients on shares, property and business. For more information refer to www.24HourWealthCoach.com

Making your New Year’s resolutions “sticky”

2010-12-31T20:15:00.000-08:00

Making your New Year’s resolutions “sticky”

It’s that time of year again when everyone expects you to make some life-changing decisions and finally get your life in order. Your well-meaning friends and relatives may have even made some New Year’s resolutions for you on your behalf… Bless ‘em.

Be prepared: if you tell your friends that you are going to clean out your wardrobe or donate 10% of your income to charity, they may well counter with, “Have you thought about adopting a child from Nigeria?” or “Why don’t you join a gym; then you can wear all your old ‘thin’ clothes again?” Again, Bless ‘em.

It is far easier for your friends to plan your life for you, simply because they do not have to live your life or deal with the consequences of your actions every day. Here are some ongoing resolutions that you may like to use, remembering; it’s your life.

1) Resolve to take it easy on yourself: Don’t aim to run 5 kilometres a day if you are currently doing zero. Start with running to the corner and back, then running around the block. Build yourself up by increasing the distance by 5-10% per day. Aim for incremental improvement, not perfection. An increase of 3% per day will mean 1000% improvement in one year.

2) Pay yourself first. Resolve to set aside 5% of all incoming money and put it into a separate account. After one month, take out half the money and gift it to your favourite charity or spend it on a guilt-free gift for you. After the third month, see if you can increase the 5% to 10%. Surplus funds that are not used for monthly gifting will become the cornerstone of an investment that will bring further income.

3) Listen to the advice of others but then act with your own intuition. It’s your life and you have to live it. Sometimes that means that you have to make your own mistakes and find out for yourself that the stove was too hot to touch. Mistakes are how we learn and our intuition is built up over time. Resolve to listen to what others THINK and then act how you best FEEL.

4) Resolve to pay one random stranger a compliment every single day for 30 days. You can tell the postman you like his hair, tell a lady that she has a nice dress or compliment a motorist on their choice of car. People love to be noticed and if the compliment comes from someone they do not know it makes them feel fantastic. This feeling, in turn, then shines onto you. “As you sow, so shall you reap.” You may receive an increase in confidence from talking to strangers, better self-esteem, or make new friends.

Remember to make it easy, make it incremental and be gentle on yourself. Rome wasn’t built in a day, and your new gym body, your million-dollar savings and investment plan or your new habits will be built one small step at a time. Even a 0.3% daily increase in your health, wealth and relationships will mean that your 2011 will be 100% better in all areas than your 2010!

We wish you a Frugal Christmas

2010-12-05T18:30:00.000-08:00

Former years have seen rises in personal wealth (or the illusion of it), with rises in share markets and property prices but 2010 saw mostly rises in unemployment and dramatic rises in interest rates. Two of the Big Four banks raised their interest rates higher than the Reserve Bank; time to vote with your feet, Australia!

Considering that the festive holiday season (regardless of your religious beliefs) was originally said to be all about Jesus, we can always claim to be following biblical precedent when we are frugal at Christmas.

Consider that 2000 years ago, according to tradition, God gave the world a small baby who was destined to be the saviour of the world. God did not send Rambo or Chuck Norris to save the Palestinians from Roman slavery, nor did he give a billion buckets of gold. The baby in a manger was a seedling gift of hope.

In honour of this tradition, we suggest that you give a small gift that means big things will come. Spread some frugality this year and also help to spread HOPE for the New Year. 2011 just has to be better than 2010, right?

1. Blooming great gift: Consider a few packets of seeds instead of a bouquet of flowers. They are cheaper to send through the post & will grow in value over the next few months, unlike flowers which will wilt & die within a few days. Those in small apartments or units can be given something small for a window box or movable planter pots. Also consider edible treats such as fruits or vegetables. There are also many species of flowers which are safe to eat, such as chrysanthemums, roses, daisies and more; check with the nursery and deliver something beautiful, tasty and practical!

2. Handmade Gifts: homemade jams and other homemade baked goods from the talented ladies and something creative from the talented blokes. Recycle some old household goods or get carving, whittling, gluing or wiring. Nothing says Christmas love like investing your precious time (not just your money) into a gift. We once received a model aeroplane made from empty beer cans and one created from old wooden clothes pegs. Novel, fun and a good talking point.

3. Newspaper Gift Wrapping: Wrap children's birthday gifts in old comics for a fun twist. A fancy red ribbon would go nicely with black and white newsprint for adults, or even "brown paper packages tied up with string" for a “Mary (Poppins) Christmas”.

4. Christmas Presence: Giving someone your time is a very valuable thing and memories last a long time. You could give a couple the gift of a night off by babysitting their kids, or you could pack a picnic basket for a single friend to have an afternoon together chatting and drinking wine in an unusual location. Most mums would love an hour of housework done while they relax in the bath and dad would love for his car to be cleaned or shed tidied.

Whatever you decide, keep it simple, practical and keep the love central to your theme. Holiday seasons are all about spending time with family, friends and loved ones, not spending money for the profits of big banks, toy companies and retail stores.

Jeremy Britton is an independent wealth adviser. For more tips, tricks & advice go to www.24hourwealthcoach.com. Article also featured in Strike publications, Ipswich City News

Interest rates are INTERESTING, part 1: both sides to the coin

2010-11-04T01:39:00.000-07:00

Rising interest rates may seem like a burden for Australians, particularly those who are paying off a large mortgage. The thing to remember is that whilst the family picnic may be ruined by wet weather, the farmers love the rain! More rain will eventually mean more food and more picnics later on.

Examples of people who may be affected positively by interest rate rises are investors, particularly self-funded retirees or those who are about to retire (such as the "Baby Boomers"). These people will now be receiving a higher income which means that they can spend more money on new goods and services; possibly in your workplace.

Yes, the average home-owner with a mortgage will have to spend more money on their bank loan, but this will have a flow-on effect in the greater economy. Consider that without an interest rate rise, the economy may overheat, which causes further job losses. A higher interest rate can be a good thing if your homeloan costs more but you do get to keep your job!

At present, interest rates are at record lows in the UK and the USA (below 1%). We will look more at why this is in “Interest Rates Part Two: how to make $50 000 for nothing”. These economies are suffering badly and job losses are at record highs. The economies in Australia and China are weathering the economic storms more strongly, and both countries have just raised their interest rates.

International investors are strongly attracted to Australia with its stronger dollar, more secure economy and higher rates of return on investment. Investors are attracted to China for similar reasons. Investors’ money is rapidly leaving the USA & UK (earning 1% interest) and flooding to Australia and China to be invested at 5% or greater. This international investment means more jobs, even if the mortgages are going up.

Whilst mortgage rates may be high for the foreseeable future, homeowners are advised to cut back on unnecessary expenditure, such as cable TV, cigarettes, alcohol, work lunches or anything that is not essential or anything does not MAKE you money or SAVE you money. Ensure you do essential maintenance on the car but hold off on the new in-dash DVD player.

Consider doing an imaginary cashflow projection based on a 10% mortgage; you will soon see areas where you can cut back. You can pay 10% payments off the mortgage anyway; this will put you in front on the loan, impress the banks and be good insulation if anything unexpected should occur.

Next article: How to make $50 000 for nothing & Higher interest rates just like 1992: where to invest for the best returns beyond 2015.

Saving versus Investing: what's the difference?

2010-10-25T19:47:00.000-07:00

Banks can be good: if you own them

Saving versus Investing: what's the difference?

Many well-meaning people, including parents, teachers and financial advisers, tell you to save.

"Just save," they say, without telling you where or how or why. "Save 10% of your money and you'll be rich one day."

It sounds like good advice. Is it? The question is, did THEY follow it? Did they save? Are they rich? Does it work?

Many would be tempted to say “no”. Trying to save is hard. For a start, you have to go without things you can see in order to get something you cannot see. For example, at the age of sixteen and working your first job, you may have had the choice to go without a new stereo in order to "be rich someday". Forget it: most bought the stereo that they could see.

In addition, saving does not give you leverage. It is sort of like trying to pick up your fat aunt and lift her off the ground. It is slow, sweaty, and not very glamorous. Using leverage, you could put your fat aunt onto a seesaw and use a fulcrum to lift her up. It looks so easy once you know how.

“Saving Cash” can waste your time, and your money!

Saving money into a standard bank account (back when the bank didn't charge you fees to lend them money) took a long time.

Imagine putting a crisp $10 note into the bank back in 1990. Wow, that was a lot of money, back then. Ten dollars in 1990 was the price of two student movie tickets, or four hour's work flipping burgers at McDonalds.

Fast forward to today, and the same crisp ten dollar note would be slightly larger. Ignoring the applicable bank fees, without allowing for taxes, and just counting interest, you would now have about $15. Nowadays that does NOT get you two student movie tickets, and is NOT enough to pay someone for four McHour's work...

What has happened is that inflation has traveled faster than bank interest. Although your money appears to have grown, the purchasing power of the money has shrunk.

[For more lessons on inflation, read Chapter Two of “Who’s taking Your Money?” or check the internet or library. In 1930’s Germany, workers were paid twice a day due to rapid inflation. In Zimbabwe in 2009, workers were paid in petrol due to the “zimbillions”…]

Banks can be good: if you own them

Imagine now, that when you walked into the bank back in 1990, and instead of saving into a bank account, you handed your $10 to the manager and said "Hey buddy, I want to buy some shares in your bank."

Depending upon the bank that you walked into, you may have received one Commonwealth Bank share, two of the National, five of the Westpac and so on (find out what the 1990 share price was for YOUR bank).

Fast forward again to the present and see what your $10 would be now worth. Before you do the quick math and say a figure of between $40 and $100, remember that bank shares do not just GROW in price, they also pay you income each year.

This means that your seedling $10 which you planted did not just grow into a bigger tree, it also produced fruit. Depending upon whether you picked the fruit or let it drop to seed and grow more trees, you may have far more than $100 accumulated.

If your $10 bank share investment was now worth $100+, you will find that you have more than enough money to take half a dozen students out for a movie, and possibly a beverage as well, or enough to pay a McSoldier for two whole days of flipping burgers...

What has happened here? Why is your money so much more? The amount has grown substantially, exponentially. You have become an Investor, not just a Saver. When you save, you lend the bank money. When you invest, you OWN the bank.

In the last twenty years or so, interest rates have come down from 15% on cash to around 5%. And yet the bank still makes massive profits. In 1992, a Westpac bank share would have cost you around $2, and you would have received around 15 cents in income (dividend or "share rent"). In 2010, the same share would be worth $25, and you would receive around $1 in income. This income, of course, increases steadily each year.

Safe as Houses? More Profitable!

To put the above investment into (a strange) perspective, imagine buying a house in 1992 for $20,000 and renting it out for $30 per week. In 2010, the same house would be valued at $180 000, and paying you $200 per week...

For a start, there are not too many houses which you can buy for $180 000 that return $200 per week. Certainly there are very few houses that have had such dramatic growth on their value and their income.

It would be a challenge for you to find a house that could rival the shares for ongoing costs… The difference between the two is, having to spend absolutely nothing on maintenance, insurance, rates etc.

Why do we love Australian shares?

Because, deep down, we are lazy.

We do not want to paint our investment, mow its lawn, collect its rent, pay its rates, advertise and interview tenants, and we certainly do not want to go to the trouble of paying taxes on its income every year... And if we ever decide to sell it, we do not want to have to hammer a sign into the ground, call multiple agents and then put coffee on as hundreds of hopefuls traipse through it and look at it...

We want our investment to sit quietly and grow, paying income that is tax-paid, having no maintenance, no ongoing costs, and not taking up too much room. We want to be able to sell it in a day with one phone-call, or take it with us when we move. Easy!

Lazy Investors of the world, unite!

You can “own the bank” by buying shares in your preferred bank, starting with as little as $500. For more information, go to www.24hourwealthcoach.com & click on “Open an Investment account”, call 1300 762 624 or buzz your favourite broker.

This article was part-published in PROPERTY section of Ipswich "City News" October 2010 & is reproduced here in its unedited entirety. http://www.defencenews.com.au/inbrowser.aspx?id=16

Business Swap Sunshine Coast 2 min promo

2010-09-16T17:44:00.000-07:00

Zimbabwe Wedding & Honeymoon

2010-08-27T07:30:00.000-07:00

Slideshow movie of Jeremy & Yvie's wedding & honeymoon in Zimbabwe, Africa; set to Toni Child's song "Zimbabwe"

Wealth or Poverty? Choose your VIEW

2010-06-24T21:58:00.001-07:00

Can Happiness make you Money? Can you have a Millionaire Mindset simply by changing your view of Wealth?
20 slides will change the way you look at your life

Wealth or Poverty? Choose your VIEW

View more presentations from Jeremy Britton.

Creating Infinite Wealth, or making your first million: is it all about Strategy or all about Mindset?

2010-05-10T01:16:00.000-07:00

Our new friend is a multi-multi-millionaire now, but a few years ago he was homeless for the third time after a third failed business. Harv said something that many millionaires already know and that most poor people do not yet realise:

“If you want to change the FRUITS, you have to change the ROOTS.”

For almost 20 years Jeremy concentrated on financial planning, teaching strategy to thousands of people. If you want to learn the best techniques for share trading, stock picking, investing, or flipping property, creating wealth or reducing tax, just ask!

But the more he tried to learn from millionaires and billionaires so that he could teach the strategy and techniques to the general public; he discovered that there was even more to learn… There were many secrets to creating wealth & also one big secret to keeping it!

In order to get the techniques of wealth creation to more and more people, Jeremy wrote newsletters, blogs, books, articles for newspapers and magazines and held seminars all over the country.

As well as domestically, we sold books and newsletters in the USA and Asia; thousands were learning the secret strategies of millionaires… so why were they not rich?

“If you want to change the fruits, you have to change the roots.”

After several failed attempts at business, Harv realised it was not the fault of the government, the clients, his advisers or his strategies. The failures emerged from deep inside of himself.

If there is a deep-seated subconscious aversion to being wealthy, all the strategy in the world will not matter. Perhaps that is why around 95% of lottery winners blow the money: deep down, they may not feel worthy.

Perhaps this is also why millionaires who have been bankrupt (Donald Trump, Larry King, Robert Kiyosaki, Kim Basinger, Tia Carrera, Walt Disney, Willie Nelson, Don Johnson) always seem to bounce back: perhaps they DO feel worthy.

The 24Hour Wealth Coach team can now assist you with your MINDSET as well as your STRATEGY.

Change your roots & change your fruits.

Motivation, mindset, NLP, EFT, meditation and hypnotherapy are now offered to you alongside the traditional techniques of wealth creation.

Meetings can be done in our main street offices, over the phone or on Skype. Initial consultations are still free, so call today to make a convenient time.

Office: (toll-free Aus) 1300 762 624
Skype: jjbritton
Mobile: (Int'l) +61 (0)410 468 378

The Rise of the SUPER Women

2010-03-11T18:08:00.000-08:00

The rise of the SUPER Woman

Women could soon be retiring with more money than men

Today’s women are leading the men in the art of making their money work for them (whilst the men seem to be still “working for the money”).

More women than ever before are choosing to participate in the Self Managed Super Fund arena, and now for the first time, the female investors outnumber the men!

Australian Business Register figures show that in the 35-44 age bracket, there are almost 16% females in SMSF’s, compared to just 13% for their male counterparts.

The figures are higher in the 45-54 age bracket, with 28% of women in SMSF’s, as opposed to just 25% of men.

Again, in the pre-retirees age of 55-64, female members of SMSF’s outnumber the men by almost 35% to 34%.

For the first time, women’s super balances may exceed men’s; due to the females taking more control.

Although traditionally women spend less time in the workforce due to raising a family, and even though the balance of the average super fund is still higher for a male ($107 000 compared to $81 000 for women), be prepared for this to shift.

Last year, a man in the default balanced option of an Australian super fund may have been fortunate enough to gain 11%. A woman who chose to have a SMSF invested into her own choice of property, shares or index funds could have made returns of 34% or up to 93%.

Based on performances such as these, and the potential for greater returns from greater choice, the average woman could soon be retiring with more money than the average man, not from working harder or longer, but by working smarter.

“Women will ask for directions (regarding money), something men may fail to do.”

Wealth coach & financial commentator Jeremy Britton says that increasing numbers of women are asking for more control and more options with their investments.

“Women are now more likely to start asking questions if their money is not performing, and more likely to look closely at what is available to them as an alternative. This could include Self Managed Super Funds, gearing inside of super, direct shares, i-shares, warrants, options, CFD’s or index funds as opposed to traditional managed funds”.

“For women, this (going to a financial adviser) may be like asking for directions; something that men may feel less confident doing.”

“Perhaps the men do not wish to request financial advice for the same reason that men generally do not ask for directions, they often seek less medical advice and men will generally not ask for help whilst fixing things. It could possibly be seen as less manly. What the men have to realise is that no-one can be an expert on everything, and it is OK to seek advice on your money.”

Statistics tell us that the women are making more informed choices about their financial future, and no longer relying on a man or the government to look after them.

With more marriages ending in divorce and the growing number of women in the workforce and in business, the trend could be for women to accumulate more money than the men over their working life.

This accumulation of more money is despite the fact that women are still likely to earn lower wages than men in a similar role, and more likely to have shorter time in the workforce, due to raising children.

Perhaps if the men were bold enough to ask for assistance (directions), then they too, could make more money in less time. It will be interesting to see which occurs first: more men asking for financial advice, or women accumulating greater retirement savings than the men.

Whilst having a SMSF is not a guarantee that you will make more money than someone without a SMSF, the growing number of female SMSF owners can be an indicator that many more women are asking for what they want in the financial arena.

Investors (male or female) who ask questions, seek education and request financial advice are more likely to make better money in future than those who do not seek advice.

WARNING

The above is general advice only. Always deal with a qualified and licensed professional who can advise you on your own unique situation. Jeremy Britton is the author of “Who’s Taking Your Money? (and how to get some of it back!)”. The book is available in bookshops or online & has a money-back guarantee.

For more information or reader offers please call IMP Pty Ltd on 1300 762 624 or Jeremy Britton 0410 468 378. www.24HourWealthCoach.com

What is an i-share, update 2010

2010-02-04T16:52:00.000-08:00

What is an i-share? (What is an ishare?)

Where can I find returns of 50%, safely, from home?

It has been over 18 months since we published the article "What is an i-share?" on the internet blog and the news travels slowly for some. If you would like to see the original article, you can scroll down or press CTRL+F & type in "what is an i-share".

[Interestingly, if you go to Google and do a world-wide search for "what is an i-share" using the quotation marks, you will only receive TWO matches...]

[When is the last time you typed in something to Google and only received two matches? Crikey, you can find over 900 000 references for "fried ice-cream recipe", almost 2 million pages for "drop forty pounds by Christmas" and over 400 000 references to "Buddha's testicles"... (no offence to anyone, regardless of their religious beliefs: we just thought of the most obscure things that we could think of to see if we could return a result of only two matches in Google!)]

Why is there so little information on i-shares, particularly when they are so fabulously GOOD?

In the year that was 2008-09, we experienced the (so-called) "Global Financial Crisis" or "GFC". This was a year of massive share-market drops, billions of dollars wiped out of super funds (apparently) and personal investors cried into their coffee as stockmarkets around the world plummeted like a hot rock...

Or did they?

If the "GFC" was truly a "Global" event, perhaps somebody forgot to translate the memo into languages other than English...

[It is oddly amusing to watch the "World Series" of baseball in the USA, knowing that only the US ever competes in it: no other country has ever won the (so-called) World Series of Baseball.]

[Also amusing is the western world's "World Music Awards" and Movie Industry Awards, which predominantly showcase singers and actors who speak English and work in the USA, UK, Australia or Canada.

Somehow we often forget that movies in China or India will draw crowds 100 times greater than movies in English, or we forget that artists singing in Asia will sell many more millions of albums than artists in the USA or UK.

Remember that China & India are 38% of the world population; USA, UK, Australia & Canada all together make up only 6%. And now back to our feature presentation...]

If the "GFC" was truly a "Global" event, perhaps somebody forgot to translate the memo into languages other than English...

In the "Global Financial Crisis", the US market dropped over 50%, the Australian market dropped over 50%, Europe and the UK fared worse... but what happened in the rest of the world?

China and India ALONE make up almost 38% of the world population; and they are still having more babies. Asian economies are not just growing their populations, they are growing their workforce, their output, their GDP and their business income.

Whilst the US market and the Australian market were going down 50% last year with the "GFC", what was happening in other countries?

We used to hear about the "BRIC" economies, what happened there?

Good question, thanks for asking. While the "rest of the world" (the ones who speak English) were showing negative returns, the average of the (Brazil, Russia, India & China) "BRIC index" posted a return of positive +93%.

Can I invest into BRIC from home?

Yes, you can actually buy the indexes of these countries (or the combined BRIC index) quite easily on the Australian or US stock exchange. To open a broking account for no charge, go to www.24HourWealthCoach.com and click on INVESTORS at the bottom of the page. Trades start from just $19.

What about returns in other economies?

Whilst the English-speaking world was reporting doom & gloom in the newspapers and watching stocks fall by 50%, the BRIC index posted +93%. The available index in China posted a healthy +52%.

The available index in Hong Kong returned investors +60%. Yes, this one is available to both US investors and Australian investors

Other "future emerging" economies returned +46%. This doesn't sound so impressive, coming off the back of China's +52% and Hong Kong's +60%, but remember that we are comparing to the average reported GFC return of around minus -50%.

That disparity reflects an almost 100% difference in returns between the "average" investor (who may have been invested into the default fund for super, or an average managed fund or stock portfolio) and the "educated" investor, who may have followed our advice 18 months ago and decided to invest into other economies.

But wait, there's still more...

OK, so BRIC is beautiful and Asia is awesome, what other areas should we watch in order to make lots of money in future?

As investors and consumers look for better returns on their money and better bargains, we expect much more outsourcing to occur.

A few years ago, the average Chinese wage was around $1 US per day. With major corporations opening factories all across mainland China, workers found that competitors would "bid up" the daily rate in order to get more workers.

Over the last five years, an enterprising Chinese worker could have seen their earnings lift from $1 per day to around $1 per hour. Some Chinese workers now receive over US $2 000 per year for their work (2010 Bureau figures).

This rate is still far lower than the average worker in developed countries, BUT there are still some companies who want to pay less than this hourly rate.

If you were a major manufacturer of mobile phones, cars, DVD players and plasma screens, where would you put your factory?

You could put your factory anywhere you liked, but if you employed US workers or Australian staff, you could be paying $40 000 to $50 000 per year. The lower rates of pay in China ($2 0000 p.a.) are a big part of the reason why "everything is made in China" and major companies can sell products more cheaply than previously and still make massive profits. (Consider how much cheaper most electrical appliances are now, compared to five years ago).

Show me the MONEY!

Remember that you heard it here first, and remember to take some action on the new information, otherwise it is just hearsay. No-one wants to hear you say "I knew ten years ago that China was going to be a major economic super-power". That is like taking no action and then telling everyone that you knew the winner of the race after it is over.

Put your money where your mouth is, so instead of saying "Yes, I knew that" long after the event is over, you can say "I just made $500 betting on that winner" or

"Yes, my investment in China back in 2001 is now up 387%"

[True story. After a trip to China in 2000, Jeremy invested into a "Who's Taking Your Money?" stock and sold out in 2007 for over 450% gain. Buy the book & get a Money Back Guarantee here. ]

Is the Chinese boom over? Not by a long-shot. China's growth will continue, albeit at a steadier pace. There may be other areas in the world who are ready to boom very quickly, just as China did.

Now that the average wage in China is increasing, where will the factories go? Who will be making my digital camera in 2015?

Looking at where the big corporations may go to build their new factories is a matter of research and guessing. So, we like to just look at the "early adopters" and see where they go, because we know that where Nike goes, the rest of the big corporate world may eventually follow...

Rather than flying around the world chasing corporate executives in Lear jets to see where they land, we use the internet. You can readily find out the increasing GDP of a country, its wage growth and the growth of its local stock market, all from your own home PC.

While stocks in China grew at 52% over the last year, who did better?

To mention just two, Brazil's stock market index was up a whopping 128%, and Peru returned a healthy 104%.

Wait a second, Did you say "Peru"? As in Paddington Bear, Peru?

Yes, Peru. It was thirty years ago that China was closed to the world, and not one tourist had ever set foot on the Great Wall. Twenty years ago, the USA was the world's most prosperous nation who sent money to "the poor Chinese" to feed the starving primitives. Ten years ago, no Chinese citizen could own a car. Five years ago, the USA imported ("bought") from China $243 Billion worth of goods and exported ("sold") just $41 Billion, netting the Chinese a US$200 Billion profit from USA alone...

In 2010, the USA owes China over $780 Billion... An amazing turnaround for the once-poor nation to be lending almost a Trillion dollars to the USA. Now that the Chinese own almost 25% of the USA, will they continue to trade?

Absolutely. The Chinese know how to make money. But as US factories are forced to pay up to $2 000 a year for skilled Chinese workers, they are looking further afield for labour forces. Peru and Brazil are countries that offer cheap labour. Wages for a "garment cutter" in Peru are just $180 per year. A personal assistant can be had in Brazil for just over $120 per year.

Your Levi jeans that are currently designed in USA and made in China could soon be made in Brazil or Peru.

Within the next few years, "Made in China" may no longer be so wide-spread, just as "Made in Japan" was prolific before 1997 and is now scarce.

Australian & US investors can access investments in these newly emerging economies by buying the Index of that country or region. This is like buying a basket of the top 25 or top 100 shares and is much safer than buying an individual company.

The ("i" being for international) i-share code for investing into the Chinese index -- from America is FXI, from the UK is FXC and from Australia the Chinese index trades on the local stock exchange as IZZ.

For Brazil, BRIC, China, Hong Kong, Peru and other codes, plus a list of their performance, google i-shares or contact us at www.24HourWealthCoach.com.

Seriously? What the? Wait... Peru? The Peruvian sharemarket is up 104%?

Yes. We are not promising that any of these future emerging economies will be "the next China", nor do we promise that past performance will continue. We just look at what is happening, what has happened and try to draw a line to what is likely to occur in future.

Wages in China, although having grown dramatically, are not yet on par with the western world. This may indicate that China has some growth up its sleeve and a long way to go over the next decade. China could possibly sustain growth from 5% to 10% year on year for a long way yet. Ditto for India.

Having said that, growth in the other third world countries may supersede China and India in the shorter-term. Judging by recent performances, they are doing very well and still have a way to go.

WARNING

Invest wisely and safely; we suggest that i-shares are a small section of your portfolio as the emerging economies carry higher risk than established countries. Do not invest all of your money into one region or one index; spread the risk.

For further information or to start investing overseas, contact your existing broker or a financial planner who can advise on i-shares, or visit our website or call 1300 762 624. Be wise enough to take care and sensible enough to take action.

Investment Management Professionals Pty Ltd ABN 37 115 359 316, Corrporate Authorised Representative #306558, WealthSure Pty Ltd,

ABN 93 097 405 108, AFSL 238030. www.24hourwealthcoach.com

Malaysia 330 am Sunday ---- Free seminar -- save 65% on investment fees

2009-10-05T20:09:00.000-07:00

Crazy People do sane things

You dont have to be crazy to do this -- but it helps!

Your Life is in Good Hands -- TRUST ME, I'm a Wealth Coach

KUALA LUMPUR; Malaysia 0330 am ---
Jeremy Britton

It's 330am on a hot Sunday morning & I am too excited to sleep.

I am sitting at a free WiFi spot at the airport waiting for my connecting flight back to Australia.

My initial flight was delayed a few hours and changed gates several times. Now there are hundreds of people sleeping on park benches, concrete and steel chairs waiting for a plane that will not arrive for five more hours...

It is the end of Ramadan & full Moon Festival. Hundreds of Hindus and Moslems are sleeping in the streets. Even the man asleep in the toilet did not wake when I took his photo!

In the last few days, your intrepid investment guru has lived through bouts of infection, sky-diving, level 6 earthquake & being rescued from dangerous surf by a team of lifesavers.

And you thought that YOUR job was risky!

IMP also opened a new office in the main street of Caloundra & has been invited to open an office in Poppies Lane, Bali... Your input is invited on this one, most definitely!

More
The point is, and I do have one
There are two reasons why I cannot sleep.

One is because the Aussie investment market is picking up so strongly on the back of Asia. It is one of those times when you will say "remember when" in a couple of year's time...

It has been three years since we predicted the market crash from the USA in "Who's Taking Your Money?" and we also predicted an Asian & Australian-Led Recovery cycle.

We must say, categorically, for those who do not travel or for those who watch CNN or Aussie TV news: THERE IS NO RECESSION IN ASIA.

The largely US-fed news services mostly carry economic data that is irrelevant to Australians who live in the middle of the ASEAN region.

Indonesian tourism is up 400%. People here from Finland, Norway, Holland, Germany & other non-US or non-English backgrounds are not aware of a downturn.

The Aussie market is up by OVER 50% in six months!

Much of this is to do with our strong ties to Asian trade and our Asia-centric government fiscal policy.

Just as we all remember taking nail-files on planes before September 11, 2001; this will be the time that we remember when the Asian economies finally emerge larger than the USA.

Where were YOU when China, India & Australia made more money than the USA?

Were you invested or were you waiting to see what would happen?

Call the team now for a portfolio review to move your funds out of US managed funds & into something SAFER!

New Caloundra office 1300 762 624

International +61410 468378
More

Four am & still firing on 4 cylinders
My second reason to be excited before dawn on a Sunday is our new LifeStyle seminar series.

Many investors will make a million dollars from the emergence of the new Asian markets; but how do they KEEP THE MONEY?

Divorce or disease can easily cut 50% of your investment capital -- no matter if the investment market is doubling...

With our LIfeStyle Investment seminars we offer free advice on how to INVEST INTO YOURSELF.

There are tips on health, relationships, happiness, spirituality, as well as how to make the most from your business, work, family & TIME.

Come and learn from great speakers how to make your money COME, GROW & STAY; all the while you can make your life happier & your relationships better & your body healthier!

More
Tax Deductible Weekend Getaway
You are invited to join us for a
FREE BUSINESS SEMINAR &
FREE INVESTMENT SEMINAR

Book now for 10 day's time & receive a free weekend at the beach!

Date: Friday October 16th
Venue: LIM office, 1/110 Bulcock St Caloundra
Time : 645pm
Fee : complimentary

Brisbane /Toowoomba clients may have to take a half day off work &/or stay overnight in the nearby motel. This may be a tax deductible expense to you.

Presenters will include Rohan Toll, "The Business Bouncer", Cath Campbell "The Dragon Tamer" who slices through stress with ease and grace, and Jeremy Britton, the 24 Hour Wealth Coach; fresh in from Malaysia.

You may also see the concept of CREATING INFINITE WEALTH in the new Millennium.

All guests are entitled to use the LIM Library & receive a free portfolio review or loan review.

You can SAVE UP TO 65% --- GUARANTEED!

Please book by calling 1300 762 624 or emailjjbritton@gmail.com

Now, to get some sleep and dream of sunsets on the beach... 8-)

Stimulate yourself with FREE MONEY from the Government

2009-05-05T20:44:00.000-07:00

Apparently there has been some kind of downturn around the world, and even though Australia is not affected as badly as the UK and USA, our government is handing out FREE MONEY, courtesy of the Aussie Stimulus Package.

You can get some, yes you can!

Disregard the limits that the news told you and get creative. There are many ways of adjusting your income to get free money: TAX TIME IS COMING!

Plan ahead now!

Would you like to get a $5 000 tax cheque?

Would you like to receive a $12 000 investment for FREE?

Would you like some “Ruddy Money” from the government?

Before you say “that’s impossible” or “I don’t qualify”, just consider that there could be a way to do this… if you can only discover how, and have some expert advice or assistance.

Peter Frampton* is a client who earns $142 000 and will pay almost $45 000 in tax. He would like to pay less than $30 000 and can reduce his tax in several ways:

1. Borrow $500 000 to buy property or shares and pre-pay $37 000 in interest.

2. Borrow $400 000 for a Capital Guaranteed investment & pay $53 000 interest.

3. Borrow $37 000 to invest into a tax-effective investment.

Even if there may be limited risk, the first two options will tie up hundreds of thousands of dollars for up to five years. The third option is a smaller investment, with less capital risk and uses “one-off” money with no ongoing expenses required.

Investing into something tax-deductible also means that Peter may qualify for the Australian government Household Stimulus Package & receive Family Tax Benefit Part A. This could add up to over $12 000 in extra refunds & entitlements for Peter and his family.

Andrew & Cheryl Coates, a family where both partners work* could borrow from their mortgage, contribute $12 500 into a tax-effective investment and receive tax refunds and entitlements worth just over $12 500… This in effect grants them a free investment!

The current economic situation will not continue forever, despite what the media may tell you. The current financial circumstances are almost an “action replay” of what occurred in the early 1990’s in Australia. Real estate boom followed by bust, interest rates that climbed dramatically and then halved within a few months, sharemarket crash and so on. (For more on economic cycles, refer to our website for free tools or a free book.)

The difference in the repetitive cycle this time is that the Aussie government is throwing much more (Ruddy) money into the system, and so far, Australians (and the Chinese) are not in a recession. The USA and the UK are in dire straits but so far, we are doing OK.

How can YOU make money out of the global financial crisis?

You can take best advantage of the current economic situation by following the advice of legendary investor Warren Buffett: “The best time to invest is when others are afraid”.

· You may consider investing into property now that interest rates are almost half of what they were in 2008, or if property prices have fallen to more affordable levels in your area. (Call IMP to check for home loans or investment loans starting at under 3%).

· You may consider investing into some good quality blue-chip Australian shares now that they are practically half price. (Call IMP to check find out which investment is best for you, as cheap doesn’t always mean good value!).

· You may consider investing into a government-approved tax-effective investment to secure a 100% tax deduction, maximize your Family Tax Benefits and boost your tax refund. (Call IMP to check what you may be eligible for; even if you think you cannot qualify. There is more than one way to skin a cat!)

You may know of some people who are wandering around, saying things like, “I should have bought a house in 1999”, or “I should have sold all my shares last year”, or something similar. Aim to be one of the few people around in 2013 who are saying, “I’m glad that I bought XYZ share/ JKL property in 2009”. Aim for joy and not regret.

Opportunities like this, where borrowing costs are low (now the lowest interest rates since 1960) and prices of many properties and shares are low, do not come along every day. Get some good advice, get some independent advice, and then, most importantly of all, take some positive ACTION!

Remember the sacred words: “You have not because you ask not. Ask and you shall receive.” This may apply to heavenly blessings just as it applies to tax deductions and great investments. J Remember to ask for what you want and then see what happens!

Newsletter subscribers receive great investment tips, free books & free mp3’s or DVD’s. Join up now at our website.

www.IMPfinancial.com.au

Jeremy Britton DipFA SA(Fin)

*Everyone’s individual situation is different, and depending upon your circumstances, this strategy may not work out like the above example, for you. (You also may not be called Peter Frampton). We invite you to make a quick phone call to see if one of the above strategies may be a possibility for you. Call IMP on 1300 762 624; we can even have a quick chat to your accountant on your behalf to find the best way to help you to pay less tax and receive more government benefits. If you don’t call and ask, the answer is definitely “no”. Give it a shot! JCall us today and discover what is possible. IMP planners are not aligned with any financial institution & can give advice from multiple providers. 1300 762 624

2009-03-09T19:29:00.000-07:00

Investment Management Professionals

Abundance through Education

In this issue:

Blog update
Why is this Financial Adviser in handcuffs?
Terrible joke to make you smile
Seminars to motivate & educate
Wealth Coach is coming to town

Forgive us, please, "our hands were tied"

Why is this Financial Adviser wearing handcuffs?

We are starting to get more cheeky in our marketing, as we battle against what we see as unfairness in the financial industry.

Many advisers are not providing their clients with "independent" or "unbiased" advice, and many advisers are not even telling the truth about this...

Rainmaker Research's Alex Dunnin says that there are 16,000 financial planners in Australia, and over two-thirds are aligned with only one provider.

Dunnin says that this figure could be "as high as 80%" of financial planners who are working for "The Big 30" companies and not truly working for YOU and your interests.

This "Big 30" includes banks such as Westpac (BT, St George), Commonwealth (Colonial), ANZ (Asgard, Esanda) and National Bank (MLC). Also high on the list are financial providers such as AMP, ING (RetireInvest), PIS (Mentor) and AXA (Charter).

Some advisers may even claim to be independent, but still not provide independent advice, according to Dunnin.

"When a financial planner says they're independent it might be because they're an independent franchisee... (but) they're an independent small business who is part of a bigger corporate network," he said.

Confused? You may be. Cranky? You should be.

In the book "Who's Taking Your Money?", Jeremy Britton and the IMP team expose which companies are behind which other companies and suggest that clients seek an adviser who is unbiased.

You can download a complimentary report from our website called"Fifteen Questions to ask your financial planner".

The most important question to ask a financial adviser may just be "Who do you work for?" (or "for whom do you work", if you are an English teacher.)

If the adviser says "XYZ corporation" then they may not be really independent. Their hands are possibly "tied" (or cuffed!), as they must recommend solutions or products from that company and none other. If they say "I work for YOU", then you will be on the right track for a better deal.

An adviser who can source products or solutions from multiple providers, one who is "untied", one who works for YOU, is more likely to have your best interests at heart.

Jeremy Britton

Please check our Blog for new 2009 updates (click on Blog, and after you see 2009, scroll down to see where we advised clients to get their super money out of the USA over a year ago...)
If you have NOT reviewed your super, you may still have up to a quarter of your super invested into the US market. We can fix this WITHOUT having to change your super company. Just call 1300 762 624 for a free "Super Checkup". Also encourage your friends to do the same!

Do you think we should put a Star on top?

Someone sent this "Christmas Tree" card to us at Christmas and it made us laugh... We hope it brings a smile to your face. Be assured that "whatever goes down, must come up" and that this cycle will be just as cyclical as the last dozen!

(By the way, the chart for 1986-1987 looks exactly the same. We recovered from that and we will survive this one also!)

Seminars to educate & inspire

Please put these dates into your diaries in advance.

Roy McDonald (Billionaire Mentor to Jeremy Britton & Jamie McIntyre) will be on the Sunshine Coast on February 17th.
Free evening seminar from an independent qualified realtor and financial planner, also free book signing of "How to turn $1 into $1 million in 7 years or less". Awesome advice on property, shares and more. Please call IMP on 1300 762 624 to book.

Jeremy Britton (24 Hour Wealth Coach) will be in Toowoomba on February 27th & 28th.
Review your investments & super for great advice without the bias or hard sell. Initial appointments for new clients cost nothing but a cup of green tea... Call 0410 468 378 and encourage your friends to do the same!
Business Owners: Jeremy can hold a free 20 minute superannuation workshop for your staff. This makes YOU look really good! Call IMP on 1300 762 624 for bookings.

Allan Pease (Mr Body Language) will be on the Sunshine Coast on April 20th
There are only 200 tickets for all of Brisbane & the Sunshine Coast, so book in early at this price! Pease tickets were $85 in Brisbane in December and will be $195 in Gold Coast in March. Our price of $60 includes hot breakfast, $400 for a table of eight. Please call 1300 762 624 to book in.

Remember to check the Blog, check your super to "boycott US shares" and check that your financial adviser is not "tied" to someone other than YOU!

www.24HourWealthCoach.com
Your best source for unbiased advice, books, videos and "Abundance through Education".

Check out Jeremy's new "I Love Women" video. (Youtube.com/24hourwealthcoach)

Aussie business quite optimistic for 2009

2009-01-20T18:48:00.000-08:00

Article from: The Australian The Australian

AUSTRALIAN entrepreneurs are among the most optimistic in the world, surpassing the US, Japan and Britain for a positive outlook on the year ahead.

The 2009 Grant Thornton International Business Report found that despite the global financial crisis, almost half (46 per cent) of privately held businesses in Australia were bullish on the domestic economy.

This places the nation as the 10th most optimistic economy in the report, well ahead of the US (22nd), Britain (27th) and Japan, the most pessimistic nation in the 36-country study.

India has the most optimistic business owners, with the emerging economy scoring an optimism rating of 83 per cent, compared to the global average of -16 per cent.

In Australia, 80 per cent of entrepreneurs believe their turnover will increase this year, or at the very least stay the same, with two-thirds expecting to achieve similar or higher profits to 2008.

In light of this positive outlook, 39 per cent planned to increase investment in plants and machinery this year.

Grant Thornton Australia national head of privately held business Tony Markwell said entrepreneurs had an advantage over listed companies in times of commercial stress: "They can move quickly and decisively to exploit changing economic conditions because they're smaller and have fewer stakeholders. Defensive action in the short term may be necessary, but we're telling our clients to hold their nerve and get a strategic plan in place for what could be a very productive new marketplace."

But Australia's optimism rating of 11 per cent is less than a sixth of that at the same time last year. Optimism around the world has slumped by 56 per cent in the past 12 months.

"Last year two-thirds of businesses across Australia told us they were positive about the 12 months ahead of them, now that figure has fallen to just under half nationally, and to a third in NSW and Queensland," Mr Markwell said. "With such an unprecedented pressure on the marketplace, it's inevitable that firms will be feeling the strain, but the right attitude is critical in weathering the storm.

FULL ARTICLE:

http://www.theaustralian.news.com.au/business/story/0,28124,24909674-5001942,00.html

2008-07-08T19:15:00.000-07:00

Investment Management Professionals

Abundance through Education

Investment Education Seminars for $zip

What is an I-share?

What Millionaires Do, and YOU Can, Too...

Financial Planner, Wealth Coach & Author Jeremy Britton will be speaking at several locations in Queensland during April. Please contact the IMP office for bookings on 1300 762 624 or call the venue (all are free events).

April 1st 3pm Brisbane Church of Christ Headquarters, Kenmore

April 2nd 10am Brisbane Convention & Exhibition Centre, Southbank

April 3rd 10am Brisbane Convention & Exhibition Centre, Southbank

April 18th 10am Whitsunday Anglican School, Mackay

April 19th 10am Mackay Convention Centre, Mackay

I-pod, I-phone, I-shares?

The Apple computer company turned the world on its ear (bad pun) a few years ago with the launch of the I-pod portable music player.

Since then, we have also seen the launch of the i-phone mobile phone, which includes satellite linkup and 'pocket computer' characteristics.

New on the horizon are investment vehicles 'i-shares', which may be set to turn the financial planning industry on its head.

For many years, if the public wished to invest into Australian shares, they could approach a stockbroker for direct shares or a financial planner for indirect shares or Aussie managed funds.
Both had their pros and cons, and the investor had a choice between using the two services to generate a similar result.

If the public wanted to invest into overseas markets (e.g. buying shares in China or Japan), it was mostly too difficult or too expensive to use a stockbroker, so the investor could have to use a financial planner to invest into overseas managed funds.
This seemed to then become another distinction between financial planners and stockbrokers: one could get you an overseas investment and one could not.

(It is important to realise that the vast majority of financial planners are not accredited to advise on direct shares as a stockbroker may do.)

With the introduction of i-shares (the I stands for "international"), Australian stockbrokers can now assist the public with investing into overseas markets. You may choose to buy a market such as the Chinese Index or Indian Index and this will be traded on the Australian Stock Exchange (ASX) in the same way as a share in Woolworths or Telstra.

Does this mean that people will no longer need to see a financial planner? Depending upon the clients' need, it could mean the demise of much of the planners' business. Certainly, losing the "overseas exclusive" may affect planning businesses.

There will always be room for good strategists, but a broker may start to fill a need that was once the sole domain of the planner...
Some planners may upskill themselves to be accredited in i-shares and ASX shares*, while others may simply find that they have lost significant advantage in the new open playing field.

It is unlikely that Microsoft will launch rivals to the Apple i-pod and i-phone. To do so could be expensive, risky or futile. Far wiser to concentrate on the home PC market and gaming consoles such as the X-Box.

As for what the financial planning industry will do to compete, we can only guess. Perhaps fees on overseas funds will come down in response to the availability of i-shares. We can live in hope...

CAUTION: there may be far greater volatility in I-share prices than in standard ASX shares, due to the nature of overseas markets and also the affect of currency prices (the Aussie dollar).

Jeremy Britton and Jacob van Rensburg are both qualified financial planners who are also uniquely accredited to advise on managed funds, direct ASX stocks and i-shares.

Find out more: www.24hourwealthcoach.com or 1300 762 624

To unsubscribe, please click here. Investment Management Professionals Pty Ltd ABN 37 115 359 316, corporate Authorised Representative #306558 of Financial Planning Services Australia Pty Ltd, AFSL 225982. www.24hourwealthcoach.com

How to avoid an 80% loss --- Have a prosperous 2008

2008-02-15T05:26:00.000-08:00

2008 - The Year of The Triumphant Dragon & the Dying Eagle? Jeremy Britton

Thanks for your support throughout 2007: the year that was saw some mining stocks rise 100% and the US dollar drop 20%. This year we expect big things due to the 2008 Beijing Olympics in China, possible further interest rate rises, the change in government and maybe some more financial shocks out of the USA.

Is your super invested in the USA or China?

(check closely before you answer! Call us if you do not like the answer!)

The 2007 year also saw the collapse of several investments, including trouble with Prime Mortgages, Australian Capital Reserve (ACR), Bridgecorp, Fincorp, Westpoint, Centro (80% loss on commercial property?) and the US sub-prime mortgage fiasco, among others.

Interestingly, NOT ONE of our clients was affected by the collapse of these companies nor by the downturn in the US economy. (Insert your prayer of thanksgiving here.)

Did the team have crystal balls? No, we just look back to the past for clues to the future... (Would you like to learn how to do the same? Call us now!)

Stay tuned for further improvements to the IMP business, including the addition of a new financial planner & stockbroker, new facilities for investment loans & home loans, a new life insurance broker and the introduction of some amazing new taxation structures and tips for making you money and saving you tax… Some clients now pay 5% tax, not 45%.

We will also run a FaceBook campaign during Feb/March, to give away hundreds of free books to educate & enrich our fellow Australians.

In April, Jeremy will be speaking at the Brisbane Churches of Christ HQ in Kenmore (April 1st), the Brisbane Convention & Exhibition Centre (April 2 and April 3) and at the Mackay Investment and Money Expo (April 19th). Free talks will also be given at Holy Spirit High School in Mackay and Mountain Creek High School, Sunshine Coast. Please contact us if you would like to attend.

If you know someone else who would benefit from unbiased education & independent enrichment, give us a call and see what we can offer.

All the best for a prosperous year

Jeremy, Jacob, Megan, Tim & team from IMP

How to be a Heroic Investor

2007-12-09T17:02:00.000-08:00

How to be a heroic investor

Unless you are a soldier, policeman, fireman or even possibly a public school teacher, you are probably thinking, “I don’t risk my life on a daily basis. I am not a hero. What does this have to do with me?”

The answer is that anyone can be an inspiration to others. It is your humanity that makes you a hero. Mahatma Gandhi and Mother Theresa could have just sat on the sidelines, completing crosswords in the rest home and no-one would have blamed them. Instead, both risked their lives to bring change. You may not battle against leprosy, poverty or the British Empire, but you may choose to take on something that is bigger than you and try like crazy to overcome it. You may make it your life’s work to eradicate third-world debt, save the numbat or invent a better-tasting lamington.

You may choose to skip the huge awesome goals and consider simply doing one thing each day to make the world a better place. You may never risk your life in the course of your goal, you may only risk poverty, failure or humiliation. Those are still big risks, and big risks are often placed smack bang in front of big rewards and big achievements. Know that you may fail. Feel the fear and do it anyway.

Your local library will be filled with autobiographies from real-life heroes who bounced back from overwhelming odds: Nelson Mandela, Richard Branson, Motzart, Rembrandt, Abraham Lincoln and others. (Lincoln’s story of three failed elections, failed businesses, the death of his wife, his son, and quitting politics is particularly inspiring; because nothing seemed to go right for him until after he turned fifty. 50!)

Locals like “Aussie John” John Symond , Dick Smith , Jamie McIntyre , Li Cunxin and Peter J. Daniels had to overcome fabulous odds to succeed. “Rich Dad, Poor Dad” author Robert Kiyosaki was almost 50 before retiring and writing his best-seller.

Walt Disney and Henry Ford were both bankrupt before they finally risked everything, yet again, to make their fortunes in later life.

My desktop on my computer has a picture of a surfer that inspires me: I learned to surf on my 33rd birthday, despite the fact that I cannot swim! The words next to the picture say “It is never too late to be what you might have been”.

Be a hero: never give up. Invest into yourself.

Jeremy Britton is an active financial planner and a lazy investor. His kids think that he’s a hero but they also know the truth: true heroes regularly show their humility.
Inspiring words and investment tips available from www.24hourwealthcoach.com

Jeremy Britton is an Authorised Representative #298825 of Financial Planning Services Australia, ABN 11 010521810, AFSL 225982.

Billionaires agree on investment horizon

2007-07-30T04:35:00.000-07:00

Economic guru says that the clock is still ticking

July 30th 2007

These could be scary days for investors, unless they look back for the future.

As the Reserve Bank debates about putting up interest rates yet again, the property market looks perilously high, housing affordability is at all-time lows, and the sharemarket is making plunges into negative territory. What to do?

Recent sharemarket dips in the USA and China may drive panic into Australian investors. Many investors fear that October 2007 may hold a major sharemarket correction, as has happened in 1997 (Japan) and also 1987 (USA & Australia).

Right now, housing price growth appears unsustainable, sharemarkets look choppy, the US dollar is dropping and the Australian dollar is higher than in the 1980’s. Where should investors be placing their money now?

“This is all normal”, says Jeremy Britton, Australian financial planner and author. His latest book, “Who’s Taking Your Money?”, deals with the money movement from USA to China and Australia and the centuries-old Economic Clock. “Although many of these occurrences look alarming, similar things have occurred before, and they will occur again. The trick is to recognise what comes next in the pattern and then be bold enough to take a calculated action.”

Calculated actions have been taken in the past by other wealth creators, such as US investor and world’s third richest man, Warren Buffett. Buffett refused to invest into the booming “tech-stock” economy in the USA in 1999 and 2000. In a rare speech [published FORTUNE magazine (Nov. 22, 1999)], Buffett stated his belief that “returns from stocks would fall dramatically”. When tech stocks tumbled in 2000 and the broad US markets crashed in September 2001, the quiet oracle kept his profits and maintained his reputation as the world’s best investor.

Asian millionaire investor Lin Yuan has been called the “Warren Buffett of China”, after turning 8000 yuan into 1 Billion yuan over the last 20 years of investing. Like Buffett, Lin invests for the long term into good strong companies and stays away when things get too heated. He bought into the stock market after the 1987 crash and Lin invested in real estate only during the massive growth years between 2001 and 2005.

“Mr Lin sounds like a clock-work investor,” says Britton, who advised clients to purchase property in 1999, seven years after the famous 19% mortgage interest rates stalled the 80’s property market climb and a year before the big property boom of the noughties. “Lin was in the right place at the right time and then moved to the next position when things changed.”

Investors who held property from 1992-1999 could have made returns in line with the CPI, whereas investors who held property from 1999-2005 could have doubled their money. Investors who held Australian shares from 2005 to now may be looking at returns of several hundred percent and despite market fluctuations, many believe that the sharemarket ride still has a way to go.

Buffett is still buying stocks, Lin is investing into a Chinese market that has already risen 300% and Britton is still looking at Australian shares. “It’s funny -- when my advice made investors 300%, people accused me of having a crystal ball to see the future. In reality, all I had was an old tool to look at the past.”

www.24hourwealthcoach.com

The importance of being FRANK...

2007-05-20T03:37:00.000-07:00

The importance of being FRANK

Sometimes he is called "Frank" and sometimes he is not... who is he? Our old friend ensures that we pay far less tax than we used to... ya gotta love him for that!

Like many terms in the investing world, "franking" is confusing, old-fashioned and has many aliases...

In years gone by, a franking machine was used to stamp outgoing mail or to stamp invoices that were paid. For those who remember tax stamps, it is a small jump to connect "franking" to having the tax paid on an investment. For the younger crowd, we apologise for the jargon: just believe us when we say that "franked" means "tax paid".

From there, you may hear of "fully franked", "partly franked" (100% tax paid or only partially tax paid), or "FF" (fully franked).

The confusing jargon reminiscent of something to do with hotdogs hides a lovely truth: when you receive a cheque from a company that pays fully franked income, you know that THEY have paid the tax and often you do not have to pay any tax on the investment income.

Many Australian companies pay a company tax rate of 30% on their profits before they pay the shareholders, so you would normally only have to pay extra tax if you are on a tax bracket over 30%.

So, how much money could you have, or how much money could you make, and not have to pay any tax?

Let's look at two scenarios:

(assuming that dividends are the average 3.6% and 100% franked)

Scenario One:

RITC is another name for "rich"

A retired Australian couple could own a share portfolio worth $863 600 and earn almost $45 000pa with no tax to pay.

A portfolio such as this would bring in around $31 090 in dividend income & $13 320 in franking credits (they would have to pay $666 in Medicare-- for more on why the franking credits are paid as cash, refer to "Think RITCH" Chapter 9 of Who's Taking Your Money (and how to get some of it back!).

Scenario Two:

no RITC is still good rich

A second Australian retired couple have a share portfolio worth $4.7 Million ($4 700 000) and could receive an income of $170 064 in dividends without paying any additional tax (they would pay $1822 for Medicare)

Scenario Three:

Super Frank is not a hotdog with a cape on

A third couple could have a share portfolio worth $4.7 Million, as above, but inside of superannuation.

They would receive the same $170 064 in dividends and could also receive $36 444 paid back to their super fund pension account, and would NOT have to pay Medicare...

That is an income of over $200 000 pa with zero tax and zero Medicare levy... Super, huh?

Now you know more about franking and how it can help you to make a LOT of money with LITTLE or NO tax... Excited?

If you have any questions about tax, franking credits and RITC, talk to your accountant or taxation specialist. If you would like to know how to invest or where to invest, talk to a good financial planner or call 1300 762 624 to find one. Once you know how to do it, then (let's be frank) just do it: Invest.

Jeremy Britton DipFA SA(Fin)

[Information provided is of a general nature only and is not to be taken as financial advice. Before making any investment decisions, you should consult an expert to receive advice based on your own unique personal circumstances. Data sourced from technical team at ING Australia.

Investment Management Professionals Pty Ltd, ABN 37 115 359 316, is a Corporate Authorised Representative #306558 of Financial Planning Services Australia Pty Ltd, ABN 55 010 521 810, AFSL 225982. Jeremy Britton can be contacted through www.24hourwealthcoach.com ]

Yes, we know that we said we would look at two scenarios and then you found three. That was just a surprise bonus, not an error. For more surprise bonuses, refer to the website www.24hourwealthcoach.com or www.invest.org.au

God Bless America, Or China, or India...

2006-09-20T20:34:00.000-07:00

Invest News #65, 2006

God Bless America, or China
Investing into China & India, safely, via Australia
Are Africans the next Arabs?

Question 1 Who in the world uses the most oil?
Question 2 Where do the oil users get the oil from?

If you answered, 1) “The western countries”, and 2) “The Middle East”, you would be fairly close to the truth… or the truth, as it was, for most of the last century.

In the last few decades we have seen the USA and the western nations using most of the world’s oil, and sourcing it from the Middle Eastern countries.

In more recent years, the amount of oil being used by China is on the rise. Soon, your answers to the above two questions will be “China”, and “Africa”.

Be prepared for a world-wide shifting of the scales.

Seasons change!
For most of the last century, we have seen “the world’s oil” coming from the Arab nations, and consequently, much of the world’s petrol dollars flowing to these nations. There may be sheiks who used to ride camels who now ride around in a Merecedes-Benz, and there may be ex-goat-herders who are now among the wealthiest people on the planet.

If you have a few grey hairs, you may recall the days when Japan was a poor nation, or when Singapore and Malaysia were poor nations. You may recall Arabs who lived in tents and not mansions. Twenty or thirty years ago, some of the wealthiest countries, and some of the wealthiest people, were virtually unheard of by many of us.

Where does China source her oil?

The Middle East has been fought over for centuries, with or without the issues of oil, religion or the western world. While the rest of the world is sourcing their oil from an area that has been fought over for hundreds of years, what is China doing?

Ignoring the western demand and the Middle Eastern supply, China is quietly and carefully drilling for oil in Africa… Shh!

The Chinese are making friends in Africa, building infrastructure, creating jobs, buying oil. The Chinese are sourcing oil to infuse into their growing economy. African people who used to till the soil are now drilling for oil, on larger wages. Their once uneducated children, who were destined to work farms, are now studying to become geologists and engineers for the oilfields.

The Chinese are adding value to Africa in the form of sending in new currency and cheaper imported goods. Just as the Chinese bought plenty of Australian steel and coal, then gave Aussies cheap plasma screen televisions, the Chinese are now doing similar things with the African nations to get oil.

Thank God and watch the destination of your dollar.
The Chinese economy is booming, India is coming second, and Australia is coming along for a ride on the coat-tails of our Asian neighbours. We are making money, creating jobs and things are looking good.

Next time you go shopping, you may make a conscious effort to “Buy Local” to keep jobs here and to support your immediate neighbours inside of your country. Or you may have a broader mind and realize that some of your neighbours are a thousand miles away.

“Buy Local” when you can and when you want to support locals. Buy Asian sometimes without feeling guilty. After all, they are our neighbours and they buy our stuff too! It is possible that your job ultimately depends on a product, service or raw material being sold in Asia.

Show your support for your country, just invest into it. Or invest into other countries that invest into your country.

Think Global, Act Local
Be alert and not alarmed. Learn the “destination of your dollar”. Know that much of China’s and India’s wealth is spent in Australia. Imagine if you bought shares or real estate in Japan or Singapore before they become a wealthy nation. Now think of China and India and imagine how much money you can make in the next few years…

To find out “who’s taking your money” and where it ultimately ends up, call a good financial planner and ask them. To find out which companies or countries will make money from the changing world economy, call a good financial planner and look at which is the safest way for you to profit from the change in global tides.

(Good financial planners are always obligation-free: www.invest.org.au)

Jeremy

Disclaimer
The information contained herein is of a general nature only, does not take into account your particular objectives, financial situation or needs. Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Professional Investment Services nor its employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information. Jeremy Britton is an Authorised Representative (#298825) of Professional Investment Services, ABN 11 074 608 558, AFSL 234951. Approval #H629

Get a Bank Boost, claim a tax deduction on life insurance

2006-08-13T18:23:00.000-07:00

INVEST NEWS #71

A fundamental rule of Investing
One of the fundamental rules of investing is "buy low, sell high". It was stated by legendary investor Sir John Templeton half a century ago, and sung by the Rogue Traders in their 2006 hit, "Way To Go". Templeton bought stocks at the start of WW2 when markets were low and turned a $10 000 investment into $4 million. The Rogue Traders turned a bunch of other people’s songs into a goldmine…

20% discount plus free steak-knives
Alright, so you may not receive free steak knives with your next property purchase, but you may well receive a price discount of 10% to 20% if you are patient. With property markets slowing down, it represents a great time to buy. Sellers are more motivated to haggle and the number of places for sale means that you may take your time to look around for the best deal.

Beat the banks
Contrary to popular belief, banks do not like to repossess people’s houses. Have a look around the branch: it is quite small. There is no place for them to store houses, cars or office blocks that they repossess from tardy payers. The banks do not have room to store physical "stuff"; what they do like to collect is money…

As recently as 1999, one of Australia’s largest banks sold a man’s business premises for 40% of its true value. (Do not ask "which bank?"; the more important question is "Why?") The reason why they sold his premises for 40% of its market value was because he owed the bank 40% of the value.

The bank was not interested n selling the premises for the best price; they were not interested in holding the property and waiting for the market to surge before selling it: they just wanted their money. They did not want land or profit, they just wanted the tardy loan off their books.

Plan ahead for the worst case scenario
As the bank would prefer to receive money rather than land, do yourself a favour and ensure that you can repay the loan, whether you are alive or dead. The bank will give you a loan if you can work and repay the money while you’re vertical, but do not overlook the inevitable. One day you will die, and if you die before you repay the loan, the bank would like to have money, not the building.

If you would like to get a loan for $500 000 and repay it over 20 years, then invest into a $500 000 life insurance policy before you visit the bank.

The bank manager will want to see the income sheets to see if you can pay for the premises or home while you are still alive and working. Show him the figures.

They will also need to conduct due diligence to ensure that the loan will be repaid when you die. Show him your life insurance policy.

You are now prepared for any eventuality and you will have cash to repay the loan, not assets. This ensures that the bank is protected from forced sale and that your family is protected from losing the asset to repossession. Be prepared to answer any question the bank throws at you and you will win.

Claim a Tax Deduction on your life insurance
If you are a self-employed person, there are many tax deductions available to you which are not available to your employed peers. (See "Is my Pizza Tax Deductible?")

While your friends may have a superannuation fund that is paid into by the boss, they cannot normally claim a tax deduction for paying into their own super*.

A self-employed person can claim a tax deduction for payments made to their own super fund. Your employee friends will not normally be able to claim a tax deduction on their life insurance cover*. A self-employed person can often claim a tax deduction on their life insurance...

You have already seen why the bank would prefer your debts to be secured with cash rather than with hard assets. The bank can actually insist that you obtain life cover in certain situations and make it a mandatory part of the loan conditions. The bank cannot insist which company you obtain the insurance with, and they cannot tell you whether you can claim a tax deduction or not. Call a good financial planner or life broker and find out what else you can claim (apart from the pizza).

Jeremy

Jeremy Britton DipFA SA(Fin)
Ph: 07 5443 5577 Mobile: 0410 INVEST
www.invest.org.au

(*There are certain situations where an employed person may be able to obtain tax-effective super contributions or government assisted life insurance premiums. It is far easier to achieve if you are self-employed, but still possible for employees. Call your financial planner to see if you qualify.)
PRIVACY
This article is for general information only and is not intended to constitute any form of financial advice or recommendation of, or an offer to buy or offer to sell, any security or other financial product. Jeremy Britton is an Authorised Representative (#298825) of Professional Investment Services Pty Ltd, ABN 11 074 608 556, AFSL # 234951. Approval #H488
We recommend that you seek your own independent legal or financial advice before proceeding with any investment decision, including purchasing, disposing or holding, of an asset, policy or investment.

What's in a name?

2006-08-08T18:24:00.000-07:00

"Invest In Australia" (would you change your name for money?)

For several years the message has been simply "Invest"; forget what anybody says about "buy property", "buy shares", "bank your savings" or even "supersize me"... The best advice was always a one-word phrase, "invest".

It covered all of the relevant areas and was sure to make you rich.When people ask, "Should I buy ostriches?", the answer was "invest". When people said "Should I join this new multi-level marketing company?", the answer was the same.

True investing is not the same as merely "buying". It involves research and due diligence. It implies a serious consideration.

People "buy" stereos or clothes; they "invest" into property, stocks or businesses.

Inspired by Nike's "just do it" and by our new best friend, US Marine Cody Baker, we have changed our mantra from "invest" to "Invest in Australia".

The "lucky country" which has been called "the energy superpower" of the Asian region has already benefited greatly from world demand for gold, steel, uranium, copper, gas, coal and oil.

As China increases consumption of energy and raw materials, Australia will continue to prosper. In the last five years, Australian markets have been buoyed by China and enjoyed average growth of over 10%, whilst the US markets have performed under 5%.

Imagine what will happen in the next few years when India arises as an economic power to rival China...

Australia is an English-speaking country in the heart of Asia-Pacific, close to the growing economies of China, India & Brazil. It holds massive reserves of energy and raw materials. Billions of dollars pour into Australia from China constantly, and this is just the beginning...

Our advice to serious investors is to "Invest in Australia". We are even going so far as to suggest that our new best friend change his name from Cody Baker to Ian..... Ian Vestinaustralia.... We kid you not. Check out the story here.