Thursday, November 15, 2007

November Newsletter


“you are the only rational source of information in your market”


As we don’t advertise in traditional media, we consequently have a budget to pay for word-of-mouth advertising which helps this consultancy prosper.

So instead of paying newspapers and magazines to run advertisements, we are happy to pay you $1000 for each successful referral.

Let me know if you have family, friends or colleagues who might benefit from our services. Phone me anytime: Bernard Kelly 0414 778 518

I’ll pay you immediately their finance is approved.


Sometimes you meet with people who realise the need to commence a property investment portfolio for their long term financial security, but are concerned about ‘losing their home’ if something goes wrong.

This can be a real concern, and I am delighted when it comes up, because it gives me a chance to explain how the numbers work.

Let’s take an example – suppose you secured an investment today, and sold it tomorrow at the same price.

Your loss would be say $25,000 – comprising entry costs of $15,000 (stamp duty, valuations, legal fees etc) and $10,000 exit costs (the real estate agent’s fees and advertising).

Now this loss of $25,000 would simply be added to the mortgage on your family home - and it would be very unlikely that any investor would ever lose their family home for an adjustment to the mortgage of just $25,000.

What normally happens of course is that, over time, the investment increases in value, so that should you need to sell, you should be able to exit at a profit.

I rest my case. To my mind, it’s virtually impossible to lose your family home when you put an investment property in place.

If you need more analysis, feel free to phone me on 0414 778 518


If you are looking for concepts that will help you plan your retirement, the magazine ELDR may be of interest.

Go to


Alzheimers Australia says that studies of large groups of people do show that those who adopt 'brain-healthy' lifestyles have a reduced risk of developing dementia.

One strategy is to do a daily crossword or sudoku puzzle; another is to start a small business.

The demographic shift in the workforce and overall population is creating tremendous opportunities for small business in the baby boomer market, says Ruth Kelly, publisher and editor-in-chief for Venture Publishing Inc.

The baby boomers are an active, wealthy and relatively healthy population. And the demand for age-related products is growing daily.

Boomers are searching for mental and physical opportunities that sustain their sense of quality life. Consequently a range of small business opportunities exist in experiential travel, independently designed luxury holidays and health and wellness fitness activities that cater to an older population.

If you have an interest in any of these fields, put your toe in the water and develop a business plan. You might be able to convert a hobby into a nicely profitable business.

An example of such a micro business is at

Advances in high technology has shifted how people run their lives and have given small businesses new opportunities to communicate and market products e.g. Google Adwords.

Cultural and social change, such as the focus on environment is also stimulating new small businesses. If you are concerned about this issue, your small business could analyse or educate on how to become more environmentally friendly.


With fertility rates continuing to decline, it is now forecast that by 2020 there will be only 12,500 first time employees entering the workforce in Australia each year, compared to 140,000 at present.

Firms are quickly realising that they will need to retain older employees, at the same time workers are willing to stay in the workforce longer due to financial necessity and the desire to remain active.

The American Association of Retired Persons (AARP) recently announced its seventh annual "Best Employers for Workers over 50" awards, and the firms at the top of the list didn't get there by offering the traditional fringe benefit trio of health, life and disability insurance.

Instead, the AARP recognized companies for providing "forward-looking" benefits packages to workers over 50 that include alternative work schedules, lifelong learning and career training opportunities, and a program that allows today's graying workforce to care for their own aging families.

The AARP also released a new study that called on all employers in the United States, Japan, Germany, France, Britain, Italy and Canada (the "G7 Countries") to end age discrimination in the workplace.

In the report, called "International Profit from Experience," AARP found that older workers in the G7 countries want to continue to work on average an additional five years.

We anticipate much the same results would be found it similar surveys were conducted in Australia.

Until next time

Bernard Kelly mobile 0414 778 518

P.S. Your greatest compliment would be a Personal Referral – and I’ll be happy to pay you $1000 for a successful referral