Thursday, February 14, 2008

Lifestyle Newsletter 15 Feb 08

Our goal – helping you from zero investment properties to ten


“The Australian Financial Review” 14 Feb 08 reported on survey results:

One survey of 1000 respondents - by the Senior Australian Equity Release Association of Lenders - found that one third of baby boomers expect their money to run out between 5 and 10 years into retirement.

One third (perhaps the same one third) thought it most likely that they will need to sell their family home, and downsize, for the purpose of funding daily living expenses.

Another survey by Retail Finance Intelligence found that one in five current retirees (that’s 20%!) are still repaying their mortgages, and of those approaching retirement, one third expect to still have a mortgage when they do retire.

Comment: A logical outcome of those retirees with mortgages is that they will need to tap into their superannuation to repay their mortgage, or sell the family home. (You can’t repay a mortgage when you don’t have a decent income.)

If you feel that you won’t have enough for 20-25 years of a dignified retirement, phone me immediately 0414 778 518


20 years ago Singapore was concerned that its 40% retirement contribution fund was inadequate! No wonder there is concern in Australia that our 9% superannuation contribution levy is simply not enough. Read on:

The national savings and superannuation scheme in Singapore is in crisis.

Established in 1955 as a compulsory saving scheme, into which both employees and employers tip in 20% each, there is concern that members will not have enough for a decent retirement.

Along the way, the scheme has changed into a social security blanket, and members may now withdraw to purchase their family home, to pay for their family’s education, and also for health and medical bills.

The unexpected problem is that Singaporeans are now living much longer that was anticipated way back in 1955.

Singapore acknowledged this problem some time ago, and changes were made in 1987 – that’s 20 years ago - to ensure that members were saving enough for a modest retirement lifestyle.

If you feel that you won’t have enough, phone me TODAY. My mobile is 0414 778 518


With 3,500,000 Australian baby boomers marching into retirement, there will be massive opportunities for active boomers to move into “renaissance careers” i.e. those jobs that they really want to do.
Australia has always relied on migration to supplement our own national population growth, however experts believe that the current annual intake of 50,000 migrants needs to be increased to 200,000 as soon as possible.
There are labour shortages in virtually every sector of the ecomony - including health, services, train drivers, accountants, the military, education and infrastructure creation.
Part of the problem is that live births per woman of child bearing age has fallen from 2.0 twenty years ago to just 1.2 now. At this rate we are barely reproducing ourselves, not producing a larger population necessary for the national development.

The hardest policy objectives will be to fill low skilled jobs, however this issue will make it easier for boomers to find productive work.
(acknowledgement: Australian Broadcasting Corporation (ABC) News , 05/02/2008 : "Immigration boost needed to tackle skills shortage : many job vacancies will be created when millions of baby boomers retire")


I noticed in the newsletter from this though-provoking quiz. Just copy and paste this address


Bernard Kelly mobile 0414 778 518 cell phone 61 414 778 518

PS As I don’t spend my advertising budget on traditional media, I’m able to pay you $1000 for successful referrals

I would be delighted to be your personal financial coach over the next five years and share a strategy that will dramatically reduce your learning curve.