Tuesday, November 24, 2009

Product Newsletter - 1 December 2009

Here's a recent investment in the best (of 35+) regional property markets across Australia - anticipated fastest growth, above normal rents, lowest land taxes and a product that will appeal to the ideal tenant (a young couple with kids in primary school)


I am currently on the Great Victorian Bike Ride - as a volunteer (manager of the radio station) - one of 500 volunteers who support the 5000+ riders.

When I met with some of the other team leaders before the ride, I told some of them what I did professionally.

I said I help people plan for their retirement, but the reaction was "oh, do you give hot tips on shares?"

I was quite surprised, however I suppose the moral of the story is that society has a short term focus, and that there is so little understanding out there that retirement could last 25-30 years.

But as a loyal reader of this blog, you are different, and appreciate that I can help you explore options for a comfortable retirement. Feel free to contact me - Bernard Kelly - anytime. My email is admin@retirelaughing.com


There are two occasions when we think about investing for retirement - the annual one is on January 1st - as in "this year we really should think seriously about our retirement" with the result is that the first half of every year is quite busy for me.

The other occasion is when it's almost too late - which keeps me busy (spasmodically) during the rest of the year.

So I'll be back in a week or so, refreshed and rested in advance of the impact that will flow on from those New Year Resolutions.


My consultancy practice here at retirelaughing.com helps private clients understand "value analysis" when investing for their retirement and I've decided to - once again - write it all down so that - this time - I can sell my wisdom on Clickbank.

I'm thinking that it will be in four sections:

The Theory of Investing
The History of Investing
The Psychology of Investing
The Business of Investing

I'm happy to share with you the skeleton. Just hit the back button this email with a note requesting same.


I've started a collection of common mistakes - in relation to planning for retirement - that are widespread here in Australia.

So far the list looks like this:

Mistake One - Relying on Medical Insurance. 18% of my private clients are nurses and from them I've learned that there are many conditions relating to old age that - already - are not covered by medical insurance. It will only get worse.

Mistake Two - Relying on Government Welfare. In simple terms, the government can't afford to pay us all the pension. Which is why they introduced compulsory superannuation in 1993, and why they are now increasing the age when we can start to draw the pension. It will only get worse.

Mistake Three - Failure to Set a Goal. We all know we need to accumulate, but what should be our specifie goal? I'll make it easy for you - if you want an inflation-protected income in retirement of $50,000 pa, you'll need to set a goal of $1,000,000 in today's money.

Mistake Four - Expect to Die Early. At our age, we need to be thinking about probabilities - not the life expectancy of a new born. The probabilty of a woman aged 60 reaching 90 reaching is 53% and for a man aged 60 reaching 90 is 37%. The probability of a woman aged 65 reaching 95 is one in three. The probability of a man aged 65 reaching 95 is one in five.

Mistake Five - Ignoring Inflation. Financial products are exposed to the declining purchase power of the dollar. In contrast, the very successful investment strategy that I share with mey private clients relies on capital growth and rental income - because rents increase as the value of your investment property increases.

Mistake Six - Forgetting about Taxes. You can't avoid all taxes, although you can anticipate that they will be less in retirement. However if you live off your equity, you won't be exposed to capital gains tax (as you won't have sold) nor will you be exposed to personal income tax (as you're living off capital, not personal income).

Mistake Seven - Too Much Debt. The problems with debt are (a) you need access to resources to repay it and (b) the carry cost is more expensive than the return you earn on your financial investments.

Mistake Eight - Expect to Keep Working. Even if you're self employed, and in control of your own destiny, your body will wear out eventually. And if you're an employee, they won't want you beyond 70.

Mistake Nine - Defer the Date to Start Investing. Einstein said that the law of compound interest is the greatest tool available to mankind. However for it to do its thing for you, you actually have to Start.

If you would like me to help you explore your options, feel free to contact me - Bernard Kelly - anytime. My mobile is 0414 778 518

adapted from the writings of James Rohn

Ants have an amazing four part philosophy, and the first is ANTS NEVER QUIT.

That's a good philosophy. If they're going somewhere, and you try to stop them, they'll look for another way. They'll climb over, they'll climb under, they'll climb around. They keep looking for another way.


That's an important perspective. They aren't so naive to think that summer will last forever, so ants gather their winter food in the middle of summer.

So - like the ant colony - it's important for us to be realistic, and to think ahead.

The third part of their philosopty is that ANTS THINK SUMMER ALL WINTER

It's important for us too, to be optimistic.

And here's the fourth part of their philosophy: how much will an ant gather during summer to prepare for winter? ALL IT POSSIBILY CAN.

What an incredible philosophy - "all you possibly can".

Until next time

Bernard Kelly

PS your greatest compliment would be a Personal Referral


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