Tuesday, September 01, 2009

Product Newsletter 1 September 2009

this new investment property in Ipswich - within Brisbane's
western growth corridor - will soon be ready for its first tenants (right)


You know that I am biased, however I genuinely believe – and have arguments to support my position – that a portfolio of residential properties is the only investment vehicle that will allow the vast majority of the population to successfully achieve our retirement income goals.


In the very recent past, we have seen massive changes in the geopolitical landscape, massive changes in how we communicate, massive changes in how we do our banking, and massive changes in life expectancy.

But one thing we haven’t really changed is how we plan for 20-25 years of a dignified retirement. Simply put – we still don’t.

The solution would appear to be in education.

But if education is the answer, what’s your question?

Question me – Bernard Kelly – anytime. My email is


It is estimated the

(a) demand for housing will increase to over 200,000 homes per annum by 2010
(b) forecast for new supply is 150,000 to 160,000 per annum

The difference between supply and demand of 40,000 to 50,000 new homes will be the driver that places upwards pressure on Australian property values.

These new homes won’t be discounted – the builders have to make a profit.

So prices will be continue as per normal, and you can expect values to double in 7-10 years, as they have since records began in the early 1800s.

If you would like me – Bernard Kelly - to help you tuck something extra aside for your retirement, contact me anytime. My email is


The Council of Australian Governments announced on 30 April a new six star energy efficiency standard for houses, commencing 2010.

This will add between $3,000 to $7,000 to the cost of a new house, in addition to normal cost increases due to materials and wages.

The present five star energy rating requires houses to conform with measures as solar hot water systems, insulation and shaded windows.

The good news for investors is such incremental increases in delivery costs ensure that all values keep rising.


A report card on poverty has revealed that Australia's retirees are the 4th poorest in the developed world, and our unemployed people are the poorest.

According to The Organisation of Economic Co-operation and Development, 50% of single Australian retirees live in poverty - defined as less than 50% of average earnings. This figure has risen by 4.8 percent over the last ten years.

Other figures have also shown that an alarming 27 percent of all retirees living in Australia are below the poverty line.

If you want me to help you explore options to avoid this catastrophe, contact me – Bernard Kelly – anytime. My email is admin@retirelaughing.com


Consider this:

Juliet and Stephen have the same annual income and have similar investment goals.

Stephen starts saving at age 25, contributes $10 a week each year for just ten years ($5,200 in total), then stops adding money to his account.

Juliet starts saving at age 35 and contributes $10 a week each year for thirty years ($15,600 in total), then stops adding money to her account.

Both Stephen and Juliet earn an investment return of 7 percent per year after expenses.

So, who will have more money at age 65 … Stephen or Juliet?

Stephen will – $54,691 to Juliet’s $49,120 – almost 11 percent more.

That’s the “magic” of compounding – money earning more money through investing over time – which Einstein supposedly called “the most powerful force in the universe.”

It’s never too early or too late to start investing. The more you save and invest now, the better your chance of meeting your retirement goals.

If you would like me to help your children, contact me – Bernard Kelly – anytime. My email is admin@retirelaughing.com


Who really cares about retirement planning?

Answer: anyone getting close to retirement.

The younger generations say:

a) “I'll be dead before I retire.”

We can only hope so.

But if you make it to age 65, plan to have some money waiting for you because there is a high statistical probability (50%+) both men and women will live another 20 years and a 25% probability you'll still be with us at age 90.

If you’re married and make it to 65, there is a 25% probability that you will get to 97.

b) “X will take care of me.”

For some of you, X is the government.

But we all know what happening to government welfare.

For others it’s your kids. But if you suggest this to them, they would message you ROFL (“I’m rolling on the floor laughing”).

c) “There's no way to know the future.”

True – but there is a question about probabilities (see above).

So it’s not a case of any planning you might do for is bound to be wrong, but rather not planning is even more wrong.

d) “I'll never really retire; I'll just keep working.”

That's my plan too.

I don't see myself ever stopping this career. I like it. It's fun every day.

But if my body wears out, or I meet with an accident, I also know that I may not have a choice.

So if you’re either close to retirement, or in the younger generations, feel free to contact me – Bernard Kelly – anytime. My email is admin@retirelaughing.com