Sunday, October 31, 2010

Property Success 1 November 2010


Here are the facts: this year they’re running the 150th Melbourne Cup.

Now during the first 100 years, the record show that a 100-1 outsider won on three occasions – in 1871, in 1936 and again in1940. You could say once in every 33 years.

But the last time – 1940 – was 70 years ago, so this particular statistic is now 37 years overdue for a reappearance.

Mind you – it almost happened in 2004 when Zazzman came in third.

So here is my advice: as the 100-1 longshot is due to win any time soon, if it doesn’t win this year, remember this story for next year.


It wasn’t all that long ago that no-one had heard of Google, but then it became part of our lives.

It appears that Facebook and YouTube is doing the same – so I’ve taken a presence on both.

To participate along with me on Facebook, go to THE WISE WAY TO RETIRE LAUGHING.

Click this link (you may need to copy and paste).

When you get there, click the “Like” button in the scroll bar above.


Australian house prices will rise for the next three years on the back of the country's robust economy, an industry report commissioned by a large Australian mortgage insurer said Tuesday.

The report, commissioned by QBE and written by BIS Shrapnel, forecast median house price growth of 20% in Perth, Sydney and Adelaide over the next three years with prices in every major city in Australia rising by 9% or more.

Acknowledgements: Geoffrey Rogow, Wall Street Journal 11 October 2010



"If you can imagine it, you can achieve it
“If you can dream it, you can become it." William Arthur Ward


Anyone can compile information.
But you need experience and wisdom to interpret that information to give it value.


The answer is “you betcha!”

My son has just returned from two years in South America (where he financed himself playing poker on the internet).

However as he has over $5,000 cash in the bank, he’s “too wealthy” to have access to the job search resources at Job Services Australia – the government’s own gateway for job seeker to access training, skills development and work experience.

Apparently they don’t have the resources to help everyone.

What has this to do with pensions?

Everything – if they think that someone with $5000 cash is wealthy, what will they say to you and me when they don’t have the resources to help everyone with the pension?

What will the cut-off be?

Here are some questions that they might ask - Did you ever
have a good job? Do you own your own home? Did you waste your income on trips overseas? Did you ever have an expensive car? Did you send your kids to private schools?

You simply can’t rely on the government anymore – already the pension is sliced if a couple in their 70s own two cars. The theory is that two people who aren’t working don’t need two cars, and it’s a waste if they spend their pensions on needless cars.

If you would like me to help you explore your options for 20-25 years of comfortable retirement, contact me – Bernard Kelly – anytime. My email is


A report by Financial Engines (an America financial planning firm) has analysed 2.8 million individual employees’ 401(k) balances, investments and savings rates and the results are predictably grim.

Financial planners typically suggest workers aim for 70% of their final salaries in annual retirement income.

But Financial Engines concludes that 72% of workers have little chance of achieving that goal—on average, these workers will only be able to replace 45% of their income from Social Security and their 401(k)s combined.

Yes, many workers also have IRAs or taxable savings they can tap in retirement. But those accounts are unlikely to make up such a big shortfall.

Moreover, compared with two years ago, when Financial Engines first analyzed participants and their portfolios, many recession-battered workers are saving less.

For example, the first study, based on participants elections as of the end of 2007, found employees earning $75,000 to $100,000 were diverting an average of 9.6% of their salaries into their 401(k)s.

As of the end of 2009, their savings rate had fallen to 8.3%.

For those earning $50,000 to $75,000, the saving rate similarly fell, from 8.1% to 6.9%.

Source – Janet Novack, writing in Forbes blogs 4 October 2010


Research done by Samantha Maiden – writing in “The Australian” 3 October 2010 - concludes that house prices will keep rising.

The Department of Finance and Deregulation has urged Canberra to review housing programs, including redirecting rent subsidies to the task of encouraging new construction.

The Red Book, obtained by Maiden under Freedom of Information laws, says the failure of the market to respond by increasing the supply of houses is blamed on "poor planning, zoning, lack of land release and adequate infrastructure".

The shortfall in new houses is tipped to grow by 25,000 dwellings a year, placing upward pressure on prices.

While expectations that house prices will continue to rise is good news for people who already own a home or investment property, the advice warns it is "crucial" to push ahead with a reform agenda with the states, with rents also set to increase, "reducing living standards for non-home-owning Australians".

"The Australian housing market faces significant pressures with rising house prices affecting the capacity of people to enter the housing market," the advice warns.

"Over the last 10 years the cost of the median house in Australia has increased from approximately 3 1/2 times to five times average household income.

“The gap between total supply and underlying demand for dwellings is estimated to be about 202,000 dwellings at June 30, 2010, and grow by approximately 25,000 dwellings each year."

Commencing a portfolio of investment properties – to provide for 25 years of comfortable retirement – starts with just one affordable investment.

If you would like me – Bernard Kelly – to help you explore your options, contact me anytime. My email is


A study done recently in the USA has direct implications for Australia.

"The MetLife Report on Early Boomers” says those born between 1946 and 1955 will transform the concept of retirement by forgoing the tradition of a leisure-filled life.

Instead, their financial obligations among other things will encourage many of them to remain in the workforce, some indefinitely.

Many Boomers are unable to retire as anticipated, the study says, because they may have debt from putting their children through higher education, lingering mortgages from the last home up-grade, and recent borrowing against their homes.

Since they expect to live longer than their predecessors, they fear outliving their savings, and their financial nest eggs have been severely impacted by low interest rates and an uncooperative stock market.

Their family finances have also been stretched by the fact that one in four have adult children still living with them.

Fortunately this demographic cohert is highly educated, and he preponderance of white-collar workers in this group will also make it easier for them to continue working.

"The MetLife Report on Early Boomers: How America's Leading Edge Baby Boomers Will Transform Aging, Work & Retirement" can be downloaded from

Source Business Wire 30 September 2010

It's time to face the reality that you need to do something different if you want a different result to what’s facing you. Let me know if you would like me - Bernard Kelly - to help you explore your options.


Nearly three quarters of people believe retirement as we currently understand it will not be possible in the future, a BBC Newsnight poll has suggested.

Some 70% of the 1,000 asked thought it would not be feasible for people to stop work then live on a pension for up to 30 years, the ComRes survey found.

Some 72% of those in work were also worried about not having the funds to live as they would like in retirement.

More than three quarters (77%) thought younger people would get a worse deal.

And more than half (54%) thought it was unfair that younger generations would be worse off than those currently approaching retirement age.

Source: BBC Newsnight 7 September 2010

If you feel that your situation is similar, it’s not too late to do something different. Let me know if you would like me - Bernard Kelly - to help you explore your options.


Retirement is inevitable, so planning for it has certain merit.

My advice is to use whatever years you still have available to minimize whatever problems you are likely to face in the future.

There are several things you need to remember.

First, your body will age, and medical and hospital costs will rise.

And second, inflation will erode the purchasing power of your money.

If you want my thoughts on how best to prepare for retirement – even if you are in late career – contact me Bernard Kelly. My email is


I’ll be in Perth (Claremont Showgrounds) 9-12 November for WAMEX. Let me know if you would like to catch up for a chat.

I’d be happy to visit you at home in the evening – after the expo closes.


Some kind people want to pay me for this service.

Feel free to go to my membership site and pay $110 for a full membership

About Bernard Kelly:

Bernard Kelly BEcon MBA CRPC Australia’s Retirement Strategist®, is a highly sought-after advisor, retirement authority, thought-leader, author and radio commentator because he makes the complicated and mundane topics of investing and retirement fun! Bernard has over 20 years experience providing families with financial thought. He is the author of Live Your Dreams in Retirement, Property Investing for Couples, Goolwa by Breakfast and Raising Decent Kids into Substantial Wealth and publishes a fortnightly newsletter that reaches thousands of subscribers worldwide.
19 Prospect Street, Box Hill 3128 Australia. Tel 61-3-9899 8577 mobile 0414 778 518