Lifestyle Newsletter 15 August 2009

“COMFORTABLE LIFESTYLE” NOW COSTS $50,770

The latest results for the Westpac-ASFA Retirement Standard are available.

In the March quarter 2009, a retired couple will now need $50,770 pa for a “comfortable” lifestyle.

A “modest” lifestyle will cost $27,547 – only slightly more than the pension.

If you would like me to help you explore your options to achieve – or exceed – this “comfortable” lifestyle, contact me anytime.

My email is admin@retirelaughing.com and my mobile is 0414 778 518.


PROFITABLE HOBBY - MAKING SWINGS


If you want some stimulation where your hobby business can take you, you’ll definitely find a searchlight in this case study.


Barbara Clack lives on a large rural block in the hills just inland from the beach resort of Noosa, in Australia.

In 1993, she started making swings and even today she has only two part-time employees. So it’s not a massive operation, by any stretch of the imagination, even after 16 years. It’s just a very sweet business.

Initially Barbara did everything herself – buying the fabrics, timber and cords then undertaking the actual manufacture as well as finding retail outlets to supply to. But gradually, once she had established sources for inputs and had found shops that would take her swings, and she became familiar with manufacturing process, a process system emerged, and she has continued to improve on that, “one percent each time”.

The name of her business is Swingz n Thingz and the website is swingz.com.au

Barbara has never had a physical shop – and today of course it’s all done online. Her site is a stunningly beautiful and fully functional e-commerce business.

The products are basically hanging chairs and hammocks - for use at home on the verandah, for camping holidays, fishing, or sailing on your boat.

Starting with one product, the range has now expanded over the years to 12 different product categories, such as kids’ swings or Mexican hammocks. Prices range up to around $300.

When Barbara started her “hobby business” the pricing model was 25% materials 25% for waste 25% admin and marketing and 25% profit. As there was little competition, and her outlets were often in holiday destinations, she was able to earn a handsome profit on each item.

The low volume of unit sales was the problem back then. But as the wastage became less, her profits increased without having to increase prices.

Now of course selling on the internet has allowed her to increase her sales volume considerably and of course selling into a leisure market means that price is not so much of an issue with customers.

Retail sales are generated off the internet (via Google Adwords), from small advertisements placed down the back in gardening magazines, and of course Barbara continues to wholesale to high street shops.



TEN RETIREMENT ISSUES TO CONSIDER

No matter how close or far away you are from retirement - you need to take action now...RIGHT AWAY...

It’s not too late to act! And I am offering Help for your retirement - and I am talking about FREE help - is just a mouse-click away

The issues that you should to be thinking about – in additional to your financial needs - are

1. Health issues

2. Legal issues

3. Relationship issues

4. How to make productive use of time

5. Apprehensions & Fear about aging

6. Life Purpose issues

7. Life Balance

8. Relocation issues & Housing issues

9. Safety issues

Let me know if I can help. I’m Bernard Kelly and my email is

admin@retirelaughing.com


EVERYONE IS WORKING LONGER

According to data from the Organisation for Economic Co-operation and Development, there is growing acceptance of longer working lives in the industrialised world, with rising workforce participation rates among older people in many countries, even without legislation.
In the US, those over 65 in the workforce in 2007 were 15.5%, up from 12.5% in 2000.

In Australia, 8.7% of those above 65 were working in 2007, up from 6.1% in 2000.

For all OECD countries, the figures were 10.5% in 2000 and 11.5% in 2007.

Source: “Financial Times” London 25 May 2009


KEEP YOUR SUPER BENEFICIARIES UPDATED

We all focus on accumulating money for our retirement as a way to help enjoy a long and financially comfortable life.

Much less thought is put into what becomes of those assets after your “estate event” occurs.This is particularly true of superannuation, as we generally don’t pay much attention to it.

When you open an individual superannuation account, you should have completed a designated beneficiary form.

The most common beneficiaries are spouses, children or other family members – however when you went into your first superannuation, it is unlikely that you had a spouse or children at that time and you probably don’t even remember the names you listed on the designated beneficiary form.

Many people assume their current will provides all of the necessary instructions about the disposition of assets at death, including those in your super fund.

But in fact, the designated beneficiary forms filed with your super accounts will take precedence over your will.

The reason is that a retirement account is not considered a part of an estate.

Given that a lot of things change in life, you’ll probably need to go back to your super fund and nominate (given your relationships today) who you want you super to pass to.

LIFESTYLE NEWSLETTER 15 December 2008

feel free to contact Bernard Kelly (right) admin@retirelaughing.com

MALAYSIA LURES RETIREES


Malaysia now appears to be the destination for choice for a growing number of retirees.

It offers the “Malaysia My Second Home” program to entice middle income retirees with a ten year renewable visa, and other benefits – such as the ability to own real estate, no tax on offshore income, and options to buy locally made cars tax free.

The appeal of south east Asia as a retirement destination is endless summers and low daily living costs.

Medical facilities, once a major worry in less developed countries, are highly regarded in Malaysia.

Malaysia offers secure land titles, a liquid market, a favourable tax regime, the ability to borrow against the property to enhance the investment return and stable government.



Applicants are expected to be financially capable of supporting themselves for ten years on this program, without the need to work and they must lodge a fixed deposit placement of RM150,000 (US$42,000).

ENCORE CAREER - TEACHING



Teaching appears to be the encore career of choice, judging from the boom in articles and studies about people taking up the challenge of public school classrooms.



“Clearly it’s not for the money,” writes Meg McConahey in the Santa Rosa Press Democrat.





“For many, it is a calling that went unheeded early in life in favor of a more lucrative career. For others, it is a chance to reconnect with a subject they once fell in love with, whether it be art, literature or history.”



The story highlights Dave Donnelly, who co-founded a successful biotech company, sold it to a Japanese corporation, and returned to his first love — teaching.





“Students are amazing. They’re funny. They have incredible insight. I write down pages of things I’ve learned from students,” the economics teacher at Sonoma Valley High School told McConahey.



Education, and teaching in particular, topped the list of desired encore careers in the MetLife Foundation/Civic Ventures Encore Career Survey of 44-70 year olds, released earlier this year.





That finding was confirmed by a survey for the Woodrow Wilson National Fellowship Foundation in Princeton, N.J., which found that 42 percent of college-educated adults ages 24 to 60 would consider teaching as a career.



“There are many people of this generation who are extremely idealistic and who came out of the spirit of all that was going on when they were growing up and had a great desire to make a difference in many different ways,” said John Gomperts, president of Civic Ventures, which publishes Encore.org.



“But a lot of people get diverted, and life intervenes and you end up being something you never thought you were going to be. And yet for some, there is a little flame that still burns with idealism and their dreams deferred.”



Sourced from encore.com 15 November 2008


PROFITABLE HOBBY – SELLING RAW PEANUTS

This hobby business would suit someone who’s already not working a full week.

If you’re ever worked in an office or factory, you will be familiar with Honesty Snacks – the mini stand of low value chocolates with an adjacent honesty box for your money.

And even more profitable hobby business (so I’m told) is to package up raw peanuts and sell them in factories.

You don’t need much equipment to get started, and raw peanuts are easy to source.

You’ll need to pack 60 grams into clear cellophane bags and arrange a fixed schedule to refill your display (and collect your money).

Pricing might be tricky – but try to sell at four times the cost of the ingredients. The rationale is one quarter for the raw materials, one quarter for wastage, one quarter for overheads, and one quarter for profit.

If customers baulk at your price, just say “unless I make a profit, I can’t provide the service”.



PROFITABLE HOBBY - SPIT ROAST CATERING

If you have had any experience in catering for a large family group, chances are that you hired a spit roast rotisserie to handle the cooking.

Now you could move on and upwards by commencing a (weekend) spit roast catering microenterprise yourself.

THE BASICS

You probably need to put a business plan down on a sheet of paper – nothing too elaborate – however it will help you to avoid mistakes.

THE PRODUCT

Let’s assume that you will start with offering “a popular value for money option suitable for all occasions” service and only on Saturday evenings.

To get you established in the marketplace, you will need to know who to target and then develop an appropriate brochure and website.

MARKETING

Basic spit roast catering is ideal for informal groups – such football and sporting clubs, community centres, and church groups.

Once you establish yourself in one of these markets, your business will expand automatically as you will know where to look for customers, and other groups will hear about you and come automatically to you.

Ideally you will need a brochure, a website, and a mobile phone.

A simple website is essential for this hobby business, as your target market will go online to search for supplies when the committee decides to have a spit roast event.

Try to obtain the mobile number 1300774877 which you promote as 1300SPITROAST. Don’t worry about the length of the name, because your phone will ring once they get to ten digits i.e. 1300SPITRO

SETUP COSTS

You’ll need to acquire a rotisserie (buy one second hand off eBay).



If you plan on a rotisserie suitable for a whole pig, lamb, or pieces of meat on the prongs or grills, you might be lucky and find one for sale for less than $1,000. Otherwise you may have to buy one from a manufacture for around $1,500.

As well you’ll need a trailer to transport it, and you’ll need to buy linen table cloths for the buffet, plus servingware, tableware and serviettes.

Plastic plates and utensils will be adequate for informal events.

And as you’ll need staff to cook, carve, serve and clean up, you will need to formalise a business structure. The cheapest form of business ownership is to register as a sole trader.

THE MENU

Start by offering only one menu - Crackled Roast Pork with Apple Sauce with say six vegetables.

Plus freshly baked breads & butter packs

Plus a choice of say three desserts.

PRICING

Spit roast business charge per person, for a minimum number.

An appropriate pricing could be $35 per person, with catering provided for a minimum 50 guests.

If anyone quibbles about the price, just say “if I don’t make a profit, I can’t provide the service” and move on to your next client.

REVENUES

With upgrades, your average revenues should come in around $2,000 of which $1000 should be profit (before you pay yourself a wage).

By your second year, you should have recovered your start-up costs, and be making true profits.

THE FUTURE

As this profitable hobby grows, you will eventually need to have access to a commercial food preparation area and kitchen, with the necessary approvals from the relevant authorities.
Don’t build this commercial kitchen into your family home, as when the time comes to move on, you won’t be able to separate the home from the business, and consequently you won’t be able to sell either.

In time, this microenterprise will have developed a repeat client base, and will be able to be sold for a tidy sum.

If you need a website to assist you with your profitable hobby, go to www.valuewebsites.info


IDEAS FOR PROFITABLE HOBBIES

If you have even only the slightest notion of what your hobby is (or could be), go to PayPal Shops to see what others in your niche are selling.

The link is https://www.paypal.com/row/cgi-bin/webscr?cmd=_shop-ext#

As a simple example, if you have an interest in herbal remedies, go to PayPal Shops and look under “herbal remedies”.

There are hundreds of products there, each being made by a home based business and being sold for real dollars.

As you browse this online information resource, you will be able to create a list of what products you are attracted to. Then you will be able to create those which will be most appealing to customers and clients.



Coming soon: additional profitable hobbies at www.hobbiesforprofit.com

LIFESTYLE NEWSLETTER - 15 November 2008

If you retire with more, and with more options, we will have succeeded!


LOW COST HOLIDAYS – SWAP YOUR HOME

If you feel that the costs of holidays will get out of reach for you in the years ahead, explore this option without delay.

There are many sites on the internet where you can research home swapping.

A typical site is Aussie House Swap at www.aussiehouseswap.com.au

They say they are a quality home exchange database for those who love holidaying without huge accommodation costs.

Visitors can scroll the house listings for free but only members are able to make contact with other members privately via email.

Members are in total control with who they want to swap with e.g. seniors may prefer to swap with other seniors.

Membership costs $48 for 12 months.


PERFECT GIFT FOR BOOMERS

Here’s a hilarious board game about retirement for baby boomers.

It combines nostalgia, life experiences and fun.

The game builds on three concepts involving the existence of a future retiree: life experiences, health and property.

The game is played with two, four or six people and takes about 90 minutes to play.

The game is available at www.BabyBoomerRetirementGame.com

GO OVERSEAS FOR ELECTIVE HEALTH CARE PROCEDURES

With today’s high cost of hospital care, many Australians are boarding planes bound for exotic places -- not for sightseeing or vacation but for knee and hip replacement surgery, bariatric procedures and heart by-pass surgery.

Every area of business is moving toward a global marketplace and healthcare is no different.

Historically citizens from around the world came to the centres of excellence in the United States, Europe and Australia and that of course continues.

However, the high cost of hospital care and the advances in medical technology around the world are encouraging citizens of developed nations to travel elsewhere for major elective health procedures.

If this appeals to you, a major provider of medical tourism is BridgeHealth International, Inc.

They say that they have assembled the most extensive provider network in the industry, with over 25 hospitals and 600 physicians, dentists and health professionals in more than 10 countries - and growing.

Their network of accredited facilities and world-class practitioners allows you to take advantage of the benefits of medical travel without the uncertainties and guesswork.

SOCIAL NETWORKING FOR BOOMERS

BOOMj bills itself as the leading niche portal with social networking and e-commerce serving Baby Boomers and Generation Jones.

The portal integrates content, social networking, e-commerce, and advertising, in health, finance, politics, technology, entertainment, travel, and lifestyle.

Go to www.boomj.com

PROFITABLE HOBBY – WRITE AN E-BOOK

There are probably thousands of people that would love to know your secrets or tips you've discovered over time about your hobby or expertise.

Publish what you know and love... and monetize it.

You simple create an informational web site and blend it with affiliate programs, blogs, referral deals and AdSense Ads.

Over time you could earn $1000 per month from an online, niche-oriented business.

And once you have mastered that level of income, you would then want to go for $1000 per week, wouldn’t you?

Start with one e-book and create a web site around it.

If you need a website that enables you to make sales, go to

www.valuewebsites.info


PROFITABLE HOBBY – VENDING MACHINES


Peter Arnold emailed me about vending machines.

He has 42 vending machines for sale as he is moving to the beach.

They are bulk lolly machines and they vend a handful of lollies such as M&M’s, Jelly Beans, Nuts, etc, into little white paper bags.

This is a genuine part-time small hobby business (where the hobby is making money) as a machine only needs servicing (re-stocking, collecting money) every 4-6 weeks. So if you only serviced 10 in one day, that’s only 4-5 days work every 4-6 weeks.

None of the machines are on location at the moment, but good sites should be easy to find. They do particularly well adjacent to kid’s playrooms in hotels, in video shops or in 24 hour convenience stores, he says.

Sales of $1000 per month is easily achievable, says Peter. One machine in a very good location can achieve $150-$200/month, so if effort is put into finding good locations then a return more than $950 is possible. It costs about $40 to fill a machine

The purchase price for the 42 machines is $28,500 with a discount given for site finding costs, and start-up stock. Full training, support materials, spare parts, and phone support is included.

You can obtain further details from Peter on (07) 3321 1107

WILL YOU HAVE ENOUGH?

If you feel that you may not have enough for 20-25 years of dignified retirement, let me help you explore your options.

Contact me – Bernard Kelly – anytime on admin@retirelaughing.com

Product Newsletter 1 July 2008

An investment in Brisbane being built for a private client in Perth (right)




WHY SHOOT FOR 10 INVESTMENTS?

A private client recently asked me why I encourage everyone to go for ten investment properties.

The answer comes in two parts.

Firstly in my experience, if you want a little result, you can put a little plan in place.

However if you want a big result, you would put a big plan in place, and work at it consistently over time.

Then even if you don’t achieve the big result, the odds are that you will have exceeded the little result that would have emerged had you chosen that little plan.

The second part of my reply relieves on my experience that real estate investing can provide awesome results, and it is available to everyone.

It’s a simple two part answer, yet this strategy works.

If you want to explore your options, contact me – Bernard Kelly - any time on admin@retirelaughing.com

Remember you have a choice – between a dignified retirement or living on welfare. What would you prefer?



POSITIVE GEARING OR NEGATIVE GEARING?

You might read somewhere that “positively geared property puts money into your pocket. In contrast, a negatively geared property takes it out”.

Now this bald statement is true – however you have to see the whole picture.

In particular, to achieve positive gearing, you will need an older property so maintenance could be a major cash flow drain.

So after you pay for the repairs and upkeep, if you still have a profit, you will pay income tax.

And of course, an older property will usually not have the depreciation you need to shield you from this income tax.

So it may be that a positively geared property may not put money into your pocket after all.

CAPTIAL GROWTH

The other side of the coin, of course, is capital growth.

How does a positive geared property compare with one which is negatively geared?

Just look at where most positively geared properties are located, and you will soon find that they are generally in regions where there are low rates of capital growth.

Let’s say that the capital growth rate away from capital cities is 3½%. At this rate, it will take 20 years for an investment to double in value.

In contrast, a negatively geared investment is typically in a growth corridor, where the capital growth could be say 9% pa. At this rate, it will only take seven years for an investment to double in value, and by then it should have become positive.

SUMMARY

So a positive geared property is not likely to put money in your pocket, while a negatively geared property is likely to deliver substantial capital appreciation, and become positive within a few years.

Which would you prefer?

Would you prefer to retire with dignity or struggle to survive on the pension?

To explore your options, contact me – Bernard Kelly - anytime at admin@retirelaughing.com



BRISBANE WILL CONTINUE TO LEAD



Economic forecaster BIS Shrapnel expects house prices to continue advancing over the next three years, and faster than other capitals.



The BIS Shrapnel Residential Property Prospects, 2008 to 2011 report also says that banks may offer more attractive lending rates in 2009.



The report said residential property markets would experience marginal price increases in 2008/09 as the population was expected to grow by 1.5 per cent, its highest level since the late 1980s.



Median house prices in Brisbane were expected to grow 22 per cent in the three years to June 2011, outstripping other capitals.



Sydney values were expected to climb by 18 per cent during the next three years.



Melbourne and Adelaide median house prices were tipped to grow by 16 per cent to June 2011, followed by Canberra's 15 per cent.



Hobart house prices were tipped to rise by 14 per cent by June 2011.



Perth was predicted to be up 6 per cent in the three years to mid-2011.



If you feel that you would like to add to your investments to ensure that you will have something extra for 20-25 years of a dignified retirement, contact me anytime: Bernard Kelly admin@retirelaughing.com


HOUSING SHORTAGE TO PERSIST

Good news for investors in the Australian market – there will be a persistent demand as the housing shortfall is likely to last at least 10 years.

A report by Macromonitor “Australian Construction Outlook 2008 – Residential Building” predicts that any immediate increased construction activity will not be sufficient to overcome the current massive backlog, and looking further ahead, efforts to eliminate the backlog will be constrained by lack of land and a shortage of skilled labour.

Consequently demand will exceed supply, and values will continue rising. At the same time, rental returns can also be expected to keep rising.

If you want me to help you create or expand your portfolio, phone me anytime Bernard Kelly 0414 778 518 admin@retirelaughing.com skype: bernard.kelly1944


TEN PROVEN GOLDEN RULES



At a time when investing is growing more complex daily as we are bombarded with new products, new strategies and ever changing market conditions, the News Limited website recently published this list of 10 simple golden rules of investing:



1. Invest regularly
2. Stay the course
3. Diversify
4. Avoid get rich schemes
5. Regular reviews
6. Get the structure right
7. Borrow to invest
8. Look long term
9. Seek professional advice
10. Spend less than you earn

TAX ISSUES FOR KIWI CLIENTS



Just a note of interest to my New Zealand clients: there are tax issues when borrowing money offshore.



Non-resident withholding tax (NRWT) is payable to the New Zealand IRD at 10 per cent of the interest that's paid on the foreign debt.



However, if the investor chooses a bank in Australia that is a registered bank in New Zealand, for example Westpac, they are exempt from NRWT. If a bank isn't registered in New Zealand, NRWT exposure can reduce to 2 per cent of the foreign interest bill if the borrower applies for approved issuer levy status. This is a tax-deductible expense in New Zealand.



Kiwis investing overseas need to be aware that under accrual rules, they may need to pay tax on the fluctuating value in kiwi dollars of their foreign debt. Foreign currency movements can give the investor windfall tax losses, or assessable income, depending on which way the exchange rate moves.



Kiwis investing in Australian property must file tax returns in both countries. Owning the property in your personal name simplifies tax-filing obligations in Australia. Gains or losses on the Australian property can be included in the New Zealand tax return in the normal way.


Book Review: The Venus Approach to Real-Estate Investing by S. A. Philipp and Barbara Heil-Sonneck

There is a heap of inspiration and advice found in The Venus Approach to Real Estate Investing - America's Most Successful Women Real-Estate Investors Reveal It All: Trade Secrets, Stiletto Methods and Motherly Love by S. A. Philipp and Barbara Heil-Sonneck. Available from amazon.com

Written to encourage and empower women to become successful real-estate investors, this 220-page paperback sandwiches the first-person stories of nine such successful female investors between introductory chapters with provocative titles like "Where Low Testosterone Equals a Vastly Different Investment Approach" and concluding chapters that discuss what it takes to be successful in the field.



The book is a combination of inspiration, motivation, persuasion, advice, and how-to. In lively and always-understandable prose, the authors present real-estate investing as a viable and rewarding option for which women are ideally suited.



The first-person stories illustrate the variety in the real-estate investment business. However, these women have much in common too. All show themselves to be dedicated, hard-working and in love with what they do. Also, the main reasons they give for going into the business (to provide for their families, to gain financial independence, to experience the fulfillment of helping others, and to maintain flexibility of work hours and place) are repeated in story after story.



This book would make an excellent resource for any woman, old or young, with an interest in real-estate investing. It contains enough information about the business and the qualities needed to be successful to tell the reader whether or not this career is for her. Additionally, the book has a wealth of Web site information for those wanting to find out more about the book's contributors and their specialties, and begin educating themselves.

Lifestyle Newsletter 15 June 2008

Our goal - helping you from zero investment properties to ten - for your retirement!

BOOMERS ARE “OVER CONFIDENT”

A recent survey by Lincoln Financial Group in the United States sought to capture a thorough understanding of how boomers perceive long-term care and long-term care insurance.

It uncovered a number of very interesting and thought-provoking findings. Most significant, however, is an “overconfidence” effect plaguing the baby boom generation.

For example, while more than 80% of boomers surveyed say they know that long-term care costs could significantly reduce their retirement income and assets, 73% can’t believe it will happen to them and are completely ignoring what they know will happen to everybody else.

If you personally are not “over confident that you can afford 20-25 years of dignified retirement” and plan to take action, contact me anytime: I’m Bernard Kelly at admin@retirelaughing.com

NEW PRONOUNCATION TO LEARN: 100th

I remember when Richard Nixon was elected President of the United States, a friend said to me “President Nixon – it’s difficult to pronounce, but we’ll get used to it”. As we did.

Now here’s a new word which, at the moment, is difficult to pronounce: 100th.

We’ll get used to it – as already you can buy birthday cards for someone you know who is having their 100th birthday.

If the birthday card people can make money out of these cards, they obviously see there’s a market emerging. They obviously expect that many of us will get there.

But if you don’t think you’ll have enough for 20-25 years of a dignified retirement, contact me anytime – Bernard Kelly mobile 0414 778 518 skype bernard.kelly1944 or just hit the reply email button.

PETER CUNDELL TO RETIRE - AGE 80

Peter Cundell, the host of Gardening Australia on ABCTV, has announced that he will retire at the conclusion of this year’s series.

He is 80.

More and more of us will not be retiring at age 65. One reason is that we can’t afford to. Another reason is “why should I? I’m still young”.

If you want me to help you explore your options, feel free to contact me anytime.

HOLLYWOOD ACKNOWLEDGES “SENIORIZATION” OF SOCIETY

Harrison Ford is 65 years old and still starring as Indiana Jones. Clint Eastwood is 78, and about to do another Dirty Harry movie.

Helen Mirren is 63, Faye Dunaway is 63 and Judy Dench is 73. They each continue to accumulate films and rewards.

Society continues to age, and Hollywood is moving with the times.

The point is, of course, that we will all live longer than our parents. For them, the expectation was to retire at 60 or 65 and die ten years later. The pension was adequate for their brief retirement.

But today, we have to self-fund our renaissance years.

If you feel that you won’t have enough for 20-25 years of an active, dignified retirement, phone me Bernard Kelly anytime on 0414 778 518.

FIVE RETIREMENT MUST-KNOWS

Human beings, it is said, are distinguished from our animal cousins (no slur against the in-laws intended) by our ability to plan ahead. While that may be true, it's difficult enough for most of us to plan anything just six months ahead, like a summer holiday. So how on earth are we supposed to deal with something in the distant future -- like retirement?

In an effort to kick-start your retirement plans, we'll take a cue from the animal kingdom's "fight or flight" mentality and scare you into action: If you don't do something right now to assure your retirement, you may end up living in a caravan park, on the pension.

So to avoid that outcome, I offer my “Five Retirement Must-Knows”. They are pretty simple:

1. This isn't your parents' retirement.

Think back about 30 years. Our parents relied on the pension and savings. Retirement didn't last too long because life expectancy didn't go far beyond the age of 70. And the average male didn't even make it that far.

Your retirement will be very different. You will live longer, and you'll have a more active (i.e. expensive) lifestyle. Your parents may have survived on 70% of their pre-retirement income (perhaps you've heard this common rule of thumb?). But that's probably not enough for you.

2. No one's protecting your back. Sorry 'bout that.

If you’re basing your retirement on the pension, super and savings, think again.

The Pension: It’s just over $20,000 for a couple.

Now that’s under the Poverty Line. Imagine that you are fortunate and have your house paid off, but given the cost of living and increasing council rates and the need to keep paying for private medical insurance, retirees simply can’t survive on the pension.

But don't expect that to change. As the baby boomers retire and put a strain on government welfare, benefits will have to be cut.

Superannuation: When you think about how they are marketing superannuation, it’s all about the immediate tax savings. They never say “it will make you wealthy” or “you’ll have enough” or “it’s inflation protected”.

Superannuation is forced savings, but the major saving is in Canberra - the government won’t need to pay us all the pension. (They know they can’t afford to). So don’t rely on your super.

Go on. Do the numbers. In what year into your retirement will your super run out? And what will be the purchasing power of your entitlements in 10,15 and 20 years’ time?

Savings: No-one actually saves. We only save 5 cents in every $100 that we earn. However if we turn to investing, the good news is that this one decision -- to invest or not to invest -- will have the biggest impact on the quality of your post-work life. As we are good at paying our bills, we will keep investing automatically - once we start.

3. It's never too early -- or too late -- to start investing

Here are the facts about starting early

Let’s take four investors: A who is aged 25, B aged 35, C aged 45, D aged 55.

Let’s assume that each of them invested $5,000 per year for ten years, but after that never added another dollar to their investment.

As you know, three things -- that are completely under your control -- can have a sizable impact on your retirement nestegg: 1) how much you invest, 2) the rate of return you earn on your investments, and 3) the number of years those investments have to grow. So no matter your age, the sooner you start, the more money -- and options -- you'll have.

Even though each person invested the same amount of money, they have significantly different amounts at retirement. For example, Investor A began investing $5,000 a year when she was 25 years old and stopped when she was 35. For the next 30 years, she didn't contribute any more money and she didn't withdraw any money. She just left the account alone.

Investor B, on the other hand, waited until he was 35 years old and contributed $5,000 a year until he was 45. As you can see, that difference of a decade is substantial. At retirement,

Investor A has $420,000 more than Investor B -- over twice as much. In fact, each investor in the chart above has more than twice as much as the person who started 10 years later (except for Investor D, of course, but she's a lot better off starting at age 55 than someone who waited until age 65).

4. There's really only one place your retirement savings should go.

While we've got our calculators out, let's take a look at what an investment can do when you leverage the bank’s money into residential property investment.

When the tenant pays half of your costs, and the taxman paying between 25-33%, you’re riding the gravy train.

Think now about your retirement. When will it occur -- 20 years from now, five years, tomorrow? If you're close to it, or are already retired, how long must the money last? Now think about your retirement investments. Is the bulk of your money positioned for long-term growth (i.e. property) or short-term stability and income (i.e. shares, super and cash)? The mix you have in these instruments is something you must decide for yourself.

5. When Canberra gives you an inch, take a mile.

Our last revelation about planning for retirement is, quite simply, this: Be greedy.

The tax legislation lays out what the maximum the government can take from you – provided that you agree to let your money go to Canberra in the first place.

Remember, it’s your money, and it’s quite legal to spend it on your investment properties. The taxman doesn’t take your money – in reality, you give it to him.

So be greedy, and keep it for yourself.


If you feel that I can help you explore your options, contact me: Bernard Kelly mobile 0414 778 518 cell 61 414 778 518 admin@retirelaughing.com skype: bernard.kelly1944

Lifestyle Newsletter 15 May 2008

TOTAL REVAMP OF WEBSITE

We have totally revamped our website at
www.retirelaughing.com

Such is the pace of technology today, that after only four years, the old site had become dated. So we pensioned it off and installed a total new look – now all of our services are in one place.

Go see. www.retirelaughing.com


BOOST YOUR INCOME

If you are short on income in your retirement, you could consider hosting an international student.

Companies such as www.familystayaustralia.com will pay you $200+ per week per student.


LIVE BETTER – START A STUDY PROGRAM

I have just come across some research1 completed in 2001.

In brief, a research project was established involving 300 elderly subjects (median age 80). 150 were given a structured creative arts educational program and the other 150 merely followed as a control group.

The results showed significantly better overall health, diminished use of medications, diminished vision problems and a general increase in "intelligence" for the ones receiving the additional education.

Modern studies are teaching us that there is no doubt that education can be regenerative.

So I’m off to my creative arts program right now.
1 “Creativity and Aging Study: The Impact of Professionally Conducted Cultural Programs on Older Adults” by Gene Cohen, M.D., Ph.D., Director, Center on Aging Health and Humanities, George Washington University

FIRST WEB-TV DEDICATED TO "YOUNG AGE"

www.longeviTV.com is a French web-TV site promoting longevity.

It recommends taking precautions in terms of education, nutrition, physical activity, intellectual activity, or volunteer work, leisure, and lifestyle.

They say it is indeed proven that all these aspects play a major role in our health: an inactive person has a mortality rate five times higher than an active person.

"It is never too early to start, it is never too late", says their promotional brochure.


(if you want the translation, type "longeviTV" into Google, and then - when it appears - click on "translate this page")

HIGH PROFILE INVESTOR

Matt Brown, 36, the NSW Minister for Housing, owns 14 properties


TRIVIA - 9 January 1921 Independence Day Australia


Most Australians consider January 1st 1901 as the date when Australia became an independent nation.

But in fact Australia (along with Canada, Nova Scotia, South Africa and New Zealand) were granted independence on 9 January 1921 by an Act of the British Parliament “in recognition of services to the Empire during the Great War”.

What happened in Australia on January 1st 1901 was that each the six colonies were united to become one self governing colony, known as “the Commonwealth of Australia”.

Independence was still 20 years away


Until next time

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

Your greatest compliment is a Personal Referral

Product Newsletter 1 April 2008

Pouring the Slab at an Investment in Goodna Heights, in the south west suburbs of Brisbane, that I shared recently with a private client.

POSITIVE EXPECTATION


Tim Lawless, research director of RP Data, writing in BRW 21 February said

“Queensland’s south-eastern corner is the pick for the strongest medium-term growth.

“In addition, the state economy is growing at the second-fastest rate in the nation, the resources sector is booming and population growth in the region remains high.

“Growth in Brisbane will slow to more sustainable levels this year, but is likely to remain above 10 per cent over the next 12 months at least.”



WHAT IF THE ECONOMY CRASHES?


I was recently asked “What if the economy crashes?”

My reply was along the following lines:

“Thanks for voicing your reservations – if you didn’t have some concerns then I’d be reaching out to take your pulse to see that you’re still with us.

“You must remember that property investments are for the long term – you told me that you have only $100,000 in super. So you should consider putting one in place now, so that in five years - when you come to retire – you will have at least one running for you. Then if you live off your super for two years, then an investment – one that a family would pay say $400,000 today to live in – should be well in excess of that value.

“Since records began, property has increased three times in every 21 years. Which is why the commentators say ‘property doubles every seven to ten years’.

“And if you have ever thought ‘how will young couples ever be able to afford a family home?’ then you too know that property values increase over time.


“Over this past 150 years, there have been depressions and recessions, world wars, 22% interest rates, change of governments, financial meltdowns, stock market crashes, you name it. Even the impact of the ‘recession that we had to have’ in 1991 only lasted four years before property values exceeded what they were in 1990.

“Don’t let the current crop of bad news distract you from taking action to ensure some form of dignified retirement.

“I know it’s a watershed moment for you – but whether you invest, or if you don’t, there is definitely a foreseeable outcome either way. Destiny is a matter of choice, not chance.

“Which outcome would you prefer?”



WHY YOU NEED A FUNDING STRATEGIST


Banks are in the business of lending money. They are not in the business of helping you put something extra aside for your retirement.

So they try to tempt you with “the lowest interest rate”. Unfortunately, as an investor, you will find that generally such loan products won’t let you make extra repayments nor will you have an offset account.

The same goes for “honeymoon rate” loans. The banks don’t give money away, so after the initial honeymoon period you’ll be paying a high variable rate, and there will be solid penalty exit fees if you try to go to another lender. They will make the same off your loan – over time – as off every other client’s facility.

The only way to obtain the best package is to talk with a funding strategist.

I can introduce you to a funding strategist at the peak of their profession.

Phone me Bernard Kelly anytime on 0414 778 518 cell 61- 414-778 518



COMMITMENT TO PRIVATE CLIENTS

The average investor can’t tell if my solutions are truly exceptional or just so-so.

But I believe so strongly in this proven and successful strategy, I am prepared to share the risk with you. And it’s this:

· Provided you follow my strategy, if you ever are without a tenant for more than four weeks at any time in the first three years, then I will pay you 85% of the initial rent from week five onwards.



LIVE ON-LINE VIDEO

I have put my seminars on-line.

There are ten clips, each of three minutes. Together they cover the full content of my live seminars that I deliver around the country.

You can see them on you-tube. Just go to http://www.youtube.com/ and type in “Bernard Kelly”



Regards


Bernard Kelly http://www.retirelaughing.com/ 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.

Lifestyle Newsletter 15 March 2008

HOW MUCH CAN YOU SPEND IN RETIREMENT?

Now this is an interesting question.

The answer is equally interesting as it relies on four elements – how much you have on the day you retire, whether it’s in super or property, how long you will live, and how much you intend to leave behind.

Let’s say you have $500,000 in super when you retire, that the “estate event” i.e. when you die is 17 years hence, and you plan to leave nothing to your survivors.

The answer is that you will be able to spend $36,000 pa.

However if you lived an additional ten years, this number becomes just $30,000 pa.

So on these assumptions, a 10 year increase in life expectancy will reduce your likely retirement income by 17%. The problem is of course knowing when to factor your “estate event” into your calculations.

Of course, if you have this $500,000 in super when you retire, your standard of living will be falling as the purchasing power of your income is not inflation protected. Heaven only knows what $30,000 as an allocated pension will buy when you’re 90.

Now $500,000 is really not enough for a dignified retirement of 20-25 years, but at least if your $500,000 is in property, you can expect that the purchasing power of the increasing rents that you will be receiving will ensure that you will be protected against the revenges of inflation. You may need to take out a bit less initially, however you will have a perpetual inflation hedge.

For good sound, logical reasons, I like property better than super. In particular, with property, it doesn’t matter when your “estate event” occurs.


Let me know if I can help you further explore your investment options.

Phone me – Bernard Kelly – anytime. Mobile 0414 778 518


BOOMERS WANT TO KEEP WORKING

A survey conducted by the Australian Psychological Society of 1500 respondents asked the question: Why would baby boomers want to continue working?

Naturally there was a high response for “the money”, but 50% said they wanted to continue because their work was satisfying, 50% said work keeps their mind alert, 46% said they feel valued at work, and 43% said they would miss the relationships that they have established.

A quarter of respondents are not planning not to retire before age 69, while another quarter are seriously thinking of opting out between 60 and 65.

reported in “The Courier-Mail”, 16 Feb 2008


ONLY 40% OF WORKERS CAN CHOOSE WHEN TO RETIRE

The French national pensions authority – the Caisse Nationale d’Assurance Vieillesse – recently surveyed active retirees who had retired prior to age 65.

The question was “why did you retire early?”

The answers were mixed, however one interesting result was that only 40% were able to leave on their own terms. The others - fully 60% - felt that they had been eased out.

Employees who felt they had been eased out complained of the deterioration in their working conditions, the deteriorating business climate (lack of recognition and consideration, loss of a serene and friendly atmosphere generated by the race to the bottom and performance ...) and the arduous physical but also psychological work (stress, fatigue).

While there is growing, and widespread support by government, employers and colleagues to stay on, the report highlights traditional strategies to remove older workers are still prevalent. These include abolition of the job, and assignment of unattractive tasks.

Of the 40% who are able to elect to retire when it suited them, half were self employed business owners and self employed professionals. The other half were employees who had investments in place.

Employees with investments report that they are generally more relaxed about expected changes to the government pension, in comparison to employees without investments.


TURN A HOBBY INTO A PROFITABLE HOBBY

I was chatting recently on the phone with someone who may not be able to become a client, but who none-the-less needs to boost income for their retirement.

It turned out that this lady’s husband likes to do woodwork in their garage, so I suggested that this hobby could become a small business.

She was willing to explore this option, but how could they ever know what products to make, and what prices to charge?

I suggested that the answers to these questions are readily available on the web – at Paypal Shops.

To get some ideas of what products are viable, we went there and searched for something that a hobby woodworker could make – and we decided to search on “dolls’ houses”.

And we found that the range of product that is available from other hobby woodworkers who make “dolls houses” is quite extensive – including bird breeding boxes, wind chimes, train whistles, door stops etc. The list goes on and on and on.

And most items could be sold at a Sunday market.

So there is the foundation for a profitable hobby business.

Alternatively if your hobby is say, music, you could start an on-line business.

How? I hear you saying.

Once again, just go to Paypal Shops and type in “music”.

You could find something there that strikes your interest – personally I was quite intrigued with the on-line shop that sells sheet music (with the potential to link to other sites who will pay you a referral fee).

So go for it. Turn your hobby into a profitable hobby.


Regards


Bernard Kelly www.retirelaughing.com mobile 0414 778 518 cell phone 61 414 778 518

Product Newsletter 1 March 08

Our goal – helping you from zero investment properties to ten.



WHY BRISBANE VALUES WILL REMAIN BUOYANT


Investors can remain confident that capital growth in our preferred suburbs in Brisbane (adjacent to the south west economic zone) will remain strong for the foreseeable future.

The underlying issue is that Australia – as a nation – builds only 150,000 new dwellings each year, compared with a need of 180,000. This is referred to as a “two month shortfall” i.e. we are short one sixth of what we need.

In contrast, the United States has a “nine month oversupply”. This caused the sub-prime crisis.

So my feeling is that it’s totally different here in Australia.

In November, the Housing Industry Association forecast that the housing backlog will continue to swell for at least two more years in south east Queensland, before easing.

Of interest, what actually happened in the US was that builders kept building too many homes, so they had to move them. Their solution was to leave behind a notional deposit – look up “down payment assistance programs” on Google - so that borrowers who could not normally afford to borrow, appeared to have a cash deposit.

So the banks lent them the balance - but these “economically challenged” borrowers couldn’t service even those loans, and as borrowers in the US can walk away from home mortgages without penalty, the crisis simmered along, and finally erupted.


EXPECTED GROWTH OF YOUR PORTFOLIO

The biggest assumption that we make in property is that it will double every 7-10 years. This assumption is based on many, many years of recorded property prices.

In fact if you consider that property will double every 10 years then it means it must grow on average at 7.5% per year. This is considering that it only doubles every ten years. For it to double every 7 years it would need to be a huge 10.5% compounded.

Now in truth property does not grow at 7.5% each year, every year. The property cycle affects the rate of growth in any particular year.

If we factor in the effect of the property cycle over the past 50 years we will find that it has doubled every 7.3 years and that there are three full property cycles each 21 years.

Now within those packets of 7.3 years it will normally decrease or stagnate one year, grown at between 2-5% for 3-8 years and best of all grow between 10-25% for between 2-3 years. Obviously we all wish every year was a 25% growth year but there's no way that the market could sustain itself compounding at those rates.

It's being armed with this basic knowledge we can safely and confidently build a portfolio knowing it will double at some time in the not-too-distant future.

I enjoy using this statistic like this – I might say when I meet with private clients for the first time “if your home is worth $500,000 today, then when you bought it 14 years ago, you must have paid something like $125,000. Am I right?”. They generally express amazement and say “How did you know?”


STATISTICS CAN BE CONFUSING


If you have ever seen – sometimes in the same newspaper on the same day – different values for the current medium price of housing in your city – you have a right to be confused.

The reason is that there are six different sources, and each uses a different survey technique, or different geographic boundaries, or different time periods, or different dwelling types.

The six providers are the government’s Valuer General, the state real estate institutes, and private providers RP Data, Residex, Australian Property Monitors and Adviser Edge.

There are difficulties with each source. For example the Valuer General uses rates notices, which of course don’t reflect market values. The real estate institutes use data which is supplied by their members (not all real estate agents are members, and perhaps only two thirds of those members provide data) and typically these figures do not reflect the sales of new homes as they are generally sold by developers and builders. RP Data develops its results off a database based on the number of bedrooms, land size, location and dwelling type.

However you know yourself that values keep doubling every seven to ten years. If you don’t believe that, ask yourself if you have ever expressed concern about how your own children will ever be able to afford to buy their own family home. We have all done that, as did our own parents.

We all know property prices continue to move up.

If you don’t have enough for 20-25 years of dignified retirement, let me help you explore your options

Phone me Bernard Kelly anytime mobile 0414 778 518 cell 61-414 778 518