Lifestyle Newsletter 15 May 2009

PROFITABLE HOBBY – BECOME A WEBHOST

My friend CH retired nine years ago, after a career as a solicitor.

After two years he had become bored, but had started to go to computer swap meets, held on Sundays in a local hall, really only to fill in the day. He had really no knowledge of computers before that (but he did have a logical mind).

It gradually dawned on him that every website had to be “hosted” and realised it was a fairly easy to establish one himself – for his own hobby websites and for a few friends.

Not needing an income, he priced his services very low, and selected a name that would reflect this pricing, and found he was attracting clients who needed to host multiple sites.

Now – after only seven years – he has 7,000 clients but because everything is automated, it’s still a one person “hobby”.

But you do the maths. If each client pays him say $100 pa, that’s a lot of revenue for a one person hobby with little overheads.

His URL is www.budgethost.co.nz

WHY PENSION AGE IS BEING LIFTED TO 67

The pension age in Australia is being progressively lifted to 67.

While no detailed rationale is widely available, an annual report published by the US government in May shows what could happen there.

Because of the increasing cost of medical procedures and an aging population, it has warned that the American health insurance plan for the elderly (known as Medicare) will be insolvent by 2017 - two years earlier than predicted in 2008.

A separate fund for Social Security, their government’s pension plan, will be exhausted by 2037 - four years earlier than reported last year.

The demographics in Australia are broadly similar. Which is why we all need to tuck something extra aside come close to 20-25 years of dignified retirement.

Let me know if I can help you explore your options. My email is

admin@retirelaughing.com

RETIREMENT TAKES A LOT OF MONEY

AARP has just released a retirement planning video “Mission Retirement” to show Americans the importance of saving for the future.

Just about everyone’s mission is to retire comfortably some day. It isn’t impossible, but it will take work.

According to AARP, there are big holes in the security net of government welfare, therefore, it’s everyone’s responsibility to start early. In fact, the video mentions that to have an adequate nest egg you need to save 15% of your income each year for 40 years!

Go to www.aarp.org/finance

RETIREMENT OFTEN HAPPENS UNEXPECTEDLY

Retrenchment, a health problem, or the illness of a relative can derail

retirement plans in an instant.

This new survey of 1,200 adults between ages 40 and 79 found that the number of seniors who need or want to work during the traditional retirement years is rapidly growing, AARP Financial Inc. and Boston Research Group found.

About 433,000 unemployed Americans age 65 and older were actively seeking employment in February, more than twice as many as in November 2007, just before the recession began.

“This is a daunting economy for older people. A lot of older people are coming to see us that are scared or bewildered,” says Cynthia Metzler, president and CEO of Experience Works, a nonprofit organization that helps older people retrain for new jobs. “We have people who are in their 80s who are taking on new jobs.”

If you want me to help you explore your options – now – to enjoy your eventual retirement, contact me Bernard Kelly anytime. My email is admin@retirelaughing.com

RETIREMENT IQ TEST

The formula for a financially successful retirement used to be straightforward: Work for decades for one employer and then live happily ever after on the pension and whatever personal savings you were able to amass.

So the amount of savings was important but not critical.

Today, with superannuation vanishing and an economic crisis withering savings, it’s increasingly up to individuals to take charge of their finances to fund retirements that can stretch for up to 30 years because of longer lifespans.

Is your retirement IQ up to the challenge?

Take the test and find out. (Answers at bottom):

1. What percentage of your savings can you withdraw annually in retirement without risk of running out of money?
(a) 3 percent (b) 4 percent (c) 7 percent (d) 10 percent

2. Approximately what percentage of pre-retirement income is generally needed to maintain a person’s current lifestyle in retirement?
(a) 45 to 60 percent (b) 60 to 75 percent (c) 75 to 99 percent (d) 100 percent or more

3. Working full-time for three years past one’s anticipated retirement date and continuing to save 15 percent of salary could raise annual retirement income by how much?
(a) 7 percent (b) 12 percent (c) 17 percent (d) 22 percent

4. At what age will most of today’s workers be eligible for full pension retirement benefits?
(a) 62 or 63 (b) 64 or 65 (c) 66 or 67 (d) 70

5. What is the amount in a superannuation fund for the typical person aged 60 retiring today
(a) $87,000 (b) $147,000 (c) $247,000

6. The number of workers age 65 and over is expected to grow by how much over the next decade?
(a) More than 20 percent (b) More than 40 percent (c) More than 60 percent (d) More than 80 percent

7. What percent of homeowners age 50 to 65 plan to use home equity to finance ordinary living expenses in retirement?
(a) 6 percent (b) 10 percent (c) 20 percent (d) 50 percent

8. A job retrenchment in one’s 50s or 60s typically reduces total household wealth by what percent?
(a) 11 percent for married couples and 23 percent for single people (b) 16 percent for married couples and 28 percent for single people (c) 21 percent for married couples and 33 percent for single people (d) 31 percent for married couples and 43 percent for single people
___
ANSWERS:
1. (b)
2. probably (c) as it’s best to plan for the high side since health and medical costs are impossible to predict.
3. (d)
4. (b) if you retire today but it will soon be (c)
5. (a)
6. (d)
7. (a)
8. (c)

Acknowledgements: Star-Telegram.com 6 April 2009

LIFESTYLE NEWSLETTER 15 March 2009

TRY YOUR RETIREMENT INCOME NOW

If you are saying that you will be able to live with less money in your retirement, try to live off that amount for one month.

If you don’t succeed, chat with me – Bernard Kelly mobile 0414 778 518 – and I’ll help you explore your options.

LESS THAN 30% PLAN TO RETIRE BEFORE 70

A survey by the Australian Bureau of Statistics taken in mid-2008, released late February, reports than less than 30 per cent of middle-aged and older Australians now intend to retire before they turn 70.

The survey was taken in mid 2008, and released in late February.

The causes appear to be threefold.

There is a growing awareness that many of us will remain very active well past age 70, that boredom is all too common for many early retirees, and of course most of us don’t have enough funds for 20-25 years of a dignified retirement.

So we’ll be happy to keep working.

AVOID ANY RELIANCE ON GOVERNMENT WELFARE

The consultation paper on retirement incomes – as part of the Henry review into the tax system – notes that there are now five people of working age for each person over 65.

However by 2047, this ratio will fall to only 2.4 persons.

The consequence of having relatively more of us retired and less of us in the workforce will mean that the cost of the age pension will increase from 2.5% of the gross domestic product to 4.4%.

In addition there will be larger demands by the health sector to pay for the ever increasing cost of caring for an increasingly older population and ever increasingly costly medical equipment and drugs.

The economy will simply not be able to sustain the pension as we currently know it.

A likely scenario is that we will only have access to the pension, and the Pharmaceutical Benefits scheme etc., once we have exhausted our super.

So plan now to avoid any reliance on government welfare, as it may not be there when you’ll need it.

If you would like me to help you explore your options for 20-25 years of dignified retirement, contact me – Bernard Kelly – any time on admin@retirelaughing.com

HOW MUCH INCOME WILL YOU REALLY NEED?

Most of us underestimate lifestyle costs, medical expenses and inflation.

What is enough? What is not enough?

If you’ve given even the slightest thought to retirement, you’ve probably heard or read that you need about 70% of your final salary to live comfortably in retirement.

This estimate is frequently repeated … but that doesn’t mean it is true, but at least it’s a reference point.

You won’t learn how much retirement income you’ll need by reading this article.

For that you’ll need to meet with someone who can talk common sense about your lifestyle needs and short-term and long-term expenses.

And I don’t mean a financial planner. I mean someone who doesn’t have a vested interest in selling you financial products.

I mean someone who can talk common sense.

That said, there are some factors which affect retirement income needs – and too often, they go unconsidered.

HEALTH

Most of us will face a major health problem at some point in our retirement – perhaps even multiple or chronic health problems.

We don’t want to think about it, but it’s a reality.

And if you don’t have enough money for day-to-day living, you’ll probably end up with a mental health problem.

My solution is to find some form of modest employment – even perhaps a “profitable hobby”.

HERIDITY

If you come from a family where people frequently live into their 80s and 90s, you may well live longer. Imagine retiring at 65 and living to 95.

You would need 30 years of inflation-protected retirement income.Investments.

These must be diversified, and inflation protected.

You’ll need to find a path between carrying too much risk, and being conservative.

SPENDING HABITS

If you’re like most of us, you probably spend 90% or 95% of your income. Will your spending habits change drastically once you retire? Probably not.

GOVERNMENT WELFARE (or lack thereof).

Over the years, the government has progressively restricted access to welfare. This can only be expected to continue.

So will you have enough?

Let me know if you’d like me to help you explore your options. Contact me – Bernard Kelly – anytime via admin@retirelaughing.com

With acknowledgments to Bill Losey of Retirement Intelligence

Lifestyle Issue 15 February 2009

WHAT YOU’LL NEED IN RETIREMENT

The pension is now $24,481 for a couple. And we all know what a wonderful lifestyle the pension can provide!

The Australian Association of Superannuation Funds and Westpac have just released their research showing that a couple – as at September 2008 – would need $50,561 (after tax) for a comfortable lifestyle in retirement.

On a 5% yield, you’ll need $1,000,000 in investment assets (excluding your family home) to generate an income of $50,000. If you think that you’ll need $65,000 before tax, you’ll need assets of $1,300,000

If you don’t have at least $1,000,000 in inflation protected assets, just hit the reply key to this email and talk to me – Bernard Kelly. At least I’ll be able to help you explore your options.



AUSTRALIAN HOUSING WILL EXCEL: IMF

The International Monetary Fund has confidence that the Australian housing market will “fare much better than other countries” and that the “fundamental drivers” of house prices is “strong immigration flows, and the other is the interest rate.”

From the Sydney Morning Herald 2 February 2009 (“Australian housing a survivor on the world stage”)


THE BENEFITS OF RETIRING LATER

Deferring the drawdown of retirement assets by just four years increases a person’s eventual monthly income – for life – by 33 percent, says Steven Sass, coauthor of Working Longer: The Solution to the Retirement Income Challenge (Brookings Institution Press, 2008).

And an eight year delay can produce a 75 percent monthly bonus, he says.

Many people actually want to work longer than their parents did, and even longer than they expected, for the continued social engagement and connection as well as the continued income.

Even more promising, a slew of surveys show that as many as half of all baby boomers want to “give back” in their encore careers, in schools, community organizations, environmental efforts, and troubled spots at home and abroad.

These major structural changes in working lives have been building for decades; the economic crisis, which has wrecked many retirement plans, is accelerating this shift and increasing its urgency.

Acknowlegments: encore.org

I'm Bernard Kelly

http://www.retirelaughing.com/

MANY SENIORS PLAN TO START A BUSINESS

In France, an association of seniors reported on the results of two surveys of respondents age 50+ years and their attitude to starting a business.

The first is a quantitative survey conducted by the institute IFoP

The second was more qualitative in its approach.

Both studies show that almost one fifth of the population in their 50s plan to engage in entrepreneurship.

Eighteen percent of the 50-64 cohort plan to create a business.

Among these entrepreneurs, 38% have a specific project and are 63% say they want to establish a business within two years.

PROFITABLE HOBBY – DISTILLING SNAPPS

In 1992, Michael and Alla Ward moved from Tasmania for a change of climate and lifestyle.

They found a property on Tamborine Mountain, Queensland.

This property had abundant fruit trees, but found that they had too much fruit for a four person family.

With all this fruit, Alla began using her grandmother’s recipes to brew distinct flavoured snapps as a hobby.

This hobby has now blossomed into the Tamborine Mountain Distillery.

For a continuing flow of detailed case studies, go to our membership site: www.hobbiesforprofit.com


PROFITABLE HOBBY – TEE SHIRTS

This is a profitable hobby that you can operate from your garage, and take the product to weekend markets.

The key to success with this venture is appealing logos on the tee-shirts, and a bold pricing strategy.

I’m told that two appealing logos are – for toddlers “Give Peas A Chance” and for middle aged males “I Have My Faults, But Being Wrong Isn’t One Of Them”.


For a continuing flow of detailed case studies, go to our membership site: www.hobbiesforprofit.com

THE BENEFITS OF RETIRING LATER

Deferring the drawdown of retirement assets by just four years increases a person’s eventual monthly income – for life – by 33 percent, says Steven Sass, coauthor of Working Longer: The Solution to the Retirement Income Challenge (Brookings Institution Press, 2008).

And an eight year delay can produce a 75 percent monthly bonus, he says.

Many people actually want to work longer than their parents did, and even longer than they expected, for the continued social engagement and connection as well as the continued income.

Even more promising, a slew of surveys show that as many as half of all baby boomers want to “give back” in their encore careers, in schools, community organizations, environmental efforts, and troubled spots at home and abroad.

These major structural changes in working lives have been building for decades; the economic crisis, which has wrecked many retirement plans, is accelerating this shift and increasing its urgency.

Acknowlegments: encore.org

I'm Bernard Kelly http://www.retirelaughing.com/

Lifestyle Newsletter 15 January 2009

PROFITABLE HOBBY – SECOND HAND BOOK STALL

Anyone can easily run a second hand book stall at weekend markets.

You source the books you have for sale from charity shops.

You’d buy them for $1 then sell them for $5. A simple fold-away table is all you’ll need initially for your stall.

Your major expense is the $25 fee that you have to pay to each market, each week, for your space.

In four hours, you should be able to sell at least 20 books (revenue $100).

Your expenses for the day would be $20 for stock, and the $25 fee. Profit $55.

Over a year, your profits would be north of $3000.

Refer a Friend – Family, friends and work colleagues can benefit from a continuing flow of detailed case studies after you visit our membership site: www.hobbiesforprofit.com

PROFITABLE HOBBY – RECRUITMENT AGENCY FOR SENIORS

Mary was a qualified nurse, aged 60.

However at her age, there are personal injury risks in that profession so hospitals tend not to hire seniors.

She needed income, and took on some part-time low paid work (from the local council) supporting the elderly in their own homes.

However she needed extra income and it occurred to her that she had ample time to start a hobby business.

Given her own experience, she realised that there must be a population of seniors out there who become “un-employable” at a certain age.

So she resolved to establish a recruitment agency for seniors, working from home with virtually nothing more than a computer.

Fortunately Mary had personality, and went out of her way to promote herself in newspapers that were read by seniors.

She also became passionate that firms could benefit from hiring experience, which helped her promote her hobby business.

Her fees were $25 per annum to be listed on her database, and $300 for a firm to look for suitable employees.

After the first year, she had over 300 seniors registered (revenue $7,500) and 15 employers had paid to look (that was an additional $4,500).

The key ingredients for this hobby to become profitable would be an abundance of personality, and loads of energy.

You would also need to find a large employer who was willing to employ seniors, otherwise you’d have an ethical problem with taking money from registrants without a genuine expectation of being able to match them up. But retail chains could become a major client, as they are often happy to employ seniors in shifts that students don't want.

Refer a Friend – Family, friends and work colleagues can benefit from a continuing flow of detailed case studies after you visit our membership site: http://www.hobbiesforprofit.com/

POLITICIANS ACKNOWEDGE: SUPER IS INADEQUATE

Politicians have finally acknowledged what most of us have known for some time – it will not be possible for superannuation to provide us with an adequate income for 20-25 years of dignified retirement for the vast majority of us.

Which is why I have been urging my private clients to build a portfolio of investment properties.

When the Australian Government announced the review of Australia's tax system in May 2008, the review was to look solely at the current tax system and make recommendations to position Australia to deal with the demographic, social, economic and environmental challenges of the 21st century.

This study – the Henry Review – was to consider (among other topics) the tax benefits afforded to superannuation, but now the terms of reference have been amended to provide for consideration of the adequacy of existing superannuation arrangements.

Of course the Association of Superannuation Funds of Australia have long advocated that the employer contributions should be 15%, and the major wealth management company AMP now believes that a target for “adequacy” is 65% of an individual’s pre-retirement living standards.

COTA Over 50s – reflecting the less affluent socio-economics of its membership base - has long advocated a retirement incomes system based on the actual cost of living in modest circumstances commensurate with contemporary Australian standards. A pension of 35% of male total average weekly earnings seems a good place to start, they say.

However none of these institutions have the solution to outliving our wealth, and inflation-protecting our income in retirement.

Which is why investment properties are so attractive.

If you would like me to help you explore your options, feel free to contact me – Bernard Kelly – anytime on admin@retirelaughing.com


YOU’LL HAVE TO KEEP WORKING


When the aged pension was introduced in 1909, you had to be 65 to qualify – as you do now.

However back then only 5% of the population was aged over 65; today 5% of the population is aged over 85.

Effectively healthier lifestyles and advances in medical science now allow us to live 20 years longer.

But the government can’t afford to pay us all the pension, hence the push to have us fund our own retirement by drawing an allocated pension off our superannuation savings.

However the reality is that, for most of us, super will never be enough.

For an explanation, let’s look at the “Ten Ways to $1,000,000” article in the Financial Review Smart Investor magazine of April 2008.

The No.1 strategy was for a 21 year old (who already had savings of $10,000) to contribute $5,000 every year extra i.e. above the employer’s 9% contribution, until age 65.

The result – “he’ll be a super millionaire by age 70” concludes the article. But there’s no mention of what that $1,000,000 will buy in 50 years time.

It goes without saying that their other nine strategies produced inferior results – so what’s the hope for us who are well advanced in our careers?

Superannuation is not the answer if you’re looking for 20-25 years of dignified retirement, but a portfolio of investment properties is.

This strategy works best if you’re still in the workforce, so that when you retire, you eat your super before touching your investment properties.

So you’ll have to keep working while you put that investment property portfolio in place.

If you would like me to help you explore your options, contact me – Bernard Kelly – anytime at admin@retirelaughing.com

Product Newsletter 1 January 2009

Investment property at frame stage in Ipswich for a private client (right)




WHAT WILL HAPPEN NEXT

Now that the four horsemen of the apocalypse (Fear and Anger and Gloom and Panic) have galloped past to a distant paddock, some of their audience will now realise

(1) that not all financial institutions have gone broke,

(2) that equities will have to increase in value due to the need by superannuation funds to invest their billion dollar weekly inflows, and

(3) that the real estate still offers an excellent investment for retirement planning.

If you would like me to help you explore your options for 20-25 years of dignified retirement, contact me – Bernard Kelly - anytime on admin@retirelaughing.com

IPSWICH NEEDS 116,000 NEW HOMES BY 2031

The number of new homes in the Ipswich local government area will treble over the next 20 years if the Queensland Government's forecasts are right.

Its draft regional plan for southeast Queensland, released on 7 December, predicts that the Ipswich region will need 116,000 new dwellings by 2031.

Ipswich Mayor Paul Pisasale's reaction was to declare: "Bring it on."Ipswich wasn't ready 10 years ago, but we are now."The new regional plan, which will be open to public comment until April next year, proposes that Brisbane's western corridor be the area's next major population growth.

The state's new draft regional plan for southeast Queensland forecasts that 735,500 dwellings need to be built in the region by 2031, a 65 per cent jump on the current number of 1.1 million.

Source: The Courier Mail 8 December 2008


WHY YOU NEED A FUNDING STRATEGIEST


According to ratecity.com.au there are 1092 different mortgage loan products available from lenders in Australia.

Perhaps half of these would be “investment property mortgages” but there’s no way that anyone apart from an independent funding strategiest would know where to source them, and which one suits a particular investor.

If you would like me to introduce you to a funding strategiest at the peak of their profession, contact me – Bernard Kelly – anytime at
admin@retirelaughing.com


HOUSING PRICES WEATHER FINANCIAL STORM

HIA, Australia’s largest building association says the Australian Bureau of Statistics House Price Index for the September Quarter confirms house prices remained relatively flat during the period.

ABS preliminary estimates show the price index for established houses on a weighted average for Australia’s capital cities decreased 1.8 per cent in the September Quarter. This contrasts to 2007, when established house prices were up by 2.8 per cent.

HIA Chief Executive - Policy, Mr Chris Lamont said, the result is as expected and reflects the slowing in the Australian economy over the same period.

The result is a far cry from the 40 per cent fall in house prices some commentators were predicting just weeks ago.

Relative to other forms of investment, housing is doing very well. It is worth noting that while other classes of investment have seen reductions in asset value of 20 plus per cent the housing market has been shielded by, record levels of underlying demand for housing in excess of supply and population growth from immigration.

“There is no doubt that recent drops in interest rates and a top-up of the First Home Owners Grant will also help in putting a floor under house prices,” said Chris Lamont.

HIA has stated that a fall in asset prices should be expected during periods of economic uncertainty.

But a chronic undersupply of new housing, conservative lending practices and population growth mean that Australian house prices in an aggregate sense are unlikely to see the same turbulence affecting other investments.

“We remain concerned, that restrictions on the availability of capital are placing additional constraints on the supply of new housing particularly for higher-density development. Impediments to new housing supply have already placed considerable pressure on housing affordability and it is essential that capital is available to finance new housing projects,” said Chris Lamont.

RISKS WITH DEFENCE FORCE HOUSING

What attracts many investors to Defence Force Housing is the 10 year rental “guarantee”.

Of course, when you understand the fine print, what this “guarantee” really means is that DFH will only keep paying you the rent while they need your investment property to house defence force personnel.

If a base closes, all that local DFH accommodation will no longer be required. With a glut of houses for sale, investors won’t be able to exit, and of course there won’t be tenants to occupy all of those ex-DFH properties.

Now the Rudd government has commissioned an audit by the Boston Consulting Group to slash $2 billion from the Defence Department’s budget.

Late in the Howard years, there were proposals to close the Woodside Army Barracks in South Australia and the Richmond RAAF Base in New South Wales. These proposals could be readily reactivated.

A far better investment strategy is to avoid such obvious risks and only acquire investments properties in a growth corridor adjacent to a major, diversified economic zone.

If you would like me to help you explore your options, contact me – Bernard Kelly – anytime at
admin@retirelaughing.com

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

LIFESTYLE NEWSLETTER 15 October 2008

25% EXPECT TO RETIRE AFTER 70

The recent study released by Mercer Wealth Management Consultants reports that nearly one in four people aged over 50 surveyed expect to retire after age 70.

However most expect to scale back their hours.

The survey is done annually, and has seen a leap in recognition that superannuation will not be adequate. Only 17% recognised this in 2005; now it’s 31%.

And almost three quarters in the 2008 survey agreed that they have not adequately prepared for retirement.

Don’t let that happen to you!

While you’re still working, you still have time to develop sustainable income for your retirement.

Ask me how! (Just hit the return button on this email)


PENSION ENTITLEMENT AGE WILL RISE

With politicians openly acknowledging that they could not afford to live on the single pension, the debate about all pensions is now on the table.

At the heart of the matter is that the government can no longer to afford to pay us all the pension, as to do so would cripple the Budget.

The original pension age of 65 was linked to life expectancy, which was eleven years a century ago for a male. Now it’s closer to eighteen years and of course women live a few years longer than men.

And there is a demographic bulge underway as baby boomers increase the proportion of the population aged over 65.

To alleviate the drain on their Treasuries, countries including the United States, the UK and Germany have already moved to increase the pension entitlement age. And others, including Greece, Italy and South Korea are making noises about doing the same.

So don’t be at all surprised when they announce that the pension entitlement age in Australia is to be increased.

Which of course is another good reason to develop your own investment portfolio to avoid any reliance on government welfare.

Feel free to contact me – Bernard Kelly - anytime on admin@retirelaughing.com I’ll be able to help you explore your options.


38% RETIRE WITH MORTGAGE ABOVE $100,000

The recent Senate enquiry “A good house is hard to find: Housing affordability in Australia” found that 38% of households now retire with household mortgages in excess of $100,000.

Most find that they have to draw down on their super to eliminate this debt.

If you want to avoid this disaster, contact me – Bernard Kelly – anytime. Just hit the return button on this email.


PROFITABLE HOBBY – AERIAL PHOTOGRAPHY

Here’s a novel idea.

I read about a man whose hobby is Radio Controlled Aircraft.

Now in his fifties, he used his skills as an RC pilot to create a hobby business in aerial photography. He specialises in charity golf tournaments, taking photos and selling them to the golfers.

His equipment costs were in the $2500 range and in one year he was able to recover that cost and put some money towards more advanced equipment.

If you need a website for your hobby business, go to www.valuewebsites.info


PROFITABLE HOBBY – PLUM PUDDINGS

Plum puddings in a calico bag is a traditional Christmas gift, but now they can be given at any time of the year –either as corporate gifts or as wedding keepsakes.

The production is quite simple, and you can build up an inventory in advance, however the packaging may need some thought. But start with the basic traditional calico bags and work up from there.

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

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

To find clients, take a stand at garden shows or bridal exhibitions.

If you need a website for your business, go to www.valuewebsites.info


MOST SUCCESSFUL HOBBY-BASED BUSINESSES

Mon Sep 1, 2008

LONDON (Reuters) - More than two million Britons who are in permanent employment are at the same time trying to turn their favourite hobby into a business, according to a new survey.

Commissioned by the insurance company Direct Line for Business, the poll also found that for 23 percent of Britons it would be a dream come true to start up their own business based on an outside interest.

The survey listed the most successful hobby-based businesses as fashion design, eBay selling, buy-to-let property development and web design.

Most of those surveyed indicated that a profitable hobby would be “fun” while a sizeable proportion suggested that such a part-time business would give them more long term security.

The online poll of 2,234 Britons was carried out between July 4 and 8.


Regards

Bernard Kelly www.retirelaughing.com admin@retirelaughing.com