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

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