CLIENT NEWSLETTER
47 Napier Street, Eaglehawk Vic 3556
Ph 03 5446 3463
Fax 03 5446 2199
Email [email protected] www.fasg.com.au
June 2016 Edition 20
Welcome to our special 20th edition
of the Flack Advisory Newsletter as
we celebrate 5 years of association
with Ipac as our equity partner. Boy
time flies when one is having fun. I
quite enjoy working with both
yourselves and my fantastic staff in
achieving your dreams; solving your
problems and ensuring you have peace of mind and can
sleep at night.
A recent rule change I highlight in this newsletter can be
found on the next page. Going forward we must have
you sign an application for a withdrawal prior to
processing. Whilst it may delay the process one or two
days it has been introduced by Charter FP to ensure
your funds are not subjected to any scammers.
Paul Clitheroe gives great advice concerning property
seminars in his article beside my column whilst overleaf
Paul provides information on becoming debt free – both
articles make a lot of sense (and can save you dollars as
well as cents!).
Every July 1st, those with Allocated Pensions have their
minimum payments re-adjusted based upon their
account balance at June 30th. With lower account
balances this June due to market performances, or if
you’ve made a withdrawal during the year, minimum
payments will in turn be lower going forward. A solution
is to speak to our Advisers about adjusting your new
monthly payments to ensure you cope with your budget.
We are here to assist you.
With the upcoming City of Greater Bendigo Council
elections being conducted in October 2016 many of you
know I will be running again in Eppalock Ward as I did
unsuccessfully in 2012 but I’ve learned much in the past
4 years. Council needs commonsense plus somebody
with financial qualifications and an emphasis on the
basics such as roads, drains and footpaths with minimal
or no rate rises.
Also one of my staff Ms Andrea Metcalf will be running in
Whipstick Ward. Andrea has been assisting many lodge
organic waste exemptions as Council has not devoted
much time to encouraging those who qualify to lodge
exemptions. If you require assistance before the 31st
August deadline you may contact Andrea or myself for
guidance.
I trust that if you are in our Ward you would vote for us
and whoever we preference on our how to vote cards as
a sure way of getting our COGB Council back on track.
Property investment seminars
— steer clear
From Paul Clitheroe’s blog 9 July 2016 more information at www.ipac.com.au
As humans we seem to instinctively want to
find an easy way to make money quickly.
Perhaps this explains why property spruikers
continue to drum up business. But consumer
regulators around Australia are warning about
so-called property investment promoters who
claim to be ‘wealth creators’ but who are really
just in it for themselves.
the investment
scheme
is
government
approved.
More worrying, you could find yourself being
encouraged to use your home as security to
borrow significant sums of money to invest.
Over 30 years in the money business, I’ve
come across more than a few dodgy property
investment schemes, and they are often
marketed through free property seminars with
invitations sent via mail, email or promoted on
social media.
I won’t argue that a sensibly priced, well
located property can be an excellent long term
investment. But our consumer watchdog – the
ACCC – is advising against attending these
property investment seminars. Many ordinary
Australians have suffered financial loss after
relying on the unsubstantiated claims of a
The details may differ however a common property spruiker.
thread is often the grandiose claims of the
people running the seminar.
And when you think about, if an investment
scheme works so well, why don’t the spruikers
As the government’s MoneySmart website use it to get rich themselves? The answer is
notes, one property investment seminar painfully obvious. The schemes don’t work.
featured “Four of Australia’s greatest financial
superstars”. Yet when our investment If you decide to attend a property investment
watchdog ASIC checked them out, none of seminar, look for the telltale warning signs –
the presenters had an Australian Financial like being rushed into a decision, or
Services (AFS) licence. In fact, three of the enticements like discounts offered to
four speakers were found to live and work in attendees who sign up on the day.
the USA. Who knows what their credentials
were?
If the spruiker also supplies mortgage broking,
conveyancing and/or tax advice the alarm
If you do attend one of these seminars, be bells should definitely start ringing. And if you
prepared for some high pressure sales tactics are encouraged to use your own home to fund
designed to convince you to invest in a the investment, don’t walk, run.
property – often as selected by the spruiker.
For more information on property spruikers,
You may be bombarded by claims of high visit the MoneySmart website.
capital growth backed up by inferences that
- Regards George
BREXIT IN BRIEF
The outcome of the Brexit referendum was a shock to
financial markets, there were significant moves in assets
prices, particularly shares and exchange rates as the
results were released.
Over the longer term, it is our view that quality assets
purchased at sensible prices, in a diversified portfolio
generally remain a sound strategy to produce a solid
income stream and longer term capital growth.
Produced in part, from a Charter Financial Planning release on
27 June 2016.
FOR A LAUGH...From: http://www.jokes.cc.com
A little girl climbed onto her Grandfather’s lap and asked “Did God
make me Grandpa?” “Yes,” replied the old man.
“Did he make you too?” asked the child. “Yes, he did.” said Grandpa.
“Well,” said the little girl looking at his thinning hair and wrinkly face, “He sure is doing a better job nowadays, isn’t He?.”
Aim to be debt free in retirement
I’m a big fan of entering retirement with
as little debt as possible but surprising
numbers of Australians are still carrying
large sums of debt even when they’re
close to, or in, retirement.
An AMP/NATSEM report from late 2015
found 78.3% of 50 to 65 year olds still
have household debt, while 44.1% of
over-65s face a debt burden. And we’re
not talking nickel and dime sums either.
The average debt among 50-65s is
$68,500 but at the top end of the scale,
one in ten of these households owe
$534,300.
To put these figures in perspective, super
industry body ASFA says men currently
retire with an average of $292,500 in
super, a figure that falls to $138,150 for
women.
With this level of super savings, ASFA
notes the majority of recent retirees will
need to substantially rely on the age
pension. Using your super to pay out
personal debt – especially big ticket debt
like a home loan – means losing a solid
chunk of your nest egg in one hit, further
increasing the likelihood of turning to the
pension for income support.
One alternative is to remain in the
workforce for longer. Sure, this is a
chance to grow your super, and pay
down debt. But there are no guarantees
about when you will retire. Workers
often
find
themselves
entering
retirement earlier than expected due to
health concerns or the need to care for
an ageing family member.
This is why it’s so important to knuckle
down and pay off a mortgage or credit
cards particularly as you begin the
approach to retirement.
I realise we’re also continually being
reminded of the need to add to our
super, and if you’re unsure which way to
go – pay off your home loan or contribute
to super – take a look at the ‘Super
versus Mortgage’ calculator on the
government’s Money Smart website. It
can provide an idea of which option will
leave you better off depending on your
life stage.
As a general rule though, making a
concerted effort to enter retirement debt
Famous quotes
If you think about those potential
repayments that could be accumulating
in your own pocket instead of being
funnelled off to the bank, you get a
better mental picture of the benefits of
enjoying a debt-free retirement.
From—Paul Clitheroe, www.ipac.com.au
2 July 2016
WITHDRAWAL PROCESSING
“I attribute my success to this: I never
Eleanor Roosevelt inspires confidence
gave or took any excuse.” – Florence
- “No one can make you feel inferior
Nightingale
without your consent.”
Thomas A. Edison said “I have not
“The only thing worse about not being
failed. I've just found 10,000 ways that talked about, is not being talked
won't work.”
about.” - Oscar Wilde
“Imperfection is beauty, madness is
“Be the change that you wish to see in
genius and it's better to be absolutely
the world.” - Mahatma Ghandi
ridiculous than absolutely boring.” -
With thanks from www.goodreads.com
Marilyn Monroe
-free provides plenty of pluses. It means
living a relaxing, uncomplicated life free
from stress about debt.
In June 2016 our Licensee introduced new procedures for cash
withdrawals. In future withdrawal requests will not be accepted by
telephone or text message. All requests must be made in writing and
provided in person, or by mail, facsimile, or email.
We are happy for you to call us to prepare paperwork for a
withdrawal, however we are unable to lodge a transaction until the
written request is received.
We apologise for any inconvenience this may cause, however the
changes have been put in place to better protect your investments
against scams and other fraudulent activities.
If you have any questions regarding this new policy please do not
hesitate to contact us on 5446 3463,
ANY UPDATES ?
Please check your Portfolio Report carefully and advise of any changes so our records can be
updated . Phone—5446 3463
Disclaimer:
This editorial provides general information only. Before making any investment decisions, we recommend you consult a financial planner to take into account your
particular investment objectives, financial situation and individual needs. Flack Advisory and its Authorised Representatives do not accept any liability for any errors or omissions of
information supplied in this editorial.