– a) How much simpler can it get? ALWAYS PUT ASIDE 10%. Never say I won’t do it this week, I’ll just double it next week. That’s a formula for disaster. Here at Premium Finance we will show you how to take that 10% and make it work by utilising Law number 2 below. You earned the money, why shouldn’t you take your money out first before paying everybody else in life.

2) “Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.”

– a) YOUR MONEY SHOULD ALWAYS EARN INTEREST. Always be aware of what all your money is doing at all times. Taking your 10% from Law number 1 and making it grow with compound interest is the most basic of wealth creating principles. The great Albert Einstein once made the comment that “Compounding interest is the eighth wonder of the world”. I’m pretty sure that we should place at least some credibility in the thought of that amazing gentleman.

3) “Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.”

– a) DO NOT TAKE INVESTMENT FROM PEOPLE THAT HAVE NO EXPERIENCE OR KNOWLEDGE IN THE MATTER. At Premium Finance we also obey this rule by using the highest experienced people in providing us with the right information to help us in making the right decisions. Professionals need to be used, whether it’s the doctor the dentist or the candle stick maker. You are good at whatever you do, so take the services of people good at what they do.

4) “Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.”

– a) NEVER PLACE YOUR MONEY INTO THINGS YOU KNOW ABSOLUTELY NOTHING ABOUT. Listen to those from Law number 3 and you will gain the knowledge to move forward in the right direction. If you don’t understand it, then don’t do it.

5) “Gold flees from the man who would force it to impossible earnings or who follow the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.”

– a) SAFE INVESTMENT ALWAYS PAYS OFF BETTER THAN RISK. Don’t chase the quick buck, it doesn’t exist. If you are looking for overnight returns then head off to the Casino and chuck it on the roulette wheel. TIME is the ultimate resource that is irreplaceable and time is your best friend if you are doing something, but your worst enemy if you are doing nothing. Let’s face it, if you aren’t moving forward then you are moving backward, there is no status quo where your financial future is involved. At Premium Finance we show people how to create, maintain, and expand on a long term 10 – 15 year strategy that will reap rewards.

When Mick realised that his super was only going to give him and his wife an income in retirement of about $30,000 per annum he saw his dreams dissolve before his eyes, you see Mick’s Mum & Dad live on the pension which is about $30,000 per year and Mick knows that they have no money left over after paying their living expenses. All of a sudden Mick saw himself in the same boat as Mum & Dad. Daytime television and the pensioner’s Thursday lunch special down at the local RSL isn’t what Mick has in mind for his golden years.

Mick’s demeanour turned from being dejected to being excited when I showed him how he can still achieve his goals if he is willing to take some professional advice and begin an investment portfolio.

Mick and his wife earn about $120,000 between them and pay about $25,000 in tax. I said to Mick, “do you know that money is yours and you can get it back?” well now I had his attention. I said “Mick, you need an investment property, the tenant will pay about half the cost and the taxman will give you some of your tax money back to pay about 25% of the cost that means that for about $80 to $100 per week you can have an investment property.” Mick said “where do I sign?”

Well that was 12 years ago, Mick and Sally are now 58 and decided recently that the 5 investment houses they have are positively geared and after meeting the cost of their investment loans they have enough income to stop work and enjoy life.

It was nice to get an email from them while they were travelling down the Rhine River in Germany saying “thanks mate”.

If you would like your retirement potential analysed give me a call at Premium Finance Services. This is what we do; we help people have a better retirement.

Email me on greg.lister@premiumfinance.com.au or call me in Brisbane on 07 3024 1700 or in Melbourne on 03 8102 5901 and let me help you to a better retirement.

Wealth is built up over time. In fact it requires many years of diligent investing to create wealth. The most difficult thing though is to do, to take the first step to invest. It takes courage to step out of your comfort zone and do something about your future.

Rich people tend to be more courageous than poor people. Poor people tend to be more analytical than rich people! Wow, that’s a big statement isn’t it?
I’m not talking about all the rich and all the poor. No I’m talking about those in society who you would describe as Joe Average.

The average person out there who looks at an opportunity to invest for their future but gets analysis paralysis and makes a decision to do nothing. Doing nothing begets nothing. Not a very good retirement plan is it? This is the behaviour of 95% of Aussies. 19 out of 20 people in Australia will require state welfare in retirement only 1 in 20 people will be self funded or better in retirement.

Do you see what I mean? Fear causes people to analyse something they know little about only to conclude that it’s safer to do nothing and thus they get nothing, but they’re safe aren’t they? No they just feel safe because they remained in their comfort zone.

Whether it’s property or shares just remember “it takes time” nobody gets rich overnight. Rich is more than just money, it’s an understanding that comes with years of diligently investing.

The Third Law of Gold * says one should get professional help. A true professional will hold your hand and help you to begin then will become your mentor who you call when life throws up a roadblock. That’s what Premium Finance Services provide; expert advice and a gentle guiding hand to guide you on your path to wealth.

If you want expert guidance and a guiding hand contact me on email greg.lister@premiumfinance.com.au or call me in Brisbane on 07 3024 1700 or Melbourne on 03 8102 5901.

*The Richest Man in Babylon by George S Clason. Published by Penguin Group.

This is a concept we are all familiar with but when it comes to supplying our needs for retirement we pay scant regard to the demand that our retirement years will have on the available supply of our own funds. If we fail to make adequate supply for ourselves supply may come but, it will be in the form of state welfare if it exists or charity. Who wants to live like that?

Failure to supply for our own future demand is negligent but the largest proportion of people in Australia do not to take this responsibility seriously. The results are; nineteen of twenty people in retirement rely on some form of welfare, only one in twenty are rich or entirely self funded retirees.

Premium Finance Services specialises in supply of expertise and experience to help people understand what their need is and help them develop a strategy of saving tax, eliminating debt and investing in their future.

Do something about your future now by contacting me at Premium Finance Services either email greg.lister@premiumfinance.com.au or phone me in Brisbane on 07 3024 1700 or Melbourne on 03 8102 5901.

If your demand exceeds your supply in retirement – well you get the picture, not a very good retirement is it. Take action and be obedient to the Law of Supply and Demand for your own sake.

The Reserve Bank of Australia (RBA) indicated twice last week that rates were more likely to go up than down as the chances of a recession diminish.

The number of home loan approvals in Australia has surged since the central bank embarked on a dramatic series of rate cuts last year.

Official housing finance data for June, due out tomorrow, is expected to keep growing, with economists forecasting a 1.8 per cent rise.

This would follow a healthy 2.2 per cent rise in May.

Home mortgage numbers have now risen for eight consecutive months, in a sign that large rate cuts and the federal government stimulus grant to first-home buyers are working to boost the economy.

The housing sector growth spurt started in October, a month after the RBA began cutting rates by 425 basis points, taking the cash rate to a 49-year low of three per cent.

The RBA revised up its growth forecast this week, projecting a half per cent expansion in 2009 instead of a contraction.

Treasurer Wayne Swan, however, has attempted to douse excitement about a possible recovery.

“This is all heartening news but we’re not getting carried away,” Mr Swan said in an economic note on Sunday.

“The pace of recovery is still expected to be modest.”

During times of prosperity the Australian economy grows at an average pace of three per cent a year.

The RBA expects Australia to record below-trend growth during this financial year, and in 2010-11.

Treasury then expects growth to surge to a very robust 4.5 per cent from 2011-12.

The International Monetary Fund is also positive about the Australian economy, projecting a growth pace of 1.5 per cent in 2010, albeit after a 0.5 per cent contraction in 2009.

A rebound in the economy after several years of below-average growth also means a return to higher interest rates.

Financial markets are expecting the RBA to start raising interest rates before Christmas.

By mid-2010, the cash rate could reach 4.25 per cent, if the markets are any guide.

Under this scenario, repayments on a standard variable mortgage for an average $281,000 first home loan would jump by $277 a month to $1,916.

ANZ economist RikiPolygenis said any increase in interest rates would be gradual, as the RBA watches how consumers react to the phasing out of stimulus programs, such as the boost to the first home owners grant.

“Retail sales, housing finance and consumer confidence will all be critical,” MsPolygenis said.

The first home owners grant was tripled to $21,000 for new dwellings in October last year, and doubled to $14,000 for existing dwellings, as part of the Rudd government’s first stimulus package.

From September 30, the grant for new homes will fall back to $14,000 for a further three months, before returning to $7,000.

The average value of a new mortgage in Australia has risen to its highest level as property investors return to the market, mortgage broker AFG said on Sunday.

The average new mortgage lodged in Australia rose to $354,137 in July, eclipsing the previous record of $353,223 in October 2008, according to data from AFG released on Sunday.

Official wages data, an important measure of inflation, is due out on Wednesday, with economists tipping a 0.8 per cent growth pace for the June quarter and an annual increase of 3.8 per cent.

I read an article the other day about aged care and the associated costs. And it does not look good for most of us who are approaching our twilight years.

Did you know that life expectancy in Australia is extending by three months each year? That’s not bad going for a developed society that, not too long ago, many had assumed had almost reached the longevity limit. It is also terrific news to those of us hoping for a long and healthy life.

But it does create its own issues. Currently, there are about 2.1 million people aged over 70. By 2020, there will be 3 million. And that is before the tidal wave of baby boomers begins to make its presence felt. There is a real question as to whether there will be enough aged care beds to look after all these people. Just to keep up with demand, an extra 8,500 aged care beds will need to be constructed across Australia every year for the next decade – and then the real pressure begins.

Investors need to develop an understanding of this critical issue both for their own sakes and for that of their loved ones. In quick summary form, here are the key issues:

• To get into an aged-care facility, individuals are assessed to determine whether they require low (hostel) or high (nursing home) care.
• Fees and charges are generally based on formulas set by the government. In low care, there is a government-stipulated basic daily care fee, a daily income-tested fee and an accommodation bond. In high care, there is a government-set basic daily care fee, a daily income-tested fee and an accommodation charge.
• Centrelink conducts the asset and income testing that determines the level of fees to be paid. The assessment is not compulsory, but someone who opts not to complete it will pay the highest level of fees.
• Accommodation bonds are not set by the government and are negotiable. They can be between $100,000 and $600,000, depending on the type and location of the facility and the level of services provided. In Victoria, the average bond is about $270,000, but in NSW it is higher.
• Anyone entering a standard nursing home is not required to pay an accommodation bond unless they opt for ‘extra-services’ like a choice of meals and massages.
• The maximum total of the fees in nursing homes is just under $50,000 per year, depending on an individual’s financial circumstances and needs.

All of this can obviously create a significant financial strain that stretches beyond the individual. Frequently families want to put their loved ones in homes offering ‘extra services’. Many are already reaching into their own pockets to do so.

In these circumstances, it pays to get any decision about aged care right. Here are some tips that might help:

1. Plan, plan, plan: start thinking early about a suitable residence, because the process of finding the right place and getting assessed always takes time. Visit potential residences and do thorough inspections. There are websites that can be of assistance, like:www.agedcareonline.com.au
   www.agedcareconnect.com.au
2. Seek specialist financial advice to assess the options: There are a host of issues to be considered and with proper planning it is often possible to reduce the costs of the care significantly.
3. If the payment of an accommodation bond requires the sale of a home, remember to leave time for it.
4. Don’t forget your bond – it is really an interest free loan and can be reclaimed by a resident or representative upon a move from one home to another and upon death.

Aged care is one of those topics that most of us prefer not to talk about. But from a lifestyle and financial perspective it can be one of the most important decisions we ever make – whether we are making it for ourselves or for loved ones. For that reason, it is vital that we take the proper time to consider the issues and get the appropriate specialist advice. In these fortunate times of longevity, the issue will not go away any time soon.

We at Premium Finance Services Pty Ltd are the experts in helping our clients plan for their retirement. To find out more contact Geoff.Glass@premiumfinance.com.au

When the stakes are low and there is no pressure, things are easy but if there is a large sum of money riding on the outcome all of a sudden the pressure mounts, fear of loss appears real and the easy becomes difficult.

Yet we will willingly jump into the car and roar off without a second thought that we have just engaged in the deadliest thing that most of us will do today, drive a car! We have no fear of driving our car, do we?

Every Australian knows that they must invest if they are to enjoy a comfortable retirement but because they lack the knowledge fear takes over and stifles their progress.

Premium Finance Solutions has been instrumental in guiding thousands of mums & dads from all over Australia into safe investment strategies which are tailored to their individual needs. Our highly trained investment specialists show clients how to structure their finances in order to pay their debt off years ahead of time, they show clients how to turn tax dollars into investment dollars and they teach clients how to do it all safely.

Once you shine light on the dark the dark is gone and as the light comes in so the fear leaves us. Here at Premium Finance Solutions we have helped thousands of Aussie mums and dads deal with their fear of investing by shining light on a subject they knew little about.

Once people overcome their fear and invest they experience a feeling of satisfaction knowing they have finally done something to secure their financial future.

Once fear is replaced with trust only then can a person move forward.

Do you have a fear of investing? Would you like to do something about it? Email me at greg.lister@premiumfinance.com.au or call me in my Brisbane office on 07 3024 1700 or in my Melbourne office on 03 8102 5901.

Go on, don’t let fear get in the way.

Tony and Denise spent the day with us going through different strategies, strategies they have heard about but did not think was for them. They could not believe how a little bit of knowledge could bring so many answers that for years they have been trying figure out. Figure out why friends and family were moving ahead even though they thought they were in a better position than them.

Tony and Denise have now put in place a new structure to their finances and state that they can now see the light at the end of the tunnel and really look forward in working with us in the future.

Arthur is in his early 50’ working as a professional in the world of finance earning over $100,000 per year. Arthur’s wife Maggie is a nurse and earns about $60,000 per year. So together they earn about $160,000 per year.

Of the two Arthur & Maggie look like they’re doing better but in reality Allan and Shirley are in a much stronger financial position.

Financial discipline is not one of Arthur’s strong suites and Maggie likes to keep her money separate and shop for clothes. Arthur insists on having a new car every three years or so and enjoys the night life on weekends. Arthur and Maggie enjoy travelling and have just spent a month in Europe so the credit card is maxed out with about $20,000 debt. Unfortunately Arthur has little superannuation and Maggie salary sacrifices into her car lease and their mortgage which never seems to reduce much.

On the other hand Allan and Shirley have been masters of their money from a young age. Since they began work about 25 years ago they have been putting money aside for a rainy day. About 20 years ago Shirley received an inheritance. They so badly wanted a new car but met with a investment professional who was recommended by a friend. They decided to act on his advice and bought a brand new investment property in which was even better than their home.

Over the past 20 years Allan and Shirley have bought 10 houses. They are in a cash flow positive position and are thinking about taking a year off and travelling around Australia in their luxury motor home. Shirley is so proud of their motor home, she said it’s the first new car she’s ever had.

Arthur and Maggie attended a meeting with me recently at Premium Finance Solutions. I was able to show them how to invest in their future and build wealth for their retirement. They were particularly interested when I showed them how to turn their tax dollars into investment dollars. Arthur and Maggie have had to change their lavish lifestyle a bit but are happy to do so now that they know how to use their money more wisely. During their visit to Premium Finance Services they discovered how to pay their home off years earlier and how they can minimise their massive tax bill through safe leveraged investment. They said they wished they had met Premium Finance Services 10 years ago. Better late than never!

Allan and Shirley can retire because of the capital gains they have enjoyed and continually re-investing. They have never paid much tax and think anyone who does is mad. They are now travel mad and looking forward to enjoying the fruits of their labours.

For more information contact Premium Finance Services on 07 3024 1700 or email me at greg.lister@premiumfinance.com.au and we will show you how to have a self funded retirement.