Former years have seen rises in personal wealth (or the illusion of it), with rises in share markets and property prices but 2010 saw mostly rises in unemployment and dramatic rises in interest rates. Two of the Big Four banks raised their interest rates higher than the Reserve Bank; time to vote with your feet, Australia!
Considering that the festive holiday season (regardless of your religious beliefs) was originally said to be all about Jesus, we can always claim to be following biblical precedent when we are frugal at Christmas.
Consider that 2000 years ago, according to tradition, God gave the world a small baby who was destined to be the saviour of the world. God did not send Rambo or Chuck Norris to save the Palestinians from Roman slavery, nor did he give a billion buckets of gold. The baby in a manger was a seedling gift of hope.
In honour of this tradition, we suggest that you give a small gift that means big things will come. Spread some frugality this year and also help to spread HOPE for the New Year. 2011 just has to be better than 2010, right?
1. Blooming great gift: Consider a few packets of seeds instead of a bouquet of flowers. They are cheaper to send through the post & will grow in value over the next few months, unlike flowers which will wilt & die within a few days. Those in small apartments or units can be given something small for a window box or movable planter pots. Also consider edible treats such as fruits or vegetables. There are also many species of flowers which are safe to eat, such as chrysanthemums, roses, daisies and more; check with the nursery and deliver something beautiful, tasty and practical!
2. Handmade Gifts: homemade jams and other homemade baked goods from the talented ladies and something creative from the talented blokes. Recycle some old household goods or get carving, whittling, gluing or wiring. Nothing says Christmas love like investing your precious time (not just your money) into a gift. We once received a model aeroplane made from empty beer cans and one created from old wooden clothes pegs. Novel, fun and a good talking point.
3. Newspaper Gift Wrapping: Wrap children's birthday gifts in old comics for a fun twist. A fancy red ribbon would go nicely with black and white newsprint for adults, or even "brown paper packages tied up with string" for a “Mary (Poppins) Christmas”.
4. Christmas Presence: Giving someone your time is a very valuable thing and memories last a long time. You could give a couple the gift of a night off by babysitting their kids, or you could pack a picnic basket for a single friend to have an afternoon together chatting and drinking wine in an unusual location. Most mums would love an hour of housework done while they relax in the bath and dad would love for his car to be cleaned or shed tidied.
Whatever you decide, keep it simple, practical and keep the love central to your theme. Holiday seasons are all about spending time with family, friends and loved ones, not spending money for the profits of big banks, toy companies and retail stores.
Jeremy Britton is an independent wealth adviser. For more tips, tricks & advice go to www.24hourwealthcoach.com. Article also featured in Strike publications, Ipswich City News
Sunday, December 05, 2010
Thursday, November 04, 2010
Interest rates are INTERESTING, part 1: both sides to the coin
Rising interest rates may seem like a burden for Australians, particularly those who are paying off a large mortgage. The thing to remember is that whilst the family picnic may be ruined by wet weather, the farmers love the rain! More rain will eventually mean more food and more picnics later on.
Examples of people who may be affected positively by interest rate rises are investors, particularly self-funded retirees or those who are about to retire (such as the "Baby Boomers"). These people will now be receiving a higher income which means that they can spend more money on new goods and services; possibly in your workplace.
Yes, the average home-owner with a mortgage will have to spend more money on their bank loan, but this will have a flow-on effect in the greater economy. Consider that without an interest rate rise, the economy may overheat, which causes further job losses. A higher interest rate can be a good thing if your homeloan costs more but you do get to keep your job!
At present, interest rates are at record lows in the UK and the USA (below 1%). We will look more at why this is in “Interest Rates Part Two: how to make $50 000 for nothing”. These economies are suffering badly and job losses are at record highs. The economies in Australia and China are weathering the economic storms more strongly, and both countries have just raised their interest rates.
International investors are strongly attracted to Australia with its stronger dollar, more secure economy and higher rates of return on investment. Investors are attracted to China for similar reasons. Investors’ money is rapidly leaving the USA & UK (earning 1% interest) and flooding to Australia and China to be invested at 5% or greater. This international investment means more jobs, even if the mortgages are going up.
Whilst mortgage rates may be high for the foreseeable future, homeowners are advised to cut back on unnecessary expenditure, such as cable TV, cigarettes, alcohol, work lunches or anything that is not essential or anything does not MAKE you money or SAVE you money. Ensure you do essential maintenance on the car but hold off on the new in-dash DVD player.
Consider doing an imaginary cashflow projection based on a 10% mortgage; you will soon see areas where you can cut back. You can pay 10% payments off the mortgage anyway; this will put you in front on the loan, impress the banks and be good insulation if anything unexpected should occur.
Next article: How to make $50 000 for nothing & Higher interest rates just like 1992: where to invest for the best returns beyond 2015.
Examples of people who may be affected positively by interest rate rises are investors, particularly self-funded retirees or those who are about to retire (such as the "Baby Boomers"). These people will now be receiving a higher income which means that they can spend more money on new goods and services; possibly in your workplace.
Yes, the average home-owner with a mortgage will have to spend more money on their bank loan, but this will have a flow-on effect in the greater economy. Consider that without an interest rate rise, the economy may overheat, which causes further job losses. A higher interest rate can be a good thing if your homeloan costs more but you do get to keep your job!
At present, interest rates are at record lows in the UK and the USA (below 1%). We will look more at why this is in “Interest Rates Part Two: how to make $50 000 for nothing”. These economies are suffering badly and job losses are at record highs. The economies in Australia and China are weathering the economic storms more strongly, and both countries have just raised their interest rates.
International investors are strongly attracted to Australia with its stronger dollar, more secure economy and higher rates of return on investment. Investors are attracted to China for similar reasons. Investors’ money is rapidly leaving the USA & UK (earning 1% interest) and flooding to Australia and China to be invested at 5% or greater. This international investment means more jobs, even if the mortgages are going up.
Whilst mortgage rates may be high for the foreseeable future, homeowners are advised to cut back on unnecessary expenditure, such as cable TV, cigarettes, alcohol, work lunches or anything that is not essential or anything does not MAKE you money or SAVE you money. Ensure you do essential maintenance on the car but hold off on the new in-dash DVD player.
Consider doing an imaginary cashflow projection based on a 10% mortgage; you will soon see areas where you can cut back. You can pay 10% payments off the mortgage anyway; this will put you in front on the loan, impress the banks and be good insulation if anything unexpected should occur.
Next article: How to make $50 000 for nothing & Higher interest rates just like 1992: where to invest for the best returns beyond 2015.
Monday, October 25, 2010
Saving versus Investing: what's the difference?
Banks can be good: if you own them
Saving versus Investing: what's the difference?
Many well-meaning people, including parents, teachers and financial advisers, tell you to save.
"Just save," they say, without telling you where or how or why. "Save 10% of your money and you'll be rich one day."
It sounds like good advice. Is it? The question is, did THEY follow it? Did they save? Are they rich? Does it work?
Many would be tempted to say “no”. Trying to save is hard. For a start, you have to go without things you can see in order to get something you cannot see. For example, at the age of sixteen and working your first job, you may have had the choice to go without a new stereo in order to "be rich someday". Forget it: most bought the stereo that they could see.
In addition, saving does not give you leverage. It is sort of like trying to pick up your fat aunt and lift her off the ground. It is slow, sweaty, and not very glamorous. Using leverage, you could put your fat aunt onto a seesaw and use a fulcrum to lift her up. It looks so easy once you know how.
“Saving Cash” can waste your time, and your money!
Saving money into a standard bank account (back when the bank didn't charge you fees to lend them money) took a long time.
Imagine putting a crisp $10 note into the bank back in 1990. Wow, that was a lot of money, back then. Ten dollars in 1990 was the price of two student movie tickets, or four hour's work flipping burgers at McDonalds.
Fast forward to today, and the same crisp ten dollar note would be slightly larger. Ignoring the applicable bank fees, without allowing for taxes, and just counting interest, you would now have about $15. Nowadays that does NOT get you two student movie tickets, and is NOT enough to pay someone for four McHour's work...
What has happened is that inflation has traveled faster than bank interest. Although your money appears to have grown, the purchasing power of the money has shrunk.
[For more lessons on inflation, read Chapter Two of “Who’s taking Your Money?” or check the internet or library. In 1930’s Germany, workers were paid twice a day due to rapid inflation. In Zimbabwe in 2009, workers were paid in petrol due to the “zimbillions”…]
Banks can be good: if you own them
Imagine now, that when you walked into the bank back in 1990, and instead of saving into a bank account, you handed your $10 to the manager and said "Hey buddy, I want to buy some shares in your bank."
Depending upon the bank that you walked into, you may have received one Commonwealth Bank share, two of the National, five of the Westpac and so on (find out what the 1990 share price was for YOUR bank).
Fast forward again to the present and see what your $10 would be now worth. Before you do the quick math and say a figure of between $40 and $100, remember that bank shares do not just GROW in price, they also pay you income each year.
This means that your seedling $10 which you planted did not just grow into a bigger tree, it also produced fruit. Depending upon whether you picked the fruit or let it drop to seed and grow more trees, you may have far more than $100 accumulated.
If your $10 bank share investment was now worth $100+, you will find that you have more than enough money to take half a dozen students out for a movie, and possibly a beverage as well, or enough to pay a McSoldier for two whole days of flipping burgers...
What has happened here? Why is your money so much more? The amount has grown substantially, exponentially. You have become an Investor, not just a Saver. When you save, you lend the bank money. When you invest, you OWN the bank.
In the last twenty years or so, interest rates have come down from 15% on cash to around 5%. And yet the bank still makes massive profits. In 1992, a Westpac bank share would have cost you around $2, and you would have received around 15 cents in income (dividend or "share rent"). In 2010, the same share would be worth $25, and you would receive around $1 in income. This income, of course, increases steadily each year.
Safe as Houses? More Profitable!
To put the above investment into (a strange) perspective, imagine buying a house in 1992 for $20,000 and renting it out for $30 per week. In 2010, the same house would be valued at $180 000, and paying you $200 per week...
For a start, there are not too many houses which you can buy for $180 000 that return $200 per week. Certainly there are very few houses that have had such dramatic growth on their value and their income.
It would be a challenge for you to find a house that could rival the shares for ongoing costs… The difference between the two is, having to spend absolutely nothing on maintenance, insurance, rates etc.
Why do we love Australian shares?
Because, deep down, we are lazy.
We do not want to paint our investment, mow its lawn, collect its rent, pay its rates, advertise and interview tenants, and we certainly do not want to go to the trouble of paying taxes on its income every year... And if we ever decide to sell it, we do not want to have to hammer a sign into the ground, call multiple agents and then put coffee on as hundreds of hopefuls traipse through it and look at it...
We want our investment to sit quietly and grow, paying income that is tax-paid, having no maintenance, no ongoing costs, and not taking up too much room. We want to be able to sell it in a day with one phone-call, or take it with us when we move. Easy!
Lazy Investors of the world, unite!
You can “own the bank” by buying shares in your preferred bank, starting with as little as $500. For more information, go to www.24hourwealthcoach.com & click on “Open an Investment account”, call 1300 762 624 or buzz your favourite broker.
Saving versus Investing: what's the difference?
Many well-meaning people, including parents, teachers and financial advisers, tell you to save.
"Just save," they say, without telling you where or how or why. "Save 10% of your money and you'll be rich one day."
It sounds like good advice. Is it? The question is, did THEY follow it? Did they save? Are they rich? Does it work?
Many would be tempted to say “no”. Trying to save is hard. For a start, you have to go without things you can see in order to get something you cannot see. For example, at the age of sixteen and working your first job, you may have had the choice to go without a new stereo in order to "be rich someday". Forget it: most bought the stereo that they could see.
In addition, saving does not give you leverage. It is sort of like trying to pick up your fat aunt and lift her off the ground. It is slow, sweaty, and not very glamorous. Using leverage, you could put your fat aunt onto a seesaw and use a fulcrum to lift her up. It looks so easy once you know how.
“Saving Cash” can waste your time, and your money!
Saving money into a standard bank account (back when the bank didn't charge you fees to lend them money) took a long time.
Imagine putting a crisp $10 note into the bank back in 1990. Wow, that was a lot of money, back then. Ten dollars in 1990 was the price of two student movie tickets, or four hour's work flipping burgers at McDonalds.
Fast forward to today, and the same crisp ten dollar note would be slightly larger. Ignoring the applicable bank fees, without allowing for taxes, and just counting interest, you would now have about $15. Nowadays that does NOT get you two student movie tickets, and is NOT enough to pay someone for four McHour's work...
What has happened is that inflation has traveled faster than bank interest. Although your money appears to have grown, the purchasing power of the money has shrunk.
[For more lessons on inflation, read Chapter Two of “Who’s taking Your Money?” or check the internet or library. In 1930’s Germany, workers were paid twice a day due to rapid inflation. In Zimbabwe in 2009, workers were paid in petrol due to the “zimbillions”…]
Banks can be good: if you own them
Imagine now, that when you walked into the bank back in 1990, and instead of saving into a bank account, you handed your $10 to the manager and said "Hey buddy, I want to buy some shares in your bank."
Depending upon the bank that you walked into, you may have received one Commonwealth Bank share, two of the National, five of the Westpac and so on (find out what the 1990 share price was for YOUR bank).
Fast forward again to the present and see what your $10 would be now worth. Before you do the quick math and say a figure of between $40 and $100, remember that bank shares do not just GROW in price, they also pay you income each year.
This means that your seedling $10 which you planted did not just grow into a bigger tree, it also produced fruit. Depending upon whether you picked the fruit or let it drop to seed and grow more trees, you may have far more than $100 accumulated.
If your $10 bank share investment was now worth $100+, you will find that you have more than enough money to take half a dozen students out for a movie, and possibly a beverage as well, or enough to pay a McSoldier for two whole days of flipping burgers...
What has happened here? Why is your money so much more? The amount has grown substantially, exponentially. You have become an Investor, not just a Saver. When you save, you lend the bank money. When you invest, you OWN the bank.
In the last twenty years or so, interest rates have come down from 15% on cash to around 5%. And yet the bank still makes massive profits. In 1992, a Westpac bank share would have cost you around $2, and you would have received around 15 cents in income (dividend or "share rent"). In 2010, the same share would be worth $25, and you would receive around $1 in income. This income, of course, increases steadily each year.
Safe as Houses? More Profitable!
To put the above investment into (a strange) perspective, imagine buying a house in 1992 for $20,000 and renting it out for $30 per week. In 2010, the same house would be valued at $180 000, and paying you $200 per week...
For a start, there are not too many houses which you can buy for $180 000 that return $200 per week. Certainly there are very few houses that have had such dramatic growth on their value and their income.
It would be a challenge for you to find a house that could rival the shares for ongoing costs… The difference between the two is, having to spend absolutely nothing on maintenance, insurance, rates etc.
Why do we love Australian shares?
Because, deep down, we are lazy.
We do not want to paint our investment, mow its lawn, collect its rent, pay its rates, advertise and interview tenants, and we certainly do not want to go to the trouble of paying taxes on its income every year... And if we ever decide to sell it, we do not want to have to hammer a sign into the ground, call multiple agents and then put coffee on as hundreds of hopefuls traipse through it and look at it...
We want our investment to sit quietly and grow, paying income that is tax-paid, having no maintenance, no ongoing costs, and not taking up too much room. We want to be able to sell it in a day with one phone-call, or take it with us when we move. Easy!
Lazy Investors of the world, unite!
You can “own the bank” by buying shares in your preferred bank, starting with as little as $500. For more information, go to www.24hourwealthcoach.com & click on “Open an Investment account”, call 1300 762 624 or buzz your favourite broker.
This article was part-published in PROPERTY section of Ipswich "City News" October 2010 & is reproduced here in its unedited entirety. http://www.defencenews.com.au/inbrowser.aspx?id=16
Thursday, September 16, 2010
Friday, August 27, 2010
Zimbabwe Wedding & Honeymoon
Slideshow movie of Jeremy & Yvie's wedding & honeymoon in Zimbabwe, Africa; set to Toni Child's song "Zimbabwe"
Thursday, June 24, 2010
Wealth or Poverty? Choose your VIEW
Can Happiness make you Money? Can you have a Millionaire Mindset simply by changing your view of Wealth?
20 slides will change the way you look at your life
20 slides will change the way you look at your life
Wealth or Poverty? Choose your VIEW
View more presentations from Jeremy Britton.
Monday, May 10, 2010
Creating Infinite Wealth, or making your first million: is it all about Strategy or all about Mindset?
Our new friend is a multi-multi-millionaire now, but a few years ago he was homeless for the third time after a third failed business. Harv said something that many millionaires already know and that most poor people do not yet realise:
“If you want to change the FRUITS, you have to change the ROOTS.”
For almost 20 years Jeremy concentrated on financial planning, teaching strategy to thousands of people. If you want to learn the best techniques for share trading, stock picking, investing, or flipping property, creating wealth or reducing tax, just ask!
But the more he tried to learn from millionaires and billionaires so that he could teach the strategy and techniques to the general public; he discovered that there was even more to learn… There were many secrets to creating wealth & also one big secret to keeping it!
In order to get the techniques of wealth creation to more and more people, Jeremy wrote newsletters, blogs, books, articles for newspapers and magazines and held seminars all over the country.
As well as domestically, we sold books and newsletters in the USA and Asia; thousands were learning the secret strategies of millionaires… so why were they not rich?
“If you want to change the fruits, you have to change the roots.”
After several failed attempts at business, Harv realised it was not the fault of the government, the clients, his advisers or his strategies. The failures emerged from deep inside of himself.
If there is a deep-seated subconscious aversion to being wealthy, all the strategy in the world will not matter. Perhaps that is why around 95% of lottery winners blow the money: deep down, they may not feel worthy.
Perhaps this is also why millionaires who have been bankrupt (Donald Trump, Larry King, Robert Kiyosaki, Kim Basinger, Tia Carrera, Walt Disney, Willie Nelson, Don Johnson) always seem to bounce back: perhaps they DO feel worthy.
The 24Hour Wealth Coach team can now assist you with your MINDSET as well as your STRATEGY.
Change your roots & change your fruits.
Motivation, mindset, NLP, EFT, meditation and hypnotherapy are now offered to you alongside the traditional techniques of wealth creation.
Meetings can be done in our main street offices, over the phone or on Skype. Initial consultations are still free, so call today to make a convenient time.
Skype: jjbritton
Mobile: (Int'l) +61 (0)410 468 378
Thursday, March 11, 2010
The Rise of the SUPER Women
The rise of the SUPER Woman
Women could soon be retiring with more money than men
Today’s women are leading the men in the art of making their money work for them (whilst the men seem to be still “working for the money”).
More women than ever before are choosing to participate in the Self Managed Super Fund arena, and now for the first time, the female investors outnumber the men!
Australian Business Register figures show that in the 35-44 age bracket, there are almost 16% females in SMSF’s, compared to just 13% for their male counterparts.
The figures are higher in the 45-54 age bracket, with 28% of women in SMSF’s, as opposed to just 25% of men.
Again, in the pre-retirees age of 55-64, female members of SMSF’s outnumber the men by almost 35% to 34%.
For the first time, women’s super balances may exceed men’s; due to the females taking more control.
Although traditionally women spend less time in the workforce due to raising a family, and even though the balance of the average super fund is still higher for a male ($107 000 compared to $81 000 for women), be prepared for this to shift.
Last year, a man in the default balanced option of an Australian super fund may have been fortunate enough to gain 11%. A woman who chose to have a SMSF invested into her own choice of property, shares or index funds could have made returns of 34% or up to 93%.
Based on performances such as these, and the potential for greater returns from greater choice, the average woman could soon be retiring with more money than the average man, not from working harder or longer, but by working smarter.
“Women will ask for directions (regarding money), something men may fail to do.”
Wealth coach & financial commentator Jeremy Britton says that increasing numbers of women are asking for more control and more options with their investments.
“Women are now more likely to start asking questions if their money is not performing, and more likely to look closely at what is available to them as an alternative. This could include Self Managed Super Funds, gearing inside of super, direct shares, i-shares, warrants, options, CFD’s or index funds as opposed to traditional managed funds”.
“For women, this (going to a financial adviser) may be like asking for directions; something that men may feel less confident doing.”
“Perhaps the men do not wish to request financial advice for the same reason that men generally do not ask for directions, they often seek less medical advice and men will generally not ask for help whilst fixing things. It could possibly be seen as less manly. What the men have to realise is that no-one can be an expert on everything, and it is OK to seek advice on your money.”
Statistics tell us that the women are making more informed choices about their financial future, and no longer relying on a man or the government to look after them.
With more marriages ending in divorce and the growing number of women in the workforce and in business, the trend could be for women to accumulate more money than the men over their working life.
This accumulation of more money is despite the fact that women are still likely to earn lower wages than men in a similar role, and more likely to have shorter time in the workforce, due to raising children.
Perhaps if the men were bold enough to ask for assistance (directions), then they too, could make more money in less time. It will be interesting to see which occurs first: more men asking for financial advice, or women accumulating greater retirement savings than the men.
Whilst having a SMSF is not a guarantee that you will make more money than someone without a SMSF, the growing number of female SMSF owners can be an indicator that many more women are asking for what they want in the financial arena.
Investors (male or female) who ask questions, seek education and request financial advice are more likely to make better money in future than those who do not seek advice.
WARNING
The above is general advice only. Always deal with a qualified and licensed professional who can advise you on your own unique situation. Jeremy Britton is the author of “Who’s Taking Your Money? (and how to get some of it back!)”. The book is available in bookshops or online & has a money-back guarantee.
For more information or reader offers please call IMP Pty Ltd on 1300 762 624 or Jeremy Britton 0410 468 378. www.24HourWealthCoach.com
Thursday, February 04, 2010
What is an i-share, update 2010
What is an i-share? (What is an ishare?)
Where can I find returns of 50%, safely, from home?
It has been over 18 months since we published the article "What is an i-share?" on the internet blog and the news travels slowly for some. If you would like to see the original article, you can scroll down or press CTRL+F & type in "what is an i-share".
[Interestingly, if you go to Google and do a world-wide search for "what is an i-share" using the quotation marks, you will only receive TWO matches...]
[When is the last time you typed in something to Google and only received two matches? Crikey, you can find over 900 000 references for "fried ice-cream recipe", almost 2 million pages for "drop forty pounds by Christmas" and over 400 000 references to "Buddha's testicles"... (no offence to anyone, regardless of their religious beliefs: we just thought of the most obscure things that we could think of to see if we could return a result of only two matches in Google!)]
Why is there so little information on i-shares, particularly when they are so fabulously GOOD?
In the year that was 2008-09, we experienced the (so-called) "Global Financial Crisis" or "GFC". This was a year of massive share-market drops, billions of dollars wiped out of super funds (apparently) and personal investors cried into their coffee as stockmarkets around the world plummeted like a hot rock...
Or did they?
If the "GFC" was truly a "Global" event, perhaps somebody forgot to translate the memo into languages other than English...
[It is oddly amusing to watch the "World Series" of baseball in the USA, knowing that only the US ever competes in it: no other country has ever won the (so-called) World Series of Baseball.]
[Also amusing is the western world's "World Music Awards" and Movie Industry Awards, which predominantly showcase singers and actors who speak English and work in the USA, UK, Australia or Canada.
Somehow we often forget that movies in China or India will draw crowds 100 times greater than movies in English, or we forget that artists singing in Asia will sell many more millions of albums than artists in the USA or UK.
Remember that China & India are 38% of the world population; USA, UK, Australia & Canada all together make up only 6%. And now back to our feature presentation...]
If the "GFC" was truly a "Global" event, perhaps somebody forgot to translate the memo into languages other than English...
In the "Global Financial Crisis", the US market dropped over 50%, the Australian market dropped over 50%, Europe and the UK fared worse... but what happened in the rest of the world?
China and India ALONE make up almost 38% of the world population; and they are still having more babies. Asian economies are not just growing their populations, they are growing their workforce, their output, their GDP and their business income.
Whilst the US market and the Australian market were going down 50% last year with the "GFC", what was happening in other countries?
We used to hear about the "BRIC" economies, what happened there?
Good question, thanks for asking. While the "rest of the world" (the ones who speak English) were showing negative returns, the average of the (Brazil, Russia, India & China) "BRIC index" posted a return of positive +93%.
Can I invest into BRIC from home?
Yes, you can actually buy the indexes of these countries (or the combined BRIC index) quite easily on the Australian or US stock exchange. To open a broking account for no charge, go to www.24HourWealthCoach.com and click on INVESTORS at the bottom of the page. Trades start from just $19.
What about returns in other economies?
Whilst the English-speaking world was reporting doom & gloom in the newspapers and watching stocks fall by 50%, the BRIC index posted +93%. The available index in China posted a healthy +52%.
The available index in Hong Kong returned investors +60%. Yes, this one is available to both US investors and Australian investors
Other "future emerging" economies returned +46%. This doesn't sound so impressive, coming off the back of China's +52% and Hong Kong's +60%, but remember that we are comparing to the average reported GFC return of around minus -50%.
That disparity reflects an almost 100% difference in returns between the "average" investor (who may have been invested into the default fund for super, or an average managed fund or stock portfolio) and the "educated" investor, who may have followed our advice 18 months ago and decided to invest into other economies.
But wait, there's still more...
OK, so BRIC is beautiful and Asia is awesome, what other areas should we watch in order to make lots of money in future?
As investors and consumers look for better returns on their money and better bargains, we expect much more outsourcing to occur.
A few years ago, the average Chinese wage was around $1 US per day. With major corporations opening factories all across mainland China, workers found that competitors would "bid up" the daily rate in order to get more workers.
Over the last five years, an enterprising Chinese worker could have seen their earnings lift from $1 per day to around $1 per hour. Some Chinese workers now receive over US $2 000 per year for their work (2010 Bureau figures).
This rate is still far lower than the average worker in developed countries, BUT there are still some companies who want to pay less than this hourly rate.
If you were a major manufacturer of mobile phones, cars, DVD players and plasma screens, where would you put your factory?
You could put your factory anywhere you liked, but if you employed US workers or Australian staff, you could be paying $40 000 to $50 000 per year. The lower rates of pay in China ($2 0000 p.a.) are a big part of the reason why "everything is made in China" and major companies can sell products more cheaply than previously and still make massive profits. (Consider how much cheaper most electrical appliances are now, compared to five years ago).
Show me the MONEY!
Remember that you heard it here first, and remember to take some action on the new information, otherwise it is just hearsay. No-one wants to hear you say "I knew ten years ago that China was going to be a major economic super-power". That is like taking no action and then telling everyone that you knew the winner of the race after it is over.
Put your money where your mouth is, so instead of saying "Yes, I knew that" long after the event is over, you can say "I just made $500 betting on that winner" or
"Yes, my investment in China back in 2001 is now up 387%"
[True story. After a trip to China in 2000, Jeremy invested into a "Who's Taking Your Money?" stock and sold out in 2007 for over 450% gain. Buy the book & get a Money Back Guarantee here. ]
Is the Chinese boom over? Not by a long-shot. China's growth will continue, albeit at a steadier pace. There may be other areas in the world who are ready to boom very quickly, just as China did.
Now that the average wage in China is increasing, where will the factories go? Who will be making my digital camera in 2015?
Looking at where the big corporations may go to build their new factories is a matter of research and guessing. So, we like to just look at the "early adopters" and see where they go, because we know that where Nike goes, the rest of the big corporate world may eventually follow...
Rather than flying around the world chasing corporate executives in Lear jets to see where they land, we use the internet. You can readily find out the increasing GDP of a country, its wage growth and the growth of its local stock market, all from your own home PC.
While stocks in China grew at 52% over the last year, who did better?
To mention just two, Brazil's stock market index was up a whopping 128%, and Peru returned a healthy 104%.
Wait a second, Did you say "Peru"? As in Paddington Bear, Peru?
Yes, Peru. It was thirty years ago that China was closed to the world, and not one tourist had ever set foot on the Great Wall. Twenty years ago, the USA was the world's most prosperous nation who sent money to "the poor Chinese" to feed the starving primitives. Ten years ago, no Chinese citizen could own a car. Five years ago, the USA imported ("bought") from China $243 Billion worth of goods and exported ("sold") just $41 Billion, netting the Chinese a US$200 Billion profit from USA alone...
In 2010, the USA owes China over $780 Billion... An amazing turnaround for the once-poor nation to be lending almost a Trillion dollars to the USA. Now that the Chinese own almost 25% of the USA, will they continue to trade?
Absolutely. The Chinese know how to make money. But as US factories are forced to pay up to $2 000 a year for skilled Chinese workers, they are looking further afield for labour forces. Peru and Brazil are countries that offer cheap labour. Wages for a "garment cutter" in Peru are just $180 per year. A personal assistant can be had in Brazil for just over $120 per year.
Your Levi jeans that are currently designed in USA and made in China could soon be made in Brazil or Peru.
Within the next few years, "Made in China" may no longer be so wide-spread, just as "Made in Japan" was prolific before 1997 and is now scarce.
Australian & US investors can access investments in these newly emerging economies by buying the Index of that country or region. This is like buying a basket of the top 25 or top 100 shares and is much safer than buying an individual company.
The ("i" being for international) i-share code for investing into the Chinese index -- from America is FXI, from the UK is FXC and from Australia the Chinese index trades on the local stock exchange as IZZ.
For Brazil, BRIC, China, Hong Kong, Peru and other codes, plus a list of their performance, google i-shares or contact us at www.24HourWealthCoach.com.
Seriously? What the? Wait... Peru? The Peruvian sharemarket is up 104%?
Yes. We are not promising that any of these future emerging economies will be "the next China", nor do we promise that past performance will continue. We just look at what is happening, what has happened and try to draw a line to what is likely to occur in future.
Wages in China, although having grown dramatically, are not yet on par with the western world. This may indicate that China has some growth up its sleeve and a long way to go over the next decade. China could possibly sustain growth from 5% to 10% year on year for a long way yet. Ditto for India.
Having said that, growth in the other third world countries may supersede China and India in the shorter-term. Judging by recent performances, they are doing very well and still have a way to go.
WARNING
Invest wisely and safely; we suggest that i-shares are a small section of your portfolio as the emerging economies carry higher risk than established countries. Do not invest all of your money into one region or one index; spread the risk.
For further information or to start investing overseas, contact your existing broker or a financial planner who can advise on i-shares, or visit our website or call 1300 762 624. Be wise enough to take care and sensible enough to take action.
Investment Management Professionals Pty Ltd ABN 37 115 359 316, Corrporate Authorised Representative #306558, WealthSure Pty Ltd,
ABN 93 097 405 108, AFSL 238030. www.24hourwealthcoach.com
Monday, October 05, 2009
Malaysia 330 am Sunday ---- Free seminar -- save 65% on investment fees
Crazy People do sane things
You dont have to be crazy to do this -- but it helps!
Your Life is in Good Hands -- TRUST ME, I'm a Wealth Coach
KUALA LUMPUR; Malaysia 0330 am ---
Jeremy Britton
It's 330am on a hot Sunday morning & I am too excited to sleep.
I am sitting at a free WiFi spot at the airport waiting for my connecting flight back to Australia.
My initial flight was delayed a few hours and changed gates several times. Now there are hundreds of people sleeping on park benches, concrete and steel chairs waiting for a plane that will not arrive for five more hours...
It is the end of Ramadan & full Moon Festival. Hundreds of Hindus and Moslems are sleeping in the streets. Even the man asleep in the toilet did not wake when I took his photo!
In the last few days, your intrepid investment guru has lived through bouts of infection, sky-diving, level 6 earthquake & being rescued from dangerous surf by a team of lifesavers.
And you thought that YOUR job was risky!
IMP also opened a new office in the main street of Caloundra & has been invited to open an office in Poppies Lane, Bali... Your input is invited on this one, most definitely!
More
The point is, and I do have one
There are two reasons why I cannot sleep.
One is because the Aussie investment market is picking up so strongly on the back of Asia. It is one of those times when you will say "remember when" in a couple of year's time...
It has been three years since we predicted the market crash from the USA in "Who's Taking Your Money?" and we also predicted an Asian & Australian-Led Recovery cycle.
We must say, categorically, for those who do not travel or for those who watch CNN or Aussie TV news: THERE IS NO RECESSION IN ASIA.
The largely US-fed news services mostly carry economic data that is irrelevant to Australians who live in the middle of the ASEAN region.
Indonesian tourism is up 400%. People here from Finland, Norway, Holland, Germany & other non-US or non-English backgrounds are not aware of a downturn.
The Aussie market is up by OVER 50% in six months!
Much of this is to do with our strong ties to Asian trade and our Asia-centric government fiscal policy.
Just as we all remember taking nail-files on planes before September 11, 2001; this will be the time that we remember when the Asian economies finally emerge larger than the USA.
Where were YOU when China, India & Australia made more money than the USA?
Were you invested or were you waiting to see what would happen?
Call the team now for a portfolio review to move your funds out of US managed funds & into something SAFER!
New Caloundra office 1300 762 624
International +61410 468378
More
Four am & still firing on 4 cylinders
My second reason to be excited before dawn on a Sunday is our new LifeStyle seminar series.
Many investors will make a million dollars from the emergence of the new Asian markets; but how do they KEEP THE MONEY?
Divorce or disease can easily cut 50% of your investment capital -- no matter if the investment market is doubling...
With our LIfeStyle Investment seminars we offer free advice on how to INVEST INTO YOURSELF.
There are tips on health, relationships, happiness, spirituality, as well as how to make the most from your business, work, family & TIME.
Come and learn from great speakers how to make your money COME, GROW & STAY; all the while you can make your life happier & your relationships better & your body healthier!
More
Tax Deductible Weekend Getaway
You are invited to join us for a
FREE BUSINESS SEMINAR &
FREE INVESTMENT SEMINAR
Book now for 10 day's time & receive a free weekend at the beach!
Date: Friday October 16th
Venue: LIM office, 1/110 Bulcock St Caloundra
Time : 645pm
Fee : complimentary
Brisbane /Toowoomba clients may have to take a half day off work &/or stay overnight in the nearby motel. This may be a tax deductible expense to you.
Presenters will include Rohan Toll, "The Business Bouncer", Cath Campbell "The Dragon Tamer" who slices through stress with ease and grace, and Jeremy Britton, the 24 Hour Wealth Coach; fresh in from Malaysia.
You may also see the concept of CREATING INFINITE WEALTH in the new Millennium.
All guests are entitled to use the LIM Library & receive a free portfolio review or loan review.
You can SAVE UP TO 65% --- GUARANTEED!
Please book by calling 1300 762 624 or emailjjbritton@gmail.com
Now, to get some sleep and dream of sunsets on the beach... 8-)
Tuesday, May 05, 2009
Stimulate yourself with FREE MONEY from the Government
Apparently there has been some kind of downturn around the world, and even though
You can get some, yes you can!
Disregard the limits that the news told you and get creative. There are many ways of adjusting your income to get free money: TAX TIME IS COMING!
Plan ahead now!
Would you like to get a $5 000 tax cheque?
Would you like to receive a $12 000 investment for FREE?
Would you like some “Ruddy Money” from the government?
Before you say “that’s impossible” or “I don’t qualify”, just consider that there could be a way to do this… if you can only discover how, and have some expert advice or assistance.
Peter Frampton* is a client who earns $142 000 and will pay almost $45 000 in tax. He would like to pay less than $30 000 and can reduce his tax in several ways:
1. Borrow $500 000 to buy property or shares and pre-pay $37 000 in interest.
2. Borrow $400 000 for a Capital Guaranteed investment & pay $53 000 interest.
3. Borrow $37 000 to invest into a tax-effective investment.
Even if there may be limited risk, the first two options will tie up hundreds of thousands of dollars for up to five years. The third option is a smaller investment, with less capital risk and uses “one-off” money with no ongoing expenses required.
Investing into something tax-deductible also means that Peter may qualify for the Australian government Household Stimulus Package & receive Family Tax Benefit Part A. This could add up to over $12 000 in extra refunds & entitlements for Peter and his family.
Andrew & Cheryl Coates, a family where both partners work* could borrow from their mortgage, contribute $12 500 into a tax-effective investment and receive tax refunds and entitlements worth just over $12 500… This in effect grants them a free investment!
The current economic situation will not continue forever, despite what the media may tell you. The current financial circumstances are almost an “action replay” of what occurred in the early 1990’s in
The difference in the repetitive cycle this time is that the Aussie government is throwing much more (Ruddy) money into the system, and so far, Australians (and the Chinese) are not in a recession. The
How can YOU make money out of the global financial crisis?
You can take best advantage of the current economic situation by following the advice of legendary investor Warren Buffett: “The best time to invest is when others are afraid”.
· You may consider investing into property now that interest rates are almost half of what they were in 2008, or if property prices have fallen to more affordable levels in your area. (Call IMP to check for home loans or investment loans starting at under 3%).
· You may consider investing into some good quality blue-chip Australian shares now that they are practically half price. (Call IMP to check find out which investment is best for you, as cheap doesn’t always mean good value!).
· You may consider investing into a government-approved tax-effective investment to secure a 100% tax deduction, maximize your Family Tax Benefits and boost your tax refund. (Call IMP to check what you may be eligible for; even if you think you cannot qualify. There is more than one way to skin a cat!)
You may know of some people who are wandering around, saying things like, “I should have bought a house in 1999”, or “I should have sold all my shares last year”, or something similar. Aim to be one of the few people around in 2013 who are saying, “I’m glad that I bought XYZ share/ JKL property in 2009”. Aim for joy and not regret.
Opportunities like this, where borrowing costs are low (now the lowest interest rates since 1960) and prices of many properties and shares are low, do not come along every day. Get some good advice, get some independent advice, and then, most importantly of all, take some positive ACTION!
Remember the sacred words: “You have not because you ask not. Ask and you shall receive.” This may apply to heavenly blessings just as it applies to tax deductions and great investments. J Remember to ask for what you want and then see what happens!
Newsletter subscribers receive great investment tips, free books & free mp3’s or
Jeremy Britton DipFA SA(Fin)
*Everyone’s individual situation is different, and depending upon your circumstances, this strategy may not work out like the above example, for you. (You also may not be called Peter Frampton). We invite you to make a quick phone call to see if one of the above strategies may be a possibility for you. Call IMP on 1300 762 624; we can even have a quick chat to your accountant on your behalf to find the best way to help you to pay less tax and receive more government benefits. If you don’t call and ask, the answer is definitely “no”. Give it a shot! JCall us today and discover what is possible. IMP planners are not aligned with any financial institution & can give advice from multiple providers. 1300 762 624
Subscribe to:
Posts (Atom)