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TRANSCRIPT
An Open Letter to Any Australian Who Wants to Retire Rich, Happy and Free From Money Worries
Let me show you how Three Emerging
'Money Trends' in the Australian Economy Can
Pay for Every Single Day of Your Retirement...
Dear friend,
Putting money aside for retirement is like going to the gym...or clearing out the spare room:
We know we should do it...we know why we should do it.
But there's always something much more interesting or exciting to do instead...something that doesn't seem like so much of a chore.
For many people, it requires a huge effort to engage your brain just to even think about retirement planning. And when you do start thumbing through all the various brochures and product disclosure statements it's hard to know what to do for the best.
There are too many complicated options that all seem different...but yet somehow strangely the same. You feel like you need a master's degree in finance to understand it all.
So you give up. You put it off...ignore it...or simply cross your fingers that your employer's super will provide all the money you'll need.
If this sounds like your attitude to financial planning I don't blame you one bit. But I suspect that somewhere in the back of your mind a worry may be brewing...
You've seen what's happening in the stock market. You know the global economy is in a mess. You'll have read that super funds are performing terribly. And you'll know this means less money for your retirement.
Now I'm not sure what your retirement plans are...or even if you have any right now. But if you're even slightly concerned about this...if you sense you should do something, but you're not sure what, I urge you to give me a few minutes of your time today.
My name is Nick Hubble. I'm a financial analyst, writer and contributor to The Daily Reckoning email, read by more than 60,000 Australians every day. I have three simple pieces of advice that I'd like to share with you today...
•First, I'd like to show you a straightforward way to set-up an annual cash payment of $40,000 or more — available to you every year in retirement.
Actually, the amount you generate is up to you. The point is, this is really easy to do, as I'll explain shortly...and you can start right away with money you have now.
•Second I'll reveal how you could benefit from a huge amount of money that the government wants to move from one part of the Australian economy to another.
Sounds cryptic, but all you need to know is where this cash is headed; then make one simple move before it gets there. The move I'm about to show you could not only boost your retirement cash— it could protect what savings you currently have.
•Third, I'll show you three easy ways to secure a luxury retirement — and enjoy every day — for a lot less money than you spend now.
The cost of living in Australia is up 40% over the last decade. I'll show you why. Plus, I'll reveal three ways to escape rising prices altogether...and live a luxurious life on just a few dollars a day.
I'm talking about taking three simple steps now. They aren't complicated. You don't have to have any knowledge of investment markets.
But do this now and you could start safely and steadily building up money...more than enough to give you financial security in retirement.
But not just that: you'll have enough money to pay for lots of holidays...to clear your mortgage...to top up your grandchildren's school and uni fees...and quickly sort out any unexpected health scares as you get older.
In short, you'll be able to enjoy your golden years without any money worries.
I realise that's a lot to take in.
And I know this sounds like a tall order. You're probably wondering where all this retirement cash is going to come from...
You're going to Go Fishing for It
I don't know if you've ever seen footage of a bear fishing for salmon...
He stands on the river bank, lowers his head to the surface of the water and opens his mouth.
Within a few seconds, an unsuspecting salmon bombs through the water, straight into the bear's waiting jaws — bringing a new definition to the phrase 'fast food'.
It's great to watch. But the bear isn't standing there by accident. He knows exactly where to position himself on the bank so that entire schools of salmon will be swept towards him by the raging current.
How good is that? He does nothing more complicated than stand in the right place and let the current send food straight to him.
This is a great metaphor for the secret I want to share with you today.
You see, I'm about to show you that money moves through the Australian economy in exactly the same way.
And I can tell you where to position yourself to make that money flow straight to you.
I'm not talking about doing anything scary, risky, complicated or illegal. You don't have to rob a bank, pour your life savings into the next 'hot' stock, or win the lotto. This is not about betting on sports or trading forex or commodities.
And I'm not going to put you to work either. You don't have to start a business, organise any complicated real-estate deals or make any big adjustments to your daily life.
This is a New and Exciting Way
of Saving For Retirement
In the next few minutes I'll explain why you need to think about how to prepare financially in a different way...and why the accepted or 'conventional' way of saving for retirement won't get you the money you need to live well on.
Now it's not my intention to scare or worry you in this letter: just to show you how making a few small adjustments now can make a huge difference to your quality of life in retirement.
And this is true whether you want to retire in the next five years, or the next thirty.
Figuring this out has been a goal of mine since 2009. Back then we'd just witnessed the biggest financial crisis in a generation. Stocks had been hammered down.
The thing is, hundreds of thousands of Australians rely on stocks to generate cash for retirement — because they're told that's the best way to save.
But after the financial crisis I realised:
There's no way people are going to be able to live well for 20 or even 30 years when they no longer have a job — if they're relying on shares alone for money.
So I've come up with another plan. I'm going to share that plan with you in this letter.
I hope you'll agree that it's a good plan. If you're easily bored or irritated by mainstream financial advice, I think you'll like what I have to tell you.
In the course of the last three years I've learned a lot about how you can make money in Australia. I've made some exciting—and surprising—discoveries that I'll share with you today.
I'll get to the specifics in a moment. But before I do I want to share the most important thing I've discovered:
I've learned that money moves in fast, powerful currents around the Australian economy, whether the economic climate is good or bad.
If you can anticipate these currents, and position yourself accordingly, you can have money — plenty of money — flow to you.
I call this phenomenon the power of money trends. And there are three I want to tell you about over the next few minutes.
What is a money trend?
In simple terms, it's a change in the way huge amounts of money move through the economy.
For example, when the government creates a big new tax, or cuts interest rates five times in a year, it changes the way money moves through the economy. It creates a money trend.
Big financial institutions and investment banks also like money trends. First, they create them. Then they position themselves to make huge sums of cash from them.
Remember the lead up to the Global Financial Crisis? Bankers were getting paid unbelievable sums of money for trades they were making on the US housing market...while millions of ordinary people lost their homes.
This is a prime example of a money trend... and illustrates their power perfectly.
You see: money trends create winners and losers at the same time. If you're on the RIGHT side of one of these trends, money flows to you from people on the WRONG side.
Today I'm going to show you how to get on the right side of the three most powerful money trends in Australia.
Take the action I'm about to show you and I believe you can have enough money waiting for you when you retire.
Now there are a couple of things to point out at this stage.
First, I'm not talking about anything that's going to make you a million dollars overnight. You may find yourself with an extra million dollars to spend over the course of your retirement – but this is not a get rich quick scheme.
Second: I realise that taking retirement planning advice is probably as unpleasant to you as taking cod liver oil. I think this is because the advice you get from mainstream advisors is usually so dry and boring...and conventional.
A lot of what you're told to do is complicated, tedious, and difficult to understand...plus it often requires a lot of sacrifice now...and years before you'll see any benefit.
PRAISE FOR
THE DAILY RECKONING
'You guys rule. I read almost every edition and it has made me a confident thinker about my family and my money.'
— Aaron D
'Thank you for being so honest, thank you for taking a stance, for being so open about your ideas, thank you for packaging up so much information in to an email that I can read in 10 min every day, thank you for bringing complex economics to simple fundamental terms that just make so much sense.'
— Paul F
'It's the best publication I have ever read beside the Bible.'
— Bev W
No wonder people put this stuff off.
So I'm going to explain my ideas to you as simply as I can — in a common sense way — so that you can start working on this strategy, with confidence, from as early as tomorrow.
I'll show you in a moment how you can start making money almost immediately.
You'll see small amounts at first.
But when I show you how these can grow into a big nest egg over time — with minimum effort from you — you'll be amazed. Hopefully it will fire you up.
Now I realise...
You May Not
Have Thought
About Money in
This Way Before
But I know for a fact you'll have felt the negative effects of money trends in the Australian economy.
Let me put it to you like this:
If your retirement fund is losing value...your house price is dropping...your bank savings are earning less...if your power and water bills always seem to be going up...and your tax bill is rising...while your income is standing still...
It's a sure-fire sign that you're on the wrong side of the three powerful money trends I want to tell you about today. They are currently working against you.
Now don't worry about that. In the next few minutes I'll show you how to get on the right side of these trends quickly...turn things around... and get them working for you.
The first money trend I want to tell you about is the income trend. If you get on the right side of this money trend quickly you could make several hands-free income streams of $10,000 cash — or more — a year, every year in retirement.
This is all to do with what I call 'cash-out companies'. These companies can turn a one-off stake into an annual pay cheque for you. Some of them are the biggest companies in Australia. Coming up I'll show you how ANZ bank is paying some people $20,000 a year...people who don't even work for ANZ.
First let me tell you about the trend...
MONEY TREND 1: From Growth to Income
Take a look at this chart.
It's a chart of the Australian stock market—the 'All Ords'—over the last seven years (27/09/05 – 27/09/12 – Source Yahoo Finance)
Looking at this chart you'd wonder exactly where the trend is — with all the ups and downs.
But look at the red line I've drawn horizontally across the chart. This line shows you that your money is in exactly the same place it was in September 2005. It hasn't grown in 7 years.
Now if you haven't had any money in the stock market, you've been lucky.
But if you have, it might annoy you to know that your money has been treading water for the last seven years.
There's a simple reason for this:
The Growth Trend in Aussie Stocks is over
The growth trend was the strongest money trend in Australia over the last two decades.
To make money from this trend you mainly bought shares in big mining companies like BHP Billiton...or other companies that were linked to the China boom.
BHP shares went up 540% from September 2003 until the financial crisis hit in May 2008.
Lots of people made money from BHP shares. Maybe you did too. But now the picture is changing. And it's changing quickly.
Australian stocks are not growing any more.
The biggest driver of share price growth over the last decade was Chinese demand for Australian resources. That demand is falling fast. China's economy is slowing down. BHP and other big miners are cancelling huge projects worth billions of dollars.
Now even politicians — like Australia's Resource Minister Martin Ferguson — are coming out and saying the mining boom is over.
This has been big news in Australia. You've probably read about it or heard about it. Maybe you're worried about it. Investors are. BHP's share price is down 10% already in 2012 (correct to September 27th).
This is the biggest indicator yet that the growth trend is over.
But at the same time, a new money trend is emerging to take its place: the INCOME trend.
I think the 'income trend' will feature in the Aussie economy for the next fifteen years at least. Smart investors and savers who jump on this trend now could do BETTER for themselves than they did out of the great resources boom.
How being stuck in the
growth trend is killing
your retirement plans
•In 2008 the GFC wiped almost 40% off the value of Aussie stocks...and a staggering $160 billion off the value of Australian super funds. Many hard working Australians lost half or more of their retirement cash in the space of a few months.
•And SINCE the GFC Australia's superannuation funds have been losing an average of 4.5% every year.
•According to the Australian Financial Review, over the past 30 years, the stock market crashed on 10 occasions — a strike rate of one year in every three
•The Association of Super Funds of Australia says the annual cost of a 'comfortable' retirement is $40,390 per year
•According to a 2009 study by Mercer the desired retirement age of a typical working Australian is 58 years old. And according to a brand new report by the OECD the life expectancy of a typical Australian is 82 years old. That means — typically — your retirement money has to last you 24 years
•If ASFA is right about how much it costs to be 'comfortable', you'll need close to a million dollars to pay for your retirement
•Stick all this into the AMP online super calculator — using all the 'average' settings — and you come out with a retirement pot of just $456,867. Less than half of what ASFA says you'll need. That assumes you earn the average Australian salary of $55k at age 18, it grows by 4.6% a year; you open a super account aged 18 and your employer pays 9% contributions for forty years!
•AMP's projection also assumes Australian stocks grow by 7.25% a year. In reality, over the last five years Australian stocks have SHRUNK by an average of almost the same amount: -7.21% a year (correct at June 5th)
•A 2011 report by Investment Trends found that close to half of all Australians are financially underprepared for retirement
•A 2012 study by the Australian National University found that 51% of Australians over 55 are concerned they won't have enough to fund a 'reasonable' standard of living in retirement; while 46% believe they will outlive their retirement savings
•According to Fujitsu Consulting, fewer than 20 per cent of Australia's baby boomers have adequate savings or private insurance cover to fund their health care in retirement
•Access Economics says that more than a third of Aussie workers, if they keep to their current contributions, will have inadequate incomes in retirement.
Yes – better than BHP's 540% over five years.
Essentially, a huge amount of money will move out of so-called 'growth' stocks into investments that make money in different ways.
These include the 'cash-out companies' I mentioned a moment ago. Companies that pay you a regular income to own them.
I'll tell you what I mean by that in a moment. Plus I'll tell you the names of four 'cash-out companies' that can start making money for you right away. But first I need to let you know... •If you have any money currently invested in Australian stocks, hoping that share prices will rise, you are betting on growth that has slowed RIGHT DOWN.
•You are on the wrong side of this money trend. As long as you stay the wrong side, money will not flow to you. It will flow away from you.
So with that in mind, let me show you...
How to Jump on the Income Trend Now and Boost Your Retirement Cash by $40k a Year
Imagine there was a way to make regular cash without doing any actual work...and without having to sell anything — your house, shares, belongings...
I realise how unlikely this sounds.
But I'm about to show you that this is possible with an investment in a particular type of Australian business — one that isn't like a regular stock.
With this kind of company you can make money even if its share price doesn't go up.
Again, I know that sounds weird. But trust me, there's nothing weird about these companies.
They are generally Australia's biggest, safest, most 'boring' businesses.
They can start making money for you right away because they're on the right side of the income trend.
I call them 'cash-out' companies because they basically pay you to own them.
What's more, some cash-out companies come with a special 'boost button' that can generate more money for you than you'd ever get in a bank savings account.
In a moment I'll tell you about one company that has the potential to pay you $10,000 cash, every year in retirement, even if its share price doesn't go up by a single cent while you own it.
And I'll recommend ANOTHER three to you that could do the same IF they enjoy modest growth over the next few years...and I believe that's achievable, for reasons I'll explain.
That's a potential forty thousand dollars a year cash for making four simple moves to the right side of the income trend now.
How Does That Idea Grab You?
You've probably realised that I'm talking about companies that pay you money in the form of a dividend. These companies hand out some of their profits every year to shareholders.
This income stream is going to be really important in the coming months and years — when people realise the traditional way of making money from shares no longer works.
As this starts to dawn on people, you'll see the income trend really take off. More and more money will leave the growth trend and go looking for a new home in companies that issue a dividend...or 'cash-out companies', as I call them.
Why should you be interested in these companies?•First: the good ones will pay you money every year even if their stock price doesn't go up. And they'll keep on paying you long after you retire. That means you could have a stream of money coming in when you longer have a job.
•Second: they're working with the income trend, right now. Buying a small stake in them now means you don't have to rely on share prices going up for your retirement savings to grow.
•And third: The four 'cash-out companies' I'll tell you about in a moment have the 'boost button' that can increase your cash payout by three or four times what other investors make. They have the potential to pay you the same amount every year in cash as you put in now. And you don't have to sell your shares to get this money.
I'm not exaggerating when I say that over time, some of these 'cash-out companies' can turn a modest amount of cash into tens of thousands of dollars in regular, annual income — right when you'll need it.
Yes, I know this sounds impossible...maybe a little farfetched...
But I assure you: this is very possible. In fact, it happened with ANZ bank shares, where you could now be getting...
$20,000 a Year Cash Just
For Holding on to the Shares
You'll know that ANZ is one of the big four banks. It's not a tech startup. It's not a tiny small-cap stock. In terms of investments ANZ is about as 'boring' as they come.
But ANZ is also a cash-out company with a 'boost button'. And that boost button turned a $10,000 investment in January 1988 into a ten-grand-a-year cash payout within 17 years.
Imagine that: by 2005 you could have been raking in ten thousand bucks a year just for holding on to those ANZ stocks.
Where else could you get that kind of income without having to work for it?
Now here's the power of the boost I was telling you about:
Those who knew about it got the $10k a year payout. Those who didn't got paid THREE TIMES LESS.
And get this:
If you'd held on to those stocks until today, your cash payout would be double again — twenty grand a year...
Now, imagine you had interests in two or three of these cash-out companies... Suddenly, that beach house in North Queensland looks realistic again...
That first-class-all-the-way touring holiday to the Greek islands is back on... You can stride into the BMW dealership instead of staring through the window.
Now let me be clear: this outcome doesn't happen every time. And you should know that when you buy a cash-out company you're still buying a share. Buying shares is always risky.
I'm just trying to show you that this alternative way of saving for retirement really does exist here in Australia. 'Cash-out companies' are usually big name firms you'll know very well.
In fact, it may surprise you to learn that there are currently around 200 big-name Australian 'cash-out companies' that will offer you the boost option.
The boost is a powerful way of compounding your cash steadily over time — and building lots of money for retirement — without having to actually do anything.
It works whether you put in $500 or $50,000.
What's more, taking advantage of it is simple. In most cases, if you want the boost option, you just tick a box on a form.
Your future self will thank you many
times over for doing this smart thing now
Look I realise this might all sound weird, complicated or too good to be true. You may be wondering how a company can pay you ten or twenty grand every year...without ever having to sell your shares.
Well, I'll repeat: this isn't 'get rich quick' territory. You have to be patient.
Yes, you can start generating cash straight away...a few hundred dollars each year from relatively small stakes. But this really pays off as a longer-term retirement strategy.
The idea is that you sew a few seeds now...then leave them alone. Put an end to the nagging worry and doubt in the back of your mind and get on with enjoying your life.
Do that and you can end up getting paid three or four times more than other people who buy the same share but DON'T choose the boost option.
I promise you it's above board and easy to do. If you're interested and want to find out more I've put a report together showing you exactly how these companies generate cash for you over time.
It's called: 'Cash-out companies: How to get four of Australia's biggest, safest companies to pay for your retirement'. In a moment I'll tell you how you can get a complimentary copy.
In this report you'll find full detail of my four favourite cash-out companies on the Australian market right now. Each of them has a boost facility.
With my first 'cash-out company' — an Australian Gas firm — you could see whatever you put in now returned to you as an annual payout within just 14 years from now. And after 20 years I've calculated that this figure could be more than doubled.
So say you put $5,000 in now...you could end up with:
A Ten Grand a Year Pay Cheque
in Retirement For No Work
Yes, I know it sounds like a long time to wait — but just think how happy you'll be collecting this hands-free income stream in your golden years.
Imagine how you'll feel banking $10,000 dividend cheques while your mates are cashing $100 Centrelink cheques...
And remember, that's just ONE of the four 'cash-out companies' in my report.
I also want to tell you about a drinks company — one of the most famous in the world... a betting provider you'll definitely have heard of and a gold miner that could end up paying you in TWO ways...
Each of these companies offers the 'boost' function that could amplify your returns by three or four times what other investors make. And they all have the potential to pay you whatever you put in now every year in retirement.
In short:
These Companies Can Help
You Make Money for Life
I repeat: this isn't complicated to get your head around, or difficult to set up. You can buy these investments from any broker. And you don't need to bet the farm to get this cash.
The companies in my report aren't startups or 'small-cap' firms. They are big, household-name Australian firms you'll know well.
It's easy for you to understand what they do and how they make money. I'm pretty sure you'll feel good owning a stake in them.
But the best thing about these investments is this: share price growth is not the most important factor in your success. Most of the money you'll make from these companies comes from their 'boost option', which compounds your cash over time.
That means — once your initial stake is down — you'll feel less like a nervous punter standing trackside at a race meet...and more like the part owner of a good Australian business, which is the way it should be.
Of course, you could leave things as they are.
I don't know what your current financial plan is...or how much attention you pay to it. You may not even have a plan to save the money you'll need to retire on. As I said earlier — you might be putting this off.
Or you may have savings that you're happy to just leave in the bank — even though interest rates are falling.
Well, all of this is your call. In truth, your money is at less risk in the bank right now than it is in the stock market.
The problem is it's not earning you anywhere near enough to live on in retirement.
So like I said at the beginning of this letter: you have to think differently. The four cash-out companies in my report are on the right side of the 'growth to income' trend...and their boost option is like saving on steroids!
Let me ask you:
Can you think of a simpler way to make forty grand a year PLUS without having to work for it...
...And without having to sell your house, or other assets and possessions?
Get my report, take the action I recommend and you stand a good chance of coming out of this very nicely, with a hands-free income in retirement.
Not just that, you'll be on the right side of the 'growth to income' trend.
By my reckoning, you'll most likely avoid a load of heartache, worry and financial stress.
I don't know about you, but to me that's worth a lot.
Look, you know what your financial goals and retirement dreams are. You know the level of risk you're comfortable with.
How Aussie Seniors are Seeing Their Dreams Crushed by the End Of the Growth Trend
Since 2007 Australia's superannuation funds have been losing an average of 4.5% every year. The OECD says that's more than any other pension system in the advanced world except Iceland.
This financial mismanagement is hitting real people hard. People who can't afford to lose money at their stage of life.
People like 62-year old forklift driver John Hale from Melbourne. John has seen his retirement investments return a shocking +0.87% in the past five years. In 2011 his balance fell -1.37%. In an April 10th article in The Sydney Morning Herald, John said:
'I'm 62 and I want to now work part-time. AustralianSuper was supposed to be my safety net, but I need to get it out and into the bank where I will get better returns... What I can't work out, looking at those ads on TV, is that the person in an industry super fund is going up the escalator. But I've gone down the escalator. Why is that?'
People like 65-year-old retired accountant Ken James. In a June 2012 article in The Australian, Ken explained how the value of his nest egg has plunged around 10 per cent SINCE the global financial crisis. Ken says:
'Both super and share valuations have taken more of a hit in the last two years than what I thought. I still think I'm right, but what's around the corner, like this scare overseas?[...] I don't intend to go into a retirement home for a while, but you see how much it costs to get in there and if anything happens to the health of [Ken or his wife] you just don't know how much it will cost.'
You may know people in the same financial situation as John and Ken.
You may be in the same situation yourself.
If you are you're probably angry. Or at the very least confused and concerned. I don't blame you.
Unfortunately, I can't help you bring these people to account.
But I can show you how to get hold of your retirement planning and do something positive before it's too late.
Just know that I'm not stretching the truth when I say that whatever you tuck away now into these four cash-out companies could be paid back to you every year in retirement. And you'll never need to sell your shares.
Imagine the peace of mind that would give you...it means you wouldn't have to rely on handouts from the government or your kids.
You could have the ready cash to take holidays when you please...spoil your grandkids rotten...and pay for any medical treatments you may need...
Sadly, for many Australians this dream scenario is getting further out of reach.
Millions of hard working Aussies earnestly saving for their retirement are faced with negative returns, poor choice, high fees and a bunch of excuses when things go wrong.
A June article in The Australian showed that retirement savings in superannuation have fallen back 4.5% every year since the global financial crisis.
I read another survey in June by the Australian National University, which said HALF of all Australians over the age of 55 have made the decision to postpone retirement because of poor returns from the stock market.
No wonder.
Aussies in financial trouble are even resorting to raiding their nest-eggs to avoid getting kicked out of their homes.
The Sydney Morning Herald reported on 19th August that record numbers of Australians are making emergency raids on their supers — drawing out up to $15,000 a time — so they can meet overdue mortgage payments...
They are, essentially, stealing from their future selves to avoid losing their homes now.
None of This
Sounds Right to Me
So I've decided to dedicate my time to hunting down more emerging money trends in the Australian economy...and showing you how to get on the right side of them.
I really think I'm onto something here.
By the end of this letter you'll know about three powerful money trends you can jump on right away.
I'd love the opportunity to share more of my discoveries with you.
So I've decided to put all of my best retirement moneymaking ideas and research in a new monthly newsletter called The Money for Life Letter.
Over the last three years I've discovered lots of new, exciting and surprisingly simple ways to generate money for retirement.
Ways that aren't complicated, difficult to grasp or boring.
Some are investments that work with money trends in the economy. Others don't involve the stock market at all. Investing in the stock market isn't the only way to make money...
I've found ways to save money too — on everyday items, bills, and other expenses. I'm not taking about scraping by on the bare minimum or cutting back on the things you love.
You'll see that you don't have to go without to have a great quality of life — now or in retirement.
Plus I've found lots of ways you can...
Live Like a Millionaire In Retirement
Without Spending Money like One
To me that's the real benefit of what I have to offer you. I think this kind of quality of life is what people really dream about after a lifetime of work.
I'm guessing you want your golden years to be enjoyable...relaxing...even adventurous.
You'll want to spend time with those you love...maybe work on your garden...try a new hobby...take a holiday when you want...all free from money worries.
It's not wrong to want these things. And it's not unrealistic either.
The Money for Life Letter
can help you:
MAKE MORE CASH: First, let's get you working with money trends instead of against them. I've studied types of real estate investment...fine wine and art...precious metals...overseas property...some low-risk trading. I can show you how to generate retirement cash, simply and effectively, with minimal risk.
SAVE MORE CASH: Australia is becoming a very expensive place to live. I've looked at the best ways to save money now...so that you'll have more cash to spend in retirement. I don't mean you have to cut everything back to the bone. As you'll see, you can save money easily, without reducing your quality of life. You don't have to live like a monk to radically boost your retirement savings.
ENJOY YOUR CASH: This is probably the most exciting part of retirement planning. I've spent months looking at ways you can enjoy a luxury retirement on the cheap...everything from holidays to hotels... restaurants... spas and other special treats that give you a million dollar feeling but won't break the bank. Keep reading... I've got something really special to share with you on this...
Let me put the first issue of The Money for Life Letter in front of you – and I'll prove it to you.
If you click here you can take a 30-day trial subscription of my brand new newsletter. The whole thing takes about two minutes to set up and there's no obligation to become a full subscriber.
Arrange your trial subscription today and I'll send you an email with a secure link to download your first issue, titled: 'Gift Businesses: How to get four of Australia's biggest, safest companies to pay for your retirement'.
In this launch issue you'll get my full report on the four 'cash-out companies' I told you about earlier.
Take a look and see for yourself how getting on the right side of the growth-to-income trend now could boost the amount of money you'll have to enjoy in retirement by $40,000 a year...or more.
It's a great start.
But there's so much more to come...including two more ideas coming up in this letter.
But I sense you might be wondering...
What Qualifies a Young Guy Like Me
To Give You Retirement Advice?
Nick Hubble
Well in the interests of full disclosure, I'm 23. Now I really hope you won't hold that against me. You see, being young has advantages in the financial world.
For a start, unlike many bankers, brokers and analysts here in Australia, I'm not weighed down by decades of 'conventional thinking'. I'm free to question things. And that suits my nature perfectly.
You see I was brought up to question absolutely everything...and take nothing at face value.
This approach took me to Bond University on the Gold Coast, where I gained degrees in finance, economics and law.
It took me to an internship at one of the biggest and most powerful investment banks in the world...where I learned what the financial world is REALLY like.
And it brought me to Australia's biggest financial publisher, where I've been contributing to The Daily Reckoning for the past three years.
How am I different to the guys who run big funds and brokerages?
1.I'm completely independent. I don't work for a major bank, fund or other financial institution. I operate outside of that system. That means I can bring you moneymaking ideas that are more exciting and unconventional than you're getting now...
2.I don't manage your money for you. I give you ideas on how you can generate enough cash to enjoy every day of your retirement.
3.I don't have any vested interests. Unlike a lot of money managers, I don't get paid any commission or kickback on any investment I recommend to you. But most importantly...
4.I believe in what I'm doing. By that I mean that I understand WHY I want to help you. I'm not trying to further my career in a big institution. I'm not chasing some kind of performance statistic so I can show off to my employer. I'm trying to help you so that you can afford to live comfortably for 20–30 years when you no longer have an income. Because that's what I want for myself.
Yes, I may be young and outspoken — but I don't consider myself pompous or arrogant. I don't see it as my job to tell you what to do with your money.
My job is to research new, different and exciting moneymaking ideas on your behalf, then present you with useful, balanced and plain spoken advice.
It's completely up to you what you do with that advice.
But let me tell you:
I wouldn't be launching a monthly newsletter if I didn't genuinely believe I can help you make more money for your retirement than you're going to get by doing what you're doing now.
Why am I so sure?
Well, look at the numbers. Australians could hardly be doing any worse...
As a June 13th article in The Australian put it:
The Herald Sun also got stuck in recently. On October 8th it quoted a News Limited report that concluded:
You wonder how the guys who run these funds are still in jobs.
But the truth is that very few of their best clients — retirement savers — ever question what they're up to.
'Nick - Always enjoy the great information you provide. Love your feeds and info...it must be a great place to work with free reign to tell it how it is without having to answer to some editorial department with questionable agenda and shareholder control'
— Allan Mountain
Every month that goes by where you don't check your stock investments is another month where these guys are getting away with murder.
Look, maybe you trust that your money is in good hands. Maybe you believe the financial pros have your best interests at heart. Maybe you believe it will all come good in time.
But if you're at all worried about your financial future...if you're even slightly concerned about how much money is going to be waiting for you on the day you give up work...click here now and take a look at my brand new newsletter.
You can check out my ideas on a no-obligation basis for 30 days.
Issue One Could Be Worth $40,000 a Year to You
Remember: the four 'cash-out companies' I've researched have the potential to generate up to $40,000 for you in cash every year in retirement.
My analysis includes:•The company names, what they do and why they're great businesses to invest in...
•How to buy them and what price to pay for their stocks...
•How to use the power of the 'boost button' to get up to four times more money than other investors receive...
•When you can expect to get paid what you invest now every year in cash
Make a start on this now and you should begin to accumulate a steady amount of retirement income straight away.
This income will grow as your money compounds. You'll have more money day by day. And then somewhere down the line you'll have the free time to enjoy it.
Right now your destiny is still in your hands. Even if you only have a few years left before you plan to retire, you still have the time and the power to decide on the quality of your retirement, and the amount of wealth you'll have to enjoy.
If you remain a passive participant — like most investors in the stock market — you'll stay at the mercy of money trends...that means — unfortunately — you'll most likely get what you're given...and you'll have to make it last as long as you can.
It doesn't have to be like this. Arrange your 30-day trial subscription of The Money for Life Letter now and you'll get my four 'cash-out company' recommendations immediately.
To do this now, just click here.
I guarantee you'll start feeling more positive about your retirement immediately.
Sign up today and I'll also include a bonus report about another money trend that could stand to make you a lot of money, provided you get on the right side of it now...
MONEY TREND 2: From Risk to Safety
One of the most significant global money trends of the past twenty years was a huge flow of cash into speculative shares and a whole bunch of complicated financial bets dreamed up by greedy bankers and traders.
Basically, big financial institutions spent twenty years taking other people's money and making the riskiest bets they could find.
The Internet or 'dot-com' boom of 1999–2001 was one significant point in the risk trend. The sub-prime lending boom later that decade in the US was another.
Now it's all blown up.
The Global Financial Crisis...financial meltdown in Europe — particularly Greece and Spain...the massive debt problem in America...the China slowdown... these are all signs that the risk trend is over.
Right now, governments are scrambling to try and make this right. Ordinary people are panicking too, because their money is on the line. It's only natural. When a financial crisis blows up we sell stocks and other assets that we think might drop in value.
This panic is creating a brand new mega money trend — all over the world.
The safety trend.
In most developed countries, money is on the way out of risky assets like shares and real estate, and into safer ones — like bank savings accounts...companies that pay a dividend...gold and silver...
...and something else that I think is about to become HUGE in Australia.
If I'm right...
The 'Safety' Trend Will Be the Most Powerful Australian Money Trend of the Next Five Years
And I've found a way for you to get on the right side of it early.
In fact, if I'm only HALF right about this your retirement savings could receive a huge and timely boost.
Here's what I think will happen to kick start the safety trend in Australia...
Back in 2008 the Global Financial Crisis wiped 40% off the value of Aussie stocks...and $160 billion off the value of super funds.
Many thousands of Australians lost half or more of their retirement cash in the space of a few months.
Now it sounds obvious, but in a stock market crash the last thing you want to be holding is a bunch of stocks.
The problem was, because investment funds in Australia have a huge appetite for stocks, most people were holding large quantities of stocks.
When the market tanked in 2008 tens of thousands of Aussies lost their savings because they owned too many stocks.
Incredibly, four years on: nothing has changed.
In 2012, stocks make up an incredible 46.5% of investment portfolios in Australia.
'When you have 60% of your retirement savings in equities (stocks) and half of that is volatile global shares, you're unwittingly riding on a roller-coaster that is having its rules changed month by month.'
Sydney Morning Herald
June 17, 2012
Former Treasury Secretary Ken Henry says that in your super fund: 'the proportion (of stocks) is even higher — at least 70 per cent, not unusually 90 per cent.'
The OECD says we own more stocks in our investment portfolios than almost anyone else in the world. And these stocks are not growing.
In fact, the reverse is true.
Remember that study quoted in The Australian...it showed how Aussie super funds have lost 4.5% a year since the global financial crisis.
That's a bigger loss than any other pension system in the world, except Iceland.
By comparison, in Denmark, stocks make up just 15% of investment portfolios.
That's less than a third of the allocation in Australian portfolios.
And get this: Danish investors have recorded the BEST average annual returns since the Global Financial Crisis: around +4% a year.
The conclusion here is obvious:
The More Shares You Own
The Less Money You'll Make
I know that's not what you want to hear when you're saving for retirement.
But remember what I told you: the growth trend is over.
For that reason alone you should look at how much of your retirement savings are tied up in shares right now.
But there's another reason why having a lot of your cash in stocks is a bad idea right now.
It leaves you dangerously vulnerable to sudden market downturns.
Look I'm not saying there's going to be another big crash any time soon.
But I certainly wouldn't bet against it.
There's hardly any optimism in the global economy right now. People are in debt.
They're cutting back on spending. They don't want to take risks anymore. Economies are creeping back into recession territory.
The concern is that all this pessimism and worry will cause another big downturn in our stock market.
And that prospect scares the hell out of the government too.
Only they don't want to wait to find out.
So they're planning a pre-emptive strike...
How the Aussie Government is About to
Direct a Huge Flood of Cash Your Way
The 'safety' trend is
coming to Australia...
'It's absolutely true that they (super funds) are overweight equities (shares). It goes back to the default allocation in most funds, which is overly aggressive – and for a default allocation it's far too risky. Those people who have not made a deliberate choice are put into high risk regardless of their circumstances...'
Outgoing Future Fund Chairman
David Murray — as reported in
The Australian, 21/03/12
--------------------------------------------------------------------------------
'What the market has shown us over the last five years is the asset allocation has not been suitable for some heading into retirement or retired.'
Head of the Australian Super System Review, Jeremy Cooper — as reported in the Australian Financial Review, 19/03/12
--------------------------------------------------------------------------------
'On any measure, your typical Australian superannuation fund is massively overweight equities... Minimising the extent to which individuals are really going to suffer badly, as some did during the global financial crisis, that is the important dimension.'
Former Finance Minister
Lindsay Tanner — as reported in the Australian Financial Review, 04/04/12
--------------------------------------------------------------------------------
'We should be thinking more seriously about what sort of asset portfolio really is in the best interests of our superannuation fund members, especially as they move into retirement.'
Ken Henry — address to the ASFA Investment Interchange, 16/03/12
What you need to know is this:
The government can't risk another 2008-style crash wiping people out.
Especially people who are trying to make back losses they suffered in the Global Financial Crisis. The political consequences of this would be disastrous.
The government also knows that Australian investment funds have put far too much of your money in risky stocks.
And it knows how dangerous that is.
Since the beginning of 2012 the government has been on the offensive against the super fund industry.
The same financial heavyweights who usually come out to do a PR job for stock investing are now all coming out to BASH stocks (see box right).
I expect that sometime in the next 12–36 months the government will force super funds to invest in assets that are not as risky as shares.
If you think this sounds a bit dramatic, look at what former Finance Minister Lindsay Tanner said back in April:
'It needs to be understood by players in the market that it is not a given that there will be no government intervention on this issue...
'If governments in the future, of either side, are facing extremely unhappy super fund members, that will generate enormous political pressure...
'We saw a bit of that in 2009, but it is not something we are immune from experiencing again in the future. There is a risk of some kind of government intervention.'
You can't get any clearer than that.
Lindsay Tanner is saying: If super funds don't invest in assets that are less risky than shares the government could force them to do so by law.
If this happens, billions of dollars will flow out of stocks and into a different kind of investment.
This will create a mega money trend — maybe the biggest in Australian financial history — and a huge opportunity for you.
So where's All This Money Going to Go?
Well, I think I have a pretty good idea.
The government is very keen on a certain type of investment for many reasons that I'll explain in your bonus report.
The main reason is this: perceived safety.
In the last 30 years the Aussie share market suffered a major fall on 10 occasions. That's a strike rate of one year in every three.
Over the same period the investment the government is keen on fell just twice; most notably in 1994, but by only a fraction of the share market's drop.
Now the obvious thing to do would be to move some of your money into this 'safety trend' asset right now — before this huge flood of money is triggered.
The only problem is it's hard for you to buy this investment directly.
But don't worry. I've found a clever way for you to get exposure to it...before tens of billions of dollars potentially flow in.
Here's How You Can Get on the
Right Side of the Safety Trend Now
I've found two investments you can buy easily that track the performance of this soon-to-be very popular sector...
I don't want to give too much more away here, because this is extremely sensitive... not to mention hugely exciting.
If I'm right about this and the government forces super funds to invest in safer assets by law, you could see a colossal amount of money flow into this sector, which would make the value of these investments soar quickly.
It will be a very good idea to get your money in before that happens.
I'll tell you exactly what you need to do now in a brand new report called: '2 Safety Trend Investments to buy now'.
If you decide to take a 30-day look at The Money for Life Letter I'll send you a free copy of this report.
You can read my research...learn why I'm convinced this investment is the government's preferred 'safe haven' for super cash...why this could be Australia's biggest money trend ever...
PLUS — you'll find out which two specific investments look perfectly placed to make you a lot of money from it.
To claim your 30-day trial, get my 'cash-out company' recommendations, and my 'safety trend' report now, just click here.
Given everything I've told you in this letter, taking a look at my newsletter for the next 30 days should be one of the easiest decisions you make all year.
But you may be thinking...
What if it's Too Late to Make a Big
Difference to the Size of My Nest-Egg?
I want to be really clear about this:
It isn't too late.
No matter how old you are, or how soon you plan on retiring, acting decisively and positively now can make and save you tens of thousands of precious dollars in retirement income.
Don't just take my word for that.
Michael Drew is professor of finance at Griffith University in Brisbane. Earlier this year he gave a speech at the Conference of Major Superannuation Funds.
The Australian Financial Review quoted the following from his speech in a May 2nd article:
The fact is you may be less than ten years out from retirement... or less. You may even be retired already.
But it's EVEN MORE critical you make the right financial decisions now.
A 55-year-old has much more of his nest-egg at stake than some bloke in his thirties — and less time to react and make back losses if things go wrong.
Getting on the right side of powerful money trends now — even if you think it's too late— can really help you have a comfortable, worry-free retirement.
To take a 30-day no obligation look at The Money for Life Letter simply click here now and go to my 100% secure online order page.
Complete the short form on that page and I'll immediately send you an email with details on how to download issue one — containing my four 'cash out company' recommendations.
In the same email you'll receive a copy of my special report: '2 Safety Trend Investments to buy now'.
These two ideas alone could help you retire in much more comfort...without selling your house, shares or other possessions it's taken you years to accumulate. And you can make sure you won't be a burden to your kids in your later years.
Now you tell me:
What Would That Be Worth to You?
Look, I'm confident you can be tens of thousands of dollars better off every year because of my research — and that you'll be able to build a financial plan that will help you to retire without any money worries at all. I think you'll agree that's a pretty big deal.
That being said, when I first decided to write this newsletter I had no idea what to charge for an annual subscription to it.
All I knew is that I didn't want the cost of subscribing to put you off. I want you to get the first issue of The Money for Life Letter and benefit right away from my recommendations.
So, for all the insight, research and ideas I've laid out in this letter, and to get more of the same for a whole year I think $49 is a fair price.
The first issue and special report alone could set you and your family up for a lifetime of regular income. A subscription to The Money for Life Letter works out at just 13¢ a day.
That's everything you've heard about in this letter — plus more of my best money trend ideas every month for the next year — all for less than fifty bucks.
That's cheaper than a decent Christmas gift for a grandchild. Ironically, making the right financial decisions now could be the best present you ever give your grandkids.
Better than that, join today and $49 is all you'll ever pay for a subscription to my newsletter.
Sign up today and I'll make sure your membership is automatically renewed at $49 every year for as long as you want it. And if I do decide to put the price of an annual subscription up in future, it won't affect you.
I promise you: no financial newsletter in the country will beat $49 for a year's subscription.
And No One Will Work as Hard for You as I Will
Remember: unlike the fund managers in the big financial institutions, I won't be investing your money for you. I don't get paid on a commission basis. And I don't take a cut of any profits you make on the investments I recommend.
That means every cent you make from my advice can go straight into your retirement pot.
If my ideas help you make money, I'm hoping you'll stick with me. If you don't rate my advice, you'll cancel. That means our interests are completely in line, which is exactly the way it should be.
If you decide to stay on after your 30-day trial you'll get an issue of The Money for Life Letter every month over the next year.
Each issue will contain new ideas designed to keep your nest-egg safe and growing no matter what the Australian economy is doing.
I'll stay in touch between issues with a weekly email to update you on our strategy and to let you know of any new money trends I see on the horizon that you can turn to your advantage.
You have my word:
All of My Advice Will Be Easy To
Understand and Simple To Follow
This is not a newsletter for die-hard economists, clever-clogs traders or people who want to show off to their mates.
This is for concerned Australians who want to take quick action to get their financial plan back on track...and get their nest-egg growing again, so that they spend less time worrying about what life's going to be like when they retire.
I think that's really useful. I'm sure you will too. So why not see for yourself?
Download my first issue and special report today. To do that, just click here now. Complete the short form on the next page. Wait for my email with the information you need.
Take 30 days to review everything I send you.
If you don't believe my newsletter can help you retire rich, happy and free from money worries, call my member services team on 1300 66 7481 at any time in the next 30 days and cancel your trial subscription.
If you do this within 30 days, you can have your $49 back.
But I don't think you'll be cancelling once you see the potential of 'cash-out companies' to make you money for life...or when you realise how you could benefit by getting on the right side of the safety trend...or when you hear about some of the other retirement income and lifestyle strategies I'd like to share with you over the coming months.
You'll see: it's all to do with getting on the right side of money trends.
They are extremely powerful forces that make some people a lot of money, while keeping others permanently poor.
The key is knowing how to get on the right side of these trends. And that's easier than you think.
Over the next 12 months I can show you how to get on the right side of money trends and direct the flow of money to you rather than away from you.
If that appeals, you've got nothing to lose by checking out my research and ideas for the next 30 days. Just click here now to arrange your trial subscription to The Money for Life Letter.
Before I go, there's another trend to tell you about — and a really exciting idea to play it...
This one could really make the difference to your quality of life in retirement...make you immune to the rising cost of living in Australia...and make you feel like you're on a permanent holiday.
Many people dream of spending their retirement like this...but most think it's out of their reach.
In fact, most people think what I'm about to tell you is something only the rich and famous ever get to do. The reality is, the luxury lifestyle I'm about to show you costs less than you live on now.
First, let me tell you about the trend:
MONEY TREND 3: From The
'Lucky Country' to the 'Rip-Off Nation'
Like me you might think Australia is the best country on earth. But is Australia the best country to retire in? I'm not so sure. In the last ten years, Australia has become one of the most expensive countries on the planet.
The global credit bubble that began in the early 2000s created a huge money trend.
By that I mean borrowing money from banks suddenly got a whole lot easier...for anyone who wanted it. This borrowed cash made people feel richer than they were. It tempted them to borrow even more money...in some cases more than they could ever hope to pay back.
This prompted huge spending binges. Binges that created booms in resources, consumer goods and housing.
This huge flow of cash into the economy created a powerful money trend that pushed up prices for everyday things to unbelievable levels.
I guarantee you'll have noticed this trend.
You'll have noticed that your bills seem to go up every year. You'll have noticed taxes going up and rebates drying up...and less money in your pocket at the end of every month.
This is not an illusion. It's a powerful money trend. If you feel like you're being squeezed dry by price rises, it's because you ARE.
How the 'Rip-Off Nation' is Killing your retirement dreams
COST OF LIVING UP 40% IN A DECADE... Average Aussies have seen a rise in the cost of living of 39.6 per cent in the past 10 years, according to an August report from The Australian Bureau of Statistics.
POWER BILLS UP 40% IN FIVE YEARS... The average Aussie power bill has risen by 40 per cent in the past five years. Out of 91 countries surveyed by the Energy Users Association of Australia, household electricity prices in SA, NSW, Victoria and WA are in the top six most expensive worldwide.
HEALTH PREMIUMS UP MORE THAN RATE OF INFLATION EVERY YEAR SINCE 2000 In April 2012, health insurance premiums rose by an average of 5.06 per cent thanks to government rebate cuts.
WATER BILLS UP 9% IN FOUR YEARS... That's an average across the country based on figures from The National Water Commission. This is particularly shocking when you consider that Australian capital city water consumption has reduced by 25% since 2003.
INSURANCE PREMIUMS UP 68% IN LAST DECADE... the cost of insuring your car and home has jumped 68 per cent over the last 10 years, says the ABS.
FOOD BILLS — ADD ANOTHER $1,040... The average Sydney family grocery bill has hit $200 a week. If proposals to extend GST to food go through, already strapped families will be down another $1040 a year. And this is BEFORE food prices start reflecting the introduction of the carbon tax (see below).
HOUSING COMPLETELY UNAFFORDABLE... The 2012 Demographia study has Sydney as the 3rd and Melbourne as the 4th most expensive places to buy property IN THE WORLD relative to incomes. Adelaide, Perth and Brisbane make the top 20.
CARBON TAX TO COST YOU $514 A YEAR... The latest government tax grab includes a break for low earners. But anyone else will have to find around $9.90 per week to cover rising prices passed on by the businesses that are affected.
YOUR TAX BURDEN IS INCREASING... In the 1960s, if you worked from January 1st solely to pay your taxes, your bill would be paid by March 14th. Today your 'tax freedom day' is April 5th.
The cost of living in Australia is up 40% over the last ten years. Power bills are up by the same amount over the last FIVE years.
Health premiums, water bills, home and car insurance, food bills, housing costs — they're all up over the rate of inflation...and your tax burden has increased too.
The 'Lucky Country' has become the 'Rip-off Nation'.
Believe me; I know how easy it is to get wound up by this. My bills are going up too. But let me restate:
I have no doubt that you'll be able to live a very good life in retirement if you take some of the action I've shown you in this letter.
You won't run out of money. You won't need to sell anything. You'll be able to afford to pay your bills. You'll have cash coming in. You'll be able to make exciting plans — and execute them.
Anyway, here's the idea I promised you... an exciting way to get on the right side of the 'rip-off' trend and enjoy a luxury retirement where your money goes much further...
How to live like
a King in Your
Own Luxury
Overseas Hideaway
I've found a group of amazing retirement destinations around the world that are cheaper... healthier... safer... freer... than you ever thought possible.
In some of the countries I've been looking at you can live like royalty on a few bucks a day.
I'm not talking about third world states either.
I'm talking about modern, westernised countries with all the amenities you're used to...
Places where you can live legally and safely... real estate is dirt cheap, health care is either free or very affordable, and English is spoken...
You'll be amazed at how cheaply you can live in these places. Your money will go much further than it does in Australia. You really can live like a Lord on a servant's salary.
How to Escape the Rip-Off Nation
Revealed in your free report...
Paradise Bolthole 1:
The Subtropical
Gateway to Europe
•Small Mediterranean group of islands
•English is the main language spoken
•Subtropical climate with mild winters and warm to hot summers.
•Only a couple of hours flight from most major European capitals.
•Steeped in history that stretches back to pre-biblical times
•The IMF considers it one of the 32 advanced economies of the world
•You can buy your retirement pad for a half or even a third of the cost of the same property in Sydney and Melbourne
•There's no double taxation thanks to a tax Agreement with the ATO
•It has the fifth best healthcare system in the world according to the WHO
•You can enjoy a draught beer on tap for $2.70 a pot — or schooner if you prefer
Paradise Bolthole 2:
The South East Asian Idyll
Where the Swiss Go To Hide
•Just 12 hours from Melbourne.
•Prices are around 65% lower here than in the Victorian capital.
•There's lots of Swiss expats here too. That speaks volumes.
•A Tropical climate — wet and dry seasons, temperatures around the high 20s / low 30s all year round
•All the convenience of a modern city, including a great transport infrastructure
•Low Monthly rentals — a one-bedroom apartment costs as little as $220/pcm
•Low energy bills — expect to pay between $6–$30 per month for electricity
•World-class food at economy class prices. A three course meal for two in a top restaurant costs as little as $13.75.
•Respect in your new community — this is a country that holds senior citizens in extremely high esteem.
Paradise Bolthole 3:
The Central American Eden
where you can have it all
•One of the most beautiful, unspoiled and friendliest parts of the world
•Choice of spectacular mountains, high plains, jungle, or coastal settings
•Coastal lowlands in the west of the country have a tropical climate with average daily temps of around 25 Celsius — all year round!
•Some of the friendliest and most welcoming locals anywhere in the world
•Pocket change property: buy a beachfront condo for $60,000, with a spectacular view of the crashing Pacific
•You don't need to be a resident to own property
•World-class healthcare at a fraction of the costs back home — along with doctors trained in the US who speak English
•Dinner out for $2.50...and a beer for 85¢!
Let me be clear: this is not about kissing goodbye to Australia for good. You don't have to make an overseas home your full-time base.
I want to show you how you can escape to an affordable luxury property somewhere warm and relaxing for a few months of the year when you fancy a little care-free living.
Can You Picture
a Luxury
Retirement in the Sunshine?
Somewhere you can lie on the beach with a good book...take in amazing scenery...sample exotic cuisine...but still enjoy access to modern conveniences and affordable healthcare — all without putting a serious dent in your nest-egg.
This is what I've found for you.
I've created a shortlist of what I think are the three best paradise boltholes for Aussie retirees.
I'll say again: you don't have to relocate permanently. But you certainly can escape there for a few months of every year when you feel like living the good life for a while.
You'll find details of my three top retirement retreats in a second report I'll send you with your trial subscription of The Money for Life Letter.
It's called: 'Retire Overseas with Ease: 3 paradise boltholes where Aussies can live like a king on the cheap'.
Have a read and you'll see that a luxury retirement lifestyle isn't out of your reach by any means.
Look, I know it's not for everyone.
But if you've ever thought about spending time overseas in retirement and you want some ideas...or even if you're curious to see how your retirement dollars could stretch to this kind of lifestyle...you'll really enjoy my report (see right for more details)
It's yours — with no charge — when you take a 30-day no obligation trial subscription of The Money for Life Letter.
I really hope you decide to take a look at my brand new newsletter for the next 30 days. I think my ideas can help you pay for and enjoy the retirement you want.
My strategies and suggestions won't shred your wallet or your nerves.
You won't be bored to tears. You'll be fired up to act.
And you can start generating cash right away using money you have now.... Just by jumping on the three money trends I've told you about in this letter.
The alternative is to keep doing what you're doing. If that's your choice, you may struggle.
'Nick – I really enjoy your less conventional view on the world, and find it rather useful. I have been planning my retirement for some time and hope to be able to do with in the next 3–4 years. I have a short list of places I've been looking at as a retirement escape residence (I'll only be 40 by then, so lots of time to live) and can't wait to see where you have on your list. All new ideas are always worth further investigation'
— Chris
It's 'Game Over' for the Traditional Australian Idea of Retirement
Once upon a time, you could get a good job with a big firm straight out of school. You'd work hard for 40 years, then sit back and collect your pension for as long as you needed it. This doesn't happen anymore.
Then came the idea that your retirement could be paid for by rising share prices that you cash-in on the day you quit work. Your windfall would pay for every day of your long, happy retirement. This doesn't happen either.
It's an illusion peddled by the major financial institutions in this country. And it's going to hit many Australian seniors really hard...when they've run out of time to do anything about it.
The truth is, in 2012, you need to plan for a future in which you'll need a nest egg of around a million dollars just to preserve your current standard of living.
And that's just the situation today. When you come to retire you may find you need even more money. Australians are living longer than ever before. Thirty and even forty year retirements could become commonplace.
The idea that you could outlive your money is a very real, and very worrying, prospect.
That's why it's crucial you make the right decisions now. Remember, every day you put this off is a day where the value of your nest egg is sliding backwards.
Look, I know the picture can be confusing. I hope to simplify things for you and bring a bit of clarity and common sense to retirement planning.
Me on stage in Sydney
banging the drum for change
I put the exact same case I've made to you today to 250 sophisticated investors at a conference in Sydney in March this year. Here is a picture of me on stage telling the room about 'cash-out companies' (right)
I explained it all to them in the same way I've set everything out for you in this letter.
At the end I asked the room how many would be interested in paying for the results of my research.
Nearly everyone raised their hand.
I promise you I'll work hard for you. You don't have to be an experienced investor to know that a lot is at stake in the next few years.
Remember: to make money for life you need to swim with the current, not against it. Right now you're most likely swimming against it. But it's not too difficult to change direction.
My ideas can help make a difference quickly. And I genuinely believe this will be better for you than leaving things as they are. I hope you'll give me the benefit of the doubt on this and take a look at my newsletter for the next 30 days. For $50 bucks, it's not much of a risk.
That's the best I can do. Now it's up to you.
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Sincerely,
Nick Hubble, Editor
The Money for Life Letter
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Calculating Your Future Returns: The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you've invested. While useful for detecting patterns the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. All advice is general advice and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment. All figures accurate as of 22nd October 2012.
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SMSI 12th Oct.
Within about 6 months I'd made good gains on some stocks, but taken a few big hits on some speculative punts. In reality, everything I was doing was speculation. My 'analysis' was amateurish and overall I was losing money, money I had to pay back in full.
This in turn made me lose discipline. I woke each day and wondered what 'the market' was doing. If it was going up I felt the need to 'get on board'. I would constantly assess my holdings and question why some weren't moving with the market.
Emotionally I wanted to pick the momentum stocks but rationally I knew this wasn't the way to manage capital. But when you're losing money, emotions over ride rational thought.
The bottom line was I didn't have a strategy. The market is a punishing beast, and it was in the process of handing me a very important lesson.
This from John Stuart Mill in 1844:
'The usual effect of the attempts of governments to encourage consumption is merely to prevent saving; that is to promote unproductive consumption at the expense of reproductive, and diminish the national wealth by the very means that were intended to increase it. What a country wants to make it richer is never consumption, but production. Where there is the latter, we may be sure there is no want of the former.'
And where there isn't the latter - no savings, no capital formation, no productive investment -
there won't be any of the former either. That's why wages are not rising... household incomes
are dead in the water over a 20-year period... and real consumption by the middle classes (as
opposed to those who get the Fed's counterfeit money) is going down.
Regards,
Peter & Ann,
I thought you might appreciate an update on developments with James:
James is interested in purchasing 45% of the business for $135,000 as soon as practical;
this values the original $111 of shares in the business at $300,000 ($40,000 more than
Dillon’s valuation).
(This doesn’t affect the business at all, i.e. all assets and liabilities remain as is) So we are
full steam ahead from here. We intend to have most paperwork sorted out by 5th January,
James will seek independent legal and accounting advice in January and hopefully we can
finalise things by end of January and Have James booked for training in February or there
about.
Rather than a try before you buy concept, we will provide an easy out clause for both parties,
which can be taken up in the 3-6 month period.
I have e-mailed Kate Groom to begin the process with SWA, as it is possible that they will be
obstructive. (I copied you in on the e-mail)
James’ hopes (not expectations) are that he will earn $52,000 + car by the second year and
$70,000 to $80,000 per year by the 5th year. He expects to work more than 50 hours per
week in the first year or two. I see this as very conservative and he should not be
disappointed. He does recognise there is risk and he could lose everything, albeit unlikely.
Between now and Christmas, we need to:
Fix the current shareholdings to represent 45/45/5/5 as Sotherton’s did these wrongly
at the beginning.
Investigate share types (can James have a different share type to allow flexibility in
dividend payments?)
Have a rental agreement in place – Hay Property consultants have all our property
details and should be able to provide us with a market rental valuation for a minimal
fee.
Have loan agreements in place tying the interest to advertised rates + (?)% with 6
monthly reviews. Do you want to take a “Charge” over the business?
Finalise a first draft of a shareholders agreement.
This has all been discussed with James.
James will supply me with a proper resume and references and I will probably have
someone else formally interview him. Signwave will do a “Personality Profile” and share the
results with us. He will also supply us with bank statements showing his financial position
and stability. He is aware that at some stage CAPL will replace the roof and the business
may be disrupted.
We must consider what happens in the event of Death or permanent disability of ANY of the
shareholders. It is not critical to have this set-up before James joins us, but we should
expedite this for both stores anyhow.
Interesting to note: with this set-up both Aaron and James would benefit significantly from
my death!
In the event of Death or Disability of:
Leo: Insurance benefits for Christine, Peter & Ann should be sufficient to
enable all shares to be passed to James.
James: Insurance for Ainslie should be sufficient to enable all shares to be
passed to the remaining shareholders
Christine: Shares pass to Leo
Ann Shares pass to Peter?
Peter Shares pass to Ann?
Peter & Ann Now that Christine and I will be minority shareholders, we feel it is
important that the ownership of your shares and units in the property trust
etc. are not left in limbo and are transferred to Christine. We would expect
the value of these should be deducted from any other benefits Christine
may get from the estate, or, do you want the Business to take out some
form of insurance to facilitate this. Obviously any outstanding loans to the
business/es will need to be repaid to the estate; however, it will be
desirable to have a short time (say 3 months or so) to enable us to
facilitate this.