FINAL: How to PLAN for the coming BUST in the B-B-B Cycle
Written on the 2 November 2016 by James Cagney
In this article we deal with the last two STEPS in our Strategy to SURVIVE & THRIVE in the coming BUST in the BOOM-BUBBLE-BUST Cycle. Please resist the temptation to only read this step and skip STEP 1 to 4 below. Effective Goal Setting is not a an easy exercise and what you get out of doing it right far exceeds what you put into it at the start. If you have heard the saying "Dream On" that is how effective they will be without the proper procedure for effective goal setting!
Thomas Edison, one of the greatest inventors and entrepreneurs of all time said "Discontent is the first necessity of progress". As an inventor he was never happy with the status quo. That discontent within him drove him to achieve a legacy. With goal setting it is being "Unsatisfied" rather than being "Disatisfied" with your current circumstances. "Unstatisfied" implies you want to achieve more and more whereas "Disatisfied" implies you are unhappy and miserable. We do need to have an "Attitude of Gratitude" for what we have in life. Look for things you need to be grateful for and give thanks. It will change your perspective in life. So let's look at the goal setting procedure:
1) Where are you NOW?: Click >>> FIRST to access this step
5) Can we AFFORD it?: See below:
An important fact I learned is that "Free advice is worth as much as you pay for it - NOTHING". Knowing this we still hate putting our hands in our pockets to pay for GOOD advice. When it does come to financial advice I would highly recommend you pay for it upfront. I say this because the person you get the advice from has a moral and ethical responsibility to give you the correct advice rather than trying to persuade you to buy their services so they can earn some commission. The professionals within the Australian Investment Property Network" (AIPN) abide by a code of practice designed to put the client first.
Any local real estate agent is going to try and sell you what they have on their agency books. Most of the agents are exceptionally skilled at building a credible story around the property to make it sound like a good investment. Do your independent research do not accept as fact anything which you cannot verify. I have written an article about the games real estate agents play which is definitely worth reading so click >>> SMARTER if you want to beat them at their own game.
People do not like paying mortgage broker fees and, as a result, end up paying the bank thousands of dollars more in interest and fees. Think about it:
It is no secret that the Banks are a law unto themselves in Australia. The Opposition Labour Party has called for a Royal Commission into the conduct of the banks and the banks are so relieved that Malcolm Turnbull's government will not agree to this. They need to be exposed for the scoundrels they are and I wrote an article about this click >>> Bank executives caught with their hand in the Cookie Jar . You must read this! It is a mystery that even though people know that the banks are 'conning' them they still march down with the rest of the herd to the bank for the biggest debt they will take on in their lives. They then struggle to pay the loan off within 30 years, paying almost double the amount of the initial loan in interest payments.
Armed with this knowledge - surely we would rather pay an independent mortgage broker to source a loan which is most appropriate for your personal circumstances and not the loan that benefits only the banks; a mortgage which will save you interest over the life time of the loan and allow you to have the opportunity to pay off your property sooner. I have written an eBook on this subject that you should read. Do not make the banks rich at your expense.
If you are thinking of investing in the safest asset to hold in the coming BUST of the BOOM-BUBBLE-BUST Cycle it is even more important that you read my eBook. Please click >>> BEAT THE BANKS now. James Cagney is a credit representative of Asset Finance Services Pty Ltd and is happy to help you to source the most appropriate loan for your personal circumstances. Give him a call on 0416 137 645 or click >>> HERE.
When it comes to financial advice please pay a professional for their advice. They are experts in their field and they are by law required to constantly update their knowledge. It costs them money to do this so why would they give you free advice unless they believe that you are gullible enough to do whatever they say. I visit people in their homes to discuss their financial goals and I am appalled at the advice some people have taken on board because they felt obligated to do so because they did not pay a consultation fee. Some people have even been persuaded to change their Superannuation Fund Companies only to find that the new Super Fund has performed even more poorly than their previous fund. Of course the Financial Planner made money when they switched your Fund Managers and it is hard to prove negligence because markets are unpredictable.
I often ask my clients if they have shares and most say they may have a few but do not want to invest any more money because of the volatility in the market. However most of them do not realise, or refuse to admit, that they are actually heavily committed in the share market through their Superannuation Funds. This always comes as a shock and it is hard to understand why they are not aware of this fact. I put it down to something they don't want to think about because it makes their future look insecure. Most people do not want to think about the future if the future looks uncertain and bleak. Human nature is a strange phenomenon.
Often I find that people who have lost money through the "bad advice", or worse still "no advice" now have this built-in suspicion of all financial planners and mortgage brokers. They should have paid for advice and gone and done their own research thereafter to verify the information - but it is much easier to blame someone else. No personal accountability felt at all! The Australian Investment property Network have financial planners who are committed to giving advice that is in the best interests of the client. Call James Cagney on 0416 137 645 or click >>> HERE for a professional you can contact in this regard.
Many of my clients are tired of the Superannuation Funds taking their money and performing badly. Last year Super Funds took over $35 billion dollars in fees for their services. Think about it they don't have to perform and show good returns they simply have to hold your money. Which one of you would like a very well paid job for looking after money without having to prove performance? We all would! Therefore the number of angry and discontented people forming Self-Managed Super Funds is increasing year upon year. These are people who want to be captain of their own ship rather a passenger on a large ocean liner. I wrote an article about these Super Funds comparing them to the plight of the TITANIC. Please read my article about this if you want to be in charge of your own destiny click >>> SUPER CON.
When it comes to setting up a Self managed Super Fund (SMSF) do not try and skimp on setting up the correct structure. There are on-line services which people go to save money but these standard formats may not suit your individual circumstances or you financial strategy. Pay a financial planner to do this for you - someone who has your end goal in mind. It is far more expensive if you have to change the structure after you have made an investment or property purchase. The Australian Investment Property Network (AIPN) can refer you to a professional financial planner who is obliged to abide by the code of conduct and consider your personal circumstances. Call James Cagney on 0416 137 645 or click >>> HERE.
Many people chose an accountant because they do their income tax returns on the cheap. Worse still they chose a family member or friend and end up at the back of the queue at tax time. The universal rule is "You cannot pay a little and expect a lot". You do not have to go to the large accountanting companies and pay a fortune because there is nothing wrong with the service provided by the accountants who work out of some of the franchise offices like H.R Block. Interview the accountant to find out how much they know about investments and tax rebates. Do not chose one whose claim to fame is getting you sunglasses and sun block as a tax rebate! When you decide on an accountant remember who is the boss - YOU. Do not allow them to dictate to when you should claim your tax rebate on your investment property.
You can claim your tax rebate every time you are paid by your employer. This is your cash flow so you have the option expand your property portfolio. Otherwise you can't afford this because the shortfall is coming out of your pocket all the time. So many accountants can't be bothered to do submit a Tax Variation form to the ATO and tell you to claim it at the end of the year. Now this may be a nice windfall to buy Christmas presents or money to go on holiday but in my opinion that is not what you should be using your tax rebate for. Use your tax rebate to increase your wealth and not for self-indulgent short-lasting pleasure. If you can't afford to go on holiday stay home. If you can't afford Christmas presents advise everybody in advance and ask them to skip you this year. I know this sounds harsh but you are going to have the longest holiday ever when you retire. Twenty years of looking at four walls because you can't afford holidays is not fun. Rather invest now so you can enjoy life for many years to come. We have a number of professional and knowledgeable accountants within the Australian Investment Property Network (AIPN) . Contact James Cagney on 0416 137 645 or click >>> HERE for more information.
Let's talk about paying Solicitors for advice - perish the thought. Once again I find people neglect to get good legal advice when it comes to their personal finances. I am staggered by the numbers of people I call on who do not have a Will or have just have a very outdated Will. I need to be very direct here: Do you ever think before you get into your motor car every day "I could die today" ? I bet you don't. However there is a distinct possibility this could happen. We tend to think we are immortal and nothing will happen to us. We do not prepare for a sudden parting and we leave our loved ones behind with a huge financial mess to clean up. What happens if you are incapacitated and you have no 'Enduring power of attorney" in place. How will your spouse or family access your records and pay your bills. Do you have a Personal Register detailing all your personal details, assets and liabilities documented so that your family can access this in the event of your untimely death:
I know the above may sound morbid and something you do not want to think about because it is unpleasant but you must be prudent by planning. Your demise may be tomorrow although you want to enjoy many more years in this world. James Cagney can help you through these important questions and he will help you document this information. Give him a call on 0416 137 645 or click >>> HERE. Don't expect James to beat about the bush. What you need is straight talk and sound advice as this is an important document and you owe it to those loved ones left behind to have your affairs in order.
I trust this series on on Spending Trends, Demographic Tends and Planning for your Financial Future has been of benefit to you. Of course, you can chose to ignore my advice about the coming BUST in the BOOM-BUBBLE-BUST Cycle. William Ewart Gladstone was a British Liberal politician and in a career lasting over sixty years, he served as Prime Minister of the United Kingdom four separate times, more than any other person, and served as Chancellor of the Exchequer four times. William Gladstone first entered Parliament in 1832 and was also Britain's oldest Prime Minister; he resigned for the final time when he was 84 years old. Therefore you could be right in assuming that he was a very wise man. William Gladstone said "Swimming for life, a man does not see much of the country through which the river winds". Many people will be swimming for their lives in the coming BUST and life will be very stressful. Please make sure that this is not you. For those who choose to take action James is very willing to help you. Please give him a call on 0416 137 645 or Click >>> HERE.
This is not financial advice. You should not act solely on the basis of the material contained in this Property Update for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
This information was written and compiled by James Cagney. The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Author: James Cagney