Cornerstone Wealth - Financial Planning and Investment Advice

2012 Federal Budget Overview

admin — Wed, 16 May 2012 16:00:39 +0000

Gavin Martin, financial adviser and Managing Director of Cornerstone Wealth discusses the 2012 may Federal Budger with Neil Johnson of the Vision Radio 20Twenty program.

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Eligible Spouse Contribution

admin — Wed, 16 May 2012 15:08:08 +0000

You may be entitled to a tax offset of up to $540 (maximum) each financial year if:

you make a super contribution to your spouses super of $3,000 for maximum benefit
you did not claim a tax deduction for the contributions
you and your spouse are both Australian residents
the contribution is made to a complying super fund

18% tax offset on first $3,000 of contributions for a spouse with income* of less than $10,800 pa.

The tax-offset reduces by $1 for each dollar of income above $10,800 and ceases at $13,800 (plus fringe benefits).

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034 Your Money Your Life – Rent vs Buy, Goal Setting and Should I start a Self Managed Super Fund

admin — Mon, 07 May 2012 15:20:23 +0000

In this episode Gavin Martin, Financial Adviser / Financial Planner, discusses:

Renting vs Buying
Goal Setting
Should I start a Self Managed Super Fund (SMSF)
How to Transition to Retirement

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

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Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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Getting your finances in order can help you loose weight

admin — Thu, 22 Mar 2012 03:04:15 +0000

Gavin Martin, financial adviser and Managing Director of Cornerstone
Wealth discuss getting your finances in order on the flow on effects that can have on your life including the potential of loosing weight.

View full transcript show

Well last time that we were talking to Gavin all about finance we discussed the idea that having your finances in order actually affect your whole life Gavin Martin is the founder and managing director of cornerstone wealth joins us once again hi Gavin welcome back to 20/twenty, good day Neil great to be with you again, Gavin last time when we were talking about this we didn’t have time to really get into it but what you were saying is so much good sense and from a Christian perspective just goes show what all of that biblical wisdom about finances actually remains that if you get your house in order so many other good things come into place. Exactly it’s so related that if we get one area of our lives sorted out then it impacts many other areas and finances just so much across every facet of life that if we get our finances so if we paid down over hanging credit card debt or paid down that personal loan or even pay off the mortgage how amazing would that be, then it can motivate us and give us the I guess the boost to actually tackle other areas and not only takes pressure off but it also enable to pressure other areas of our lives and one of the key one is that one of the weight lose here. Let’s talk about that because I remember we were going to lunch we didn’t have time at tell us the story of a fellow America who were was really able to apply good common sense positive undertaking to lose weight because he’s got his financial in order, exactly he went to the scenario where as a very young person his early twenties he went through the whole property investment thing and used a lot of debt to investing property and then he had I think uses shorter term alone to do introduce launch got call in and he went bankrupted he lost everything he had a lot of debt to repay and that whole journey was traumatic time for him in his wife a young family I think at the time, but then he built his way back up and having had that experience is then decided to help others to avoid that and get out of that sort of debt written scenario and he’s gone to the point where he’s now in a very successful business and you he had a radio programs and tv programs and party’s of his journey is that as he’s paid off debt and got his finances in order he’s also gone through the journey of losing weight as well and I think he’s running his first marathon a few years ago and I guess it is so inter-related that he talks about that often on his program with the people that call in that’s and he’s able to see the outcomes of getting your in order really impacting how people then are able to lived healthy lived as well. I guess in the context of what we’re talking about last time when we raise this the idea of having a effective family budget meant that if you wear your finances coming probably about what going you had some control and then you are able to do the things with a huge level of confidence but you wouldn’t be able to do before, I think last time we we’re able to mentioned that it might even involved a bit sacrifice in terms of family and it might mean you need to do those extra hours might be spending much time with the kids that you would like too, but if it’s for a short intense period and it gets you out of that debt burden it can be well worthwhile and in that go free you up and to be out of debt and be able spend time with the kids, be able to be more generous to those people around or to the church because you’ve not in that burden of debt or tough finances, and so yes it is all related. It sort of relate so much in all areas of your life doesn’t it because the means can picked up the house that means he might be able to afford a new car it just take you from strength to strength if you’ve got your finances in order there’s all sorts of possibilities to your life, exactly for yourself for your family and then others as well. And of course the ability to be generous on the every occasion that you’re out because we’re talking about a biblical principle here that God is going to bring blessings to those who are generous that they can generous on every occasion and you know so many times people sometime feel guilty because when on and in special occasion offering or a charity that in need but you don’t enough to give and you almost feel guilty but to be able and say yes I’m budgeted I know I can give this it certainly is going to do a lot for your capacity to be generous. Yes and I guess if you tie in the biblical principle that it’s more blessed to give than receive and the blessings that we get from giving you know the ramifications of that significant as well that were rewarded for that if not right here or now but might not be rewarded here for now but I guess eternity as well. Gavin back to the attitude that we ought to have towards money when it comes to being a Christian having a biblical attitude towards money it is a positive thing and it is an exciting thing it is not necessarily what some people seem to think that it’s like an extra weight around your neck and needing to be a good stewards or a person who a give tithe or offering in a local church but this is really exciting stuff isn’t it so they could have been sort of effect on your life with your finances are in order. I think the world liberating explains it to a large degree as you get your finances under control as you reduce the debt Luke and I stopped using my credit cards and start using it debit card instead it give me that so much more control and in so much liberating you are able to get a grasp of things you are able to keep things in order and it does having an amazing impact when we do and conducting our finances in a biblical way, and of course you know if people were having their finances in order and if everybody was able to tithes and be generous giver in their local church there wouldn’t be any lack of the church would be? Now exactly I’m not sure the exact stat here in Australia but the level of giving across the U.S and Australia it’s incredible and if we actually just did the basic of that trading wheels of giving of ten percent what we earned, then the church would be so much more resource and we could help more people. Well Gavin it’s always a pleasure talking about these sort of things with you founder and managing director of cornerstone wealth there’ll be a link to the cornerstone wealth websites on our site at vision.org.au look for the 20/twenty link and you will find Gavin’s websites, Gavin it’s always a pleasure thanks for talking to us today on 20/twenty, thank you Neil great to be with you.

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Minimum pension payments reduced by 25% for 2011/2012 and 2012/2013 years

admin — Wed, 21 Mar 2012 23:22:07 +0000

The Government has announced that pension payment relief will be available for the 2012/2013 year as well as for the 2011/2012 financial year. See the table below for actual figures.

The minimum pension payments will return to normal from the 2013/2014 financial year.

Minimum annual pension (income stream) payments
	Regular Percentage factors	Temporary relief
		2011/2012 and 2012/13 years	2010/2011 year
Age
55-64	4%	3%	2%
65-74	5%	3.75%	2.5%
75-79	6%	4.5%	3%
80-84	7%	5.25%	3.5%
85-89	9%	6.75%	4.5%
90-94	11%	8.25%	5.5%
95 or older	14%	10.5%	7%

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How much can I withdraw as a lump sum from my superannuation fund when under 60 years of age?

admin — Thu, 23 Feb 2012 13:08:50 +0000

Gavin Martin of Cornerstone Wealth answers the question:

“I am 58 years old this year. I will cease full time work mid year and would like to access my superannuation balance of approximately $200k in order to pay off the mortgage on an investment property. What percentage could I withdraw as a lump sum?”

Disclaimer

This information does not constitute financial product advice as it does not take into account your personal circumstances. Therefore you should not make any financial decision based on this information. You should consider obtaining independent advice before making any financial decisions.

View full transcript show

Hi I’m Gavin Martin, and today I’m going to answer a question about withdrawing a lump sum from your superannuation balance, under the age of 60, before I do it is important to acknowledge that this information does not constitute financial product advice as it does not take into account your personal circumstances. Therefore you should not make any financial decision based on this information. You should consider obtaining independent advice before making any financial decisions.

So the question I’m addressing today is, I am 58 years of age this year, I will cease full time work mid year and would like to access my superannuation balance of approximately $200k in order to pay off the mortgage on an investment property. What percentage could I withdraw as a lump sum?

Firstly you need to understand if you have reached your preservation age. If you are born before 1st July 1960 you have a preservation age of 55 years of age, so someone currently in 2012 who is 58 they were born before 1960 and therefore have reached their preservation age.

The second thing that you need to do is understand if you have satisfied a condition of release. For somebody under the 60 years of age, when they cease full time employment and declare that they did not intend to return to the workforce that satisfies a condition of release.

So the next question is if you have reached your preservation age and satisfied a condition of release and are under 60 years of age, how much can I withdraw from superannuation?

Well it is a very simple answer, you can withdraw as much as you like but there are possible tax implications, so we’re going to, in the remainder of the session deal with the tax implications of withdrawing lump sum balances from your superannuation under the age of 60.

So how do you work out how much tax is payable on a lump sum withdrawal from superannuation when less than 60 years of age?

Well it depends on the lifetime limit of that financial year and the tax components of the fund.

So what is the lifetime withdrawal limit for lump sum superannuation withdrawals when under 60 years of age?

Well during the 2011/12 financial year the lifetime withdrawal limit is $165,000.

So a lump sum withdrawal less than $165,000 is likely to be totally tax free. That’s a lifetime limit, so if you have made other lump sum withdrawals before this one then you need to add those to that balances as well. The $165,000 only applies to the taxable components because the other components come to you tax free.

The other thing to note is that the $165,000 lifetime limit is generally indexed up each financial year in $5,000 increments. So next financial year it might be a $170,000 I’m not sure of that figure as yet, they announce it each year.

So if I withdraw more than $165,000 from my super when under 60 year of age, how much tax will I pay? That’s the next question isn’t it? Well it depends on the tax components of your fund. So tax free components come to you tax free, you don’t pay tax in it. But taxable components under the lifetime limit, they come to you tax free as well as we just talk about will during the 2011/12 that lifetime is a $165, 000. But the amounts over the $165,000 over that lifetime limit are taxed at 16.5%.

How do you work what your taxed and tax free component are?

Most funds these days have online access and you can check out both what your preservation details are and what your tax components are. If we look here with this particular online statement, what I have asked for is the benefit quote. So they’re quoting me what the details of my funds are if I try to withdraw them.

Here we’ve got a preserved amount of $1,000. That means that I can actually withdraw the money, if I got some unrestricted non-preserved money then I can actually withdraw. This is what we are talking about with reaching your preservation age and satisfying a condition of release. What would happen is that your fund would moved from being preserved and restricted non-preserved to unrestricted non-preserved which means you can then withdraw lump sums. That’s really talking about your preservation age and condition of released that we’ve already addressed.

What I’m wanting to explain here now is the tax components of the fund, so we are assuming that the fund, the super fund that we’re dealing with here is a taxed fund, now there are some fund that are untaxed we are not dealing with that question at all. So if your fund is a taxed fund, generally your balance is made up of two components and here the tax, sorry the balance of a $1,000 is made up of all taxed components, a $1,000 of taxed components, now you might have some of a tax free components from contribution that you made to your fund personal contribution or you have made, may have made, a $1,000 government co-contribution as well, so you may have put $1,000 in to try and get $1,000 from the government under the co-contribution scheme. You might have some tax free components in there as well.

To understand how much tax you pay on withdrawal you need to know what the components are; taxed versus tax free. We are going to walk through a couple of different example of that.

Example 1

We have got a $200,000 balance in our superannuation fund and the tax components are, tax free amount of $35,000 taxable component of a $165,000. So because the taxable component does not exceed the lifetime limit of $165,000 no tax is payable on the lump sum withdrawal. Pretty simple. Because you do not pay any tax on these tax free components and the taxable component does not exceed the lifetime limit there is no tax payable in this example.

Example 2

We’ve got different components. We have got no tax free component in our $200,000 balance this time around. We have got taxable components of $200,000 so in this case we have exceeded, because the taxable components exceeded the lifetime limit of $165,000 by $35,000, then tax of $5,775 which is 16.5% of a $35,000 exceeded amount, is payable on the lump sum withdrawal. Your net benefit is of withdrawing of $200,000 in this scenario is a $194,225 because we have paid that $5,775 in tax on withdrawal.

Example 3

Let’s look at our final example, so example 3 is where we have got a $200,000 balance again but the tax free component is $16, 500 and the taxable component is $183,500. Because the taxable component exceeds the lifetime limit of $165,000 by $18,500, then the tax payable in withdrawal of the full $200,000 is $3,052.50 (i.e. 16.5% of $18,500). The resulting benefit is $196,947.50 rather than the full $200,000. In this scenario we could actually do potentially do some other things to get that full $200,000 without paying the $3,052.50 in tax. Let’s look at this alternate strategy.

Example 3 Alternate Strategy

We have got the same components $200,000, $16,500 tax free and $183,500 taxable component

What we could do if we had a low or no taxable income is we could commence a pension with the full $200,000 and withdraw $20,000 from it, so we could withdraw a pension of $20,000. Now that $20,000 if we have got a low or no taxable income should come to us tax free, so what we end up with under this scenario is $180,000 in our superannuation fund or a pension fund, and we have got $20,000 in our bank account that we haven’t had to pay tax on and the components are because the components are drawn down in equal proportion, tax free component of $15,000 and the taxable component of $165,000 bringing us to the total amount of $180,000.

Now if you withdraw a lump sum amount of the $180,000 because the taxable component does not exceed the lifetime limit of $165,000 no tax is payable on this remaining lump sum withdrawal of $180,000 resulting in a full benefit of $200,000. We have done it in two different ways. We have withdrawn $20,000 in the form of a pension because we have got a low taxable income. We don’t pay tax on that. We have done the lump sum withdrawal of $180,000 and stayed under the lifetime limit of $165,000. We have been able to access the full $200,000 without paying any tax.

The other way to insure that you don’t pay tax on lump sum withdrawals is you could wait until you turn 60 years of age because withdrawals at that stage are also not taxable at all.

There’s the answer to your question. Sounds like a simple question but there are some implications depending on what particular scenario is.

If you have a question yourself, a financial question, then I would really love it if you called in. If you are with Australia call 1300 275 428 and leave a voice mail that I’ll answer for you either via the video, similar to this, or by my podcast. If you are outside of Australia and you’ve got a financial question then you need to call our country code +61 39642 2268 select option 1 again, leave a voice mail question and I’ll answer it as part of a podcast and/or a video.

If you want other information then feel free to go on my website www.cornerstonewealth.com.au

I hope that it really helps you.

Other links

When can you access your Superannuation?

How can you access your Superannuation?

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033 Your Money Your Life – Mini Federal Budget Nov 2011 and Withdrawing funds from super to invest in property

admin — Wed, 30 Nov 2011 14:39:38 +0000

In this episode Gavin Martin, Financial Adviser / Financial Planner, explains the personal finance and superannuation announcements the Federal Government made as part of the Mid-Year Economic and Fiscal Outlook (MYEFO) that has been termed a Mini-Budget due to the range of cut backs. The discussion, includes:

Extension of draw down relief for super pensions – The Government has announced it intends to extend the 25% drawdown relief for the 2012/13 year.
Low income superannuation contribution – The Government has previously announced and introduced legislation to effectively provide a refund of 15% contributions tax for low income earners from 1 July 2012. Taxpayers with adjusted taxable income of up to $37,000 will receive a low income superannuation contribution (LISC) up to a maximum of $500. The Government intends to simplify the process for eligible individuals.
Superannuation co-contribution – The Government intends to reduce the matching rate and maximum payment for the superannuation co-contribution from 1 July 2012. This coincides with the commencement of the LISC. The co-contribution will reduce from $1,000 to $500. The matching rates remains at $1 for $1, however, eligibility for the co-contribution cuts out at $46,920. Currently the cut out threshold is $61,920.
Abolition of age limit for Superannuation Guarantee contributions – Currently, employers are not required to make Superannuation Guarantee payments for employees age 70 and over. From 1 July 2013, employers will be required to make Superannuation Guarantee contributions for eligible employees aged 70 or older. Other existing exemptions from paying Superannuation Guarantee contributions will continue to apply, such as an employee earning less than $450 per month.
Pause on concessional contribution indexation – The Government will pause the indexation of the concessional contribution cap (currently $25,000) for one year in 2013/14. It is expected that the concessional contribution cap will be indexed from 2014/15, increasing to $30,000. This also means the Non Concessional Contributions will not be indexed as it is six times the concessional contribution cap.
Self Managed Superannuation Fund Trust deed clauses - Currently, some trust deeds include a clause which treats amounts that would otherwise be a contribution as not being accepted if that amount would lead to a breach of the contribution cap. Under the proposal, a fund will be deemed to have accepted the contribution if the contribution has not been promptly returned and effectively been intermingled with other fund assets. This is designed to ensure that such clauses are ineffective and penalty contribution tax payable.
Dependent spouse tax offset - Effective from 1 July 2012, the Government will phase out the dependent spouse tax offset (DSTO) for taxpayers with a dependent spouse born on or after 1 July 1952. The original phase out was for taxpayers with a dependent spouse born on or after 1 July 1971.
Deferral of tax reforms – The commencement of the standard $500 pa work related expenses from 1 July 2012 will be deferred until 1 July 2013 and the standard $1,000 pa work related expenses that were to commence on 1 July 2013 will now not start until 1 July 2014.

The commencement of the standard $500 pa work related expenses from 1 July 2012 will be deferred until 1 July 2013 and the standard $1,000 pa work related expenses that were to commence on 1 July 2013 will now not start until 1 July 2014.
The 50% discount for interest income will be deferred until 1 July 2013
The commencement of the phase down of the interest withholding tax for financial institutions will be deferred until 2014/15.

Car fringe benefit rules – In the Federal Budget the Government announced a transitional period to move from multiple statutory rates to a single flat rate of 20% when determining the taxable value of car fringe benefits. This announcement will be modified to allow employers to elect to apply the 20% flat rate immediately rather than apply the transitional rules. This measure only applies to new contracts.
Pause on Baby Bonus indexation – From 1 July 2012, the Government will pause the indexation of the Baby Bonus payment for three years. The payment rate will also be reset to $5,000 per child from 1 September 2012. The current rate of the baby bonus is $5,437.
FTB Part A conditional on immunisation – From 1 July 2012, the Government will make payment of the FTB Part A supplement conditional on a child being fully immunised.
Question from Lyn about withdrawing funds from superannuation to invest in property – When can I access my superannuation and How can I access my superannuation may be useful videos.

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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032 Your Money Your Life – What happens if a country collapses and cannot pay back its debt

admin — Wed, 02 Nov 2011 13:28:35 +0000

In this episode Gavin Martin, Financial Adviser / Financial Planner, is joined by Edward Teele to address the question “What happens if a country collapses and cannot pay back its debt?”, including:

European plan to deal with Greece sovereign debt issues
The difference between companies and individuals going bankrupt and countries going bankrupt
Previous country defaults
Possibly outcomes of the current economic situation
Wisdom from Warren Buffett and Professor Burton G. Malkiel

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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031 Your Money Your Life – Selecting an SMSF adviser, going guarantor and investing an inheritance for teenage children

admin — Mon, 24 Oct 2011 13:24:33 +0000

In this episode Gavin Martin, Financial Adviser / Financial Planner, addresses your 3 questions, including:

Selecting an SMSF adviser – Craig asks “My mother is looking to have someone else manage her SMSF. What points should does she need to consider when reviewing who should manage it.”
Going guarantor – Mark asks “I have the property I am living in paid off ($400k), I will retire in 1 year. My daughter is planning to buy an investment property ($300k). She want to put my name in the property, but only 5%, she owns 95%. My questions are:

In the future is it easier to transfer the property to me?
Is there any other positive reason for doing so?
And how will this affect my retirement payment?
If my daughter buys the property on her own (without having my name on the property), what are the differences to having my name on for 5%?”

Investing an inheritance for teenage children – Yolanda asks “what is the best way to invest in property so parents and rent off children (to pay outstanding loan)”

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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030 Your Money Your Life – Your questions about your superannuation investment option

admin — Sat, 22 Oct 2011 04:26:27 +0000

In this episode (Part 2 of 2) Gavin Martin, Financial Adviser / Financial Planner, addresses your questions about your superannuation investment option, including:

Luke: What’s the wisest place to put extra rainy day savings?
Steve: Is it better to put money into super or buy an investment property?
Vivian: Pay down the mortgage or direct funds to superannuation?
Brian: Pay off mortgage or is there a better strategy?
Anne-Marie: What is a realistic long term percentage (%) return on a cash investment option?
John: Time in the market vs timing the market
Amanda: Shares, Property or Cash
Ingrid: How do I get to access my super fund savings?
Daniel: Are the investment option targets still realistic?
Rachael: Is owning a home an important investment or is it better to rent?
Errol: I want a conservative to medium risk strategy
Alan: Is it best to leave my super where it is and ‘ride out the storm’?
Charles: What is the best way to invest in property if you are a young family, early on in life/work?
Geoff: Is it better to put most of my money into Super, invest in shares, or keep in the bank?
Wayne: Do I put all my money into paying off my home loan or still make super contributions?
John: Would it be to my advantage to put my super into gold for the next 4-6 years?
Gawie: Is now a good time to get into the real estate market?
Karl: Where is the best place to invest $10,000?
Felicity: Home to Investment Property and deductible debt
Ruth: Are shares a wise investment in this financial climate and given my age?
Anna: First 5 Steps to buying your first property
Andrew: Do we have 15-20 year term life Insurance in Australia?
Mark: When is a good time to switch or split my super from growth to stable investment option?
Michael: Should I consolidate my superannuation funds?

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/investmentvideo.

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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029 Your Money Your Life – What is the right investment option for your superannuation

admin — Thu, 20 Oct 2011 13:48:25 +0000

In this episode (Part 1 of 2) Gavin Martin, Financial Adviser / Financial Planner, addresses What is the right investment option for your superannuation, including:

Introduction
New deposit guarantee cap of $250,000
What is the right investment option for you?
What investment structure should you use?
What investments or asset classes should you invest in?
Diversification Reduces Risk
Understand your own circumstances
Investment timeframe – How long are you investing for?
What is your Age and Life stage?
Christian Super Investment Options
Risk Tolerance – What is your tolerance to risk or market volatility?
Risk vs Lifestyle approach to determining your investments
Is it a good time to get into or get out of the market?
How do you prevent losses and how do you recover from losses in the value of your superannuation?
Ethical Investing – How investing ethically adds values to your money?
Summary
Further Resources

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/investmentvideo.

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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028 Your Money Your Life – What is the best superannuation fund with low fees and can I invest my super in gold and silver

admin — Fri, 07 Oct 2011 14:44:08 +0000

In this episode Gavin Martin, Financial Adviser / Financial Planner, addresses two questions:

What is the best superannuation fund with low fees

Can I invest my super in gold and silver

Gold standard
Gold vs investing in gold mining companies

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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027 Your Money Your Life – Staying employed through the market volatility and How to Invest in Shares

admin — Wed, 28 Sep 2011 05:30:14 +0000

In this episode Gavin Martin, Financial Adviser / Financial Planner, addresses the issue of retiring when your superannuation assets are at a low point (low valuation) and also answers Kate’s question about how to invest in shares:

Continuing to work rather than retiring while markets are at a low point
“Wealth to Last, Money essentials for the Second Half of Life”, Larry Burkett, Ron Blue and Jeremy White, Broadman and Holman Publishers 2003
How to invest in shares
Kate’s question “I want to put some money, about $3000 into shares but don’t have much knowledge about it. How can I do this?
First Home Saver Account
Listed Investment Companies (LICs)

Managed funds

Exchange Traded Funds (ETFs)

Direct shares
Online Brokers

CommSec
eTrade
Search “online brokers” and you will see a range of online brokers

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

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026 Your Money Your Life – Retirement Planning Part 3

admin — Wed, 21 Sep 2011 09:30:51 +0000

In this episode (Part 3 of 3) Gavin Martin, Financial Adviser / Financial Planner, addresses Retirement Planning including:

How to reduce capital gains tax
How can I maximise the benefit to my children when I die?
Example of tax payable by a financial non dependent when receiving a superannuation death benefit
Cash Out Re-Contribution Strategy
Cash Out Re-Contribution Strategy Considerations
Further Resources

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/retirementvideo.

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025 Your Money Your Life – Retirement Planning Part 2 – Transition to Retirement

admin — Mon, 19 Sep 2011 09:30:53 +0000

In this episode (Part 2 of 3) Gavin Martin, Financial Adviser / Financial Planner, addresses Retirement Planning including:

How to prepare for retirement?
Strategies to help you save for retirement
How does Salary Sacrifice work?
What is the benefit of Salary Sacrifice?
Salary Sacrifice Example
How much should I salary sacrifice?
What is Transition to Retirement (TTR)?
What are the benefits of the TTR Strategy?
Transition to Retirement (TTR) Example
How does TTR work practically?
What benefit could the TTR strategy provide me?

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/retirementvideo.

Call 1300 275 428

Call 130 275 428 to leave your comment or financial question for Gavin to answer on the show.

iTunes

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024 Your Money Your Life – Retirement Planning Part 1

admin — Sat, 17 Sep 2011 14:58:14 +0000

In this episode (Part 1 of 3) Gavin Martin, Financial Adviser / Financial Planner, addresses Retirement Planning including:

How much will you need for retirement?

How to work out your retirement cost of living

65% of the after-tax income pre retirement
Base on other’s experience
Review expenses and make an estimate of how they may change in retirement

Research Modest vs. Comfortable Lifestyle

Modest retirement lifestyle – Better than the Age Pension, but still only able to afford fairly basic activities.
Comfortable retirement lifestyle – Enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.

How to provide for your retirement?

Three broad sources of income:

Superannuation
Government Age Pension
Other savings / investments

12 times rule
$50,000 p.a. income * 12 = $600,000 capital

How long your retirement savings will last
When can you access your Superannuation?

Preservation Age
Conditions of release

How can you access your Superannuation?

Lump sum
Pension

Why use superannuation to save for retirement?
Superannuation contribution limits

The presentation slides (in PDF format) and video can be accessed at http://www.cornerstonewealth.com.au/retirementvideo.

Call 1300 275 428

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iTunes

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023 Your Money Your Life – Dr Shane Oliver Making sense of the current market volatility Part 2 – Armageddon or Business as Usual – Question and Answer

admin — Tue, 30 Aug 2011 03:00:12 +0000

In this episode (Part 2 of 2) Dr Shane Oliver Director of Investment Strategy & Chief Economist of AMP makes sense of the current market volatility by responding to your questions.

If you have not listened to Dr Shane Oliver’s presentation check out Your Money Your Life Podcast 022 Dr Shane Oliver Making sense of the current market volatility Part 1 – Armageddon or Business as Usual

The webinar was hosted by Peter Murphy CEO of Christian Super Tuesday 23rd August 2011.

Questions addressed during this session include:

Is the the US dollar going to continue to be the global reserve currency?
Should I cease salary sacrificing into super and put the money in the bank?
Should I be moving my funds to cash?
When should I move to a more conservative portfolio? Particularly if I am approaching retirement or already retired.
Is it a good time to move to gold?
What do you consider short, medium and long term?
What will be the impact of European Sovereign Debt default on Australia?
Should I redirect my contributions to cash rather than a more risky investment option?

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022 Your Money Your Life – Dr Shane Oliver Making sense of the current market volatility Part 1 – Armageddon or Business as Usual

admin — Mon, 29 Aug 2011 02:00:26 +0000

In this episode (Part 1 of 2) Dr Shane Oliver Director of Investment Strategy & Chief Economist of AMP makes sense of the current market volatility.

The slides Dr Shane Oliver presented titled Economic and market update August 2011 are available in PDF format here.

The webinar was hosted by Peter Murphy CEO of Christian Super Tuesday 23rd August 2011.

Dr Shane Oliver’s presentation includes the following:

Share markets hit another air pocket in recent months
Business conditions indicators have softened…
…and public debt crises are bringing forward fiscal austerity
The risk of recession in the US and Europe has increased (to 40%) but most likely outcome is low messy global growth
Not the GFC (well at least not yet)
US housing starts at multi decade lows already
Interest rates are likely to remain low, with more easing on the way. Aust rates likely to fall
China is slowing but not collapsing
Apart from the mining boom, consumer caution has been the main theme in Australia recently = rising savings and weak spending
Mining is strong, but the Australian economy is vulnerable
Rising global risks and weak household demand mean Australia is vulnerable, but there are good reasons to expect Australia to hold up
Australian shares are way below the level suggested by profits
Australian shares are providing a higher cash flow than bonds &, increasingly, bank deposits
Commodity prices still in a long term uptrend
$A back to more normal levels after a long term slide
Australia’s strong terms of trade is driving the $A higher, albeit with occasional set backs
Commercial property is more attractive than housing given much higher rental yields
Australian house prices are high relative to incomes = limited upside…
The changed world ahead –what we are seeing in the aftermath of the global financial crisis

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021 Your Money Your Life – Is there a social media bubble and should you be investing in social media Part 2

admin — Wed, 03 Aug 2011 22:30:12 +0000

In this episode (Part 2 of 2) Edward Teele joins me to discuss whether there is a social media bubble and whether you should be investing in social media, including:

Deals and floats

Twitter – secondary market trading values it at $7.6B
Facebook

Goldman Sachs investment in January valued it at $50Bn.
Secondary market trades value Facebook at $76Bn
Interestingly was voted as the 10th most hated company in America.
687 M users. Most of the new users continue to come from countries that are relatively late in adopting Facebook, as has been the trend for the past year. Growth seems to be slowing – number of users dropped in the US in the last month. Canada, UK, Norway and Russia all dropped users

Renren
- China’s answer to Facebook – which valued the company at 78 times 2010 revenue or $748 million.
- Shares of Renren surged 29 percent in its IPO on May 4.
- Strong demand for the company – which is not profitable, but will be in profit “very soon,” as chief executive Joseph Chen told Reuters – was a strong indicator of investor appetite for social media companies.
Youku (China’s you tube)
Yandex

Russia’s answer to Google
Went public in June 2011 at a valuation of about $8 billion.

Google’s $1.654 billion acquisition of You Tube

Google is taking aim at Facebook with the launch of Google+.
Looks like Facebook – main difference is it is set up for sharing with Groups (e.g. hiking groups, colleagues etc) and not with the whole internet or your entire friend group
People increasingly turning to Facebook to ask questions which used to be asked of Google
In May 180 Million people visited Google sites including You tube. At the same time 157.2M people visited Facebook.
Facebook users visited 103 billion pages and spent 375 minutes on site. Google users visited 46.3billion pages and spent 231 minutes
Facebook off limits generally to search engines.
Went public in 2004 at $85 per share, now trades at $530 per share
Raised $1.7Bn
At time of raising revenues $961Mn, profit $106Mn had been profitable for three years
Sales were increasing at greater than 100% p.a.
Priced at $85 per share
Currently valued at $X per share representing a return of X%
After day 1 trading Google had a PE multiple of 137 times, Linked In was 589 times
Google now trades at 20.48 times earnings

Zynga
- Online social gaming firm
- Plans to raise $2Bn which will value the entity at $15bn to $20bn
- $1.8bn revenue
Pandora

Music streaming service
Pandora sold its IPO stock at $16 (value at $2.56Bn) a share, and they climbed as high as $25 on the first day of trading before closing at $17.42.
Revenue growing fast but not yet profitable
The good and the bad were clearly disclosed to investors in the filings before the company went public.
“By making available less than 10 percent of the total shares, that created a feeding frenzy,” Simmons said. The problem is this was one of several strategies used during the dot-com days to guarantee those huge, first-day surges in trading. While this is perfectly legal and clearly disclosed to investors, it still creates a misleading perception that demand is higher than it really is.

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020 Your Money Your Life – Is there a social media bubble and should you be investing in social media Part 1

admin — Mon, 01 Aug 2011 15:34:36 +0000

In this episode (Part 1 of 2) Edward Teele joins me to discuss whether there is a social media bubble and whether you should be investing in social media, including:

Social media is a buzz word across most areas of life (personal, business, media, and government) but from an investment perspective is it a prime opportunity to invest to take advantage of this burgeoning new market or are we in a social media bubble?
What is a bubble?
Can really only define bubbles in retrospect but…

What are some indicators of bubbles or stages in the cycle?

HYMAN MINSKY’S SEVEN BUBBLE STAGES The late Hyman Minsky, Ph.D., was a famous economist who taught for Washington University’s Economics department for more than 25 years prior to his death in 1996. He studied recurring instability of markets and developed the idea that there are seven stages in any economic bubble:

Stage One – Disturbance
Stage Two – Expansion/Prices Start to Increase
Stage Three – Euphoria/Easy Credit
Stage Four – Over-trading/Prices Reach a Peak
Stage Five – Market Reversal/Insider Profit Taking
Stage Six – Financial Crisis/Panic
Stage seven – Revulsion/Lender of Last Resort

What is social media?
What is a social media bubble?
Deals and floats

Microsoft over paying $8.5 billion for Skype (10 times sales and 400 times operating income)
Linkedin

Business professionals’ social networking website
More than 100 million users – adding one member per second. From IPO document “The number of registered members in our network is higher than the number of actual members because some members have multiple registrations, other members have died or become incapacitated, and others may have registered under fictitious names. Given the challenges inherent in identifying these accounts, we do not have a reliable system to accurately identify the number of actual members, and thus we rely on the number of registered members as our measure of the size of our network. Further, a substantial majority of our members do not visit our website on a monthly basis, and a substantial majority of our page views are generated by a minority of our members. If the number of our actual members does not meet our expectations or we are unable to increase the breadth and frequency of our visiting members, then our business may not grow as fast as we expect, which will harm our operating and financial results and may cause our stock price to decline.”
LinkedIn announced it would offer 7.84 million shares priced in a range of between $42 and $45 per share, valuing the company at $3.36 billion, higher than the initial price range of between $32 and $35 a share.
Reached $122 now back around $80. Surged 109% on opening day One factor driving the subsequent run-up: the thin IPO float of just 7.8 million shares.
The company earned $15.4 million in 2010 on net revenue of $243 million from roughly 100 million users. But it warned it expected revenue growth to decline and costs to rise as it pushes recruitment and reinvests in the business. It also said it would make a loss this year.
Revenue doubled form 2009 to 2010 and went from loss to small profit
The market value is equal to 35 times 2010 revenue of $243 million and almost 550 times 2010 profit of 17 cents a share. Google (GOOG) is valued at five times revenue and 20 times trailing earnings.
To meet expectations Linked In would have to grow income by 82 times in the first 3 years – this is triple the rate of growth of google.
Quote from Lise Buyer who runs an IPO consulting company and helped launch Google “There is no question that the reaction to the LinkedIn IPO demonstrates a frenzy for that one stock. But one company or group of companies do not a bubble make.”

Groupon

Groupon soon to IPO with an implied valuation of $5.6B.
Google offered to buy for $6Bn

MySpace

The first social media roadkill
Purchased by Rupert Murdoch in 2005 for $US 580M
Sold 2011 to Intermix for $35M (consortium included Justin Timberlake)
In 2006 Google announced it would pay My Space $900M to be exclusive provider of search engines on My Space (some suggested this sowed the seeds for demise as site became clunky, slow and over advertised)
August 9th 2006, the 100 millionth account was created
At its peak in 2007 when News corp attempted to merge it with Yahoo, it was valued at $12Bn
User base fell from 75.9M to 34.8M in May 2011. Revenue sagged from $900M in 2008 to $109M this year
Was most popular site in 2006 and 2007, overtaken by Facebook in April 2008
Question is could the same happen to Facebook or Twitter or Linked In?

Bebo

Bebo (blog early blog often) – social networking site (similar to Facebook)
Acquired March 2008 by AOL for $850M
June 17 2010 sold to Criterion Capital Partners for $10M
Apparent platform instabilities
Caused AOL CEO to lose his job
At one stage was number one social website in the UK

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019 Your Money Your Life – Top Ten Tax Tips and Federal Budget 2011 Question and Answer Session

admin — Tue, 05 Jul 2011 23:00:23 +0000

In this episode I answer a range of questions from webinar attendees in relation to the Top Ten Tax Tips for 2011 and the Federal Budget 2011 including:

Andrew - How to retire with a similar income to my current income?
Tracie – How to reduce tax while working to save for a unit etc ie get deposit?
David – Tips for building a retirement fund when starting again at age 55?
Elani – I have started my own business as a soul trader (whilst also being employed), and my husband is employed and well paid. Is it better for me, tax-wise, to contribute to super from my self-employed income, or better for my husband to do salary sacrifice on his higher income? What would be financially the best for us as a couple?
Kathy – How to make the most of our low income and reducing tax paid by voluntary contributing to super. Smallest tax payable, largest super contribution?
Elle – I’m new to work and super etc. I’m also younger and really do not understand Super, or how or it works or what I need to do… etc.
Tracie – How to reduce tax while working to save for a unit etc ie get deposit
Felicity – How can I make an investment property work for me?
Tony – Options to maximise payments to super for Salary Sacrifice, Spouse Contribution and post tax amounts
Jill – Are novated leases on new vehicles a good tax saving strategy?
Tim – What limitations are there on reducing my taxable income via receiving/making additional super contributions as an employee and/or contractor?
Daniel – What is the most tax beneficial income stream for people near retirement using their super? IE is it what used to be called an annuity? I am a male 63 at the moment.
Jill – Some time in the next few years I want to move to NZ. What is the best way to invest my small amount
Greg – I am eligible to retire at the end of 2012, what do I do if the church chooses to allow me to continue working
Peter – I have an investment property which is losing $30K pa and I can’t sell it except at a $150K loss.
Shirley – How much super do I need to comfortably retire at 60 I am 47 now
Evelyn – How much does one need for a good and comfortable retirement and what should one assume to be the lo
Daniel – What is the most tax beneficial income stream for people near retirement using their super? IE is it what used to be called an annuity? I am a male 63 at the moment.
Jim – Has the recent budget altered any of the following:
- Non-concessional contribution levels to Christian Pensions
- Work qualification requirements for contributions to Christian Pensions
- Minimum draw down levels for the 2011/2012 FY
John – Is Christian Super (Ethical Aust. Shares) performing below other Super funds that are supposedly not ethical?
Luke – What is an easy and simple way of comparing Christian Super’s performance (rate of return and Fees)

You can download the slides to the related Top Ten Tax Tips webinar in PDF format or view the videos on the Top Ten Tax Tips Webinar Recording page.

You can download the slides to the related 2011 Federal Budget webinar in PDF format or view the videos on the Federal Budget 2011 Details Review Webinar Recording page.

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018 Your Money Your Life – Federal Budget 2011 Detailed Review

admin — Sun, 03 Jul 2011 23:00:25 +0000

In this episode I review the 2011 Australian Federal Budget. The content was recorded during a live webinar event conducted for Christian Super members Monday 23rd May 2011 8.30pm AEST and includes the following content:

Federal Budget 2011 Summary
Major Spending and Spending Cuts
Flood Levy (Tax)
Dependent Spouse Rebate
Minors accessing Low Income Tax Offset (LITO)
Self Education Expenses HECS HELP
Small Business
Car Fringe Benefits
Refund of excess concessional contributions
Higher superannuation contribution caps for over 50s
Superannuation contributions on Payslips
Reduction in minimum pension payments
Freeze to indexation of the family payment income thresholds
Increase in Family Tax Benefit Part A
Flexible Advance Payments
Other Changes and Status of Prior Announcements

You can download the slides to the related 2011 Federal Budget webinar in PDF format or view the videos on the Federal Budget 2011 Details Review Webinar Recording page.

You can download the related slides in PDF format or view the videos on the Top Ten Tax Tips Webinar Recording page.

Call 1300 275 428

Call 130 275 428 to leave your most pressing financial question for Gavin to answer on the show

iTunes

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017 Your Money Your Life – Top Ten Tax Tips 2011

admin — Wed, 29 Jun 2011 01:37:53 +0000

In this episode I discuss the Top Ten Tax Tips for 2011 including:

Government co-contribution
Eligible Spouse contribution
Personal Deductible (Concessional) Super Contributions
Work related expenses
Education Tax Refund
Income Protection Insurance Premium
Donate
Offset capital gains with losses
Pre-pay interest
First Home Savers account.

You can download the related slides in PDF format or view the videos on the Top Ten Tax Tips Webinar Recording page.

Call 1300 275 428

Call 130 275 428 to leave your most pressing financial question for Gavin to answer on the show

iTunes

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2011 Federal Budget Detailed Review

admin — Sun, 26 Jun 2011 23:48:02 +0000

The series of videos below review the 2011 Australian Federal Budget. They were recorded during a live webinar event conducted for Christian Super members Monday 23rd May 2011 8.30pm AEST. The Top 10 Tax Tips for 2011 are available here.

Choose the individual videos that interest you below or the YouTube playlist plays all the videos in sequence (35 minutes length).

The 2011 Federal Budget Review and Top Ten Tax Tips presentation slides are available in PDF format here.

If you benefit from the content it would be great if you could kindly let us know via the comments section at the very bottom of this page.

You can also ask questions using the comments section.

If you would like to book an initial consultation you can call 1300 275 428 or submit your request for the Contact Us page.

Alternatively you can call 1300 275 428 and leave a voice mail question that Gavin will answer in a future podcast. The podcast is available via iTunes (see the icon in the right column) or here.

Video#01 Federal Budget 2011 and Top Ten Tax Tips Introduction with Peter Murphy

This first video is an introduction to the webinar. Start at video#02 if you want to go straight to the content.

Video#02 Federal Budget 2011 Summary

Video#03 Major Spending and Spending Cuts

Video#04 Flood Levy (Tax)

Video#05 Dependent Spouse Rebate

Video#06 Minors accessing Low Income Tax Offset (LITO)

Video#07 Self Education Expenses HECS HELP

Video#08 Small Business

Video#09 Car Fringe Benefits

Video#10 Refund of excess concessional contributions

Video#11 Higher superannuation contribution caps for over 50s

Video#12 Superannuation contributions on Payslips

Video#13 Reduction in minimum pension payments

Video#14 Freeze to indexation of the family payment income thresholds

Video#15 Increase in Family Tax Benefit Part A

Video#16 Flexible Advance Payments

Video#17 Other Changes and Status of Prior Announcements

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016 Your Money Your Life – Investing in U.S. Residential Property

admin — Thu, 16 Jun 2011 13:51:19 +0000

In this episode Edward Teele joins me to discuss the US Masters Residential Property Fund. It is just one of the range of managed funds coming to market providing Australian investors a means to take advantage of the combination of low property values in the United States of America, high rental returns and a strong Australian dollar by investing in U.S. residential real estate.

We are not recommending this particular investment in any way but thought it would be a useful way to discuss the ins and outs, pros and cons of investing in U.S. residential real estate.

The discussion includes:

What conditions make investing in U.S. Residential Real Estate so attractive at the moment?

Record high exchange rate (AUD to USD)
U.S. Residential Property market crash (this could turn out to be a long term problem though)
Slow economic recovery in the U.S.
High rental yields – particularly when compared to the Australian property market

What are the risks

Exchange rate – whilst we are at record highs we don’t know if it is going to go even higher. Without any currency hedging a rising Australian dollar will cause problems once the money is converted to US dollars.
Property prices – U.S. property prices have plummeted since their peak however the peak was part of a bubble and not sustainable. But what is a sustainable level?
Rents – are rents sustainable at current levels?
US recovery – looking pretty shaky at the moment
Liquidity – the fund we are reviewing is to be traded on Newcastle stock exchange – not sure how liquid this will be
Legislation – one issue from left field is will there be push back from US (and legislation) regarding foreigners buying residential property?
Experience – this is not Dixon’s bread and butter and can we trust the legs on the ground in Hudson County i.e. Gerald the estate agent with his long hair and his offsider Desi (another estate agent)
Concentration risk vs avoiding ghost towns or particularly challenging markets like Vegas or Miami vs diversification

Other references and links

The US Masters Residential Property Fund website
Seminar Presentation Video promoting the US Masters Residential Property Fund
Here’s a link to the ABC Radio segment with Neil Jenman of the Jenman Group and Scott Pape of the Barefoot Investor discussing a range of ways of investing in the United States of America Residential Real Estate market
The US Masters Residential Property Fund has now closed having raised $69.5 million not quite the $80 million they were aiming for but a pretty good result for them.

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iTunes

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015 Your Money Your Life – Top Ten Investment Lessons from the Global Financial Crisis Part 2

admin — Mon, 13 Jun 2011 03:57:37 +0000

This is the second and final podcast where I am joined by self confessed financial geek Edward Teele (and my swimming buddy) to discuss the Top Ten Investment Lessons from the Global Financial Crisis. We address tips 3 to 10 plus a few extra tips from Ed at the end:

Lesson 3 – Liquidity, liquidity, liquidity

Do Invest in company’s that will be hard to sell in less buoyant times
Don’t use large portions of gearing
Don’t invest in heavily in debt companies (you find out who has been swimming naked when the tied goes out)
Don’t assume that banks will be lenient in tough times when loan covenants are breached
BHP with many shareholders including many institutional shareholders it is relative easy to match sellers with a buyers whereas selling shares in a company with a limited number of shareholders in difficult times could be challenging because a corresponding buyer cannot be found.

Lesson 4 – Rapid expansion

Don’t invest in companies that have pursued rapid expansion overseas or rapid expansion locally
Don’t invest in companies with questionable financial disclosure policies

ABC Learning was an example

Lesson 5 – Structured products

Don’t invest in a capital guaranteed or structured product
Don’t invest in investments you don’t understand

Opes Prime

If you think a knock out event only happens in a boxing fight steer clear of structured products
Do read the fine print
Don’t assume that all providers of guarantees will be good for the dough
Do understand that getting your money back 5 or 7 years later is a loss (i.e. $100 now is not worth than $100 in 5 or 7 years due to inflation)

Lesson 6 – Understand the motivations of product providers/sellers

Avoid buying investments from sales sharks being paid large upfront commissions
Follow the money trail to understand motivations i.e. what are the providers getting out of the arrangement?

Lesson 7 – Don’t let the tax tale tail wag the investment dog

Timbercorp
Great Southern

Lesson 8 – Age old investment rules

Don’t throw out age old investment rules
Match you liabilities and assets as best you can
Don’t finance long term assets with short term debt
Pay dividends from earnings not capital (as Transurban did)
Profits are required for a business to be sustainable (during the early 2000’s tech reck this principle was thrown out the window)

Lesson 9 – Continually do your due diligence

Do keep to your investment standards
Don’t get slack in the boom times
One of the signs of a bubble is where a “cash box” list on the stock exchange – a business lists to raise capital with no clear plan of how to use it

Lesson 10 – Risk and Return are related

Don’t forget that risk and return are related
Don’t increase your risk for limited additional reward

Extra Lesson – Ed’s additional bonus tips to identify a nearing bust (boom period about to turn into a bust)

When your plumber or florist suddenly retires to “day trade” (trade stocks full time on the market) it is time to sell up
When the number of financial engineers outweigh the number of real engineers the end is nigh
If you think a knock out event is something that only happens in a boxing fight then you probably shouldn’t be investing in a structured product

Call 1300 275 428

Call 130 275 428 to leave your most pressing financial question for Gavin to answer on the show

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

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I recently created a Cornerstone Wealth Facebook page. The page needs 25 followers to be able to secure the Cornerstone Wealth name for the page.

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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Top Ten Tax Tips prior to 30th June 2011 in less than 8 minutes with Neil Johnson

admin — Wed, 08 Jun 2011 14:46:49 +0000

This video is a recording of a radio interview with Neil Johnson from the Vision Radio Network 20Twenty Program discussing the Top Ten Tax Tips prior to 30th June 2011 in less than 8 minutes, including:

Government co-contribution
Eligible Spouse contribution
Personal Deductible (Concessional) Super Contributions
Work related expenses
Education Tax Refund
Income Protection Insurance Premium
Donate
Offset capital gains with losses
Pre-pay interest
First Home Savers account.

Call 1300 275 428

Call 130 275 428 to leave your most pressing financial question for Gavin to answer on the show

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

If you are on Facebook, it would be awesome if you could become a fan of the page by clicking the Like button at the top of the Cornerstone Wealth Facebook page so I can secure the Cornerstone Wealth name for the page.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

014 Your Money Your Life – Top Ten Investment Lessons from the Global Financial Crisis – Do not Leverage to the hilt – Do not assume that asset prices never fall

admin — Wed, 01 Jun 2011 18:20:33 +0000

In this series of podcasts I am joined by self confessed financial geek Edward Teele (and my swimming buddy) to discuss Top Ten Investment Lessons from the Global Financial Crisis:

Investment Lesson number 1 from the Global Financial Crisis – Do not leverage to the hilt – Do not borrow too much – Leave yourself a margin of safety
Investment Lesson number 2 from the Global Financial Crisis – Do not assume that asset prices never fall – Do not assume asset prices won’t fall more than 10% – Do not assume asset prices allows go up

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

I recently created a Cornerstone Wealth Facebook page. The page needs 25 followers to be able to secure the Cornerstone Wealth name for the page.

There is not much to the Cornerstone Wealth Facebook page at this stage but it will evolve over time.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

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013 Your Money Your Life – Superannuation Question and Answer Session

admin — Wed, 01 Jun 2011 17:04:26 +0000

In this episode I continue to address superannuation basics with a question and answer session in parts 9 and 10 of a webinar audio recording:

Check out Your Money Your Life Podcast 010 if you want to understand why I have completed this series on superannuation
Check out Your Money Your Life Podcast 011 to learn about some of the strategies already discussed

Part 9 of the Superannuation Webinar audio recording includes responses to the following questions:

Should I organising ‘transition to retirement’ strategy?
Should an inheritance be contributed to super and is it costly?
I have $160,000 in Super. I was born 1950. Do I need to keep working after I turn 65?
I want to retire at the end of 2012. What steps should I take to prepare both financially and in other areas?
Is entering a retirement village a good idea?
My husband and I are 60, we have virtually no super except for $350,000 we expect to get from the sale of a unit soon (we own our house) how can we invest this money in super or fixed deposits to maximize our retirement “super” savings?
My wife has no superannuation and has not worked (paid) for 30 years. Is there any benefit — indeed, is she eligible — in me contributing to super for her?
Please explain how pre 1983 contributions affect tax at retirement. Please show an example of how the tax will change if I put a lump sum into my super prior to retirement. i.e. proceeds from the sale of a property. One of my super funds has not had contributions tax paid yet.
The video is available at www.cornerstonewealth.com.au/supervideo or via youtube
All 10 videos on superannuation are available at www.cornerstonewealth.com.au/supervideo or via youtube

Part 10 of the Superannuation Webinar audio recording includes responses to the following questions:

We’re faith-based missionaries about 15 years out from formal retirement. How can we best prepare for retirement?
What are the four most important things to consider when planning for transition to retirement?
What insurances can be paid out of Super, and what are the benefits of paying this way as opposed to paying out of after tax earnings?
What is the best strategy for investing super when close to retirement? How do I get my super fund to spread the risk or does it really matter. Should it all be in cash?
What is the most important thing that we can be doing now as a young couple that will have the biggest impact when we come to retire?
Can my wife and I combine our superannuation accounts?
Is it possible at age 50 on a low income (Approx. $40,000 p.a.) to still be able to build up super before retirement?
Purchasing an investment property through Super
I’m 29 years old, full time student, wife is working, no kids, what should we focus on?
Thank you from Jim
The video is available at www.cornerstonewealth.com.au/supervideo or via youtube
All 10 videos on superannuation are available at www.cornerstonewealth.com.au/supervideo or via youtube

Call 1300 275 428

Call 130 275 428 to leave your most pressing financial question for Gavin to answer on the show

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

I recently created a Cornerstone Wealth Facebook page. The page needs 25 followers to be able to secure the Cornerstone Wealth name for the page.

There is not much to the Cornerstone Wealth Facebook page at this stage but it will evolve over time.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

2011 Federal Budget Review and Commentary with Tracey Weare of Vision Radio

admin — Wed, 11 May 2011 12:29:29 +0000

This video is a recording of a radio interview with Tracey Weare from the Vision Radio Network News Desk discussing the 2011 Australian Federal Budget including:

This 8 minute interview discusses:

Spending less than you earn
Pros and cons of the budget
Winners and losers
Inflation
Education and vocational training
Cut back on Fringe Benefits on cars
Getting the budget through parliament

I will follow up this initial analysis with a more detailed analysis and how it affects your personal financial situation over the next couple of weeks.

Call 1300 275 428

Call 130 275 428 to leave your most pressing financial question for Gavin to answer on the show

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

I recently created a Cornerstone Wealth Facebook page. The page needs 25 followers to be able to secure the Cornerstone Wealth name for the page.

There is not much to the Cornerstone Wealth Facebook page at this stage but it will evolve over time.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

012 Your Money Your Life – How and when you can access your superannuation and deductible contributions to offset capital gains tax

admin — Wed, 27 Apr 2011 15:56:42 +0000

In this episode I continue to address superannuation basics with parts 6, 7 and 8 of a webinar audio recording:

Check out Your Money Your Life Podcast 010 if you to understand why I have completed this series on superannuation
Check out Your Money Your Life Podcast 011 to learn about some of the strategies already discussed

Part 6 of the Superannuation Webinar audio recording includes:

When can you access your Superannuation?
How can you access your Superannuation?
The video is available at www.cornerstonewealth.com.au/supervideo or via youtube
All 10 videos on superannuation are available at www.cornerstonewealth.com.au/supervideo or via youtube

Part 7 of the Superannuation Webinar audio recording includes:

How can you access your superannuation?
Binding Death Nomination
Deductible (Concessional) Superannuation Contributions to offset capital gains tax on the sale of an asset (e.g. an investment property)
The video is available at www.cornerstonewealth.com.au/supervideo or via youtube
All 10 videos on superannuation are available at www.cornerstonewealth.com.au/supervideo or via youtube

Part 8 of the Superannuation Webinar audio recording includes:

Further resources:

Cornerstone Wealth Personal Financial Advice call 1300 275 428 or complete the contact us form
Podcast – Ask a question by calling 1300 275 428 (1300 ASK GAV) and selecting option 1
Listen via www.cornerstonewealth.com.au or iTunes (or search for Your Money Your Life)
Christian Super Help Desk 1300 360 907
Christian Super website www.christiansuper.com.au
Christian Super calculator www.christiansuper.com.au/calculator

Should an inheritance be contributed to super and is it costly?
When and how should we go about selling an investment property and contributing it to super?
Should I set up a binding death nomination directed to my estate with a testamentary trust allowed for in my will?
The video is available at www.cornerstonewealth.com.au/supervideo or via youtube
All 10 videos on superannuation are available at www.cornerstonewealth.com.au/supervideo or via youtube

Call 1300 275 428

Call 130 275 428 to leave your most pressing financial question for Gavin to answer on the show

iTunes

You can subscribe to the podcast via iTunes or other methods of syndication, here’s short video explaining how.

Join us on Twitter!

Twitter

Become a fan on Facebook

I recently created a Cornerstone Wealth Facebook page. The page needs 25 followers to be able to secure the Cornerstone Wealth name for the page.

There is not much to the Cornerstone Wealth Facebook page at this stage but it will evolve over time.

Email me

Email me at GavinMartin@CornerstoneWealth.com.au to arrange an initial consultation or complete the Contact Form. Alternatively call 1300 275 428.

Share and Enjoy: