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Beeep! Beeep! Beeep!
6:30am, Monday.
You slam your hand down hard on top of your alarm clock to silence it.
Calm returns. The morning air is warm and still. The only sound you hear is your wife's chest rattling from her asthma with every out-breath.
You haul your aching legs over the side of the mattress. Your eyes judder open. You concentrate hard to try and clear the early morning fog from your tired mind.
Then it hits you: that familiar sinking feeling.
It's the same heavy slug to the stomach you've taken every Monday morning for the past 55 years... only it's been getting gradually heavier for the last 15 of those...
However hard you try to think about something else, you can't: reality dawns fast.
Another working week begins.
Your shirt and pants take an age to put on; you're all fingers and thumbs. But then you are 73 years old.
Frustrated, you stop fumbling with your clothes for a moment and close your burning eyes, hoping you're in the middle of a nightmare... one you'll wake up from any second, rested and relieved, looking forward to another day of leisure ahead...
But this nightmare is real.
On your bedside table is a stack of bills and final notices you know you can't pay, on top of a brochure for asthma medicine you know you can't afford.
In a few minutes you'll leave your wife sleeping and drag yourself 2km to catch a bus so you can start another week in a dispiriting job you never thought you'd still be doing in your mid-seventies.
This is not the retirement you had in mind.
What makes this sorry situation even harder to stomach is the knowledge that if you'd acted in time you could have easily prevented it.
Read on to find out why your retirement is in danger as a result of three grave errors you are making... why you're fast running out of time... and what to do urgently to stop this happening to you...
How to easily rescue & reboot
your super by the end of this year
Dear concerned friend,
When you think about a life after work, you think about how you'll reward yourself after more than 40 years of the daily grind.
You picture days spent on the golf course, laughing with friends... of long lie-ins and lazy lunches... of relaxing holidays, touring Europe, Asia and the Americas...
You never think about how you'll struggle to pay the bills... put food on your table... or stay warm.
Sadly, as I'm about to explain, this is a fact of life for a QUARTER of Australian seniors, currently living below the poverty line.
These people - honest, hard working Aussies - had exactly the same hopes and dreams as you. They knuckled down for years... put their faith in their super... in the stock market... and in the government that promised to look after them in the autumn of their life.
But they made three crucial errors of judgment. And now many of them are struggling.
There's a very strong chance you are making these errors too - right now.
I'll tell you what they are in this letter. Then I'll show you the surprisingly simple action you need to take now to address and correct them, so that you can plan ahead with confidence, and go on to enjoy the kind of long, happy and wealthy retirement you want to.
The first thing you need to know is this:
You cannot afford
another year like the last two
You've read the news. You know we're at the tail end of a 'global financial crisis'. These words are said so often that their impact has diminished. But this crisis has been the worst in living memory for most of us.
Here's a question: Did you know just how badly this crisis has affected your super?
I'll tell you: in 2008, the first year of the downturn, a staggering $160 billion was wiped off the value of super funds...
The Australian is predicting that the average fund is set to drop by a further 16 per cent in the current financial year...
SuperRatings say: "Australians should brace themselves for a second consecutive year of negative earnings from their super fund."
The OECD "Pensions at a Glance" report has just announced that Australian superannuation funds rank among the worst in the world. Aussie funds, decimated by the financial crisis, have just recorded the second worst performance of all the 30 OECD countries surveyed.
What does all this mean to you right now?
You need to double your
money to get back on track
That's what you're looking at, potentially. Here's why:
Most (in some cases, all) of your money is invested by people you don't know in various funds and equities on the stock market. Between October 2007 and March 2009 the Australian stock market HALVED in value - taking many of the shares in your super fund down with it.
Now, imagine you'd spent years accumulating $100,000 for your retirement in your super fund.
Then, in the space of 18 months, the financial crisis wiped half of that cash out.
Now your fund is only worth $50,000.
That's a big hit. The consequences for your retirement are HUGE. To get your super back to where it was before the crisis hit you need to double your money. That's no mean feat, even when the economy and stock market are buoyant.
They are anything but at the moment, but let's make a big assumption and say that markets do recover fully, quickly. At an average annual return of 8% it will take you NINE YEARS of work just to get back to October 2007 levels.
Let me spell out what that means:
It means, if you'd planned to retire at 55, you'll now need to work until you're 64... If you were going to wait until you were 60, you'll now be pushing SEVENTY before you can quit working for a living.
Or there's the other option...
Retire poor
| "The global financial crisis and the subsequent losses experienced have left many close to retirement in a precarious situation, as they have little time to recoup those losses" —
Caroline Munro
www.moneymanagement.com.au |
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You can, of course, stick with your plan and retire when you'd always intended to.
A recent study by Mercer found that the average Aussie's preferred retirement age is 58... after the last two years, that looks optimistic.
It really boils down to the kind of retirement you want.
If you're happy to be reliant on the Age Pension - $32 a day - if you want to live on tinned hot dogs... wear op-shop clothes... rely on the public health system, fine, retire at 58. You'll have to survive for 2-3 decades - as much a THIRD of your life - without an income.
That gives you a pretty dismal quality of life... hardly what you'd call 'rewarding' after a long career... but it's your choice.
On the other hand, if you want to take those long overseas touring holidays... while away the hours in your garden... have the peace of mind of private health care... the chance to wind down in comfort after four decades of the daily commute - and you want to retire on your terms - you need to pay careful attention to what I'm going to tell you today.
I'm about to share details of a gameplan you can put into action by the end of this year that will address the losses your super has taken and help you rescue and reboot your retirement this year - no matter how old you are.
If this is something that's been on your mind, now is the time to act, for five reasons...
- The financial crisis has added up to 9 years to your working life without you realising it
- You're fast running out of time to make up the shortfall
- Another volatile year like the last two could destroy your retirement dreams completely
- The people you are trusting with your retirement money do not have your best interests at heart
- It's now virtually impossible for your super alone to provide you with an adequate retirement
Bottom line: if you don't want to spend your later years scraping around for money to pay bills and put food on your table you've got some big decisions to make in the next few weeks...
The first and most important
decision you'll make is whether
or not to take me seriously
Kris Sayce |
My name is Kris Sayce. I'm editor of the MoneyMorning daily email and a fully accredited Australian financial adviser.
Please don't jump to any conclusions; I'm not peddling any 'get rich quick' schemes.
I'm not going to tell you how you can make 5,000% investment gains by the end of next week... or to put your money into some hyper-speculative jack-in-the-box type investment that will make you an "overnight millionaire".
Nor am I trying to scare you unduly - despite how all this reads.
I'm just trying to wake you up to the single biggest con of your lifetime.
You have been paying 9% of your salary into a scheme, believing that when you retire you'll have enough money so that you never have to worry about the stuff again.
You are planning your retirement around this scheme in good faith, making your payments month after month, year after year, keeping your end of the bargain.
But people you don't know are gambling with your life savings, plundering fat fees they don't deserve - even though you are LOSING MONEY.
This scheme is a fraud.
For reasons I'll outline in this letter, super is deeply flawed. If you leave it on "autopilot", never checking it, never holding those who supposedly "manage" it to account, you will be in for a very nasty surprise when you come to retire.
On its own, your super will not provide you with anywhere near enough money for 20-30 years of retirement. I'll show you just how big your shortfall will be in a moment. On top of that, right now it's under threat by the very people you trust to safeguard it.
But don't worry. Today I'm going to show you what you need to do now:
- Firstly, to fight back... I'll reveal details of a plan that will help you defend and protect your super from further market volatility, and the mismanagement of those you employ to look after it...
- Secondly, to take greater control over your nest egg cash... I'll show you how to effectively self-audit your super to make sure your money starts working for you... and to start building a store of wealth this year that will give you the kind of retirement you want - not just one you can afford.
- Thirdly, to use the time you have until you retire intelligently... I'll also show you two proven income generating techniques you can put in place in the next few days to help you address the losses you've taken over the last 18 months and make them back quickly.
You'll be able to get started with some of the ideas, strategies and techniques in this letter straight away. These will help you generate an income - with little or no risk - this year. Others are slow-burners that will reap rewards later on.
Please understand: the next 12 months are critical to your future wealth.
As I'll explain shortly, stock market volatility is here to stay. This could be your last chance to save and preserve the wealth you've spent your lifetime accumulating...
It could be your last best chance to save enough money to be able to retire with dignity: to be able to sustain the kind of lifestyle you enjoyed as a wage earner - or maybe an even better life... treating yourself to holidays, days out, and presents for the family.
If that's the kind of life you want, please keep reading - the specific details of this plan are coming up.
First, though, there are three retirement-wealth-killing errors I need to warn you about urgently...
Wealth killing error 1:
COMPLACENCY
| "Complacency caused by four years of double digit superannuation returns, combined with what is evidently a low level of financial literacy, have led to unrealistic financial return expectations that are a serious concern."
-- Catholic Super and Retirement Fund
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Australian baby boomers have never experienced a "rainy day" - so they've never planned for one.
But then why would you?
Over the last 20 years, virtually everything has gone up... and up...
A generational bull market has lifted the stock market, property values and commodity prices to dizzying heights. Most of us have felt the benefit of this in some way or other.
It's certainly made us feel a lot wealthier than we are. And when you feel wealthy, you tend to act wealthy.
And that's just what we've been doing - in some style... We've bought bigger houses, newer cars, nicer TV sets - and in the process, we've racked up more personal debt than the Americans were in just before the U.S. sub-prime crisis hit.
How deep in debt are we?
According to the Bank of International Settlements (BIS), during the 1980s, the ratio of household debt to disposable income for Australian households was around 45%. For every dollar an Aussie earned he owed 45 cents. Not ideal - but manageable.
Since 1990, the BIS reports that this ratio has risen rapidly, reaching an incredible 157% in December 2007. That means for every dollar the average Aussie earns, he owes $1.57.
In an October 2008 article, The Australian reported:
"By 2008, Australian households carried 35 per cent more debt relative to their income than Americans. The great Australian middle class has become more addicted to credit and more spendthrift than the US, the home of consumer capitalism."
We all know what happened in America after their debt bubble exploded...
But despite that warning, and despite debt far in excess of their incomes, Aussies are STILL spending money like it's going out of fashion.
In June 2009 the government handed out $900-a-piece to low and middle-income earners as part of a $23 billion stimulus package. By August, Australian National University economist Professor Andrew Leigh found that 40 per cent of those who'd received that cash had spent the lot. That's some stimulus for the economy!
"This is approximately twice as high as the share of United States residents who reported that they spent the tax rebates handed out in 2001 and 2008," noted Professor Leigh.
We all love spending free cash - who doesn't? - But every dollar you fritter away now is a dollar your future self will have to find when there's no regular money coming in.
There's an easier way to put this:
Act rich now and
you'll end up poor
"While some people have changed their financial habits in response to the crisis, overall we've adopted a ''she'll be right'' view towards our long-term financial security."
-- Annette Sampson
Sydney Morning Herald
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The fact is, despite the overwhelming warnings, many of us spend more than we earn without any thought to the consequences... we believe that house prices will always rise... that high asset values equate to "true" wealth... and that we don't have to save any of our income because our super will provide us with a comfortable retirement.
But hang on a second - How often do you audit your super?
How regularly do you check to see whether your nest egg is still growing... or, at the very least, well protected against the economic downturn? Every month? Once a year? Never?
Have you checked it recently? Maybe you should...
Many Aussies opt for their company approved super fund and then forget about it, expecting to be handed a huge cheque at the end of their working life.
Granted, it's convenient: no research, no hassle, no worries. There's usually a big name behind the fund, and the glossy brochure your HR Manager hands you makes you feel cosseted and reassured.
It's the easy choice so you take it. And you stick with it - because you never physically see the money... it's just another deduction on your pay slip. It's not as if you're actually handing over piles of notes to someone to safeguard and nurture for you.
But this complacency is
costing you every month!
According to a recent report by superannuation research firm Chant West, the majority of retail super funds (i.e. yours) are classed as "growth" funds; defined as containing between 61 and 80 per cent of their allocation in assets such as shares. Even if you're invested primarily in a "balanced" fund, 40-61per cent of your retirement cash will still be held in "growth" assets, says Chant West.
Growth assets are great when the market is going UP... but you want to limit your exposure to these assets when the market goes DOWN.
And that's the problem: in the same report Chant West states that the average 'growth' super fund fell by 13% in 2008/09.
This is the worst return since the introduction of compulsory superannuation in 1992.
The worst return in the history of super.
That's a real kick in the teeth.
And the thing is, unless you've been paying attention, you may not have even noticed it. Rest assured, it'll smart pretty badly when you're still doing that early morning commute five... or even ten years after you'd planned to retire.
Please understand: sticking with the 'default option' of your company super allows someone you don't know to make all the crucial decisions that affect your financial future.
In terms of committing crimes against your future self, this is just about the worst thing you can do. Believe me - you may as well jump forward in time to the day you retire and punch yourself square in the face!
Listen, I'll be blunt: if this sounds like a description of you, this complacency will bite you on the back side, sooner or later... most probably when you retire, get your super cheque and realise you've got far less money to live on than you expected.
If you want to avoid this eventuality, I can help.
I'll give you a point-by-point plan of action in a moment. I'll show you measures you can take straight away to protect against further losses and start generating a monthly income to rebuild your fund - and even grow it well in advance of your expectations...
Don't worry - it's nothing too complicated. I'm talking about small and surprisingly simple things you can put in place now that could make a HUGE difference to your retirement income.
You'll get full details very shortly.
First, there's something else we need to address as a matter of urgency...
Wealth killing error 2:
UNDERESTIMATING THE COST
OF A COMFORTABLE RETIREMENT
| "Most superannuation savers are heading for an impoverished retirement... Even without the ravaging effects of the financial crisis, anyone who is relying on the basic 9 per cent super guarantee is unlikely to accumulate enough money for a comfortable retirement."
— Nick Gardener
News Limited
- According to Fujitsu Consulting, fewer than 20 per cent of Australia's baby boomers have adequate superannuation or private insurance cover to fund their health care in retirement...
- Access Economics say that more than a third of Aussie workers, if they keep to their current contributions, will have inadequate incomes in retirement...
- Calculations by wealth management firm Yellow Brick Road show that a 30 year old, with no prior super savings, earning an above average $80,000 and relying solely on their super when they retire will run out of money by age 77...
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Think very carefully...
Will your current pension plan give you enough money to live on for 25 YEARS PLUS after you retire?
Actually, scratch that. Life expectancy rates are rising in Australia. You may have to fund closer to 30 years of retirement... practically one-third of your life without a salary!
When I say: "enough money to live on" I'm not talking about scraping by: surviving on a diet of canned beans and condensed milk... selling the car, buying a moped and living in one room... scaling down your health care provision... working part time in the '7-11'...
I'm talking about having enough money to be able to retire comfortably and with dignity: to be able to do the things you dream of doing, and see the places you dream of seeing... without always having to check price tags. Not just for five or ten years after you retire, for the rest of your life.
The Association of Superannuation Funds of Australia reckons you'll need $36,607 a year for a "comfortable" retired life - that's assuming your mortgage is paid off.
Let's say you retired at 65 and lived to the ripe old age of 90 - that's not out of the question at all thanks to modern medicine and healthier lifestyles.
If you lived for 25 years and spent $36,607 a year, you'd need a total of $915,175 in your super on retirement... almost a million dollars!
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Why the Aussie Age Pension
won't come to your rescue
The government pension currently pays just $32 a day, or $11,680 a year. According to the OECD, that's one of the least generous state pensions in the western world.
Remember - The Association of Superannuation Funds of Australia says that retired singles need an income of $36,607 a year (roughly $100 a day) to have a "comfortable" lifestyle.
The Age pension will give you less than a third of that.
Put another way: if you got a lump sum from the government on Jan 1st you'd run out of money, completely, by April 27th.
No wonder one in four Australian seniors now live in poverty trying to make that cash last for 12 months.
That shameful figure, by the way, is higher than in any other OECD nation except Korea, Mexico and Ireland.
But you've got time to make sure that it doesn't have to come to that... read on for a step by step ‘rescue and reboot' plan of action! |
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Do you have a plan to amass this sort of money in time for when you stop working? Because compulsory superannuation at nine percent a year will not get you anywhere near it!
Remember - you're already working doubly hard to make back your losses from the past 18 months. God forbid the stock market takes another dive like in 2008/09 - that will be even more for you to recoup somehow...
...Unless you're happy with the alternative I set out at the beginning of this letter - which doesn't really bear thinking about.
The really sorry statistic is that your super may NEVER get you close to that $915,175 figure.
Even if you earned the average Aussie salary of $60,658 and started making super contributions aged 25... even if the credit crisis had never happened, and your balanced growth fund grew at a steady 9 per cent a year... even if you saved for 40 years on this basis...
You'd only have a pot of $380,069 when you retire.
That's according to the AMP online "super calculator".
That would give you a 10-year retirement.
You'd be all out of cash aged 75 - probably when you'll need a few dollars for healthcare.
You see what I'm saying?
The fact is, you can save for your retirement diligently for FORTY years and STILL be over half a million bucks short when you quit work!
There's only one conclusion you can draw from all this - and you've probably arrived at it too:
Rely solely on your super and
you WILL run out of money
Look - I realise nobody likes to hear this kind of stuff.
But if you want even a half decent retirement you need to understand what it's going to cost.
The fact is, most Aussies - maybe you too - dream of retiring early, but few have made adequate provision. Few have any idea how much it costs to retire comfortably... or how they are going to pay for ONE THIRD of their life without an income...
Hundreds of thousands of people who haven't thought this through will get a rude awakening.
Imagine - at a time in your life when you'll want to be winding down, relaxing and enjoying yourself, you might find yourself scrapping for menial jobs that are beneath you... facing age discrimination in an increasingly competitive workplace... queuing up in the employment office next to school leavers... and living a life still governed by that bloody alarm clock!
Frankly, it's demeaning.
But here's the good news: it's largely avoidable, if you use the time between now and when you retire intelligently.
- I'm about to share several ideas and strategies that you can employ right away to shore up your super, regain more control of your financial destiny, earn income passively and boost your retirement pot, potentially by tens of thousands of dollars - if not more - by the time you come to retire.
- I'm talking about things you can do within and alongside your super that don't cost you anything extra... and take little time to set up... but could mean the world to you and your family when you no longer earn a regular wage.
Start soon and you might even be able to get your early retirement back on track!
If that appeals, please read on - details on how to practically and realistically solve these problems are coming up. But there's one more crucial mistake I need to warn you about first...
Wealth killing error 3:
TRUSTING THE WRONG PEOPLE
WITH YOUR LIFE SAVINGS
"The [superannuation] industry seems to go out of its way to muddy the waters... the lack of transparency of performance and results for Aussie workers has led to widespread inertia, with the vast majority of fund members simply sticking with the default option of their employer's nominated fund... [Members] feel disconnected from their retirement savings and run the risk of remaining in a poorly performing fund that could severely limit their retirement options."
— Sydney Morning
Herald Aug 21, 2009
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I was a stockbroker once. For years I worked for one of Australia's biggest wealth management firms.
In fairness, they were one of the better companies. They had some scruples.
But let's just say that if you'd seen what I've seen over the years, there's no way in hell you'd be quite so nonchalant about handing over a hefty whack of your salary every month to people you've never met without ever checking what happens to it.
Granted, the marketing for the big super firms is slick, professional and reassuring. It makes you want to leave your life savings in the "safe, capable" hands of these companies.
But ultimately, your money ends up in the hands of some of the most ruthless, arrogant, self-serving people you'll ever meet. When you work in an industry for several years, you build up a general picture of those in it. What I found was that many - but not all - of these people:
- Care only about "the two Cs": their commissions and their careers.
- Don't really work for their money in the same way you or I work for ours - some of them receive obscenely large kick-backs for doing precious little.
- Don't care in any meaningful way about the kind of retirement you'll be able to afford.
That sounds controversial - but in my experience it's true. Fund managers are paid - and incentivised - to gamble with your retirement money.
If that gamble pays off, they might earn a promotion and the chance to work with some higher-net-worth clients - and earn even more commission.
If that gamble doesn't pay off - no big deal. Not for them.
Why? Because super is mandatory in Australia.
There's a huge river of cash being pumped into the system every month. So what if they lose a few hundred dollars of your money here and a few hundred there - there's more on the way.
Can you see how this regular stream of 'stake money' - 9% of every working Australian's salary, every month - might make these guys a little blasé... and perhaps a little careless?
They can't lose! They can bet your money on whatever they want, whenever they want for whatever reason they want - with complete impunity and zero accountability, knowing their "stake" will always be replenished, no matter what!
How does this carelessness affect the money in your super?
| "The whole retirement industry runs its business by paying itself in percentages. Funds managers, investment managers and investment platforms are all riding royally on the river of gold that is Australian Superannuation. Far from having to sell its wares to a sceptical customer, the super industry just sits back and waits for the money to roll in. No other business endeavour is so blessed"
— Sally Patten
The Weekend
Australian Financial Review
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Well, after years of dodging the question, and muddying the waters, we now know the truth...
On August 21st, 2009, the Australian Prudential Regulation Authority (APRA) published a league table ranking the best and worst performing super funds over the last 5 years.
This table showed that NONE of the top 40 super funds on the ladder were from the retail or 'for profit' sector... i.e. the ones most likely employed by your company-approved scheme.
Not one!
The best performing funds tended to be 'industry' funds in the 'not-for-profit' sector - including those run by the Motor Trades Association and Military Superannuation.
The worst performing funds over the last 3-5 years have been run by the most prestigious names: ING, ANZ, AMP, Spectrum, AXA, Macquarie Group, National Mutual, Colonial First State (owned by Commonwealth Bank) and BT, Westpac's investment arm.
David Whiteley, executive manager of the Industry Super Network says: "this table is the most damning evidence yet of the structural corruption inside the financial planning industry.''
But here comes the REAL kick in the teeth...
It doesn't matter how much of your money
these guys lose, THEY STILL GET PAID!
In a restaurant, if you order your steak medium rare and it arrives cremated you send it back. If you buy a new shirt from Myer, get home and realise it's got a big hole in it, you take it back, exchange it for one without a hole or ask for a refund.
In life, you generally don't pay for poor performance, poor products or poor service. Most retailers accept that and do what they can until you ARE happy to hand over your money.
In super - already a highly privileged industry - it's different.
The Weekend Australian Financial Review has calculated that "over a 20-year period, the fees you pay could end up worth almost half of what you eventually take home."
HALF your retirement money on fees - regardless of the performance of your fund.
That's pretty hard to stomach. Especially given the results I've just shown you. But there's more...
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Were you ripped off in August
without realising it?
On 20th August 2009, the government's ‘Future Fund' - set up to manage the pension liability of public sector employees - decided to dump $2.37 billion worth of Telstra shares. What did it do? It contacted broker UBS who put in a few calls to its mates in the big retail super firms.
They bought the lot: 684.4 million shares at $3.47 per share with your retirement savings. Then they spread those shares across many of the funds they "manage".
The upshot is that, in all likelihood, you're now the proud owner of a bunch of Telstra shares - that raises two issues:
First - I wouldn't touch Telstra shares with a barge pole at the moment.
I reckon there are MUCH better plays than Telstra in the telecoms sector right now - particularly if you're interested in capital gains (the things that actually make your retirement fund grow!)
But my opinion on Telstra is neither here nor there. The fact is, you weren't asked for yours.
Second - three and a half weeks after selling these shares, the government announced it was breaking Telstra up!
What happened to the share price? On 15th September it tanked to $3.11!
Here's an interesting question: Did the Future Fund know in advance that this announcement was going to be made?
The Fund netted $2.37 billion from the sale of Telstra shares. Had it waited until the government announced its plan to break up Telstra, I calculate the Future Fund would have made at least $250 million less selling its stake in Telstra.
I have to be careful about what I say here. Suffice it to say that it looks very much like the government has taken care of its own people at the expense of you and your super.
Bottom line: If your super fund bought Telstra shares from The Future Fund on 20th August those shares would have made a loss of 10.3% by close of business on 15th Sept.
Were you knowingly ripped off?
Make your own mind up... |
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According to research released to The Sunday Telegraph by financial consulting firm Rainmaker, savers in some of Australia's worst-performing super funds have been forced to pay an estimated extra $3 billion in commissions to financial planners over the past 3 years!
This money - your money - has been spent to persuade planners to sell funds from the big banks and insurers, despite having delivered some of the lowest investment returns in the history of super.
That $3 billion bribe money will never reach your retirement pot... it's gone straight into the pockets of more "buddies" in the financial services industry.
There was no consultation and no consensus. Just more people taking a cut of your nine per cent.
I repeat: these are the people you currently trust to look after your life savings!
Here's what I reckon:
I don't think your super exists to provide for your retirement.
I think your super exists to provide jobs in the fund management industry.
And soon, it may not exist AT ALL...
Revealed: The Federal Govt's plan to quietly
steal your super
Remember the stimulus package?
The government has already borrowed $100 billion to fund it.
In total it's planning to borrow $300 billion. It's also running a $57.6billion budget deficit and has infrastructure spending plans of around $80 billion...
That's a huge liability. And it could soon be yours.
You see, right now, approximately $1 trillion of Australians' hard earned retirement savings - yours included - is sitting in super funds... that figure is set to rise to $2 trillion by 2014, $3 trillion by 2018 and approach $7 trillion by 2028, according to the Investment And Financial Services Association.
So let's get this right: the federal government will soon have debts in excess of $400billion... and there's upwards of one trillion dollars sloshing around in super funds.
Are you connecting the dots here?
The PM already has.
While you've been licking your wounds, recovering from the most disastrous period in the history of super, he's been tasking his cronies to find a way to get their sticky fingers on what cash you have left!
According to The Age on May 30th 2009: "Mandating all super funds to invest a percentage in government bonds is an option for Rudd in financing his grand infrastructure plans."
The government is hoping you'll give them all the money in your super to pay for their stimulus spending.
In exchange they'll give you a fancy new "government guaranteed" pension. Basically, it's a way they can snaffle a heap of cash from you now to solve their immediate problem and worry about the liability in 20, 30 or 40 years time - when it's someone else's problem.
If you think this plan sounds like a good idea, think again. It isn't.
Sign up to it and you'll sign away ANY last ounce of control you have over your financial future.
It's my guess this harebrained scheme will eventually be absorbed into the regular age pension - yes, it may give you a little more than the $32-a-day they currently hand out to our seniors - but I'll eat my hat if it's anywhere near the $100-a-day that ASFA says you need for a "comfortable" life.
Don't think they won't do it
The temptation of a quick, easy trillion dollar injection is too great for any self-serving politician to ignore. Plus, they've already made a grab for the $800 million superannuation balances of foreign temporary workers!
According to the Australian Financial Review: "super funds will be required to hand over their obligations from temporary residents twice a year, in April and October..."
Those contributions have been earned honestly, legitimately and in good faith. But the government has decided it wants that $800 million, so it's taking it.
That's theft - and it also sets a very worrying precedent: If they can steal these super contributions on a whim, they can steal yours. If the politicians gets their way, they will.
Bottom line:
The elected representatives you are counting on to see you right in the autumn of your life are only interested in covering their own backsides.
The highly paid fund managers you trust with your life savings do not give a damn about the kind of retirement you want...
Your retirement nest egg is the most important chunk of cash you'll ever need.
You're the only person who truly understands what your life goals, hopes and dreams are.
You're the only person who has a genuine emotional connection with that money.
The only person you should trust with your life savings is YOU.
In the next few pages I'm going to show you how you to get on top of this situation quickly... to regain control over your future so that there are no nasty surprises when the time comes to give up work...
Your fight back begins NOW
Believe it or not, right now, you're lucky.
You now know what the three biggest retirement-wealth-killing errors are. That means you're in a position to do something about them.
And you can - starting today - with my help.
First we'll tackle any complacency you have about your super. I'll show you what you need to be concentrating on right now to get it back on track quickly. Second, we'll address the amount of money you need for a comfortable retirement. I'll give you two proven ways to generate a regular passive income, so that we can make serious in-roads into that $915,175.
Third, I'll give you ideas, tips and the confidence to take control of your own affairs. I'm going to share details of a retirement rescue and reboot plan with you that you can rely on, so that you no longer have to trust the wrong people with your life savings.
The action you need to take in the next few weeks is surprisingly simple.
You'll need to put in a little effort, but that effort will be greatly rewarded when the time comes to retire. The small steps you take now will mean a massive deal to your future self - the one relying on you now to act quickly and decisively.
My plan - YOUR plan - is called the Australian Wealth Gameplan - and here's how it works:
STEP ONE - how to get
your super back on track
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Why managing your own
super is easier than you think
With the exception of surgery, almost any service you pay a professional for can be done by you.
It's just a matter of understanding the basics, then honing your skills. Why pay a carpenter to put up a shelf when you can do it yourself? Why pay a gardener to mow the lawns with your lawnmower?
And why pay a fund manager to take care of your life savings when you can probably do a much better job yourself?
Taking control of your retirement money through a self managed super fund (SMSF) means you decide how, where and when your money is invested. If you think shares are looking good then you buy shares.
If you think property looks good value then you buy a listed property trust. And if you want to hedge your portfolio using precious metals then you can buy a gold or silver exchange traded fund. The possibilities are almost limitless.
And the great thing is you can easily keep track of your costs. One of the biggest drags on a superannuation fund is the money you pay the fund manager. What do you get in return? Not much. Your savings get sloshed around with the thousands of other investors in the same fund.
And for that, the fund manager could charge you a fee of up to 5% of your account. In other words, if you've got $500,000 in your super fund, your fees could be anything up to $25,000.
That's not what I call value for money.
The reality is, setting up a SMSF is a lot easier than you think - and you don't need a King's ransom to do it anymore. In fact, if you shop around you'll find you can set on up with as little as $50,000 in your fund.
But best of all, you'll finally get the chance to take control of your own retirement without an overpaid fund manager making all the decisions for you!
For more ideas on how to steal back your super and make sure more of your life savings end up in YOUR pocket, take a RISK-FREE, 30-day trial of the Australian Wealth Gameplan service today! |
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The first stage of the Australian Wealth Gameplan will address your super.
You need to do this urgently - especially if you've been complacent about your super up to now. The vast majority of Aussies are unaware of the risks being taken with their nest egg every month... few realise that with greater control and influence you can direct your contributions into investments that protect and benefit you!
To get your super back on track there are four basic questions you need to ask right away:
QUESTION ONE: Have you got the big call right? There are hundreds of super funds out there that give you control over the asset classes you invest in. And that selection is really important...
The famous Brinson Study (Determinants of Portfolio Performance) of 1995 concluded that 94% of your portfolio return comes not from the right stock selection (i.e. Telstra... CSR...etc) but from being in the right asset class (metals, energy, small stocks, etc)... Ninety four per cent!
Put simply: forget the individual stocks - you need to get the big call right!
QUESTION TWO: is your super protected against further market misery? Forget talk of recovery. The financial crisis hasn't finished chewing up the ASX yet. Earlier this year the "VIX index", which measures stock market volatility, reached 60. That might not mean a lot to you, but that's its highest level by some margin since the 1980s.
Bloomberg recently reported that options traders are betting a massive stock market correction is imminent. VIX futures suggest the volatility index could rise by 13% in the next few weeks. The last time the VIX went up by that much, that fast, stocks took their worst plunge in over twenty years.
Remember: another year like the last two could finish your super off... the time to protect your investments against further market volatility is now. As a matter of urgency, check what 'defensive' investments are in your super.
Check your allocation in cash... bonds... precious metals... there are many ways to hedge against increased volatility on the markets. By selecting the right 'defensive' investments now you could save yourself further heartache in 2010.
QUESTION THREE: do you audit your super as regularly as you should? Remember how fund managers LOVE to keep you in the dark? Well the longer you leave them to "get on with it" the more your savings are in danger of being frittered away to nothing.
You are paying these "managers" a fee, remember, so check the performance of your fund regularly.
If you don't receive monthly statements - quarterly at the very least - demand them. Check how easy it is for you to move your money around within your fund. Don't allow your hard earned cash to be invested in sectors or companies you don't like, don't understand, or that don't fit your risk tolerance.
One thing you can be sure of:
The more you take these fund managers on trust the more they will abuse that trust.
QUESTION FOUR: would you be better off taking the reins yourself? Have you stopped to think whether you'd be better off managing your own super?
Again, it involves some effort on your part. But probably less than you'd think... and you'd finally be free of overpaid, lazy and arrogant fund managers choosing all of your options for you... which means you'd have completely free reign to determine your own financial destiny.
And you'd never have to trust anyone else with YOUR life savings ever again!
Self-managed superannuation funds (SMSF) have been the fastest-growing segment in the retirement savings sector for well over a year.
So rapid has been the growth of SMSFs that, based on the latest Australian Prudential Regulation Authority statistics as at March 2009, these types of funds accounted for $327.8 billion in assets of a total of $1.03 trillion in assets held in superannuation at that time.
That translates into 32 per cent of the market, compared to the declining retail sector, which still holds 28 per cent of the retirement savings pie.
And the signs are that this will snowball. A Trowbridge Deloitte study says that pre-retirement assets held by SMSFs will grow to $568bn in 2015.
Then there are the rewards...
83% of DIY investors in 2007 believed that their fund exceeded or matched the industry return... not to mention the satisfaction of being in control of your own affairs!
Listen - this may not be for you, but going self-managed is fast becoming an opportunity you can no longer ignore. At the very least you owe it to yourself to explore the idea. If not, you could be missing out on your best chance to protect your life savings as we head into yet more market volatility.
I know it's daunting... but I also know this is the single most critical piece of financial planning you will ever do. You owe it to yourself - and your family - to get this right.
Annette Sampson in The Sydney Morning Herald says: "most fund members do not realise that even a one percentage point difference in performance can mean a $100,000 or more difference to their final retirement benefit."
It boils down to this: leave your super on autopilot and you will suffer. But make small changes now - minor tweaks in the right areas - and they can make the world of difference... one percentage point in your favour can literally give you a six-figure boost when you retire.
If you want to see how that can be achieved, starting right away, I have a serious proposition for you:
STEP TWO - let me guide you along
If you're wondering where on earth to start, I can help.
Each month I can mentor and advise you as you take greater control over your financial future. I can show you how to tune up your super to improve its performance (hopefully by greater than just one percentage point) and stop leaking money like a broken bucket...
I can show you easy ways to boost your retirement pot with second and third streams of passive annual income... plus teach you how to protect what savings you have from further stock market turmoil and the grasping hands of lazy fund managers and greedy politicians - none of whom have your best interests at heart.
If that appeals to you, I'd like to invite you to take a completely risk free 30-day trial of my Australian Wealth Gameplan service.
I'm not after any commitment from you. I just want you to take a closer look at the gameplan for the next thirty days, and decide for yourself if my retirement boosting strategies, ideas, tips and techniques could work for you.
Think about that for a moment while I show you five specific ways Australian Wealth Gameplan can help you sort that super out, quick smart:
- I'll reveal which asset classes I think are worth looking at in 2010 and which to ditch NOW (remember: 94% of your return depends on your being invested in the right assets!)
- I'll show you how to protect your super from more financial crisis fallout: including how to shore up your super right away and make it virtually recession-proof!
- I'll give you proven tips on how to self-audit your super - including the questions you need to ask your fund manager urgently to find out if your current asset allocation matches your risk tolerance and retirement goals.
- I'll expose the secrets and lies your fund manager will NEVER tell you... I'll share all the rumours and whispers from trusted contacts deep inside the Aussie super industry... you'll be astounded when I tell you who has a vested interest in where you invest your retirement cash. Prepare to be shocked... then prepare to act fast!
- I'll also tell you about quirky, interesting and extremely profitable ways to invest for later years - including why a good Bordeaux or a late Picasso could hand you the luxury retirement you always dreamed of... there are hundreds of quirky ways you can invest in your super... without having to buy any expensive assets outright!
Now, after all I've told you about the funds management industry you're probably wondering:
Why should you trust ME
to help reboot your Super?
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What they're saying
about Kris Sayce...
"A very exciting investment - I made $70,000 in only a few weeks. I have also made other gains... We are indebted to you for your knowledge and advice!"
B. McMonagle
"I have nothing but praise for what you are doing and it has helped me immensely in understanding this section of the market."
Geoffrey D. Baker
"I like this guy, he makes heaps of sense... he should be doing Mr Swann's job..."
Carlos Cid
"100% profit is rare and wonderful!! Would not have known about it without your advice! WHAT'S NEXT???"
PF
"I enjoy reading your publications and hope that you may continue to present these stories and opportunities to subscribers"
Bob Buckeridge
"There is no doubt that you acquired a God-like poewr to determine which shares move."
Stan G
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Aside from my background in wealth management stretching back 15 years there are four reasons why you should let me help you whip your super into shape:
- I'm not on anyone's payroll - I'm 100% independent
- I'm not after a cent of your retirement cash
- I take no advertising - so I don't have to pander to special interests like the mainstream press
- What else can you do, starting in the next 2 weeks, to turn this around?
Listen, here's the deal with me:
I'm not a fund manager. I've got no financial products to sell and nothing to be gained personally from how and where you invest your money.
I don't charge any management or transaction fees and every idea, tip or strategy I suggest to you will be above board, step-by-step and delivered in PLAIN ENGLISH.
Of course, I dearly hope you'll stay on as a subscriber to the Australian Wealth Gameplan service after your 30-day risk free trial, but that's entirely up to you to decide.
Don't make any decision just yet though - let me tell you first about how quickly and easily we can boost that retirement pot of yours...
STEP THREE: How to make generate more than enough income for a comfortable retirement
If you've totally underestimated what it costs to retire comfortably in Australia, don't worry.
The next goal of the Australian Wealth Gameplan is to help you create several streams of passive income - things you can put in place now that are PROVEN to make regular money with little effort - yes, even in a recession...
Sign up to trial the Australian Wealth Gameplan service on a 30-day review basis today and I'll send you details of my best, proven, low-risk income generating strategies.
In fact, there's one I like to get you going with straight away!
Let me explain...
Income Stream 1: How to get 12 extra
pay cheques a year for NO extra work...
Despite the recession, a small group of Australian blue-chip firms are continuing to make big profits, as regular as clockwork, from the sale of products that people need. These are mega-businesses who know how to weather a storm. They're not totally unaffected by the economic downturn - they just feel it in the way a sumo wrestler feels a mozzie bite!
And there's a perfectly legal way to get these reputable, blue-chip companies to send you money every few months.
Sounds crazy but it's true: right now, some of the biggest, richest and safest companies in the world are delivering regular cash payments to Aussies on a list I call their "secret payroll".
Can you imagine checking your bank statement to find that a well known global corporation has put more than $500 into your bank account overnight... and you don't even work for them!
Now imagine this happens 12 times a year... Sometimes your payout is $60—$300... other times it's more like $500—$1,000... all "thank you gifts" from some of the biggest firms in the world.
And these companies don't expect a scrap of work from you in return!
You're probably wondering:
Why would a company just
GIVE their money away?
Let me be clear: This clever income generating idea is NOT illegal, unethical or underhanded. You're not stealing or embezzling from anyone.
In fact, the companies in question actively encourage people to join their "secret payroll". And it's not an elaborate, multi-level pyramid or "ponzi" scheme that relies on an influx of new money to pay cash gifts to people on a waiting list.
This is a 100% legitimate and transparent wealth-building technique used by some of the richest and smartest people in the country to generate a regular, tax-efficient, passive income stream of tens of thousands of dollars a year!
I'm talking about investing in companies that pay regular dividend cheques.
| "The only thing that gives me pleasure is to see my dividends coming in."
-- John D Rockefeller
I agree. You will too when you see how easy it is to claim regular money from some of Australia's biggest companies.
Dividends fell out of fashion in the dotcom years because the emphasis was on capital gains from fast-growing technology firms. But recently, investors have rediscovered the appeal of dividend payers. Why?
- Dividends can't be fudged - they have to be paid with real money. And, with markets so volatile, jobs on the line and interest rates at historic lows... real money is important to investors.
- Dividend-paying stocks are no longer considered the laggards of the market. That's because, according to mounting evidence, they're the exact opposite. In a UK study over the last decade, JP Morgan reckons the average share-price growth of stocks that regularly hiked dividend payouts was 12.7%; the market as a whole was 10.3%.
- Dividend-payers are excellent stocks to own in a recession with stocks increasingly volatile. In other words - they're good stocks to own NOW. Dividends contribute to share-price stability. If the share price of a dividend-paying firm falls, it is likely to fall less sharply than a pure growth stock. That's because once the price falls a certain distance, the yield tends to pick up, encouraging investors back in.
There is no such safety net for non dividend payers, as many dotcoms found to their cost in 2000. Right now, a growing number of Australians are getting pleasure from seeing their dividends come in.
You can too - I'll send you six
"secret payroll" picks today!
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Not a new idea by any means.
But now, as other moneymaking opportunities are drying up, investors are again seeing this as a chance to tap into what could be a lifetime of income: money you earn every month without thinking about it, that you can just sock into your retirement fund!
It's easy, it's safe, and it's virtually guaranteed... there are no age restrictions... these are huge companies, so there's little chance of your regular payments drying up... you can join the "secret payroll" of as many companies as you want...
And probably the best part of all...
You get to choose how much these firms
will pay you!
Once you've joined the "secret payroll", you'll know when each dividend cheque is due, and depending on how many shares you hold, you'll be able to modify the size of your payout. Let me give you two examples to show you what I mean...
One Perth-based diversified company, sent out a staggering $754 MILLION in "secret payroll" cheques last year. The year before, it handed out $765 MILLION.
- If you'd bought 1,000 shares in this company in August 2006, today you'd have received more than $6,250 in dividend cheques — in less than 3 years!
- If you'd bought 2,000 shares, you'd have earned more than $12,500.
- And 4,000 shares would have put more than $25,000 easy money into your bank account!
Last year a huge Sydney insurance firm handed out more than $1 BILLION to shareholders. The year before, they shared $805 MILLION with the people on their list...
If you'd bought a stake in this firm just 2 years ago, 1,000 shares would have netted you $3,030 income... 2,000 shares would have put $6,060 into your bank... and 4,000 shares would have made you $12,120 easy cash...
That's on top of any capital gain you make on the shares!
Remember, this is in just 2 years... and also during the biggest recession we've seen in our lifetime.
Now, imagine knowing you were going to receive 12 "secret payroll" cash payments every year - alongside your regular income - for no extra effort on your part? It's like getting an extra salary for nothing!
Well, that's the position you'll be in when you take a 30-day risk-free trial of the Australian Wealth Gameplan service...
Sign up here on a no-commitment basis and I'll show you how to start claiming regular payments from six Aussie blue-chip firms - right away...
FREE REPORT: "How to put yourself on the
'secret payroll' of six big companies"
The special Australian Wealth Gameplan briefing I want to send you - free of charge - reveals how, with very little fuss, you can get on the "secret payroll" of six rock-solid companies right away...
Follow the simple steps in this report and you'll receive 12 retirement-boosting cash payouts from these firms in the next 12 months - and the payouts won't stop there...
The 6 firms on your exclusive "secret payroll" hit list will send you money twice again next year... and the year after that... In fact, once you're on the "secret payroll" those cash payouts keep on coming until
you decide you don't want them anymore!
Each of the firms you'll read about in the report occupies a strong position in their industry. By my analysis they are virtually certain to issue you with dividend cheques twice a year, every year, for the foreseeable future that you can just stick straight into your retirement fund.
Don't forget, you also benefit from any capital gains for as long as you hold these stocks... you can transfer these profits into your super... reinvest them and boost your "secret payroll" payments... even reinvest your dividend cheques to get an even bigger return on your cash!
Standard & Poor's found that over a 20-year period, capital gains on S&P500 stocks in the U.S. would have produced a 381.9% gain... that's pretty good - but reinvesting dividends would have turned that gain into an eye-popping 905.1% windfall!
Imagine that sloshing around in your retirement fund right now...
You can get set up on the "Secret Payroll" of these six companies really easily with one quick phone call to your broker. You can even do it in a few minutes online. All the details are in your free report - "How to put yourself on the 'secret payroll' of six big companies" which I'll send you when you take a 30-day, no obligation trial of Australian Wealth Gameplan. Details on how to do this coming up...
First, there's another virtually ignored income generating technique I want to tell you about...
Income Stream 2: How to make big money
from Australia's smallest companies
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Imagine topping up
your retirement fund
with these profits...
"Awesome, awesome, awesome... where do I start? Wow - I bought [small stock 1] originally at 19c and kept topping up my holdings... who wouldn't have, what a bargain! Total profit = $64,213... Looking forward to your next BUY recommendation."
-- AB
"I took your recommendation and made a nice tidy profit on [small stock 1] thanks to you... a 380% gain in a few months. I'm more than happy to recommend you to anyone..."
-- John
"Kris - what a fantastic profit of $2,800 in just over 2 months. Thank you!"
-- Louie
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I'm trying to show you that there are things you can do now to make sure your retirement is comfortable, happy and fun - so that you don't have to worry about money after years of putting in the hard yards at work. If you're worried about how much cash you'll need when you retire, here's something else you could have a go at now, while you still have time to boost your pot...
I'm talking about making low-stakes "bets" on the best and brightest small companies in Australia, for the opportunity to make big returns. This technique is a little risky, and shunned by many mainstream investors, but it's made me an Average gain of 71.23% on all stocks since March 2007 (yes, GAIN - in the middle of one of the worst financial crises in living memory...)
In fact, since the market low of November 2008, the ASX200 has rebounded by 37.19% while my portfolio of niche, little-known investments is up 132.78%...
These successes include:
- A 65-cent household goods company that has rocketed up 280%
- A 27-cent aluminium ore company that has soared 259%
- A 35-cent Liquid Natural Gas play that has just rocketed 316% in 2 months
- A 32-cent high street specialist retail store has just climbed 78%
You have to admit that's pretty impressive...
With these kinds of gains in your portfolio your super fund losses wouldn't sting quite so much!
Finding tiny homegrown investment opportunities is a real passion of mine. I have more "pocket-rockets" like these in my sights as I write this...
I'll show you how to incorporate this income generating technique into your investment portfolio when you sign up to the Australian Wealth Gameplan. This is not something to bet all your life savings on by any means - but as part of your overall retirement wealth-building plan, it certainly pays to look at this often forgotten area of the stock market.
It pays to know what you're doing before you start chucking your money around in this volatile arena, too - but that's where my research can help!
I'll do what your super fund manager won't
With any investment I recommend I'll provide an in-depth analysis of why the stock is worth a punt, what a good entry price is and a realistic target to take profits at.
I won't just spend huge chunks of your money for you, without telling you, on investments that might be wrong for you. I want to help you understand how these things work, so that you gain more confidence and learn to trust your own plan to provide for retirement.
I'm ready to roll up my sleeves and help you make extra money starting straight away. And I do not benefit at all from any profit you make: I don't want a cent in commissions or kickbacks.
If that appeals, click here right now and claim your 30-day risk free review of the Australian Wealth Gameplan service today.
Or you can have a think about it while I reveal another way Australian Wealth Gameplan can get you closer to what you need to spend on a long, happy and wealthy retirement...
Income Stream 3: How to ensure you actually
make money from your investments
The most important word in investing is "sell".
You only make money from an investment when you sell it.
You can have the biggest 'on-paper' gains in the world. But without that magic four-letter-word, it means diddly-squat. You can't pay a heating bill with an 'on-paper' gain... you can't buy a week's groceries... book a ticket to Europe... or make a down payment on a Subaru Forester.
Lots of Aussies choose their company-approved super option by default - and sit back believing the hard work is done. But if you want a top-performing retirement portfolio the hard work is only just beginning. Timing the moment you decide to sell a particular holding is much more difficult than choosing what to buy - and it's something a broker or fund manager will never tell you to do.
Bottom line: if you are holding a bunch of blue-chip, long-term plays in your super fund you are missing out on several opportunities to sell and take profits from these stocks as you go... profits you could reinvest... pour into other investments for your retirement... take out... or move into cash.
Now, trading in and out of stocks may sound risky. And it is. But the point is this:
Many super funds resemble a train wreck after the last two years. You might be looking at yours in despair wondering how many more years you'll have to stay in work to make back your losses...
You might be trying to figure out how your pension pot is going to give you the $36,607 a year income ASFA says you'll need for a comfortable retirement...
By "trading" your investments you give yourself a much better chance of making back those losses... growing your fund again quickly...
...And getting your retirement back on track!
Part of the Australian Wealth Gameplan service will be dedicated to showing you how to use simple technical indicators to:
- Avoid buying a stock that's 'overbought' - i.e. right at the time people are getting out of it!
- Set what are called "trailing stops" on your blue chip stocks... they trigger the automatic sale of your shares if the price starts to head south - and "lock-in" your profit...
- Trade in and out of a handful of ASX 200 stocks to maximise your profits as you go. This is a fantastic strategy even if you like a particular company and want to hold on to it for the long term. Trading indicators can show you how to 'sell on the peaks and buy back on the dips'.
You buy stocks hoping they go up in value, right?
Well, sometimes they do without you realising it. If you're leaving all the decisions to some other guy, you'll never know if you could have taken a profit, then bought back in when the price drops again.
Simply: trading techniques help you make more money from the stocks you own! Not only that, you can use trading techniques to protect your investments from further market volatility, too.
Again, I'm not saying you should pour your life savings into this or any of the ideas I'll share with you in Australian Wealth Gameplan. But if you want to make back your super losses quickly... and you want to generate an income you can actually live off in retirement you need to know that conservative wealth building and speculation with a small percentage of your assets are perfectly compatible.
If you're interested in finding out more about how to use trading techniques to maximise profits from the stocks you own, simply click here and take a 30-day risk free trial of Australian Wealth Gameplan.
Get started on the income generating ideas I've shown you so far, and you could make a huge difference to your final retirement pot, even before the end of this year!
Can you imagine the weight lifting from your shoulders, knowing that you're adequately prepared for 25-years PLUS of retirement?
This next proven income generating strategy will help...
Income Stream 4: how to generate a monthly
income from stocks that don't go up in value!
Yes, I realise what I just said: "you buy stocks hoping they go UP in value..." But sometimes you can collect income from a share you own, even when its price FALLS!
Before you jump to conclusions, I'm not talking about "short selling". This is a different strategy entirely - much less risky. Let me show you what I mean with a quick example:
On August 1st 2009 let's say you buy 1,040 shares in XYZ Company at $3.19 a pop - costing you $3,318. These are fairly stable shares in a solid blue chip company. This is NOT a wild punt. It would take a minor miracle for "XYZ" shares to fluctuate wildly over the coming months.
At the same time you buy these shares you instruct your broker to take out something called a "one-month covered call option" at $3.36. That's basically saying you don't think the value of XYZ Company's shares will rise above three dollars and thirty-six cents during that month.
Your broker arranges this option at a premium of 13c a share and gives you a $135.20 payout there and then ($0.13 x the 1,040 shares you hold). That's yours to keep.
Now let's say this happens to the share price...
Show me an easier way to
make $135 in a month
So what happens when the contract expires?
If you're RIGHT, and the shares remain below $3.36 as in the example above, the contract expires and you keep the shares. TOTAL PROFIT: $135.20. Not bad for one month's "work"!
If you're WRONG and the shares go above that blue line you are obliged to sell them through your broker at $3.36. But don't worry! Remember - you bought them for $3.19 each - so you're making 17 cents per share profit - that's $176 to you... PLUS you get to keep the $135.20 you made from the contract - that money is yours whatever happens! TOTAL PROFIT: $306.80!
To clarify: you make $306.80 if the shares go up and $135.20 if the shares don't go up. PLUS, if the price doesn't break $3.36, you get to keep the shares so you can do the same again in September!
Instead of a stock paying you a dividend, it's like the market is paying you one. And that's money you can tuck away in your retirement pot, or pour into other investments that better suit your goals.
If that gets your pulse racing I have something to send you I think you'll love...
FREE REPORT:
Market Dividends: How to make
money from shares that never go up!
Take a 30-day trial of Australian Wealth Gameplan and I'll send you a second free report: "How to make money from shares that never go up".
In it, I'll explain in detail the easiest and least risky way to use my "market dividends" strategy to generate a regular passive income.
Plus I'll reveal details of TWO contracts you can take out straight away to get you started - with more to follow each month of your Australian Wealth Gameplan membership. You can take out any number of these contracts... buy two and you DOUBLE your monthly haul!
Don't worry; you won't have to figure out a thing yourself. I'll select companies for you with rock solid share prices... companies with bags of cash... and I'll monitor everything for you, telling you what to do and when.
Your only real risk is that the value of your holding drops beneath your buy price - but then that's the risk you take buying any shares... it's also the risk your super fund manager takes all the time with your money - without you realising it...
So yes, there's risk - but look at the upside: you get paid a "market dividend" when you buy one of these contracts - which doesn't happen when you buy just ANY share... and remember - you get to keep any capital gains you make from these shares too - that's "double bubble!"
I've put all the detail into your free report "How to make money from shares that never go up"... all you need to do to get your hands on a copy is take a 30-day risk free trial of my Australian Wealth Gameplan service.
You can do that by clicking here.
These are just a few of the income generating strategies I believe can help get your retirement back on track, starting this year. You still have time to add to your overall pot - but you need to act fast!
Now, growing your retirement wealth is one thing. Keeping hold of it, as we've seen over the last 18 months, is another thing entirely. And that's where the final part of your Gameplan comes in...
STEP FOUR: How to make sure your retirement wealth is better protected than the Crown Jewels
The financial world can be an intimidating place if you're not sure what you're doing.
You know what you want to achieve, but it's difficult to identify the investments that will make you money and those that will lose you your shirt. And let's be fair, the financial services industry doesn't exactly go out of its way to make things any less intimidating or confusing for you.
It suits these people to let them get on with it and never ask any questions. But you've seen first hand what that approach has achieved over the last 18 months. You can't go through that again.
So the final priority of the Australian Wealth Gameplan is to help you gain a better understanding of your retirement wealth; how to fine-tune it with confidence as you go, and how to protect it from:
- Further fallout from the biggest financial crisis of your lifetime
- Crippling inflation
- Scammers, thieves and con artists
- The grabbing hands of fund managers and the taxman
Listen, you've been trusting the wrong people with your life savings. The simple wealth protection and management skills I want to teach you will help you to start trusting yourself - the only person who REALLY cares about what happens to you when you retire.
All you need to do a much better job of growing your cash than those overpaid guys in the big banks is the right information. Imagine you had the confidence to take control of your own financial destiny... How much happier would you feel then? That's what I can help you with.
Rest assured, none of the strategies and loopholes I'll share with you is illegal. You won't find them on any government website for obvious reasons, but those in the know have been quietly exploiting these legitimate wealth-guarding techniques for decades.
If you want to keep more of your money, these are the kind of strategies you should be aware of.
You'll learn all of them - and more - as a member of the Australian Wealth Gameplan service. Click here to start your 30-day trial, right now.
What you'll get with your trial
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6 core wealth-protection
strategies that will give you the
confidence to trust yourself:
How to ‘recession-proof' your money with precious metals... gold, silver, copper, palladium... these are all great hedges against inflation and the economic downturn. I'll reveal the best places for your money, when to invest and how to give you maximum returns with minimum risks!
The best tax efficient investments and savings in Australia... where are the safest places for your cash... where you can get the best rates of interest... how to arrange your investments and savings to take advantage of tax benefits... when it's best to borrow money to invest... and how you can do it safely!
The best low fee or fee-free bank accounts... Bank charges are scandalous in Australia. They have increased faster than inflation - some are up by 40% in two years! I'll show you the best ways to avoid these fees... plus I'll name and shame the banks that take the most of your money for the "privilege" of being one of their customers. I'll also show you how to reclaim money that's been wrongly taken from you.
How to pay down your mortgage lightning quick... What if you could slash years off this financial prison term? Could you save thousands of dollars a year by going from a fixed to a variable rate product (or vice versa) Could you offset your mortgage against the money in your bank and slash hundreds off your monthly payments? Can converting your home loan into a foreign currency dissolve huge chunks of your mortgage debt in just a few weeks? I'll reveal all of these mortgage strategies in the months ahead...
How to thwart people who have their eye on your money... Bogus phone callers... Boiler room con artists... Ex-wife or husband... Is someone going through your bin bags late at night, gathering information from your receipts they can use to help themselves to the cash in your bank account? Did that barman clone your card when you started a tab in the pub? Is someone in Europe hacking into your bank account right now? I.D. theft costs Aussies more than $2.2bn a year. I'll show you the best ways to protect your hard-earned wealth against those who could whip it away from you in an instant.
Plus many more crafty, easy and profitable loopholes that could save you thousands in the months ahead: how to make a tax efficient will that benefits your family and not the government... how to check if you're being overtaxed on your property investments... astonishing legal tax minimisation tricks that really work... |
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I hope you decide to take a risk-free 30-day review of Australian Wealth Gameplan. If you do, here's a quick recap of what I'll send you:
- A MONTHLY NEWSLETTER: every month I'll email you a downloadable 8-12 page briefing taking you through the Australian Wealth Gameplan step by easy step...You'll get heaps more proven income generating strategies, tips, tricks and ideas... ways to protect your money from tax, scammers and inflation... and clever ways to whip your super into shape so that it builds you a decent sized nest egg you can actually retire on!
- FREE REPORT 1: "How to put yourself on the secret payroll of six big companies". This briefing will show you what you need to do to claim six "profit overflow" payments from some of the biggest, safest companies in the world. They should each pay you twice in the next 12 months. It'll be like getting an extra salary over the next year for no extra work!
- FREE REPORT 2: "Market Dividends: How to make money from shares that never go up"- This is one of the easiest ways to generate a regular income. Remember: you get paid if the shares go up and you get paid if the shares don't go up! I'll reveal details of TWO "market dividends" you can claim straight away...
- WEEKLY EMAIL UPDATE: every weeks I'll fire you an email to update you on our strategy, keep you in the loop about developments to our "secret payroll" positions, or brief you on any new tactics to help you build, safeguard and grow your retirement cash.
So with that in mind...
What will membership of this unique service cost?
There's nothing like Australian Wealth Gameplan out there. That's why it's hard to put a value on this service.
Let me ask you: what would you pay for a monthly gameplan that could help you make several thousand dollars additional income a year... end your money worries after two of the most turbulent years in stock market history... and help you build a retirement to really enjoy?
$500-a-year? $1,000? $2,000?
It would be worth that combined. Especially when you consider what you pay your super fund manager to "look after" your retirement savings - remember, your fees amount to almost HALF of what you take home, based on 20 years of contributions!
That's some nerve...
So it's difficult for me. I could sell the research in your free reports alone for four figures.
But you know what? You've been stung enough already.
So I've decided that a year's subscription to Australian Wealth Gameplan should cost just $299. I think that's a perfectly fair price given what you stand to gain from membership of the programme.
Provided you get cracking on the two income generating ideas in your free reports you should make that outlay back pretty quickly.
Then I had another thought...
We're in the middle of one of the worst recessions of our lifetime. I understand the challenges Aussie workers face at the moment. I felt sick when I saw the APRA super fund league table and I don't want to add to any feelings of despair you might have right now. I certainly don't want the cost of this service to be a barrier to you trying it out.
So for your first year of membership I'll knock a hundred dollars off.
Sign up today and you'll pay just $199 for the year - on the proviso that if the service performs as well as you expect it to, the price will revert back to $299 should you decide to continue into year two of the gameplan.
That works out at fewer than 55 cents a day!
When you look at the help I'm offering you, you really should be snapping my hand off at that price. But if you're still in two minds, maybe this will help convince you...
Pay just $1 today
I want you to be 100% happy that what you're getting from me is the real deal.
So here's my offer...
Sign up today and pay just $1.
That's not a typo.
Look, you can believe that Australia's economy is out of danger if you want. Personally, I think talk of "leading the world into recovery" is way premature, irresponsible and hugely optimistic.
Letting your guard down now could be the worst move you make.
I really don't want you to be in that position.
Please understand: your super is not out of the woods yet. There are still huge, looming risks to your retirement wealth you cannot afford to ignore. The biggest of those risks is inaction.
Now more than ever you need the insight and guidance I can offer you. That's why all I want from you today is one-dollar... less than the price of a latté.
That should spur you into action. In return for that dollar you'll get full access to the Australian Wealth Gameplan archive of wealth generating tips, ideas and strategies, plus your two bonus income reports.
This is the most important decision you'll make all year - maybe even ever... is a happier and more financially secure future worth a buck to you?
You'll also get 30 days to review
everything I send you, RISK FREE
During this 30-day period, have a long, hard think about what you want to achieve wealth-wise over the coming months and years. Think about the kind of retirement you want - and the kind of retirement you want to avoid...
Please - be as cautious as you like. I want you to take a good look at what I'm offering you before you make any decision to stay on as a subscriber.
- If you like what you read and you can see the value in and benefit of having a properly structured, realistic and achievable wealth gameplan, do nothing.
At the end of your 30-day test-drive your card will be charged the balance of the first year subscription cost -$198 - and you'll continue to receive Australian Wealth Gameplan issues, updates and special reports.
- If you decide Australian Wealth Gameplan isn't for you, no problem. Call up my customer services team on 1300 667 481 within those first 30 days and they'll cancel your subscription immediately without question or quibble.
You won't pay another cent... plus all the reports are yours to keep.
Frankly, for $1 anyone can afford to put me to the test.
And I'm confident; once you read through your free reports and start receiving your monthly bulletin, you won't want to miss out in the future - especially if the Australian Wealth Gameplan helps you start generating income straight away.
That's my best offer, so it's 'make-your-mind-up' time...
It's time to decide whether you
want a nest egg or a goose egg
The financial crisis has shown, in the most shocking way imaginable, that personal wealth, built up over decades, can be wiped out in a matter of weeks when the economy takes a turn for the worse.
What was most alarming of all to me is that it didn't take much of a nudge to wipe billions off the value of Australian superannuation funds.
This is REAL money that REAL Aussies - most probably YOU included - were relying on in later years. Now it's gone... and you may not even realise it!
If you're not concerned by this you probably need your pulse checking.
Today I've shown you a glimpse of what your retirement could look like if you ignore what I'm telling you, sit back and do nothing. I've spelled out the acute danger of complacency, of underestimating the cost of a comfortable retirement and of trusting the wrong people with your life savings.
I've also given you some straightforward suggestions for what you can do - starting in the next few weeks - to stop the rot and get your retirement back on track.
I hope you've taken a few of my ideas on board.
But the most important thing you need to take away from this letter is that you absolutely cannot afford another year like the last two.
There's still time for you to get your house in order, but you need to urgently evaluate where your life savings are, what condition they're in and who you're trusting to look after them for you. Remember, every month wasted is a month closer to your retirement.
Why not let me help?
Do something positive now. Click on the link below to claim your 30-day risk free trial of Australian Wealth Gameplan - and your free income generating reports - right away.
Remember - all you pay today is one dollar.
Sincerely,
Kris Sayce
Australian Wealth Gameplan
Calculating Your Future Returns: It's important to remember that in investing you can lose you some or all of your investment money. Please seek independent financial advice regarding your particular situation.
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. The value of any investment, and the income derived from it, can go down as well as up. For any investment, 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. If in doubt of the suitability of an investment please seek independent financial advice.
Australian Wealth Gameplan is published by Port Phillip Publishing Pty Ltd.
Registered Office: Level 1, 10 Fitzroy Street, St. Kilda, VIC 3182
Port Phillip Publishing Pty Ltd (ACN: 117 765 009 ABN: 33 117 765 009) Australian Financial Services License: 323 988.
All content is © 2005 - 2009 Port Phillip Publishing Pty Ltd All Rights Reserved
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