Attention Central Coast - Buy Local Festival the April

Coffee Time Minutes - 9th March

Coffee Time Minutes 11.3.11

Welcome

Welcome to our new visitors.

Apologises

Dean,

Who we are?

Small and Home Business owners meeting to build relationships from other SBO’s.

What is CT?

Relatively casual meeting group, where you can network, talk about business ideas and strategies, and learn from one another.

Where?

Tuggerah’s Zenith Centre.

When?

At 10.30 am on the 2nd & 4th Wednesdays of the month. Arrival 10.25 am for 10.30 am start. (Runs for about 1 hour)

Update on our Raffle?

Coffee Time raised $168.45 this year for the Iris Foundation in 2010.

This year we will continue with our Raffles and donation to Iris Foundation. This year we will do a raffle again for the Iris Foundation. We will be looking for prizes/donations up to the value of $10. Its will be up to you if you would like to participate and none should feel obliged. Tickets will be $2 each, or three for $5.

Updated Members

We have over 105 members for Coffee Time. You can come when you are free, never feel obligated and always feel welcome. I have a list with everyone who has come along to Coffee Time; I am updating the distribution list. If you would like to be included, please check your details are correct, update where necessary and add if not on there.

There are 2 business card holders, please feel free to put your business cards in, these are passed around each meeting, and feel free to support each other and utilize their services.

Networking:
· Coffee Time 23rd March
· Coffee Time 13th April
· Coffee Time 27th April
· Wyong Chamber After Dark – 23rd March
· NSW Business Chamber – Breaki with Ita Buttrose – 25th March
· Success Women’s Networking – 5th May
· Fridays round the coast SBNG – 3rd Friday her at Zenith


Expo’s in 2011
· 29-30 Apr 2011 – Buy Local Festival – Terrigal
Over 100 people/businesses booked in to the festival already. Advertising to start next week on TV, Radio, letter box drop, B2B book, and flyers around the coast.

· 22/6/11 Central Coast Women’s Network – Mingara Tumbi Umbi

Advertising with Buy Local
· B2B – online buy local $22 per month – see B2B or www.buylocalconnect.com.au
· Book now and sign up – and you will get couple of months for free (coffee time members only)

Education:
2011 – Visit BEC upstairs or log on to www.ccbec.org.au
Courses:
· 15/3/11 – Business Planning Part A
· 22/3/11 – Business Planning Part B

Update:
B2B Book went to bed last night, and due out to 20,000 central coast businesses in the next 2 weeks. Keep an eye out for it.
Action Coach is running Business Mastery – Business Cart IV. If interested contact Michelle on 4369 3704
Nights out to meet people on the coast, for singles and couples - Hawaii 5 O Cruise – 19th of March & Dinner at the Yellow Piano 23rd of April– see Events with Pizazz

Wins:

Marama – Saved client lots of money and helped him with his business and website.
Simon – Signed off on a deal with a company and assisted them with saving 40% communications
Michelle – has contributed to a new book that has just come out.
Michelle – Picked up Work Cover Website
Sharon – signed a 6 month lease with Ettalong Markets
Kate - CC Tourism to have new residents pack, and Kate’s events will be in it.
Lyn – Won 2 tickets to the Harbour Cruise on the 19th from Events with Pizazz
Tarnia – spoke at a women’s luncheon.


Who are you & what do you do: 30 Sec story about you

Tarnia Gurney
Gurney Financial Services www.gurneyfinancialservices.com.au
Planningwerx4U www.planningwerx4u.com.au

Michelle Allen
Webstuff.biz www.webstuff.biz

Nicole Lothian
SOS Onsite Admin www.sosonsiteadmin.com.au

Karen Teunissen
CRS Australia www.crsaustralia.gov.au

Tim Close
Close Financial Group www.closefinancialgroup.com.au

Dujon Zivic
Encore 8 www.encore8.com

Dawn
Iris Foundation www.irisfoundation.org.au

Kathy Bree
Coffee News www.coffeenews.com.au

Lyn Thompson
Buy Local online/ LBH Promotions/ B2B www.b2bwithatwist.com.au

Julie McDonald
Julie Mac www.juliemacypnosos.com.au

Marama Carmichael
Essential Wellbeing www.essentialwellbeing.com.au

Kellie Targett
Insurance Advisernet ktargett@iaa.net.au

Toni Fountain
Insight Health www.insighthealthaustralia.com.au

Simon Calder
Celtic Management Solutions www.celticmanagement.net.au

Rob Buckworth
Interactive Telecoms www.interactivetelecoms.com

Jenny Abourizk:
Job Centre Australia www.jobcentreaustralia.com.au

Kate Morris
Events with Pizazz www.eventswithpizazz.com.au

Nicolette Gregory
Photographer & Independent Associate – Usana Health Sciences
onefitone@bigpond.com

Cassandra Parrish
Insight Health – Nutritionist & Wellness Coach www.cassandraraparrish.com.au

Michelle Bambridge
Action Coach www.actioncoach.com

Michelle Kavanagh
Central Coast Photo Balls www.ccballs.com.au

Bill Annesley
Central Coast Business Coaching Centre www.ccbusinesscoaching.com.au

Sharon Calder
Coop Handcrafts

Jo Thompson
Destiny By Choice www.destinybychoice.com.au


Presentation

Today’s presentation is about Social Media – By Michelle Allen of Webstuff.biz

Promotion of business through Face Book page.
Have a separate social profile
Have a business page where people can like, but make sure you have protection for your personal page
Company Pages/Business Pages
Interesting links
Interesting articles
Encourage business to business
Encourage and support businesses and charities
Promoting businesses
Sell your brand
BEC has vouchers for $20 – for a appointment with Webstuff.biz to meet with the team and discuss your Facebook/social media marketing
Work with your community
Face Book is world wide
Linked in is more for businesses and professional people
Twitter is for messages.
Add join us on twitter, Facebook or linked in on your website (good way of building your data base)
Central Coast Business Networking & We love our Central Coast Region Face Book pages – promote your businesses and meetings, like it.
Like other businesses on Face Book – helps promotion – e.g. – BEC, B2B, LBH Promotions, Gurney Financial Services
Link your business page through your personal profile
Post something every day or every week.
Twitter a message – forward to your Facebook. E.g.: Tarnia twitters a message; it goes through to Face Book, Linked in and My Space. She has different people on each of them
Make sure you have a website. Make it fresh and inviting

Today we raised $59 (included in total for year). Thanks for your support. Today’s winner was Toni Fountain, who won 1 ticket to the value of $65 for the upcoming Hawaii 5 O cruise from Kate at Events with Pizazz.

Thanks to Iris Foundation and Kathy from Coffee News who have donated a prize for the next 2 meetings. Feel free to donate a prize.

Planningwerx4u has Business Planning Cds for $50 each, if you would like one please let Tarnia know.

Michelle from Webstuff.biz has her books available - $29. Please contact her if you would like to purchase one.

Thanks and see you next time

NEXT MEETING: 23rd March 2011
Presentation – Health and Wellbeing

15 Rules for finishing off the day

15 Rules For Finishing Off The Day

1. Clear, clean-up and tidy your desk – by clearing your workspace you will enable you to start the new day with a clean slate in all respects.

2. Try to have only one working or project on your desk at any one time, ensuring you to focus your attention on that one activity.

3. Throw unnecessary paper in the bin – get in the habit of removing rubbish and unwanted paper from your desk each day. This will also assist your ‘clear desk policy’ if that works for you.

4. Put files away each day – keep files off your desk unless you are working on them. It is not good for office security to have valuable company information available to anyone who might wander past your desk. Place them in locked cabinets or drawers.

5. Adjust your priority on tasks for the next day. What may have been B minus today can become A double plus tomorrow

6. Check the time of your first appointment the next day – if you know what your first commitment for the day will be, you can plan the rest of the day around it. It also allows you to book travel time to that appointment and any preparation you may need to do beforehand.

7. Start your “to do” list for the next day – carry over important tasks form your current day’s list, add new tasks for the following day and your planning will save you a few minutes the next morning.

8. Put your reading file in your briefcase – start a reading file and carry it with you to read on your way home on public transport or while you are in a queue – you can get through your reading easily if you carry it with you and make the most of each opportunity,

9. Wash your coffee cup or empty your water bottle – start each day afresh by cleaning up the night before.

10. Switch your phone on voicemail if appropriate – if you are not going to be in the office until later the next morning, this will allow any early morning callers to leave you a message.

11. You may like to change your voicemail message if you are not going to be in the office the next day to advise callers where they could reach you or an alternative number.

12. Get those final email messages and memos out tonight, not tomorrow. Rule number one of business momentum is to have other people busy for you, not the other way around

13. Switch off your computer, screen and printer – be environmentally friendly and save power and money where you can.

14. Remind yourself of your achievements of the day – take a minute to remind yourself of what you achieved in your day. You may like to record it in a journal or diary. Celebrate your success

15. When you switch off, switch off! Let go and go home

Thanks to Jim Prigg and the team at the Financial Services Sales Academy www.financialservicessalesacademy.com.au.

GFS - Helpful tips to reduce your debt, & manage your finances

Gurney Financial Services
Helpful Tips to reduce your Debt, Get out of Debt and Manage your Finances and Family Better.

Work out how much debt you have?
How much owes on the mortgage, credit cards, personal loans, car loans.
Set some goals to pay them off.
What are the minimum payments per month on the loans?
Can you pay extra?
How much can you save per week?

Work out how much to pay each week.
Example is, if the monthly mortgage is $2,578 or $30,940 per year, work it out weekly. That means that the payment weekly is $595 per week, but if you can pay back $600 per week, which is an extra $5/week, you can possibly reduce your mortgage by 3 – 5 years.

Did you know making weekly payments is better than monthly payments as it can reduce the interest each month?

Try and Save 10% of your wage each week, even if it is $20 or $50. Put into a savings plan eg: ING, Bank West, etc, savings account where you have it deducted each week from your normal account and cannot deduct anything unless you ring up or transfer via the internet. This helps you build your wealth. Also it has compounding interest, usually paying daily.

Track your spending, and find extra money to pay down the loans and debts. Write a list for a week of where you are spending money.
Example - $150 on food at Coles, $60 on petrol, $13 on Magazines, $80 on Cigarettes, $80 on Restaurant, $20 McDonalds, $100 on Sport. Then at the end of the week, work out what was necessary. Are you spending your food money on Junk foods or take away meals?

Did you know buying items on special or it bulk can save $100’s of dollars a year?
Example: Go to the butchers and buy 2 kilos of mince or chicken when on special, and throw into the freezer to use when needed. Go to your local fruit and veg shop where you know the fruit is fresher and lasts longer than at the supermarkets. Watch for specials, 2 for one, buy 6 for $2. But make sure they are items you will use and will save you money. There is no use buying 10 cans of Spaghetti for $4.00 if the family wont it spaghetti.

Write a shopping list for when going shopping. Do not impulse buy?
If you take a list, you will be more conscience of keeping to the list. If you cannot afford it – YOU CANNOT HAVE IT!

Learn how to play the credit card game. Always pay the minimum payments so that you do not get caught up with the debtor. Making sure you pay on or before the due date to stop late fees, and try not to over draw your credit cards.

Credit Cards – before you buy something, ask your self, do I need this. Can I afford to pay the $20 interest per month for the next 12 months for an item worth $50 now? Why not put it on lay-by and save up all that extra non essential spending each week and pay it off.

Christmas and Birthdays – go to the sales, put items on lay-by and pay off. July and January have the sales. Put items on lay-by, even if it is for the birthday 5 months later. Once you have paid it off, then you can put it away till you need to give it.

Did you know that if you pay $10/day off your loans or credit cards, then you can pay off your debt quicker? By saving the $10 a day on lunch or coffees and if you put this money aside, then you can make extra payments to your debts.

Spend time with family and friends: Go for a picnic or go to the local park with the kids. Spending time with family and friends can be worth more than money can buy and it can be cheaper than going to the movies. Take the kids to the Skate Park and take a drink and food with you, the kids will love it as you are doing something with them, honestly they don’t need everything bought for them, just you.

Kids Weekend Sport – take drinks and snacks, most parents are spending between $5 and $50 per weekend at the kids sporting games. As a treat support the local sausage sizzle, but don’t buy every week. (you can always buy a box of soft drink from the supermarket when on special and then take it with you – the kids wont mind)

Pocket Money - Teach your children to respect money and YOU. Times are hard, families are struggling, but if you teach your children to earn their pocket money rather than hand it out anytime, they will respect it more and you. Children these days understand more with what is going on with family debt and finances, and probably more than you realise. So sit down and explain to them, they cannot have the new play station game or Barbie doll this week. But maybe they can help around the house and earn some pocket money. Even if it is $1 a week, give them a list of chores they can do, like making their beds, and tidying their room, setting the table. This will help and teach children to respect their belongings, themselves and others. They will have an appreciation of things better if they save up and buy it themselves than giving it to them. We all want to give everything, but we have to realise we cannot.

Petrol – try to buy on Tuesday or Wednesday mornings. It is not only cheaper on these days; you get more petrol into your tanks due to it being colder in the mornings.

Expenses to Consider for Family and Business Insurance & Financial Planning

Expenses to consider for Family and Business Insurance and Financial Planning


When considering insurances you need to look at a variety of information and expense. It is not only paying the mortgage but buying the food, kids sport, etc. So when thinking of which expenses to cover, remember everything you can to help you more.

Some examples are:
Repaying debts:
Credit cards,
Personal loans,
Mortgages,
Business loans,
Family loans

As well as:
Cost of Weekly food and petrol
Monthly Bills – rates, electricity, insurances
Kids schooling – sport, uniforms, excursions, shoes.

Other considerations are:
Any capital gains tax or personal taxes due
Funeral Expenses:
Church/parish/cemetery
Costs related to burial,
WAKE - get together afterwards

Emergency 50% of annual income to cover expenses

Children’s education

Some thoughts can also be towards about 10 x annual salary – which is income for about 10 years.

Letter to my local member in relation to commissions

Hi David,

I hope you are well.

As you are my local member I thought you might be interested in this article and might be able to assist or put through to someone who is making the decisions for this.

If the government gets rid of all commissions and adviser fees and puts in place all the proposed changes, then Australia will see many financial planners will be leaving the industry as they won’t be making any money for their services. That means there could be up to 14,000 private advisers (not including the bank advisers) in our country looking for work, including their staff of lets say 2 per adviser of about 28,000. That’s a lot of people out of work if they have to close businesses.

Another point, Financial Planners will just have to charge an hourly rate for advice, my rate is $177/ hr, others are higher, so many consumers will not be able to afford the majority of financial planning services, and will do it themselves, pushing them into misinformed decisions.

Even with the governments My Super, as well as the industry funds and any retail fund, consumers still need to get advice from somewhere and they still have to pay for this advice. As it is not allowed to be provided due to Financial Planning laws by superannuation companies or industry funds.

I agree with the revamp of the financial planning industry to protect consumers, but what about financial planners, who is protecting them. Financial Planners spent many years and spend thousands of dollars studying to help others, they have small businesses, they support the local community, and they have loyal and supportive clients. What about the financial planner’s livelihood? A lot of advisers have moved to the adviser fee base, rather than the commission based system. However this is going to put a lot of strain on advisers and their businesses, with the proposed changes.

For example, I like may other advisers rebate all super and investment commissions and just charge an adviser fee, this is payable from the super fund to the adviser each month. These fees cover my costs, my emails, mail outs, reviews, appointments, seminars, my staff & their taxes and their super, education for clients, business expenses. If the government and the revamp committee have their way, and they push through a opt in and out adviser fee clause. It will be a huge problem. This clause means that each client will have to sign a new form each year to say yes they want a fee and assistance. What happens when clients decide they don’t want to pay but want the services? Who pays then? The government? I don’t think so.

I know you’re not the person to have a whine to, but I would appreciate if you can escalate this email to others who are not in my industry but are making decisions for me.

Maybe if instead of the Government and the Committee pushing the Cooper and Henry report and the government supporting everything in it, maybe they can look at the big picture and explain to consumers what these changes mean and why. Financial planners have a hard enough time dealing with the controversy the Industry funds put out there, and now we have this to explain and decipher.

One thought I have is, the Government employees – PM’s, MP’s, Party people (Lib & Lab), etc have a great superannuation benefits, and have large pensions and yes they may pay for some advice, so why are they being more supportive of UNION Based INDUSTRY funds, and Changes to financial advice and not being supportive of retail funds or Financial Planners.

AS FOR THE ARTICLE:

You will all find this article prepared by Zurich very interesting reading and puts an alternate view to the many being espoused by certain associations, vested interests, union controlled industry super funds and media commentators.

There is absolutely no doubt in my mind that you would get the same result about financial planning and investment consumers if the questions were put to them in the same unbiased way.

The problem we face is our destiny is being shaped by non advisers and people who do not actually work in our business and with our clients on a day to day basis. Consumers want commissions so what is driving the pressure for change.

Loss of a commission option for consumers is a loss of their given democratic right and the loss off or restriction on choice always means they will pay a higher cost. Pity that doesn’t seem to mean anything to some people who are not directly impacted.

Regards Tarnia

Gurney Financial Services 5th Birthday Celebrations & Seminar

Gurney Financial Services 5th Birthday and Seminar

Welcome to Gurney Financial Services 5th Birthday and Celebrations. I would like to thank you all for coming along tonight.

I have been in the finance & financial planning industry since 1995, working 8.5yrs for MLC, and then I went to work for a financial planner before starting my own business. When he downsized, I then worked for various other financial planning businesses on the Central Coast and Newcastle whilst I built my business

5 years ago when I started my business, I thought what I could do to help others in my community. Gurney Financial Services prides itself on assisting families with budgeting, debt management, superannuation consolidation and management and the implementation of insurances to protect the family, income and lifestyle.

We started in 2005 and in our first year we had 6 clients, we now have around 85 clients and managing about $2 million in super for those clients. We are also working with approximately 50 prospective clients assisting them in budgeting and sorting out their financial affairs.

We have set up the GFS website and a blog for out clients and potential clients to visit for any further information. There is a lot of free information on there for you to download, so feel free to have a look.

At GFS our clients get the same quality and professional service whether you have a $1 or $200,000, and we pride ourselves on being able to do this. No one gets lesser service, everyone is equal, and no one is discriminated.

In 2008, we brought in our Annual Service Agreement, where each client is offered an annual face to face review to revisit their financial situation and goals. If you have not taken up the opportunity to have an annual review, please feel free to contact our office to organise an appointment at a suitable time, or see me tonight.

Tonight, we have 3 presentations and I would like to personally thank them each and individually for coming along to talk to you all.

The first presentation is from Lyndall James from ING, she will be presenting on “An Economic Update”.

Our Second presentation is from Michael Bonnet from MLC, he will be presenting on “Protecting your Family”.

And our last presentation is from Brett O’Malley from Macquarie Private Wealth and he will be presenting on “Share Investing”.

We also have two of team here tonight – Natalie and Nicole, and I would like to personally thank them for their support to GFS.

Dean Brown is also here from Woodview Homeloans and Finance. Dean is the preferred mortgage broker for our clients. We now have a referral system in place where both Dean’s and my clients receive a complimentary appointment.

Again, I would like to thank you all for coming along tonight. Please help yourself to drinks and food.

Lyndall James - ING Presentation
Economic & Asset Update – August 2010

Global Overview:
• We saw global economic uncertainty continue in July, with:
• Disappointing data out of the US.
• Further signs of a Chinese economic slowdown.
• Lingering concerns over government debt levels and the need for major developed countries to significantly wind back budget deficit and debt positions.
• Forecasts cut for global growth, mainly driven by a somewhat more lacklustre US economy.
• On the upside we were surprised by some economic data out of Europe.
• We saw a positive start to the new financial year, with share markets gaining ground as confidence returned, albeit cautiously.

USA:
• Recent data has shown the economy to be weaker than the consensus was previously expecting. In particular - housing, employment and inflation numbers.
• Housing recovery appears to be easing early – sales are at their weakest since March but are still running faster than one year ago, up nearly 10%.
• Employment levels across the country have declined sharply since May – much of this weakness appears to relate to the discharge of temporary census workers.
• The Conference Board Index of leading economic indicators fell by 0.2% in June – suggesting the pace of the US economic recovery will slow in the coming months.
• Await release on Friday of the second estimate of June Qtr GDP growth

Australia:
• In Australia the key piece of economic data released was Quarter 2 CPI.
• Inflation rose by just 0.6% in the June quarter, well short of consensus (+1.0%) this is in line with RBA’s target rate
• RBA has left interest rates unchanged for 3 consecutive months (4.5% May)
• Tighter interest rates have dampened consumer spending over recent months - Retail sales advanced just 0.2% month-on -month following a similar gain in May.
• Building approvals fell 3.3% in June. Annual growth has now decelerated sharply to 13.2% down from more than 50% earlier this year.
• Money tightening, end of first home buyer subsidy
• Unemployment rate lower
• Hung parliament – Coalition – 3 independents are conservative, mining tax, business sector

Europe:
• Eurozone economy has weakened – GDP expanded only 0.2% in Quarter 1, 2010.
• Economic data out of Germany has surprised - exports have risen 29.2% over the past 12 months, unemployment has fallen for 13 consecutive months and industrial production has risen 12.4% on an annual basis.
• A weaker Euro continues support the region.
• Results from the stress tests conducted by the European Central Bank (ECB) on the region’s banks to measure the banks ability to withstand any further significant economic or market shock helped calm markets over July - only seven of the 91 EU banks failed the stress test, with one German, one Greek and five Spanish banks.
• Unemployment rate now at 10% - highest since late 1990s.
• Inflation has eased rapidly – economic growth stagnant.
• Banking system is weak – high debt and rising defaults.
• P.I.I.G.S. (Portugal, Italy, Ireland, Greece, Spain)
• US $1.3 trillion of debt
• Highly risky if contagion occurs
• Will drag on European economy for many years.

China:
• China’s manufacturing grew at the slowest pace in 17 months in July.
• The government clamped down on property speculation and investment in energy -intensive and polluting factories.
• The Purchasing Managers’ Index fell to 51.2 from 52.1 in June, the Federation of Logistics and Purchasing reported.
• A slowdown in industrial production led to the overall Gross Domestic Product (GDP) measure of growth easing to 10.3% for the June quarter.
• The rate of inflation also moved lower, with the Consumer Price Index (CPI) rising by 2.9% over the year to June, down from 3.1% in May.

Interest Rates:
• Interest rate movements in the major global economies were unchanged in July.
• The Reserve Bank of Australia left the official cash rate on hold at 4.5% in early August for the third consecutive month and issued a very neutral statement signalling rates could be on hold over coming months.

Important information:
The information contained in this presentation is current as at August 2010 but may be subject to change. It is for the use of advisers only and may only be reproduced with the prior written consent of the issuer. It is intended to be general advice only and has been prepared without taking into account a potential investor's objectives, financial situation and needs. The presentation has been produced by ING Australia Limited (ABN 60 000 000 779) and does not represent a recommendation or opinion by the ING Group to purchase, hold or vary any financial product. Performance figures in this presentation may have been calculated before fees and taxes. ING Australia Limited does not guarantee the repayment of capital or investment performance and potential investors must always read the current Product Disclosure Statement (PDS) for the relevant financial product and must consult with a financial adviser before making any investment decision. Past performance is not indicative of future performance. From May 2002 until late November 2009, ING Australia operated as a joint venture between the global ING Group (ING) and Australia and New Zealand Banking Group Limited (‘ANZ’). ING Australia is now wholly owned by ANZ but has a licence from ING to continue using the ING brand while it transitions to a new brand – expected to be by late 2010.



Michael Bonnet – MLC Insurance
Streetwise Insurance Solutions

- MLC provides Insurance for families and individuals.
- You can have insurances within and outside super.

- Life Cover
+ Guaranteed Insurability
+ Accident Benefit

- Total & Permanent Disability
+ Optional Total and Permanent Disablement protects you when your income dies, but you don’t
+ Buy back options

-Trauma
+Protection against a critical illness – such as stroke, heart attack, liver replacement, cancer. See PDS for conditions covered.

- Income Protection
+Covers up to 75% of your income/salary
+ Sickness, accident or injury

- What is Wealth Creation?
>Family business
>Commodities
>Bonds
>Shares
>Property
>Investment policies
>Low risk investments

- What is Wealth Protection?
>Health Cover
>Salary Protection
>Car Insurance
>House & Contents Insurance
>Business Protection
>Savings Accounts
>Family Protection
>Emergency funds
>Long term savings – Superannuation

- Home Fires –
+ For every home lost to fire
+ There is 3 homes lost through death
+ And 48 homes lost through disablement


Would you like your children to go out to work for you to pay the bills, the mortgage? Or would you rather have them study and get the best out of life.

- Salary Protection – also known as Income Protection or Salary Continuance
+ Many people insure these assets, yet, all too often they don’t adequately protect what is potentially their greatest asset – their ability to earn an income.
+ Take a moment to consider what could happen to your lifestyle if you were unable to work for an extended period due to illness or injury.
+ Your expenses could quickly run down your savings. You may even need to sell your investments to make ends meet.
+ By taking out income protection insurance you can protect your greatest asset and avoid putting your family’s lifestyle at risk.
+ If you suffer an illness or injury and are unable to work, income protection insurance can pay you a monthly benefit (usually 75% of your pre-tax income) to replace lost earnings. You can generally claim these premiums as a tax deduction.
+ You can choose a range of benefit payment periods, with maximum cover usually up to age 65.
+ You can also choose a range of waiting periods normally between 14 days and 2 years.
+ You can also have insurance linked through your superannuation to save you extra premiums

If you didn’t have an income how would you pay your bills (mortgage, schooling, rates, electricity, food)
>Sick leave with work
>Holiday pay at work
>Workers compensation – waiting times for payouts and sometimes part payments
>Centrelink benefits – sickness benefits – if approved.
>Selling personal items – jewelry, furniture, garage sales.


· One in three Australians are at risk of becoming disabled for more than 3 months before turning 65. 1

· Australian insurers paid $697,677,939 in Income Protection claims in 2008.2

· In the 12 months up to 31 March 2008, MLC paid more than $49.4 million to Income Protection policy holders alone!

- Best Doctors

+ Founded in 1989 by Harvard Medical School Professors
+ 20 Years Operational Experience
+ 160 employees in 10 countries
+ Global database of over 50,000 doctors
+ 300 corporate clients covering more than 15 million customers in 30 countries
+ Over 50,000, peer nominated, leading specialists world-wide
+ Top 3-5% of doctors in any country
+ 40 specialities, covering over 400 subspecialties
+ Doctors are re-polled every two years and ongoing quality assessment
+ This is the only service like this in Australia!

Available to you and your family IF you have a current MLC Trauma/Critical Illness policy
For more information please contact your financial planner or have a look at the MLC website - http://www.mlc.com.au/

Important Disclaimer
This presentation is intended to provide general information only and has been prepared by MLC Limited ABN 90 000 000 402 AFSL 230694, MLC Investments Limited ABN 30 002 641 661 AFSL 230705 and MLC Nominees Pty Limited ABN 93 002 814 959 AFSL 230702 and National Australia Bank ABN 93 002 814 959 AFSL 230686 without taking into account any particular persons objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain financial advice specific to their situation before making any financial investment or insurance decision. MLC Limited, MLC Investments Limited, MLC Nominees Pty Limited, 105-153 Miller Street, North Sydney NSW 2060, is a member of the National group of companies. MLC Limited is the issuer of the MLC MasterKey Annuity,MLC Personal Protection Portfolio and MLC MasterKey Protection Essentials.MLC Investment Limited is the issuer of each the MLC MasterKey Unit Trust and MLC MasterKey Cash Management Trust. MLC Nominees is the issuer of each MLC MasterKey Superannuation, MLC MasterKey Business Super, MLC MasterKey Allocated Pension, MLC MasterKey Term Allocated Pension, MLC Life Cover Super MLC MasterKey Protection Essentials Super. National margin Lending is a facility provided by the National Australia Bank. Information about in each of these products is contained in the current relevant Product Disclosure Statement (‘PDS’) or other disclosure document for each product, copies of which are available upon request by phoning the MasterKey Service Centre on 1800 029 799 or on our website at mlc.com.au. None of the MasterKey products or services represents a deposit or liability of the National Australia Bank and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. National Australia Bank does not guarantee the capital value or performance of any MasterKey product or service.



Brett O’Malley - Macquarie Private Investing
Investing in Shares

+ Macquarie Private Wealth assists clients with information and assistance in purchasing and managing a portfolio of shares.
+ MPW – provide financial advice to clients who are looking to purchase shares.
+ Provide daily updates and outlooks on markets, performance, shares to buy, sell and trade.
+ They have a qualified research team behind them to provide quality advice.
+ Brett is a Private Client Adviser and is ASX Accredited Derivatives Adviser (Level Two)
+ MPW are about Finding appropriate solutions to help clients create and manage wealth is how Macquarie's advisers have built their reputation.
+ Through Brett you can access the resources of the Macquarie Group.
+ Brett can be your central point of contact for investment opportunities to help grow your portfolio.
+ A world of opportunities, whether you're looking for personal advice on listed securities assistance with asset allocation, portfolio construction and investment selection, overall investment planning or trade execution, Brett can help you achieve your goals.
+ Access to market leading research, Brett excels in providing his clients with insightful and up-to-date information working very closely with Macquarie's highly skilled research team to guide recommendations on potential investments. Brett also has direct access to strategic wealth managers to help select appropriate investment structures for your personal or superannuation investments.
+ Experience Brett has more than12 years of experience as an investment adviser. His knowledge spans a diverse array of portfolios including, income and growth focused strategies for investments within personal, superannuation and pension funds. He can also help you identify and implement investment strategies including where appropriate:
Providing you with access to IPOs and Macquarie sponsored stock placements; Gearing to potentially increase returns; Alternative asset classes to diversify your portfolio; Capital protected investments to protect your wealth; and warrants and Exchange Traded Options to achieve income and potentially minimize the impact of market volatility on your holdings.
+ Brett can help with administration, coordination and management of your portfolios to help you be in a position to take advantage of movements in the financial markets.


Contact Brett on:
Tel (02) 9425 6028
Mobile 0414721 900
Email Brett.OMalley@macquarie.com

The information contained in this email is confidential. If you are not the intended recipient, you may not disclose or use the information in this email in any way and should destroy any copies. Macquarie does not guarantee the integrity of any emails or attached files. The views or opinions expressed are the author's own and may not reflect the views or opinions of Macquarie.

Disclaimer
Gurney Financial Services (ABN 85 296 598 954) is an Authorized Representative of Sentry Financial Planning AFSL (247 105) ABN74 099 029 526. Gurney Financial Services Financial Planning Licence 292206. We have not taken into account any particular persons objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation and needs. We recommend investors obtain financial advice specific to their situation before making any financial investment or insurance decision.

This information contains confidential and privileged information intended only for the use of the above named recipient. Any other recipient is requested to notify us immediately by telephone so that arrangements can be made for the return of the transmission to us. That privilege will not be waived, lost or destroyed by reason of a mistaken transmission.

Gurney Financial Seminar - May 2010

Welcome and thankyou to my presenters that have come up from Sydney tonight.

Our first Speaker is Lyndall from ING. Lyndall is presenting us with an Economic Update.

• Economies drive growth!
  GDP = Gross Domestic Product - The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. The GDP report is released at 8:30 am EST on the last day of each quarter and reflects the previous quarter.
  Economies drive markets and investment returns
  
  
• GDP
  The growth engine
  Consumer Spending +
  Exports +
  Imports -
  Government spending
  Business Investment
  
  The Resources boom in Australia has helped the GDP
  
  Economy Overview – Where are we now?

USA

• Financial markets have been preoccupied with Sovereign stress
• China tightening monetary policy
• Financial sector taxes and re-regulation
• But overall data reading overall positive
• US Economy has moved out of recession:
• GDP at 5.9%
• Manufacturing Index in expansion level for the 6th straight month
• Retail sales are higher – but off as lower base
• Challenges:
• Housing market still weak
• Inflation numbers indicate a weak economy
• Biggest challenge to sustainable growth is high unemployment rate – will weigh on consumer spending
• Fiscal fade – no more government handouts
  

Europe

• Eurozone economy has weakened, GDP expanded only 0.1%
• France was the strongest, up 0.6%
• Germany, the largest economy in Europe, has stalled
• Manufacturing overall remains weak
• Unemployment rate now at 10% - highest since late 1990’s
• Inflation has eased rapidly – economic growth stagnant
• Banking System is weak – high debt and rising defaults
• P.I.I.G.S – (Portugal, Italy, Ireland, Greece & Spain)
• US $1.3 trillion in debt
• Highly risky if contagion occurs
• Will drag on European economic recovery
  

China

• GDP very strong – 11.9%
• Underpinned by domestic demand (consumer spending, housing construction)
• Investment growth has been robust
• Export growth now rising 40% pa above consensus expectations of 30% pa
• Fiscal stimulus of over a trillion CNY has lifted the economy
• But now scaling back due to concerns about excessive growth and inflationary pressures
• People’s Bank of China has put in place more restrictive lending
• Measured approach should ensure economy is not at risk of ‘policy over-kill’
  
  Australia
• Australia has avoided a recession
• Government fiscal stimulus (infrastructure spending, housing and consumer grants) has supported Australia through the financial crisis
• Asian growth has ensured demand for commodities remains strong
• Exports and imports have been strong
• Stronger AUD and high interest rates (relative to other countries) has attracted investment into Australia
• Unemployment peaked at 5.8% - currently at 5.3%
• House prices are now higher – boosting confidence through wealth effect
• Inflation remains tame for now
• But conditions are changing
• Fiscal fade is beginning to be seen
• Monetary policy tightening continues in 2010-05-12
• RBA has implemented it 4th rate rise in 6th months
• Official cash rate now stands at 4.25%
• High debt a concern as interest rates rise:
• Debt has rocketed to above 150% of disposable household income
• Interest paid is - 11% of disposal income and is expected to increase further
  

Economic Summary

• Large debt economies will continue to hurt for some time
• Economies continue to present us with risks
• Sovereign risk – government debt blow-outs, P.I.I.G.S
• China tightening - doesn’t want inflation problems down the track
• Balance sheets still fragile with lending to companies still tight
• The realty of debt:
• High debt economies mean low growth
• Low debt economies means high growth

How does this outlook affect you?

• Why do economics matter?
• Economies drive investment markets
• Investment markets drive investment returns
• Investment returns provide income for future needs
• Investment markets are:
• Volatile – so a long term strategy is needed to accumulate wealth
• Forward Looking – you cant make investment decisions based on historical returns (e.g. 2008 v 2009)
• Risky – economic recoveries and growth don’t occur in a straight line – expect some turbulence

How can you safeguard your future income in turbulent markets?

• Market Volatility
• Not a concern if you have a long term investment horizon – because returns average out over time
  Critical if you are about to retire soon and need to protect your savings.
  
  
  Thanks Lyndall, a very informative presentation.

Our next presentation is from Michael Bonnet from MLC on Insurance and protecting your family.

• What is Wealth Creation?
  Family business
  Commodities
  Bonds
  Shares
  Property
  Investment policies
  Low risk investments
  
• What is Wealth Protection?
  Health Cover
  Salary Protection
  Car Insurance
  House & Contents Insurance
  Business Protection
  Savings Accounts
  Family Protection
  Emergency funds
  Long term savings – Superannuation
  
• Victorian Fires -
  How many people had there homes insured?
  How many people had there life insured?
  
• Home Fires –
  For every home lost to fire
  There is 3 homes lost through death
  And 48 homes lost through disablement
  
• Case Study – a few years ago now, Michael’s friend was 16 yrs old, with dreams of going to uni to be an engineer. At the age of 16 his father died and he quit school to provide for his mother and 2 sisters. Mother went back to work part time, but due to not speaking much English, and older generation, she is in a low paying job, hard manual labour and can only work part time. She is not well herself. He has one sister in Uni and the other sister in High School. They lost their family home, and now rent. Michael’s friend is still labouring in his 20s now, and still at home supporting his mother and sisters as the main bread winner.
  
• Would you like your children to go out to work for you to pay the bills, the mortgage? Or would you rather have them study and get the best out of life.
  
• Salary Protection – also known as Income Protection or Salary Continuance
  
• Many people insure these assets, yet, all too often they don’t adequately protect what is potentially their greatest asset – their ability to earn an income.
• Take a moment to consider what could happen to your lifestyle if you were unable to work for an extended period due to illness or injury. Your expenses could quickly run down your savings. You may even need to sell your investments to make ends meet.
• By taking out income protection insurance you can protect your greatest asset and avoid putting your family’s lifestyle at risk.
• If you suffer an illness or injury and are unable to work, income protection insurance can pay you a monthly benefit (usually 75% of your pre-tax income) to replace lost earnings. You can generally claim these premiums as a tax deduction.
• You can choose a range of benefit payment periods, with maximum cover usually up to age 65. You can also choose a range of waiting periods normally between 14 days and 2 years.
  You can also have insurance linked through your superannuation to save you extra premiums
  
• If you didn’t have an income how would you pay your bills (mortgage, schooling, rates, electricity, food)
• Sick leave with work
• Holiday pay at work
• Workers compensation – waiting times for payouts and sometimes part payments
• Centrelink benefits – sickness benefits – if approved.
• Selling personal items – jewelry, furniture, garage sales.
  
• Critical Illness pays a lump sum for certain medical illnesses. For example – stroke, heart attack and stroke. (conditions apply)

For more information please contact your financial planner or have a look at the MLC website - www.mlc.com.au

Thanks Michael, very informative and interactive.

Our last presentation for the night is from Angela Anthony of Anthony and Associates, Erina on Estate Planning.

• Estate planning is the process of planning for after death
• It is putting the right funds to the right hands at the right time
• Planning of your estates future
• Will - where your affairs go
• Power of Attorney – Act on your decisions
• Guardianship – act for you medically
• Wills – are where you put can request certain items to go to family.
• Need to review your will and estate, especially if blended families, divorced, second and third marriages and children – including adopted, step and half siblings
• If you have a business – you need to state what is to happen
• Understand and know of anyone you may think they can challenge your estate
• Executor – some one who distributes your estate – make sure it is someone you can trust
• Make decisions sooner than later. When older health and mental status can change or decline
• Testamentary Trusts – for children so that funds can be managed for them – whether under 18, disabled, addictions, etc.
• Wills are set and forget
• Change your will when getting married, having children, divorce
• Make sure the right funds go to the right people
• Update your beneficiaries on your bank accounts, Superannuation and insurance policies
• If you have no will, the husbands estate passes to the wife
• If both pass and no will, then you die “instate” and then the government steps in and sets an executor who will distribute the estate
• Involve your financial planner, and accountant
• Discuss with your family
• Make sure you do binding nominations with your superannuation and update every 3 years
• Think about heirlooms – jewellery, stamps, collections, assets that you wish to leave to a certain person
• Enduring Power of Attorneys – someone who is able to make financial and legal decisions for you
• Enduring Medical Guardianship – someone who is able to make medical decisions for you
• Where don’t you want your assets and money to go to?
• Update your will if you get married or divorced or have children
• Not all assets will become part of your will. Example – property as joint tenants go to the surviving partners
• If you complete a will kit, get a solicitor to check over it. And have it witnessed correctly
• Downside of doing your own – no legal advice
• When you complete a will with a solicitor you get advice and assistance with the decisions and wording.

Open discussion was held with questions and answer session for everyone.

Thanks Angela that was lovely,

Thank you to everyone who came along. Hope to see you all at our next event.

Disclaimer: The contents of this publication are of a general nature only and have not been prepared to take into account any particular investor’s objectives, financial situation or particular needs. Where this publication refers to a particular financial product, you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product. We also recommend that you seek professional advice from a financial adviser before making any decision to purchase any financial product referred to in this publication. While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.

Your Financial Plan is only as good as its cover

Your Financial Plan is only as good as its cover

Most people agree that they are organised and have their family’s budget up to date. However, the process they use is generally simple and down-to-earth – it is unlikely to of a long-term financial solution.

What does financial planning look at -
The best method to create wealth over the long term – for you and your family – is to look at different aspects. These include budgeting, superannuation, insurance and investments.
To avoid confusion, we recommend the right place to start is with a licensed financial adviser.
Your financial adviser can implement strategies for you and your family. These will create, protect and build a succession plan of the wealth. They are the building blocks of a plan that stands the test of time.

Why have wealth protection strategies?

Financial planning is more than just about saving money. It is also about managing future risks.

The common belief “It won’t happen to me” results in many people having a south plan for wealth creation – but not an adequate plan to protect the very things that generates the wealth – themselves!

It is worth remembering that no matter how much expert advice you receive or how astute the money management – your financial plan cannot prevent the risk of you suffering early death or extended time off work through serious illness or injury. In addition, where that leaves you and your loved ones in the future depends on the wealth protection strategy you have in place at the time.

At Gurney Financial Services, we believe that you should protect your wealth whether you are starting a new job next week or moving into a new family home next year. The underlying fundamentals are the same – protection plays the pivotal role between the creation and succession of your wealth.

Creation Of Wealth – is about making your money grow and keep your plan up-to-date. To make sure the pieces are skilfully put into place for your family, it is a good idea to link up with a professional financial adviser.

Your adviser will work with you to:
Identify what type of lifestyle you want and when you want to achieve financial independence.
Make a saving commitment the will help you reach your goals, yet is affordable enough to maintain your lifestyle.
Develop a strategy to build your retirement nest egg.

Create a portfolio of investments that reflects the risk level and potential returns you desire.
Seek opportunities that are tax effective.
Review your plan regularly. Updated annually or when your circumstances change. This way you will always be able to take advantage of your family’s changing situation and goals, as well as differing economic or legislative environments, and new products or services

Protection of Wealth is about protection you assets and making your financial plan secure for you and your family in the long term.

Your financial adviser should look at the whole picture – your needs, wants, and desires – to ensure your treasured plan is covered by a sound insurance strategy that:
Protects you, your family or your business against a range of uncertainties.
Supports you and your loved ones in the event of disability, illness or premature death, so that:
Your mortgage or debts can be paid out
Lost income is replaced
Capital is available to continue funding your investments
An income stream is provided so that your lifestyle, and your family’s, can be maintained.

Succession of Wealth is about picturing what is important, realising your goals and properly managing your future, as well as your families.

Your financial adviser will help you decide on the best way to structure your financial plan, to enable you and your family to:
Control your accumulated wealth.
Maximise income during your retirement years.
Implement estate planning and business succession strategies.
Provide efficient, tax-effective transfer of assets.
Reinforce your family’s sense of security and certainty.
So what level of cover do you need?
Use this simple guide to weigh up how much life insurance you might need to adequately protect your wealth.

Naturally, it is best to discuss this fully with your financial adviser to get a professionally balanced assessment of your coverage requirement. As a basic guide, you need to take into account the rising cost of living and other miscellaneous expenses, which you may incur.

What are the risks? Is your financial position, enough for you to be able to stop working tomorrow? While most people are not in a position of such luxury, the death or disability of a breadwinner could have you pondering this very question.
If your income stops, it can have devastating results for your financial plan and can jeopardise your family’s future financial security.

The unfortunate aspect of death or disability is that it can happen at any time and has more far-reaching consequences than just the person involved has.

Finding the right cover

Your financial plan will be created especially for you and your family – to keep it working over time; you need a cover that fits perfectly.

To unlock the right combination of insurance products on offer, you should ask your financial adviser to explain their benefits, pricing and reliability…..and then consider the insurance provider’s reputation.

(information for this article has been courced from MLC)

Happy New Year and Welcome to 2010

Happy New Year and Welcome to 2010.

Well where did the last year go?

Gurney Financial Services is in its 5th year this year and we look forward to assisting more families on the Central Coast again this year.

We specialise in family budgeting, superannuation consolidation, implementation of adequate insurance and debt management.

We look forward to educating our clients and hope with the knowledge our clients recieve, that they will become comfortable and secure in their decision making and planning for their families, lifestyles and retirement.

If we can help you or someone you know, please contact us at www.gurneyfinancialservices.com.au

Get your Estate Planning in Order - 10 Second Insurance Checklist

Get your estate planning in order!

The 10 Second Insurance Checklist!

1. Does your income protection policy still reflect the income you are currently earning?

2. Will your house insurance pay you enough to rebuild your house?

3. Will your life insurance pay off all your debts and be able to support your dependants if you are no longer around?

4. Has your car been modified in any way?

5. Have you recently installed security devices or extra locking systems on your home that could reduce your premium?

6. Have you changed jobs and not informed your insurance adviser that your new occupation is less risk or no more manual work. These changes could reduce your premiums?

7. Assignment of a personally owned insurance policy into a DIY super fund is not allowed, this ‘in specie’ transfer could render your fund ‘non complying’

8. If you have given up smoking for more than 12 months you could change your policies to non smoking status and save substantial premiums.

Using a Super Fund to Save on Insurance Premiums

If you are self-employed, or you have a spouse who is on a low income, you can save on the cost of life insurance premiums by buying insurance cover through a superannuation fund rather than as a separate 'ordinary' policy. In some cases, this strategy can reduce your premiums by almost 50%.

Usually super funds will offer insurance to fund members against death, as well as total and permanent disability (TPD). Some funds also provide additional insurance to protect against loss of income and temporary disability.

How Does The Strategy Work?

The same tax deductions and offsets that apply to superannuation also apply to insurance purchased through a superannuation fund. If you’re self-employed, you can claim a tax deduction on your super contributions, irrespective of whether the contribution is used to purchase investments or insurance. Similarly, if you are making super contributions on behalf of a non-working or low income spouse, you may be able to claim a tax offset of up to $540 p.a.

These tax benefits can make it significantly cheaper on an after-tax basis to insure through a super fund rather than through a non-super insurance policy. All you need to do is nominate how your contributions are to be allocated between the superannuation fund and the insurance policy.

The Benefits

· The amount saved via deductions and offsets can be used to increase your level of insurance cover.
· This strategy is ideal if you have a young family and you’re looking for financial protection.

Case Study

Andrew (age 43) is a self-employed professional married to Vivien (age 40). The couple are raising a young family and Vivien also works part-time. Andrew and Vivien both have super and separate insurance policies for death and TPD insurance in their own names. Andrew is currently paying premiums of $1,337 a year, while Vivien is paying $815 a year.

To claim a tax deduction for premiums on Andrew's insurance cover and a spouse offset for the premiums on Vivien's cover, they arrange their existing insurance cover so that it is provided through their respective super funds.

Being self-employed, Andrew can claim a tax deduction in his annual tax return **. His marginal tax rate is 46.5%.

By contributing $815 on behalf of Vivien, Andrew can claim an 18% offset in his annual tax return (Vivien is assumed to be earning less than $10,800 p.a.). (18% rebate available on a maximum contribution of $3,000)

By changing their insurance arrangements, Andrew and Vivien have a combined saving of $795 p.a.

Tips & Traps

Insurance cover purchased through a super fund is owned by the trustee of the super fund who is responsible for paying benefits.

All lump sum death benefit payments made to a dependant will be tax-free.

If you are self-employed, you can claim a tax deduction on 100% of contributions up to $50,000 (or if over 50 you can contribute up to $100,000pa over a transition period which ends 2012).

You could also reduce the cost of life insurance via a salary sacrifice arrangement. Instead of having separate insurance and paying premiums from after-tax salary, you could have the insurance through your super and pay the premiums from pre-tax salary.

As super funds get a tax deduction for death and disability premiums there should be no contributions tax charged on these premiums.


The advice contained herein does not take into account any persons particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a Financial Product persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information provided. Persons doing so, do so at their own risk. Before acquiring a financial product a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

Refinancing

Before embarking on this route you should be clear about what you hope to achieve by refinancing as it may involve the time consuming task of shopping for finance and the nerve-racking ordeal of interviews.

The most common reasons for refinancing are to:
1. Upgrade Your Home.
2. Reducing Total Interest Costs.
3. Reducing Monthly Repayments.
4. Tapping Into Home Equity.

Home Upgrade:
Upgrading your home provides the ideal opportunity for refinancing as in most situations you are upgrading to a more expensive property and borrowing to cover the shortfall.

** If you currently have a fixed loan and are upgrading your home, it is an ideal opportunity to switch to a new fixed lower rate or a variable loan.

Reducing Total Interest Costs:
If interest rates have fallen since you first obtained your home loan, consider refinancing your fixed rate loan to take advantage of the new low rates.

You could also reduce interest costs by refinancing regardless if loan rates fall, by having a shorter term even though your monthly repayments may be higher.

** Refinancing would reduce your total interest bill and perhaps reduce your monthly repayments.

** Make extra payments whenever you can to reduce your mortgage debt and save interest.

Reducing Monthly Repayments:
You can refinance your loan to reduce your monthly repayments by extending the repayment period. For example, if you have already paid off five years on an existing mortgage, refinancing a new loan on a 30year period will reduce your monthly repayments.

** By switching to a variable interest rate, if you have an existing fixed rate mortgage, it is possible to reduce your monthly interest payments.

However, if the interest rates rise again, your monthly repayments will also increase.

Tapping into Home Equity
For many people, their home is their biggest asset and source of savings. The improved value of your property and the amount you have paid off on your mortgage can be put to work for you, to borrow money.

You can refinance with a new mortgage that is larger than your remaining balance or obtain a home equity loan.

** Consider negotiating with your current lender. They may be willing to offer concessions on costs, etc. in order to retain you as a customer.

Credit card interest rates are usually higher than mortgage rates so you may save money by paying off your cards.

**If you have other debts such as credit cards and other loans, it may be cheaper to incorporate these into your mortgage

The Cost of Refinancing

The time it takes to recover the costs of refinancing should be short enough to make it worthwhile. If you think you will only be in that house for three to five years and it will take you five years to cover the costs of refinancing, then it probably is not advisable to refinance.

** Make sure you fully understand the fees that you will pay both going into and getting out of the loan.

The cost of refinancing can be considerable, particularly if you are exiting a fixed term loan. You may incur costs for ending your current loan and costs for starting a new loan such as:

· Break costs - terminating a fixed loan (perhaps thousands of dollars);
· Early termination charges - ending a variable rate loan;
· Mortgage discharge fee - an administrative cost;
· Mortgage stamp duty - on your new loan (varies from state to state);
· Valuation fees - to establish value of property to be refinanced;
· Lender’s Mortgage insurance - if you are borrowing more than 80% of the value of the property;
· Ongoing fee - monthly cost for having the loan;
· Establishment or Loan Application fee - cost for applying for a loan.

** Keep accurate records of all repayments, and check your lenders statements regularly for errors.

** Allow for an extra 1 or 2 percentage points when budgeting for repayment. Interest rates have a habit of changing.

Finally:

** Don’t compare loans based on interest rate alone. This won’t tell you exactly how much you will save on your total interest repayment compared with your current loan. You should also compare refinancing with getting a second mortgage, an equity line of credit or not refinancing at all.

We will be more than happy to refer you to a mortgage broker!

The advice contained herein does not take into account any persons particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a Financial Product persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information provided. Persons doing so, do so at their own risk. Before acquiring a financial product a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

What to expect when you meet withGurney Financial Service

In the beginning…
After your initial contact with Gurney Financial Services, you will be asked to complete a personal questionnaire; this will assist and prepare you for your first appointment. It will also allow you to put together any questions, issues or thoughts you might have on financial planning or your financial future.

Your first appointment will be of a relaxed nature, where you will talk about your current financial set-up, and then look at where you would like to be in a year, maybe five, ten or even twenty years time. You will also discuss how you feel about investment risk and other information your adviser needs to prepare a comprehensive plan for you. You will be fully informed of the costs before you make any commitment to proceed.

Some topics that are covered in your first appointments will be:
o Budgeting: working out what is going where, and why.
o Savings: for debt payments, purchases, holiday’s education, retirement.
o Debt Management: how to get out of debt.
o Superannuation: looking at your current superannuation, and making sure it works for you, consolidation of superannuation products, investing into the correct investment allocation.
o Insurance: what is needed for you and your family, debts and lifestyle?
o Estate Planning: making sure your financial affairs are in order

If you own a small business, then we also look at the requirements for you as an employer, and in relation to superannuation and protection for your employees.

Before a strategy and plan is put together, Gurney Financial Services will provide you with some general information and quotations for you to think about, as well as their fees and charges. On your approval, we will then go on to the next stage which will be to design a personal and strategic holistic plan for you and your family and business.

Develop the strategy
Your adviser will view your financial situation from every angle to produce a complete financial plan. They will then present it to you in person and in writing. At this stage you can fine-tune your plan, making sure that you are perfectly comfortable with the potential outcomes.

Implementing your plan
When you’re happy with the plan, your adviser will set the wheels in motion and ask you to authorise any paperwork required.

Your adviser will prepare and follow up all documentation until completion, where you will be informed in writing that this finalised.

Keep it fresh
Your financial plan will need to be adjusted regularly to sustain the changes in your life, be they around your goals or your financial situation as well as changed in investment markets and legislation. Your adviser will discuss the level of ongoing service you require as well as costs.

Gurney Financial Services provide Annual Reviews, regular updates which include general information from the market place, aswell as personal touches. We believe in relationship building, and as a client of Gurney Financial Services, our mission would be that we would work with you to create a financial lifestyle that you and your family desire.

Gurney Financial Services, Looking after you and your family.

If you would like to meet with a representative of Gurney Financial Services, please contact us and we will be excited to meet with you, at your place or mine.

Kind Regards


Tarnia Gurney

insurance - who needs it

Insurance who needs it?

Did you know?
Ø Each year there are more than 10,000 house fires
Ø A vehicle is stolen every seven minutes in Australia
Ø Of the working population, one in six men and one in four women are expected to suffer a disability from the age of 35 to 65 that causes a loss of six months or more from work.
Ø That in 2008, the key 13 insurers, for term life, total and permanent disablement, trauma and income protection, paid out a staggering $3,045,333,112 - that's
$12 million a day!!

Ten Second Insurance Check

Ø Are you the sole income earner? Yes / No

Ø What is your total annual income?
o Less than $20,000
o $20,001 to $40,000
o $40,001 to $60,000
o $60,001 to $80,000
o $80,001 to $100, 000
o $100,001 +

Ø What are you total debts?
o Less than $100,000
o $100,001 to $250,000
o $250,001 to $500,000
o More than $500,001
o
Ø How many dependent children do you have
0 1 2 3 or more

Ø Could your partner pay the bills if you could not work? Yes / No

If you could not maintain your lifestyle without support during illness or injury, please contact Gurney Financial Services or your financial planner

Dollar Cost Averaging

You don’t need to predict the future to build wealth in investment markets. You can make money by simply investing a fixed amount at regular intervals over a period of time. You can also take the guesswork out of trying to pick the right time to buy and sell, and not have to worry about putting all your money in the market at the one time. This strategy is called ‘dollar cost averaging’ and it can help you to turn the ups and downs of investment markets to your advantage.

Dollar cost averaging is a simple concept that works really well when investing on a regular basis via a managed investment. Assuming you invest a set amount each month, your money will buy more units when the unit price falls and fewer units when the unit price rises.

Things to be aware of:

Investing in shares or property (either directly or via a unit trust) allows you to access the potential for long-term capital growth.
An easy way to implement this strategy is to pay-yourself-first (i.e. invest a fixed amount of your salary each month before you spend your money on other things).

You can purchase units in a unit trust automatically by arranging to have money transferred directly from your nominated bank account or your salary. Direct Debit is available through most financial institutions and fund managers.

By reinvesting your income to purchase additional units, your regular investments can benefit from the power of compound returns.

To accelerate the creation of wealth, you could consider installment gearing, which allows you to supplement your regular investments into a managed fund with regular draw downs from an investment loan.


To find out more information you should speak to your Financial Planner.

The advice contained herein does not take into account any persons particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a Financial Product persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information provided. Persons doing so, do so at their own risk. Before acquiring a financial product a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

Superannuation

To provide an insight to why the government has placed enormous importance on superannuation in recent years, consider the following facts:

Today: There are six taxpayers to every one pensioner.

15 years time: There will be an estimated three taxpayers to every one pensioner.

In the past it was automatically assumed that when you retired from the workforce you would receive the age pension. With an ever increasing and aging population, the availability of the pension cannot be relied upon. People are also retiring earlier and living longer and this means that more and more people are going to have to fund for their own retirement.

Whilst the government has legislated to address this issue with the introduction of the superannuation guarantee levy, in most cases this will not be enough. This all means that you need to pay closer attention to your superannuation savings and the level of performance, security and flexibility offered by your current fund. You must review or make plans now to self fund your retirement.

While superannuation can be transferred between superannuation funds you should be aware that contributions to superannuation are almost always compulsorily preserved. This means that they generally can not be withdrawn until you are over 60 (or over 55 if you were born before 1 July 1960) and are retired.

Superannuation is one of the most tax-effective ways of saving for retirement. The earlier you start, the longer you have to invest towards your goal and the lower the amount you may need to invest on a regular basis.

When you invest regularly, you will enjoy the effects of compounding. Compounding occurs when income earned on your savings is re-invested, so you earn money on your initial capital, as well as on any income you have already earned.

How to choose a superannuation fund?

Portability – make sure that if you get a new job, you can invest the contributions from your new employer into the same super fund. This will save you opening another account and paying more fees.

Rollover facilities – make sure that when you retire, you can rollover your lump sum into an allocated pension or term allocated pension account.

Insurance – you should be able to easily access insurance for death, total and permanent disability and income protection through your superannuation fund.

Communication – you should expect to access your account information online and on the phone.
Fees and charges – these may apply when you make contributions, during the investment phase, and when the money is paid to you. Make sure you are fully aware of all relevant fees on your account.

Flexibility - can the fund accept spouse contributions; are you limited / charged to switch investment options?

Investment Choices – are there not only single funds i.e. Shares, but also Multi-Manager Funds to invest your money in?

Superannuation is a savings vehicle for your future.



The advice contained herein does not take into account any persons particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a Financial Product persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information provided. Persons doing so, do so at their own risk. Before acquiring a financial product a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

Boost Savings and Save Tax

It’s a fact – we all need to take responsibility for funding our retirement. So if you are looking for a simple and tax effective way to boost your retirement savings, you may want to consider a strategy known as salary sacrifice.

Salary Sacrifice involves getting your employer to contribute some of your salary, wages or a bonus payment directly into super – before tax is deducted at your marginal rate (which could be up to 46.5%). The advantage of this strategy is that salary sacrifice super contributions are taxed at a maximum rate of 15% - a potential tax saving of up to 31.5%.

By implementing this strategy you can save on tax and make a larger investment for your retirement.

To use this strategy you will need to make an arrangement with your employer that is prospective in nature. In other words, you can only sacrifice income that relates to future performance. When sacrificing regular salary or wages, the agreement should commence on the first day to which the next pay period relates.

However, you may only salary sacrifice a bonus payment to which you have no previous existing entitlement. In practice, this means the arrangement must be made no later than the day before the employer determines your bonus entitlement.
In both cases, it’s also important to have the agreement thoroughly documented and signed buy both parties.

You need to be aware:

· A salary sacrifice arrangement may result in a reduction in other benefits such as leave loading, holiday pay and Superannuation Guarantee contributions, as these benefits are often calculated on your base salary, you should check with your employer.

· Salary Sacrifice contributions must be preserved until permanent retirement after reaching your preservation age or a condition of release. So you need to ensure you have sufficient investments outside super if you plan to retire before reaching your preservation age.

· If you’re an employee (and your assessable income plus reportable fringe benefits are less than $58,000pa) you may also want to consider making a personal after-tax super contribution of $1,000. This may enable you to qualify for a Government co-contribution of up to $1,500.

· Although it is possible to sacrifice salary below the minimum entitlement under an industrial award, employers should be aware that they may still be required to provide the minimum salary or wages under industrial law.




The advice contained herein does not take into account any persons particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a Financial Product persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information provided. Persons doing so, do so at their own risk. Before acquiring a financial product a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

Debt Management

To take control of your debt, the first thing you should do is a budget. This will allow you to see exactly how much you are earning and spending. It will also show where you are overspending and possibly where this expenditure can be reduced.

If the burden of debt is starting to take control of you, for some people to consolidate all of these debts into the one loan would be the best solution. Consolidation allows you to lower your overall interest rate and more easily manage your debt.

Loan consolidation will save you interest where your new repayment and loan term are at least equal to your total current loan repayments and loan terms. Otherwise, you could be converting your short-term debts into longer-term debt and be paying more interest in the long run.

One option is to use the equity in your residential premises. If you have owned your home over the last few years, with the fuelling property prices you are likely to have the capital to cover your existing mortgage, as well as other loans and credit cards. You would need to refinance your home loan which usually offers more competitive interest rates than Credit Cards and Personal Loans.

By paying less interest, more of your repayment can be used to reduce the debt. This assumes that you maintain the same overall repayments.

You should ensure that your existing home loan offers the features and flexibility to repay sooner rather than later.

To ensure you take control of your debts:

Review all your debts regularly;

Close credit card and store accounts and have the discipline not to obtain more. Don't buy on credit; you are only using money you don't have.

Credit cards can work well and to your advantage, as long as you use them correctly. Only use the interest free period.

If you find yourself on the credit card round-a-bout, (that is every time you pay some money off you credit card you go out and put more on it), you have to STOP. You are spending more than you're earning.

If you do retain a credit card then ask the institution to reduce the limit to the minimum needed - this should be what you can comfortably repay each month.

Every time your statement arrives pay twice the required amount. Realise that you can do without it. If you don't stop using credit you will ALWAYS be in debt.

Resolve to spend money where it makes sense and cut back where it doesn't, paying particular attention to cash and expenditures. Your cheque book and credit card statements reveal big-ticket items, so that monitoring daily spending for a while may show where your money is slipping away in ways that don't give much satisfaction.

Most importantly a disciplined approach is needed to ensure debts are not increased to fund unnecessary purchases - a good rule of thumb is that your liabilities should not exceed your assets - if they do - it probably means you have borrowed for the wrong reasons.

Remember IT IS NEVER TOO LATE to take back control.

Review your spending patterns and curb these to fit within your budget!

The contents of this blog are of a general nature only and have not been prepared to take into account any particular investor’s objectives, financial situation or particular needs. Where this publication refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product. We also recommend that you should seek professional advice from a financial adviser before making any decision to purchase any financial product referred to on this website. While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.

Tarnia Gurney (ASIC No. 292206) trading as Gurney Financial Services (ABN 85 296 598 954) an Authorised Representative of AFG Financial Planning, Australian Financial Services Licensee Number 247105, ABN 74 099 029 526.

Budgeting Skills For U & Ur Family

Planning your Financial Future

Step One. Financial Analysis – Goals, where you want to be: 1, 2, 5 and 10 years

Step Two: Budget planning – bills, rates, mortgages, savings

Step Three: Debt Consolidating – get rid of bad debt – maybe refinance

Step Four: Minimise Risk – Fixing loans, consolidate and diversifying super

Step Five: Investment Portfolio – looking at: Superannuation & Cash Investment

Step Six: Plan Protection – Insurances:Personal – Life, TPD, Trauma, Income Protection
General – Home Contents, Building, Car,Health – Ambulance, hospital, dental, etc

Step Seven: Estate Planning – Wills and Power of Attorneys.

Step Eight: Wealth Creation - Investment property & Share investment

Step Nine: Monitoring or Reviews

The contents of this blog are of a general nature only and have not been prepared to take into account any particular investor’s objectives, financial situation or particular needs. Where this publication refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product. We also recommend that you should seek professional advice from a financial adviser before making any decision to purchase any financial product referred to on this website. While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.

Tarnia Gurney (ASIC No. 292206) trading as Gurney Financial Services (ABN 85 296 598 954) an Authorised Representative of AFG Financial Planning, Australian Financial Services Licensee Number 247105, ABN 74 099 029 526.