Did you know 82% of Australians will retire on some form of Centrelink benefits?

If all you own WHEN YOU RETIRE is the house you live in, the likelihood is you will be one of those as well. With the Government looking at increasing the retirement age to 70, will there even be a Centrelink system available then.

You have to INVEST if you want to create Personal Wealth and improve your financial situation. There is no better time to start than right now.

So why do people fail?

1. Lack of information or too much information - It used to be lack of information but in the age of Google there is so much information it has led to MOST people being more confused than ever.

2. Leaving it too late - With all of life’s interruptions, before we know it 30 years has flown by and we realise that we need to invest BUT it’s too late.

3. Distraction - get distracted by life; busy with our kids, our jobs, trying to stay healthy……..During this time we put off doing what we know we need to do financially.

4. Procrastination - Have you ever said; I’ll get started after the next pay rise, after our trip to Bali, after I’ve paid off the car, after we’ve fixed up the house. MOST people procrastinate over money matters until just before they are ready to retire and by then its too late, they’ve missed out on all that TIME, which is so important

5. Looking for the “magic solution” - There is no such thing as a get rich quick scheme; It’s a lot easier and safer to get rich steadily.

6. Don’t believe they can - This one is huge; you should have a basic belief and expectation that you will have a high quality retirement – after all you deserve it.

7. They never take action - This is the BIG ONE. It should be obvious, but “If you never take any action, you can’t actually achieve ANYTHING”.

8. Don’t make it a priority - MOST people say that building wealth is one of their top goals, if they are not spending any time or any money on it, is it really a priority? Or is it simply a wish, a hope or a dream?

9. They don’t get help - All successful businesses and successful sportspeople have coaches and advisers, without exceptions. Make sure you enlist the help of someone who does this day in and day out.

Paying your loans and bills on time has taken on A NEW LEVEL OF IMPORTANCE thanks to reforms to Australia’s Credit Reporting System.

On 12th March 2014 a ‘positive’ system was introduced to give lenders more detailed information about a customer’s credit risk and ability to repay debt. Previously, only negative information such as defaults and bankruptcies was held. The new system rewards good repayment behaviour, giving consumers the chance to improve their credit score and borrowing prospects.

Lenders are now able to see the full picture, including how many other accounts their customers have and what credit limits are attached to them. This more detailed information gives lenders a better understanding of whether a further loan would render the borrower more overcommitted. It also means they can distinguish between high and low risk borrowers and potentially offer more competitive products to low risk clients.

Here’s some of the information that will be held in your credit file for debts like personal loans, car loans and credit cards.

• The dates which you opened and closed credit accounts
• Credit card limits and the type of card
• Whether you are five or more days late in paying. This and other repayment information (like whether you have made payments on time) stays on your file for two years.
• If a repayment of over $150 is more than 60 days late, it will be listed as a default. This stays on your file for five years.
• The number of credit enquiries you have made.

A good credit rating is an important part of securing a home loan so the impact of these changes will depend on how well you manage credit.

If you commonly pay bills late by five or more days you might have difficulty obtaining further credit.

If you have a good credit score you can use this to shop around and get the best deals. We can also use this as an additional tool to assist in negotiations with lenders on your behalf.

If you have a black mark on your record, you will at least be given the chance to show lenders that your more recent behaviour indicates that you are, in fact, a reliable credit risk.

The median price was $40,350. That’s right - $40,350. Isn’t it amazing how quickly we forget about what happens over TIME.

Did we think that property seemed cheap at the time – NO – property always seems expensive at the time and CHEAP years later. Do you think there might have been lots of reasons not to buy at that time (interest rates, recession loaming) There are always reasons not to buy.

Do you think we would have been worried we were going to pay too much? Let’s pretend we paid too much – say $50,000. At the time all of our family and friends would have been saying how foolish we were to buy it. Looking back now who was stupid? Sometimes we over analyse. The timing will never/ever be 100% right – the important thing is to be taking action with a long term plan.

PROPERTY IS A GREAT INVESTMENT and should be used for building your retirement nest-egg.

Theses property prices have occurred over a period of 30 years, which sound like a long time, but is anyone NOT planning on being around in 30 years?

Now inflation during that period would have taken the value of that property from $40,350 to $167,093 now, however the average median price of property in Perth is in excess of $450,000 currently, it is very clear property has increased well above the inflation rate. Inflation is the biggest enemy you have over retirement.

Let me tell you a story to explain how retirement has changed over a couple of generations. Your grandparents would have started work between 15 and 20 years of age and probably worked until 65 and then retired. Back then – they would have had a life expectancy of around 72 years, so Grandad would work for nearly 50 years and then drop dead after 7 years – not much need for retirement planning. Fast forward to today.

Many people we see want to stop work somewhere between 50 and 60 – let’s say 55. Currently a couple at the age of 60, has a 50% probability of living into their 90’s. So we are now talking about retirements of 30 to 40 years. If this is YOU then you will need to have some assets built up and ensure that they are growth assets, because 30 to 40 years is a long time to be poor.

We will show you how easy the process can be, how little your investment would cost per month, how we can save you TAX and how this will create Personal Wealth. DON”T work your whole life for money , make your money work for YOU !