You can start small when investing

You do not have to have a lot of money to start investing, with a managed fund portfolio you can start with as little as $1,000 - how to get this - you can even take a cash advance on a credit card and pay it off later - tax deductible interest!

Real life examples:

A client invested $2,000 in July 2000 in a managed share fund 100% Australian Shares Fund.

The client has reinvested all the distributions.

The portfolio is now worth $3,600 (albeit a little less than it was in November 2007).

That makes an average investment return of 11% per annum. Not bad for making the investment, putting "it in the bottom drawer" and going on living life!

A client invested $1,000 in July 2000 in a managed share fund 100% Australian Smaller Companies Shares Fund.

The client has reinvested all the distributions.

The portfolio is now worth $2,073 (albeit a little less than it was in November 2007).

That makes an average investment return of 14% per annum.

Prudent investment provides returns - even with share market ups and downs.

Seize the day!

Regards

Damian Ebzery B.Bus M.Bus AFPA ASA

Funding Retirement - how much money is enough?

If there is one question in many baby boomers minds at the moment this is probably it.

How much you need is determined by a few factors (not an exhaustive list):

• What lifestyle you wish to lead in retirement?
• What age do you intend to retire?
• What does that lifestyle cost?
• What accomodation will you have? Will this add an ongoing cost?
• How much tripping around do you want to do?
• What are your hobbies? What do they cost?
• Remember this is a 7 day weekend - lots of time to fill!
• What is your health like? Will it be a long healthly life? People are living longer, many well into their 80's and more and more into their 90's.
• Will you still have dependant others (children, parents, etc)?

As an example:

A couple who want to retire at age 60 and have an income of $80,000 net of tax over normal life expectancies (mid 80's) would need about $1,000,000. Of course this assumes a continued average 8% investment return from invested funds during retirement.

Where does this put you? It is never too early to start planning and investing - it can be too late!

Happy to here from any retirees out their about how much it is costing them to live each year.

Regards

Damian Ebzery B.Bus M.Bus AFPA ASA

Planning for the end of the financial year

All to often individuals and businesses do not leave enough time to make informed decisions about managing potential tax liabilities and maximising wealth creation opportunities before the end of the financial year.

Last minute rushes have the ability to lead to inappropriate or risky advice as proper review and research has not been done to ensure the best things have been done.

If you are in business - look at your Profit & Loss - if there is a profit at the bottom line then there will be a tax bill for someone. You can look at ways to utilise the profit to cover a tax deductible expense that will add to your long term wealth creation.

If you are a wage or salary earner you can look at paying 12 months interest in advance on a loan to fund an investment portfolio. Getting the benefit as soon as you lodge your tax return.

Once 30 June is reached it is to bad so sad - tax will be payable and an opportunity to create wealth efficiently forever. Make the most of your hard earned income - act now!

Email us at empire@lips.net.au to find out how you can get on the road to a better, wealthier future.

Regards

Damian Ebzery B.Bus M.Bus AFPA ASA

Investing in Property

Investing in even the most basic property now will often require you to go into significant debt, usually bringing the family home into the equation as security on the loan.

We are investigating the opportunity of pooling funds of investors to invest in residential homes and units - fully invested no debt. This would provide a positive income to investors (often with a significant portion tax deferred) to offset against any borrowing cost they may have. You would be investing with between 10 and 20 other individuals via a private unlisted unit trust. The investment time period would be about 8 years - when all unitholders would have a chance to determine whether to sell the property or continue to own it.

If the interest is there we will look at both ungeared and geared trusts.

WHY?

• Only have to come up with between $15,000 and $30,000 to invest (can be borrowed funds).
• Less investment risk, as you can do this a number of times and have exposure to many more properties than you would be able to do on your own without having to take on the huge levels of debt required to establish your own property portfolio.
• Ability to access higher priced properties than you would invidually.
• Benefit from the longer term capital growth possibilities.
• Have an asset to assist funding lifestyle in the future other than your house and a bit of superannuation.
• Benefit from the ability to use tax deductible debt to buy in without having to have your house secured in its entirety.
• Benefit from better investment diversification - not all eggs in one basket.
• Puts accumulation of wealth rather than accumulation of debt as the main aim of investing.

Property and shares both have the ability to increase in capital value over time. Money in a term deposit doesn't, it actually decreases in capital value in real terms due to inflation. Especially if you spend all the income.

Email me at empire@lips.net.au to express interest in this opportunity.

Regards

Damian Ebzery B.Bus M.Bus AFPA ASA