26 Giffard Street
Williamstown 3016
Ph. 03 9397 7275
Fax. 03 9397 1734
Mobile. 0428 310 165
Email. reidcont@tpg.com.au
ABN: 65 111 801 079
www.reidconsultants.com.au

1st April 2006

A fancy concept, what does it mean?

It is simply recognising the stages that we progress through in the normal life cycle and identifies appropriate wealth creation strategies available to us during these periods or cycles. It looks at balancing the needs of now so you can live the lifestyle that you want with the reality of the future , where you decide or are able to stop the 9 to 5 job or career and your income stream ceases.

What are the generic stages?

Student

young, single, no debts (yet), limited income and low expenses (probably living at home), saving to buy a car.

First Job

the exciting future, young, single and working, first career job earning more money than they have been used to, how to spend that money, looking at moving out of home.

Two incomes, no kids

a significant time of life, ability to afford a lifestyle and thinking about saving for a home together.

Young family

the new born has changed your lives, great joy but perhaps two incomes are now down to one, less time for you and additional costs.

Children at school

school fees are kicking in, especially if private schools are being used, incomes may go back to one and a half or even two incomes again, but it never seems enough.

The kids finally leave

this is a time to commit to your future, costs are lower, you are at the peak of your income earning career, what do you need to do?

End of work approaching

the decision looms, continue to work because you cannot afford to retire or are there alternatives to still create additional wealth or income streams?

Time to live

if you have planned and acted well, then you are one of the estimated 5% of the population that is financially independent. If not, there are still options to consider increasing your lifestyle above that of a frugal government aged pension budget imposed life.

Why should I give any thought to this now?

Established fact, over 70% of Australians will rely, either in part or entirely, on the government aged pension in retirement. This pension is designed as a safety net, set at 25% of the average weekly wages, 25%, being approximately $13,000 per annum for a single and $22,000 for a couple per annum. The Association of Super Funds of Australia (ASFA) December 2005 survey found that a modest lifestyle costs $17,826 for a single (Housing – ongoing only – not including repayments) and a comfortable lifestyle costs $34,560. It is a significant difference in lifestyle to that afforded by an aged pension.

What does it cost?

Firstly

• your time and effort to consider what you want for your future for yourself and your family.
• you will need to dig up some financial information, income details, pay slips, superannuation statements, etc. and work out what your income is currently spent on – a budget. There are a number of web-site budgets easily available ( www.choice.com.au – under money and Rights, has a free online calculator).
• you will need to list down what financial assets and liabilities (what you own and what you owe).
• you will need to consider what lifestyle you want to lead now and in the future based on your current and expected future income.

Secondly

• you pay for my time and expertise. If it involves a mortgage re-finance, then any upfront commission due from lenders is deducted from that investment. All fees are clearly stated upfront and agreed on before we proceed.

What do I need to do now?

Simply contact me for an initial discussion, dig out the financial information so I can get an overview of where you are at and decide how I can assist you and your family.

This first discussion is at no cost and is obligation free. It is done so that you can be comfortable with me as a person and professional and that the service I provide is what you are after and need to do for the future. It will enable you to see what benefits are possible and for me to see if I can assist and be able to set the framework in terms of the time it will take and the cost.

What difference will it make ?

Compare the lifestyle of retirement at 65 or older and surviving on the government aged pension, which is set at 25% of the average weekly wage, perhaps supplemented by some superannuation income (but not enough) compared to the possibility of retiring early or retiring on a comfortable retirement income stream of 50% to 70% of your current income levels.

Can anyone achieve this?

It depends on where you are now financially, what choices you need to make, how long you are going to continue or need to work for and what stage you are in the life cycle. It is possible to increase your wealth or lifestyle at almost any stage, whether it is sufficient for what you desire is the question to be answered. We can map out and model the possibilities and options available to you.