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RETIREMENT MONEY MANTRA

Let's imagine there are two guys - Let's call them John & Bill.

John has a plan that says that at the age of 55, he will accumulate enough ASSETS (net of debt) to produce an annual income of $70,000 so that the money never runs out & keeps up with the rising cost of living. #Money #Business #Savings #Investments #Retirement #CostofLiving #Bills

To achieve this objective, John only needs an annualized return of 8% on his investments.

Bill on the other hand, has NO PLAN. He has a random "investment" that supposedly generates a 300% return in a haphazard way. Due to Bills unplanned & sporadic approach to his future, Bill runs out of money at the age of 71.

'Does it matter if John only gets a 8% return?'

Moral of the story: in the world of money the best question is NOT how much return can I get?

Rather, the best question is what do I need to do to have enough money each year, so my money never runs out & keeps up with the cost of living.

- Ron Malhotra

Call Madhu on 0425 341 086 for financial advice tailor made to suit you. Read more related topics on our Facebook page or read other related blogs here.

Did you know that for loans <85% of home value (PLUS LMI), we don't require genuine savings?

 genuine-savings

Acceptable forms of genuine savings for  LMI loans (genuine savings) 

▪ Personal savings (copies of bank statements over minimum of three months)
 
▪ Term deposit (copy of statement, certificate showing funds held in the customer's name over a minimum of three months)
 
▪ Sale of real estate (property must be held in the name of at least one of the borrowers; exception to this is property held in a company name with the loan in the name of the directors)
 
▪ Sale of shares in publicly listed companies (shares must be held in the name of at least one of the borrowers)
 
▪ Equity from an existing property (property must be held in the name of the borrowers and is evidenced via loan statements and a rates notice)
 
▪ Sale of assets other than real estate; proof of sale must be provided to indicate the asset was in the name of the borrower (i.e.. car title transfer)
 
▪ Work bonuses or commissions; evidence provided in line with income verification requirements.
 
▪ Tax refund; evidence provided by tax return or bank account credit transaction
 
▪ Inheritance; held by borrower for minimum of 3 months
 
 

Given below is an example of how genuine savings is calculated:

▪ Purchase owner occupied property $450,000, COS held
▪ Deposit paid and receipt from a licensed real estate agent $10,000 held and dated 10/09/2016
▪ 5% genuine savings required is $22,500
▪ Assessment conducted 15/10/2016
▪ Savings account statements held from 01/07/2015 – 01/10/2016 showing savings of $30,000 accumulated during statement period with debit of $10,000 on 13/09/2016
▪ 5% genuine savings confirmed

 

Give us a call on 0425 341 086 or contact us on Facebook to discuss this further and how it applies to you.

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