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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.

Is your loved one in an aged care? Then you must read this.

#Pensioner #AgedCare #Retiree #ReverseMortgage #Mortgage #HomeLoan
Heartland’s Aged Care Loan is similar to a reverse mortgage, except it has been designed specifically for those residing in aged care. As a result, unlike a standard reverse mortgage which has no term, this loan has a five year term.
The LVR determines how much Heartland is able to lend to customers, based on the value of the property used as security for the loan and the age of the youngest borrower. The table below shows the new maximum amounts that apply depending on the age of the youngest borrower.
pensioner LVR
The loan is typically used to fund aged care costs such as a Refundable Accommodation Deposit (RAD) or Daily Accommodation Payments (DAP), but can also fund other costs such as home renovations.
We have years of experience in aged care and finance, call Madhu on 0425 341 086 to help your loved one. Email us at for more details. Share your thoughts on Facebook.


I am a firm believer in Financial freedom and to achieve that you need to create wealth from the day you start earning

1. Your Retirement Goals Are a Mistake.

The biggest mistake retirees make is giving up their active income. By active income, I mean money you make through your labour or through a business you own. Passive income, on the other hand, is what you get from Social Security, a pension, or a retirement account. #retirement

Don’t give up on the idea of retirement just think of retirement differently, think of the 80:20 Principle. Instead of spending 80% of your time working for money and 20% having fun, you can spend 20% of your time working (why not make it a new venture you've been daydreaming of or a second career?) and 80% having fun—and be free from financial worries.

2. If You Chase Yield, You'll Lose

The most important factor in wealth building is not the return on your investment...but the accumulation of net investable wealth (NIW). NIW is the amount of money you're able to devote to investing after you've paid for all your regular expenses—your car, home, debts, and loans.#investment

This is why the intelligent wealth builder devotes the lion's share of his savings to increasing his income and having realistic goals - market averages plus or minus 10%. Invest more and have lesser idle savings.

3. Pinching Pennies Won't Make You Richer or HappierSpending money prudently is an economic virtue, but being stingy—i.e., paying less than market value for goods or services simply because you can—is a flaw. The rich man who under-tips, does so because he is simply a cheapskate and not because he has learned the value of money. It's as simple as that.

I tell you this to emphasize a key part of the simple money-management system I've used to generate millions in wealth...

I don't believe in scrimping severely to optimize savings. I believe you can live a rich life while you grow rich, so long as you are willing to work hard and you are smart about your spending.

Contact me today at to get wealthy.


Rethinking the 4 Percent Rule

A happy senior couple sitting on the front of a sail boat on a calm blue sea

A happy senior couple enjoying their retirement

The biggest fear for people facing retirement, is the possibility of outliving their savings and having to depend on their children.

According to the  “4 percent rule” a person must withdraw no more than 4 percent from their retirement savings each year, and they’ll have enough money to last the rest of your life. This idea was calculated back in the 1990s and was based on a model portfolio that contained a certain mix of stocks and bonds—60 percent large-cap stocks and 40 percent intermediate-term government bonds.

But times have changed. With historically low bond yields and a volatile stock market, the “4 percent rule” may no longer be as safe.

To make sure retirees don’t outlive their savings get a handle on their cash flow managing income and expenses in retirement is more important than relying on any rule. The bottom line—knowing what you’ll be spending is the best way to determine what you’ll be able to withdraw.

Considering inflation and taxes, an investor who wants to be able to draw 4 percent has to be able to make at least a 7 percent return on average to be able to get that 4 percent in their pocket. That can be challenging at times.

The most important factor in being able to follow the “4 percent rule”—and not outlive your nest egg—is to try to save more. Increasing your retirement contributions to reach the maximum annual limit for Super Contribution but that may still not be enough, but there is no limit on investments, you may have to add more money to taxable accounts earmarked for retirement as well.

In the end, how much money you put in will ultimately determine how much you can take out. The soon you start saving the more time it has to grow. So, save more and save early. Make sure you add a buffer for a vacation, a wedding or a medical emergency.

Call Madhu on +61425341086 to talk about where you are and how to get where you want to be.