HIGH YIELDING & SAFE INVESTMENTS www.TheDiverseAdviser.com FOR - PowerPoint PPT Presentation

What I’m Presenting today… HIGH YIELDING & SAFE INVESTMENTS www.TheDiverseAdviser.com FOR A SELF-FUNDED RETIREMENT AFSL/ACL: 473959 www.diverseadvisers.com.au WHY AM I HERE… • The last ILA Conference. www.2yourwealth.com.au • Audience uncertainty. • Sharing my knowledge & experiences via writing articles. 1

HIGH YIELDING & SAFE INVESTMENTS FOR A SELF-FUNDED RETIREMENT www.TheDiverseAdviser.com DISCLAIMER… • Ash is a licensed financial adviser, mortgage broker and estate agent. AFSL/ACL: 473959 www.diverseadvisers.com.au • All information presented is GENERAL ADVICE ONLY . • Ash warrants that the accuracy of this information is valid at this time only and may change in due course. www.2yourwealth.com.au • Don’t use this information without seeking personal advice from a licensed financial adviser, that’s appropriate to your situation. 2

HIGH YIELDING & SAFE INVESTMENTS FOR A SELF-FUNDED RETIREMENT www.TheDiverseAdviser.com WHAT’S THE OVERALL OBJECTIVE? AFSL/ACL: 473959 www.diverseadvisers.com.au Learn to manage your wealth So that your Assets are fully invested into creating Income www.2yourwealth.com.au That enables you to be SELF SUFFICIENT in retirement Without needing to rely on the Government pension. 3

A SELF-FUNDED RETIREMENT… WHO WANTS THAT? www.TheDiverseAdviser.com SOME OF THE BENEFITS… 1. Take FULL RESPONSIBILITY for your financial wellbeing. AFSL/ACL: 473959 www.diverseadvisers.com.au 2. Gain financial STABILITY and INDEPENDENCE. 3. KNOWING you have ENOUGH MONEY until you pass away. www.2yourwealth.com.au 4. LIVE the lifestyle you desire. 5. No need to answer to anyone (including the Government). 4

A SELF-FUNDED RETIREMENT… WHO WANTS THAT? www.TheDiverseAdviser.com YOU’LL LEARN HOW TO… AFSL/ACL: 473959 1. Generate $50,000 income using your home and $200,000 in www.diverseadvisers.com.au Superannuation, and still qualify for the Government Pension. 2. Use Shares as your Cash Account and generate 20%+ returns www.2yourwealth.com.au per annum. 3. Have your Investments fully managed by professionals in safety and with confidence, for 20% of gross income. 5

WHO AM I? WHY LISTEN TO ME? www.TheDiverseAdviser.com 1. Migrated to Australia from India, when I was 3. AFSL/ACL: 473959 2. Had my first business at 8 years old www.diverseadvisers.com.au 3. Self-employed since 25, running a variety of businesses. 4. An independent, multi-skilled financial adviser since 2004 with lots of life experience. www.2yourwealth.com.au 5. My results for clients… all retirees are self-funded. 6

HIGH YIELDING & SAFE INVESTMENTS FOR A SELF-FUNDED RETIREMENT www.TheDiverseAdviser.com WHY BECOME SELF-FUNDED? 1. Interesting statistics (from Treasury)… AFSL/ACL: 473959 • 80% of retirees are on Govt pension! www.diverseadvisers.com.au • 2.5million retirees with <$50k in savings account! 2. Government is making it harder to qualify for the pension and continually changing the rules… Why? www.2yourwealth.com.au 3. Stop living in hope and start living with certainty. 4. Who wants Financial Independence? 7

5 SIMPLE STEPS TO FOLLOW www.TheDiverseAdviser.com 1. Determine your LIFESTYLE and BUDGET . 2. Which financial STRUCTURES and STRATEGIES to use. AFSL/ACL: 473959 www.diverseadvisers.com.au 3. Invest all money into PROPERTY & SHARES with a focus on Income not Capital Growth. 4. Focus on generating HIGH YIELDS (INCOME) whilst minimising www.2yourwealth.com.au taxes. 5. Have your INVESTMENTS PROPERLY MANAGED , so it’s stress-free. 8

1. LIFESTYLE and BUDGET THE STEPS… www.TheDiverseAdviser.com 1. Plan your lifestyle activities and calculate the money you’ll need for each activity. AFSL/ACL: 473959 www.diverseadvisers.com.au 2. Create a financial plan that can create assets to generate the amount of money you’ll need (+20% buffer). 3. Take Action => do the work and make the plan happen. www.2yourwealth.com.au WHAT’S MY LIFESTYLE PLAN? 9

2. STRUCTURES and STRATEGIES WHY SUPERANNUATION IS THE BEST STRUCTURE… www.TheDiverseAdviser.com • Tax Concessions on contributions & earnings 1. 15% on income and 10% on Capital Gains whilst accumulating. AFSL/ACL: 473959 2. No tax when taking a pension. www.diverseadvisers.com.au • Tax Free Pensions 1. No Tax on pensions drawn after age of 60. 2. All ‘after tax’ contributions drawn as pension is tax free (from preservation age). • Protection & Estate Planning controls www.2yourwealth.com.au 1. Protection from Creditors/Bankruptcy. 2. Tighter Estate Planning control – e.g. No Probate required, nominate beneficiaries. 10

2. STRUCTURES and STRATEGIES WHY AN SMSF IS AN EVEN BETTER STRUCTURE… www.TheDiverseAdviser.com • Control your super money 1. Members can combine their superannuation and use their own bank account. AFSL/ACL: 473959 2. Investment flexibility (according to Trust Deed rules and Investment Strategy). www.diverseadvisers.com.au 3. Cost to manage is less (per SMSF vs per super fund member). Can Borrow money (LRBA & 3 rd Party related) • • Invest in Direct Property, and other exotic items www.2yourwealth.com.au 1. Beware of rules around changing property asset (e.g. build, develop, renovate). 11

2. STRUCTURES and STRATEGIES WHAT’S MY PLAN? www.TheDiverseAdviser.com 1. Control my Assets & Super via a SMSF. 2. Invest simply, in Shares & Property. AFSL/ACL: 473959 www.diverseadvisers.com.au 3. Have a plan to reduce debt (via contributions & earnings). 4. Update my Wills and Power of Attorney (estate plan). 5. Hire Property Agent’s to manage day-to-day property stuff. www.2yourwealth.com.au 12

3. WHY PROPERTY & SHARES? 1. Both generate capital growth (a bonus) and income. • www.TheDiverseAdviser.com shares 5-8% pa (dividends) • property 2-5% pa (rent) 2. Easy to own, understand and Low risk – must have knowledge AFSL/ACL: 473959 www.diverseadvisers.com.au and skills to manage the investment. 3. Can delegate management to professionals. www.2yourwealth.com.au What about Cash? 2.5% pa (inflation 2%) => no growth/depreciating. Managed Funds? Pooled, only income & property funds generate income. 13

4. ACHIEVING HIGH YIELDS - SHARES www.TheDiverseAdviser.com 1. Blue-Chip Shares • Focus on the dollar amount of dividend to current price (aim for 8%+ yield ). AFSL/ACL: 473959 2. Warrants www.diverseadvisers.com.au • Buy 50% more shares using a company loan (not a margin loan). • Pay off the loan using dividends over 5-15 years. 3. Call Options www.2yourwealth.com.au • You give someone the right to buy your shares at a pre-determined price. They pay you a ‘premium’ for this => can earn 1%+ of capital/month ( 12%+ pa ). • Must learn how to do , not many Advisers can give this advice and/or trade for you. • There’s only about 100 specific ASX200 shares that allow this. 14

HOW TO… Use Shares as your Cash Account to generate 20%+ returns pa www.TheDiverseAdviser.com 1. Create a Share portfolio - 8%+ returns pa with tax credits 2. ‘Sell’ Call Options - 1%+ return per month AFSL/ACL: 473959 www.diverseadvisers.com.au 3. Access to Cash • When you need cash, just sell an amount of shares. • Get your money in 3 days. www.2yourwealth.com.au => You stay fully invested and your portfolio generates 20%+ pa I’M DOING ALL OF THIS. 15

4. ACHIEVING HIGH YIELDS - PROPERTY 1. Commercial property - 10%+ yield on average www.TheDiverseAdviser.com 2. Short-stay accommodation - 50%+ increase in returns/week • Daily rate for room or entire house with hotel style service. AFSL/ACL: 473959 3. Legal Rooming House - 150%+ increase in returns/week www.diverseadvisers.com.au • Multiple tenants, weekly rate per room, executive style living (all services for one fee) • Upfront setup costs (approximately $50-$60,000) • Building & Council Regulations to comply with. 4. Dual/Occupancy (strata-title) property - 2 rental incomes www.2yourwealth.com.au • Build 2 properties on one block of land with common wall. • Usually 30% more to build, but can subdivide later (council permitting). 16

4. ACHIEVING HIGH YIELDS 5. Motorhomes, Tiny Houses & Garage conversions www.TheDiverseAdviser.com Motorhomes are $100k (2 nd hand) to buy, rent for $250/night => 20%+ yield. • • Tiny Homes and Caravans are cheaper to build/buy => around $50-60k. • Garage conversions to live in, then convert existing home to rooming house. AFSL/ACL: 473959 6. Combinations www.diverseadvisers.com.au • Dual-Occ => Live in one side (your home), rent out the other side as a rooming house. • When you’re overseas, rent out your home on AirBnB. THIS IS WHAT I’M DOING! www.2yourwealth.com.au • Convert Home in Byron - Short Stay => from $31k gross pa to $76k+ gross pa • Convert Qld IP – 5 Rooms + Garage convert (maybe) => from $14k gross pa to $43k gross pa • Build Melb IP – Dual/Occ + 6 Rooms + S/Stay (maybe) => Est. $58k gross pa (Rooming) 17

4. ACHIEVING HIGH YIELDS - PROPERTY ROOMING HOUSE EXAMPLE… www.TheDiverseAdviser.com AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au 18

4. ACHIEVING HIGH YIELDS - PROPERTY ROOMING HOUSE EXAMPLE… www.TheDiverseAdviser.com AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au 19

4. ACHIEVING HIGH YIELDS - PROPERTY ROOMING HOUSE EXAMPLE… www.TheDiverseAdviser.com AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au 20