Get Finance Fit: Your clear path to success A practical approach to - - PDF document

7/09/2018 1

Get Finance Fit: Your clear path to success

A practical approach to build your financial foundation

DISCLAIMER

The material shown in this presentation is for general information purposes

• nly. It is not intended to be, nor should it be read as specific personal

investment or risk advice. Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by Plenitude Wealth Pty Ltd or any member or employee

• f The FinancialLink Group (TFLG).

Before acting on any of the information contained in this presentation you should obtain special advice from a specialist investment (risk) professional, which is appropriate to your specific investment or risk needs,

• bjectives and financial situation

7/09/2018 2

What is coming?

• Video 1
• Where do you start and what’s the end goal?
• Video 2
• Wealth Curve and investment options
• Video 3
• Buying property and building a portfolio
• Video 4
• Superannuation and why it matters
• Video 5
• Bringing it all together

Who are we? What do we stand for?

• Plenitude Wealth started from an

audacious idea

• Social Enterprise
• Creating a positive impact
• The Plenitude Movement
• A psyche of giving
• Making a difference
• Specialists in Structure & Strategy
• We are practitioners

7/09/2018 3

A little about myself

• My story: from Science to Finance to Fatherhood

Video 1

• Video 1 Breakdown:
• Your personal relationship with money
• Reverse Engineer the Ideal Lifestyle
• Financial Goals – Survive, Strive & Thrive
• How are you currently tracking?
• Budgeting - a thing of the past
• Write a bunch of notes!!

7/09/2018 4

What is your relationship with money?

• Workbook exercise
• Write down 5 things about money
• What’s happened in the past?
• Do you have positive or negative experiences surrounding money?
• What kind of money operator are you? Five kinds of capital movers

What’s it all about?

• What’s important to you?
• What motivates you?
• Where do you feel most

at home?

• If you had a magic wand,

what would you do with it?

• Knowing your “why” is

the key

7/09/2018 5

My Why!?

• Freedom
• Growth
• To never feel financial

stress again

• Fostering

philanthropists

• Leave a legacy
• Knowing your “why”

is the key

@andrewdavidcourtney

Reverse Engineer – Your Ideal Lifestyle

• What’s your version of financial freedom?
• Passive income from your assets:
• Ability to work more/less hours
• Investment portfolio income
• More options to pursue what matters most
• Solving the financial jigsaw puzzle

7/09/2018 6

What’s your version of Financial Freedom?

• To be able to do what I want, when I want, with

whomever I want, wherever I want

• Are you working towards replacing a portion or all
• f your income?
• Passive income is your key to financial success
• An income derived from making your dollars work

My definition of FINANCIAL FREEDOM is simple: it is the ability to live the lifestyle you desire without having to work or rely on anyone else for money.” – T. Harv Eker

The Three things that slow us down

7/09/2018 7

Where do you start?

• Know where you are

today – change it for tomorrow

• Your current trajectory is

the average of the 5 people you’re closest to

• Is this what you’re after?

Know your numbers

• 1. Stack the chances in your favour to achieve

financial freedom

• 2. Where are you tracking towards?
• 3. How can you change it?
• 1. Yearly changes/additions to enhance your

strategy

• 2. Optimising for the compounding effect

7/09/2018 8

Know the Rules of the Game

• Monopoly – what if you

weren’t aware that you can build houses and hotels?

• Could you possibly win the

game?

• Did you know that 3 houses

in most areas on the Monopoly board provides the best return?

• There are hundreds of

strategies for every scenario – learn and implement accordingly

Create a Dreamline

• Lifestyle & Financial Goals
• Horizontal timeline – your

next 15 years

• Where does everything fit?

7/09/2018 9

Cash Flow Management - Capital

• Budgeting is a thing of

the past

• Three basic scenarios:
• Nest egg builders
• Back to zeros
• Too hard baskets

Nest Egg Builders

7/09/2018 10

Back to Zeros Too Hard Baskets

7/09/2018 11

Cash Flow Management

• Sustainable, reliable &

results driven

• Portfolio growth –

Capital raised

• Yearly Holidays
• Automated & stress free
• Addresses everything

important

Like us on Facebook ;)

Cash Flow Management – Capital

• Automated &

Systemised

• Test & measure to

suit your ideals

• Adjust accordingly

“The decent method you follow is better than the perfect method you quit.” – Timothy Ferris

7/09/2018 12

Ensures the Increase of your Wealth Curve Take your Financial Snapshot

• Knowing where you

stand

• Run your finances like a

business

• Establish “Point A” to

plan for “Point B”

7/09/2018 13

Start with the end in mind

• Survive
• Strive
• Thrive

Start with the end in mind

Income pa Capital required

• Survive $XX,000

x20 ?

• Strive

$XX0,000 x20 ?

• Thrive

$XX0,000 x20 ?

7/09/2018 14

Wealth Curve

• What does your wealth curve look like?

Wealth Tracker

7/09/2018 15

Sheet 1 – Cash Flow Management Planner Sheet 2 – Values Planning

7/09/2018 16

Sheet 3 – Property Cash Flow Assumptions Sheet 4 – Proposed Projections

7/09/2018 17

Sheet 5 – Current Projection Sheet 6 – 15 Year Portfolio Projections

7/09/2018 18

Sheet 7 – Projections & your Wealth Curve The lift off is the hardest

• Most people sit on

the bottom curve

• Strategy is key

(lower your taxes)

• Measure for success

7/09/2018 19

Take your Financial Snapshot

• Where does your

money flow?

• The everyday person
• Ignores their assets
• Sees all debt as bad

Take your Financial Snapshot

• Utilise assets to

increase your income

• Good debt & paying

yourself first

• Optimised Cash Flow

7/09/2018 20

Ensures the Increase of your Wealth Curve Wealth Tracker

• Our giveaway – Wealth tracker – will be updated as we receive feedback

and add new strategies to the mix

• Click on the “Wealth Tracker” button underneath this video
• Leave your best email address
• We’ll send the Wealth Tracker along with a training video on how to use

it best

7/09/2018 21

What’s your version of Financial Freedom?

• What would you do if money

wasn’t an issue?

• What cause would you support?
• What car would you drive? ;)
• Who would you want to help?
• Where would you be right now?

@andrewdavidcourtney

Video 2 How to build a Portfolio

• Video 2 – Your Investment Options
• Your Money Mentality
• Cost of Capital, Risk Free Return, ROI
• Inflation can be your enemy
• Tax Structures
• Building Portfolios
• Risk Return Relationship
• Risk Profile Questionnaire
• Product providers
• Investment Philosophy

7/09/2018 22

Q&A

• Make sure to:
• Get a copy of the Plenitude Wealth Tracker
• Click through to the next video when you’re ready
• Find this series of videos on our Insights page on

www.plenitudewealth.com.au under Get Finance Fit

Get Finance Fit: Your clear path to success

A practical approach to build your financial foundation

7/09/2018 23

DISCLAIMER

The material shown in this presentation is for general information purposes

• nly. It is not intended to be, nor should it be read as specific personal

investment or risk advice. Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by Plenitude Wealth Pty Ltd or any member or employee

• f The FinancialLink Group (TFLG).

Before acting on any of the information contained in this presentation you should obtain special advice from a specialist investment (risk) professional, which is appropriate to your specific investment or risk needs,

• bjectives and financial situation

Agenda

• Video 1
• Where do you start and what’s the end goal?
• Video 2
• Wealth Curve and investment options
• Video 3
• Buying property and building a portfolio
• Video 4
• Superannuation and why it matters
• Video 5
• Bringing it all together

7/09/2018 24

Video 2

• Video 2 – Your Investment Options
• Video 1 recap
• Cost of Capital, Risk Free Return, ROI
• Inflation can be your enemy
• Tax Structures
• Building Portfolios
• Risk Return Relationship
• Risk Profile Questionnaire
• Product providers
• Investment Philosophy

What have we covered?

• Video 1 Breakdown:
• Your personal relationship with money
• Reverse Engineer the Ideal Lifestyle
• Financial Goals – Survive, Strive & Thrive
• How are you currently tracking?
• Wealth Tracker
• Cash Flow Management System

7/09/2018 25

My Why!?

• Freedom
• Growth
• To never feel financial

stress again

• Fostering

philanthropists

• Leave a legacy
• Knowing your “why”

is the key @andrewdavidcourtney

Video 1 Terms

• What does your wealth curve look like?
• Net Assets
• Survive, Strive & Thrive
• Tracking your progress
• Cash Flow Strategy

7/09/2018 26

Start with the end in mind

Income pa Capital required

• Survive $XX,000

x20 ?

• Strive

$XX0,000 x20 ?

• Thrive

$XX0,000 x20 ?

Status Quo

7/09/2018 27

Financial Decision Making Framework

• How do you make financial

decisions?

• Framework for Financial

Decisions Risk Free Return

• Classified as your most conservative investment
• Bank access account 0.1% (taxable income)
• A savings account 2 – 3% (taxable income)
• Offset account ~4% interest cost saving (not taxable)
• Redraw facility ~4% interest cost saving (not taxable)
• This is why if you don’t know how to invest, paying off your home (if

you have one) is the best way to build wealth as you are guaranteeing at least a risk free return on the interest savings

• This is your baseline return for your net assets

7/09/2018 28

Risk Free Return from the Status Quo Cost of Capital

• Can you access Capital and how much will this cost you?
• Credit Cards typically cost 9 – 22%
• Personal Loans: 8 – 15%
• Top up investment loans (from your home equity): 4 – 5%
• Savings: Inflationary cost of ~2%
• Your mortgage offset or redraw facility is a good starting point
• You may have a 3.7 – 4.6% mortgage rate
• Having money in your offset or redraw facility is saving you around 4% of

interest per annum

• Savings is the best way to build your portfolio from (lowest)

7/09/2018 29

Cost of Capital within the Status Quo Return on Investment

• ROI – Return on Investment
• How much higher is your net asset ROI from your Risk Free Return?
• This will determine how fast you can achieve your financial goals – Survive, Strive

& Thrive numbers

• How to calculate the ROI:
• (year 2 capital) – (year 1 capital) / (year 1 capital) * 100 = % ROI
• Traps for projections
• Forgetting to add the taxable component on all returns
• Forgetting the effect of inflation

7/09/2018 30

Return on Investment within the Status Quo

Kinds of Return On Investments

• Income (taxable within the financial year)
• Capital growth(taxable at sale)

ROI > Cost of Capital ROI > Risk free Return

7/09/2018 31

The power of ROI Status Quo – a very very long term plan

7/09/2018 32

Gradually Increasing Wealth Curve

• Pegged to the growth of

their property ~2-5%

• Rolling the dice – leaves

a lot to chance

Inflation – friend or foe?

• Savings account example
• See whiteboard
• Inflation lowers your $$$’s buying power
• Having assets that perform higher than inflation negates this effect

7/09/2018 33

Building Portfolios Tax Minimisation Entities – Video 5

• Personal name
• Company
• Company trust
• Family Trust
• Unit Trust
• Superannuation

7/09/2018 34

Risk Return Relationship Constructing a Portfolio – Risk Profile

• Workbook Exercise – What

is your risk profile?

• Diversification
• Strategic Asset Allocation
• A snapshot in time
• Adviser Tool

7/09/2018 35

Basic Investment Portfolios from the big 5 Finding your first investment

• Check mfund website:
• http://www.asx.com.au/mfund/
• Acorns, AMP

, CFS, BT, MLC, IOOF Spaceship

• Noteworthy Research Houses:
• Morningstar, Canstar, Lonsec
• Noteworthy Fund managers:
• Fidelity, Perpetual, Russell Investments
• Mercer, Vanguard, Platinum

7/09/2018 36

mfund website Investment strategy – 3 pronged attack

• Create an income stream portfolio
• Large lump sums – low risk
• Build an aggressive portfolio from $0
• With dollar cost averaging
• Acquire leveraged investments for long

term asymmetric risk/reward returns

• Ensure your income supports the

timeframe

7/09/2018 37

Balance is key

Income & Growth Investments

• Achieve portfolio

synergy

• Balance your debt

levels with your income to achieve maximum exposure to asymmetric risk/reward investments

• Know the rules of the

game – one strategy at a time

7/09/2018 38

Recap

• Financial Decision Framework
• Return on Investment
• Cost of Capital
• Risk Free Rate of Return
• Understanding your risk profile
• Download the risk profile questionnaire
• Strategic Asset Allocation - Diversification

Video 3

• Video 3 – Buying Property & building a Portfolio
• Why Property?
• What to look out for
• Land Content is king
• Property acquisition timeline
• What is Negative Gearing?
• Pros and cons of investing in Property
• Strategies when buying property
• Control vs Ownership
• Property’s role in your portfolio

7/09/2018 39

Q&A

Get Finance Fit: Your clear path to success

A practical approach to build your financial foundation

7/09/2018 40

DISCLAIMER

The material shown in this presentation is for general information purposes

• nly. It is not intended to be, nor should it be read as specific personal

investment or risk advice. Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by Plenitude Wealth Pty Ltd or any member or employee

• f The FinancialLink Group (TFLG).

Before acting on any of the information contained in this presentation you should obtain special advice from a specialist investment (risk) professional, which is appropriate to your specific investment or risk needs,

• bjectives and financial situation

Agenda

• Video 1
• Where do you start and what’s the end goal?
• Video 2
• Wealth Curve and investment options
• Video 3
• Buying property and building a portfolio
• Video 4
• Superannuation and why it matters
• Video 5
• Bringing it all together

7/09/2018 41

What did we cover in Video 2?

• Investment Decision Making Framework?
• Your Risk Profile
• Investments to look at – Diversification across asset classes
• Risk – Return relationship

Video 3

• Video 3 – Buying Residential Property & building a Portfolio
• Why Property?
• What to look out for
• Land Content is king
• Property acquisition timeline
• What is Negative Gearing?
• Pros and cons of investing in Property
• Strategies when buying property
• Control vs Ownership
• Property’s role in your portfolio

7/09/2018 42

Investment strategy – 3 pronged attack

• Create an income stream portfolio
• Large lump sums – low risk
• Build an aggressive portfolio from $0
• With dollar cost averaging
• Acquire leveraged investments for long

term asymmetric risk/reward returns

• Ensure your income supports the

timeframe

Pros & Cons of Residential Property

Pros

• Leveraged returns
• Ability to manufacture

growth

• Control vs Ownership
• Flexible asset when

structured properly

• Powerful growth asset
• Leapfrog strategy

Cons

• High cost to get in
• High cost to get out
• Hard to access your capital
• Easy to make a mistake
• Overcapitalisation is a reality
• Long term investment
• Servicing multiple loans is

hard and can be risky

• Keeping records can be

laborious

7/09/2018 43

Why Residential Property?

• The only asset class the banks will lend you up to 97% of the purchase

price on

• Growth investment
• Historically stable

Income & Growth Investments

• Achieve portfolio

synergy

• Balance your debt

levels with your income to achieve maximum exposure to asymmetric risk/reward investments

• Know the rules of the

game – one strategy at a time

7/09/2018 44

Gearing – Negative or Positive?

• Cash Flow implications
• Tax
• Kind of return
• Income
• Growth

What to look out for - Pitfalls

• Spruikers
• High density living
• Buying above the median
• Getting in the market just to get in

7/09/2018 45

Land Content is King

• Supply & Demand
• 10 -15km city radius
• Infrastructure
• Long term Capital Growth

Residential Property Acquisition Timeline

• Borrowing capacity – Serviceability and Collateral
• Understand the capital requirements - Deposit
• Commit to a strategy
• Principal Place of Residence
• Investment property
• Research – 3 different suburbs that fits your requirements
• See more than 50 properties during your search - GIVEAWAY
• Talk to your solicitor/conveyancer about the contract
• Joint Tenancy
• Tenants in Common
• Make an offer
• Written is best, Deposit, Building & Pest , Finance Clause, Unconditional,

Settlement

7/09/2018 46

Suburb Report Giveaway

• We’ll send you 1 – 3 suburb reports you ask for in the SE Qld area
• Covers off on:
• Median House prices
• Average Suburb growth >15 years
• Peak selling periods
• Pricing segmentation
• Recently sold properties
• Rental Statistics
• Demographics
• Just leave your full name, email address and suburb/s
• Sending these out once a week

Tips from the pros

• Growth Drivers
• Demographics
• Infrastructure
• Private Spending
• Each Suburb is its own market
• Close but not next door to the

action

• Odd man out
• No main thoroughfares
• The Agent is your friend
• Know they’re motivators
• Play the game
• Negotiate
• Questions to ask the agent
• Why are they selling?
• How long has it been on the

market?

• How much would they accept

today?

• Are they motivated sellers?
• Beware of flooded areas
• Visit council flood maps
• Don’t get emotional
• Emotions get the best of people
• Manufacture Value

7/09/2018 47

Strategies for buying Residential Property

• Control vs Ownership
• Buy & Hold
• Buy, Renovate & Hold/Sell
• Buy, Develop & Hold/Sell
• Buy, Renovate, Develop & Hold/Sell

Investment Concepts – Debt can be your ally

• Not all debt is bad! Good debt vs bad debt
• Understand the concept of control vs
• wnership and leverage your returns
• Property – control 100% of the property for

as little as 5% deposit

• Shares – you can earn a higher

dividend/income via utilising options & warrants

7/09/2018 48

Calculating Growth ROI for Property

• Full, 20% deposit, 10%

deposit, 5% deposit

• 15 years @ ~5% growth
• Interest only
• To calculate Return on

Investment over a 15 year period is harder: R = ((n√(FV/PV))-1)100

Case Study – Mortgage Payment

Is it necessary to pay down your mortgage?

7/09/2018 49

Control vs Ownership

• PPR $500,000 Value
• $400,000 Loan
• To pay off in 30 years
• Good properties* have

doubled every 10yrs

• Principal repayments:

$13,300 per annum on average * Not to be confused with sub optimal investment properties

Ownership

ASSUMPTIONS

• 5% growth per annum on
• riginal $500,000 valuation
• Value doubles every 15 years
• At Year 30 (doubled twice)
• Value is $2,000,000
• Mortgage paid off
• Retirement is now front of

mind

NET Assets: $2,000,000

7/09/2018 50

Control vs Ownership

ASSUMPTIONS

• 5% growth per annum on
• riginal $500,000 valuation
• Value doubles every 15 years
• At Year 30 (doubled twice)
• Value is $2,000,000
• Mortgage DOESN’T get paid
• ff
• $400,000 debt still there

Control Paradigm

What if you invested the repayments instead!?

• $13,300 pa @ 6% return over a

30 year period

• Value: $1,051,000
• At Year 30 ( the property

doubled twice)

• Value is $2,000,000
• Mortgage DOESN’T get paid
• ff
• $400,000 debt still there

NET Assets: $2,651,000 $651,000 better off!

7/09/2018 51

Control Paradigm

What happens if you can find a 8% return on your investments?

• $13,300 pa @ 8% return over a 30

year period

• Value: $1,506,000
• At Year 30 ( the property doubled

twice)

• Value is $2,000,000
• Mortgage DOESN’T get paid off
• $400,000 debt still there

NET Assets: $3,100,000 $1.1M better off!

Challenging the dogmas

Is it necessary to pay down your mortgage? You tell me 

7/09/2018 52

Common Strategies

• Sell to upgrade
• Overcapitalise on renovations – spend too much
• Buying with emotions
• The typical strategy will give you typical results
• Always consider ROI, Cost of Capital and Risk Free Returns

LVRs & LMI – Some key takeaways

• LVR – Loan to Value Ration
• Banks love 80% or less
• >80% LVRs require Lender’s Mortgage Insurance
• ie: $500,000 property with a $400,000 loan = 80% LVR
• ie: $500,000 property with a $200,000 loan = 40% LVR
• The LVR you choose can determine a large

difference in ROI

• LMI – Lender’s Mortgage Insurance
• Not bad in every case
• LMI coupled with strategy is potent

@andrewdavidcourtney

7/09/2018 53

Control Paradigm – Positive Carry

Are you aware of lazy equity?

• Build up your cash flow by taking

advantage of cheap finance

• You could achieve a low risk return
• f 4.0% - 4.5%
• Fixed income investments do not

have any volatility!

Approximately $4,000pa per $100k of equity

Positive Carry – Working example

If you CONTROL a property with less than 80% LVR

• Value $500,000,
• Loan $200,000
• You can get a top up investment loan

with strategic lenders

• Pocket a low risk return of 4.0% -

4.5%

$8,000 pa more in your pocket

7/09/2018 54

Projections – Case Study

• What if you combined both

strategies?

• Interest Only & Positive Carry

trade

• If you Invest the $200,000

Strategically, you can really start working towards your Thrive numbers

Ignoring everything else

• Option 1 – Status quo
• Option 3 – 2x Properties
• Option 2 – 2x Properties

7/09/2018 55

Wealth Tracker

• PPR Paid vs 2 properties (PPR+1 Inv Property)
• PPR Paid vs 3 properties (PPR + 2 Inv Properties)

Where do you start?

• Know where you are

today – change it for tomorrow

• Your current trajectory is

the average of the 5 people you’re closest to

• Is this what you’re after?

7/09/2018 56

Is the Status Quo for you? Q&A

7/09/2018 57

Get Finance Fit: Your clear path to success

A practical approach to build your financial foundation

DISCLAIMER

The material shown in this presentation is for general information purposes

• nly. It is not intended to be, nor should it be read as specific personal

investment or risk advice. Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by Plenitude Wealth Pty Ltd or any member or employee

• f The FinancialLink Group (TFLG).

Before acting on any of the information contained in this presentation you should obtain special advice from a specialist investment (risk) professional, which is appropriate to your specific investment or risk needs,

• bjectives and financial situation

7/09/2018 58

Agenda

• Video 1
• Where do you start and what’s the end goal?
• Video 2
• Wealth Curve and investment options
• Video 3
• Buying property and building a portfolio
• Video 4
• Superannuation and why it matters
• Video 5
• Bringing it all together

What did we cover on Vid 3?

• Pros & Cons of Property investing
• Investment Strategy
• LVR & LMI – Good Debt vs Bad Debt
• ROI of leveraged property investments
• Control vs Ownership

7/09/2018 59

Video 4

• Super and why it matters
• How you can make the most of super today
• The most powerful structure to invest in
• Common mistakes
• Cons associated with super
• Wealth curve and super
• Tax
• Risk profile – what’s yours?
• Accumulation vs Pension phase
• Kinds of Contributions
• Industry, Retail vs Self Managed Super funds
• Wealth Curve

Key Takeaways for today

• Taking advantage of super today
• The best structure to invest in for tax reasons
• It is only an investment entity (it is a trust)
• You don’t need to pay unnecessary tax
• How to maximise the results in super

7/09/2018 60

A quick look at tax A Powerful Structure

• Super is designed to relieve the pressure from the government pension
• The tax incentive makes it worthwhile to invest in super

7/09/2018 61

Common Mistakes

• Having multiple super funds without a strategy
• Fees really start to have a detrimental effect on the balance
• Retiring then taking it all out and doing a big spend
• Hoping for the best with the investment choices
• “Balanced sounds about right”
• Not knowing what it actually means

Tax in Super

• 15%, 10% & 0%
• Relative to outside of super
• Super provides an automatic risk free return
• $10,000 example – MTR vs Super – future slide

7/09/2018 62

Cons Associated with Super

• Your Capital is stuck until you reach preservation age
• Expect this to creep up over the next decade
• A lot of rules to stay on top of
• Legislation risk
• A change in the rules can affect your strategy

Accumulation vs Pension Phase

• Accumulation Phase
• You can contribute in this phase
• Tax is at 15% on income and 10% Capital Gains

(if owned > 1y)

• Important to invest strategically
• Pension Phase
• You can’t contribute but you can restart a

Pension account

• Tax is at 15% pre retired and 0% when retired
• You can access 4 – 10% whilst working –

Transition to Retirement (covered later)

• You can have both accounts if you are of

preservation age or retired

7/09/2018 63

Contributions to Build your super balance

• Superannuation Guarantee Contribution (SGC)
• 9.5% of ordinary time earnings (salary) up to 20/21 FY
• Increases by 0.5% over the next five FY to 12%!
• Government’s way of relieving the pressure from pensions for future generations
• Concessional Contribution (before tax contributions)
• Maximum $25,000 per FY
• Risk Free Returns available
• Non-Concessional Contribution (after tax contributions)
• Maximum $100,000 per FY
• $300,000 with the bring forward rule (3 year rolling)

Risk Free Return

• Tax savings is a form of risk free returns
• Before tax contribution (up to $25,000pa):
• $10,000 Pre tax Example

7/09/2018 64

15 Year Projections 15 Year Projections

7/09/2018 65

Portfolio Synergy Super

• Achieve portfolio

synergy

• Super Plays multiple

roles

• Know the rules of the

game – one strategy at a time

Wealth Curve & Super Strategies

• White Board Drawing
• Outside vs inside super wealth curves
• Transition to Retirement
• Buckets Strategy
• Wealth Transfer Strategies up to age 65
• Non Concessional Contributions

7/09/2018 66

Risk Profile within Super

• Risk Profile questionnaire
• ROI is important because of the massive investment horizon (time)

within super (for some)

• 1% difference in ROI can affect as much as 20% of your end balance
• Invest according to how comfortable you are and when you plan to

change your strategy

Building Portfolios

7/09/2018 67

Industry, Retail vs Self Managed Financial Decision Making Framework

• Cost of Capital
• Risk Free Return
• Return on Investment
• Everything needs to be in

balance

7/09/2018 68

Using your superannuation today

• Access to Financial Advisers
• Advice fees through super
• Pay for the majority of your life insurances within Super
• Withdraw from super (age dependent)

Protecting your most valuable asset

7/09/2018 69

Protecting your most valuable asset

Relationship of Wealth Curve and Life Insurances

Major Con of using super today

• Lowers your superannuation nest egg
• Fees and premiums lowers the compounding returns inside of super
• Wealth Curve gets affected
• Is it worthwhile? It depends on your cash flow position

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The lift off is the hardest

• Most people sit on

the bottom curve

• Strategy is key

(lower your taxes)

• Measure for success

In Conclusion

• Super is an important part of your finances
• You can utilise it today
• Excess fees limits your returns
• It’s a tax haven relative to your MTR
• Make sure you are investing strategically in super

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Q&A

Get Finance Fit: Your clear path to success

A practical approach to build your financial foundation

7/09/2018 72

DISCLAIMER

The material shown in this presentation is for general information purposes

• nly. It is not intended to be, nor should it be read as specific personal

investment or risk advice. Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by Plenitude Wealth Pty Ltd or any member or employee

• f The FinancialLink Group (TFLG).

Before acting on any of the information contained in this presentation you should obtain special advice from a specialist investment (risk) professional, which is appropriate to your specific investment or risk needs,

• bjectives and financial situation

Agenda

• Video 1
• Where do you start and what’s the end goal?
• Video 2
• Wealth Curve and investment options
• Video 3
• Buying property and building a portfolio
• Video 4
• Superannuation and why it matters
• Video 5
• Bringing it all together

7/09/2018 73

Video 1

• Video 1 – Goal Setting
• Your Money Mentality
• Cash Flow Management
• Survive, Strive & Thrive

Video 2

• Investment Portfolio
• ROI
• Cost of Capital
• Risk Free Return
• Risk Profile

7/09/2018 74

Video 3

• Residential Property
• LVR & LMI
• Control vs Ownership
• Strategies
• Growth

Video 4

• Superannuation
• Your retirement nest egg
• 1% pa  20 – 30% of your capital
• Strategies
• Risk Free Returns – tax savings
• How do you use your super today?
• Pay most of your life insurance premiums
• Subsidise your payments for Financial

Advice

7/09/2018 75

Video 5

• Video 5 – Bringing it all together
• What are your financial and lifestyle goals?
• Tracking your wealth is important
• How much income do you need?
• Implement strategies to achieve each goal
• Your next steps
• Common mistakes
• The Cost of Inaction

@andrewdavidcourtney

What are your goals?

• Goal Setting
• Survive, Strive & Thrive
• Lifestyle Goals - Values
• Timeline

7/09/2018 76

Start with your Survive numbers

• Cash Flow Management System
• Provides you with investment $$$ to project with
• What’s your Net Asset Position?
• How much ROI do you need to get to your goal?
• Understand your risk profile and start investing accordingly
• Would a property help get you there faster?
• When does your Super come into the equation?

The Importance of Tracking

• How are you tracking?
• Wealth Tracker
• You need to be on track to hit your

SURVIVE, STRIVE & THRIVE numbers @andrewdavidcourtney

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Track your Wealth Curve

The lift off is the hardest

• Most people sit on

the bottom curve

• Strategy is key

(lower your taxes)

• Measure for success

7/09/2018 78

Wealth Tracker

• Have you got your copy yet?
• The secret is in accountability and consistency
• Make time your friend by keeping tabs on your progress

Have a Plan

• Take half a day on one weekend before the end of the year and go

through the steps

• Use the resources you have available
• Wealth Tracker – Cash Flow & Projections
• Risk Profile – Investment choices
• MoneySmart website – More guidance
• Suburb Reports
• A goal without a plan is just a wish

@andrewdavidcourtney

7/09/2018 79

Income Underpins this Whole Plan

Protecting your most valuable asset

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Protecting your most valuable asset Returns - Capital & Income

7/09/2018 81

Tax Savings

• Entities to purchase investments in
• Pros – tax savings
• Cons – cost to maintain
• Whiteboard drawing
• Every Dollar you save in tax is a

dollar earned in Risk Free Return @andrewdavidcourtney

The Next Steps

• Implement Something
• Grab the freebies
• Understand the cost of inaction
• Capture where you are today and

start building a timeline for yourself – build that Wealth Curve of yours!

• Follow us on all social media

platforms

@andrewdavidcourtney

7/09/2018 82

What is the cost of inaction?

• The financial state of your closest people around you – a good or a bad

thing?

• What might be the benefits of an attempt or partial success?
• Flick to your numbers
• How many years can you afford to wait?
• Book a session with me – Click the link below – “Let’s meet”

Let’s meet

@andrewdavidcourtney

7/09/2018 83

Thank you for your time

• Follow us on social media as we spread financial education all around

SE Qld! Join the Plenitude Movement - let’s change the face of poverty.

• Go get those goals & don’t forget to spread the wealth
• Choose a cause you believe in – let’s create a positive impact!
• Follow me on Instagram, Facebook & LinkedIn
• Provide us with feedback! We want to make this a Workshop for future

audiences and create more content

Get Finance Fit: Your clear path to success

A practical approach to build your financial foundation

7/09/2018 84

Q&A