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

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

Dec 25, 2023 177 likes •448 views

What Im 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

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What I’m Presenting today…

HIGH YIELDING & SAFE INVESTMENTS FOR A SELF-FUNDED RETIREMENT

WHY AM I HERE…

  • The last ILA Conference.
  • Audience uncertainty.
  • Sharing my knowledge & experiences via writing articles.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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HIGH YIELDING & SAFE INVESTMENTS FOR A SELF-FUNDED RETIREMENT

DISCLAIMER…

  • Ash is a licensed financial adviser, mortgage broker and estate agent.
  • All information presented is GENERAL ADVICE ONLY.
  • Ash warrants that the accuracy of this information is valid at this time
  • nly and may change in due course.
  • Don’t use this information without seeking personal advice from a

licensed financial adviser, that’s appropriate to your situation.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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HIGH YIELDING & SAFE INVESTMENTS FOR A SELF-FUNDED RETIREMENT

WHAT’S THE OVERALL OBJECTIVE? Learn to manage your wealth So that your Assets are fully invested into creating Income That enables you to be SELF SUFFICIENT in retirement Without needing to rely on the Government pension.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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A SELF-FUNDED RETIREMENT… WHO WANTS THAT?

SOME OF THE BENEFITS…

  • 1. Take FULL RESPONSIBILITY for your financial wellbeing.
  • 2. Gain financial STABILITY and INDEPENDENCE.
  • 3. KNOWING you have ENOUGH MONEY until you pass away.
  • 4. LIVE the lifestyle you desire.
  • 5. No need to answer to anyone (including the Government).

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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A SELF-FUNDED RETIREMENT… WHO WANTS THAT?

YOU’LL LEARN HOW TO…

  • 1. Generate $50,000 income using your home and $200,000 in

Superannuation, and still qualify for the Government Pension.

  • 2. Use Shares as your Cash Account and generate 20%+ returns

per annum.

  • 3. Have your Investments fully managed by professionals in

safety and with confidence, for 20% of gross income.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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WHO AM I? WHY LISTEN TO ME?

  • 1. Migrated to Australia from India, when I was 3.
  • 2. Had my first business at 8 years old
  • 3. Self-employed since 25, running a variety of businesses.
  • 4. An independent, multi-skilled financial adviser since 2004

with lots of life experience.

  • 5. My results for clients… all retirees are self-funded.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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HIGH YIELDING & SAFE INVESTMENTS FOR A SELF-FUNDED RETIREMENT

WHY BECOME SELF-FUNDED?

  • 1. Interesting statistics (from Treasury)…
  • 80% of retirees are on Govt pension!
  • 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?

  • 3. Stop living in hope and start living with certainty.
  • 4. Who wants Financial Independence?

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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5 SIMPLE STEPS TO FOLLOW

  • 1. Determine your LIFESTYLE and BUDGET.
  • 2. Which financial STRUCTURES and STRATEGIES to use.
  • 3. Invest all money into PROPERTY & SHARES with a focus on Income

not Capital Growth.

  • 4. Focus on generating HIGH YIELDS (INCOME) whilst minimising

taxes.

  • 5. Have your INVESTMENTS PROPERLY MANAGED, so it’s stress-free.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 1. LIFESTYLE and BUDGET

THE STEPS…

  • 1. Plan your lifestyle activities and calculate the money you’ll

need for each activity.

  • 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.

WHAT’S MY LIFESTYLE PLAN?

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 2. STRUCTURES and STRATEGIES

WHY SUPERANNUATION IS THE BEST STRUCTURE…

  • Tax Concessions on contributions & earnings
  • 1. 15% on income and 10% on Capital Gains whilst accumulating.
  • 2. No tax when taking a pension.
  • 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
  • 1. Protection from Creditors/Bankruptcy.
  • 2. Tighter Estate Planning control – e.g. No Probate required, nominate beneficiaries.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 2. STRUCTURES and STRATEGIES

WHY AN SMSF IS AN EVEN BETTER STRUCTURE…

  • Control your super money
  • 1. Members can combine their superannuation and use their own bank account.
  • 2. Investment flexibility (according to Trust Deed rules and Investment Strategy).
  • 3. Cost to manage is less (per SMSF vs per super fund member).
  • Can Borrow money (LRBA & 3rd Party related)
  • Invest in Direct Property, and other exotic items
  • 1. Beware of rules around changing property asset (e.g. build, develop, renovate).

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 2. STRUCTURES and STRATEGIES

WHAT’S MY PLAN?

  • 1. Control my Assets & Super via a SMSF.
  • 2. Invest simply, in Shares & Property.
  • 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.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 3. WHY PROPERTY & SHARES?
  • 1. Both generate capital growth (a bonus) and income.
  • shares 5-8% pa (dividends)
  • property 2-5% pa (rent)
  • 2. Easy to own, understand and Low risk – must have knowledge

and skills to manage the investment.

  • 3. Can delegate management to professionals.

What about Cash? 2.5% pa (inflation 2%) => no growth/depreciating. Managed Funds? Pooled, only income & property funds generate

income.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 4. ACHIEVING HIGH YIELDS - SHARES
  • 1. Blue-Chip Shares
  • Focus on the dollar amount of dividend to current price (aim for 8%+ yield).
  • 2. Warrants
  • 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
  • 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.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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HOW TO… Use Shares as your Cash Account to generate 20%+ returns pa

  • 1. Create a Share portfolio - 8%+ returns pa with tax credits
  • 2. ‘Sell’ Call Options - 1%+ return per month
  • 3. Access to Cash
  • When you need cash, just sell an amount of shares.
  • Get your money in 3 days.

=> You stay fully invested and your portfolio generates 20%+ pa I’M DOING ALL OF THIS.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 4. ACHIEVING HIGH YIELDS - PROPERTY
  • 1. Commercial property - 10%+ yield on average
  • 2. Short-stay accommodation - 50%+ increase in returns/week
  • Daily rate for room or entire house with hotel style service.
  • 3. Legal Rooming House - 150%+ increase in returns/week
  • 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
  • Build 2 properties on one block of land with common wall.
  • Usually 30% more to build, but can subdivide later (council permitting).

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 4. ACHIEVING HIGH YIELDS
  • 5. Motorhomes, Tiny Houses & Garage conversions
  • Motorhomes are $100k (2nd 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.
  • 6. Combinations
  • 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!

  • 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)

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 4. ACHIEVING HIGH YIELDS - PROPERTY

ROOMING HOUSE EXAMPLE…

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 4. ACHIEVING HIGH YIELDS - PROPERTY

ROOMING HOUSE EXAMPLE…

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 4. ACHIEVING HIGH YIELDS - PROPERTY

ROOMING HOUSE EXAMPLE…

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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HOW TO… Generate $50,000 income using your home and

$200k in Superannuation, and still get Govt Pension (couple).

  • 1. Move all assets to your SMSF (max. $1.6m per member)
  • 2. Invest home ($700,000) into SMSF
  • Ensure you have a new place to live via Caravan, motorhome, self-contained room (in

rooming house), or a budget for short-stay

  • 3. Build/Renovate property in SMSF for rooming house (use $60-100k)
  • 6 rooms @ 250/week => $1,200 net/week (40 weeks) or $48,000 pa after costs
  • 4. Create $100,000 ‘high yield’ Share portfolio in SMSF
  • 8% to 20% pa (with call options) => $8,000 to $20,000 pa less transaction/advice costs
  • 5. Draw a pension (not taxable income)
  • Total assets is <$1,055,000 max. for couple (asset test) => still qualify for part Govt Pension!

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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  • 5. MANAGING INVESTMENTS

HOW TO… Have your INVESTMENTS FULLY MANAGED with safety and confidence. SHARES – No commission, only Fee for Service (new laws)

  • 1. Investment Adviser who specializes in Direct Equities & Options.
  • 2. Seek advice from Adviser on what to buy/sell.
  • 3. Ask Adviser to manage buy/sell on your behalf (you instruct).

PROPERTY – 20% of gross income

  • 1. Get Property Manager who understands rooming houses and will
  • rganize & manage ‘Executive’ style services and providers.
  • 2. Get a Short Stay Property Agent to manage the full service including
  • nline bookings.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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KEY PROPOSED CHANGES

From HAYNE ROYAL COMMISSION…

  • Remove LRBA in SMSF.
  • Client pays fee to Mortgage Broker rather than Bank paying.

Government Policy…

  • Remove Negative Gearing from resold investment properties (ALP).
  • Remove surplus tax credit from ‘franked’ shares in SMSF (ALP).
  • Taxing Trusts the same as companies – 30% (ALP).
  • Reducing contribution limits into Super (ALP).

Around Property…

  • New Building regulations regarding Rooming Houses.
  • State/Council restrictions on short term (NSW – 180 days max).

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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WHAT’S NEXT?

IT’S UP TO YOU!

  • 1. Change your Mindset for success.
  • 2. Create a Plan and Implement => Do the work!
  • 3. Live the life you desire and Enjoy self-funded retirement.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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WHAT CAN I PROVIDE?

MY SERVICES…

  • Independent, unbiased, non-conflicted financial advice.
  • All Fee-for-Service (no commissions).
  • SMSF setup and ongoing annual compliance.
  • Investment property sourcing agent (dual-occ, rooming, etc.,).
  • Direct Equities advice and transaction service (portfolio management).
  • Mortgage finance including LRBA structure and finance.
  • Rooming house property management.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com

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MY OFFER

MY ‘DAY WITH AN ADVISER’ SERVICE… Is via phone & Zoom meeting, takes about 2 weeks, includes:

1. Analyze your existing financial situation so you know where you’re starting from and issues you may face. 2. Discuss your lifestyle and budget requirements – where you want to be. 3. General advice on what you can do and how to achieve your goals.

Normally $2,970 but for this Conference ONLY

I’m offering a 33% discount, so it’s only $1,980 including GST. See me for registration form.

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AFSL/ACL: 473959 www.diverseadvisers.com.au www.2yourwealth.com.au www.TheDiverseAdviser.com