A kitten laying comfortably in a persons lap while they read a book

Too Comfortable too Soon

November 5, 2024

What is the biggest home loan risk facing most Australians today?

We can all accept that we will likely retire later than we once thought. Although maintaining purpose and income for longer is not all bad. Especially if you have taken the time now to invest in your own future retirement.

30-year home loans – by universal policy – are aimed to end at age 70.

Falling across the finish with your home paid off and maybe half a million in super will not give you a comfortable future.

I think it’s possible that the cost of living “crisis” is being a bit overplayed these days. Yes, everything costs more – insurance, electricity, education, food…

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How to Buy a House

October 1, 2024

It’s Spring – The family has grown, you want to be closer to schools… Or … the kids have left, it’s time to downsize … It’s time to shift house.

Spending your weekends going to open homes and after a while – it becomes so confusing…

My brother recently asked for help… so here is the Ask Alan suggestion – it’s a way my wife and I have used successfully many times.

Step 1: Grab a champagne… or a coffee… and sit together and JOINTLY list all the important things that matter to you in a house:

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What is going on with Interest Rates…

August 6, 2024

I have asked you (my clients) many times if you want to know my opinion on why interest rates and house price are as they are.

The clear answer is… NO ! What we do want from you – is what should we do…

Let me go back a bit first.

Every decade has had a defining moment:

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A Budget Thought You Won’t Be Expecting – the THREE mistakes people make.

May 15, 2024

The Council of Social Services (ACOSS) always makes a submission to the budget. This year it notes that the top 10% of Australians have over $5.2 million in net wealth and that the gap between the top 10% and those below is somehow inherently wrong.

It also notes that the top 10% have made their wealth predominantly through property – and with their comments they infer this is somehow inherently wrong too.

My “Budget” in Reply comment is for EVERYONE that aspires to own a home – First Home Buyers and Investors alike.

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What is a “Tracker Mortgage”?

April 11, 2024

A report from a government committee has suggested that Australian Banks be forced to issue “Tracker Mortgages” (Aust Financial Review 27 March 2024).

Australian banks have unsurprisingly pushed back.

A “tracker mortgage” supposedly “tracks” the Reserve Bank cash rate so that your home loan rate remains at a fixed margin relative to the Reserve Bank cash rate.

The benefit is that a borrower will not be left (as currently happens) with a rate stranded high and dry well adrift of where it should be.

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Early Retirement – Be careful what you wish for…

April 5, 2024

I once wrote an article titled “A funny thing happened on the way to the cemetery”.

When the pension was conceived, average life expectancy was 62. Retirement age was 65.

The pension was predicated on the assumption that most would never receive it.

Someone born in 1950 had a life expectancy of 62.

But by the time they reached that age – life expectancy had increased to 82.

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Question of the Week: Inter-generational financial support

March 27, 2024

How best to deal with the worry of inter- generational issues…?

In my email last week, I posed the question of how best to prepare for your own future…

One client asked how they could help their (young) children – not yet born – because of their concerns about what the housing market would look like for them – and their ability to buy a house.

Another client asked how to help parents who had sold everything to live life on the road – but that life had caught up with them and the aged parents were now renting.

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Let’s Start a Conversation…

March 20, 2024

I spent time with long term clients and even longer friends over the weekend.

Here was one part of the conversation – and I’d like you to continue it, along any pathway you choose… more of that later.

“How much do I need to live comfortably in later life?”

Average weekly earnings have just hit $100kpa

How much do I need to have in assets to give that income?

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2024 The Year Ahead

January 30, 2024

There are things that can be taken as almost certain this year – so let’s plan for them.

On the money supply side:

  1. At some stage this year the Reserve Bank will start to reduce rates.
  2. When rates fall by 0.25% it is almost certain that banks will act with their usual pattern and cut by 0.25% for new clients and only 0.15% for existing clients.

No need for you to worry here – I will be able to deal with that for you in my scheduled 6 monthly reviews – it’s what I do for you.

So, let’s turn to getting ahead in life this year.

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The Melbourne Cup Rate Rise – Why Did it Happen, What Does it Mean for YOU?

November 14, 2023

This time WHY matters.

The 3-year bond rate in the US is 5.30%, the 10-year bond rate 4.65%.

The 3-year bond rate in Aust is 4.35%, the 10-year bond rate is 4.75%.

Banks BORROW to lend to you at the 3-year bond rate (among many other sources) – so money is COSTING the banks 4.35%

They can also borrow (overnight) from the Reserve Bank at the cash rate 4.10% – but the Reserve Bank also needs to borrow that to lend to the banks – so the Reserve Bank is making LOSSES at 4.10%.

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