Our client seminar, held on 13th August 2013, was rated a huge success by those who attended. People who completed a feedback form gave it a rating of 9.25 out of 10 – a truly remarkable result. The purpose was to provide factual information that would be useful to people who were planning to retire in the not too distant future, or are already retired. Judging by the feedback, we succeeded in meeting that objective.
Reliable dividends in bad times as well as good
The main speaker, Peter Thornhill, delivered his message about the worth of investing in a portfolio of dividend paying industrial companies, something he has been passionate about for a long time, and on which he expands in his book “Motivated Money”. The strategy has been successful through good times and bad, booms and busts. It has stood the test of time. Copies of Peter’s book are available on request. The message is applicable, whether the investment is made via a superannuation fund, a pension fund, directly in personal names, or via some other legal entity such as a trust.
Peter’s talk was long on common-sense, supported by relevant facts. Importantly, his two “rules for success” (aimed at younger people), are notable for their simplicity and wisdom. The rules are:
- Spend less than you earn
- Borrow less than you can afford.
Investing in global equities
Emma Heffernam, from Magellan Financial Group, spoke about Magellan’s philosophy. They invest in a concentrated portfolio of global equities, where the companies they choose are well placed to benefit from emerging long term trends. It is an approach which has served them well in the past and should continue to do so in the future. There will undoubtedly be periods of volatility and underperformance, but over the medium and longer term, investment in superior businesses will produce superior returns.
Magellan aim to produce an annual return, after fees, of 9%pa. Magellan’s investment commentaries, available on their website (www.magellangroup.com.au) always make good reading.
Insuring against grandchild financial risk
Finally, Steve Salter, from Asteron, delivered a sobering message about the need for retirees to ensure that their children, who have young children of their own, carry sufficient life and disability insurance.
Sadly, there are too many examples of grandparents having to pick up the tab for bringing up grand children, following the death, or serious disablement of the youngster’s parents. The impact on the grandparents’ finances and retirement plans can be devastating.
The message is clear. If you have grandchildren, ask their parents what insurance they have and make sure it will provide sufficient cash in the event of disaster.
If the parents have trouble paying the premiums, it might even be worth paying them yourself. You may be surprised at how low the premiums are.
