Volume I | Issue 1

The Education for Life Magazine


four decades of strong markets enjoying your wealth



high life

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Volume 1 | Issue 1

48 8 42
UPFRONT mindset




success stories P  eople making their dreams come true

news The latest from 21st Century Academy

COACHING E  mbrace the concept of coaching
to help you reach your goals


PROPERTY BOOM A  ustralia – the lucky country for
property investors

14 carribean cruise  urther your journey to financial F
freedom in style

36 buying a business A  nd then planning your exit strategy 38 Napoleon hill Examine the power of personal belief
and the role it plays in your success

50 property investing T  he myths of property investing


18 the a- z guide of investing

cover story





forex market T  rading opportunities available in forex 57 HOW TO RENT YOUR SHARES S  trategies to generate additional cash
flow from shares

RICHARD BRANSON R  ichard Branson’s 7 key lessons
for business and life

starting an internet business Log on, Cash in... 
 Get the low down on starting an internet business on a shoe string


42 how to do business online S  tarting an online business for

68 trading eminis C  reating wealth from trading eminis



warren buffett T  he business of being a billionaire 30 show me the money


travel with inspiration T  ravelling with a cause to help others
less fortunate


wealth educator|


000 people have been exposed to 21st Century’s Education for Life Programs from more than 16 different countries. legal or accounting advice. nor do we support any representations or claims they may make. I’d like to thank the amazingly talented team and contributors for making this project a reality and we all look forward to inspiring and educating you to turn those ideas and projects that you may have dreamed about into reality – just like many of the stories in this issue from people of all walks of life who have made their dreams come true.au Emma Holmesby emma.WealthEducatorMagazine. WED does not endorse any of the advertisers or their products that appear in this magazine. during the past 11 years more than 250. Any strategy in business or investment should only be applied after taking into consideration your own financial situation and objectives. Contributors Andrew Baxter Presenter 21st Century Broking Justin Beeton Founder and CEO JB Global Warren Black CEO 21st Century Accounting Konrad Bobilak General manager 21st Century Property Direct Kel Butcher Chief forext trader and strategist 21st Century George Fokas Key speaker 21st Century Sharelord Lou Harty Speaker and internet entrepreneur 21st Century Education Craig Jervis Head coach and presenter 21st Century Daniel Kertcher Founder and CEO Platinum Pursuits David Loughnan Head trader 21st Century Eminis Sacha Loutkovsky Advisor 21st Century Insurance Steve Molnar Speaker 21st Century Shereen Mitwally General manager 21st Century Finance IMPORTANT MESSAGE The publisher of 21st Century Wealth Educator Magazine (WED). Several individuals associated with advertisers in this edition of WED have also contributed articles. real estate. The idea of a 21st Century Education – ­ an education that would serve its students for life –was actually conceived in 1991 when I was studying accountancy and law at university. is an independent publisher. I’m proud that the 21st Century Wealth Educator magazine is another idea now turned into reality with a view to providing easily accessible valuable information and education we can all use to create an extraordinary quality of life. These articles have been published because they fit the theme of our magazine.” 4 |wealth educator . Little did I know that almost eight years later I’d act on the idea this question had created and I started 21st Century Academy with the sole goal to provide a modern-day 21st Century Education that should have been taught at school or university. These articles are not advertorials. strategies or ideas put forward by contributors to the magazine.com. Publication of these articles is not in any way dependent on their respective authors or organisations taking up advertising space in this magazine. WED publishes articles and information about people who have successfully devised and applied strategies that have proven successful for them.au Contacts Advertising Enquiries Phone (03) 8616 0270 | Fax (03) 8616 0260 All material in 21st Century Wealth Educator magazine is protected under the Commonwealth Copyright Act 1968. We are merely relaying information. Here is to making 2010 the best year and best decade yet. WED is printed by Webstar and distributed by Network Services. Publisher 21st Century Wealth Educator is published by Wealth Creator Publishing Pty Ltd ABN 26 140 795 777 PO Box 2118 St Kilda West 3182 Victoria 21st Century Group CEO Jamie McIntyre Head of Marketing Simone Podesta Design Jocelyn Hedger and Elisa Malfitana Advertising Kirsten Pride kirsten. it is identified as an “Advertisement. especially considering how expensive it was and knowing I was going into debt with the Australian Government for years to fund my degree. Even though I know a university education is valuable and important. I was frustrated with university and life and in a big hurry to achieve financial success.holmesby@wealthcreator. I was questioning the value of the theoretical education I was learning at uni. Readers are encouraged to do their own appropriate due diligence when making a purchasing decision as a result of reading this magazine. claims. We do not endorse the views. I was sure there were many others like myself eager to learn a real-life education that would teach one how to be successful in life. statements.com. Where an article or feature has been included in this magazine in return for fee. Since then. Wealth Creator Publishing Pty Ltd. Investing and business can be risky and you should seek independent professional advice before making any decisions. We are not liable for losses you may incur directly or indirectly as a result of reading WED. All information contained in WED is intended to inform and illustrate and should not be taken as financial.pride@wealthcreator.au Website www.Jamie McIntyre It is with great pleasure that I present to you the very first edition of 21st Century Wealth Educator magazine – The Education for Life Magazine. No material may be reproduced in part or whole without written consent from the Publisher.com. I remember posing the question to my mother at the time: why wasn’t there a university that would teach you how to be successful in life? I simply felt I wasn’t learning everything I needed at uni to master my life and finances.


but provides the actual live trades as well.au for more details.au/seminars. Check it out at. Don't miss our largest event of the year. We have joined forces with one of Australia’s top Forex Traders to deliver a unique Forex education program that not only teaches you everything you need to know about Forex.com Education for Life Think and Grow Rich Eminis Autotrader 3 21st Century Eminis Autrotrader has been released. www. adding another powerful way to enhance your Eminis trading profits by allowing all the work to be done for you. allowing you to network and socialise in a fun sophisticated environment with like-minded people. is an idyllic location to take time out of your busy schedule and enjoy life in a scenic location and hit the slopes or relax by the fireplace. Visit www. all the while benefiting from the capital growth during that time.21stcenturyadventure. We look forward to seeing many of you in Queenstown.21stcenturywebsitebuilder. Online businesses are the way of the future and with the new technology available you can now build your very own website in less time than you ever imagined.com. which is the foundation of the wealthiest people in Australia.com/africa to check out this amazing experience.PropertyDirectworkshop. 2010 has introduced new property education programs and even more strategies including how to buy land for as little as $4000 deposit and not have to pay for 12 months. Wealth Creator Seminars 3 Property Direct 3 We have joined forces with Wealth Creator Seminars to arrange free tickets to their 2 day seminars this year. Queenstown NZ.au for further information. Caribbean Cruise 3 We are proud to announce our Platinum Experience aboard the world’s largest and newest cruise liner. then why not make Queenstown the must do event? Should you have already attended a 4 day event.com These events are free allowing you to further your education in property. Enjoy the first edition of 21st Century Wealth Educator. our four day Education for Life event to be held in Queenstown. Departing from Sydney in January 2011 and commencing with a welcome party on board our favourite airline. Check out www. Kicking off with two days of inspiring content by our newest speakers flown in especially for the Platinum experience. Visit www. set yourself a goal to join us in the Caribbean for an experience you won't forget. For the adventurers out there. Currency Trading 3 African Safari 3 3 Online Business 3 3 21st Century Forex has been launched to enable our Members to learn to trade the lucrative Foreign Exchange Markets. 6 |wealth educator . If you’re yet to attend a 4 day Education for Life Event with our 18 different speakers. then revisit us in Queenstown this year.21stCenturyEminis. Visit www.com. be a part of 21st Century African Safari. Join us and experience the Savanna in September 2010 for a life changing experience in the African plains. If you've never been to Queenstown in the winter you must make it an absolute must.com. 21st Century has become the first Australian company to secure a license with Napoleon Hill Australia to conduct Think and Grow Rich events.au to access a free eBook and DVD on Forex trading alternatively attend one of our upcoming free workshops or webinars.com.WealthCreator. If you haven't read the book Think and Grow Rich you can download it at the website and share it with your friends. If you haven’t been to our 2 day Property and Finance event then visit www.upfront 21st Century Education welcomes 2010 Eleven years since being founded as a group of companies we are more passionate and committed to producing world leading educational strategies for our 21st Century Education Members – who now span 16 different countries – and also providing financial services to ensure our Members successfully implement the strategies into their daily lives. New Zealand this July. We look forward to seeing you at one of our upcoming events. We are currently making the events available for free. This year we have expanded our range of programs to provide an further array of financial and personal strategies.21stCenturyForex. ThinkandGrowRichforthe21stCentury. so please look at www. So if you feel you deserve a break. V Australia to Los Angeles then onto Miami in time for a 7 day cruise around the Caribbean. We are proud to announce our newest division.


I cannot thank Jamie enough.a. particularly in these challenging financial times. and by putting into practice some of Jamie’s affirmations and mindset strategies.000 and through the action plan that he developed with the help of the 21st Century Homestudy. we expect to have a great financial future. TAIKA JONES “Hi Jamie! I do not have any mortgages now. I feel we have control of our financial future. I did your course and escaped the rat race. BRAD CUSWORTH “Keep up the great work. I have doubled my income and will finish the financial year having quadrupled my income from the previous year! Jo Harrison “I increased my salary by $20.000! This enabled him to focus on his passion of building cars.” Carol Newton “Thank you for the education we have received which has enabled us to move forward. Our parents simply collect or did collect the government pension.” This has allowed me for the first time ever to save some money ($30. Greg is now poised to excel in his action plan towards renting shares. use some of his equity to generate instant cashflow and generate $30. We can use what we’ll learn over the next few years to continue to generate income as our working years ease. and took massive action with the share renting and selling insurance strategies he learned and one week made as much as $87. I am so glad we are with 21st Century in light of the massive financial crisis. We can learn little from them. This is only applying one strategy out of the many that are taught to you.000 in cash management trust) and to pay down a third of my (sizeable) mortgage which I will clear in the next 2 years. always helping people. We have had our own super for 10 years and have been investing for 15 years at least. and being a 21st Century Member. I generated enough money to pay for the course with my first trade and now consistently generate more income from share renting and selling insurance than working 6 days a week. Dale Beaumont “If you are looking to accelerate your financial results and create an extraordinary quality of life – then Jamie’s book is for you! It is a mustread for anyone wanting to excel and expand their knowledge. a former truck driver. the bonuses and value added content is continuously provided and updated. He runs a small building company and I teach.000 in a single month – enabling him to finally retire.000 p.000!” Greg Mountford Greg’s investment strategy so far has seen him investing in property to build a foundation for himself in order to synergize effectively with renting shares. He had a premonition before the stock market crash in 2007 to get out of the share market before it crashed and moved into other strategies such as learning about Property Options. Internet Marketing and decided to retire as a share investor from his success.” SHEENA & CHERIE STOKES Within 2 years Sheena and Cherie created an investment income for themselves. I am 53 and my husband 55. and implemented the debt reduction plan that Jamie recommends. You are really a great Australian icon. He started with his personal property worth $380.” Chris Karamoshos Chris started as a 21st Century Member in 2001.” PETER WAAKA “I joined 21st Century and attended the seminar in my hometown of Queenstown later that month.| upfront | SUCCESS STORIES 21st Century Academy has an incredibly extensive portfolio of graduate success stories – everyday people transforming their lives and making their dreams a reality Luke Deland “Within one month of joining the Academy and watching the Homestudy. Those of us who come from a heritage of working class families (rather than wealthy investor families) are pioneers for our age group. they’re ALL paid off. he has developed his portfolio into a $4 million portfolio. 8 |wealth educator . I have never seen an education system like this before. owning 8 properties. Within 2 weeks of finishing the seminar. Jamie is one of Australia’s most forward thinking educators and a fantastic teacher!” I have doubled my income and will finish the financial year having quadrupled my income from the previous year It is a challenge for us to invest for the long term and we appreciate what Jamie is doing to make seemingly sophisticated investment accessible to us. you are an inspiration. Now the debt is completely out of our space and we can focus on wealth creation and we know exactly when it will be paid off. Since we did this a year ago our net worth has increased by $100. they were able to help their Dad. With this knowledge and persistence.

In 2 months I turned this into $20.000– $150.000 I started trading.000 Australians.000. and grow within ourselves.WealthEducatorMagazine.com. achieve.au wealth educator| 9 .000 and bank average $40.000 the weekly turnover would be in the vicinity of minimum $80.000 the next month.” Jamie McIntyre has educated more than 250. it has made us so on fire to learn. Now I pull out of the market each week using this $50.000 then turned this $20. Thank you Jamie for awakening the entrepreneur in me that was laying dormant before I did the Homestudy Course. to a trader who has at least 2 -3 years experience. If I had a bank of $150.000 into $50.| upfront | NATHAN AQUARO & KIRSTIN SADLER “Ever since we started at 21st Century Academy.000. New Zealanders and now people worldwide www. We’re planning on buying our dream home and the car we have always wanted in the next 6 months!” VERN TAIKATO “10 years ago I did the 21st Century Homestudy Course and with as little as $3.

30am .30am .6pm Melbourne Sydney Sydney Melbourne Melbourne Office Holiday Inn.30pm 8.6.30am .6.30pm 8.Sun 14 March 8.9.8pm 8pm .Sun 28 March 8.30am . Potts Point Melbourne Office For Emins and Forex Live weekly Workshop dates and locations go to www.30pm 8.30am .30am .Sun 11 April Sat 17 .30pm Brisbane Brisbane Canberra Perth Adelaide Riverview Hotel Novotel.7.30am .30am .30pm 8.15am .Sun 16 May Sat 15 .30pm 8.30pm Newcastle Melbourne Coffs Harbour Coffs Harbour Crowne Plaza Novotel on Collins Venue TBA Venue TBA For Emins and Forex Live weekly Workshop dates and locations go to www.9.30am .30pm 8.com. Potts Point Holiday Inn.Sun 11 April 6pm .30am .6pm 6pm .Sun 16 May Mon 17 May 8.| upfront | calendar of events Below is a table of the seminars offered by 21st Century Education for 2010 MARCH Property Express Weekend (P) 21st Century Eminis Live Workshop (F) 21st Century Forex Live Workshop (F) 21st Century Forex 2 Day Workshop (F) Sat 6 .Sun 28 March Sat 27 .30am .30pm 9.8pm 8pm .6. Langley Venue TBA MAY Think & Grow Rich for the 21st Century Mastermind Seminar (F) 2 Day Finance & Property Mastermind Seminar (F) 21st Century Eminis Live Workshop (F) 21st Century Forex Live Workshop (F) Sat 1 .8pm 8pm .com.30pm 8.7.Sun 11 April Sat 10 .7.30am .Sun 21 March Sat 27 .6pm 8.6pm Canberra Perth Adelaide Rydges Lakeside Hotel Novotel.com.au Think & Grow Rich for the 21st Century Mastermind Seminar (F) 2 Day Finance & Property Mastermind Seminar (F) 21st Century Youth Summit (F) Sat 15 .au Think & Grow Rich for the 21st Century Mastermind Seminar (F) 2 Day Finance & Property Mastermind Seminar (F) Property Express Weekend (P) Sat 10 .30pm 6pm .Sun 18 April 8.30pm 8.au Think & Grow Rich for the 21st Century Mastermind Seminar (F) 21st Century Eminis 2 Day Live Workshop (EM) 2 Day Finance & Property Mastermind Seminar (F) Think & Grow Rich for the 21st Century Mastermind Seminar (F) 2 Day Finance & Property Mastermind Seminar (F) Sat 13 .FreeTradingWorkshops.30pm 8.Sun 14 March Sat 20 .7.FreeTradingWorkshops.30am .6pm Melbourne Melbourne Brisbane Venue TBA Venue TBA Venue TBA For Emins and Forex Live weekly Workshop dates and locations go to www.7.9.Sun 7 March Monday 8 March Monday 8 March Sat 13 .FreeTradingWorkshops.Sun 21 March Sat 20 .Sun 2 May Mon 3 May Mon 3 May 8.30am .6.6.5pm Melbourne Sydney Melbourne Bayview Eden Hotel Venue TBA Venue TBA 10 |wealth educator .Sun 2 May Sat 1 . Airport Rydges Lakeside Hotel The Melbourne Hotel Rockford Hotel APRIL 21st Century Eminis Live Workshop (F) 21st Century Forex Live Workshop (F) 21st Century Forex 2 Day Workshop (F) Wed 7 April Wed 7 April Sat 10 .30am .

Sun 27 June 8.30am .30am .7.Sun 6 June Fri 11 .7.au wealth educator| 11 .Sun 23 May Sat 29 .15am .5pm 8.| upfront | 2 Day Finance & Property Mastermind Seminar (F) 21st Century Eminis 2 Day Live Workshop (EM) 2 Day Finance & Property Mastermind Seminar (F) 4 Day Education for Life Seminar (HM) 21st Century Youth Summit (F) Sat 22 .30am .30am .Mon 31 May Mon 31 May 8.30pm 8am .30am .6.6pm 8am .6pm 8.Sun 4 July Sat 3 .Sun 23 May Sat 22 .Sun 30 May Fri 28 .7.11pm 8.30am .Mon 19 July Sat 31 Jul .com (F) (P) (EM) (HM) Free Event Paid Event 21st Century Eminis Members Only 21st Century Homestudy Members Only www.30am .30pm Melbourne Perth Perth Brisbane Perth Adelaide Coffs Harbour Melbourne Office Perth Convention Centre Perth Convention Centre Rydges Southbank Venue TBA Venue TBA JULY 2 Day Finance & Property Mastermind Seminar (F) 21st Century Eminis 2 Day Live Workshop (EM) 4 Day Education for Life Seminar (HM) Internet & Business Mastery Seminar (HM) Sat 3 .30pm 8.30am .Sun 20 June Sat 19 .30am .Mon 14 June Monday 14 June Sat 19 .21stCenturyEvents.30am .Sun 4 July Fri 16 .11pm 9.30pm 8.7.com.6pm 8am .30pm 8.Sun 20 June Dates TBA Sat 26 .15am .30pm 8.6pm 8.30am .10pm Gold Coast Melbourne Queenstown NZ Gold Coast Venue TBA Venue TBA Millennium Hotel Venue TBA For more event dates and seminar bookings go to www.WealthEducatorMagazine.11pm 9.Sun 1 Aug 8.7.5pm Hobart Sydney Townsville Brisbane Brisbane Mercure Hotel Venue TBA Mercure Inn Novotel Mercure Hotel JUNE Property Express Weekend (P) 4 Day Education for Life Seminar (HM) 21st Century Youth Summit (F) 2 Day Finance & Property Mastermind Seminar (F) 21st Century Eminis 2 Day Live Workshop (EM) Think & Grow Rich for the 21st Century Mastermind Seminar (F) 2 Day Finance & Property Mastermind Seminar (F) Sat 5 .

I have modelled many business distinctions from him that have increased my business success. Who are the mentors that have inspired you and what important lessons have you learnt from them? Over the years Anthony Robbins.. I used to love playing Monopoly and even more so when I was winning. I made him an offer to work for one of his companies on a free trial in order to access him as a mentor and learn what it takes to become a self-made millionaire. property. Today I have companies in education. finance. Q. I would model success more. Most people overestimate what they can accomplish in 12 months but underestimate what they can accomplish in a decade Q. insurance. In business I’d be slower to hire and faster and look at raising capital in early stages of business to speed up the result by looking for a corner stone investor that can also act as a business mentor. such as using the one brand called 21st Century across numerous companies and industries like Virgin does. He owned more than half a dozen companies at the time. recruitment.. In more recent years I’ve met several billionaire businessmen who have been mentors 12 If you had to start over. accounting. would you do anything differently? Absolutely! I’d ask for help more particularly when starting out as most people like myself try and do too much themselves and usually only ask for help when they are about to lose everything. including Richard Branson. Here are some extracts from that interview Was there a defining moment when you made a conscious decision to begin a journey towards wealth creation? As a kid growing up. I think I believed that being rich meant being above average and having the ability to get the most out of life. Who was your first mentor or inspiration? My first mentor was a self-made millionaire in his 50s who lived in Sydney. Eminis and also Forex Trading and even health amongst others and all using the 21st Century branding. and a real estate agency. In addition. has mentored me. Q. who was also the person who inspired me to develop a speaking career.| upfront | interview with jamie mcintyre Q. I have also been shown how to partner with other companies to grow even faster in industries that I don’t have the specialised knowledge in. including commercial real estate. Fiona Jones interviewed Jamie McIntyre for her latest book How 16 Aussie Blokes Went from Mega Broke to Mega Millionaires. I was definitely inspired by the TV show “Dallas” in which JR Ewing and family lived an extravagant lifestyle from the money they made through their oil fields. I have some non-branded companies that actually compete against my own branded companies to increase market share. accounting. financial planning. I always remember wanting to be rich. |wealth educator . property management. stockbroking.

Last year I was about to list my companies on the ASX for between $70 and $100million before the global credit crisis hit and the stock market crashed. What advice would you offer to someone starting out on their wealth journey? 1.” What’s the secret to being wealthy? Sir John Templeton. Everyone was eagerly waiting the next great stock tip. In more recent years I’ve made money from the Internet while I have continued to build multiple incomes by starting more than a dozen companies. remembering that anything you want to achieve others have most likely already done-so learn from them. Yet adults forgo such common sense fundamentals and will see poor people such as typical financial planners who generally aren’t wealthy from investing and expect them to help them to become wealthy. mainly buy and hold and building multiple income streams from different businesses for passive cash flow. What vehicles have you used to build wealth and how did you use them. business. 3. can you share it with us? “Most people overestimate what they can accomplish in 12 months but underestimate what they can accomplish in a decade. I invested into residential property.au wealth educator| 13 . Or have no money but be grateful for what you do have and you’re truly wealthy.000 acres. This is the biggest reason most Australians fail financially by expecting a salesperson dressed up as a “financial planner” who is selling investments with large commissions to help them become wealthy rather than putting the effort to educate themselves. business and shares. But his answer was. Then I learnt about renting shares. If I asked teenagers who should you listen to if you want to be rich . for example. “Simply wake up every day and focus on five things you can be overwhelmingly grateful for”. Attend quality financial educational programs. Q.| upfront | If there is a significant quote or saying which you live your life by. property division of sheep and cattle farms in Northern New South Wales of more than 13. “you can have all the money in the bank you wished for but lose perspective on life and lose all your wealth. which was unrealistic.000 into a quality financial education over a space of a few years to accelerate y our knowledge and ability to take action with strategies. I have built a multimillion-dollar rural Q.” Q. I’ve also sold more private shareholdings in some companies I’ve helped establish. Get a financial education. He said that’s real wealth. Q. 2. Initially. was asked the secret to becoming wealthy. So people will say I don’t have the money.a rich person or a poor person? It’s obvious to teenagers that the answer is a rich person. a billionaire investor who made his money investing in the share market after the Great Depression. property investing. which is one of the reasons I achieved wealth faster than most.WealthEducatorMagazine. instead of initially being impatient and wanting everything to happen within 12 months. How much do most people spend to go to University versus how much do most people invest into a real life financial education? I’d recommend investing $5000 to $20. yet they will go and borrow money for a car or run up credit card bills. shares? I’ve focused on the three key areas of property.” I found this to be so true for myself. My millionaire mentor always told me “Jamie. which worked well with property investing to provide another means for cash flow. Cynicism is an elaborate cover up for fear of taking action in an attempt to avoid the risk of failure. www. Yet most Australians are too cynical to invest $20 into a wealth book and wonder why they aren’t wealthy. I achieved so much more in a decade than I ever imagined by taking massive intelligent action and allowing time to work for me. Model success. At this point I have decided the best strategy is to remain a private company so I retain control.com. He said. Develop a plan. you can make excuses or you can make money but you can’t do both at the same time. I have combined them to accelerate and diversify my wealth.

covering topics such as communication. 21st Members get $500 credit for any programs they’ve invested in 2009 or 2010. Find adventure parasailing high above it all. Entertainment Place. the Caribbean is the ultimate outdoor playground key note speakers on varying topics. Youth Zone. covering offshore strategies as well as several CARIBBEAN From snorkelling and swimming to shopping and gold. is possible -7 distinctly designed neighborhoods including Vitality at the Sea Spa & Fitness. relax surrounded by the white-sand beaches and beautiful turquoise waters of the most beautiful islands on earth. at the Dolphin Encounter or get up close and personal with stingrays in Grand Cayman. this 16-deck marvel proves that the impossible.700 spacious staterooms. tuition and some activities will be from $4. goal/target development.php * Based on twin share and excludes flights to port of departure.21stCenturyAcademy. self reliance and ignite their entrepreneurial spirit. When it comes to beautiful beaches and sparkling blue waters. Pool & Sports Zone. Central Park Neighborhood and the Boardwalk Neighborhood. ^  xcluding 21st Century Membership.495. entrepreneurial perspective and wealth creation. The atmosphere will be relaxed and playful and  there will be ample time for fun.com/  platinumclub. Pricing for the seven day Platinum event Cruise* including food . The 2 Day Platinum event is designed to accelerate each participant's self confidence. E Credit based on full payment price and fees paid. 21st Century Members have the opportunity to join Jamie McIntrye for seven nights cruising these idyllic islands on the world’s newest and largest cruise liner. 14 |wealth educator . With 28 ultra-modern loft suites and 2. There are countless adventures within reach on your cruise vacation.995. entertainment. the Caribbean is really in a league of its own. And when you’re not furthering your journey to financial freedom. www.| upfront | getaway In January 2011. This event will be limited to 100 places and the trip will include 2 day Platinum seminar. Spouse and friend rate is only $2. like visiting local attractions and adventures.^ For further details or to secure your place on this exciting adventure visit.

I had the opportunity to train for an actual space mission to the International Space Station alongside other government funded professional Russian cosmonauts and NASA astronauts. I will become one of the first 450 humans to ever reach Earth orbit. I continued my spaceflight training for an orbital insertion mission into the cosmos. As a member of an assigned crew.com. A pod of pilot whales swam alongside me. 1912. I was descending into an alien environment so potentially hostile. It was an outline of the most awe-inspiring structure I have ever witnessed in my life. barely a metre from the bow. After a five year training regime I am qualified as a flight certified astronaut and I was named to there allowed me to immerse myself in the elite world of human spaceflight where the essential skills needed for living and working in space were honed. Just a few years ago. The pilot whales escorted me down to about 300m – like caretakers of the ocean – giving me a personal tour of their domain. so majestic. five miles below.| upfront | enjoying the highs and lows A glimpse into the life of Financial Freedom Institute chief executive Nik Halik. That was a year when there was such optimism – the new century. All traces of sunlight disappeared and I was immersed in total darkness. I came upon the bow of Titanic. The training After a five year training regime I am qualified as a flight certified astronaut and was named to an official space mission crew porthole.233 kilometre journey with each single orbit. the ambient light from the portholes disappeared. a distinction that fewer than 800 people have ever experienced. I observed something on the radar screen. By rocketing to space as a privately funded and trained civilian astronaut. ninetyfive years after it plunged to the ocean floor. The original pathway to entry into the astronaut program was complicated. Within minutes. They were attracted by the sonar navigation. Pressing my nose against the an official space mission crew. I illuminated the pitch-black environment with the piercing lights of the submersible. so elegant. As an aquanaut. This is the story how I became one of the very few people in the world to ever dive down to visit the wreck of Titanic. My main training took place at the legendary Gagarin Cosmonaut Training Centre in Russia. Exactly twenty-eight minutes had passed and then. I could reach out and touch it. I then returned to Russia to complete my Astronaut certification. These were the early maverick days and industrial might of the turn of the century. After three hours.WealthEducatorMagazine. who has been to the bottom of the ocean as a qualified aquanaut – now he is training to leave the planet as a qualified astronaut.au wealth educator| 15 . The training centre was situated in a faraway place called Star City. in a moment of sheer ecstasy. I was invited to undertake a dive down to the most famous sunken ship in history. The promenade decking was still intact. the fastest and biggest ship of its time and the marvelous anticipation of its maiden voyage. As I dived I felt a surreal experience. The Titanic is frozen in time. After becoming certified as an Aquanaut. The ballast tanks took in seawater and I began to sink down to the murky depths of the Atlantic Ocean. a time capsule of the year. www. A twenty-five tonne crane attached itself to my submersible before placing me in the water. to rocket around the Earth every ninety minutes and complete a 40. north-east of Moscow. My heart was rapidly pounding. In Russia. one of the world’s leading training facilities for orbital space missions. It was a surreal motion picture moment. I was thrown into a maelstrom that pushed human tolerance to the limit. I had some guides for the early part of the journey. is a highly sensitive military installation and Cold War-era massive facility. Star City. with close to zero chance of assistance from the outside world if I required rescuing. as if I was traveling through outer space.

Call Me Ted | by Ted Turner and Bill Burke. the one-time vice-chairman of Time Warner Inc.5 billion. Ted’s is definitely interesting. it was written by a former managing director at Morgan Stanley who was handpicked by Buffet to chronicle his life. the four-legged theory has grabbed everyone’s attention. will get you far.| upfront | BETWEEN 10 BUSINESS BOOKS Tribes has raced to the top of the bestseller lists. 4. Now powerhouse books like this can go two ways: they can be overdone or they can be interesting. With a title as grand as this. but it’s still a fantastic read for those who like to think differently – and even those who don’t. How could it not be? The founder of CNN. There have been lots of books written about Buffet over the decades but this. most people don’t he says. is like having a peek behind the almighty Wizard’s curtain in grand old Emerald City. Other books worth reading by Seth Godin include Meatball Sundae. on the other hand. Godin is now making more media headlines with Tribes. It tells the story of his childhood (he suffered great loneliness as a child. so famous it has now passed into business language. Barack Obama’s The Audacity of Hope: Thoughts on Reclaiming The American Dream and Nassim Nicholas Taleb’s The Black Swan are the current reads among top executives wanting to be in the know (and show others they are in the know) but in the past bestsellers such as The Tipping Point have been the reads to feature on the side of your desk. 3. having been sent to boarding school at the age of four. Turner is certainly a subject worth writing about. The Snowball | by Warren Buffet and Alice Schroeder. He’s one of those authors who’s become more than just an author: he’s become a business brand. Since it was published. you know this is going to be a powerhouse of a book.” Seth Godin’s witty take on businessby-colours is not a new book. Forbes called it “The mandatory book to read in these treacherous times of financial crisis. a book about the unfortunate result of mixing two good ideas together. then his father committed suicide when he was in his early 20s). And that. of course. because they’re too busy ‘sheepwalking’ their way through life and following the herd. Secondly. BusinessWeek and Wall Street Journal.” A mustread. The Purple Cow is all about how companies can transform themselves by becoming remarkable. as anyone aware of Buffet’s business workings knows. rippling through American business conversations like an Angus bull after a paddock of long-legged jersies. as many biographies do. Snowball strips away the mystery that has long cloaked the word’s richest man to reveal a life and fortune more complex – and interesting – than many of us suspected. Tribes | by Seth Godin. it seems. the New York Times bestseller. The Miami Herald listed it among the best business books of 2008. it doesn’t hide the truth. the world’s first 24-hour cable news network. which is. and The Tipping Point. and a cover photo that shows Ted in a rather smug pose. including those at the New York Times and Wall Street Journal. 16 |wealth educator . the first man to be named Time magazine’s Man of the Year (in 1991). However. or slapping new marketing onto old and ending up with nothing. You know a book has reached critical mass when CEOs start referring to it in media interviews. whether you’re at the top of the corporate ladder or trying to rapidly rise up it. including those published by Amazon. 1. For a start. For those seeking to understand how great minds work. The Purple Cow | by Seth Godin. New York Times. Call Me Ted is a must-read. So what are the hot publications to have now? Here’s a list of our top 10. Purple Cows indeed do well. As Forbes. Being purple.com wrote: “The key to success is to find a way to stand out – to be the purple cow in a field of monochrome Holsteins. but offers a startlingly frank account of Buffett’s life. Since it was published. stands apart. 2. the largest landowner in the US and one of the world’s richest men with a fortune estimated by Forbes to be worth almost $2. Having written his way to fame with The Tipping Point and a library of more than 10 other intriguing bestsellers. In it Godin argues that everyone has an opportunity to start a movement – to bring together a tribe of like-minded people to start a movement and do amazing things. But Call Me Ted goes far deeper than just his hip pockets. and the story of his drive to succeed. It seems obvious but in fact many companies are only too happy to blend in and be like everyone else. Business Week named Seth Godin as “The Ultimate Entrepreneur for the Information Age” and it’s easy to see why. which is about how people become leaders. The book has since raced up bestselling charts. one of the world’s largest media companies.

It’s a book that combines invaluable advice with remarkable and candid inside stories 9. engaging and often extremely funny. In Business Stripped Bare Branson proceeds to peel the layers off the complex world of money-making ventures. | upfront | 6 www. The term ‘black swan’ comes from the assumption that most swans are white and so a black one is a rare occurence. The book has become a much-discussed tool for those seeking to understand the collapse and the reasons for it. and paints a compelling portrait of American society as he does so. email and texts. as we all now know. and Audacity is lively. He says it’s important not to try to predict Black Swans.WealthEducatorMagazine. 7.au wealth educator| 17 . most brilliant and audacious deals. Focusing on the world of social networking.com. The man is. Under Taleb’s argument. The Naked Entrepreneur | by Troy Hazard. if only to understand why it’s important to be ready for anything in business. Dreams From My Father | by Barack Obama Dreams From My Father chronicles Obama’s life and his relationships with those around him. 6. a great orator. which reasons that there will always be things that are difficult to predict and rare beyond the realm of normal expectations. but even leaving aside that fact this is a great read. it shows how our lives have been transformed by new ways of communicating. The Black Swan has been a huge bestseller in the past year or so. 8. most of his books are probably ghost-written but the books are still interesting insights into one of the world’s greatest marketing minds.THE LINES YOU should be reading now 1 2 3 4 5 5. but well worth a read. Business Stripped Bare | by Richard Branson Branson is a prolific writer. Author James Harkin describes how the architecture of our digital lives was built. but to build robustness against them. interesting. 10. Just gripping. It’s a complex theory and a complex book. The Black Swan | by Nassim Nicholas Taleb. The Audacity of Hope | by Barack Obama It was only natural that this book became a bestseller in the wake of Obama’s election to US President. Sure. Cyburbia | by James Harkin It was inevitable there would be a rash of books emerging on the Internet phenomenon and Cyburbia is one such publication. it’s all to due with the ‘The Black Swan Theory’. He shares the inside track on his life in business and reveals the truth about his riskiest. A small book but one with a lot of grunt that follows the entrepreneurial path of Troy Hazard. intelligently written and surprisingly moving. but he is also a brilliant writer. almost as prolific as he is in business. Candid. partly thanks to the collapse of the financial markets. and shows how a concept that began with the need to shoot down German bombers has evolved to govern almost everything in our lives.

it’s tough making a buck today. HIDING IT There’s no doubt about it. SAVING IT. fast cars and fine wine? Here is the A-Z guide to investing in 2010 – for all those who need some ideas what to do with what is left of their money |wealth educator of modern . And then where do you put it when you’ve hung on to it? In the bank? Under the mattress? Or in a Cayman Island account far from the worries of Wall Street? Or do you invest your extra cash in good old-fashioned things. like art. Even hanging on to the money you’ve got is hard enough. HOARDING IT.a-z the By Janelle McCulloch 18 wealth MAKING IT.

Art may well be the big new investment next to property. or find something you can do afterhours or at home. Do a parttime job on weekends. It wont happen over night. and eBay has lots of bargain heirlooms too. the hottest thing at the moment now is an oversized cocktail ring in a gorgeous but inexpensive stone. Even offloading your unwanted things on eBay – old bikes.au www. (Sorry. If you can. But you don’t need to go for the avant-garde to make a killing. try and find different streams of income. isn’t a good idea. few staff members to pay. buying products overseas that you can on-sell back here (such as Apple iPods. Hang onto whatever equity you’ve got at the moment.seek. books and clothes – can make you some fast money. or simply seeing what people are buying in eBay and targeting the market. Kozminksy jewellers is doing a great trade in elegant Art Deco rings.com. Names to watch out for include Brett Whiteley. Instead of topshelf tipple. Whatever you do. Ask around at art galleries or auction houses to see who’s selling and/or has potential.com. such as aquamarine. Clifford Possom Tjapaltjarri. So if you want to make fast money. just get one to make all this wealth happen. Emily Kame Kngwarreye. Venice Biennale participant Shaun Gladwell. Everyone’s looking for ways to make quick money at the moment. It might have been oh-so-cool to swing your gorgeous new Ralph Lauren Ricky or Hérmes Kelly handbag around a few months ago. but it will happen. A is for cheap plonk. you could always ask them if they want to borrow one of your handbags? But then you’d probably lose the friend. British wildboy Damien Hirst sold more than $200 million of pickled animals and splatter paintings in London last year. Young. rich and ready for excitement. particularly in property and particularly when shares have fallen. you may be doing some elderly dowager a favour by buying her jewels. try and secure your income stream in 2010. Every extra dollar will come in handy in the months to come. B E F I is for id. it’s the dot-comers who usually dig in and come up with brilliant start-up ideas.) Artists such as Klimt. caravans. have someone else buy it for you) opt for vintage pieces. And since Damien Hirst’s work is highly sought after. Even bubbly’s being affected by the downturn. they believe that they deserve everything they get. think of a great Internet start-up. C G H is for staying grounded. is for bling. I is also for income. If you have one. motorbikes. Pickled animals. The IDs are becoming the hot new consumers.| upfront | is for Art. swinging the bling is no more. deKooning and Warhol have all been fetching staggering prices at auctions recently. Try www. or look for freelance work. especially now. splashing out on exy alcohol is a thing of the past. (See also handbag. D is also for the Aussie dollar – and for depressing. you may have to settle for a bottle of ordinary. J is for private jet.com. now that their cousins. It’s safe and secure.WealthEducatorMagazine.au wealth educator| 19 . E is also for equity. Champagne producers are forecasting 3 per cent lower sales this year. If you don’t have a few millions (and who does anymore?). Why? Low overheads. We figure the market for private jets will diminish shortly. B is also for think big. And for economical. If anything. that’s right. And they won’t wait for it either. doing up anything for a profit (vintage cycles are big at the moment). Unlike some other investments. Yes. Dot-comers are being seen as the ones to watch. now might be a good time to sell. it’s probably better to think big during the economic downturn because it tends to be a time when good opportunities present themselves. which is what we’ll all be soon. such as Krug’s Clos du Mesnil’s limited edition Champagne for $US750 a bottle. or designer handbags). And the handbag. cars. you’ll have a much greater chance of getting through the next year unscathed.) If you want to buy a diamond (or. it seems. Hide the Cartier diamonds and pack away the Bulgari baubles. breathe deeply… is for handbag. so you’re not dependent on just one. But there’s another reason why dotcomers are being scrutinized closely: in times of economic trouble. now that shares and the good old savings account have suddenly become passé. bad pun. and quick implementation. Archibald prizewinner Del Kathryn Barton and young indigenous artists Regina Wilson. Otherwise. If you keep your head while everyone is losing theirs. D is for dot-comers. And you never know. Narrowing your dreams. Just remember. not to mention the fact that everyone’s leaning towards the Internet now. It’s not the done thing to flash your bits around now when everyone else is considering selling theirs off just to pay the mortgage on the mansion. the ‘I deserve’ generation (Sometimes called the iPod generation). even better. Sadly. since her super’s probably worth as little as a cubic zirconia at the moment. non-vintage fizz for $40. Of course. the hedge funders are in the worlds’ bad books. J is also for Job. those pickled animals have probably just become highly profitable. The party’s officially over.au or www. Some of the more popular ways include buying domain names. is for economy. is for fast money. but now it’s probably not a good thing to show up at the networking evening or charity ball with $30. look for up-and-coming artists that show promise. Having good equity is like money in the bank because you’re just sitting on it.mycareer. Now that we all have to curb our spending habits. Destiny Deacon and Brook Andrew.000 crocodile number under your arm when your friends’ net worths here been halved and they’re having to sell their beach house and scale down to a paper bag to cart their things around in.

20 |wealth educator .unclaimedsuper. Find out if you’re owed money. Knowledge is power. is for vendor. That’s it. Force yourself to stay up-todate with the financial news. such as credit cards. is for timing. making it the perfect time to invest if you have the cash to spare. And you may even find out information that can put you ahead of other investors. Stockpile your best for the austere days to come.| upfront | K is for mortgages. The best investors know when they’ve made enough money with an investment. new year. Mortgages are making news at the moment and it’s not surprising. is for unclaimed super. Aim to be a vendor. how we love property now. now is the time to start. 2010 looks like being a year of low rates. L M N O P is for knowledge. trees are suddenly good investments. Nuff said. in 2010. Practice it. especially at this point in time. The right timing is everything. magazines and attending seminars. Pru-dent. Keep positive in 2010 and you’ll be halfway there. T is also for tree. with the cuts in interest rate. or even studying books. there won’t be any surprises. If your bank hasn’t passed on the cut. If they still won’t help. Oh. all the wealthy country set rushed to buy one so they could plant them in their gardens.comau P is also for property. Yes. is for prudent. and stick to it. That way. Q R S T U V is for quitting while you’re ahead. Now. The more control you have over your home/ business/life. don’t hesitate to ask them for a better deal. is for online. With the Reserve Bank continuing to drop interest rates. S is also for Scotch. especially in the current economy. it may be worth it in the long-run. And if you can’t get one. is for new job. don’t hesitate to ask why. is for the love of money. Go to www. And especially in 2010 when property prices are set to soften. is for strategies. We need some good news. Everything is happing online: it’s where the more interesting businesses are starting. P is for paperwork. new start. and you’ll have a better idea of where you stand. these Wollemi pines are said to be adding thousands of dollars to the value of these country estates. When Sotheby’s auctioned off a limited number of first-generation Wollemi pines. down – you don’t need the extra drain on your finances. Work out an investment strategy. or an owner. The new word for 2010. new attitude. don’t hesitate to go to a different bank. the more secure you’ll feel. Even if you have to pay a penalty to get out. in 2005. If you’re not in the habit of reading the financial newspapers or online business and financial sites. is for interest rates. P is also for personal debt. Get all unnecessary debts. one of the world’s oldest and rarest trees. Get up to date with yours.

They’re smart.WealthEducatorMagazine. tech-savvy and ready for anything – and they’re just about the only ones still cashed up after the recent economic downturn www. techsavvy and ready for anything – and they’re just about the only ones still cashed up after the recent economic downturn. Gen Yers are fast becoming the generation to watch. sassy. Trust your instinct. bottles of fine wine and other collectibles are being touted as safer and higher yielding investments than financials.| upfront | W X Y Z is for Wine. but listen to your gut as well. Sometimes you know when something’s a good thing. is for the end. cars. Gen Yers are fast becoming the generation to watch. is for generation Y. sassy. Most of us can’t afford a vintage Bugatti or a masterpiece by Warhol so the affordable alternative is wine. Do your due diligence. Paintings. They’re smart.au wealth educator| 21 .com. is for X-factor. Thank goodness 2009 is over.

Richard has become famous for his daredevil stunts in hot air balloons and ocean racing among other things. Never delegate financial control completely. yet operating without it reduces a person’s capacity to make a positive difference. This is probably the most valuable lesson I’ve learnt for business from Richard in a monetary sense. which is one reason Richard Branson inspires so many as it’s obvious he loves being an entrepreneur and does business with a passion. I used to delegate it completely and as a result have lost millions from fraud and simple mismanagement by financial controllers. As I own 12 companies myself I couldn’t possibly do full financial control for all companies and have a life. Ultimately Richard is still motivated and passionate to work as he is focused on making a positive difference to the world and thus has boundless energy and money is a secondary driver. Not only is it a lot of fun – as everyone loves a party – it helps your team bond and enjoy their work more because it’s not all hard work and no play. Richard advised me personally to throw a lot more parties and celebrate more achievements with my team. One may not need to be a daredevil to succeed in business however one must be willing to embrace risk. Yet it is commonly overlooked by so many people. This was a crucial lesson and difficult to do as one needs to delegate work to allow a business or companies to grow. Richard said no matter how big a company becomes the owners should go into the business and sign cheques every six months so they know the expenses and as a result can question costs to lower 4 7 6 7 LESSONS the companies’ overheads. 5 3 2 |wealth educator . These are just some of the valuable business and life lessons I’ve learnt from Richard Branson that I believe – if applied – will increase anyone’s chances of success in business and life. Richard gets his passion from making a difference and ideally making a profit at the same time so he can continue to make a difference. Too many entrepreneurs micromanage their companies to death and never allow it to grow to where it will run without them. were passionate about their roles and felt a part of the Virgin family and thus would go the extra distance to deliver results. On the other hand people that are better managers often start their own business and fail as they’d be better off partnering up with a good entrepreneur and running the entrepreneur’s company. yet the value of the brand not only carried over but increased the value of Virgin as a brand to such an extent it is now one of the most valuable brands in the world. however look for ways to celebrate success and reward your team as much as possible. Branding is king. Spending time with Richard’s 22 21st Century Education chief executive Jamie McIntyre shares the seven key lessons for business – and life – that he has learnt from Virgin head Richard Branson Virgin Team at some of Virgin’s parties I could tell they all loved the Virgin Culture. Build a committed team around you and allow them to grow by delegating. This is a common lesson shared by the majority of successful millionaires and billionaires I’ve studied. As a result I now keep a much closer eye on every expense throughout my companies and have saved millions as a result. Many people have issues with making money. Make a difference. Life is an adventure – so take some risks. Make business Fun.leaders RICHARD 1 branson’s Do what you love and are passionate about and you’ll increase your chances of success in any endeavour. Richard realised that you are either an entrepreneur or a manager – but not both. To personally keep up with Richard’s schedule one would need boundless energy as he packs so much into every day of his life. He said you don’t even need to spend a lot of money. Virgin broke all the rules of marketing by using the same brand across completely unrelated industries. Many of Richard’s successes have come from attracting a quality team of passionate managers and then allowing them to run his business and not micro-manage. Most people’s ideal career is to do something they love and make a lot of money doing it.

The logistics behind the event was certainly appreciated by myself considering the amount of logistics and pre-work required to run the seminar division of my company. Thursday February 26th 2009 Off to V Australia’s Sydney launch party with Sir Richard Branson. Sir Richard is renowned for throwing good parties and he himself knows how to have fun.WealthEducatorMagazine. It was held on Cockatoo Island–a surreal setting on an abandoned island in the middle of Sydney Harbour where Hugh Jackman’s famous Wolverine movie was being filmed. My partner is excited.au wealth educator| 23 . part of the Virgin family which will fly direct to LA. As a personal supporter of Virgin's charities we have been invited to be part of ‘V Australia's’ Launch to the world..Extracts from Jamie McIntyre’s diary and spending time with Richard Branson. Friday February 27th Departing on V Australia maiden flight with Sir Richard Branson. We depart the Gold Coast where I've recently moved from Sydney to live. including numerous actors and actresses who apparently are TV stars on Home and Away and Neighbours.. The prelaunch party consisted of 1000 people ‘ferried’ to Cockatoo Island from Circular Quay.JamieMcIntyre. I was fortunate enough to meet Sir Richard Branson a few times last year which was an absolute privilege as he has been a business role model for many years. It wouldn't be a Virgin Launch without the 'parties' and we are invited tonight to the prelaunch party in Sydney to celebrate. so it was great to reconnect and all in all it was a great night which finished in the early morning. The pre-launch party in Sydney last night was a blast. 'V Australia' is a new airline. Marcia Hines and numerous other celebrities. so I am looking forward to a lot of fun tonight. I was able to chat to Derryn Hinch on the ferry who had travelled from Melbourne to be at the event and he seemed like a nice guy. Friendly bunch and I promise them I’ll watch Home and Away and Neighbours at least once to check their acting talent. For more of Jamie’s time with Richard Branson go to www. as this is her first trip to North America. We departed 3pm today on V Australia’s maiden flight with Sir Richard. Catriona Rowntree.com www. We also met up with some friends at the party. We were fortunate enough to have access to the VIP area at the party and met many interesting people. My partner and I will be on the very first launch flight with Sir Richard himself which departs tomorrow from Sydney International Airport at 3pm. Brett Godfrey.com. media and Virgin staff.

especially for those focused on the business of making money. In short. But he’s also one of the most mysterious. simplicity and thriftiness. Janelle McCulloch reports being a 24 |wealth educator .| leaders | the business of BILLIONAIRE Warren Buffett needs little introduction. In a world where fast money and big egos rule. The richest man in the world is arguably one of the most successful investors of all time. he prefers to live his life with humility. a modern paradox. he’s a business enigma.

” “In the business world. The boy who would become the $62 Billion Man started his career in 1941 at the age of 11.au wealth educator| ” 25 . He says he now regrets that he started too late. That way. At the age of 14. three-bedroom house he bought in Omaha for $31. Buffett still lives in the same small. Of course. Pick out associates whose behavior is better than yours and you’ll drift in that direction. If they were jerks before they had money. he filed his first tax return. The idea. Dubbed the ‘Oracle of Omaha’. and through the right kind of snow – it gathers substance and eventually turns into a bigger snowball. but they’re actually very effective. the tried and tested methods still apply. So that if you feel that a stock is worth $20. with an estimated net worth of $62 billion). the rearview mirror is always clearer than the windshield. He only pays himself $100. The course was so inspiring he decided to use his new communication skills to make money by lecturing on what he knew best – shares. Not only was he making money on the stockmarket. whether you like it or not. The richest or second richest man in the world. full of intrinsic facts and figures. at the age of 13. he says. “The basic ideas of investing are use the market’s fluctuations to your advantage – and seek a margin of safety. he bought his first property – a small “ THAT’S RICH CLASSIC BUFFETTISMS: “Of the billionaires I have known. Even though he’s a billionaire. simply by following the right philosophies. Most of us imagine that wealth is a complicated business. And he goes to great efforts to live frugally.” “It’s better to hang out with people better than you. buying it at $12 will give you a margin of safety in case your analysis turns out to be incorrect and the stock is only worth $16.1 Warren Buffett But Buffett also believes in investing with a margin of safety. which is to live well beneath your level of wealth. but it does provide room for error in an analyst’s judgment. Buffett seems to have an answer for everything – and not just the current financial crisis. a margin of safety refers to the style of investing in which an investor only purchases something when its market price is significantly below its intrinsic value. money just brings out the basic traits in them. After graduate school. but have everyone think you’re the world’s greatest lover?” It was an interesting insight into the world’s richest man. and if you push it downhill hard enough. you’ve always got enough when the going gets tough.” “Only when the tide goes out do you discover who’s been swimming naked. he was making more money by telling others how to do it. He’s been dabbling in investments since he was 13 (when he filed his first tax return) and has proven you can make money quite easily. His point was that world is going to have an opinion of you. snowballs can become dangerous. www. These kinds of quirky philosophies are typical of 78-year-old Buffett. but have everyone think you’re the world’s worst lover? Or would you rather be the world’s worst lover. Warren Buffett once asked somebody. Eventually. “Would you rather be the world’s greatest lover. farm – paid for using his savings from delivering newspapers. it won’t matter. using money he’d made on a paper round. And then there’s Buffett’s third philosophy.000 a year in income.com.000 in 1958. you’ll get to the bottom of the hill and find you’ve got a million. Buffett started working as a stockbroker. which was popularized by Buffett’s mentor. and then compounds some more. and then took a Dale Carnegie public speaking course.” says Buffett. But as Buffett proves. It was pure Buffett. they are simply jerks with a billion dollars. In essence. It’s the power of compounded money – well-invested money compounds.” “Intensity is the price of excellence.1: Never lose money Rule No. depending on who’s doing the ranking and when (he was ranked first in early 2008 by Forbes. and allows an investment to be made with minimal downside risk. 2: Never forget Rule No. the CEO of Berkshire Hathaway.” Rule No.| leaders | I n one of his more famous quotes. which they placed in barbershops. when he purchased his first share.WealthEducatorMagazine. In 1943. After all. But if you’re true to yourself.” “Cash combined with courage in a time of crisis is priceless. it doesn’t guarantee a successful investment. The difference becomes ‘the margin of safety’. has stood the Oracle in good stead over the years. who is as famous for his witticisms and bon mots as he is for his billions. Over the following years he and a partner bought pinball machines. Benjamin Graham. Buffett believes that wealth gained through the snowball effect – roll a little over. These things may sound like something our fathers or grandfathers would tell us (Buffett has been likened to a grandpa for his back-tobasics advice). if you roll it enough. in his usual over-simplified way.

They also show that his philosophy appears to be one of humility rather than ego. dealmaker.000. But what Buffett really wants to show is that you can achieve success in an honest way. through his $5 billion investment in Goldman Sachs). most modest billionaire the world has ever seen. is the number of people you want to admire you who do. paid more than $2 million for the right to dine with Buffett. In 1962. In the following years. • He does not carry a mobile phone. with simple pleasures. but wealth is not what drives him. In 1973. For Buffett. The venue? A steakhouse in New York. • He lives in the same house he bought for $31. “That’s not true at Berkshire. 26 |wealth educator . Together the sum of these various parts show that Buffett is a billionaire with a difference. It was the start of Buffett’s extraordinary empire. In fact. he gathered together 10 doctors who were willing to invest some of their money and form a partnership. In 2008. yet he leads a complicated life. which now sits above his sofa. He had the money: his net worth had reached $140 million. He still uses his father’s plain wooden desk to sit behind in his office. he’s quite possibly the thriftiest. In 2008. So in 1957 aged just 27. and with a million under his belt. What is most curious about Warren Buffett. who wrote The Snowball. a Cadillac. Zhao Danyang. more than 67 years after he first started working his way towards wealth. according to his biographer. it was enough of a margin of safety. $49. In 1988 he bought stock in Coca-Cola. excluding the value of fixed assets (factory and equipment). and only pays himself a small wage. which clearly illustrates that his life is far more than just dollars and profits. He has five homes but is happy just living in two of them. BEING BUFFETT A DAY IN THE LIFE OF AN ORDINARY BILLIONAIRE • Buffett has always been frugal with money. • Every year he auctions himself off for charity. • Most nights Buffett eats hamburger or pork chops for dinner. called Berkshire Hathaway.| leaders | Eventually. The measure of success in life. The Snowball – Warren Buffett And The Business Of Life by Alice Schroder is published by Allen & Unwin. he says. does not have a computer in his office and drives his own car. a Chinese businessman.000.” explains Buffett in his biography. he merged the partnerships and then bought a textile manufacturing firm. without resorting to dirty tricks. though. he began buying stock in the Washington Post Company. He’s a genuinely simple man. In Warren Buffett’s case.95.02 billion. He may have the money to single-handedly save the US economy (and is helping to. aged 32. which is now worth $700. he has a reputation as a tough. his motivation all these years has been to prove that you can be successful and still be honest and decent. Warren Buffett became the richest man in the world. He bought so many shares that he took control of Berkshire. and the rest of his office is full of photographs of family and friends. thanks to a combination of the compound/ snowball principle and a little margin of safety. Eventually. Berkshire’s share were $14.86 each but the company had working capital (assets minus liabilities) of $19 per share. “Balzac said that behind every great fortune lies a crime. It proved to be one of Berkshire’s most lucrative investments. he began to understand that he could make real money through investing other people’s money. with the winner receiving a lunch and free advice (although they’re not allowed to ask what he’s investing in). is that he refuses to live the life of a billionaire. it’s a hell of a lot. Alice Schroeder. even icy. Two years later he added to his portfolio by purchasing stocks in ABC when shares were $290 each. He’s framed a certificate from the Dale Carnegie course that he completed in 1952. he created further partnerships. In short.” So how can a man who travels via a $30million private Gulfstream IV jet maintain the healthy sense of balance as he does? This is the dichotomy that is Warren Buffett. He goes out of his way not to be disliked by anyone and yet.000 in 1958. and eventually purchased 7 percent for $1. aged 43. despite the fact that he is worth $US62 billion. it was still only $100.

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. He eventually buys 7 percent of the company for $1. Basically. now sit at more than $140. 1950: Aged 20 and a graduate. and one which it still holds. 1973: Aged 43. 1945: Aged 15. 1954: Aged 24. earning $12. 1962: Aged 32. in which he still lives. he passes friend Bill Gates to become the richest man in the world. he deducts his bicycle and watch as a work expense. 1969: After a bumper year. His partnerships have in excess of $7 million. an investment partnership. Buffet’s personal savings 2008: Aged 77. if he knows ten other doctors who would be willing to invest $10. he becomes a millionaire. 1988: Aged 58. he purchases a fivebedroom stucco house in Omaha for $31. stock has to be worth more than its price. further partners. which they place in a barbershop. He merges the partnerships and then finds a textile manufacturing firm called Berkshire Hathaway.02 billion. he and his friend buy a second-hand pinball machine for $25. he begins to buy stock in ABC. Graham teaches him that good stocks should provide a wide margin for safety. He takes control of Berkshire. Then he teaches a night class to people twice his age at the University of Nebraska on the subject of investment principles. he liquidates the partnership.000. He starts Buffett Partnership Ltd. His net worth reaches $140 million.000.| leaders | a life in BUFFETt 28 |wealth educator numbers 1943: Aged 13. two famous securities analysts Benjamin Graham and David Dodd. a doctor. 1966: Aged 36. 1957: Aged 27. It becomes one of Berkshire’s most lucrative investments.60 each. Working as a paperboy. at $290 per share.. of which more than $1million belongs to Buffett. shares for $14. he closes his partnerships to 1967: Berkshire pays out its first and only dividend of 10 cents. works as a stockbroker and takes a Dale Carnegie public speaking course. he begins work with Benjamin Graham. he begins buying stock in Coca-Cola. Eventually. he enrolls at Columbia Business School instead. he begins to buy stock in the Washington Post Company. He asks one of his partners.86 each while the company has working capital (current assets minus current liabilities) of $19 per share. worth $62 billion according to Forbes. excluding the value of fixed assets (factory and equipment). Buffett files his first tax 1965: Aged 35. He also starts several other partnerships. they buy three more. In the next three months. he keeps buying Berkshire return. he buys a gas station. 1956: Aged 26. Inspired by his mentors.000 each in his partnership.000 a year. eleven doctors invest. 1979: Aged 49. transfers assets to his partners and pays out shares. He begins purchasing shares at $7. he applies for admission to the Harvard Business Schools but is turned down. calculating using the difference between their prices and intrinsic value. and after marrying. 1951: Aged 21.

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The 30 – 50 per cent not returned is what is paid to the company to track down those fees and commissions and administer the yearly cash back service for the clients. “These commissions can be up to 1. “By nominating YourShare as their broker investors can reclaim the commissions they will currently be paying on their insurance.” It was due diligence that paid off. a rude shock to his accountant’s system. Paul. pensions.” Brady. or a commission. “Superannuation is the obvious example. annuities. so to speak. “There’s such a minefield of fees and commissions that Australians pay on their everyday financial products.. doing what he does best: crunching numbers and searching for answers between the dollar signs. even if the investor never hears from the adviser again. He discovered that no less than $2 billion was being paid every year on these fees. Unlike what Paul Brady did for a living. too.” For Brady.. “Living off savings with no clear direction or financial security was obviously challenging. We soon realised that everyday investors can’t access those trails or commissions directly. YourShare’s business model turned out to be a clever one. but I knew that if I got a job working for someone else I wouldn’t have the time to focus. and YourShare is slowly doing that. research and analyse the opportunities and consumer needs that I needed to start the company. who had spent 10 years living in London and working for some of the world’s largest financial institutions. Accountants love nothing more than getting figures right and making money in the process. who seems to have even enjoyed the financial potholes. It turned out that coming up with the idea was the easy part. to those third parties and advisers who distributed their products. It simply acts as an independent third party collecting fees and commissions on behalf of investors. knew there was money to be made in this – and not just for the clients.” he admits. A few days later. others probably would be.” explains Brady. “Understandably. It was a period in which he used up a lot of his savings – including the money he’d reclaimed from his own financial institutions.” That’s when the seed of a new business idea was born. found that disconcerting. who’s a CPA by trade and thus used to nutting out missing figures. “It was a tough period. 30 |wealth educator . the company does not provide financial advice in any way. and they are calculated and paid every year. “It’s been a long road. Out came the calculator and down came the business plan for YourShare o ne day Paul Brady’s wife Juliet opened a statement from her superannuation fund and noticed she was paying a hefty percentage of her investment in sales trailing fees and commissions to someone she had never met. “You need several thousand clients before a business like this even looks like breaking even. “YourShare is for investors who are happy with their portfolio but unhappy about the fact that they’re paying fees and commissions for a service they don’t need and aren’t getting. And the irony was that people would be making money by taking it out of financial instituitons. it has been a challenging learning curve from superannuation statement to business set-up. collects and refunds commissions and fees paid on financial products on behalf of the investors. but a vastly rewarding one. margin loans and other investments including managed funds and CMTs. CPA-style mind to sort it all out!” he laughs.“SHOW ME the mONEY ” Paul Brady noticed he and his wife were paying a hefty percentage of their investment for services they’d never agreed to. The company refunds 100 per cent of all entry fees and then sends a cheque to clients every year for 50 – 70 per cent of all trailing fees and commissions collected on their behalf. my wife and I were annoyed that we were being charged for a service we weren’t getting! So we set about trying to work out how we could stop paying those commissions. I never imagined I would begin a business such as this but it’s strangely rewarding.” I thought that if we were having trouble working it all out.” says Brady.” says Brady. superannuation. So the CPA went to work. We believe the majority of Australian’s have at least one financial product on which they are paying hidden fees and trailing commissions. It was.2 per cent of the value of the investment. he learned that it was all going where a significant portion of other investment money was going on ‘hidden’ fees. He decided to find out where their disappearing funds were going. It was a win-win scenario. products and services throughout Australia. others probably would be too. It tracks down all the trailing fees and commissions and gives the investor back a proportion of those fees by way of an annual cash-back cheque. but we have recently expanded our service to include mortgages. and the product for which trailing fees are most controversial. a company that tracks down. He did his due diligence. It does take an aggressive. not putting it in. What he found was that many financial institutions were paying what’s called a ‘trailing fee’. All those people could be reclaiming that money for themselves. It took close to a year for Brady meet the extensive regulatory requirements needed to secure the Australian Financial Services License required to launch YourShare. says Brady. and then set up YourShare in early 2006. “I thought that if we were having trouble working it all out. products and services. But its also fulfilling being able to send out cheques to clients.

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mindset Don’t do it alone 21st Century head coach and presenter Craig Jervis says most Australians need to embrace the concept of coaching to help them reach their goals 32 |wealth educator .

contribution and peak performance. That’s right. Why do Roger Federer. for example there is someone to listen to you and bounce ideas off. someone to push you when the going gets tough. though on the other hand their coach can see everything from the outside looking in. ‘I’m going to earn more money this year’ and so on and so on – unfortunately for most Australians their New Year’s resolutions never come to fruition because they have no idea what has got them to the place they are currently at. The benefits of having a coach are huge. Tiger Woods and Lance Armstrong have a coach? The reason is because they need another perspective. health. someone to keep you focused and on track. As we all know we live in a world where we want everything yesterday – having a coach will allow you to reach your goals much faster than doing it on your own. If I look back over the last 10 years of my life and the amazing results I’ve achieved. We live in a world where we want everything yesterday – having a coach will allow you to reach your goals much faster than doing it on your own What to look for when selecting a coach: • Does this person inspire me? • Has this person got the results I want in this area of my life? • Does this person set extraordinary standards? • Do they listen to me and does this person have a great communication style? • Make sure they ask you questions and don’t talk about themselves all the time and ask to talk to some of their past clients or they may have testimonials for you to view. there is no way I would of been able to achieve half of what I’ve done if I didn’t have a coach. a coach. Think of this: when Roger Federer or Tiger Woods swing their racquet or club they can’t see inside their swing. relationships. In the past 10 years I’ve personally had six coaches for different areas of my life – business. 2010 is the year of change and if you want to make this a huge year. If you want the ability to be able to look back over your past. ‘I’m going to spend more time with the family’. One of the reasons why people keep doing the same thing over and over again is because they are so unconsciously aware of what put them there in the first place. someone to help you define your goals (not resolutions) and make them specific and someone to help you get to your outcome or goal faster than you ever thought. If you want extraordinary results for 2010 and beyond – and you want to achieve them quickly – now’s the time to find yourself a coach and start on the road to success. someone who can hold your hand and guide you with another set of eyes and another perspective. there would have been quite a few New Year’s resolutions said between you. To change your future you cannot design it with the same mind that created your past. wealth. someone to keep you accountable. Things such as ‘I’m going to get fit and healthy this year’.com. understand where things went a little pear shaped and create a powerful future then you must find yourself a coach. www.WealthEducatorMagazine. You will need to find someone who you can identify with and they can identify your behaviours and give you solutions on how to make change and progress. For most of you as you counted in 2010 and watched the fireworks with your family and friends.2 009 has gone in a blink of an eye and now we are already well into 2010 and counting.au wealth educator| 33 . you must first change yourself.

a smart website and a new delivery of snazzy letterhead. It involves an extensive amount of due diligence. you need to do your figures before you decide to sign the contract on that fancy commercial premise. 34 bUYING A |wealth educator .BUSINESS (AND THEN PLANNING YOUR EXIT STRATEGY) Buying a business is a long-held dream for many entrepreneurs. But venturing forth into business ownership involves a lot more than just a shiny plaque on the wall. Whether it’s a new business or a franchise that’s been tried and tested by someone else.

and that’s all before you’ve even taken control of the place! Then there are things such as assessing your own strengths and weaknesses. redesigning it with a sophisticated. There’s the feasibility study. Sure. publicity and even customer service and loyalty. the market research. to buy it. destabilising your entire operation before you’ve even started. a potential money-spinner. He’d done the books: he’d just forgotten about the bar. the marketing and of course the management of the business to consider. did his market research. someone else has done all the legwork for you. while having a drink with a colleague in an atmospheric little hole-in-the-wall bar that he knew was up for sale. It may seem like an easier step to buy an existing business than setting up a new one on your own from scratch – after all. work his own hours. It was. staffing and HR. and employing staff or consultants to fill in these gaps. After 10 years of working for someone else. So one night. branding. including a financial forecast. wealth educator| 35 . He refined the concept. gentlemanly vibe – much like a private men’s club – and turning it into a financethemed bar called ‘Acquisitions’ so it would appeal to the traders. he decided. Because if you don’t look at everything. including establishing the customer base and creating the brand – but it’s actually a lot more complicated than just stepping into someone else’s shoes and counting the continued profits. he reasoned. And that’s a dangerously narrow-minded stance to take. Many people like Simon Jacobs are right “on the money” when it comes to their financial planning. even the drinks menu and the interior design. completed a comprehensive business plan. He hadn’t quite done all his due diligence. he wanted to run his own show. but he’d neglected to pay attention to the other elements in the business mix. but are surprisingly naïve when it comes to all the other components of the business mix. it will likely be one of those things will come back and bite you on the business bottom. bankers and other finance professionals who worked in the area. such as marketing. he might have prepared his business plan and ticked all the boxes on the financial side. and obtained finance. the funding (if required). make his own profits. Going into business is no simple matter. Which goes to show that even an accountant accustomed to dealing with other business ventures can fall down when it comes to planning his own. the other due diligence. For the next month he thought the idea through. namely marketing and PR. on a whim. He envisaged revamping it slightly.| mindset | Simon Jacobs was working as an accountant for a big city firm when he decided he’d had enough of his high-paying but stressful and ultimately unrewarding career. There was just one problem.

and finally ask whether the business licenses or tax registration certificates are transferable. Perhaps you’d prefer one close to your home? (Or one you can work on from home?) Perhaps you’d prefer one that is already being successfully managed by someone? Or perhaps you’d prefer one you can run single-handedly? 4. so look for a business that has some connection to something you’ve already done. friends. Look for a business that invokes some kind of passion or drive in you. The Franchise Council of Australia features a checklist of things to consider BUYING A BUSINESS – WHAT YOU NEED TO KNOW 1. employee contracts and any other relevant information.com. and copyrights and registered trademarks. they’re paid to sell the business. Just don’t rely on them for your due diligence. If you’re interested in a particular area. then keep up to date with the trade publications that cater to these markets. be it as a career. Here are some of them. how long the commercial lease is for. to successfully establish this business. There are people who help business owners find buyers – and investors find businesses. or one where your weaknesses or lack of industry knowledge will show from the start. or is it in a market area that’s in a decline? • Is there a strong. distinctive trade or brand name associated with the provision of the services? • What is the reputation of the business. one of them may drop a mention of a business that an owner’s considering selling. a sport. Ideally.au – which include asking questions such as: • Has the business been thoroughly proven in practice to be successful? • Does it have a novel or distinctive element about it that clearly distinguishes it from other similar and competitive businesses? • Does it have staying power – is it in a growth market. Decide what kind of business to buy. service or product? And will it be enough to sustain you while you get on your feet and find your way through the first year? But whether it’s a franchise or an existing business you’re thinking of buying or a unique. there are a great many more things to consider that just the business itself.” he warns. Look for potential problems.franchisebusiness. find a valuer who can fairly appraise it and its market value. 2. associates. whether the company owns trade secrets (and how it protects them). Look for a business that you can manage easily. including working capital. as many include ads featuring businesses for sale. “People need to assess why they want to own a business before they actually begin the process of buying one. professional legal and accounting advice from lawyers and accountants before they make any final commitment. HOW TO FIND BUSINESSES TO BUY 1. The learning curve will be too great. who holds title to company assets. not advise on its commercial viability. a hobby. Business Brokers.” The Franchise Council of Australia features a checklist of things to consider on its website’s business directory – www. “They need to assess the implications of owning and operating this business – it’s much tougher than most people realise – and ensure they have adequate financial capacity. 36 CLOSING THE DEAL Once you’ve decided that the business is a commercially viable one and want to buy it. Newspaper ads and trade associations/magazines. 3. ensure you research that business’s financials: review copies of the business’s certified financial records. so you need to assess why you’re going into business before you decide to rush in where many fear to tread. a skill or just a management style. owning a business isn’t for everyone. Chat with colleagues. including balance sheets. you should try and target something where your strengths will show through. DOING YOUR DUE DILIGENCE Before you rush into purchasing any business. non-franchised business that stands alone in the market. 3. Never buy a business that you know nothing about. even people you meet through networking or socialising. Look for a business you can grow easily. Word of mouth.| mindset | According to Alex of the Franchise Council of Australia. Many of the best opportunities come about through word of mouth. They also need to ensure they receive proper. Ask who actually owns the business. Try and buy it before it goes on the market: you’ll probably get a better deal.) 2. such as retail. cash flow statements. It’s easier to succeed when you’re passionate and energized by an idea or concept. accounts payable and receivable. if there are any ongoing legal problems. |wealth educator . marketing or T&L. (And even sell for a profit at a later date.

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As Napoleon Hill discovered — and it is just as true today if we look at the BRW Top 200 Rich list — is that many self-made millionaires and billionaires who started with nothing were academically poor and had dropped out of school or college early. “A detailed plan and an effective strategy are critical. “I have a definition of intelligence: ‘the ability to entertain a new idea is the sign of intelligence’. “The key separating those who succeed from those who fail. problem solving skills. Many people falsely believe if they keep doing the same thing over and over again they will eventually be successful because they are being persistent. Yet this is what most people do. Bill Gates and Google co-founders Larry Page and Sergey Brin. “The power of auto suggestion is a powerful tool for the subconscious mind to deliver to you that what you focus on. If you master this ability to become decisive the world is your oyster. “The critical lesson is all great riches first start as a thought. “Most people become so caught up in making a living they forget to live and they are too busy working hard to become rich. In 1937 Hill wrote. This is just as applicable today as in 1937. Being organised in the sense of being able to implement and take action on your plan is a skill anyone can learn. have their beginning in an idea! If you are ready for the secret. comes down to the ability to make a decision and act versus those that simply don’t. to me the single biggest difference from those that succeed in life to those that don’t. Alexander Graham Bell. is the persistence to keep going until the desired result is achieved. it then becomes possible to turn an idea into physical reality. Rockefeller Sr. The reprinted edition has been augmented by analysis and advice from Jamie McIntyre.” This 21st Century edition of Think and Grow Rich is recommended reading for any person with entrepreneurial ambitions and a must read for any person who wishes to improve their business and personal life. His words “Whatever your mind can conceive and believe it can achieve” serve as a timeless reminder for any person who wishes to achieve success in their chosen field. 21st Century Publishing has just released a reprint of the best seller with chapter summaries and a new chapter on entrepreneurial success stories covering modern entrepreneurs like Oprah Winfrey. |wealth educator . year after year and live a life of quite desperation and financial struggle wishing if only they won lotto their lives would be better? They neglect or simply aren’t aware of such secrets taught in this book that even the 38 Napoleon Hill’s original premise that success is limited only by a lack of imagination and action is still relevant more than 70 years after his seminal work was first published. an idea in the mind. myself included. “Desire is the burning fuel that is the first step towards success. Most procrastinate or think about it but neglect the famous Nike ad that says ‘Just do it’. Hill spent the next years interviewing subjects such as Thomas Edison. With more than 15 million copies sold of the original book. if ever. and William Wrigley Jr. communication skills. but few have. What separates those that succeed and those that don’t in my 15 years of studying success I find is the same as Napoleon Hill discovered —it’s mans ability to action an idea that is the ultimate determinant of success. Given the world has recently been exposed to one of the worst financial crisis since the Great Depression it is a critical time to revisit the essence of this book and discover that all wealth begins with a single thought. often considered the richest man in history.” This phrase is just as true more than 70-years later and is something for all entrepreneurial people to heed when they read this book. One of the men he interviewed was Andrew Carnegie. all earned riches. who was so impressed with Hill that he made him an offer: study more than 500 successful men and women to establish a formula for success which could be duplicated by anyone prepared to follow it. as making decisions is being a leader and makes it possible for things to occur. The results revolutionised the self-directed learning industry with the home-study course The Laws Of Success released in 1928 and Think and Grow Rich released in 1937. If such a book has existed for so long why are there so many seemingly intelligent people who work hard every week. you will readily recognise the other half the moment it reaches your mind. “What Napoleon Hill discovered back then is still so true today–the most successful people are able to reach decisions rapidly and rarely change their mind whilst the least successful people take forever to make a decision. “If success had to be simplified down to just one thing from all the millionaires and billionaires I’ve studied in the last decade.” McIntyre said. and then often quickly change their mind. “Those who become wealthy have generalist skills and the four key skills to succeed in today’s world are identical to what my millionaire mentor shared with me 15 years ago: negotiations skills. What you focus on in life is what you attract. What I mean is the definition of insanity is doing the same thing over and over again and expecting a different result. Hill’s work stands as a monument to individual achievement and is the cornerstone of modern motivation. “And all men and women have that God given talent to create ideas. Henry Ford. John D. The stronger the desire the more likely the outcome. “All achievement. you already possess one half of it. Joseph Stalin. Utilising Carnegie’s access to the best and brightest of his generation. Theodore Roosevelt. apart from taking massive action. that if acted upon with a definite purpose and strong desire. therefore. poorest of people could afford to buy or read for free at a Public Library. marketing skills.| mindset | great minds In 1908 Napoleon Hill received a challenge while writing for a newspaper for a series of articles covering the lives of famous men. Hill’s payment was to be nothing – except for out of pocket expenses. In reality they are being technically ‘insane’.


21stCenturyInternetSummit. Making money online is a way of the future and with the new technology we can now make available to build your own websites within less time than you ever imagined. Try the world’s easiest website builder! • • • • • • Have your own website up and running is less than 20 minutes! Establish your business brand Add an unlimited number of pages to your website Maintain a unified appearance and consistent navigation structure Multi-level navigation. up to four navigation panels Monitor how many unique visitors and page views you get on a daily or monthly basis Check it out at www. • And much more • • • • • • • Go to www.21stCenturyWebsiteBuilder. your online source of revenue.com or call 1800 999 270 to secure your ticket 21 CENTURY ST INTERNET SUMMIT Brought to you by 21st Century Education or Start Today! We are proud to announce this new division. including: How anyone can establish a cashflow producing investment strategy using the Internet How to create second or even total income via the Internet The Ground-Rules of lucrative internet marketing How to identify the market that returns the best outcomes for you How to steer traffic.How to Make Money Online Internet & Business Mastery Seminar – Gold Coast Saturday 31st July – Sunday 1st August 2010 Discover the strategies these experts use in their respective field. to your site How to to maximise your profits using affiliate marketing How existing business owners can turn their businesses into an online gold mine while slashing overhead costs.com to get you FREE 30 day Trial . all thanks to the internet.

Start modelling from others who are successful online already. BRICKS BUSINESS A typical brick and mortar business requires usually some of the following: • plenty of venture capital to get started • inventory must be ordered • a building rented or leased to house the business and store inventory • business supplies and machines must be bought or leased • staff must be hired and managed • other overheads – the list goes on and on It really is no wonder that the very thought of branching out and becoming one’s own boss is such a frightening undertaking for many. test new markets and confirm your market’s viability. start educating yourself on internet marketing and consistently do the right things everyday towards achieving your online goals. letter drops and joint ventures www. you’ll receive a referral commission. It is. Affiliate product marketing is a great starting point for new online ventures and it is also an easy way to add extra revenue to your existing business. A percentage of people will like the program and when they decide to buy the product. A new business can be started up with almost no capital at all and every tool or resource you could ever need is no more than a few mouse clicks away. When you find one you’re interested in or have knowledge on you simply join that affiliate program. especially if you are starting with a shoestring budget: selling other people’s products as an affiliate. CLICKS BUSINESS Starting an online business involves: • a computer • • • • an internet connection little or no staff low overheads flexible working hours – it can be operated 24 hours a day. You are given a standard website or sales page and a unique affiliate identifying code. Twitter. The internet is still relatively young and the vast array of possibilities online is staggering.com. It’s no wonder more and more people are looking for alternate sources of income. but with a little research and digging. You just sit back and receive your commission cheques. quite literally. the idea of starting their own online business sounds great but when the would-be entrepreneur discovers all the hoops that they believe must be jumped through to make the dream a reality. My Space and others blogging word of mouth offline techniques such as flyer. many entrepreneurs both new and seasoned are turning to the internet to start their new venture or to supplement their offline ventures. This seems like a relatively valid fear to have in the early stages. GREAT EXPECTATIONS Many new internet entrepreneurs fear starting up a new internet business as they claim they have nothing to sell or no service to offer. You then use that affiliate ID and send people (drive traffic) to your affiliate link. Before you know it you will be generating a passive and recurring income. The only thing you need to do is send people to your link. In order to succeed online you need a deep desire. Affiliate programs are everywhere online. It can also help you build a list. if you do it right. Digg. 21st Century Academy has a number of high paying affiliate programs.online Log on. How to drive traffic There are various ways of getting potential customers to your affiliate link including: • • • • • • • writing articles creating videos about your subject email marketing social networks such as Facebook. some of the programs offer $1000 a referral. The company will send out the product and will take care of the rest.WealthEducatorMagazine. the cornerstone of all online business ventures. 7 days a week • a lack of geographic boundaries • an ever growing supply of customers • working from anywhere in the world • inexpensive advertising and operational costs.au wealth educator| 41 . HOW TO DO IT You can do a Google search for the products online that you are interested in. With this in mind. cash in Each day we are constantly reminded of the ever-changing economy. it becomes very apparent that there are many options available to the new internet entrepreneur. Check them out and get profiting now. Every internet based business owner should become intimately familiar with affiliate marketing. a clear plan and you need to take action. rising fuel prices and the general credit crisis being felt everywhere. that initial thought seems less attractive. Youtube. For example “scrapbook affiliate programs” or “stock trading affiliate programs”. Let’s do a comparison to starting a typical brick and mortar business and starting an online business. For many. While there are literally hundreds of ways to do business on the internet. here is just one of the most lucrative internet based business models you could start 21st Century Education speaker and internet entrepreneur Lou Harty gives the lowdown on starting an internet business on a shoestring with. The advantage of affiliate marketing is that you don’t need any knowledge on designing websites or sales pages because one is instantly provided when you join the affiliate program.

42 |wealth educator . but there’s more to it than knocking a website together or trading products on eBay. Wealth Educator chats to Melissa Norfolk. author of the new book Starting An Online Business For Dummies. online marketing and all those other confusing Internet issues. about driving traffic.| online | how to do BUSINESs online Starting an online business has never been more popular.

It should be immediately obvious what you’re offering. if you just know how. she has also written a new book. But customer service is also a big factor. Emails were bigger than the Internet. “You can tell those graphic designers who haven’t had a lot to do with the internet. “They’ll place the website in the middle of the screen so you can see the black bands either side. service or company. a magazine page or a brochure. If anyone knows the ins and outs of starting. The sheer volume of information on the internet now means that you’ll just get lost in the sea of websites!” Instead. Norfolk says that search engine rankings are crucial – which relates to the key words you use. or they’ll offer a free gift with the order.| online | We’ve all heard the stories: how people have doubled their incomes by running businesses from home. well. the design. “The internet is different to the Yellow Pages.” she explains.0 tools such as RSS and other feeds. but they need to concentrate on making it simple. the internet was just starting to take off. It’s not paper you’re designing for. establishing a visual identity. “The industry is only 15 years old.WealthEducatorMagazine. It should be easy to find the contact details. Which is what Norfolk wants. then you need to understand it – and once you’ve done that. “Look at Google.au 43 .” The five main elements. That way. Many people are also adding to their sites with blogs now. in order to show the rest of us how to do it. who runs her own company. But that’s no excuse for not trying. managing and making money from online ventures. he didn’t get any traffic. but computer screens. And she says most business people – even those in the younger generations who have been raised on a diet of it – are far too ignorant of the potential of it. but she’s also highly experienced in website design and internet marketing. If you want to capture a greater market for product. “So make your website count” And don’t design a website as you would design an ad. getting to know your marketplace. has not only helped dozen of individuals and companies achieve significant success (and significant profits) through welldesigned websites. you need to start using it properly. are: 1 2 3 4 5 It should be easy to navigate (“people can learn a lot from Google’s website”) It should be fast to load. You can’t just put a website up and expect it to drive traffic and make money for you. and yet people are still not taking full advantage of it.” she says. you’ll soon start going up in the search engine rankings. If you get lots of hits on your blog. and clear-cut when it comes to contact details. “Most people are still under-utilising the Internet. It’s actually very simple to make a great site. Norfolk’s specialty is search engines. to a lesser extent. either as an eBay enterprise or as a little online business they can manage afterhours. making your site content -rich. how you communicate with people. including identifying a need. As a result. Norfolk says the internet is so powerful now that you can just have an online business and no shopfront. and It should include a ‘call to action’. Starting An Online Business For Dummies (Wiley). “The internet is not difficult.” she explains. she says.” she explains.” she says. “Good operators will include notes – often hand written – with their client orders. but they need to concentrate on making it simple. or a discount for next time that client orders something else.” Norfolk cites the example of one client who designed a beautiful website but then failed to clearly show his contact details – or use any of the keywords associated with his business. choosing a web address. attractive.” And when it comes to driving traffic and making actual money from it. People worry too much about the bells and whistles of the site.” It is such a new industry that Norfolk accepts people are still finding their internet feet. It’s really important to describe what you or your business does is a clear way. But what most of us want to know is: how do they do it? Melissa Norfolk has a good idea of how they manage it. I remember one client of mine saying to me: “Go off and check out this internet thing and see if it’s any good. See if we need a website on it!” She laughs. it’s this web-savvy woman. attractive. with minimal animation. too. and understanding the latest Web 2. “It’s such a powerful business tool.” So what are the key things she advises those who want to strengthen their online presence? “You’ve only got eight seconds to capture someone’s attention online. finding a host. It’s a phenomenon that’s going to keep growing and become even bigger in decades to come. “You don’t have to be listed under ‘plumber’. even in this day and age. or some kind of ‘value-add’ service. which pick up another part of the market. advising other businesses on their Internet presence (and the deficiencies in their websites). “A lot of people have chosen to only have an online company. “If only we knew back then what we know now. and great money. meaning there should be something that incites someone to make contact.” As for the strength of being online. The entrepreneurial businesswoman. “People worry too much about the bells and whistles of the site. blogging and social networking. Norfolk suggests that people should concentrate their focus on things such as key words (“it’s all about key words now”) and.com. and thus didn’t get any business. easy to navigate and to read. choosing software.” she says. And that matters more than anything. You can be listed under all sorts of other categories and words. easy to navigate and to read wealth educator| www. “It’s how fast you respond to enquiries. they cut down their overheads. “I remember when I did my Bachelor of Computer Science back in 1995. and nor does it need to be. It’s all written in such a way that even a dummy could understand it.” Starting An Online Business For Dummies covers strategies and tools for starting your online business.” she says. the Norfolk Internet Group. such as ‘buy now’.

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NZ.au wealth educator| 45 . Government officials. Then the parents help the “kidults’ buy their first house close to the parents (as it’s too expensive for them on their own). infrastructure construction and export markets. friends/family. In our market you can cheaply. When I arrived back home the contrast was clear – and no it wasn’t just for our beautiful blue skies! Several things struck me – firstly. coupled with the rule changes relating to buying geared assets in SMSF. I believe some areas with the right combinations of economic factors will be in store for good solid growth opportunities. materials and labour “supply side input costs” simply add up to ever increasing ‘housing replacement’ costs. we rank right up the top with Canada. With the falls we’ve just seen in the share markets. Also. low maintenance apartment or villa near their grandchildren! And so the cycle continues… What all this means is that our financial institutions are very comfortable lending in this global and local economy on Australian property–especially after they lost a lot on margin lending recently! Our four banks are now rated in an elite club of less than a dozen as the safest banks in the world – they are very strongly profitable. you have no idea if you can renew the lease. in some cases. Thirdly – we have great “Certainty of Title” thanks to our laws and statutes. The material to build the future housing stock (which according to many independent sources. I believe that more individuals and more importantly. quickly and easily find out statistics of all sales from multiple sources. you can have almost absolute confidence that you own it – AND if someone wants to take it from you. especially due to their tax benefits. Land in the areas that we want to live (ie where there are schools. institutions will look at buying residential property for a long term ‘buy and hold’ strategy. it will be dealt with fairly by the courts and they will probably have to pay you market price. it has me looking at the economic fundamentals or the ‘building blocks’ on both the ‘supply’ and ‘demand’ side in relation to the property market. such as our Unemployment Rate. Looking to the future. jobs. As rents have been rising so strongly. and infrastructure) is also very tight. including the Housing Institute of Australia. this is another major factor in investors pushing strongly into the market. we do have small pockets of leasehold in Australia (eg Canberra) but it’s not the vast majority of the market and we’re pretty well assured that the Government will renew the leasehold (except in potentially fragile areas like National Parks). due in no small part to the widening margins they are putting into the RBA’s cash rate when they pass on to us the retail mortgage rate. You can use this information to independently determine a ‘genuine price range’ – so that you know you are buying well. in many places the properties that you buy are only “Leasehold” – sometimes for only 70 years! So you have an asset that is actually decaying in value where. accurate and over such a long period of time that several companies use statistics to analyse and predict what the markets are likely to do – and even which areas are likely to out perform the overall market. I believe this means that we usually ‘stay-put’ in a city and we upgrade houses to reflect our wealth and the need to accommodate the “kidults” (ie adult children living with the parents into their 20’s & 30’s) within that city. The data is so broad. commercial property construction. this will favour investors over owneroccupiers. In fact according to Jones Lang Le Salle’s Real Estate Transparency Index. These ever increasing land. www. which the Government officially revised down twice. Secondly – we have a relatively “transparent” property market. This means that when you buy something in your 21st Century speaker Steven Molnar sees bright economic conditions in residential property name. back from their ‘emergency level’ setting. and over a hundred years of case law for the courts. shows that we are in major undersupply) is rising rapidly in costs due to the competition for it from the mining. Then the ‘empty nesters’ often buy a smaller. If you add this together with news that the mining industry needs huge numbers of employees (such as in the NW Shelf’s Grogon project) and that the Master Builders Association has warned that too many Baby Boomers are retiring and not enough apprentices are entering the building professions – you start to understand that labour costs will be escalating dramatically in the ‘blue collar’ vocations. Lastly – our society is by far “middle class” with similar aspiration goals of “the great Australian dream” crowding towards relatively few cities that are too far apart for daily commuting. and if so. the government has just announced a whole lot of restrictions on skilled migration. What this highlights is how truly valuable owning freehold property actually is – especially in areas of high demand where there are shortages of land. And as interest rates slowly creep back upwards this year. I think that if you start looking at some of the other data. is still relatively low by developed economy standards.com. and Solicitors about life and property investment ‘Downunder’.real estate LIFE & PROPERTY investment DOWNUNDER I’ve just come back from touring Asia for the last month and speaking alongside a Knighted Cricketing great. Coupled with the high demand in the residential property market. then how much you will have to pay AGAIN! Now. USA and the UK.WealthEducatorMagazine.

hit & miss

Hammering away at a home in order to renovate it for profit may sound like a clever idea, but there are pitfalls to the do-it-up-for-a-fast-buck strategy. To make a respectable profit on a reno property, you need to do it properly, as Patrick Bright explains.
enovating an investment property is one of the easiest ways to make money in real estate, and, if done right, can have a big impact on your bottom line. But it’s vital that you don’t overcapitilise on your renovations, nor spend too much money on marginal improvements that are unlikely to make a difference to your property’s capital value. The key areas where you should look to make improvements are kitchens and bathrooms, extra rooms (putting in an attic or ensuite is always a good idea), the back yard or court yard (consider making these spaces over), creating additional storage space, or perhaps adding a carport, depending on the type of property you have. It’s these area that tend to have the biggest impact for the dollars invested. Once you have a good idea of what you would like to improve upon, then you need to assess how that will impact on the weekly rent you are receiving and also the property’s capital value – and you need to do this before you go ahead as there is no point renovating just for fun; it also needs to be profitable. Throughout the entire process you need to remember the reasons why you’re doing the renovations so that you can keep your costs in check. You don’t want to go overboard and overcapitalise, as many people do. By the same token you need to resist undertaking a cheap and cheerful makeover. From my experience, a substandard job will simply end up needing to be redone in a few years time, which will cost you far more in the long run. Here’s an example of how a renovation can make your investment property work for you. I recently managed renovation work that was

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| real estate |
done on improving a four-bedroom, twobathroom house. The total amount spent was $122,000. For that outlay a new kitchen was installed, two bathrooms were renovated, the property was completely repainted (both inside and out), floorboards were installed, the garden tidied, a new deck added and new light fittings put in throughout. When the renovation was complete the property’s rental rate increased from $800 per week to $1,150 per week. In addition, the capital value of the house increased by more than $300,000. The renovation result allowed the owners to secure refinancing, by using the additional equity available to them, and subsequently raised a deposit to purchase another investment property without putting their hand in their own pocket for the additional funds. Looking at the numbers a little more closely you’ll see a second benefit in the form of increased cash flow, which was created through the renovation process. For example, if the clients borrowed the $122,000 to cover the cost of the renovation at a 9 per cent interestonly payment rate, then the repayments add up to $10,980 per annum. After the renovation, however, the property attracts an additional $350 per week in rent, which adds up to an extra $18,200 a year. This puts the clients a good $7,000 in front – which is in addition to the increase in the property’s capital value. So make sure you look at the cash flow benefits as well when undertaking a property renovation. There are always opportunities to make money in property regardless of what the market is doing. A successful property renovation is just one example of what can be done to increase equity and increase cash flow, depending on your desired outcome. Patrick Bright is an author and buyer’s agent. His third book in the ‘Insider’s Guide’ series, ‘The Insider’s Guide to Saving Thousands at Auction’, is now available in bookstores.

Renovating an investment property is one of the easiest ways to make money in real estate and if done right can have a big impact on your bottom line

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TO 2050
21st Century Academy chief executive Jamie McIntyre sees nothing but blue sky for Australian property investors

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com. I believe Australia should prepare for a massive immigration boom as well and not just from developing nations. This is something I’ve been warning about for many years. the important thing is to focus on how we can prosper from this economic boom. stating that Australian property will boom to 2050 as well. I recently did a radio interview on an article I wrote.WealthEducatorMagazine. We have often in the past been referred to as a lucky country. A year ago I was predicting we were nearing a global depression. we’ve been very lucky here in Australia. which is what the Reserve Bank is afraid of and thus the major reason they are putting up interest rates. As a property investor you would be wanting property to grow in a steady fashion to avoid a new property bubble occurring. I expect that the Eastern Economies will take over as the new leaders of economic success led by China and India while Western Economies head into decline. As far as I’m concerned. This has been demonstrated as we’ve watched the Australian dollar go from 98 cents US to 63 cents within a matter of months. The US is becoming increasingly less significant economically to us and to the world for that matter. in particular the US and the UK. but now that phrase will have a much more pertinent meaning as we truly are luckier than ever imagined. certainly larger than anything we’ve seen before.| real estate | M any people ask me whether Australia is going to boom to 2050. This wasn’t necessary as the fundamentals in Australia were solid. Even the recession we suffered was not based on fundamentals. the US was in all sorts of trouble and clearly headed for recession. However. It’s incredible. Now that we’ve escaped the Global Credit Crisis it’s becoming apparent that we need to lose the mentality that if the US is in trouble that we are somehow as well. But that’s a whole other article and no longer our concern. Plus the boom will create a booming domestic economy bringing prosperity to many areas of the economy. It may still cause some investors to get nervous. This isn’t to say property will all be smooth sailing. when we run out of commodities then we have sufficient investments to live off as a country.au . Australia is headed for an economic boom over the next 40 years to 2050. However. The Global Credit Crisis really should have been called the “Imploding of the US”. however this will disappear as they become more confident that we are largely divorced from the US economy and market. The Federal Reserve Banking System they have is controlled by the private banks – the same banks that cause the problem and then offer solutions to benefit themselves and rob the American tax payer. Australia has the rare opportunity for a sparsely populated country to become not only the envy of the world. ensuring investors can also reap the benefits. but now that phrase will have a much more pertinent meaning as we truly are luckier than ever imagined wealth educator| 49 www. instead actually booming largely due to our trading relationship with China. It’s an interesting situation and one I’d suggest is highly probable. particularly the US. Let’s hope this time though our Governments will learn to cap their spending and put large surpluses aside so we can build a sovereign wealth fund to equal the likes of Norway and Dubai. it no longer has to affect our stock market. but a significant economic power of the 21st Century as we ride the massive wave of prosperity that China and India will create. Overall there has never been a better time to create wealth in Australia and I’m personally expanding staff levels and am focused on growth again. Australia is uniquely placed as one of the few developed Western Economies that will avoid a decline. Expect large immigration requests from declining Western Nations. That way. the recession is over. Despite many so-called experts claiming that property would crash in Australia by 40% during the credit crisis. but largely from the negative sentiment of the US crisis which became a Global Credit Crisis. The US decline and crash no longer has to affect us. We have often in the past been referred to as a lucky country. I was adamant it wouldn’t and now those that shared my view have been proven right. Our only concern is our large Current Account Deficit which can create volatility in our exchange rate. If and when their stock market crashes in the future. Also expect the stock market and property markets to boom. We are becoming more insulated from the situation in the US – it no longer affects us the way it used to. There will be ample job opportunities created along with business opportunities with China and Asia continuing to expand.

it is not so. such as plasma screen televisions. It is clear that wealthy individuals have learned two important distinctions about debt. rezoning. and depreciation PROPERTY 50 |wealth educator . rental yields. It’s an interesting perspective. cars. the wealthier you become. I recall one high net worth investor saying to me “If you owe the bank three million. the more good debt you control. Permit me to qualify this statement: during my various careers in banking and finance. that not all debt is bad. strata titling units. As illogical as it sounds. boats and holidays. can learn from this by spending 80% of their time on expanding their level of awareness and learning deal structuring techniques such as vendor finance. ‘Bad debt’ consists of borrowings that depreciate in value. Firstly. while simultaneously maximizing their usage of other people’s money (OPM) via Loan to Value Ratios (LVR) and only spending 20% of their time on duediligence on the actual property and suburb itself. for example. for example technical analysis of historical capital growth. it’s your problem. They understand that ‘good debt’ consists of borrowings to acquire assets that appreciate in value. Sophisticated property investors should know that this is virtually irrelevant in the grand scheme of things. Sophisticated investors always use ‘other people’s money’ and maximise the loan to value ratio on all borrowings.| real estate | INVESTING: it’s not about property There are many myths in property investing ­ – but the biggest one is that the wealth is achieved through the best properties. but if you owe them 30 million. Secondly. This is because their aim is to obtain the highest return on capital. The remaining 20% of their focus should be spent on the actual asset due-diligence and specific property research. there is good and bad debt. in terms of capital growth and rental yield. 21st Century Property Direct general manager Konrad Bobilak explains The biggest myth in property investing is that wealth is achieved by acquiring the best performing properties. or one entering the market for the first time. in prime locations. it’s their problem”. I have observed that 80% of their ‘focus’ is always on ‘creative deal structuring’ and ‘debt accumulation’. and multiple income stream properties. shares and businesses. working with high net-worth individuals and successful property investors. A novice investor. Property investing is not about property. as opposed to the return on asset. The ultimate goal of a property investor is to control the maximum good debt that one can safely manage. such as property.

500.000 in funds available to utilise for the transaction. theorises that 80% of effects are created by 20% of causes Property A Purchase Price Annual Growth Value at end of Year 1 Profit $500. Investor B can now secure three properties at $500. Juran.000 7% $535. two of the top three – Carlos Slim Helu and Bill Gates – are worth more than the next eight persons down on the list. two investors are looking at two investment properties.000 Property B $500.000 $105. Secondly.000. and a rental yield of 4%. So which one would you choose? Most would choose Property A given that it is a historical yield of 3% over Property B. The Pareto Principle. especially becoming educated and informed on deal structuring techniques. Investor B can secure three properties and use the $100.000 and their capital growth has been verified by RP Data over a 10 year period. with a 4% rental yield. with the deposit created ‘in the deal’. The aim of each is to maximise the amount of profit made.000 $35.000. After the conclusion of year 1. this is about the extent of the research novice investors undertake in their selection process.000 $50. the more good debt you control. This division of time and attention is summarised in the Pareto Principle. that the top 20% make the equivalent of the bottom 80%.000. suggested the principle and named it after an Italian economist. 80% of sales are generated by 20% of sales staff. theorises that 80% of effects are created by 20% of causes. Investor B enters into a finance contract with the vendor. 605. Provided that the property is in a good suburb.000 and Property B $535. The Pareto Principle.000 7% $1. Consumers make decisions to buy particular goods and services based on only 20% of an item’s features or perceived benefits. infrastructure.WealthEducatorMagazine. Property A Purchase Price Annual Growth Value at end of Year 1 Profit $500. A 20th Century management consultant.com.000 $50. This theory has wide ranging applications in all aspects of life. Firstly. otherwise known as the 80/20 rule. So Investor A is better off by $15. at an interest rate of approximately 2% higher than the standard variable rate. thus controlling assets worth $1. now presume that Investor B was educated and learned how to structure a property acquisition utilising a strategy like ‘vendor finance’. Joseph M.000 It is clear that wealthy individuals have learned two important distinctions about debt.5 million. It even holds true for income distributions within organisations. In this case. Even if you take the world’s top ten wealthiest individuals. In business.000 Property B $1. Both properties are $500. combined. that not all debt is bad. that is.000 10% $550.000 www.000 just to cover stamp duties and closing costs for the three properties. is likely to have a tremendous impact on one’s finances in the long run. Both have comparable incomes and serviceability and each has $100. especially for the novice investor. However. He subsequently carried out surveys on a variety of other countries and found that a similar distribution applied. Property B has an annual capital growth of 7%. wherein the vendor leaves a 20% deposit in the property. the wealthier you become However. Property A has an average annual capital growth of 10%. Vilfredo Pareto. The following example illustrates how this is possible. Property A is worth $550. there is good and bad debt. otherwise known as the 80/20 rule.au wealth educator| 51 . who observed in 1906 that 80% of the land in Italy was owned by 20% of the population. Understanding the 80/20 rule and maximising time spent efficiently on all undertakings.000 10% $550.| real estate | and fundamental analysis of indicators such as population growth. transition zones and spill-over suburbs.

he is clearly better off as a result of his specialised knowledge and awareness. novice investors tend to focus on Net Return on Asset. Specialised knowledge can be gained from any number of avenues including books/literature. in addition to lacking specialised structuring knowledge. 52 |wealth educator . their success is often impeded by their limited ‘investment psychology’ – the fearridden approach to acquiring debt. take advantage of and capitalise on an opportunity. The table above illustrates in simple terms that an increase in leverage in turn creates an increase in return of capital invested. I would say that this only equates to 20% of the success equation.a. home-studies DVDs and seminars which can all assist the average individual to become more informed and more importantly more confident in savvy investing. Certainly. or buying the worst house in the best street and so on. Property D is the preferred option due to the higher leverage available to the investor – in this case 70% is higher than 25%. LVR Deposit Required Return on Asset Return on Capital $500. For many novice investors. ‘debt’ has such a negative connotation associated with poverty and a sense of failure.000 25% p. Even though the return on asset is higher in Property C. which is entrenched in our culture and inhibits so many Australians from expanding their horizons. A person can develop their psychology by expanding their level of awareness over an extended period of time and applying it.000 70% p. conducting due-diligence and aiming at securing the highest growth assets is important. Property d $500. Property C in this example is a serviced holiday apartment. For many. Many investors have driven past investment opportunities that they were completely oblivious to as they lacked the required knowledge that would allow them to take action. By reversing this debilitating psychology and learning to distinguish between good and bad debt – and being comfortable with good debt – a person’s financial success can be propelled to unimagined heights. Many people claim that ‘you have to be at the right place at the right time’ in order to catch a deal and become wealthy. This is why when it comes to property investing gaining specialised knowledge and learning advanced deal structuring techniques is more important than trying to find the best performing properties. with a lending restriction of 60% LVR.000 7% 90% $500.000 10% 60% $200. while sophisticated investors focus on Return on Capital. whereas Property D is a standard residential house in an average area.a. This knowledge allowed him to control more assets.000 $35. Property c Purchase Price Capital Growth p. when in actual fact for seasoned investors it is the exact opposite. When analysing investment opportunities. This is illustrated in the following example. but while spending 20% of your time on this kind of research is wise.| real estate | When it comes to property investing gaining specialised knowledge and learning advanced deal structuring techniques is more important than trying to find the best performing properties Whether Investor B utilised Vendor Finance or any of a dozen other strategies to create a similar outcome.a. spill over suburbs. The other 80% is to have the right ‘level of awareness’ in order to recognize. spending 80% of your time securing the knowledge to get the best return on your capital is more prudent. resulting in a better bottom line.000 $50.

which is roughly representative of the property market and interest rates throughout Australia over the past decade. get out there and get the knowledge whichever way you feel most comfortable obtaining it – your wallet will thank you and your confidence will soar.000 $7. the return on capital increases proportionally to the increase in LVR or debt levels.000. For both the seasoned and novice investor.000 80% $500.000 Infinite Return In this example there was only one changing variable – the ever increasing Loan to Value Ratio – all other attributes were held constant. overturning negative psychological associations with debt is the most important limitation to overcome in order to become truly wealthy. Property 1 Capital Investment Borrowings LVR Property Price Gross Return Interest Expense Net Return Return on Capital $100.000 $22.000 $70.com. Hence the higher your debts the higher your wealth.000.000 $20.000 $30.000 $13.000 $10.000 $400.000 100% $1.| real estate | Keep in mind that higher good debt accumulation equals higher returns on your capital and hence creates wealth. As can be seen from the last row. it is critical that one accepts that acquisition of knowledge is more important in the growth of financial health and success than all else.000 22% Property 4 $0 $1. For this example. Knowing that while bad debt exists there is also good debt and leveraging it leads to greater accumulation of wealth and assets.au .000 available capital to invest. Finally.WealthEducatorMagazine.000 10% Property 2 $100.000 13% Property 3 $100. If you’re a newbie or not.000 0 $100. The table below depicts an investor with $100. An advanced finance strategy can override virtually any property selection strategy.000 50% $200.000 $28.000 $100. the capital growth of the property is at 10% and the cost of borrowing funds is at 7%. Knowing that while bad debt exists there is also good debt and levaraging it leads to greater accumulation of wealth and assets wealth educator| 53 www.000 $50.000 0 0 $100.000 $100.

com. Investors eager to learn about these sophisticated tools for accelerating financial return.com. a Consistent conservative returns every day of 3% – 9% and on top of this. So unbelievable.21stCenturySharerenting.$5. You can start with comparatively little money. by following a few simple-to-understand.21 CENTURY ST EDUC ATION FOR LIFE SHARELORD Brought to you by 21st Century Education ACADEMY Discover The Unbelievable Cash Flow Generating System Investing No More Than 30 Minutes Per Month! Even if You’re A Complete Beginner With the Sharelord education there is no boss. it’s true. the Sharelord strategy has the ability to create the lifestyle you desire. super-charged investment strategies. For further enquiries please call 1800 999 270 or e-mail enquiries@21stca.au to request your FREE Intro DVD or to book into a complimentary workshop..000 per month for less than 5 minutes work. no employees. a Discover how to potentially earn a sensational income anywhere. without ever possibly having to own shares. a The incredibly simple defensive strategies how to salvage & protect your stock portfolio from loss due to a market downturn or stock market crash. The latest cash flow techniques finally revealed. a The amazing secret how to invest in yourself and potentially generate an extra $4. a HOW to get paid in cash for selling stock market insurance to stock market investors who fear the market is going to fall.au .. but Sharelord will give you more to think about: No inventory. With specialised education. anytime … for the rest of your life . insist on taking assertive command of their financial future NOW. Visit www.000 . that should be enough. you can INSURE a proportion of your Shares and in some cases all of your Shares to have that Sleep At Night Factor.

WealthEducatorMagazine. A 24-hour market: From early Monday morning Sydney time to Saturday morning Sydney time. whilst the second one (in this case the USD) is called the quote currency. You would sell the pair if you think the Aussie dollar (base currency) will go down relative to the US Dollar (quote currency). you determine your own lot size based on the level of margin you specify and your account size. Currencies are traded through a broker or dealer. We are therefore long this particular pair as we have bought the base currency. the 24 hour nature of the markets and the sheer size of the market – in excess of US $4 trillion changes hands daily.8950. For example. Unlike other financial markets like the Australian Stock Exchange. only the “big guys” could participate in FX trading. these simulated accounts allow you to practice trading without risking your own money until you have developed the confidence to execute live trades. “Mini” and “Micro” trading accounts: These allow traders with only small amounts of capital to still participate in the market How do you make money? The object of Forex trading is to buy one currency and sell another in anticipation that the bought currency will increase in value compared to the sold currency. FX BENEFITS Leverage: A small margin deposit can control a much larger total contract value.FX 101 As share markets continue to be buffeted by a seemingly never-ending stream of poor economic data and other negative events. portfolio 21st Century chief forex trader and strategist Kel Butcher examines the trading opportunities available in forex – and how to do it yourself The base currency is always the “basis” for the buy or the sell. governments and other large financial institutions and not by smaller retail traders and speculators. As a result currencies are always quoted in pairs.000) of the AUD/ USD pair at 1% margin which equates to $10 per pip. the free floating of currencies. and no brokerage fees (brokers are compensated through the bid/ask spread) Low cost to trade: The bid/ask spread is usually less than 0. Your return on margin equates to around a 45% return–$500 profit on a margin requirement of around $1100.00 With a well developed and researched trading plan that includes strict risk and money management parameters. As a result the FX market was used only by banks. Like all trading. You decide to sell 1 lot (100. A “lot” is the minimum amount of the currency you have to buy. and are traded in pairs.000 worth of Aussie dollars. The entire market is run electronically within a network of banks and brokers. No commissions: There are no exchange fees or clearing fees (because there is no central exchange). the Forex market trades continuously. trading FX can be an exciting and profitable endeavour. the FX market is now dominated by short term traders and speculators. Forex trading is the simultaneous buying of one currency and the selling of another. The initial requirement was a trading account size of in excess of US $10 million.com. The advantages of FX trading include the ease of trading either long or short. High liquidity: The huge size of the FX market ensures liquidity and prevents any one market participant from being able to control the price of a currency for any length of time. ‘off exchange’ or ‘Interbank’ market.000 for standard accounts. Approximately $1100. more and more traders are becoming interested in the benefits of trading foreign exchange (also known as Forex or FX). when trading Forex. No fixed lot size: Unlike the futures markets where contract sizes are determined by the exchange. The use of leverage when trading in the FX market means that small amounts of money are able to control much larger amounts than would be otherwise possible. A pip is the minimum amount the pair can move and is the last number or decimal place in the quoted price. a 50 pip move in your favour. it should be conducted in a business like manner once the appropriate education has been undertaken. In our example of AUD/ USD we would be buying the base currency (Aussie dollars) and simultaneously selling the quote currency (US dollars).8950 and make a profit of $500.00 margin requirement would be set aside in your account when the trade is opened and you now control $US100. As a result.000 for Mini accounts and 100.1% No middlemen: You are trading directly into the market. Until the late 1990’s.00 (50 pips at $10 per pip). for example the Australian dollar and the US dollar (AUD/USD) or the British pound and the Japanese Yen (GBP/JPY). Free “Demo” Accounts: Offered by most FX brokers.9000 against the US dollar.au wealth educator| 55 . www. continuously over a 24-hour period. The Forex market allows you to actively engage in online trading using broker platforms to buy and sell currencies for profits. The advent of the internet. You would buy the pair if you believe the Aussie dollar (base currency) will go up relative to the US Dollar (quote currency). The Forex market is considered an Over-the-Counter. and developments in technology have allowed Forex trading firms and brokers to offer trading accounts to ‘retail’ traders like you and I. This provides an enormous amount of liquidity and allows trades to be entered and exited quickly and easily. You buy back the AUD/USD pair at 0. the Forex spot market has neither a physical location nor a central exchange. These lot sizes are generally 10. no government fees (because there is no government intervention). You sell the Aussie dollar at 0. Your analysis proves correct and the value of the Aussie dollar declines to 0. A case study You believe that the Aussie dollar will go down against the value of the US dollar. The first quoted currency in the pair (in this case the AUD) is called the base currency. Margin trading in the foreign exchange market is undertaken in “lots”. the Australian dollar against the US dollar or AUD/USD.

Call 1800 444 710 or e-mail finance@21stcenturyfinance. visit www. you’ll have an expert at hand to help you make this important decision. we can recommend the lenders and products best suited to your unique financial situation and investment plans. With our in–house Finance Team. As investment finance specialists. request your Free 21st century Finance review to determine what equity can be unlocked and your borrowing capacity! This review will indicatively identify the amount of funds that can be borrowed and best product options available.au One of our Senior Finance Specialists will be in contact to tailor a plan to suit your investment requirements. Product and ServiceS include: – Residential Loans – Commercial Loans – Mortgage Reduction – Cashfow Loans Take action now.21stCenturyFinance.au Simply complete the form to submit your information.com.com.ExpErts who undErstand propErty invEstors Our specialists will help you put an investment plan into action. 21 CENTURY ST FINANCE Another service from 21st Century Education .

they will simply buy shares and maintain them devoid of any rental income. if you received 6% rental for the month per share. Allow me to explain. Now if we calculated the real cost of the share incorporating the rental premium. Assuming we purchase the shares at $8. we give the tenant – who is the speculator – the right but not the obligation to purchase our shares.00 per share and the return for the month skyrockets to 21%. this would equate to a 7% rental premium. In the event of being exercised.80. an investor will receive an income rental for renting out their share portfolio. we receive $10.com.00 during the month. market positions with a credit as opposed to a debit position scenario – they generate an income premium on their transactions up front as opposed to paying to speculate with the hope of making money like most other losing traders. The fact is. Just as a landlord rents out an investment property to a tenant. If the shares are not exercised. we give the tenant the right but not the obligation to purchase our shares The mechanics of this strategy is simply renting out your shares.65 in premium.20 in price. This means the real purchase cost of acquiring the share was $18. meaning we have an automatic downside buffer protecting us if the share was to drop by $1. whilst receiving $0.00 each. This strategy is ideal for the US stock market since it constitutes about 80% of the world’s financial markets. Assuming you bought shares valued at $20. This is the equivalent to a property investor having ten or twenty investment properties www. If our shares have been exercised at the $10. these investors create the market as opposed to really trading it.80. If the shares are exercised the investor acquire new stock to rent out. But as it stands now for millions of stockholders worldwide. For that right. we would now have the share wholesale rate of $18. we simply surrender our shares over. keeping in mind the stock market is also an incredible engine and fuel source for real estate acquisitions. A unique strategy for global stock market investors is the concept of becoming a ‘Sharelord’. the same strategy has existed within the stock market since 1973. One of the great features of this strategy is its ability to offer an investor the avenue to purchase stocks wholesale – not retail – and the privilege of having downside protection by the percentage of rental premium received.00 guaranteed selling price. they simply re-rent out the same shares. With this Sharelord strategy. The options market is used for this ‘renting out shares concept’. This strategy is ideal for investors using an online trading platform or the use of a full service broker – ensure the broker you use is experienced with the derivative investment of options. that would equate to $1.20 in rental premium per share. Speculators who need to purchase and maintaining them vacant. As the Sharelord. investors open up the majority of their stock option contracts to trade acquire them from someone who is writing them. Compare this to the average investor purchasing shares retail with no downside protection at all. Let’s use an example. the option buyer who is the tenant of the shares is allocated a selling price for them.| portfolio | How to rent your shares 21st Century Sharelord key speaker George Fokas explains his strategy for generating additional cash flow from shares A key strategy for success in the stock market is generating massive cash flow. In this case.WealthEducatorMagazine. This means we get to set the guaranteed selling price of our shares if the tenant wishes to exercise their right to buy the shares. not realising they could rent out these properties all along.au wealth educator| 57 . This exceptional scenario offers the investor a second opportunity in generating additional cashflow. Sharelords are the writers of these contracts and rent them out to the speculators who trade them.80 and rent them out at $10.

but not themselves. what are the options if a family is not protected with life insurance and the cash flow stops as a result of death. you can get more golden eggs! When people think of their most important asset it is usually the family home. 58 The view of life insurance in the Australian market seems to be one of very short-sighted proportions.045. plain and simple. no fun” rings true for many Australians.333. according to 21st Century Insurance advisor Sacha Loutkovsky Q: If you owned the goose that laid the golden egg. a person will insure their car because if their car is involved in an accident. is left unable to work for the rest of their life and did not have a form of life insurance to provide cash flow for them? For the financial year ending 30/06/2008 the Australian life insurance industry paid out a whopping $3. What people fail to realise though is that these assets could not exist at all without the income to support them. especially in the current economic environment. it needs to be fixed or replaced so that person can continue to function in their everyday life. The colloquial adage “no mun. child care and school fees. of course! As long as you have the goose. serious illness or injury? . to name a few are all dependent on that cash flow. which would you insure – the goose or the golden egg? A: The goose. bills. Without income the vast majority of Australian families would not be able to fund the mortgage repayments on their home or their investment properties. critical illness and income protection – all of which are covers offered under the blanket term ‘life insurance’.| portfolio | Know your assets Most people have the wrong idea about their most important assets.112 in claims to Australian families for death. Furthermore many families would not even be able to support themselves without income – personal debt. TPD. For example. maybe even a few years however it is not sustainable unless that relative happens to be a millionaire. likes you and is willing to help.Support from Relatives: this plan could work for a few months. |wealth educator . However what if a person suffers a massive stroke. Consumers will willingly protect their home and their car. investment property or even the car. From the figures above however it is still obvious that Australian families are not adequately protected. A person’s greatest asset is their ability to earn an income. So.

simply email: info@napoleonhillassociates. It is a cost of doing business – a small cost relative to the value of a person’s earning ability – and must be embraced as a cornerstone of a sound investment and asset protection strategy.au to register for one of these 2 day events.com.WealthEducatorMagazine. At the end of the day what would you rather lose – your cash flow or all your financial burdens? Would you like to own your own business and be associated with a world known brand such as Think and Grow Rich? A business of empowering people to be the best they can and utilise their mind to attract riches into their lives. that will create some cash! But why? This will put the family back years in their financial goals and at the end of the day will create more stress and less cash than a life insurance payout.00 3% of Australians have critical illness (trauma) cover – average monthly premium $32. .52 16% of Australians have death cover – average monthly premium $25.com. Visit www. www. To find out more. Napoleon Hill Australia Napoleon Hill Australia recently launched and there is a limited opportunity to apply to be considered to become a Think and Grow Rich Australia Licensee.81 6% of Australians have income protection cover – average monthly premium $130. How is a family going to live on that benefit and also have enough to pay back mortgages or medical bills? Life insurance offers peace of mind and is the only simple and solid solution to these very real issues.77 .ThinkandGrowRichforthe21stCentury.au wealth educator| 59 .au or call 1800 701 519 Or attend any of our free upcoming Think and Grow Rich for the 21st Century Seminars in each major capital city.Sell the Assets: Fire sale! Get rid of the investment property.Government Assistance: fortnightly benefits paid are barely enough to support a family as it is.com.| portfolio | The Figures 71% of Australians have motor vehicle insurance – average monthly premium $89. That is even if the property can be sold – it may sit on the market for months when the family needs that money now.02 5% of Australians have total & permanent disability (TPD) cover – average monthly premium $25.42 60% of Australians have house insurance – average monthly premium $57.

particularly during these more volatile times in the market. hold your hand and explain the processes as you go along – making you feel far more comfortable with stepping up to the plate. Brokers that are more experienced in working with newbies will. getting started becomes a little less intimidating and may well help your confidence grow. But what about when it comes to picking your stock broker (one of the key tools to help you in the market)? What are some of the key points to look for? If you are going to be more active in your investments. if you are trading online how easy is it to use the trading platform and how reliable is it? Another element that is often overlooked is the time aspect for placing your own trades as well as the risks. making it seem very attractive to the new participant. it is important to consider more than just cost when making this decision. as 21st Century Broking presenter Andrew Baxter explains For many people. trading for yourself can lead to nervousness – occasionally causing errors – and requires you to be able to spend time in front of the screen during the trading hours of your chosen market. WORKING TOGETHER Working in partnership with your broker means it is important to look at the experience level of your advisor. The second aspect to experience is your broker’s track record in working with newer or less experienced clients. ranging from online to full service. your relationship with your broker will grow. However it is still important to make sure that the broker you work with has a competitive fee structure that suits your needs. especially during their early trading 60 days. experience should be divided into two camps. if you like. getting started in the stock market can seem like an overwhelming experience with so much information and so many decisions to make. Specifically. For example. However. Time in the market is an obvious one – after all. Traditionally. establishing a fee structure that works for you is pretty important. Often. This is a key factor for many newbies as the transition from what you have learned to going live is a pivotal step in your personal development. as |wealth educator . online broking is cheaper. There are a variety of alternatives that are available. By working in partnership with your broker. enthusiasm is no substitute for wisdom and being able to leverage off of your broker’s experience is a key factor in accelerating your learning and confidence. Work and family pressures can sometimes make this difficult and as a result many clients instead choose to avoid these problems by utilising a full service broker. Over time.| portfolio | How to choose a stockbroker Choosing a good stockbroker is just as important as choosing which stocks to invest in.

some of the asset classes and strategies you may look at will likely include stocks and options – both locally and globally – foreign exchange (FX) and futures and commodities. For example.au Call 1800 999 270 or e-mail enquiries@21stca. including E-Minis and Contracts For Difference (CFD’s).com. It is by no means and exhaustive list. but will certainly help you get started in a confident and comfortable manner. with your investment and trading activity. Working with your broker on this is key and should ensure that you are comfortable at all times. 21st Century Insurance Solutions has been established to ensure anyone can actively get insurance to protect themselves adequately. would like to offer you a FREE Insurance Review to show you how Igor can protect and insure you and your assets. The strategies and aggressiveness that the broker is willing to employ – in particular risk management – is an important element of this. SHARING Finally. one of Australia’s most successful Insurance Brokers. With advances in communications the use of E-Mail and SMS has replaced phone and face-to-face time.com. Harris Park NSW 2150. 62 Harris Street.| portfolio | your broker should have access to a variety of markets and instruments will the kinds of trading activities you will undertake. COMMON STRATEGY One of the key areas for you to explore as you build your relationship is the ability to access strategies and to ensure that your broker is on the same page as you when it comes to the outcome you are looking for. These are some of the key questions and qualifications that you may wish to consider when looking for a broker to assist you in your trading and investing. making sure both you and your brokerage partner are working in unison to help you deliver returns from the market.WealthEducatorMagazine.21stCenturyInsurance. However a combination of all communication methods – both traditional and technology-based – is often helpful for clients. INSURANCE SOLUTIONS “How we can GUARANTEE to get anyone the most appropriate and BEST VALUE insurance available” 21st Century Academy. As a result. For example you may be investing through a selfmanaged super fund versus a more aggressive strategy in your personal name and as such the kinds of trades and strategies are likely to be different. and your knowledge. Being able to trade all these from the same brokerage means that as you explore further areas in the trading and investing environment you will not need to source a new broker and build a new relationship – you can simply expand the depth of relationship you have with your present broker. it is extremely important that your broker has access to a variety of markets and instruments that will grow with you. Authorised Representative: Loutkovsky Insurance Pty Ltd. Representative Number: 268870 21 CENTURY ST INSURANCE Another service from 21st Century Education www. 21st Century Insurance is provided by Igor Loutkovsky.com. making sure you receive communication with your broker in a way that suits you is also a major factor in ensuring a harmonious relationship. The Insurance Review will cover: a Your strategic needs a How to use the correct structures in which to hold your cover a How to tender your needs to obtain the best premium and benefits 21ST CENTURY EDUCATION To secure your free review visit www.au Currently not available for New Zealand clients.au wealth educator| 61 . Having the ability to receive communication in a way that suits you and your lifestyle is key and your broker should be able to assist you in the way that best suits you.

In the United Kingdom. which some people. investors have also used bullions as an effective hedge against the share and property market chaos. kings and other heads of state worked out that if they introduced a paper currency. investors have recognised that gold and silver bullion are a valuable asset to be held within their investment portfolio.” (When paper currency is not backed by gold and silver bullion but the good will of the nation.BULLION WATCH Gold has become as hot as. Today. Additionally. while gold has traditionally been hoarded as a resource. like Robert Kiyosaki (best selling author of Rich Dad Poor Dad ) claim is an unstainable level. in times like this gold and silver bullion are definitely worth watching and considering as an alternative asset class for your investment portfolio. Robert Jamieson explains why gold is the new ‘gilt-y’ pleasure. In fact. They first started to become popular during Roman times. merchant traders and citizens wouldn’t need to carry around heavy quantities of gold or silver when they bought goods. | portfolio | 62 |wealth educator . Gold and silver bullion over the past 5 years have increased significantly in value with gold appreciating 210 per cent and silver close to 130 per cent. which is why experts such as Harry Dent (a leading independent economist in the US Market who forecast this global melt-down would occur back in 2002) has been quoted stating that he expects gold to top $1. These currencies acted like a promissory note in that the note could be traded in at any point in time for a fixed quota of gold or silver.com.”) It is interesting that in our early days of history. Gold and silver bullion have been used as a currency of trade right throughout history. but the problem was their weight. which is where the term “the pound” originated. gold and silver bullion are often a preferred exposure over cash in a rising or high inflationary market. gold again. This backing of local paper currency by gold and silver bullion came to be known as the “gold or silver standard. Furthermore.500 US dollars per ounce over the next couple of years. history has shown that the worse a global market environment becomes. with no significant new finds being discovered. now prefer the tangible benefits of this asset class. the official ratio for silver to gold was 15:1 which basically meant that to buy 1 ounce of gold you would need approximately 15 ounces of silver. silver has been more of a resource that’s been consumed in commodity products on a daily basis (such as mobile phones and medicinal products). But putting aside the benefits of bullion being tangible and an effective hedge. as these precious metals are an effective hedge against high inflation periods. investors who might have concerns with their shares dissipating overnight and who once may have turned to property. They understand that gold and silver have risen in value whilst other asset classes around the globe have plummeted. Furthermore. for example. As a result we are seeing this limited stockpile decline at a rapid pace – which is again why the likes of Robert Kiyosaki believe the outlook for silver is very positive. in the current market. Presently we are seeing the ratio of silver to gold sit at a staggering 82:1. the better gold and silver perform.au. In recent times. which was rather heavy. the performance of gold as a worthwhile investment option speaks for itself. So. because the real value of cash may decrease rapidly as it is eroded by inflation. Robert Jamieson is general manager of GoldSilverBullion. there are only 300 million ounces (approximately) if above-ground silver available in the market place. Traditionally. Eventually. well. particularly with the industrialisation of the emerging markets. a “one pound” note could be exchanged for “one pound” of silver. it is termed a “flat currency. as investors seek a safe spot to put their money.

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GET Your frEE EMINIS dvd To get your FREE Eminis DVD or e-Book and secure your ticket to an Exclusive Workshop visit www. Our training program is comprehensive and is suitable for a complete beginner or experienced trader who is seeking a tried and tested trading system.21stcenturyeminis.com.au or call our booking hotline 1800 100 801 If you are unable to attend one of the Complimentary Workshops Join a live 21st Century Eminis WEBINAR. to make consistent profits in the markets. • The TRAINING • The SUPPORT • And the SYSTEM to make money – whatever the market is doing Our team will assist you to develop your own plan to meet your own specific abilities.21stCenturyEminis. visit www...WAY.com.21stcenturyeminis.au or call 1800 999 270 CALL 1800 999 270 21 CENTURY ST EMINIS Brought to you by 21st Century Education .php to register.. objectives and aspirations. JoIN uS AT oNE of our WorkSHoPS ANd WE’LL SHoW You HoW 21st Century Eminis workshops are held regularly throughout all major capital cities in Australia and New Zealand. visit www. To find out when we are coming to a capital city near you. LEArN HoW SMArT INvESTorS MAkE $1000 – $5000 PEr WEEk! 21st Century Eminis ensures you have the game plan and strategies to give you the maximum advantage – plain and simple. PLuS.php or email bookings@21stca.com.com.au/webinars..au/workshops.

6% of my investment.040 for the 2. You receive all the upside profit. at $1. Simply put.300 I paid for the put option. your loss is the $1. If the share price stays the same. If the share price goes up 50% to $15. our houses. the second is to share in the company’s real profits via dividends. There are few of us with a high enough tolerance for risk to refuse to insure our cars. I would still have made a profit of $740. WBC paid a total divided of $1. I purchased 2. or buy further insurance to extend the protected period. In our scenario. In foreign markets. including constructing a focused investment portfolio. limiting your loss to the premium you paid for the put option. If the share price falls. We’ll experience more crashes on the sharemarket over a lifetime than we will in our cars (hopefully!) so it really does make sense to insure our shares as well.50.000 Westpac Banking Corporation (WBC) shares at $19. Again. you have only lost 10% of your original investment.300. and super. because the dividend income was higher than the price I paid for the put option. you have made a 40% profit – the profit minus the cost of the option. dividend payments can be used to offset the price of the put option. you use this insurance policy to sell those shares at the same price you bought them for. selling your shares to the insurer for $10. If the price stays the same. Why do we do this? Because no matter how promisingly something starts out. even if the share price had fallen and I had exercised my put option. If you sell your shares to lock in the profit. or 5. If you crashed the car. you can sell at the price you bought for.000. the total profit I received was $11.15 per share (for a total cost of $2.000 shares and this is the smallest unit you can buy. At the same time. minus the $1. When we take into account the price paid for the put option. Imagine you bought a new car for $30. put options also expire after a set period. As you can see. What actually happened though. Let’s look at an example. expiring in June 2006. Had the share price fallen in that period. at a cost of $1 per share.000). If the share price goes up – which is why you bought the shares in the first place – you make money. or 5% of your total investment. the maximum amount at risk would be your premium plus the excess – $1. Options don’t last forever. This gives you the right – but not the obligation – to sell those shares at $10 any time over the next year. minus the cost of the put option.300). A put option simply gives you the right to sell your shares for the agreed value (called strike price) at any time up to the expiry date. Just as you have to pay a new insurance premium every year to insure your car. That’s a fairly low risk tolerance when compared to risks many of us take in the market – especially when you consider cars depreciate and are therefore a liability.000 shares I had bought. whereby you pay someone else to take on the downside risk. This cost can be offset however. So.000 capital gain. you can extend the insurance period by buying another option.500.000. So while your shares have lost 50%. human nature tells us that it could still go wrong down the track and we want to protect ourselves from that. and insured it for $1. Now. our lives – even our love affairs in the form of the Hollywoodesque “pre-nup”.000 shares in The Widget Corporation at a share price of $10. the most I could have lost would have been the $2. yet plenty of us who throw vast amounts of money into the market without any kind of insurance at all. There’s no excess on this kind of insurance and the strike price is the same as the purchase price of your shares (assuming you buy them at the same time). it’s an insurance contract on the shares. with a strike price of $19. If the primary reason to buy shares is to share in capital growth through a rise in the share price. JB Global founder chief executive and one of 21st Century’s most popular speakers Justin Beeton discusses how to have fun safely 66 |wealth educator . and the dividend income received. maximising your profit even further.| portfolio | Using protection We use protection in so many aspects of our lives. Say you buy 1. not an asset. We insure our cars.000 with a $500 excess. by insuring your shares you’re only risking the cost of the put option.52– $3.000 you paid for the put option. you buy one put option to protect the 1.4% of my original investment. How? By taking advantage of the second benefit of being a shareholder – dividends. options come in smaller and therefore more tailorable sizes. 740 – 28. leveraged investing. and two WBC put options. Capital protection is a sound cornerstone for a huge range of investment strategies. active management.000 you paid for the option – 10%. We can do this easily using put options. In Australia.50 (for a total investment $39. That’s why I’m constantly astonished that so few people insure their shares. You could exercise your right under the put option contract. Again your loss is capped at the premium you paid for the put option. To find out more about using Justin’s strategy and for a free consultation call 1800 999 270. was that WBC shares rose to $25 before the put option expired.000 shares at a strike price of $10 for 12 months. you have made a $5. or you can sell your shares at $10. one put option covers 1. Let’s see this in action in a real-life example: In September 2005. say the share price falls 50% to $5. My total outlay was $41. That year.

WealthEducatorMagazine.com. www.au wealth educator| 67 .| portfolio | Just as you have to pay a new insurance premium every year to insure your car. put options also expire after a set period.

“There are lower trading costs and trades take seconds to minutes — you get the results daily making trading very exciting. where it is possible to control a large portion of cash for a minimum margin (around $500 per contract).” So what are the attractions? “It’s a highly traded liquid market.” Traders can also easily capitalise on downward market trends as well. “Day trading the eminis provides long or short trades giving us the ability to make money when the markets are going up or down. allowing investors to capitalise on markets on the way up and the way down. meaning that trading costs are a lot lower than other areas of the market.| portfolio | creating wealth from While many traders will be familiar with the concept of emini future contracts since they were introduced by the Chicago Mercantile Exchange in 1998. which increases opportunities daily. the opportunities for longterm wealth creation within the sector are only slowly becoming publicised in the Australian market. Globally the market is huge — the current average daily implied volume is more than $40 billion. “There is a low start up capital requirement — it costs around US $2500 to open an account.” The current average daily implied volume for eminis is more than $40 billion Possible Emini Markets • S&P 500 • Mini-Dow • Nasdaq • Russell 2000 • Eurostoxx 50 Definitions • The “e” stands for electronic •“  Mini” represents the portion of the normal futures contract and also relates to $500 margins or performance bonds • S&P emini is an electronically traded futures contract on the Chicago Mercantile Exchange •T  herefore the S&P 500 emini is one fifth the size of the standard S&P 500 futures contract. For the full contract you need a lot of money to trade it.” According to Loughnan the other benefit of emini trading. •T  actics: eminis can be traded long or short.” Loughnan said. which far exceeds the combined traded dollar volume of the underlying stocks.” he explained. According to eminis trader and head trader for 21st Century Eminis David Loughnan. “For every trade we go for twice as much profit. if we only got the trades Trading eminis right 50% of the time. The emini represents the top 500 large cap stocks in the United States The Attractions • Liquid: the market is highly liquid and extremely volatile. You have the ability to make as much money as your experience allows you to with no cap on what potential you can make in the future. Once the trade is complete the money is straight into your account.” he explained. if you had five winning trades at $500 [return] and five losing trades at $250 then the outcome is $250 profit. An emini — the “e” refers to electronic — future contract is a group of stocks traded as a single contract where the value of the contract represents the value of the underlying group. was the large exposure to profit through the market’s extreme volatility. You can re-use your capital multiple times a day giving you the advantage of making the most of your working capital. “Emini S&P 500 futures contract is onefifth the size of the standard S&P 500 futures contract. “We never risk more than 2% of our capital per trade and we always use a risk to reward ratio of 2 to 1. “The cash flow opportunities are incredible in the markets. Through a strategy of minimising the exposure to this risk then strong returns can be realised. •C  osts: Brokerage can be around $5 round trip per contract. creating plenty of regular opportunities for traders with positive and negative market conditions. one of the attractions of the emini environment is the low barriers to entry. apart from the accessibility. •L  everage: Opportunities to leverage trades abound. he continued. Loughnan continued. “It is vital to be able to trade both ways to follow the trends and profit from them. For example. 68 |wealth educator .

.000 a day or more from the Forex markets. Maximise your returns from the biggest market on earth with a daily turnover in excess of US$2 trillion!!! 21st Century Forex teaches you how to analyse the different market dynamics to categorise markets trending up. our complimentary 2hr Workshop. how smart investors make $1.“Learn how to trade like a pro using a PROVEN system” THE FOREX WAY. sideways or down. along with strategies to minimise your risk and maximise your returns. To get your FREE Forex DVD or e-Book and secure a ticket to a Workshop CALL 1800 999 270 www.com..000 to $2. Join 21st Century Forex for an in-depth look at the world’s most traded financial market. Designed for new and active traders alike. You will learn in plain English how to become a part time or full time trader. provides a hands-on opportunity to learn more about the Forex market.21stCenturyForex.au .

OU TSI DE OUTSIDE THE THE SQUARE SQ UAR | portfolio | Looking to diversify away from traditional stocks and property? Stevie Newbegin and Joanne McCulloch examine some alternatives 70 |wealth educator .

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Art continues to be a sound alternative investment, with top pieces pushing the $1 million mark. There is also a growing art rental market, where investors can generate annual income from their pieces by lending them to large corporations. This strategy can be implemented and managed by a range of art investment firms, which take a cut of the earnings in return for their efforts. This option is popular for those wishing to buy art as a longterm investment – particularly as part of their self-managed super fund. Art Equity chief executive and director Raj Nanda explains: “Akin to a fund manager, we also create portfolios for our clients. We manage the portfolios and provide a return – which varies at between 6.5 to 11 per cent per annum at the moment – for around two years. We then rent the art out to the corporate market, and that’s how we make our return. It suits corporations who want to rent art for business purposes. They can have a $200,000 piece hanging on their wall for a fraction of the total purchase price.” The advantage of this option is that it allows an investor to make money from their artwork while they retain ownership. At the end of the lease period – which can range from say five to ten years – they can decide whether to sell the piece or hang it on their own wall. Dominic Clover, director of Art Index, agreed that renting was an ideal option for long-term traders: “The benefit is that not only are you investing in an appreciating asset, but also getting a return on your investment. Like a fixed term account, we offer a fixed return as the asset appreciates.” What’s more, the global economic dip could actually benefit the art rental market. When times get tough for large corporations, often the first thing to go is their art collections. This has certainly been the trend in recent months, with the likes of Qantas and Fosters selling off their major art collections. This move is stimulating the rental market, particularly with companies willing to spend around $5000 or more for a single painting for their foyer or boardroom. So what should you look for in a piece of art? The artist’s career stage, awards or recognition and galleries in which they have showcased their work are a few key factors, Clover says. “These things give an indication of where they are going and what the demand will be for their work in the future. Demand dictates capital appreciation.” There are potential downsides and risks involved in art investment, however, particularly in terms of a lack of liquidity. If you are forced to sell your piece, you will be subject to the whims of the market and investor appetite on the day. Art is very much about personal taste as well as the potential for capital appreciation. Art Equity art director Ralph Hobbs says it pays to do your research about the artist. “We categorise artists into emerging, mid-career and blue-chip. That gives the investor a certain level of confidence when looking at a work. With an artist such as John Olsen, we have a solid indication about what a watercolour or a major painting is worth. With an emerging artist it’s much more speculative. It’s a bit like buying a speculative share – you buy at a much lower price and it has the potential to go up but it may not.” In 1997 the domestic art auction market was worth $33.5m and in 2007 it was worth $175.6m. Regardless of the market, with alternative investments it is essential to do your research and seek advice before handing over your money. “It makes for a sensible medium to longterm investment over five to ten years, rather than for those wanting to make a quick buck,” says Clover. “You need to receive expert advice before you commit.”


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Car number plate trading is gaining in popularity thanks to a growing appetite for personalised vehicles. Rare plates are now fetching hundreds of thousands of dollars at auction and generating significant returns for investors in the know, as Number Plates Limited director Gary Dean explains. 01 How does number plate trading work? You can purchase a plate either online, through classified advertising in newspapers or through your states government number plate issuing office. If you would like to sell your plate, go through the same channels. Some websites, such as ours, allow you to list your plate within hours. It is placed within a certain category, such as “custom plate” or a model such as Mercedes Benz. 02 How popular is it? Heritage plates are becoming increasingly popular. These are the first number plates issued to the first legally registered motor car in each state. Custom plates have been available since the mid 80’s yet have not become popular until the last four years. Values have grown by approximately 85 per cent each year. This steep growth is due mainly to the availability of new styles such as custom, personal, prestige, business, football, sport, car racing, to‑wns and events. The widest variety of plates are available in Queensland. The state’s prestige plate, which is equivalent to a Victorian custom plate, currently retails at $2295 compared to $400 for the Victorian custom plate. Investing in number plates is less popular in other states, such as NSW, because they do not permit outright ownership of some plate varieties and charge a registration fee with a yearly rental. 03 What kind of investment returns can be generated? It depends on the plate and the market. For example, the plate HORSES originally sold for $180 before being resold ten years later for $2500. Five years after that it sold for $7500 and is now advertised again for $12,500. The value often relates to the broadness of the market that the name suits. For example, the HARLEY car plate sold for $23,000. 04 How much have the top-sellers gone for? The most expensive plates sold have been the Victorian and NSW heritage plates, followed closely by the Queensland “Q” plate. Value depends on the number of digits on the plate, with fewer digits attracting higher price-tags.

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Here is an approximate guide to value in terms of digits for plates in Victoria and NSW: 6 digits: $2500–$12,500 5 digits: $10,000–$20,000 4 digits: $20,000–$45,000 3 digits: $50,000–$ 140,000 2 digits: $200,000–$ 900,000 1 digit: $1-2m Of course, the ultimate sale price depends on buyer appetite – who wants it the most and how much they are prepared to pay. 05 Why should investors get involved? Firstly, for profit. Great gains can be made from heritage and Q plates if an investor can source a low digit plate for a reasonable price. Both will stimulate capital appreciation. Profits can be generated from custom plates, but you must find more generic names to make the most money. For example, HORSES will be worth more than HORSE 1 or HORS3S. There is potential to triple your money in a week if you find the right plate at the right price. Heritage and Q plates enjoy significant capital appreciation, as they are very rare compared to custom plates and can even become more desirable than the car itself. Our motto states: “Number plates are the only car accessory that will increase in value”. Secondly, for the tax benefits. Many custom plates can be counted as company advertising. For example, a number plate including your company name, market type or service, can make a sizeable tax deduction. Remember that around 95 per cent of number plates do not sell for more than $1000. Do your homework and seek advice before taking the plunge. • An anonymous Sydney businessman paid an estimated $1m for the NSW “6” plate in 2008, a world record price. Auction house Bonhams, who facilitated the sale, said the previous record had been $680,000 for the NSW “2” plate in 2003. • A 2006 auction raked in $4.2m from the sale of 100 plates. Four-digit plates sold well, with the “1118” plate going for $77,000. The Black Euro plates were also popular, selling for around $20,000 to $35,000 each. The Ferrari plate “288” sold for $120,000. • Other high prices include the plate “VIC 1”, which sold for $450,000, while “T” was snapped up in New Zealand for $590,625.

Ten years ago, buying a car parking space as a property investment would have seemed ludicrous. But the growing scarcity of car spaces in Sydney and Melbourne is making this a lucrative investment option. For their size, car spaces have been growing in value at the same rate as the country’s prime real estate, with some selling for more than $50,000 per square metre. And then of course there’s the income generated through rental prices. City car spaces in prime office locations offer a consistent return of 6.5 to 8 per cent a year. Brett Matthews, joint chief executive of Secure Parking which operates and manages around 180 car parks across Australia, says spaces in the Sydney CBD have sold for upwards of $80,000, with the average one in Kings Cross or Ultimo fetching $50,000. What’s more many car spaces are still affordable. Francis Armstrong, the founder of findacarpark.com.au, says you can buy a city car park for as little as $18,000. And he says that with about 90 per cent of buyers aiming to rent the spaces out, they offer a high level of return on investment. “They are taking 7 per cent clear after tax–and that’s a good investment,” Armstrong says. He also points out that car spaces offer a much less time-consuming and demanding investment as residential or commercial real estate: “The barrier to entry is low. It’s not a house so it’s easy to manage–it’s just a block of land.” Most of the car parks are available on a strata title with ongoing costs, including body corporate fees and CBD parking levies. But the costs are often not prohibitive – particularly in the current market where there is a shortage of supply to meet the demand. Armstrong says CBD car parks advertised for rent at $200 to $300 a month are usually leased within 48 hours. “St Kilda Road in Melbourne is pretty hot–if you list it for $250 a month it will be gone within the week. The only ones that sit are the ones in the suburbs and those that are ridiculously priced.” Armstrong adds that it has a lot to do with attitudinal change: “People are now open to car park investing and they can see the value. You get some more sophisticated investors who accumulate 20 to 30 car spaces but a lot of the time now buyers are mum and dad investors. It’s a small purchase that they can fund through equity in their home.”



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or leverage. What is Margin Lending? When you borrow to buy a property in the real estate industry. it’s called a margin loan. the margin lender will require some security. or collateral over the loan. terms. CBA. also increases. however. The purpose of borrowing money to invest in either real estate or the stock market is to increase your exposure. then most margin lenders will lend between 50 per cent and 70 per cent of the value of the shares. It’s a double-edged sword. to ideally make a greater return. Daniel Kertcher offers some clarification. When you borrow to buy shares in the stock market. As an alternative to using cash as security. margin lenders may also accept other shares. and many offer these services online. it’s called a mortgage. Just like a mortgage on a property. Here. If using cash as security. Most margin lenders are either banks or stock brokers. 74 |wealth educator . NAB.| portfolio | Margin Lending Margin lending is one of those things that’s often discussed but never really explained. managed fund investments and/or real estate. as well as charging interest on the borrowed amount. ANZ and other banks all offer margin lending services. The risk.

000 worth of shares x 10 per cent profit = $2. as you own twice as many shares (assuming a 50 per cent margin loan amount). a trading education company.com. Daniel Kertcher is the founder and CEO of Platinum Pursuits. But did he forget about the increased risk? Unfortunately for Eddie. As you can see.WealthEducatorMagazine.000 to invest.000 x 7 per cet = +$70 interest.21stCenturyDanielKertcher.000 in shares. say you buy $20. He is also the author of Taming the Beasts: Secrets to Profit in Volatile Bull and Bear Markets. and you will find that it will usually be similar to home loan rates. Believing that his share price would continue to climb. Why would you want to use a 50 per cent margin loan? Because. but also doubled the risk. Using A 50 PER CENT Margin Loan Now let’s say you invest $10. it can substantially improve an investor’s rate of return. However. As long as the share price continued to rise. you will get a margin call. as you are putting up 50 per cent ($10. He was no doubt attracted by the increased returns. as security to borrow a further $250 million worth of shares via a margin loan.000 loss (total loss = 10 percent). had vanished in one transaction! Margin lending is a powerful wealth creation tool. or to invest more cash to cover the minimum margin requirements of your loan.000 profit (a total return = 10 per cent). The amount that you put up is known as the “margin”.000 worth of shares x 10 percent loss = $1. Using a margin loan with a 50 percent margin lending amount would mean that you can purchase $20. as well as incurring an interest cost. or the LVR. $20. the margin loan trade effectively doubled the rate of return. worth approximately $250 million. With a 50 per cent margin loan.000 worth of shares x 10 per cent loss = $2. What is a Margin Call? A ‘margin call’ is an order whereby your margin lender forces you to sell some (or all) of your shares. This can be a big advantage. The share portfolio falls in value by 10 percent over one year.000 instead of $20.7 per cent). Scenario 2: Share price falls 10 per cent. Eddie’s entire fortune of $250 million. and 20 years worth of hard work. So now the margin loan proportion has risen from 50 per cent to 67 per cent of the total value of the shares. with half of that value being a margin loan for $10. The share portfolio falls in value by 10 per cent over one year.au www. For a FREE DVD on Share Trading and CFDs by Daniel Kertcher visit www. The margin loan amount is still $10. Once the share price fell to around $4.000. This is known as the loan-tovalue ratio. and the margin lender will provide the other 50 per cent ($10. as many companies in both Australia and the USA pay dividends between 1 per cent and 8 per cent per year. if the share price goes down you will lose twice as much and still have to pay the interest on the loan. Using 50-PER CENT Margin Loan Then you invest $10. Then.com.000) as a loan. using a 50 per cent margin loan facility.000 worth of shares. $20. Scenario 1: Share price rises 10 per cent.000 on a portfolio of shares. Interest rates for these loans are competitively priced between most lenders. But it is critical to know the risks. if the share price goes up.000 loss Interest on $10.000 x 7 per cent = -$70 interest. the share price dived from $8 down to $2 within days. he would make twice as much profit. But are there any other advantages with margin lending. $10. CASE STUDY: How things can go really wrong with margin lending Eddie Groves is the famous founder of the ABC Learning Centres. The share portfolio rises in value by 10 per cent over a one year period. say the share price drops so that your shares are now only worth $15. Used by investors who understand the risks.000 on a portfolio of shares with no margin loan. assuming 7 per cent interest per annum.3 per cent).000 on a portfolio of shares.000. to avoid losing their money. So using a margin loan increases both the reward and the risk involved with the trade. you can buy twice as many shares as you would normally be able to using just your own money. He built up a fantastic empire of child care facilities over the past 20 years. So in some cases the extra dividend payments can offset the cost of the interest on the margin loan.000 profit interest on $10. That’s a $1.000) of the value of the shares as cash. This took his total holdings to approximately $500 million worth of shares in ABC.au wealth educator| 75 .000 worth of shares x 10 per cent profit = $1. using a 50 per cent margin loan facility.930 profit (total return = 19. The maximum LVR is typically 70 per cent.000.070 loss (total loss = 20. The share portfolio rises in value by 10 per cent over one year. apart from increased returns? One advantage is that if the company pays a dividend (a profit sharing payment to shareholders) then you receive would twice as much. meaning that if the LVR on your trade rises above 70 per cent. and to use it wisely.000 on a portfolio of shares with no margin loan. That’s a $2. $10. For example. Eddie used his massive holdings of shares in ABC Learning Centres. and they will each have a maximum LVR. Some shares are riskier than others. the margin lenders were forced to immediately sell his entire shareholding. you will make twice the return on the trade (less the interest cost of the margin loan). Margin lenders have a list of shares they have ‘approved’ for margin loans.| portfolio | Buying Shares with a 50-Percent Margin Loan Let’s assume that you have $10. No Margin Loan Let’s say you invest $10. No Margin Loan Now you invest $10.

The even better news is that our economy is showing real signs of improvement and we are not far from seeing innovative products coming into the market. by analysing a series of events in the market we are able to forecast and predict what will happen. except for existing customers who have held a CBA loan facility (which may be a credit card) for at least six months. |wealth educator . THE UPSIDE The good news is that although it’s more complex to obtain finance than approximately 18 months ago. Melbourne has also recorded a milestone. let’s remember that as interest rates rise they will be doing so from near fifty-year lows. Lending policies have tightened up and a number of products have been withdrawn from the market.000 mark for the first time. In addition to the reduction of LVRs. We were originally expecting the RBA to leave rates unchanged until early 2011 but now it looks like interest rates will head higher by end-2010. Residex chief executive John Edwards said the data suggested confidence was returning to the Australian property market and residential investments are once again providing buyers with positive gains. The time to fix has come and it’s too late to find a ‘bargain’ fixed rate. It is important from the outset to choose a loan that suits your individual situation and your requirements. Understanding finance is a crucial element in becoming a successful property investor. After years of experience an investor will come to realize finance is the backbone behind any investment strategy. With lending you must always follow the KISS philosophy – keep it simple. Whether you are looking at purchasing your first or tenth property finance is the underpinning factor as to whether you will proceed or whether you need to hold off. FINANCE ACCESSIBILITY So what does this mean for finance? One of the direct impacts of the global credit crisis on Australian homebuyers is access to finance has become more complex. with the median house value passing the $500. We have already seen BankWest launching its capped rate loan. however this level of funding is only available from limited lenders and with the requirement to provide more evidence of savings to obtain finance. but it can fluctuate underneath. I don’t believe Brad and Angelina will stay together long-term! TO FIX OR NOT TO FIX? To fix or not to fix always is always a personal decision depending on financial circumstances and attitude towards risk. hence it doesn’t make financial sense to fix at present. There are still a few lenders who are flexible on savings proof. For example most lenders now have specific minimum savings requirements of between 3% and 5% of purchase price over a minimum of three to six months. The difference between the variable and fixed rates are too big so fixing rates and paying that high rate for stability is too expensive. Before getting jittery right away about the prospect of higher mortgage rates as you consider your options. there are still a large number of products and lenders available. which is a variable loan capped at a certain rate. a good savings and credit history and a secure job – home finance is readily available.   A SIMPLE PLAN For most home buyers and investors – those with a reasonable deposit or equity in an existing property. the ‘cashout’ policy (taking advantage of your equity) has been limited to $10. It is a matter of understanding who is funding what and hence the importance of having a competent finance specialist on your side understanding the market and the lenders’ different offerings.21st Century Finance general manager Shereen Mitwally sees finance conditions picking up in the year of the tiger 2009 was a tough year and for most around the globe we were all happy to welcome in the New Year. 76 hello 2010: YEAR OF THE TIGER Currently the maximum loan to value ratio (LVR) is 95%. Don’t fuss over features you will never use and hence paying a premium for. I often get asked whether I have a crystal ball to advise on the outlook of interest rates – among other subjects such as whether Brad Pitt and Angelina Jolie will stay together long term. The unanswered question is how quickly the rise will be delivered to borrowers and this is unknown as it depends on how well the RBA controls inflation – among other contributing factors. The improving economic outlook and strong property market fundamentals are just some of the reasons why many investors in particular are singing a happier tune. It is also vital to remember that there is always more to a mortgage then just the ‘advertised’ rate.000 point for the first time. Although I do not have a crystal ball to advise on the outlook for interest rates. You are basically ‘hedging’ your risk in the scenario of rates increasing however receiving the gain if rates reduce – which is simply brilliant! I believe we will see more innovative mortgage solutions in the next 12 -18 months. This means it cannot go above a certain level. And for the people who are curious: no. According to property information specialist Residex Sydney’s median house price breached the $600. 2010 – the Year of the Tiger – will be an exciting year for many people for various reasons. For Australian property purchasers one of the most obvious examples of this tightening access to credit has been the gradual withdrawal of low deposit loans – the days of 106% loans are long gone! RAMS and St George have both discontinued their 100% LVR loans. while Commonwealth Bank has reduced its maximum LVR to 90%.000 by St George and others banks are following suit.

Any alternatives to JPM investment Group director Alex Jamieson discusses how much diversification is really enough Fund managers. then one also needs to start questioning the asset classes that they invest within such as cash. shares (both locally and internationally) and property (including commercial property).” This is really in stark contrast to the funds management industry. Holding a basket of investments helps spread the risk. fixed interest. So if the above principles hold true. It would then also be appropriate to question if the sector makes financial sense to be in given the current economic climate – is the sector over-priced or under-priced and do you feel comfortable about investing within this sector? Too often people invest in sectors just for the underlying basis of diversification rather than looking for a return on capital for the risk that they are taking on with their portfolios. you might be interested to find that his top five holdings on average comprise 73% of this portfolio. Warren Buffet in financial terms is regarded as one of the most successful investors. Essentially this can be easily described as if you own one investment and this investment goes down in value or dissipates then you would lose everything.au wealth educator| 77 . If one investigates the past 25 years. which actively promotes diversification across not only asset classes but within the funds themselves which are heavily diversified. Buffet has stated that “diversification is a protection against ignorance.au or call 1800 444 710 www. in reality are you getting any direct benefit of diversifying your portfolio or would an index holding suffice? In business. So make sure you consider all these things so that you are not diversifying your performance away. research analysts and financial planners constantly talk about the importance of diversification. The question therefore becomes how many investments do you really need to be truly diversified? What is commonly not known is that in reality to achieve 90% of the maximum benefit of diversification a portfolio only needs to hold between 12 to 18 shares. For a small monthly licensee fee you can access quality leads in your territory and rapidly expand your business! For further information e-mail finance@21stcenturyfinance. This principal of diversification is in stark contrast to the funds management industrywhich broadly holds hundreds of shares in their portfolio. It makes very little sense for those who know what they are doing.com. Are you a successful finance broker or would you like to become one? What’s the biggest challenge facing the mortgage broking industry currently? Apart from tightening of credit for most brokers they would say they simply don’t have enough qualified leads. Therefore. You might start to question diversification? that if they only need 12 to 18 shares why they hold so many? Are they trying to perform or just outperform the index? Keep in mind if the index is -20% and they do -15% they have outperformed. successful entrepreneurs stick within their areas of expertise and focus on building their knowledge and skill within this | portfolio | field to create their financial success.com. yet is the concept really truly understood? The principles of diversification are utilised to eliminate what is commonly called concentration risk. This assumes that you own an equally weighted portfolio and the shares are not all in one asset class.WealthEducatorMagazine. That’s where 21st Century Finance can help? We urgently need existing brokers throughout Australia who would like more leads as we simply can’t keep up.

The problems with a hybrid trust are twofold. • Jack and Jill borrow the money in their personal names (or if Jack is the high income earner. it is not always easy to get bank finance. either because the property starts making a positive cashflow. Firstly. they have had difficulty standing up to ATO scrutiny in light of the split loans High Court decision in 2004. And when you realize that the average person on the east coast of Australia gets sued three times in their lifetime.000 loss against your income from your other sources.000 and you receive rent of $20. This has been our preferred method in the past. Therefore. getting sued is now a real risk. more and more people are buying property in family trusts for asset protection and tax reasons. you can offset the $15. 78 |wealth educator . Marvellous isn’t it? The government is subsidising you to help you buy a property! However. repairs. if Jack is paying the bank 6% interest. Buying a growth property in Australia comes with a double benefit because although it costs a lot to have an investment property each year (in interest. because they will lose their capital gains tax exemption for the family home.| portfolio | How to structure your next property purchase 21st Century Accounting CEO Warren Black says property investors should consider building strong legal structures to support their portfolio We have all seen people making a fortune from buying property over the last 10 years. You cannot claim the negative gearing losses made in the family discretionary trust against your personal tax (because the trust is separate from you as an individual) until your trust makes income to offset the loss. A discretionary trust with a loan agreement functions as following. the government allows you to negatively gear the costs of your property against your day job income and give your tax refund a massive boost. although as a general rule we don’t encourage clients to buy their family home in a family discretionary trust. Discretionary trusts with a loan agreement. to buy their properties in a family discretionary trust for asset protection reasons. That is.000 in expenses each year.000 per year but you pay $35. Secondly. we encourage our clients. These trusts are structured in a special way whereby the hybrid trust buys the property and you (the highest income earner) own the income units in the trust – this effectively allows you to claim the negative gearing deductions. he would borrow it in his name only) • Jack lends the money back into the trust by a properly structured loan agreement with the strict agreement that the Jack and Jill Trust pays Jack a higher rate of interest in exchange for Jack funding the negative gearing losses for the trust. Let’s say Jack and Jill are buying a property and set up the Jack and Jill Property Trust to do it. especially business clients. Capital gains tax savings 3. Can this problem be overcome? There are two ways accountants have used to claim their negative gearing losses in the past: Hybrid trusts. There are three main benefits for buying an investment property: 1. Mums and dads and Australian property investors continue to flock in droves into the property market looking to buy growth properties. but recently has had complications with the ATO. Savings on income tax on the net rent for positive cashflow properties But there is a problem with buying negatively geared properties in a trust. other costs). For example if you own a property worth $500. or because the trust makes income from other sources which it offsets against the negative gearing loss. Despite the Global Financial Crisis property prices continue to soar. For example. Asset protection 2. Audit activity by the ATO on hybrid trusts is justifying our view in this regard. Another reason why we encourage clients to buy an investment property in a family discretionary trust is the potential capital gains tax savings when you sell the property.

By submitting this form any advice provided by Halifax Investment Services Ltd (ABN: 52 096 980 522 Australian Financial Services Licence: 225973) is general advice only.21st Century Broking Services Bringing you up to speed with the latest opportunities for developing your Lifestyle Portfolio. Once set up there is no other paperwork required to go from full service to online. . To start simply visit www.com and the rapid fast account process can have you up and running in no time at all. 21st Century Investment Services may receive a referral fee.21stCenturyBroking. accredited and licensed brokers to provide these services. Need a new Broker? Find out why so many people are choosing 21st Century Broking as their preferred choice for trading success. Trading involves the risk of loss as well as the potential for profit. However. We offer more online trading platforms than any other broker.21stCenturyBroking.com or call 1800 730 496 Disclaimer: 21st Century uses qualified. we recommend that if you are confident in placing trades online and want to enjoy even lower broking fees ask for your ONLINE TRADING ACCOUNT when a friendly account opening representative calls you. For further information visit www. Full service Stockbroking is perfect for those who wish to rent or trade shares.

DISCLAIMER This advice is general educational advice only. If you generate income from another source in the discretionary trust (for example trading income from shares) or from another discretionary trust which has a family trust election with the negative gearing trust. and will not fall foul of any of the tax avoidance rules or Fletcher’s case. If you are buying a property. you need to see a qualified accountant or lawyer to ensure that you are correctly structured when purchasing your family home or next investment property. Not only that. Instead the shortfall of interest gets capitalized onto the purchase price of the property and builds up over time until the property becomes positive cash-flow. this structure works.e. it is important that there is a reasonable likelihood that the property will become cashflow positive within a reasonable time. because in a practical sense when a trust is buying a property and it has no income. the Jack and Jill Property Trust doesn’t have a negative gearing loss. we have to accept that the ATO will not allow the negative gearing deductions. it is a commercially viable arrangement. The obvious choice to fund the shortfall are the individuals behind the trust. but if not.000 shortfall.000 of expenses. and is not intended to be relied upon as specific advice for your personal circumstances. as we believe it is fundamentally wrong.000 rent. but has to pay $40. and therefore. Jack pays tax on the net cash-flow. If the individuals lend to the trust and have a commercial agreement to ensure that they are compensated by the trust for funding the negative gearing shortfall. The problem is that the ATO have recently disallowed the negative gearing deductions for one of our clients under this method. Jack will fund the $15. In our view. That is a $15. A fantastic incentive to generate income from business or from trading! In summary. Once it becomes positive cash-flow. there is a real risk that the ATO can apply the general tax avoidance provision (Part IVA) and cancel the benefits. plus the extra interest that he receives from the trust (i. There is no set amount of interest: it depends on what would be commercially viable so it is a genuinely commercially viable loan and not just a “doctored” or “contrived” scheme to avoid tax. This is evident from the High Court decision in Fletcher v FCT in 1991. contact 21st Century Accounting to arrange your free 30 minute consultation to ensure that you structure your property purchase correctly. you should always seek professional advice to ensure that this works for your situation. we strongly recommend using a family discretionary trust to purchase an investment property (but not a family home). The government is subsidising you to help you buy a property That leaves us with only one choice to claim the negative gearing deductions for losses in a discretionary trust.5% or 8% interest. • For this arrangement to work. For specific advice. However. in our view. but until the result of the objection is known. 80 |wealth educator . Assume that the Jack and Jill Trust receives $25. as a general rule. • The effect is Jack has loaned the money to the Jack and Jill Property Trust.000 shortfall and claim the shortfall as a deduction against his personal tax. you can offset this income against the negative gearing losses in the trust. due to the issues with claiming negative gearing deductions for a property in a discretionary trust. We have lodged an objection to this decision.| portfolio | Jack would charge the Jack and Jill Trust 7. the higher interest rate). • The effect is this. it has to fund the property shortfall from somewhere. he can claim the shortfall that he is funding for the trust as a deduction against his personal tax. That is. however.

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you’ll now find many others are using this phrase and trying to imitate the strategies used. the best way to think of it.com. This is a strategy that Jamie McIntyre termed some 10 yrs ago.au . is as real estate.WealthEducatorMagazine. WHY NOT RENT YOUR SHARES OUT? Renting Shares is one of the simplest ways to get ones money working instantly for you. You’d never just leave it vacant and miss out on monthly rental income.com. MILLENIUM hOTEL QUEENsTOWN.IF YOU OWNED AN INVESTMENT PROPERTY YOU’D RENT IT OUT. NZ For terms and conditions visit www.au Prize includes airfares and accomodation in Queenstown up to $1000 and 2 tickets to the 4 Day Education For Life Event .WealthEducatorMagazine. Watch your FREE DVD.FinanciallyFreeDVD. answer 3 simple questions and you could VD D e Fre 4 DAY EDUCATION FOR LIFE EVENT 16Th .000 a month – yes Jamie often makes that much a month from share renting – visit www. so why miss out on rental income from your shares?  Envisage earning 5% per month renting out your shares. win a trip to Queenstown To enter visit www. that equates to 60% per annum without compounding  Envisage how much of a difference it could make to your Superannuation Fund and retirement  Envisage the difference to your investment balance after a few years  Now Envisage the difference it could make to your life right now! To discover how you can earn anywhere from $500 to $50.com and request a copy of the FREE DVD.19Th JULY.Valued at $3995. To learn about renting out shares.

The Address Downtown Burj Dubai leads the pack with revolutionary guest benefits. no two rooms are alike. noon or midnight. personalized luxury. into the heart of what has been hailed as the most exclusive square kilometre development in the world. less than 20 minutes from the airport. they have the opportunity to keep their room for up to 24 hours from check in without having to adhere to the traditional morning check out times established world wide. love work and life. with a fresh clean feel. It is this feature of a 24 hour stay that The Address Downtown Burj Dubai stands to innovatively lead the pack in service.au wealth educator| 83 . but fortunately its PAGE 90. successful. you can’t but be in awe of the elegant. offering them and their partner/ family. it lends itself to a warmer. personalized style of understated opulence. modern and charming. The hotel offers 196 rooms. This revolutionary service gives guests the option of whether they arrive morning. while we sip coffee around the pool. mystical luxury. This distinguished leisure and business traveler is forever changing and to keep up with the demands. With a brand philosophy of “Where Life Happens” The Address is attracting the international jetsetters and global high achievers who value personalized luxury. with complimentary wireless internet. location and services. conveniently processed in your room. Arriving at The Address Downtown Burj Dubai. guests can enjoy the exclusive privilege of a total 24 hour stay.com. for business and pleasure www. A smaller. vibrant character. Entering your room. I like to call it not “try hard. The interiors are stunning. lays ground for the personality of your stay. Meaning cool. have an exuberant. giving quests space but still being warm and inviting. a great host of privileged.WealthEducatorMagazine. in an effortless. not stiff. makes you feel like you’ll have to politely ask the latest James Bond to take his lady to his own room.travel A new Address The Address Downtown Burj Dubai is earning a fine reputation for attracting the Social CEO. iPod docking stations. luxurious and elegant. attracting exciting people and happening things around them. Staff pride themselves on being “cool and warm” says Laura Perez. Checking in. the hotel’s head of PR. They are spacious. stylish manner. hosting large flat screen televisions. Checking in delights more. being service orientated. contemporary boutique hotel. just a mirage. Candidates are hard working. Guests can enjoy the privilege of a total 24 hour stay.” They do provide a lovely professional service with ease and class.

nz 84 |wealth educator . After practical tuition in a fully equipped Land Rover your trained instructor will be at your side as you get maximum enjoyment – and learn new skills – from off-road driving. the security of a full body harness “leaves your arms and legs free to do what they want and allows you to depart the platform in any position imaginable”. Details: canyonswing.nz GET WET Sure you could sign up for a jetboat ride for some motor-fuelled adrenaline but it is not the same as letting Mother Nature try her hardest to soak you to the bones.TO DO JUMP OFF STUFF 1 At AJ Hackett Bungy you can choose from the original Kawarau Bungy at 43m.co.co.nz WHAT JUMP OFF STUFF 2 If you have a slight fear that the rope might slip off your ankles when you bungy jump you might want to consider the Shotover Canyon Swing. Head up to the Skyline Restaurant (accessible via cableway) for a 220-degree view of Queenstown’s vista including Coronet Peak.co. What’s that? You still want more gravity influenced fun? Try the luge.co. Details: nomadsafaris. or have a crack at the big one – The Nevis clocks in at 134m.co.biz EAT IT UP After experiencing various forms of gravity you will need a break.nz JUMP OFF STUFF 3 Sick of jumping off land based platforms? Try a plane from NZONE instead. an 800m downhill track winding through the pine trees. According to the attraction’s promotional material. Reassuringly there is also a “launch system” just in case you can’t pluck up the courage to jump yourself. Details: nzone. under and through the great outdoors then Nomad Safaris’ 4WD Experience could be for you. Details: bungy. The Remarkables and the blue waters of Lake Wakatipu. Details: rafting. Queenstown Rafting has white water rafting trips on the Shotover and Kawarau Rivers – the Kawarau River is apparently slightly more relaxing but still includes the Dog Leg – at 400m it is New Zealand’s longest commercially rafted rapid. The company has been operating in Queenstown for 15 years and have taken more than 85.000 passengers tandem skydiving.nz DRIVE OFF ROAD If you’ve ever wanted to drive over. Details: skyline.

luge tracks. Queenstown will feed your imagination. jet boating.| travel | You’ll never be short of things to do in Queenstown Entertainment Whatever you do and whatever your style. a couple. Queenstown has it all. homely or luxurious B&Bs. walking. fuel your passions and revitalise your spirit. while the ultimate adventure playground sits right on its doorstep. For families. boat rides. www. whether you’re a family. stunning scenery and vibrant food and wine culture. or just on your own. mountain biking. with options from fivestar to budget or getting close to nature in Department of Conservation huts in mountain and bush areas. Whether you want five-star or five million stars. luxury lodges. trekking… The range of adrenalin charging options is exceptional. the options are endless – explore rivers.au wealth educator| 85 . You’ll never be short of things to do in Queenstown. superb local cuisine to sample or visits to nearby Arrowtown and Glenorchy. bike parks and a host of organised familyfriendly things to do. Queenstown offers a diverse range of activities. snowboarding. bungy jumping. mountains and forests to play in. The young-at-heart can choose skydiving. International chains sit alongside backpacker properties. whether you want to keep your feet firmly on the ground. fit for a king Planning on going to Queenstown for the 21st Century Education for Life four day seminar in July? Stay on and take in some of the local sites and activities hiking. canyon swinging. paragliding. wine-tasting. motels and apartment complexes. Then there are the swimming pools. heli skiing. Known as the Adventure Capital of the World the town is famous for its adrenalin fuelled activities. a group of friends. cosmopolitan resort town. lakes. parks. There is peace to be found here too: long walks along the lakeshore or river banks. You can enjoy adventure under the guidance of experienced professionals who will set you on your own personal path of discovery or you can take control of your own experiences armed with good information and the right equipment. Visitors can choose to stay in the heart of the downtown action or to retreat into the hills. It is blessed with lakes.WealthEducatorMagazine. or thousands of feet up in the air. in the water. Whether it’s relaxation and indulgence or adventure and excitement.com. hillsides and snow. rafting. pampering spa sessions. Its compact and picturesque town centre offers all the trappings of a sophisticated.

Equally it inspires me when I consider the work done by Fossey. But in order to open a frontier we must first acknowledge they are there. the People of the Monkey. whether to grow.S. or the People of the Crocodile and then with Bakhatla. “We shall not cease from exploration… and the end of all our exploring will be to arrive where we started and know the place for the first time” 86 |wealth educator . first with the Bakwena tribe. Once discovered one becomes aware of the choices before them. change and move out of their comfort zone or whether to remain where they are and remain potentially uncomfortable for the rest of their lives. To travel with a cause gives significance. The irony I have discovered after 20 years of taking experiential educational expeditions to the wilds of Outback Australia.| travel | 21st Century Adventure Travel’s Peter Bland explains the lure of adventures with a conscience A letter from afar Traveling is a fantastic way to open up new frontiers to move beyond one’s comfort zone. It quickens my pulse to imagine explorers such as Livingstone traveling by ox cart into the depths of Africa called to save the souls of those he lived with. Fortunately there are programs – such as Africa for a Cause – that offer the opportunity for fellow explorers to grow emotionally. When I think of the heroic and romantic images I have luring me to Africa they are always fuelled by those who have pioneered into its pathless deserts and teeming jungles drawn by the calling to help others. Eliot once put it: “We shall not cease from exploration… And the end of all our exploring will be to arrive where we started and know the place for the first time”. Images of Fossey beautifully portrayed by Sigourney Weaver in the 1988 movie Gorillas in the Mist have always had me wanting to travel to Rwanda and Uganda to see these majestic primates for myself and to share with others the magic of hearing the whispers and smell of a fellow raw primate in its and its family natural habitat. I am drawn to conclude from Livingstone. Indeed traveling with a cause to help others less fortunate to ourselves might well be the inspiration required to create the change within us now – to open up new frontiers emotionally. mentally and physically and to move beyond our own comfort zones. It shows his level of commitment to serve when he willingly grappled with a male lion just to earn the respect of the tribal leaders. a renowned naturalist and scientist who came to Africa in the 1970s to study the vanishing mountain gorillas of Rwanda and later to dedicate her life to saving them from likely extinction from illegal poaching. Fossey and others that have travelled and served in Africa that traveling with a cause gives meaning. for others. South America and Antarctica is that a comfort zone –once discovered – is no longer comfortable. mentally and physically and to make dreams come true for themselves and more importantly. hedging us in. for example pioneers such as David Livingstone in the 1850s and Dian Fossey in the 1970s. As T.

com www.21stcenturyadventure. • Climbing Africa’s tallest mountain Kilimanjaro.WealthEducatorMagazine. Tanzania. They will be putting their muscles behind their fund raising efforts as they and their companions get dirty and dusty helping to build a teacher’s resource centre for the charity in a Maasai village called Ilkurot (meaning ‘dusty place’) located approximately 30km north of Arusha. trekking and camping • Travelling in open trucks from Rwanda down through some of the best game parks of all of East Africa. Zanzibar. Lake Navisha and Masai Mara in Kenya. Serengeti National Park and the Ngorongoro Crater – the largest intact caldera in the world in Tanzania. Throughout this time and in the six months prior to their departure they will be working with their fellow travelers to help raise funds for the Maasai Wanderings – a charity set up to provide nursery. white-water rafting. Planned activities include: • Walking with the Silver Back Gorillas of Rwanda • Undertaking adventure activities including quad biking.au wealth educator| 87 .| travel | In September this year Peter Bland and Jamie McIntyre will be taking a small group of fellow minded adventures to East Africa. including ice climbing its retreating glacier • Relaxing while diving with whale sharks off Pemba Island.com. For those interested in joining Peter and Jamie in this once-in-a-lifetime opportunity to help and grow more information can be found at: http://www. including Queen Elizabeth National Park of Uganda. primary and secondary schools in Tanzania.

But really. Let’s be honest. Granted. with a heap of cool features to get you turning heads on the road. head-up display. Even if you are never going to own a Rolls Royce. DVD systems for rear passengers are becoming slightly passé in the automotive industry – regardless of the distraction factor for the drivers of vehicles immediately behind. The Ghost may lack the bulky profile of the Phantom but it is not short on space.000 to $750. The audio system delivers 600 Watts of sound through a 10-channel amplifier and 16 speakers. but if you are going to spend that much you might as well go a little bit further and include some options. It may double the distraction level for the driver behind. with each passenger able to watch an individual DVD. you should make every effort to ride in one just to experience the air-suspension. The gentlemen at Goodwood have put a lot of effort into these umbrellas. Not only are they Teflon coated (to prevent deterioration after being put away damp) but there is also an internal drainage system in the door to effortlessly remove any excess drips. which include night vision cameras. rear and top-view camera systems to assist with parking and tight manoeuvring. the position of the seat behind the door frame allows guests to travel with a degree of privacy while retaining a great view of the outside world. active cruise control and rear entertainment system would put the price in the $740. Regardless. there is a reason for that. 8 9 5 6 2 3 10 7 4 For more information: Sydney (02) 8338 3998 Melbourne (03) 8866 3111 |wealth educator . The car will set you back $695.000 including dealer charges and on-road costs. If you think the leather seats – which can include ventilation and massage features as an option – look flawless. The other signature features – such as floating hubcaps and electronically retracting Spirit of Ecstasy – are still there. With USB and auxiliary inputs and a 12. you can get an uninterrupted view of your environment through side. the rear coach doors not only open to 83 degrees to allow the most graceful of exits. but it will halve the arguments over which movie to watch. The new ‘entry level’ Rolls Royce Ghost will hit Australian shores next year. Estimates for options including the head-up display. the car has got some decent guts driving it. But the real electronics fun comes with the optional extras. Not only that. you might just find yourself talking about the smooth ride in the Ghost. In fact the boot area is bigger in the Ghost than the Phantom and it has been designed to fit four sets of golf clubs. air-suspension might not be your leading topic at dinner parties. however. The Ghost has taken it to another level.000 range. It’s all about the details with Rolls Royce – the bulls are selected over cows because there will be no stretch marks and the animals are kept at high altitude in special enclosures so there will be no chance of barbed-wire making a nick in an otherwise perfect hide. there are umbrellas in the door.9 seconds. With 563 bhp at 5250 rpm it will get off the line from 0 to 100km/h in 4.| travel | If you thought owning a Rolls Royce was out of your league. the lift and kneel function can raise or lower the Ghost by 25mm.5Gb hard-drive you will be able to load up all your favourite tunes for the road trip. Speaking of effortless. think again. a long term signature of the Rolls Royce fleet. Each is made from a single hide from a Bavarian bull bred especially for the purpose. Rolls Royce GHOST It’s probably best to get it out of the way first – yes. While others are standing on the outside looking in. but with a four 88 1 cornered suspension system that automatically adjusts if a rear passenger moves from one side of the car to the other. lane departure warning and stop and go active brake intervention. why would you want to go that fast when people need time to admire your wheels? I made the mistake of calling them ‘suicide doors’ and was politely told by the good folks at Rolls Royce “we prefer the term ‘coach doors’”. Behind the classic design is a serious swag of cutting edge technology.

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It’s not just the huge size. The world’s largest shopping and entertainment destination. There are many services to keep the partner entertained. with just a flash of Arabian influences. The Address signature restaurant is Hukama. For the shopping The Address has the location. Someone had to do the shops. still imbues a vision of magnificence. Indian. occult elegance. where panoramic 360 views. highest lounge in the city of Dubai. The Address is a distinctive modern hotel. Your body sinks ever so lightly in places it never has before. I felt our readers must know how good the shopping was. busy with their work commitments although wanting the needs of their partner met also. from the relaxed to the more stylish venue. It gives you more energy than ever. nail studio and even an ice cellar where guests may cool off after a treatment. with business meetings taking place in nicely tucked away corners. chic setting. Insomniacs beware you may have the best night sleep you have ever had. Be warned! It must be why the Hotel hosts the trendiest. Neos. meet half way in Dubai. I painstakingly pounded the pavement. Aquarium and the worlds largest fountain. are also available. The warm furnishings are comfortable and inviting. Abrian and Mediterranean cuisine. If it’s work life balance you are trying to achieve. Situated on the 63rd floor. are breathtaking and my now learned friend that follows me from room to room… No not James Bond but the Burj Dubai. of course under duress. If it’s more the fine dinning option preferred. socialize or partake in business. featuring eleven treatment rooms or the option of special treatments on the private outdoor terraces. More international dishes from Japanese. My son favored the ice skating. giving you enough privacy to partake in personal conversations yet still not so far removed that you feel isolated or alone. why not take your partner and make your next business a “meet in the middle” – instead of flying across the world. Zara has their pilot store in Dubai. It’s perfect for the business person. It takes two minutes to walk to the Dubai Mall. for it was all under one roof. well worth a look.| travel | CONTINUED FROM 83. I had just arrived from 2 weeks serious shopping around Milan in Italy and I have to say. Asian. providing visitors with views of the Burj Dubai and the environment to relax. 90 |wealth educator . Even around the pool gives you your personal space without the feeling of being crowded over and your conversations overheard. found it cheaper and easy in Dubai. tucks in and is guaranteed to take you to a slumber world never entered before. The Spa. Natalie Osborne was a guest of The Address Hotels and Resorts. There is truly something about “the bed”. it has an elegant mix of home comforts without being flashy and obtrusive. Ladies remember shoulders covered. I was drooling over the Louis Vuitton and Gucci latest collection. Or it may be the 24hour fitness centre that takes priority. It has an understated. offering authentic Chinese in an upbeat. also provides steam rooms.

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