$1 Million for Life
use low-cost, tax-effective ways to invest in shares
invest in residential and commercial property
maximise the performance of your superannuation
protect your investment plans and your lifestyle.
There are no get-rich-quick schemes or trading systems -- just practical steps almost anybody can take. $1 Million for Life gives you the tools to build enough wealth so you can start doing what you really want to do for the rest of your life. Ashley Ormond is a successful investor and former senior executive at major global finance and banking groups. He has degrees in economics, law and finance, and has been a director of several companies. He is the principal of Investing 101 Pty Ltd, which holds an Australian Financial Services licence, and lives in Sydney with his wife and two children.
$1 Million for Life
1.1 Life's great!
Let's take a snapshot of a typical Australian family. You and your partner, if you have one, are aged between 30 and 50. You have one or two kids in primary and/or high school. Family income is between $50 000 and $150 000 per annum, and you live in a nice house in the suburbs of a major Australian city.
You may have recently upgraded to a bigger house or completed some renovations - the house now has new appliances, kitchen or bathroom, a rumpus room or study, or perhaps a pool. Your house is double the size of the house you grew up in, but there are fewer people living in it. It always seems to be full of 'stuff' and you need all the space you have. You may even rent a storage shed somewhere to keep all the stuff you can't fit into the house. You may pay a cleaner, gardener or pool cleaner to help look after things because you are so busy. You may also pay for child care while you both go out to work so you can buy more 'stuff'.
There are a couple of cars sitting in the garage, and you plan to buy a car for each of the kids when they reach 18. One of your cars may be a four-wheel drive. You never take it off road and they cost a fortune to run, but it's okay because they're safer, aren't they?
Schooling is expensive, as one or more of the kids go to Catholic or private school. Even though you and your partner probably went to state schools when you were kids, you feel that standards have deteriorated since then and you can now afford private schools.
On top of school fees, there are all of those extras that seem to add up - books, uniforms, 'voluntary' building-fund donations, fundraisers, school trips, music lessons, private coaching. Then you're looking down the barrel at HECS/HELP (university fees) because it seems every kid in Australia wants to go to uni and study 'communications' (whatever that is!) because you don't want your kids to be burdened with university debts for the next 20 years, so you are aiming to help them out financially with the fees. Perhaps you are undertaking part-time study in order to keep up in your field. The courses are expensive but you're getting a tax deduction for the cost, and they may lead to more income down the track, so it's okay.
You have accumulated two or more computers - it seems you need to buy a new one every couple of years just to keep up with the endless upgrades in operating systems and software you need to run. Or the old ones died due to viruses. The kids need their own computers to do their homework. Then there are PlayStations, Xboxes, Game Boys and the like, plus all the games at $80 a pop!
Everyone in the family has a mobile phone and the phone bills could finance a small country. It seems everybody needs their own phone these days. There are 20 million mobile phones in Australia - that's one for each person across the entire country. You can't imagine what they're all saying to each other that is so earth-shattering or interesting, but you couldn't dream of life without your mobile.
You have lots of audio-visual and music gear - plasma TVs, DVD players, music players, and a growing bank of DVDs because it's more convenient and cheaper than renting them all the time. You seem to have somehow accumulated three TVs (or more). It seems that cable TV is a necessity due to the low quality and variety of free-to-air TV - so you tell yourself that it's worth the $60 or so per month.
You take holidays to the coast or snow every few years, plus shorter trips on weekends and an occasional trip overseas. When you were a child the holidays were probably limited to the annual trip hauling a caravan up to Ettalong, Lakes Entrance, Surfers Paradise or Victor Harbour. None of that for this family - the kids would revolt!
Then there's the dog or cat and all the costs associated with a pet - food, kennelling when you go away, trips to the vet, tablets