Planning for the future an approach to financial readiness
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Planning for the Future An approach to financial readiness. With George Karakatsanis ‘General Practice Queensland’ March 3, 2011. General Disclaimer.

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Planning for the future an approach to financial readiness

Planning for the Future An approach to financial readiness

With George Karakatsanis

‘General Practice Queensland’ March 3, 2011

General disclaimer

General Disclaimer

This presentation is provided for general information purposes only and is not intended as an offer to enter into any transaction. This information contained in it is not necessarily complete and its accuracy can not be guaranteed. We have prepared this presentation without consideration of the investment objectives, financial situation or particular needs of any individual investor.

Before a client makes an investment decision, a client should, with or without RBS Morgans' assistance, consider whether any advice contained in the presentation is appropriate in light of their particular investment needs, objectives and financial circumstances. It is unreasonable to rely on any recommendation without first having spoken to your adviser for a personal recommendation.

The information contained in this presentation has been taken from sources believed to be reliable. RBS Morgans Limited does not represent that the information is accurate or complete and it should not be relied on as such. Any opinions expressed reflect RBS Morgans' judgment at this date and are subject to change. RBS Morgans and/or its affiliated companies may make markets in the securities discussed. Further RBS Morgans and/or its affiliated companies and/or their employees from time to time may hold shares, options, rights and/or warrants on any issue included in this presentation and may, as principal or agent, sell such securities.

The Directors of RBS Morgans advise that they and persons associated with them may have an interest in the above securities and that they may earn brokerage, commissions, fees and other benefits and advantages, whether pecuniary or not and whether direct or indirect, in connection with the making of a recommendation or a dealing by a client in these securities, and which may reasonably be expected to be capable of having an influence in the making of any recommendation, and that some or all of our representatives may be remunerated wholly or partly by way of commission.

The presentation is proprietary to RBS Morgans Limited and may not be disclosed to any third party or used for any other purpose without the prior written consent of RBS Morgans.

RBS Morgans Limited (ABN 49 010 669 726 AFSL 235410) A Participant of ASX GroupPrincipal Office: Level 29, Riverside Centre, 123 Eagle Street, Brisbane QLD 4000

Today s outline

Today’s Outline

Part 1

  • Road to Financial Freedom

  • Wealth Protection

  • Wealth Creation

    Part 2

  • Opportunities & Smart Investing

  • Top 5 – ‘RBS Morgans Private Garage’

  • Questions

The road to financial freedom

The Road to Financial Freedom

Stages of life

Stages of life

Risk v reward

Risk v Reward

Planning for the future

Planning for the future

  • How important is this to you?

  • What plan do you have?

  • Is the plan working?

  • Who is your financial guide?

Financial advice

Financial Advice

Who has:

  • An Accountant?

  • A Financial Adviser?

  • Who values Financial Advice?

  • Who relies on their own judgment?

Financial advice important

Financial Advice – Important?

  • A large % of people fail to make the right decisions when buying and selling assets, looking for tax deductions, protecting and growing their wealth.

  • The majority of people fail to plan and therefore plan to fail.

  • Most of us use emotion to make decisions (eg. Our home, car)

Planning for a better financial future

Planning for a better financial future

Key Elements

  • Wealth Protection

  • Wealth Creation

Wealth protection

Wealth Protection

Your most important asset

Your most important asset?

Health & Income!

Total income for earned over 40 years (currently average salary of $60,000 p.a.) will equate to over $5.0 million worth of income.

Total income for earned over 40 years (currently average salary of $90,000 p.a.) will equate to over $7.6 million worth of income.

*taking into account 3.5% salary increase per annum

Income protection

Income Protection

  • Who is covered for the un-expected?

  • Who has been personally effected or knows of someone effected by an accident or illness?

  • Your income stops today – what’s the next step?

  • IP is tax deductible!

Estate planning

Estate Planning

  • Wills

  • Enduring Power of Attorney

  • Testamentary Trusts

    *People that fail to plan their estate planning can lose significant amounts of assets and cause further pain for family loved ones.

Wealth creation

Wealth Creation



  • Which property?

  • Mostly for lifestyle?

  • Is it an investment?

  • How much should you pay?

  • Where should you buy?

  • Where is the most potential capital growth?

  • Who is afraid to borrow money from the bank?



  • How much do you need in retirement? What’s the magic number?

  • Person earns $60,000; employer pays SG of 9% per annum; over 40 years of employment; with 6% return p.a.

  • Approx. $1.0 million at age 65 (or $112,000 in today’s $)

  • Add an extra 5% of your own savings into your super plan p.a?

  • Grows to approx. $1.5 million

  • Superannuation provides you tax free income in retirement!

Be super smart

Be Super Smart!

Smart ways to invest your superannuation:

  • Managed Super Funds – smaller amounts – can be expensive

  • Super Wrap - $25,000 to $300,000

  • Self managed super fund (SMSF) - $300,000 +

    More control, cost effective, value & better investment returns

    Which Super Plan is best for you?

Direct shares

Direct Shares

  • Who has bought shares before?

  • How was the investment experience? Good, bad?

  • Which shares should you buy?

  • Shares are risky right?

  • Franked dividends, companies pay your tax for you?

Recent floats

Recent Floats

  • QR National – largest rail freight business in Australia

  • Buffett – reduced emissions, more efficient and effective transport

  • Floated issue price $2.45 vs current price $3.20

  • Capital growth so far >31%

So let s consider the opportunities

So let’s consider the opportunities…

Smart investing

Smart Investing…

Cash is only a very short term investment!


Investing 101

Investing 101

We look for when we invest:

  • Strong balance sheets

  • Strong Management

  • Dominant Market Share

  • Earnings Stability with good ROE

  • Low Risk

  • Value

Top 5 companies rbs morgans private garage investment view bullish

Top 5 Companies‘RBS Morgans Private Garage’Investment View - Bullish

5 german chauffeur drive

5. German chauffeur drive

BMW 760 iL

5 newcrest mining ltd

5. Newcrest Mining Ltd

  • Australia’s largest gold producer

  • World top gold mining company

  • Low cost, large reserves, long life

  • Market Cap $29 billion

  • Earnings growth 20% + for 2011E

  • NPAT $1.22 billion

  • Balance sheet strong – CASH

  • ROE > 26%

  • Defensive & Inflation Hedge

5 newcrest bmw 760il

5. Newcrest – BMW 760iL

  • Luxurious & Valuable

  • Safe

  • Cost efficient

  • Preservation of capital with solid growth

4 drive yourself chop top

4. Drive yourself chop-top

Bentley Continental GTC

4 anz banking group

4. ANZ Banking Group

  • Top Big 4 Australian Bank

  • Market Cap A$61 billion

  • NPAT A$ 5.8 billion FY2011E

  • Dividend A$ 1.47 cents (fully franked) FY2011E

  • ROE 16% FY2011 / Solid earnings growth forecast

  • Fundamentally - much cheaper than CBA & Westpac

  • Access to Asian growth expansion

  • Projected gross return 8.00%+ FY2011

4 anz bank bentley continental gtc

4. ANZ Bank – Bentley Continental GTC

  • Daily Necessity

  • Rewarding

  • Old friends

  • Reliable & Growing

3 essential aussie muscle

1973 Ford Falcon GTHO Phase III

3. Essential Aussie Muscle

3 woodside petroleum

3. Woodside Petroleum

  • Tier 1 assets in Oil & Gas

  • Transformation to cleaner energy

  • Solid cash flows & balance sheet

  • Market Cap A$33 billion

  • NPAT A$1.4 billion FY2011F

  • Takeover Candidate

  • 94% of construction risk completed

  • Well positioned to capture Asian demand

3 woodside petroleum ford gtho phase iii

Classic – Australia’s heart

Finest Quality - well put-together

Large demand and limited supply

3. Woodside Petroleum – Ford GTHO Phase III

2 1970s car of love

2. 1970s car of love

1971 Dino 246 GT

2 alumina

2. Alumina

  • Bulk commodity in very tight supply - BAUXITE

  • Strong balance sheet

  • Change in structural pricing

  • Major capex spend completed

  • Market Cap A$ 5.8 billion

  • NPAT A$246 million FY2011F

  • Cyclical leverage

  • # 1 player globally - potential corporate action

2 alumina dino 246 gt

2. Alumina – Dino 246 GT

  • Leading operations

  • Quality pays

  • Potential to exceed performance

  • Future values expected to rise

1 queens street tractor range rover vogue

1. Queens Street Tractor – Range Rover Vogue

Range Rover Vogue. Mods by NCE.

1 mineral resources ltd

1. Mineral Resources Ltd

  • Diversified mining services specialist

  • Record crushing iron ore

  • Quality management

  • Solid cash flows with $170 million cash

  • Market Cap A$2.1 billion

  • NPAT A$145 million (2011F)

  • Excellent ROE 30% FY2011

  • Exceptional future earnings growth

1 mineral resources queen street tractor

Strategic & competitive


Exceptional performance

Growing strongly

1. Mineral Resources – Queen Street Tractor

Our investment focus ideal market sectors

Our Investment FocusIdeal Market Sectors

Key sectors

Key Sectors

  • Gold

  • Resources

  • Banks

  • Mining Services

    Investment View – Overweight/Long

Plan to succeed

Plan to Succeed

Obligation Free Portfolio & Super Review

worth $660 incl. GST

Offer valid only until Thursday 7th of April 2010 no obligation confidential booking with: George Karakatsanis at RBS Morgans Milton office

< Please refer to your RBS Morgans pack for details >

Helping investors since 1937

Helping Investors since 1937

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  • Wealth Creation - Equities, Warrants, Options, Floats

  • Financial Planning (Holistic wealth management)

  • Self Managed Super Funds (SMSFs)

  • Superannuation & Retirement specialists

  • Wealth protection and business succession (Life insurance, Trauma, Income Protection, Key Person)

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