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Futuro Forum | Bowral 2012 Barry Wyatt – Building Lifeboats

Futuro Forum | Bowral 2012 Barry Wyatt – Building Lifeboats. Building Lifeboats . Barry Wyatt Director, Sales. Protection from the Blind Side. It all starts with belief. Industry funds – opportunity or threat?. Annual fees based on $50,000 balance. Average top 10 industry funds.

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Futuro Forum | Bowral 2012 Barry Wyatt – Building Lifeboats

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  1. Futuro Forum | Bowral 2012 Barry Wyatt – Building Lifeboats

  2. Building Lifeboats Barry Wyatt Director, Sales

  3. Protection from the Blind Side

  4. It all starts with belief

  5. Industry funds – opportunity or threat? Annual fees based on $50,000 balance Average top 10 industry funds AMP Flexible Super - Select AMP Flexible Super - Core

  6. The value of advice Male 49 next birthday $500,000 Sum Insured, $250,000 Trauma Rider

  7. What have we learnt? 1,809 days

  8. Irrational behaviour

  9. Investor behaviours Loss Aversion Cognitive impairment 418 + (9a² - 72) = xn³ e = mc² Retail Price Anchoring Eeny, meeny, miny, mo OUR Price $1,200 $999

  10. Lessons from the last 1,809 days “Security is what people value most and expect from us.”

  11. Investing over the next 25 years I have seen the next 25 years. It ain’t pretty

  12. The last 25 years September 11 2nd Gulf War Superannuation 33,000 1st Gulf War Dot com bubble Dawn of the Information Age S & L crisis 1987 crash GFC Pyramid collapseRecession Asian Financial Crisis Sovereign debt problems Tiananmen square 4,060 Russian debt default Fall of Berlin Wall 700% growth 9% p.a. LTCM Break up Soviet Union

  13. Picture tomorrow At 70 years At 95 years Now

  14. Barry’s retirement plan

  15. Retirement risks Sequencing risk Market risk Inflation risk Longevity risk Emotional risk

  16. Market risk -Australian sharemarket 1960 – 2011 Between 1993 and 2007 - 2 negative years Source: Bloomberg, AXA. All Ordinaries Accumulation Index Yearly data from December 1960 to December 2009

  17. Market risk -Australian sharemarket 1960 – 2011 Between 1970 and 1984 - 6 negative years Source: Bloomberg, AXA. All Ordinaries Accumulation Index Yearly data from December 1960 to December 2009

  18. Sequencing risk: Retirement saving Starting value $100,000 Retirement saving - value after 25 years Note: If $100,000 increased in value by 8% pa it would be worth $684,848 after 25 years

  19. Sequencing risk: Retirement spending Starting value $684,848Income 5% increasing by 3% p.a. inflation Retirement spending - value after 16 years ‘The flaw of averages’

  20. Mental accounting

  21. Mental accounting helping clients to start investing again North Platform

  22. Mental accounting – conversion to retirement Superannuation plan Contributions & dividends Tax effective savings

  23. Mental accounting – conversion to retirement Superannuation plan Dividends Contributions Tax effective savings

  24. Mental accounting – retirement phase Retirement income strategy

  25. 40/30/20/10 Retirement income strategy North Allocated Pension $500,000 $100,000 $200,000 $150,000 Income $50,000 Income Income Income $ 10,000 $ 15,000 = $ 40,000 $ 15,000

  26. I dream in black and white Belief Ignite the passion Ooze it See the people Choose your attitude

  27. It starts with belief and ends with attitude “That’s fantastic, these are my favourite conditions!” Vinnie JonesActor & ex-professional footballer

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