Tuesday, January 18, 2011

Below is a flyer from Liquidity Finance, who can assist our clients obtain a fleet discount and car loans with competitive interest rates.
If you are interested, please don't hesitate to contact us on 02 92902777. Click here and a member of our team will get back to you,
With kind regards 

save thousands on vehicle prices
          low interest rates available
call now and let us help you save              ph 02 92902777
michael luca * ivan kaye * danny luu

Wednesday, January 12, 2011

Perfect time to Review Your Insurances

During our regular research review of various insurance providers, we have identified that there is considerable difference between the various insurance providers and some major providers are currently offering personal insurance at extremely competitive and low rates.

These low rates won’t be around forever as they are currently undertaking their review to increase their insurance rates in mid February.

If you have an existing insurance policy (Life/TPD, Income Protection or Trauma) you may be able to replace these insurances at a lower cost to create additional cash flow or if your insurance is held within super it will give you more money to invest in the market.

If you have an insurance policy that has been underwritten within the last 5 years you can potentially roll your insurance over without completing any additional medical forms.

Below is an example of a client whose insurance we re-structured in December;

Current Insurance

Life/TPD and Income Protection all held outside of super costing $5,644 per annum from their cash flow.

New Insurance

Life/TPD moved to inside super and all insurances moved to new provider at a total cost of $3,962 per annum. This reduced their premiums by 29% and their cash flow was increase as the Life/TPD insurance is now funded through their super.

If you would like a complimentary review of your personal insurances please contact 02 9262 3333 or click here.

Ark Informer December 2010 -The 2 year rollercoaster... but has the ride finished?

If you cast your mind back to just before Christmas two years ago the financial world appeared destined for the grave. Lehman Brothers had just collapsed, the Governments started taking on toxic assets and the Australian Government implemented a guarantee on deposits to restore confidence amongst the consumers.

Australian Interest Rates started falling but at nowhere near the rapid reduction that was seen in the United States and Europe. The word ‘sub-prime’ became an everyday conversation and it was later discovered that American Banks gave out NINJA loans (no income, no jobs or assets) to unsuspecting American citizens. This resulted in almost one in five Americans owning a home with more debt than the actual value of the house.
The Australian Market was down 52% and price to earnings ratio’s sitting at around 8 times (long term historical levels are 14.8).

That Christmas was a pretty nervous one for many investors and employees.

This Christmas holiday season paints a much brighter picture with the market recovering 46% and price to earnings ratios now sitting at closer to 13 times. We are currently living in a rising interest rate environment which demonstrates the power and resilience of our economy. Although our markets are still linked to the movements in the US, we now have other influences such as Asia and the emerging markets. The expectation is that the Australian economy will grow at 3.5 to 3.8% per cent next year and the resources boom is expected to continue for another 20 years (as announced by the RBA).
So are we still on the rollercoaster?

There are some more expected dips in light of recent financial system collapses in Ireland, Spain and Portugal and whilst Europe and US get back on the track but the positives seem to outweigh the negatives with the power economies of Asia providing great momentum for the world economy.
Based on this, it is suggested that you review your current investment portfolios in the new year to ensure you have allocations to the growing economies as opposed to those on a dip.
In our recent e-book, ‘Investing in Equities’, (click here to download) we explain our investment theory behind maintaining and increasing exposure to the market. This is the core strategy and it is employed to try to achieve long term capital growth, irrespective of the short term fluctuations in the market.

This strategy is validated based on the recent Russell and ASX report comparing 10 and 20 year performances of various asset classes. It showed year on year returns of between 8 and 11% per annum in both the Australian Residential Markets and Australian Share Market. (for more information click here)

We want to take this opportunity to wish you and your loved ones a happy christmas and a 2011 filled with health, wealth and wisdom.

The Ark Team  
Click here to Contact an Advisor

Good International Stocks

I went top an adviser briefing in Feb 2010 see http://www.arktotalwealth.com.au/gvi-market.aspx

He recommended the following international stocks... he was on the money with Nestle and Colgate!!

Nestle - View the full NSRGY http://www.wikinvest.com/wiki/NestleSince Feb 2010 share price has gone from $35 - $55 (57% increase)

Colgate – good branding – endorsed by dentists, 75% revenue in emerging markets http://www.wikinvest.com/stock/Colgate-palmolive_(KAR:COLG) Since Feb 2010 share price has gone from $42 - $92 (120% increase)

Telefonica (Spain), http://www.wikinvest.com/stock/Telefonica_SA_TEF) Since Feb 2010 share price has gone from $70 - $65 (7% decrease)

Exxon, Shell http://www.wikinvest.com/stock/Exxon_Mobil_(XOM) Since Feb 2010 share price has gone from $67 - $74 (10% increase)

What to look for in a Company

• Look to buy good quality businesses cheaply
• Either 1,2 or 3 in a space and is difficult to displace
• Transparent
• Good Point of Difference
• Regular and Increasing Dividends to Shareholders – generally outperform companies with low dividend yields re growth.
• Strong and Lazy Balance Sheets are good!!
• Grow earnings and Dividends over time
• Good Margins
• EBIT has consistent growth
• Strong Brand

Trend to Refinance your Loans in 2011

A national survey has found many investors seem to have made a new year's resolution to refinance their home loan this year.

A poll conducted by Australia's largest independently owned mortgage broker, Loan Market, found 54 per cent of brokers believe refinancing will dominate the home finance market this year, surpassing first home loans which dominated the past few years.

Australians traditionally are reluctant to change lenders, but the Reserve Bank of Australia (RBA) lift official interest rates up to 4.75 per cent during 2010, the banks lifting standard variable rates by even greater margins, plus moves to make it easier to switch banks have changed this trend.

"Homeowners on an average $400,000 mortgage can save up to $4,000 years if they can be bothered switching lenders to get a better home loan deal.

Michael Luca of Liquidity Finance says that there can be as much as a percentage point difference between the variable home mortgage rates currently on offer and people are start comparing rates.

Michael says that this is a good time to look at consolidating your debts, taking the opportunity to reduce debt on credit cards, which have interest rates often more than triple that of an average variable home loan.

If you would like a complimentary meeting to review your debt situation, and identify whether you can save money on restructuring or switching your loans, please contact Michael or Danny at Liquidity Finance on 92902777 or email http://www.blogger.com/goog_551273287

For more information see http://www.liquidityfinance.com.au/