- The reason there is a 'credit crunch' is because in the late 1980's the word 'Debt' was rebranded with the word 'Credit'.
- The public were then never given any training or advice as to how to use these powerful economic forces correctly, resulting in the current position. (Our banks will have made incredible levels of profit from the start).
- Being Financially Independant is always possible.
- People don't plan to fail, they fail to plan.
- The following should be taught to anyone who has any involvement with money. It should be part of the National Curriculem. Until it is I am available FOR FREE to come in to schools and deliver a tailored message.
- If anyone would like more information on this or arrange a time to receive a Free Consult and Financial Health Check, contact Tim or Jerry via 0161 228 6814.
- We are regulated by the FSA and underwritten by Friends Provident. See: www.genistar.net for more info.
Questions:
Do you know when you will be Financially Independent?
Do you have a written plan to get out of debt and move to becoming financially independent?
If you got sick or lost the ability to work tomorrow, how would you survive for the rest of your life?
Are you saving and investing for your retirement?
Do you have a pension? What is it worth? What will it be worth at maturity?
Do you know how much you need to have to live on in retirement?
Are you doing anything about it?
If you have answered NO to ANY of these would you consider coming to my new Weds at 6pm presentation? www.sunshine-studios.co.uk
Question:
If you have a car, do you insure it?
If you have a home and associated contents, do you insure them?
Are you as an income earner and potential breadwinner protected?
Think:
If you lost the ability to work, how would you afford to live for the rest of your life? Do you have any dependents? How would they afford to live?
Term Life Assurance and Critical Illness Cover can protect your and your family's future income. For a relatively small amount you can receive a cash lump sum to help you in the event of an accident or critical illness.
This figure could be used to help you enjoy your time, or live more comfortably. It is yours to spend or invest, it is designed to reduce the uncertainty of the future.
CLIENT: What if I have bad credit? I'll not be able to do this.
GENISTAR: NOT TRUE. We look for and help normal people with debts, mortgages, store cards, credit cards and loans. We can work around ccj's and bad payment
history's and defaults.
We are here to help you prepare for your future and give you the best chance to enjoy
your life.
I was asked recently:
You would receive training and education if you sat your school exams or driving test. You receive instructions when you buy a new electrical item. We will even read the washing instructions before washing a new expensive item. So why does nobody give sensible free accurate advice on how to save, spend or invest my pay packet?
My answer:
I explained that money is a deeply personal issue and human nature is such that we like thinking that we know best. However currently 52% of people have less than £3000 in savings in total.*
Combining; a floored education system not teaching or communicating effectively the points needed and the parent-child relationship not always being the most effective system for passing financial advice.
The traditional financial institutions do not want to give the information out for free, as it is their business, so the normal person on the street has not been given the chance to understand the global economy and will therefore, ere on the side of caution and go with what they know; and not give themselves the chance of financial freedom.
I explained what Genistar stands for and does for its clients and looked into this persons situation. We arranged the debts into a scheme that would pay them off in the shortest time whilst also now giving the person the security of knowing that should the ability to work be lost, a comfortable future is waiting.
I drew up and gave a series of instructions for this person to consider when allocating monies at the end of each month and am currently watching them reduce their debt burden and move towards a secure financial future.
note: I have added a class to the timetable which will give a presentation on these topics. Should anyone wish to discuss these matters in more detail in private please ask or contact reception.
* - source - Credit Action (www.creditaction.org.uk), Nov 2006
At the current rate of wealth creation:
1 Will be wealthy - net worth of £2.6m+
4 Will be financially independent of debt - net worth of £500,000-£2.5m
41 Will be working
54 Will be DEAD BROKE
Which category are you? Would you like to know how to improve your position?
For this example, imagine your net worth is the total of all of your assets, Savings, Investments, property.
Steps towards Financial Independence:
Step 1: Identify Debt payments, both fixed and revolving and reduce your monthly outgoings.
Step 2: Protect your family through the use of Term Life Assurance and Critical Illness Cover.
Step 3: Invest for the future.
Step 4: Increase your income.
Step 5: Own your own business
Four ways to earn income:
1: Employee: Income based position, with little control of your financial future.
2: Self-Employed: Owns a job, Dentist, Dr, Lawyer, Hairdresser.
3: Business Owner: Owns a system. Has others working for them. Potentially unlimited income.
4: Investor: Has money working for them. Enjoys complete freedom and lives the dream.
The Problem:
1: In 1995 the average UK house price was £50,930*
2: By the end of 2005 they had more than trebled to £158,745. An increase of 211%
3: Average wages have risen 54% in the same period.
4: House prices are at an all time high at over 6 times the average salary.
* Source National Building Society.
Get your mortgage working for you, example:
1. First mortgage £130,000 @ with repayments @ £983 / month for 20 years
(Original Loan APR 6.5%, 25 Yrs, Original Loan Amount £143,914, Current Market Value £180,000).
2. You have now accrued £20,000 of personal debt, costing £750 / month to service.
3. Your total monthly payments are £1,733.
4. Consolidate your capital repayment 1st mortgage and personal debts on a new capital repayment first mortgage.
5. Refinance at £150,000 for 25 Yrs at £1,025 / month for 25 Yrs at £1,077 / month.
6. This makes available £708 (from your previous £1,733 / month).
7. We suggest you add an amount per month towards repayment capital and further reduce your mortgage period and interest paid. We also suggest you Invest an amount per month. £403 at 6% for 15 Yrs = £116,188.
8. Keeping your monthly payments the same we can show you how to reduce your: mortgage period and save for your future.
9. Then we strongly suggest that you save and invest wisely as much money as you can for your future.
I've added some thoughts and topics, please look them up and or ask me.
- The ONLY rule of credit; pay it off in the shortest possible time.
- The single biggest asset your family has, is the breadwinner. Are they protected? Have they got Term Life Assurance.
- Term Life Assurance is the cheapest and most effective way of protecting the breadwinner and their future income. THIS IS THE ONLY ONE TO BUY.
- Buy Term and Invest the difference.
- Maximise the doubling periods in your 'Saving Schemes'.
- Compound Interest is a beautiful thing and can earn you a lot of money by being aware of it.
| Number Yrs |
2.00% | 4.00% | 8.00% |
| 0 | £10,000 |
£10,000 |
£10,000 |
| 9 | £20,000 | ||
| 18 |
£20,000 |
£40,000 | |
| 27 | £80,000 | ||
| 36 | £20,000 | £40,000 |
£160,000 |
This table shows how long it will take the original £10,000 to double at different rates of interest.
What rate of interest do you receive from your bank? 2%,4%,6%, 8%?
Would you like to know more about how to make your money double faster?
If you saved £100 / month @ 7% interest from the age:
25 yrs You would have - £264,012
26 yrs You would have - £245,051 - missing out on £18,961 in interest
30 yrs You would have - £181,156 - missing out on £82,856 in interest
40 yrs You would have - £81,479 - missing out on £182,533 in interest
By planning ahead you can have the secure future you want. It is also always still possible to change the direction of your financial future.
Saving as much as you can from a young age will reap dividends when you actually need the money. Take advantage of your Compound Interest and your Doubling Periods. The money you are missing out on could make the difference between a comfortable future and an uncomfortable one.
If I was a bank I might collect all my clients money (from their savings, charges and investments), invest it at a high rate of interest on the stock market and payout much lower rates of interest; keeping the difference between what the stock market tracks at and the rate agreed with my customers.
Test:
Find out what the stock market 'All Shares' have tracked at for the last ten or twenty years and compare the rates to the rates of interest offered by your bank.
Knowledge is Power - Ask me if you want more!
Genistar
www.genistar.net
Genistar aims to provide straight forward financial advice to Middle England. We can help create a plan to protect you and pay off your store cards, credit cards, loans, mortgages and life-debts. We accept any client with any financial, starting position. We can also forward plan to help secure your financial future for the unexpected twists and turns in store.
Regardless of your current position we can help. Bad credit and people who are caught up in it is our business. This and any information provided by me or Genistar is always free. Our clients never pay in any way for receiving advice or taking out policies.