FIX OUR CITY CAMPAIGN

Fix Our City was formed in August 2009 in response to the Hunter Development Corporation’s Newcastle City Centre Renewal Report.

Their objective is to ensure key recommendations within the report are implemented in full by maintaining a public profileas well as maintain pressure on state and federal politicians to secure funding for the region. 


This Thursday June 3rd 2010 at 5pm they have organised a rally at Town Hall.  I would urge anyone who feels that it is time for Newcastle to move forward to attend.  I believe that by implementing the recommendations we will have greater connectivity in our city, greater investment and job creation. It is time for the people of Newcastle to take a stand!

Home to 9% of the state's population (620,000), the Hunter region is the largest regional centre in Australia, yet it receives less than half of this figure in NSW government funding.

Water for Life - Healthy Living

Water - a vital nutrient

The human body can last weeks without food, but only days without water. The body is made up of 55–75 per cent water. Water forms the basis of blood, digestive juices, urine and perspiration and is contained in lean muscle, fat and bones.

As the body can’t store water, we need fresh supplies every day to make up for losses from lungs, skin, urine and faeces. The amount we need depends on our metabolism, the weather, the food we eat and our activity levels.

Facts about water in our bodies

• Body water is higher in men than in women and falls in both with age.
• Most mature adults lose about 2.5–3 litres of water per day. Water loss may be more in hot weather and with prolonged exercise.
• Elderly people lose about two litres per day.
• An air traveller can lose approximately 1.5 litres of water during a three-hour flight.
• Water loss needs to be replaced.
• Foods provide about one litre of fluid and the remainder must be obtained from drinks.
• Water is needed for most body functions
• Water is needed to:
• Maintain the health and integrity of every cell in the body.
• Keep the bloodstream liquid enough to flow through blood vessels.
• Help eliminate the by products of the body’s metabolism, excess electrolytes, for example sodium and potassium, and urea which is a waste product formed through the processing of dietary protein.
• Regulate body temperature through sweating.
• Keep mucous membranes moist, such as those of the lungs and mouth.
• Lubricate and cushion joints.
• Reduce the risk of cystitis by keeping the bladder clear of bacteria.
• Aid digestion and prevent constipation.
• Work as a moisturiser to improve the skin’s texture and appearance.
• Carry nutrients and oxygen to cells.
• Serve as a shock absorber inside the eyes, spinal cord and in the amniotic sac surrounding the foetus in pregnancy.

Dehydration
Dehydration occurs when the water content of the body is too low. This is easily fixed by increasing fluid intake. Symptoms of dehydration include headaches, lethargy, mood changes and slow responses, dry nasal passages, dry or cracked lips, dark-coloured urine, weakness, tiredness, confusion and hallucinations. Eventually urination stops, the kidneys fail and the body can’t remove toxic waste products. In extreme cases, this may result in death.
 
Recommended daily fluids
Approximately six to eight glasses (at least 150ml each) of a variety of fluids can be consumed each day. More than eight glasses may be needed for physically active people, children, people in hot or humid environments, and breastfeeding women (who need an extra 750–1,000ml per day). Less water may be needed for sedentary people, older people, people in a cold environment or people who eat a lot of high water content foods.

Are you ready for tax time?

With the end of the financial year just around the corner, now is the time to make sure your financial affairs are in order.  There are a number of smart strategies you could consider to help you streamline you finances and minimise your personal tax liability.

Insurance Premiums - Some insurance premiums, such as those for income protection are generally tax deductible as an expense incurred in earning your income.

Work Related Expenses - Don't forget to keep any receipts for work related expenses such as uniforms, training courses and learning materials, as these may be deductible for tax purposes.

Prepay Margin Loan Interest - If you have a margin loan, you can prepay up to 12 months interest in advance (subject to prepayment rules). You can claim a tax deduction for the prepayment in this financial year, further reducing your taxable income.

Tax Deductions for Investment Expenses - Expenses you incur while earning assessable investment income may be a tax deductible.  These expenses can include fees for financial advice, account keeping and management fees and interest payments on margin loans.  Claiming a tax deduction for these expenses could reduce your assessable income for the financial year, although not all expenses are immediately deductible. your tax adviser can help your determine what can be claimed.

Review Ownership Structure of Investments - Transferring the ownership of your investments to your self managed super fund (if your fund accepts this) or to your spouse, could reduce the tax you pay on future investment income and capital gains.  However, these transfers have capital gains tax implications so you should seek tax and legal advice from a qualified professional before proceeding.

Managing Capital Gains - It's important to assess if you have made any capital gains or losses from your investments.  The most common way you make a capital gain (or capital loss) is by selling assets such as real estate, shares or managed fund investments.  Managed funds also distribute capital gains which you must report. The Australian capital gains tax system is quite complex so it's important to consult with your tax adviser.

Contributions to Super - Contributing to your super can be one of the most tax effective ways of building your retirement savings.  However you need to be extra careful not to exceed your concessional contributions cap and incur excess tax.

The government limits how much you can contribute to super in any one year.  The annual contributions caps as of 1 July 2009 until 30 June 2012 are:

• $25,000 per year for pre-tax contributions (concessional) if you are under age 50 on the last day of the financial year.  If you're aged 50 or over on the last day of the financial year, a transitional cap of $50,000 per financial year applies until 30 June 2012 (commencing the year you turn 50).
• $150,000 per year for after tax contributions (non concessional) or $450,000 over a three year period if you are under 65 in the financial year the contributions are made.

It's important to keep your financial planner informed about any contributions you make so they can ensure you don't exceed these caps.  Contributions made over these caps are taxed at a hefty 46.5%.

If you currently have a salary sacrifice or transition to retirement strategy in place, or are self-employed and make personal deductible super contributions, you should speak to your financial planner to discuss whether you can boost your contributions this financial year or review your current arrangement.

If you would like to know more about which end of year tax strategies may be appropriate for you, you should contact your financial adviser.  If you dont' have a financial adviser you can call our office on 02 4925 6125 Monday to Friday.  In conjunction with your tax adviser, we can work with you to ensure you are taking advantage of any available tax concessions and that your investments are structured in the most appropriate way.

Disclaimer: This general advice has been prepared without taking into account your particular financial needs,, circumstances or objectives, and is based on Financial Wisdom Limited's understanding of current law as at 14 April 2010.  While every effort has been made to ensure the accuracy of this information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. We are not tax agents and this article is not intended to be taken as taxation advice.

TIPS FOR SUCCESSFUL INVESTING

Article by Anthony Brodie Dip FP, AIMM, JP  Certified Financial Planner

1. Know what your goals/objectives are:
The first thing to ask yourself is, what are you trying to achieve?  This will have a vital bearing on the types of investments you should choose.  Are you investing to increase your income now, or is your aim to achieve capital accumulation for the future?  Or maybe something in between?

 2. Know your time frame:
Are you investing to buy a home in 2 or 3 years, or do you want to build up assets for your retirement over 10 to 20 years?  The assets that a prudent investor would select as short-term investments are quite different from those that would be selected for long-term investments.

The long term investor can take risk of having more funds invested in volatile investments like shares, because any downturn will in time have an upswing.  However, the short term investor who invested ins shares may be faced with a depressed market at precisely the time when the funds are needed.  Generally speaking, to get the best results you should aim to invest for the medium to long term if you you are investing in growth investments such as shares and property.

3. Know your risk tolerance:
It's no good choosing high risk/high return investments if you are going to lie awake at night worrying about them.  Be realistic and take a sensible approach based on your goals and time frame/s.  Do not expect a high return if you have all your funds invested in mostly fixed interest and cash.  This is one area where real assistance is required.

4. Diversify:
Don't put all your eggs into one basket, in other words diversify your investments by spreading them between an appropriate number of experience investment managers and the major asset classes (ie shares, property, cash, short term securities, fixed interest securities).  Usually all markets don't move in the same way at the same time, so if one asset class experiences a decline, chances are that the other classes will generally maintain their value.

5. Develop a strategy:
If an investment strategy has been based on quality advice, it will be appropriate for your circumstances for many years and won't need to be altered if market conditions change.  A common mistake is to forget about the strategy when market conditions change, that is some investors seeing the share market moving up are tempted to move all their money into shares.  If shares fall they then want to sell.  These investors try to time their investments to match turning points in the market and very often they only achieve the opposite.  Investors who sell when the market falls often only succeed in crystallising a loss.  Because they are out of the market chances are that they may miss the next rally. There is an old saying "It's not timing in the market that matters, but time in the market that counts".

6. Always seek good advice:
Always talk to an experienced and qualified Financial Planner about an investment strategy that will suit your circumstances.  The time he spends in reviewing your financial objectives, discussing your options and developing your investment strategy will probably be the best investment you ever make. 

Disclaimer: This article is no substitute for financial or investment advice and should not be read as such nor relied upon as such. You should seek your own professional advice tailored to your individual investment objectives, financial situation and particular needs.

If you would like further information or would like to arrange an appointment with Anthony Brodie by calling mobile 0425 234 234.

THE PITFALL OF NOT HAVING A PROPER WILL

Article by Chris Ryan of Chris Ryan Legal
Level 1 14 Church Street, Newcastle, NSW 2300

DISCLAIMER: This article is no substitute for legal advice and should not be read as such.  A will should only be prepared by a qualified solicitor after taking instructions regarding your own personal situation.

What is a Will?
A will is a legal document that sets out what happens to your real and personal property when you die.
To be valid it must satisfy certain requirements according to legislation and it should be tailored to your own personal circumstances.

Recently I bought 5 business shirts from a department store. The shirts were made by 3 different manufacturers. The sizes and fit were different for each manufacturer.  I used to think that size 44 was size 44 and that was that!  One brand I had bought previously and those shirts fit fine, the other's didn't.

In my laziness I didn't try the other shirts on, nor did I ask the salesperson for help, I thought I knew best.  Had I asked for help and tried the shirts before I bought them, I would have saved time in the long run and received a proper fit, first time.

There are no guarantees that the sizing or style of shirts won’t have changed the next time I buy a bunch of shirts. The risk of cutting corners with the shirts was not that great since the downside was either a second trip to the store for an exchange or putting up with a shirt that didn’t quite fit right. The risk of not getting your Will right is much more significant and it is your family which pays the price.

What happens when there is no Will?
If you die without a Will you die wholly intestate. If you have an otherwise valid Will and a gift in your Will fails, you may die partially intestate.

An intestate estate is distributed according to a regime set out in legislation. Under this formula, the entitlement to estate property works its way down from a surviving spouse through a chain of blood relations and if there are no relatives, the State of New South Wales gets it.

I recently had an inquiry from a relative by marriage of a 96 year old lady who passed away after all her beneficiaries and other blood relatives had died- she therefore died intestate and the State reaped the win fall as there were no other qualified beneficiaries.

No one need die wholly or partially intestate. A properly drafted Will which is revised at proper intervals can ensure that people or organisations of your choosing can benefit from your wealth.

Research has indicated that about 40% of Australian adults do not have a Will.

Why have a Will?

• To take control over how your Estate is distributed after you die.

• To avoid unintended beneficiaries receiving a share of your Estate (such as a former spouse, estranged child, or in some cases even the Government).

• To properly provide for your dependents (particularly if you have dependants from different relationships).

• To control the proportion of the distribution of your Estate (for example if you have given significant financial assistance to one of your children in your lifetime and believe that this advance gift should be taken into account with respect to the gifts to your children in your Will).

• You can nominate a guardian for your children.

• You can create a trust for your heirs so that your Estate can provide an income over time.

• Exploit certain tax advantages.

• You can make a gift to your Church or favourite charity.

What about a Will Kit?
Let me address the issue of Will Kits. A properly completed D.I.Y Will contained in the approved kits is perfectly valid but is it going to do what you want it to do? Sometimes what we think we want is not always practical, possible or desirable. What a Will kit won’t do:

• Advise you of all your options;

• Answer your questions in a way that makes sense and is relevant to you;

• Explain the operation of your Will so that you understand it properly;

• Help you choose an executor;

• Explain issues concerning superannuation and asset protection;

• Raise other relevant and significant issues which may not directly affect the operation of your Will, but may still have a significant impact on your family’s financial welfare after you die.

In extreme situations not having a proper Will can result in hardship to family members, significant reduction or wasting of assets and significant litigation against your estate.

The majority of Wills I prepare for my clients are what lawyers call “simple” Wills. These Wills are “simple” because the net Estate (after payment of debts) is left to one or more persons equally (sometimes a simple trust might be created for infant beneficiaries). This format, as it turns out, is satisfactory in most circumstances. All of my clients though who end up signing a simple Will after going through the process of considering their personal circumstances where I discuss with them the various issues which may arise and what their objectives are for their Will. Often this process involves conferring with other professional advisers (for example a financial planner and/or accountant). Sometimes a simple Will format is inappropriate. At the end of the process my goal is to have my clients understand the way their Will works and that this understanding gives them comfort and empowerment that their family, friends, church or charity will be properly provided for in accordance with their wishes after they die.

Getting back to the shirts for a moment, think of getting a qualified solicitor to prepare your Will as not just asking for help but going one better and getting the tailor involved- you get something which fits your needs.

There is no reason why all adults should not have a valid Will. If you don’t have a Will, there is no reason to wait- the best time is now. If you have a trusted family solicitor I encourage you to speak to them about either preparing or updating you Will if you haven’t done so in the last 4-5 years. Getting a Will prepared is as easy as talking with a solicitor.

If you would like to discuss with me any issue surrounding the making of a Will or like to have your existing Will reviewed, please do not hesitate to call me for a confidential obligation free chat on 0406913100.

CANCER - Australia's biggest killer

1 in 2 men and 1 in 3 women will be diagnosed with some form of cancer in their lifetime.

What is Cancer?
Cancer is a disease of the body's cells.  A healthy cell will grow and multiply in a way that is controlled according to it's genetic blueprint but some cells can change and that control can be lost.  The word cancer is given to a collection of these cells.

A Personal Story by Christie Birch

Just about everyone I know has been affected by cancer in some way.  In my own experience our family has been affected more than once.

My Mother was diagnosed with Hodgkin's Lymphoma when she was just 26 years old.  She had 3 kids under the age of 8, had never smoked and lived a pretty healthy lifestyle.  She spent nearly 12 months travelling to and from Sydney for treatment as there were no facilities here in Newcastle.  She was in fourth stage which meant very little to me as a kid, I just knew that the doctor's were going to make her better because that is what doctors do.  In reality my Mum was very ill, the cancer had spread and the odds for long term survival were not good.  Fortunately the doctor's worked their miracles and Mum put up the fight for her life and in her words there was some divine intervention.  26 years later she is still cancer free and has seen the marriage of her kids and the births of her grand kids.

Shortly after Mum's recovery my Grandfather was diagnosed with stomach cancer. Doctor's said that the cancer had gone to far and that there was nothing they could do.  They gave him 12 months to live but only 3 weeks after his diagnosis at the age of 61 he died.  He was one of three brothers who all died before the age of 62 of cancer.

During my highschool years my best friend's brother was diagnosed with testicular cancer at age 15.  Due to the embaressing nature of his symptoms he never sought treatment until the size of the tumour became physically obvious.  By the time he saw a doctor the cancer had spread to his lungs, his stomach and his kidneys.  He was given only a 5% chance of surviving beyond 5 years.  He started aggresive treatment and everyone started praying for a miracle.  He went into remission and is now aged 34 but still lives with the constant fear that the cancer could return at any time.

Next my family suffered the loss of my Uncle and my other Grandfather both succumbing to prostate cancer.  Shortly after this my father inlaw was diagnosed with prostate cancer also.  He decided to not take any chances, they had detected it early and he opted to have his prostate removed.  There was no evidence of cancer anywhere else in his body and so is living proof that early detection works.

Yesterday my Husband and I received a phone call from his Mother.  She had a skin cancer removed from her nose a few months ago and had a follow up biopsy done last week.  The news is not good, they didn't get all of the cancer and she now faces the possibility that the cancer has gone too far.  So we go back to our prayers that have helped in the past and pray that the news will be good.

I could go on and on with the names of friends who have been affected and those who we have lost and I am sure that as many of you read this you will take a moment to remember and honour those whom you know have been affected by cancer.

THERE IS GOOD NEWS......in Australia today 60% of all cancer diagnosis will be effectively treated.

1. Live a healthy lifestyle - prevention is better than a cure so don't smoke, avoid too much alcohol, eat a healthy diet, get some exercise and cover up when you are out in the sun.
2. Check yourself - be aware of any changes in your body and get to the doctor's as soon as possible if you notice anything unusual.  Early detection is paramount to your survival rate.
3. Support research - medical research costs millions of dollars every year.  There are a number of great organisations that raise money for this purpose.  Please support by giving what you can, you never know it just might be you or your loved ones that will be saved by a break through!

AUSTRALIA'S BIGGEST MORNING TEA
May 7th 2010 from 9.30am
Lifestyle House Boardroom - 671 Hunter Street Newcastle
RSVP by May 5th 2010

BUDGETING BASICS

Budgeting, it isn't rocket science but for some people it may as well be.  I am amazed at the number of people I come across that have no money sense.  They earn really good money but just can't stay ahead of the game and are often struggling with large debt.  Then there are the people I meet who don't earn as much but have great financial management skills.

So what is there secret, it is a simple formula  and will work for everyone - spend less than you earn!

When people begin to budget they usually start wrong and so the budget never lasts.  The first step in budgeting should be to keep a money diary for at least 4 weeks.  During this time you need to write in your money diary everytime you make a purchase or pay a bill, right down to the cent.

By keeping a diary like this you will begin to create a picture of your spending habits.  Everyone has heard someone say, "I just don't know where my money goes..." well now you will find out.  Once you see your spending patterns you can begin to create a budget. 

The next step is to seperate your spending entries into WANTS & NEEDS.  A need is something that you or your family has to have in order to live, such as food, clothing, shelter, water etc..you get the picture.  A want is all the other things that you spend your money on, these are more lifestyle items such as a boat, electrical appliances, holidays etc.

Once you have completed this step you will see where you can cut back on your spending.  Even if you only can cut back by $5 a day that adds up to more than $1,800 a year.  Paying off an extra $35 a week on a $200,000, 25 year mortgage will reduce the amount of interest paid over the term by around $12,830.  As little a $20 a week invested with a return of around 6% and you will have $15,000 in 10 years.

The most important thing to do now is to start, the sooner you start the sooner you will be in front.
For more information and tips visit Understanding Money.