Most of us have a wide range of tasks we have to do in normal week.  It might study or reading if we are are student.  It might be marking reports if we are a teacher.

Once I believed that the use of  Super Learning Music was limited to education.

But once I realized that whenever I wanted a calm, incisive, clear-thinking mind, was the time for Super Learning Music.

For example – one of my other businesses about Business Building & Coaching.  That site is Townsville Business Coach.

I was working on building some Yellow Pages adverts for clients – and I needed to think clearly and at several different levels.  Playing the music eased me into a relaxed alpha state – the copy just flowed.

I play it while I am driving, and when I arrive I now notice how calm and imperturbable I feel.

The key to successful use is to play it at a level just loud enough to hear.

You can purchase this music either on CD or in MP3.  MP3 is more and more popular as it costs less, is immediately delivered, and is easy.  The CD is great as a gift, or as a back-up.  Sadly, sometimes MP3 players die!

Cheers

James

Fixed vs Variable – the Great Debate

Fixed rate home loans

Generally people view fixed rate home loans as a safe but rigid option when looking for surety in terms of monthly commitment, but with flexible new products available, and interest rates at their lowest levels in 7 years, fixed rate loans are a popular discussion topic.

1. Fixed rate home loans now have the flexibility to allow extra repayments and include redraw facilities (some lenders).

2. A fixed rate home loan will give you surety about your monthly commitment in terms of the home loan repayment and are a great option for those who require a carefully managed budget – knowing exactly how much you need to repay means you can plan accordingly and gives you a degree of certainty and security.

3. Choosing the right fixed rate option and term which can be between one and ten years. The most popular fixed-rate loan term is three years.

Variable rate home loans

Variable rate home loans allow flexibility in terms of rates and repayment.

1. Variable rate loans cover the market in terms of features and benefits:

a. Offset products with savings account and credit cards

b. Line of credit products

c. Honeymoon offers

d. Greater overall discounts for higher loan amounts

2. The risk of variable rates is that in an increasing interest rate market the increase in rate will result in an
increase in the monthly repayment.

3. For budget conscious you a higher rate of interest needs to be factored in to ensure affordability.

Key statistics

RBA data illustrates some of the trends in terms of fixed and variable rates:

1. 83% of the time borrowers would have been better off in basic variable rate products than 3 year fixed rate products.

2. 96% of the time borrowers would have been better off with variable rate products when compared to traditional banks 3 year fixed rate products.

3. Borrowers have not been particularly good at picking the best time to fix their rates with peaks in fixed rate approvals often occurring at the worst possible times.

So…What should I do?

Simply put, there is no one right answer for everyone - Your particular circumstance will ultimately determine the options; and integrating this decision into your overall plan is vitally important.

We strongly recommend discussing this key decision with one of Doctors Wealth’s financial advisers, in combination with one of Doctors Wealth’s mortgage specialists to ensure all key aspects are covered. Please call 32528810 to book this complimentary initial meeting.

The idea of shifting from growth assets into an all-cash portfolio at this time may seem tempting to some investors.

Understandably, many investors are troubled by the deep European sovereign debt crisis, the lingering aftermath of the GFC and high sharemarket volatility.

The reality is that the annual returns from cash have been markedly higher than for Australian shares over the past 12-month and five-year periods.

The latest table of long-term asset class returns records that the total return from Australian shares (based on the S&P/ASX 200) was a negative 3.7 per cent for the 12 months to the end of October. And more significantly, local shares returned a negative 0.2 per cent a year over the five years.

These negative returns for shares compare with positive returns from cash for the same periods of 4.9 per cent and 5.4 per cent, respectively.

Yet looking more closely at the statistics reveals a different angle to the cash-versus-shares issue. Over longer periods, local shares produced annual returns that were markedly superior to cash:

• Over the 10 years to October, Australian shares returned 7.3 per cent a year against a 5.3 per cent cash return.
• Over 15 years, shares returned 8.4 per cent a year against a 5.3 per cent cash return.
• Over 20 years, shares returned 9.1 per cent a year against a 5.6 per cent cash return.

So when is cash not king? The answer is… Over a longer time period.

No asset class will outperform other asset classes every year. And sometimes the highest performer in any one year is the worst performer in the following year.

An investor who moves from shares to an all-cash portfolio during following a sharp sharemarket downturn often crystallises losses and could miss out on a possible rebound in share prices. And such investors lose the benefit of shares as a potential buffer against inflation.

To discuss where your assets should be and over what time period, please speak to one of our expert advisers using the contact page of our website, or give us a ring directly on (07) 32528810.

Doctors Wealth has put together this exclusive presentation for intern doctors, discussing the 5 key financial areas that medical professionals need to get right from the start of their career. In it, we discuss the fundamentals of cash flow management, income protection, salary packaging, superannuation and more.

Medical Financial Education Series Article

This article is designed to help clarify why it is often better for a busy doctor to put their focus into their career rather than driving endlessly around the suburbs to find their dream home.  Plus why having someone negotiate for you on the purchase will usually quickly pay for itself and save you hassle.

Firstly… What is a Buyer’s Agent?

Buyer’s Agents are licensed real estate professionals who represent busy home buyers and investors purchasing residential or commercial real estate.

They specialise in searching, evaluating and negotiating the best possible price on behalf of the buyer. They do not list or sell real estate.

The key difference between a Buyer’s Agent and a traditional Selling Agent is who they represent. A Buyer’s Agent works exclusively for the buyer, whereas the selling Agent works for the seller. By law, an Agent cannot act for (and accept) a commission from both parties in the transaction.

So… Why should you use a Buyer’s Agent?

1.Access More Property – Discover a hidden network of properties for sale. In addition to property for sale listed by selling agents, you can access ‘silent listings’ and developments before release or advertising to the general public.

2.More Free Time – Instead of searching the internet and newspapers get someone to do the hard work short listing suitable properties for you. Searching for the right property takes a considerable amount of time. While the average person may inspect 5 properties per week, we can look at over 30 (or as many as it takes to find the right property for you). We only present a short list of suitable properties for you to inspect.

3.Save Money - Use a professional negotiator to obtain the lowest possible price and get unbiased advice on what price to really pay. Don’t pay too much for your next property. Being in the market every day means we instantly recognise good value property. We cut through all the hype and give you the bottom line.

4.Reduce Stress – Using a Buyers’ Agent cuts out the frustration of being shown inappropriate or unsuitable properties by selling agents who may not listen to the buyer’s needs. We also guide you through the process, co-ordinating the support services you need including solicitors, mortgage brokers, building inspectors, accountants and property managers.

5.Representation – We do not receive commissions or ‘kickbacks’ from sellers. You have an unbiased Buyers’ Agent working on your side, with your best interests at heart.

6.Maximise your returns – Source the right type of property in locations with good prospects for capital growth to help build your property portfolio faster. We identify hotspots for our investors before they become widely known and provide comprehensive reports on the investment potential for each property. We provide general advice on investment that should deliver a superior level of capital growth but recommend professional confirmation from your accountant or financial planner.

7.Find it faster – Dealing with hundreds of transactions each year means we have systems to secure properties quickly and efficiently.

Great…How do you get started?

Contact us on (07) 32528810 or info@doctorswealth.com.au and we will arrange a great time to talk about  your property needs and wants.

Specialists in Medical Financial Services Including

Buyers Agents & Medical Mortgages

Doctors Wealth is a medical financial services company established to provide members of the medical profession with a one stop shop for complete financial solutions. Our mission is to provide comprehensive advice to Medical Professionals throughout their entire career, and in all aspects of their financial affairs.

Put simply, we help doctors put their financial house in order, and then keep it that way for life.

Our company  has three parts, which combined cover the full spectrium of financial services, so as provide a  complete ‘one-stop-shop’ for doctors:

Doctors Wealth Planning – financial planning services including cash flow and debt management, salary packaging, superannuation advice, personal insurances and investments.

Doctors Wealth Accounting – tax and accounting services including tax returns, tax structuring and tax planning.

Doctors Wealth Property – property services including mortgage broking and property buyer’s agent/advocate.

David Hooper - Doctors Wealth