Hello Client [RBA inserted here on day of announcement] While the board is wining and dining today, we thought we would take a different approach for our monthly update and share with you the history of the Melbourne Cup and how it all began. Whether you are a punter or not, we hope you enjoy this small piece of Australian history and, more importantly, backed a winner today. Remember, if you want to back a winning home or investment loan, you know who to call. Looking forward to hearing from you soon. Best of luck today Quantum Investor

Through tears and triumphs, ‘the race that stops a nation™’ has cemented its position as a revered sporting, social and cultural event that continues to play a significant role in defining Australia’s national identity. Where did it all begin? In 1861, at the first running of the Melbourne Cup, the race club committee could hardly have envisaged the Cup lasting a century and a half and growing to become a significant part of our social and sporting culture. In front of an estimated crowd of 4,000 people, Archer became the first winner of the Melbourne Cup. Victorians, and the wider Australian community, were already displaying their great passion for thoroughbred racing. Today, the Melbourne Cup is the richest handicap race held in Australia, and the prize money and trophies make it one of the richest horse races in the world. Flemington was fairly basic in the early days with little in the way of running rails or stands. But the Melbourne Cup quickly became popular as a carnival with picnic parties, sideshows, celebrations and people showing off their latest fashions. Socialites, politicians and Australia’s rich and famous attended the Cup right from the earliest days, as they still do today. While the Cup was first run on a Thursday, in 1875 it changed to a Tuesday and has normally been run on the first Tuesday in November each year. In three of the five years during the Second World War (1942, 1943 and 1944) it was held on a Saturday. At the time of the first Cup, Victoria was experiencing the gold rush and many people had flocked to Melbourne, Bendigo and Ballarat in the hope of finding gold. A few gold-diggers were fortunate and became wealthy, and they enjoyed splurging at Flemington. By 1880, 100,000 people would make the journey to Flemington to attend the Cup. As Melbourne’s population was only 290,000 at the time, this attendance was quite phenomenal,and many visitors came from the country and other Australian colonies too. These were flourishing times as Melbourne continued to grow during and after the gold rush period. ‘There was barely standing room on the lawn and many ladies were unable to find a seat for the whole day. The Paddock was overcrowded to excess and the Hill was simply a mass of human beings. It has reached a stage now that almost everyone in Melbourne goes to the Spring racing.’ - Australasian Newspaper (1871) Champion horses have always thrilled spectators. There are stories of endurance, scandal, controversy, tragedy and heroism including great horses such as: Carbine (1890) Phar Lap (1930) Peter Pan (1932 and 1934) Comic Court (1950) Rising Fast (1954) Rain Lover (1968 and 1969) Kiwi (1983) Vintage Crop (1993) Might and Power (1997) Makybe Diva (2003, 2004 and 2005). The gold rush days are well and truly over in Australia and we need to look at building wealth through other means. Please make us your first point of call for any property investment discussions.

Hello Client No surprise again this month that the RBA has left the cash rate unchanged at 2.5%. Lucky we give you more to read than just a rate announcement – otherwise I’m guessing we’d end up in the delete box more often and more quickly.  Just because rates are low, it doesn’t mean we should stop thinking about how we can pay off our debt sooner.  We always recommend paying off your store and credit cards first, however if you want to knock down some serious debt on your home loan, then we have a dozen tips for you this month. We hope you get at least 1 new idea to help you on your way to earlier home ownership.  Please contact us if you think we can help or if we haven’t reviewed your finances for over 12 months.  Remember – our competition to New York finishes next month, so if you haven’t entered all your friends and family yet, then forward this email and encourage them to join in the fun. Quantum Investor

We all know the most common ones: 1.    Pay off quickly 2.    Pay fortnightly instead of monthly 3.    Make payments at a higher interest rate amount 4.    Consolidate your debts 5.    Abandon minor luxuries 6.    Switch to a new loan or lender with a more suitable rate and package What about some others that we often don’t think about? 7. Use your offset account to your advantage Instead of putting your spare cash into an interest bearing account where you earn very little interest and pay tax on the interest you earn, transfer any spare money you have into your offset account.  The additional cash works to offset the interest you are paying on your home loan. 8. Split your loan If you are the type of borrower who worries about interest rates increasing but you don’t want to be tied down by a fixed loan, a good compromise is a split loan.  Split loans allow you to fix part of your home loan and set the balance of the loan with the variable rate of interest. Essentially this allows you more flexibility knowing part of your loan is safely fixed and won’t move.  If interest rates don’t go up (or if they rise only slightly or slowly) then you have the flexibility of the variable portion of your loan and can pay that component off more quickly. 9. Use your equity If you have made good progress by paying down your home loan, many lenders will allow you to use a portion of this equity for investment. Providing you can service the new debt, it is the most common strategy for wealth creation used in Australia.  As long as you are being advised and guided by a reputable credit adviser or financial planner, this type of investment is usually a safe strategy to start planning your financial future. 10. Refinance and invest the difference When you are fortunate enough to refinance and reduce your monthly repayments, rather than increasing your lifestyle or even paying down your mortgage, it is sometimes wise to invest the difference.  We recommend you seek counsel and advice from a qualified finance specialist, like ourselves, before trying to figure it out yourself. Don’t waste the opportunity by making mistakes. 11. Don’t be afraid of alternate lenders with cheaper rates There are many second tier lenders who provide excellent products and rates competitive to the BIG 4. As the competition for business is at its all-time high, it makes lending a very interesting sector to be working in.  With a strong property market and low interest rates, there are plenty of opportunities being provided by alternate lenders willing to take on traditional lenders with low fees and very competitive products. 12. Don’t set and forget There is always the temptation to let your mortgage roll along, make your repayments as they fall due and think as little about it as possible. This attitude could be your biggest mistake.  It is important to keep yourself up to date with the property and finance market. We encourage all of our clients to have an annual review with us to ensure we have you in the best financial situation available at the current time.  Rates change, new products are introduced and changes in the finance market itself may allow you to seize an opportunity or negotiate a better deal.   Stay informed and ahead of the game by reading our updates and committing to regular finance reviews.

Hello Client Who would like to be in the shoes of our economists? At the beginning of the month there were discussions about interest rates continuing to drop and evidence was seen with some of the majors and second tier lenders dropping their fixed rates, then only yesterday we read that we are to expect the cash rate to rise 150 basis points in 2015 (according tofinder.com.au – Reserve Bank survey). So whether there is to be one last cut this year or not, interest rate hikes are apparently on the horizon and look set to start rising very soon, so borrowers need to start preparing now before it’s too late. If you too are confused, please call the office urgently while we still have access to great rates! This month’s update is a case study about a young couple who didn’t have regular contact with their broker when they found out they were pregnant. They learnt of their predicament too late – after a lot of financial damage had been done. If this month’s article resonates with you or anyone you know, please forward it on and tell them to call our office. We would be only too happy to assist them. With your best interest in mind… Quantum Investor

Case Study Samantha and Luke had been married for a few years and were both bringing in a comparable wage. They were equally contributing to their living expenses, including their mortgage and utilities. Luke paid the mortgage and Samantha paid the utilities, groceries and everyday living expenses (including a car and personal loan). In March 2011 Samantha found out she was pregnant – and they were both very excited! The following months rolled on very quickly and in November their beautiful baby boy arrived.  Samantha’s paid parental leave started 6 weeks after her baby was born – not straight away. This was their first problem! The next problem was that the paid parental leave was $400 lower than her normal weekly wage – a substantial shortfall. The bills started to roll in, and they were struggling to pay them. Letters from the bank began to arrive with overdrawn account notices. In addition: the car loan was behind, the personal loan repayments were behind, and their credit card repayments were behind. They tried to consolidate their debts but no one would help them as Samantha wasn’t working. They tried several different banks… Sadly, what should have been a very happy time soon became very stressful. The banks were constantly on the phone chasing for payments so Samantha decided she should go back to work. Four months after giving birth she had a meeting with her employer and asked if she could come back to her job on a part time basis to help cover their bills. The only option for her was to go back full time or there was no job to go back to. As she couldn’t go back to work full time, she had no choice but to resign.  It took Samantha another 8 months to find a new job and by that time she had to settle for a full time position. So what should they have done? What Samantha and Luke should have done was call their mortgage broker to discuss their financial options during their changed financial circumstances. Unfortunately they no longer had their broker’s name and number to call because their previous broker had not stayed in touch with them and didn’t know about their important life change. Instead, Samantha and Luke went straight to the banks. This only resulted in knock backs – and of course their credit score was damaged in the process. If this young couple had a mortgage broker who knew them and their situation, there could have been a much different outcome. Take action early! Calling your broker is usually something that most people don’t think to do when they fall pregnant.  When we meet up with couples like Samantha and Luke (often referred to us by our existing clients) they all wish they had spoken with a broker who could have advised them on their financial options. They now know they would most likely be in a very different financial situation if they did.  Having been through such an experience these couples now tell all their friends to sort out their finances before going on maternity leave. The earlier the better! Here are the facts Paid parental leave is currently $641.05 per week BEFORE tax for a maximum of 18 weeks only (4.5 months) for those who are eligible1. Most people, on average, take 24 weeks for their maternity leave2. Legally, your employer only has to offer you the same job back at the same number of hours. Therefore if you only want to go back in a part time capacity and there are no part time positions available, you may find yourself unemployed. In January 2014 Australia’s unemployment rate was 6% – the highest level since July 20033. That’s a pretty scary thought! As your finance specialist, we pride ourselves on helping you and your friends during times of financial change. The most important thing to do first is to have that conversation with us and let us know what is happening in your life so we can best assess your options. If you think it’s time to update us with your upcoming plans or changed circumstances then please enter our competition and complete the associated survey. This will tell us what is going on in your life so we can best assess how we may be able to help.  There’s a range of informative topic sheets you can request while you’re there – PLUS you get a chance to win a trip to New York at the same time! We look forward to hearing from you – AND your friends.  Source: 1 http://www.humanservices.gov.au 2 http://www.abs.gov.au 3 http://www.tradingeconomics.com/

Hello Client In line with expectations the Reserve Bank today retained cash rates at 2.50% judging that the setting of monetary policy remained appropriate. While cash rates are still low, so is finance. If you have not revisited your current finance in the last 18 months you should call the office urgently. Over the last four years the number of investment property loans in Australia has grown by 37% compared to an increase of only 4% in the number of owner occupied loans. Read our feature article below to find out how some Australians are using their home equity wisely. Remember to enter our competition to win a fabulous trip to New York. You can also share it with friends and family to gain more entries. Now who wouldn’t love to win that trip? Quantum Investor

Over the last four years the number of investment property loans in Australia has grown by 37% compared to an increase of only 4% in the number of owner occupied loans. These are the latest findings from the Roy Morgan Research Consumer Single Source survey1 of approximately 45,000 people per annum. Investors The survey reported that the 35 to 64 age group accounted for 78% of the increase in the growth of investment property loans over the last four years. Home owners The study also showed that while the proportion of over 50′s with an owner-occupied home loan increased, the proportion of under 35′s with owner-occupied home loans decreased. For the 2011/2012 tax year it was reported that 19.3% of Australian tax payers owned an investment property2. That’s nearly one in five compared to just 12.9% about 20 years earlier (1993/1994). And very few invest more than once According to the ATO data (2011), 72.8% of individuals who owned an investment property owned just one. Meanwhile, 18.9% of those individuals owned two properties and just 0.9% of the same owned six or more. The gap is closing Due to the historically low interest rate environment, we are seeing a large number of our clients using the equity in their current property to purchase an investment property. With rates so low, the gap between investment loan repayments and the rent received has reduced compared to a few years ago. Sometimes the gap is very minimal - particularly after a refinance. Attitudes are changing We are starting to see a very different attitude from people purchasing property. A few years ago, property purchase was all about owning your own home. Most clients also thought that investing in property would be at the expense of owning their family home. These days, with low interest rates and first home owners being priced out of buying their family home, we are seeing more clients take on investment properties as a solution to getting a ‘foot in the property door’. Confidence is increasing Our older home owners have seen the benefit of some good capital growth over the last few years. They are now feeling more confident to use some of this recent equity, coupled with low interest rates, as an opportunity to start investing in their financial future. As we look at the prospect of pension cuts and increasing the work life expectancy to the age of 70, this seems to be a step in the right direction for many of our clients. If only 19.3% of Australians have taken advantage of property investment opportunities that leaves the vast majority of individuals missing the chance of wealth creation!   As your finance specialist, it is important for us to help you make the right decisions for your personal situation. We understand that most people struggle with the concept of purchasing an investment property while still trying to pay off their home mortgage. Guess what – you’re not alone! Only 19.3% of Australians appear to be comfortable with this. We welcome your call to discuss your concerns and help you make the right decision for you. Feel free to call the office at any time. We look forward to hearing from you. 1 Roy Morgan research 19 May 2014 article No. 5595 2 ATO

Hello Client At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time. In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates. Some of our clients who didn’t want to pay LMI (Lenders’ Mortgage Insurance) in the last 12 months are NOW facing a much bigger challenge. The property they were saving for has gone up 3 times more than the LMI they avoided paying! Read our feature article below to find out what is LMI? Quantum Investor

What is LMI? Lenders’ Mortgage Insurance (LMI) was introduced to offer higher Loan to Value Ratio (LVR) loans while reducing the risk to the lender. This insurance is paid by the borrower (you) typically as a one off payment to the lender – either at settlement or added (as a capitalised amount) to the loan amount. Lenders will stipulate if they require you to take out LMI. This is most likely if you have a deposit of less than 20%. You should note that LMI protects your lender in the unfortunate event of you defaulting on your home loan – NOT YOU! When institutions agree to lend money to a customer there is a small risk that they won’t get the money back if the customer is not able to meet the repayments in the future. Although they have your house as security, if property values decline, that security may not be enough to cover the outstanding loan when the lender comes to sell it. This insurance helps lenders broaden the net of people they are able to lend money to by taking some of the risk out of that loan. It means more people are likely to get approved for a loan and be able to purchase the home they want sooner. Also note: LMI should not be confused with mortgage protection insurance, which covers borrowers for the payment of their mortgage instalments in the event of unforeseen circumstances including unemployment, illness or death. This insurance is paid annually and can vary depending on the outstanding balance of the loan. Why do you need LMI? When you don’t have quite enough money for the deposit of your property purchase you will be asked to pay LMI. Some consumers don’t like to do this as it scares them and is also seen as a waste of money. They would rather save the additional deposit and purchase a property later when the deposit has been saved. The problem is however, while you are saving for a larger deposit, the housing market may move quicker than your savings. Thus the end result will be that the property you wanted 12 months ago is now $30-40,000 more expensive! And the LMI you avoided was only about $6-8,000.1 Example The national median house price increased by +11.3% over the past year.2 That means a property for $450,000 12 months ago would now be worth $499,500. An increase in capital growth of $49,500. The LMI you would have been asked to pay would have been between $5,500 – $8,000 depending on the lender & insurer. So not only have you lost out on the capital growth from the last 12 months, you have also missed out on getting a proper foot into the property door. Not only is the property you want now more expensive, but you now need an even larger deposit than before. A dilemma! With property on the move, we are seeing more and more clients miss out on opportunities every month because they don’t want to pay LMI. Although we cannot predict the future and do not know the expected growth rates for the next few years, usually your property only has to increase by 1-2% pa in its first year to justify the expense of your LMI. In an ideal world we would all like to avoid LMI, however sometimes it is a small price to pay to get what you want. If you want a comparison on what you can purchase today (with and without LMI) and what you will be able to purchase in 12 months’ time (projecting the expected property market growth) call us to have a chat and we will explore the options for you. There are some special incentives for customers to invest in LMI at the moment (for example: if you have been with your employer for at least two years and some lenders do not charge LMI if your Loan to Value ratio is 85% – ie. you have a 15% deposit not a 20% deposit). It is certainly worth a call. 1 Based on a $450,000 property with a 10% LVR. (LMI can vary from lender to lender) 2 Source APM – Capital growth has been different in each capital city.

Hello Client At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. Both financial conditions and monetary policy remain very accommodative. Continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time. On present indications, the most prudent course is likely to be a period of stability in interest rates. Last month we conducted a survey across a sample of our clients. This month we thought we would share the results with you. We asked two questions: 1. What do you worry about? 72% worry about having to work until they’re 70. 65.6% worry about living the lifestyle they want in retirement. 52.7% of those surveyed also worry about surviving on the pension in their old age. 2. Why do you think we put off planning for our future? 62.2% are waiting to pay off their mortgage. 28.9% think they have plenty of time left. 20% are putting their lives on hold for the kids! Please read our conclusions below, then call us to avoid the problem of having to work until you’re 70! We look forward to hearing from you soon. With your best interest always in mind… Quantum Investor

Most of us worry about our future, and most of us are waiting until the mortgage is paid off before we do anything about it. Sydney University anthropologist and author Stephen Juan said it now took two incomes and 30 years to pay off the average home. Half a century ago, it was one income and 15 years. So… If our working career begins in our early 20s, we typically purchase a house in our late 20s or early 30s. If the above is true, then we would probably manage to pay our house off by the time we are 50! That’s if we are fortunate enough not to separate and have to start over again (statistics predict that 50% of us will). We turn 50, then decide to help our children to step into the property market as it’s now three times more expensive for them than it was for us, AND we realise we don’t have enough super or investments to retire ourselves. Instead of retiring in five to ten years’ time when we are still healthy enough to enjoy it, we now have to work until we are 70. Let’s hope we are keeping ourselves fit and healthy to ensure we are still employable post 50. Do you want to know the number one biggest mistake? Waiting until we pay off the mortgage. That’s 60% of us! If we wait until 50 to start planning for our retirement, then we are almost guaranteed to have to work until we are 70. However if we start planning as soon as we purchase our first home, then we have a much greater chance of getting ahead financially. But the problem is that we listen to our parents, friends and family (who aren’t necessarily financially well off) and we delay – just like they did – then wonder why we end up in the same predicament of seeking government assistance when our working life ends. Did you know that most of our financially astute and secure clients started planning for their retirement before (or at the same time) they purchased their first home? There are many ways to achieve the lifestyle we all want at the end of our working life: building a good property portfolio, getting good financial planning advice and ensuring all the associated risks are taken into consideration. The biggest myth is that most of us think we can’t afford it, or are worried we will lose our home if we invest. The biggest problem is that most of us leave it far too late. Whatever your age or circumstances, if you are in the 72% of people who are worrying about their financial future, you should call the office NOW to see how we can help you. Disclaimer: This article is generic in nature. All finance and investment decisions should be considered wisely and based on your personal and financial circumstances. Seek proper advice before committing to any course of investment action. This is not deemed as advice. © 2014

Dear Client At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target. Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time. On present indications, the most prudent course is likely to be a period of stability in interest rates. If you’re under 50 years old today, then you have an 82% chance that you will have to work until you are 70. How does that make you feel? If the response is depressing or anything similar, then you need to read our feature article this month. Please tell us how you feel by filling out our quick survey at the end of our article. We hope you find this article thought provoking and motivates you to aim to be in the 18%. We look forward to hearing from you. Quantum Investor

If we fail to plan… then we plan to fail… This is a very common phrase and I’m sure you have heard it before.Regardless of your age, we all have an 82% chance of failing in the school of personal finance. So why is this so true? Why do so many Australians still fail to plan for their financial future, regardless of their age? We plan, research and save for our: first car… wedding… holidays… career… first home… children’s education… But 82% of us don’t plan (financially) for the last 20-30 years of our life! Is it because we don’t think it will arrive as fast as it actually does? Is it because we think we’ll ‘get around to it’ at some point in time? Is it because we think we can’t afford to start planning for our future? I’m not exactly sure why we delay this, but it concerns me. We are living longer! This means we need a larger bucket of money for when we finish working. Statistics have shown that your superannuation will probably only JUST pay off your mortgage by the time you want to retire. But that leaves very little for enjoying life. This is why 82% of the Australian population end up requiring government assistance. I don’t imagine that this is an exciting or fulfilling way to end your working career. Or what any of us PLAN for. We have all heard that we could end up having to work until we’re 70! That’s because most Australians just don’t start thinking about their life after work until it is way too late. What would it mean to you if you had to work until 70? We will be fitter, healthier and live longer than our previous generation. Instead of spending time with the grandkids – you will still be at work… Instead of travelling the world – you will still be at work… Instead of helping in the community – you will still be at work.. Instead of socialising with family and friends – you will still be at work… And you will probably still be supporting those adult kids of yours because they will fall into the exact same pattern as 82% of us. No one ever said on their death bed – I wish I had spent more time at work! So, why don’t Australians take their financial future seriously? Or why do we leave it until a few years before we are ready to retire, when most of us can start this process within the first few years of our working life? I help people every single day to secure the best possible finance I can get them. I encourage all of my clients to start thinking about getting ahead financially. We talk about investing and post work life financial security – even if YOU’RE 20! Disclaimer: This article is generic in nature. All finance and investment decisions should be considered wisely and based on your personal and financial circumstances. Seek proper advice before committing to any course of investment action. This is not deemed as advice. © 2014

Dear Client At its meeting today, the Reserve Bank Board decided to leave the cash rate unchanged at 2.5 per cent. In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with targets. On present indications, the most prudent course is likely to be a period of stability in interest rates. While Australian investors have a lot to be optimistic about in 2014, the property pessimists will be out there looking for their typical excuses as to why it’s still not a good time to invest. If you think you are a PP (Property Pessimist) and want to become a PO (Property Optimist) please read this month’s feature article. Quantum Investor PS: While you are here, why not have a bit of fun and enter our fabulous new competition to win a $5,000 gift voucher to create your Thailand dream holiday. It’s easy to enter, just click the competition image and for every section of our survey that you complete, you will receive additional entries. Feel free to request one of our topic sheets at the same time.

I don’t have a crystal ball and I’m not an economist, but it appears that there are many indicators to suggest that interest rates are likely to remain low for a while. What happens in a low interest rate environment? Low interest rates encourage homebuyers and investors into the property market and also allow current homeowners to pay off their mortgages more quickly. We all know that the property market isn’t the same across the country. Some areas will flourish and others will languish, so research is the key to a good purchase. With a mixture of: low interest rates, strong population growth, job stability, affordability and increasing confidence we may see more people being involved in property this year. Is the market only for investors? While astute investors are aware of good buying signs and are always on the lookout for a glimpse of a new property cycle they will take advantage of the current market. The latest auction results and buying patterns indicate that there are many upgraders moving into bigger homes and many families and first home owners who have jumped back into the renovating cycle. If you’re a potential first home buyer you may as well face the fact that getting your foot into the property market isn’t going to become any cheaper. Our strong population growth will continue to provide the demand for residential property. Over the next 10 years, our now Gen Y’s will become our growing 30-somethings who will be working hard, paying good taxes, establishing their families and continuing to drive the demand for housing. The property optimists that I know – who have stood the test of time and have held for the long term – very rarely look back in a 10 to 15 year period and say their property decreased in value. There are no risk free investments, including property, however if you follow the basic rules of investing in property MOST of us can look back with good fortune. It certainly has been an interesting decade for the property market and, while there are no promises, it would certainly appear that now would be a great time to consider your first, or next, investment property. If you want to discuss your property portfolio potential and you believe you are a Property Optimist we welcome your call. If you think you are a PP and want to become a PO, of course we welcome your call as well. We hope we have given you some food for thought. These conditions won’t last and we take that into consideration with our recommended guidance for you. We look forward to hearing from you to discuss your views on the property market this year. Disclaimer: This article is generic in nature. All finance and investment decisions should be considered wisely and based on your personal and financial circumstances. Seek proper advice before committing to any course of investment action. This is not deemed as advice. © 2014

Dear Client At its meeting today, the Reserve Bank Board decided to leave the cash rate unchanged at 2.5 per cent. In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with targets. On present indications, the most prudent course is likely to be a period of stability in interest rates. Although you may not be looking for a loan or to refinance right now… some time in the next few years you more than likely will. AND if you don’t read our feature article this month when that time comes we may not be able to help you, and if we can’t help you – the banks certainly won’t. We hope you find the read informative. Quantum Investor

We are about to enter what we will come to know as the BIGGEST change in privacy reforms in history. (See I told you it would be boring!) The Privacy Regulation 2013 (made under the Privacy Act) to commence on 12 March 2014 was registered on 17 December 2013 – so the information I am about to share with you already started late last year. The amended Act includes changes to how financial institutions can collect, use and disclose your information to credit-reporting bodies. What does this mean? It means that your financial institution is allowed to share your credit liability information and your repayment history by providing details of whether your payments have been made on time OR NOT. If you fail to make loan or credit card payments on time, it may affect your ability to obtain credit in the future. Who does this affect? EVERYONE. Even the wealthy. You now have a credit rating! You didn’t just before Christmas. Before December 2013 no one had a good credit rating – even if you were good. It just didn’t exist. You will have an existing credit report if you have applied for any form of credit. This can include: Phone contracts Credit cards Residential or personal loans Hire purchase/car loans What does this mean for you? If you’ve been good (and I mean really good) – then not much. If you’ve been bad, then we have some work to do. What is bad? If you have ever: Missed a payment (even unintentionally). Overextended your credit card (even just a little). Gone on a holiday, racked up your card and then delayed payment for as long as you can until the bank is knocking on your door, then this is considered bad. Had overdue accounts or payment defaults. What does this mean when you are applying for a loan? If one bank rejects you, then the next one will more than likely too, even if they don’t know the other lender’s reason. ‘You need a mortgage broker now more than ever… Gone are the days when you can go to a bank to negotiate your own mortgage.’ Why? Because if you don’t know how to present your financial position in the absolute best light for the lender and then the lender declines you – it’s on your record. When you use our mortgage broking services, we will know who the best lenders for your situation will be and there will be a greater chance of having your loan approved. Now we can’t promise this by the way. But you are going to have a greater chance with a broker than you will by trying to do this yourself. Your credit information will be available to all financial institutions. Also, if your mortgage insurer declines your insurance, then guess what? – the next one probably will too. Without any reason except that someone else has. What can you do about maintaining a good credit rating? Keep an eye on your repayments – DO NOT be late or miss them. Don’t overuse your credit card. Don’t apply for too much credit. Use direct debit to pay your bills on time – most institutions allow you to direct debit the minimum balance EVERY month. Even if you like to pay the balance in full this will ensure your payment is made on time. You can then pay the additional (balance) each month as you please. If you are going away for an extended period and you know a bill will be due then schedule the payment for the due date via internet banking – or ask someone else to pay it while you’re away (if you can trust them to pay it on time). But can you really afford to put this responsibility in the hands of other people? You simply cannot do a double payment in March to cover a payment for April. It has to be scheduled against the actual date. Who should you tell? Everyone! Especially teenagers and young adults who may be looking to get their first home loan soon. Anyone you know who is struggling financially at the moment who you know isn’t paying their bills on time. Everyone you care about who will need finance in the future. So, what’s the good news? These changes were made to provide you with increased protection over how your information is held and shared. Lenders will now have a better understanding of your credit needs and your ability to repay any debts. If you have an excellent payment history, this WILL HELP YOU obtain finance in the future. You have additional rights for accessing your credit information. You can complain if you think the information held or shared about you has been mishandled. To apply for a free copy of your credit report, contact these national credit reporting agencies: You don’t have to pay a fee to get a copy of your credit report, you may just have to wait a little longer to get it.  Veda: MyCreditFile.com.au Phone: 1300 762 207 D&B: CheckYourCredit.com.au Phone: 1300 734 806 Experian: Experian Credit Services Phone: 1300 783 684 Or call the office for help. If you think this article may be helpful to your friends please forward this on to them. For more information review The Privacy Law Reform http://www.oaic.gov.au

Hello Client As most economists predicted, at its meeting today, the Board decided to leave the cash rate unchanged at 2.5%. If you have not revisited your current finance in the last 18 months or so NOW is the time to review and take advantage of the low rates. We encourage you to call the office TODAY.  Despite some of the lowest interest rates in a very long time the number of first home owners entering the market continues to decline. Do you worry about what the financial future holds for you or your kids? The monthly topic we have chosen is in relation to our concern for the ‘young ones’ in our society who will have it even harder than we did to secure a reasonable financial future. TheyWILL be the ones working until they are 70 if we don’t educate them now.  We have a range of articles to help: you, your adult children, and your friends and family who need financial help and education. When you enter this month’s competition and complete our survey, you can choose from 6 topic sheets we will send to you. You can also register your adult children, family and friends to enter as well, then they too can have our great topic sheets sent to them. It’s an OPT in process and a friendly way of helping them.  And who wouldn’t want to win a trip to New York anyway? Before you enter the competition though, we would really appreciate it if you would: read our article fill out our survey, then remember to come back and enter our competition. With your best interest always in mind… Quantum Investor Do you ever worry about how on earth YOU (or your children) will ever: Pay off those enormous uni fees? Move out of home? Find a job they enjoy working in long enough to create some decent workplace skills? Enter the property market? Build a different life in retirement that will sustain them without having to work until they are 70? Handle a ‘real’ financial crisis? Manage financially if they become ill or are made redundant? Handle a mortgage while bringing up kids? Afford to renovate, upgrade, move closer to work? This list could go on… If you were like me, your parents probably didn’t encourage you to invest when you were younger. We were told to: Find a good job and don’t move around too much Pay off your home first Don’t invest in the property market because there are always bad tenants Don’t invest in the share market as it always goes bust! … Isn’t it funny how we take advice (or are given advice) from people who have usually not created much wealth in their own life? When planning this topic, we did some research amongst our peers. Here are their comments: I was encouraged to invest in property at an early age and didn’t as I thought I had all the time in the world to do that. I was too busy partying and buying new clothes… Well the clothes are now outdated, most have been sent to ‘Vinnies’ and I didn’t have a house deposit saved which made things a lot harder than they needed to be. Dad used to talk about property a lot with me, but I think if he had said to me “If you don’t do this you will be working until you’re 70″ I might have listened more… The main problem is that kids do what other kids do. That’s how they get into sport, hobbies, schools etc. That’s how they create good and bad habits. As parents, we need to lead the way, learn what to do ourselves so they can follow our lead. It’s really about their circle of influence. I think it’s really important that people in their early 20s read articles like this to get an idea of the overall options they have to create wealth – I knew far less before working with you. My parents did give me help but I ultimately chose what to do from the knowledge I built from the education and training you provided over the years. It’s very relevant with such a heated property market. However, those in their 20-30s may believe it has less relevance to them if they have no kids or their kids are still young. Even though good financial lessons start early, most of us wish ‘we had listened’ to good advice in our younger years. Hindsight is an amazing thing. If you had your time again, what would you have done differently? What advice would you give your children about what did or didn’t work for you? If you would be so kind to complete our survey, we can find ways of helping: you your adult children friends and family, or anyone who you think may be in for a tough financial future. Together we can collect some good information to help them. Please complete our survey below so we can answer your concerns and share your great advice next month.