Post on 19-Dec-2015
transcript
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Disclaimer The Macquarie Cash Management Trust ("Trust") is offered by Macquarie
Investment Management Limited ABN 66 002 867 003 ("MIML"). The information contained in this presentation is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. Therefore, before making a decision to invest in the Trust based on this information, you should read the Product Disclosure Statement (PDS) for the Trust and consider whether the investment is appropriate for you in light of your objectives, financial situation and needs. Applications for investment in the Trust can only be made on an application form included in or accompanying the current PDS.
Investments in the Trust are not deposits with or other liabilities of MIML, Macquarie Bank Limited, or any other Macquarie Bank Group company and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Neither Macquarie Bank Limited nor any other Macquarie Bank Group company guarantees the performance of the Trust or the repayment of capital from the Trust or any particular rate of return.
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Agenda
Australia’s cashflow quandary - why cashflow matters
Safe Hands – cashflow patterns
Paying yourself first – assets and liabilities
The debt traps – spotting the killers
The service engine – how a CMT fits in
Cashflow management skills needed for success
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Living longer, working shorter
10 20 30 40 50 60 70 80 90
16 65 72Grandad
18 60 78Dad
21 55 83Me
Working years Retirement years Figures are for illustrative purposes only
23 ?My
kids
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Financial independence =
Building personal cashflow
to replace
employment cashflow
cost of living cashflow
to meet
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In summary
We have… An ageing population Strong economic growth in the past 13 years Real net income growth
Which means… Making money is not our problem
But… Consumption has increased No real wealth is achieved
… Managing cashflow is our problem
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Think like a business
Income Statement
Balance Sheet
ExpensesIncome
Assets Liabilities
How healthy is your cost to income ratio?
vs
vs
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Asset or liability?
Cashflow patterns of assets and liabilities
Liabilities
AssetsAssets pay
income e.g.
shares;
investment
property;
etcLiabilities
cost money
e.g. home;
boat; car;
etc
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Safe hands – handling the cash
Cashflow pattern No.1: Hand to mouth
Income Expenses
LiabilitiesAssets
Salary
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Safe hands – handling the cash
Cashflow pattern No.2: Hand to bank
Income Expenses
LiabilitiesAssets
Salary
Focus on looking
rich
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Safe hands – handling the cash
Cashflow pattern No.3: Handled for growth
Income Expenses
LiabilitiesAssets
Salary
Positive cashflow
management
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Make cashflow an agenda item
1. Understand current cashflow patterns
2. Commit to a cashflow strategy
3. Develop a cashflow system
4. Create a positive cashflow strategy
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The debt rollercoaster
= Mortgage
= Credit cards
+ Mortgage re-draw accounts
=
Consumer marketing:
“You can enjoy the extra freedom that comes with greater spending power…”
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Chart to financial independence
$
Years to financial independence
New car
purchase Home renovations
Financial
independence
Passive
incomeCost of living
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What is needed to change your behaviour?
You need to:
Get financially emotional Think like you are a business Understand your personal cost to income ratio Chart your road to financial independence
Start now Start a budget Understand your assets and liabilities Pay yourselves first Put a system in place to manage your cashflow
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Implementing the system
Expenses
Liabilities$300,000
Assets$200,000
$6,000 $3,000
$2,000$1,500
$500
$5,000
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Where is your money?
At-call deposits with Australian Banks, June 1989 - June 2005
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Dep
osit
s (
$ M
illio
n)
$720,660,0
00
Source: www.rba.gov.au/Statistics/Bulletin/B03hist.xls
• Are you happy with your interest, services and fees?
• Are you making the most of your funds?
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Macquarie Cash Management Trust
Safe alternative to the banks – AAAm rated
Highest client service experience – ‘above and beyond the call of duty’
Interest on all your cash
No entry or exit fees on investment transactions
With your permission, your adviser can access your account details
Easy to understand statements
Full internet and phone banking facilities
*fees do apply for some transactions
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We’re always improving…
Although we have the largest and oldest Cash Management Trust in Australia, we’re always looking at ways to improve it….
1998 – 24 hour phone service1999 – 24 hour internet service2000 – the Macquarie Gold Card2001 – BPay online payments2002 – online transacting and other services2003 – automatic downloads to your adviser’s software2004 – online interest and dividend form
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Summary
Working with your adviser to: Establish discipline
Know your cashflow
Understand cashflow patterns of assets
Understand cashflow patterns of liabilities
Define key financial goals
Develop a cashflow management system that works
Track your investment income
Build long-term sustainable results