“The most powerful force in the universe is compound interest.” – Albert Einstein Einstein also referred to compound interest as the 8th Wonder of the World. Why? What is it about compounding that makes it such a powerful force?   Total Australian credit card debt closes in on $50 billion! There is good debt and bad debt. Is the steady increase in what we collectively owe to banks on credit cards a good or a bad thing?   Single person households a big driver of housing demand The trend to more people living alone means even more accommodation will be needed in the future. Why not become one of the providers?   Just as the GFC disappears, the PIGS come out to play! What an awful acronym: PIGS – standing for Portugal, Italy, Greece and Spain – the ‘Club Med’ countries that have been at the centre of a month’s chaos and volatility in global share markets, and that dragged Australian shares down with it.   How will the other half live? At McCarthy Group we are proud of the fact that many of the families who work through a Lifestyle Planning Workbook with us, which means calculating their current finances and projecting forward to their likely future financial picture, end up making a property investment decision through us.   Ho hum. Australia wins again. So what’s to do? The International Monetary Fund (IMF) has sharply upgraded the growth forecast for Australia, along with leading Asian economies. It is predicting that the Australian economy will experience growth of 3 per cent in 2010 and 3.5 per cent in 2011. This means that Australia is going to be one of the handfuls of countries leading the global recovery.   Fees - why your super growth can never be enough If you want to know why the financial services industry keeps rolling in cash and bonuses, one of the biggest reasons is the billions of dollars in annual flows ($39.0 billion during the December quarter) that add to the $1.2 TRILLION in funds under management. Contributions to funds with at least $50 million in assets over the December quarter were $19.2 billion in itself.   Will your children inherit property wealth? A recent report from Bankwest called The Inherited Housing Report states that, “An unprecedented ‘baton change’ of wealth is expected over the next 15 years as the older generation hands over as much as $400 billion worth of property to their children”.   Consumer confidence back on track as jobless figures fall As Australia continues to climb on all economic fronts, the positive effects are being felt by the man in the street, with the most encouraging aspect of all being the decline in unemployment...   2010 – How about a wealth creation strategy for the new decade? It’s been a happy start to the new year for Australians. Our economy is growing strongly, shares and super funds are recovering, exports are flowing, unemployment is falling fast, property is booming...   The eye of the Tiger In our last issue of Freedom News, we spoke so highly of Tiger Woods, and how he had achieved a ‘W” (Tiger-speak for ‘Win’) in the Australian Masters in Melbourne. What a difference a week makes!   Which road will you be on this Christmas? Australians are applying for loans in record numbers. Some will take on more credit card debt. Others will borrow to buy a property. Which path will you choose?   Westpac on a mission to win your hearts as well as your money Westpac has announced $4.6 billion cash profit and launched a ‘Bank Manager Blitz’ into local communities.   Who’s buying property? If it’s not you, ask yourself, “Why not?” As first-time buyers withdraw from the market, smart investors are climbing in. Why not join them? There’s never been a better time to do so.   On Labour Day, is your money working for you? Take time out this Labour Day to reflect on whether you are working for money, or if your money’s working for you. (Labour Day is on October 5 in NSW, SA and ACT.)   Good debt versus bad debt. What’s the difference? Understanding the nature and types of debt is an important first step for any property investor. Instead of being something to be afraid of, the right debt can be a good friend.   It’s not the right time…. If you allow your inner voice to rule, it will never be the right time to do anything. It’s time to recognize this phrase for what it is. A reason to procrastinate.   It’s a matter of trust… and results Many small investors have been hurt by questionable financial advice and have lost money and confidence as a result. Who can you turn to... Why don’t people act when they see the shape of their future? Time, fear and procrastination are the culprits.   *She’ll be right, mate As Aussie as boardies and barbies, the implied ‘inaction’ behind this saying can be very costly.   Facing fear Facing and overcoming fear with decisive action is a step that cannot be avoided on the road to financial freedom.   Breaking the chains that bind us We have all learnt unhelpful beliefs along the way. We need to open our minds to new ways of thinking and shake off the shackles that hold us back.   Dodging the bullets McCarthy Group is a proven partner to guide you safely along the journey to financial freedom.