Staying ahead of the game<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

Staying ahead of the game<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

Staying ahead of the game<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

Staying ahead of the game<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

My Name Financial

Staying ahead of the game<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

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Disclaimer

Important Notice

RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian Financial Services Licence Number 238429 and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts.

The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.

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Our credentials

Experienced

• 30 years’ experience

• Over 80,000 clients

• Over $10b under advice

• Professional personal financial planning advice

• Backed by quality research and technical teams

• Over 110 offices nationwide

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Staying ahead of the game

There are five keys rules for retirees to remember during a market downturn:

1. Keep a long-term view

2. Don’t avoid growth assets

3. Aim to avoid turning paper losses into real losses

4. Check-in with Centrelink

5. Consider leaving a legacy

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1. Keep a long-term view

Source: S&P/ASX 300 ACC Index as at 31/03/2010

Rolling 1 Year Returns

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Rolling 10 Year Returns

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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… and stay diversified

Aust. Shares Int'l. Shares PropertyAust. Fixed

InterestInt'l. Fixed

InterestCash

Mar-00 9.54% 27.45% 3.24% 1.79% 3.78% 5.24%Mar-01 3.48% -6.76% 12.86% 11.82% 22.59% 6.36%Mar-02 12.42% -12.36% 16.96% 2.35% -8.07% 4.77%Mar-03 -11.93% -33.08% 13.86% 10.09% 10.59% 4.91%Mar-04 23.83% 14.25% 13.94% 4.17% -10.14% 5.11%Mar-05 25.40% 9.29% 19.76% 5.06% 4.16% 5.56%Mar-06 30.22% 28.57% 18.21% 6.47% 3.45% 5.80%Mar-07 22.03% 1.94% 28.40% 3.68% -4.90% 6.19%Mar-08 -7.22% -14.15% -22.80% 4.31% 6.46% 6.99%Mar-09 -29.80% -23.49% -57.63% 12.79% 7.01% 6.70%Mar-10 41.93% 15.14% 40.55% 2.73% 10.24% 3.55%

Average return

10.90% 0.62% 7.94% 5.93% 4.11% 5.56%

Data: Australian Shares - S&P/ASX 300 Accum. Index, International Shares - MSCI World (ex Aus) in $A - unhedged, Property Securities - S&P/ASX 200 Prop Trust, Australian Fixed Interest: Commonwealth Bank Bond Index (Pre Sept 89) / UBSA Composite Bond All Maturities Index (Post Sept 89), International Fixed Interest: Citigroup WGBI Ex AUD Hedged, Cash: UBSA Bank Bill Index

Source: IRESS, Mercer, RBA

Note: Returns based on March rolling annual returns.

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2. Don’t avoid growth assets

• During volatile times it can be tempting to turn to conservative assets such as cash or term-deposits

• Remember

– You need sufficient growth to stay ahead of inflation

– Shares can provide capital growth and income

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$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

83 85 87 89 91 93 95 97 99 01 03 05 07

Income

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Capital ValueAll Ordinaries Index - Dividends (LHS) Term Deposits - Interest (LHS)All Ordinaries Index - Value (RHS) Term Deposits - Value (RHS)

Source: IRESS, S&P ASX All Ordinaries Index. Reserve Bank of Australia, ‘Bank Deposits $5,000-$100,000 1 year rates’. Past performance is no indication of future performance. Data to 31 December 2008.

Which income stream would you prefer?

Return on investment of $100,000 in shares vs term deposits

Shares can provide capital growth and income

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You need sufficient growth to stay ahead of inflation

Source: Reserve Bank of Australia, Colonial First State. Data to 31 December 2008

0

10

20

30

40

50

60

70

80

90

100

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

$100 in 1970

$10.78 in 2008

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Still finding it hard to sit tight?

• Consider capital protection products

– Help protect investments against market ‘ups and downs’

– Lock in returns during strong growth and limit downside when markets are volatile

• Speak to a financial adviser to see if capital protection is appropriate for your situation

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3. Aim to avoid turning paper losses into real losses

Wherever possible you should avoid crystallising unnecessary losses in a depressed market

This includes:

• Selling investments

• Switching from one investment to another

• Switching your super

• Drawing an income from super

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Sitting tight - Catherine and Steven’s story

*Source: This graph has been prepared by ING Australia Limited ABN 60 000 000 779. It is based on an initial investment of $100,000. Upfront fee of

4% is deducted. Investment is in a balanced fund made up of Cash 7%, Australian Fixed Interest 17%, International Fixed Interest 5%, Australian

Shares 37%, Listed Property 9% and International Shares 25%, rebalanced monthly. The fund is assumed to earn index returns for each sector after

ongoing charges. All income is reinvested. No other fees are taken into account. Past performance is not an indication of future performance.

Staying in a Balanced fund was a better strategy than switching to cash*

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Pensions from super

Wherever possible:

• Draw from non-growth assets

• Reduce payments

–Take advantage of the 50% reduction in the minimum pension drawdown (for 2010/11)

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4. Check-in with Centrelink

On the bright side it’s possible you may now be entitled to a pension or a pension increase due to:

• The reduced value of your assets

• Reduced deeming rates under the income test

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Social security – assets test

Homeowners

Single

Couple (combined)

For full pension

up to $181,750

up to $258,000

For part pension

less than $668,000

less than $991,000

Non-homeowners

Single

Couple (combined)

For full pension

up to $313,250

up to $389,500

For part pension

less than $799,500

less than $1,122,500

* rates valid until 30 June 2011

Pension entitlement reduces by: $1.50 for every $1,000 over lower threshold (single and couple)

Example: $10,000 over the lower threshold reduces pension by $15 per fortnight ($390 pa)

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Social security – income test

Family situationSingleCouple (combined)

For full pension (pf)up to $146.00up to $256.00

For part pension (pf)less than $1,604.60less than $2,454.80

Pension entitlement reduces

• 50 cents for each dollar over the limit (single)

• 25 cents for each dollar over the limit (couple – each)

Example: $100 per fortnight over threshold reduces pension by $50 per fortnight ($1,300 pa)

NOTE: those in receipt of age pension on 19 September 2009 may be assessed under the transitional rules.

* rates valid until 30 June 2011

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Centrelink benefits

Receiving a Centrelink benefit will help out by:

• Providing an extra income• Allowing you to decrease the income you draw from super• Giving your access to other benefits through the Pension Concession Card

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5. Consider leaving a legacy

Points to consider:

• Family succession planning is an important part of any financial plan.

• Family succession planning is more than just a Will

• It extends to:

– superannuation– life insurance– joint assets– Powers of Attorney– protecting assets– providing tax relief- and more

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Consider leaving a legacy

• If your estate includes a share-based portfolio or super you may need to rebalance it to remain fair to different beneficiaries

• You can never be too careful, particularly if you are older or in poor health

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Case study

Estate Planning – Social Security

John and Betty

Assets...

• their home

• other assets $660,000 incl. $60,000 in jewellery

Receive $476.60 per fortnight in age pension (combined)

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Case study cont’d

Without estate planning, John receives

• No pension

• No Pensioner Concession Card

With estate planning, John receives

• $88.73 age pension per fortnight

• Pensioner Concession Card

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Seeking advice

We can provide expert advice on:

• Retirement in a market downturn

• Superannuation and pensions

• Investment selection

• Tax effective investment

• Maximising Government benefits

• Family succession planning

• Aged care

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