14th April 2008
Another update, yes I know I should get out more often. Finished up the latest course recently and on the last night I happened to get asked a couple of very good questions about monitoring your super. I gave what I thought was a reasonable answer at the time but I have thought about it some more and decided that I wanted to address the issue in a little more detail. Click here for the article.
One of the areas we spend a bit of time on in the course is 'knowledge'. The trouble is some people equate knowledge with the amount of information they receive. Information can lead to knowledge but it has to be the right type. This led me to think about the fact that living in the 'information age' doesn't seem to have led to an increase in the level of knowledge we possess. Click here for the article.
Lastly the course has been changed to add a follow up session. This will allow you to have a go at the process and then come back and ask questions. We will also discuss current events and see what impact they have on the process.
A number of people have asked about a follow up in their feedback forms in the past so to cater for all the people who have done the course already a follow up session is being organised for the 24th July 2008. Adult ed is planning to contact everyone who has done the course so you should hear about the follow up session soon.
10th April 2008
I have been pretty busy this week and so there are a few additions to the site. The recent unravelling of the easy credit party and the reactions of some people to it has got me thinking more about psychology associated with investing. I intend to write a number of articles covering various aspects with the first couple addressing expectations. The first deals with the impact of expectations (click here for the article) and the second with managing expectations (click here for the article).
The participants from the current course are, I am happy to say, a great bunch of tight arses and so I have updated the list of money saving tips to include their contributions (click here).
Finally I have written up some additional material on the spending and debt rules.
3rd April 2008
I am on a roll here. Another update in just a few days. Whew, this just shows that rainy weather is good for more than watering the veggies. I found and fixed a couple of typos in the magic number article. I have also written another article to help people understand how to construct your desired life (click here for the article).
26th March 2008
Been a long time since the last update but thankfully people are still interested in the course and so it continues to be run. I have expanded the article on calculating the Magic Number to give more examples and details of each step (click here for the article). I also found a problem with the Tax and Inflation spreadsheet. It now calculates the starting amount automatically and more accurately.
29th October 2007
Questions from participants in the latest course has meant more changes to the available spreadsheets. I have update the millionaire spreadsheet to allow you to deal with situations where you already have some savings (thanks Mackenzie). I have also renamed this spreadsheet to 'saving_scenarios'.
I have rejigged the magic number spreadsheet so that it mirrors the course material and allows you to do the complete magic number calculation in the one spreadsheet. This means that it gathers all the required information at the start and then allows you to test against inflation and tax and calculate how long it will take for you to reach your magic number.
29th July 2007
I have made some changes to the magic number spreadsheet as a result of a question from a participant in the current course (thanks Martin) about how to calculate the magic number if you want to have some of your capital left when you FOTT (fall off the twig). Previously the spreadsheet assumed all the capital was to be spent. So the new improved spreadsheet now enables you to calculate your magic number when you want to keep some of the capital. I also noticed that you couldn't add a safety buffer so I have corrected this omission.
I have added a new spreadsheet (inflation and tax) which allows you to measure the impact of inflation and tax on the initial calculation of your magic number. This only gives a rough guide as it is difficult to show the full impact. Both inflation and tax rates will vary over time and the amount of tax you pay will depend on your personal circumstances. Despite this limitation it is a very useful sheet for getting an indication of the impact of various levels of inflation and tax.
I have also added some instructions on how to download the material on the download page in the FAQ.
An interesting article in the Australian Financial Review (20th July -"Super advice found wanting") caught my attention. The article stated that a researcher has found that 'the 400 billion dollar financial planning industry is concentrated in the hands of large institutions and does not pass a test of independence'. No really! The researcher goes on to say that major financial planning groups don't offer industry funds (these funds often have much lower fees) on their approved lists of products that they offer to their clients.
In the same edition of the AFR there was a small article that reported on research which shows that our (ie Australians) ability to save is deteriorating in the face of mounting debts. Presumably the recent increase in inflation which many people believe will result in an interest rate rise in the near future will simply exacerbate this trend. Hmmm dare I say remember the big fat hairy secret?
16th July 2007
Phew, two updates in three days I really need to get out more!. Still it's best to strike while I feel inspired. I am sure I will get hit by the lazy stick soon enough. I have finally confessed my 'anti property shame' in a new article. Adult Ed has also scheduled a new course for the Spring semester. Based on feedback received so far we have added an extra session to the course so it will run for four weeks instead of three. The next course will run from the 4th Oct to 1st Nov 2007.
14th July 2007
Just finished delivering another course. Another great bunch of people, there is no doubt I am one lucky adult ed tutor (don't you just love it when I suck up! - its the truth though). The feedback from the course has inspired me and I have written another article (this one on tax) and added a new entry in the FAQ.
12th July 2007
Some really interesting questions and comments have been raised by the people in the latest course so I have written a couple of new articles. One expands on the spending rules (click here) and the other goes into more detail regarding the calculation of the 'magic number' (click here).
I have also started a list of tips on saving money and because we are class here I have christened 'tight arse' - sorry but I just feel so comfortable in low brow land. Many thanks to the contributions of the participants on the latest course. This list will expand over time as we get more suggestions and ideas. My favourite is the one where this guy used to safe money by reusing the tea bags he used to make cups of tea for his dinner guests!
Surprise surprise another property finance/development company (Bridgecorp) has gone pear shaped. That's the fourth collapse in under 2 years. This one is based in New Zealand but has an Australian subsidiary so unfortunately even more people may have lost money. I wonder how many more of these types of corporate implosions we can look forward to?
18th June 2007
Only a small update this time folks. I have added few more questions and answers to the FAQ.
13th June 2007
I have added a rant. I love a rant and if you do to then email me your rant. If I like it, I will post it. My gaze has fallen on the recent string of failed property development companies (click here).
I have also rewritten sections of the ok smarty article (click here). I know I should leave them alone once they are up on the site but I can't help myself.
11th June 2007
I have written the first of what I hope will be a number of articles in the additional resources section. First off the rank is Ok smarty, now what ?. This article covers what to do after you have finished the course and are wondering what to do next.
10th June 2007
As you can see the website has been revamped to provide additional assistance to course participants and to address feedback from participants in the first course that ran during May. Here is a quick explanation of what is on offer.
You can now email me with questions, comments and suggestions. Come on, email me you know you want to ..... ah come on now don't make me beg.
All handouts and practical activities from the course can be obtained from the 'download' page.
The 'Additional Resources' link in the menu is where you will find additional explanations and material on the key concepts of the course. The rate of expansion of this area will depend on my time and people's requests.
Phil's rants will contain my comments and opinions on events and people that are relevant to the course. As an example I have had a few thoughts about the recent rash of property development company collapses. I am currently putting fingers to keyboard about this and will add the article as soon as it is ready. The intention is to show the impact of using (or not) the principles used in this course.
As the name suggests the FAQ will contain answers to all the questions I get asked about financial independence and other stuff.
If you want to read a bit about me and why I am running this course click on 'Presenter profile'. Sorry I can't promise it will be interesting. If you want to learn more about the course click on the 'course details' link.
If you have any feedback on the site or the course please email me and I will create a feedback page and post these comments. Yes I promise, all comments will be posted not just the 'nice' ones.
If I find any interesting/ relevant websites I will create a links page. If you find anything interesting please email me and let me know.
Lastly If you want to enrol in the course please go to the Tasmanian Adult Education website.