Noel Whittaker says longer life throwing up money challenges

It’s been three decades since Noel Whittaker wrote a financial self-help book that sold millions of copies and was named one of the most influential publications of the 20th century. Now he’s written another one.

WHITTAKER’S WIT

IT’S been more than 30 years since Noel Whittaker wrote his best-selling financial self-help book Making Money Made Simple. The book, which explained building wealth in a plain-speaking, no nonsense way, went on to sell more than 2 million copies and was named one of the most influential publications of the 20th century.

Now the 81-year-old financial guru is back with a new book Retirement Made Simple aimed at the millions of Australians preparing for their twilight years.

“When I wrote the book back in 1987, it sold millions of copies,” Noel tells City Beat. “Now the people who bought that book are 30 years older and are facing an increasingly complex financial world as they approach retirement.”

Noel says that with people living on average more than 80 years, long-term financial plans were becoming vital. He says COVID-19 has exposed the risks of making hasty, short-term decisions about investments. “COVID-19 terrified a lot of people who rushed to cash out their shares,” says Noel. “But the ASX is up 42 per cent since then.

Finance guru Noel Whittaker.

NOEL’S TOP TIPS

1. DON’T MIX STOCK MARKET STRATEGIES: You have to decide whether you are a long-term investor or a trader - do not mix the strategies. Direct investment in stocks can be interesting but you would be hard pressed to beat professional fund managers over an extended period.

2, ADD VALUE TO YOUR HOME: The key to buying residential real estate is buy well and add value, which is easier to do with a house than an apartment. Residential real estate feels safe but the returns can be exaggerated as can the costs. Your own home is exempt from capital gains tax and also from Centrelink assessment.

3. DON’T TAKE FINANCIAL ADVICE FROM CELEBRITIES: Investments that offer higher than average returns are a major red flag.

An endorsement from a celebrity is another red flag. Always investigate an investment opportunity in detail and never invest purely on the recommendation of other investors. A “free seminar” can be one of the most costly events you ever attend.

4. GRANNY FLATS CAN BE A CONCERN: A common arrangement can be parents selling their home and using some of the proceeds to build a granny flat at the home of one of their children. Divisions can occur if other siblings see this as a way for one child to curry favour with the parents. Further as parents age they may need more care than the son or daughter can provide. There also are ramifications with capital gains tax and Centrelink.

5. BEWARE LATE LIFE ROMANCES: Older people marrying long time friends after their partners die is more common than you think but can have implications for estate planning. For example if a couple in their 70s or 80s marry and move into a retirement village unit, if one partner dies under the laws of joint tenancy the unit automatically passes into the ownership of the surviving partner. That can cause a lot of friction with the family of the deceased person who were expecting the asset to form part of the estate.

PAY DAY

QUEENSLAND now has its own version of the hugely successful tech giant Afterpay. Loganholme-based Gimmie, founded by Scott Roworth and Nadine Tuckey, launched in April with plans to disrupt the billion-dollar rent-to-own sector by setting up an online marketplace selling big-ticket items such as appliances, computers and furniture.

Roworth says the model is simple - consumers can pay a cash price within 90 days or opt to pay a bit more under a plan price with instalments over one or two years. There also is a $10 late payment fee.

Scott Roworth and Nadine Tuckey launched Gimmie in April.

Roworth says that unlike Afterpay which operates via a mobile app, Gimmie is an online marketplace offering close to 1000 products from various brand partners including Samsung, Apple, Fisher & Paykel and Nikon.

Roworth says Gimmie concentrated on more expensive one-off items that used to be purchased with credit cards or under traditional rent-to-own models.

He says the finance industry needs to change especially in the rent-to-own space where consumers face many “tricks and traps” and can end up paying up to five times the value of an item without any guarantee of ownership. Roworth says that after initially launching in south-east Queensland, the company has expanded nationwide.

TATTS NOT FAIR

THERE are some mutterings down at Tattersalls from senior members being slugged with higher annual subscription fees.

Tattersalls president Michael Paramor has asked seniors to contribute more after a challenging year impacted by COVID-19. City Beat understands that fees for seniors, who have been members for more than 35 years, have gone up from $80 to $150. While most seniors have accepted the increase, others are not so happy.

The Tattersalls Club in Brisbane’s CBD.

Paramor says Tatts has navigated the challenges of the year thanks “to the tremendous support of our members, the earlier than anticipated opening of the club and importantly, the cash injections from government initiatives such as JobKeeper.”

He say the hikes in 2021 subscriptions, which also apply to other members, will allow the club to manage the effects of COVID-19 and to invest in some improvements.

“I recognise the many years of membership of our senior members and the subscriptions paid to Tatts, let alone what has been put through the Members’ Bar and Dining Room,” Paramor says.