by Jodie | Jul 3, 2015 | General
A big Thank You to the team at Ord Minnett for the following analysis on what a Yes or No vote will mean in the Greek Referendum on Sunday …
We draw on work from our global counterpart to understand what a “yes” or “no” in Sunday’s referendum could produce. Either way, the path for Greece has become even trickier. It almost goes without saying that investors should not expect a quick fix to the situation, although a “yes” vote is likely to provide some relief for markets in the near term.
Firstly, it now appears inevitable that the Greek referendum on “the proposals from the institutions” will go ahead on Sunday. Under the scenario of the “yes” vote succeeding, outcomes are ultimately likely to prove stabilising but could be volatile in the meantime. Key uncertainties relate to who will govern Greece and what will be negotiated in the aftermath of the second bail-out program’s expiration.
Under a “no” vote, positions on both sides are likely to harden and the situation worsen rapidly. This raises risks of more extreme political and economic outcomes, including of course, a Greek exit from European monetary union.
Yes, with a complicated path towards stability (60% probability)
- Given the greater probability based on polls, this represents a base case scenario. A “yes” vote likely means that PM Tsipras stands down and a national unity government is formed under technocratic leadership. (Readers will recall Greece operated under a technocratic government led by former ECB member Lucas Papademus in late 2011 and early 2012, which added stability for a time). Such a government would have a mandate to secure a deal with the Eurogroup and begin to implement it. Although the terms offered previously are simply not on the table any more, not least because Greek circumstances have changed.
- A unity government engaged in constructive negotiations would imply an ECB which keeps rolling emergency liquidity and works cooperatively with the Bank of Greece to ensure that the country’s payments system still functions. However, the difficult issue of how the banking system will be gradually returned to full function would also have to be addressed. This is amid little willingness on the creditors’ side to allow large increases in liquidity or to provide funds for banking recapitalisation. Any return toward full function will take time.
- This scenario will likely produce expectations that elections will follow by early 2016 at the latest.
- Although Tsipras has made remarks that he will stand down if the vote is “yes”, he is clearly not bound by them. This represents a second scenario, in which he attempts to continue as PM and returns to negotiations. But there has been a complete breakdown of trust and process. As a result, the terms of any subsequent agreement are likely to be extremely detailed and embody an onerous oversight regime. Negotiations over a program will therefore be protracted. It is also worth noting that the demand for debt restructuring from Greece “up-front” has not been dropped. With Tsipiras still in power, the ECB will likely continue to roll emergency liquidity support, but the support for banks would be limited and the negative effects created by capital controls will still exist. It is easy to imagine the ECB setting a deadline beyond which emergency liquidity would cease, effectively forcing Greek authorities to conclude a deal by a certain date or face the permanent closure of the Greek banks as euro-denominated institutions.
- A third alternative is for Mr Tsipras to call a snap election after a “yes” vote. Such a process would normally take a minimum of three weeks. But given the rapidity with which the referendum has been called, there may be means to expedite this. This would put the rest of the region in the difficult position of having no one to negotiate with who has the authority to make commitments that will bind the incoming administration. It is also unclear exactly how the platform of the major parties would evolve in a new election campaign. Could Syriza (or at least part of it) shift to campaign on the basis of Euro-exit? And how does the rest of the region try to keep some minimal functionality in the Greek economy? A new elections scenario is inherently unpredictable and possibly chaotic.
No, with a slide towards more extreme stress (40% probability)
- Although PM Tsipras has argued otherwise, many in the rest of the region see the referendum as a means for Greece to decide about Euro participation. In the wake of a “no” vote, there is likely to be a split within the rest of Europe as to how to approach the situation. The European Commission and France (and possibly others) will argue that negotiations should continue with the aim of finding agreement. Others will return to negotiations with their positions hardened against a newly emboldened Tsipras.
- The “no” vote would put the ECB in a very difficult position. On the one hand, the absence of agreement on a program will lead some to argue that emergency liquidity should halt. This would lead to the bankruptcy of Greek banks while minimal functionality of the payments system in euros would be extremely difficult to sustain. Greece would have little option but to announce a redenomination into a newly launched currency and to nationalise its banks in this scenario. Of course, redenomination brings with it the spectre of hyper-inflation for imported good & services.
- Even if the ECB chooses to continue emergency liquidity, the limits on the current measures will tighten through time as deposits are withdrawn. Moreover, if the “no” vote creates doubt that the banks will ever reopen, credit cards and electronic transactions will no longer be acceptable as a means of payment in many instances within Greece (even if the Greek state tries to legislate otherwise). Businesses will stop transacting goods & services in return for a bank balance that cannot be turned into cash, and is likely to be redenominated.
- Combine this with the potential interruptions to the logistics of food, energy and medicine supply created by capital controls, and it is possible to concoct very worrying scenarios indeed. We can imagine the ECB being forced to consider small increments to emergency liquidity simply to retain some value in the claims on bank deposits as a means of exchange, and hence to keep electronic transactions between agents operating within Greece functioning. The balance between that and the ECB’s statutory obligation to lend only to solvent institutions will be extremely difficult (and perhaps impossible) to find.
- A best guess is that a “no” vote would require a political intervention that hasn’t yet been forthcoming in order to bring Greece back from euro exit. And the dynamics of worsening banking and payments dysfunction would shorten the timescale for such an intervention to a handful of weeks at most.
All eyes on Sunday.
by Jodie | Jul 1, 2015 | Debt Management, Economy, Money

What has happened?
It’s déjà vu for investors as the birthplace of Western civilization, Greece, once again teeters on the edge of economic collapse.
It marks the latest in an ongoing series of crises for the country after major debt restructuring packages were struck in 2010 and 2012.
But with negotiations between Greece and its creditors breaking down, markets have declined amid concerns of a potential Greek default. However, it’s important to keep the situation in context.
“We will respect the decision of the Greek people, whatever it may be.” Greek Prime Minister Alexis Tsipras.
The size of the $US240 billion Greek economy is about half the size of the New South Wales economy. Greece owes creditors approximately $US350 billion. By comparison, total US national debt currently stands at approximately $US18.6 trillion.
Possible macro-economic impact
European institutions and countries may prove they are able to absorb the losses of a Greek default, although Greek citizens would have to bear the brunt of a failed economy and potential exit from the European Union.
Markets around the world are inter-connected, so concerns lingers about the potential knock-on effects if Greece leaves the EU, with some commentators wondering whether other struggling countries could follow, prompting further losses and destabilizing in Europe. The ongoing uncertainty has prompted a new round of market volatility and uncertainty.
Key Points: The Greek Crisis
- Greece’s current bail-out program, last negotiated in 2012, expired on June 30.
- Greek Prime Minister, Alexis Tsipras, walked away from negotiations with the European Commission and instead called a referendum for July 5 to let the people decide.
- The Greek stock exchange and banks have been shut with ATM withdrawals limited to 60 euros a day.
- While Tsipras supports a ‘no’ vote to use as a bargaining chip at the negotiating table, European leaders have warned it would likely lead to Greece’s exit from the EU.
How will this affect my investment portfolio?
The Greek referendum announcement surprised investors, prompting a decline in the value of the Australian and New Zealand share markets. Meanwhile, Australian, New Zealand and US bond yields – typically a safe haven for investors – also weakened.
This response is reasonable: markets are expected to become more volatile when the outlook becomes uncertain.
“The confidence effect of a deal, the predictability it would bring, together with the injection of liquidity into the economy from disbursements will restore job creation and growth.” European Commission President Jean-Claude Juncker.
What should I do?
“The IMF also will continue to carefully monitor developments in Greece and other countries in the vicinity and stands ready to provide assistance as needed.” IMF Managing Director Christine Lagarde
While an increase in short-term volatility is to be expected, it’s important to remain focused on your medium-to-long term investment goals during times of uncertainty. I continue to look to keep your investment strategy on track, and note that the Wealth Planning Partners team are always available to discuss any questions you have.
by Jodie | Apr 10, 2015 | In The Media
For Amanda cassar, there’s nothing better than helping others with her financial planning business. Here’s her story…
Tell us a little bit about your business:
We are a financial-planning business based on the gorgeous Gold Coast. We have a team of five advisers that help our clients Australia-wide with ‘the WPP way’ to secure, build and succeed. We devise strategies to protect everything you’ve worked so hard for, devise wealth creation tools for the future, and put it all together to help you succeed in reaching your goals. We specialise in risk insurance and superannuation (especially self-managed superannuation).
What do you love most about what you do? When I meet clients, there’s often a bit of despair over the finances, and I love that I get the opportunity to help them. There’s complexity to people’s financial lives and I can help make this overwhelming jigsaw puzzle come together in a way that’s easy to understand and helps put a smile back on the faces of my clients. The paperwork can be a bit much, and for most people, financial literacy has never been taught, so it’s quite daunting. I love that I can help my clients achieve what they often didn’t think was possible.
If you could do any other job, what would it be and why? I’d be a warrior woman against injustice: feeding the poor,
by Jodie | Feb 25, 2015 | Money, Savings

Did you ever think that you may have some long lost money in bank accounts that you’ve forgotten about. The Australian Securities and Investments Commission’s (ASIC) MoneySmart website has an unclaimed money search.
There is around $1 billion in lost shares, bank accounts and life insurance.
Unfortunately, when I did a search I couldn’t find anything in my name, which was a little disappointing, but also means I must keep a pretty good tab on where things are.
But, here’s a tip. Run a search with only your surname. You may find relatives that have unclaimed bank accounts and they may just be very grateful for the discovery. I found over $2, 200 sitting there for my brother-in-law and have left a message to let him know… And $5 for my father-in-law and $78 for a client.
Hey, it all adds up! Give it a try here: https://www.moneysmart.gov.au/tools-and-resources/find-unclaimed-money/unclaimed-money-search
Good luck with the search!
by Jodie | Feb 25, 2015 | Budget, Budgeting, Debt Management, Finances, Retirement, Savings, Superannuation

1. Never learning to budget.
Every dollar earned does not need to be spent. Have a financial plan and rigorously stick to it. Budgeting also means having a regular saving plan in place.
- Buying a new car and thinking it’s the most important thing in your life right now.
Most 20 year olds will try and move heaven and earth to have that new car, but when the novelty has worn off and the bills start arriving, most wish they had settled for something more affordable. Payments of a new car lasts for years while the car drops in value every year, not always a smart thing to do when you are just starting off in life
- Thinking that retirement is to far away and not planning for it now.
Many young, give absolutely no thought to retirement, as 65 is so far away. Yet if we start early by taking an interest in Superannuation and personally contributing to it, even in small amounts, the benefits will speak for themselves down the track. It will make all the difference between having a comfortable one as opposed to struggle street. And think of the compound interest over the next 40+ years!
- Trying to keep up with your friends.
Having the latest gadget every time one comes out or the newest iPhone is a never-ending pursuit. Your phone is already outdated the day you buy it so think carefully and maybe try waiting just that little while longer before updating your hardware.
- Not paying off your student loan.
This debt can hand around your neck for many years. Try paying it off as soon as possible, financial freedom will soon follow.
6. Not having a plan for post university life.
Think carefully about your chosen career, how much will the debt bill be at the end of your student days? How easily will you find a job? Always have a plan and then have a plan B as well.
by Jodie | Feb 3, 2015 | Budget, Budgeting, Finances, Money, Savings, Wealth
I read a recent article about why so many people feel they cant afford to save money and thought I would share some of the insights.
It seems that for some, saving money could feel like losing money. It feels like they seem to just be putting money somewhere, never to see it again. The article in turn, gave this advice, it said “picture your prosperity, have a goal when saving, whether for a house, new car or even that trip overseas.”
The problem seems to be how we view money. It’s our perception of it that can make all the difference. For example, when a group of people were asked if they could save 20% of their income, most said no it was not possible. When asked the question in a different way to another group, they responded very differently to the first group. They were asked, if they could live on 80% of their income and most in this group said that it would be possible.
It seems that when the focus changes so does the way we think about saving. Think about the money you do have as opposed to the money you don’t have.
One suggestion was to try and automate your savings plan, your bank can easily arrange this or you can simply set it up online.
There you go!! No more excuses!! Start today!!
For more tips on saving, check out our 12 part series coming to you month by month throughout 2015.
by Jodie | Feb 2, 2015 | Business, Finances, Interest Rates

2015 Has started on an interesting financial footing, the dollar is weaker trading at just under 80 cents to the US dollar, oil and subsequently fuel prices are down. I haven’t seen fuel at this level for a couple of years.
Asian giant, China has had the lowest growth in 24 years, and this will negatively affect exports from Australia to China. Miners like BHP and Rio Tinto will feel this weakness, as will investors and shareholders.
The dollar has dropped significantly from only twelve months ago, not good if you are planning for that overseas holiday of a lifetime. The weaker dollar though may yet be a blessing for exports and the economy.
There is also talk of further interest rate cuts. How low will they go? Only time will tell and it will also depend on consumer confidence.
So hold on! We are in for an interesting ride this year…
by Jodie | Jan 29, 2015 | Budget, Budgeting, Finances, Savings

Ok, I can hear you groaning, and it’s hardly a light bulb moment, but have you really thought about it? Really, really tried to spend less? Unless you’re all over your budget and manage it well, it’s hardly likely. So before you get overwhelmed, throw your hands in the air and admit defeat…
Work out why you want to save in the first place? Is it to reduce debt? Go on a holiday? Save for a wedding? Keep the goal as your focus! Put up a great big pic of why you want to do this!! It’ll keep you motivated, with your eye on the prize!
Then, just break it down into a manageable format. We’ll start with what used to be our basic needs: Food, Shelter, Clothing.

What are the biggest areas you can save in?
GROCERIES/FOOD: Ok, this is a big one! Do you shop daily or a few times a week, or just do one big shop every week or two? Neither are wrong, but do you know what you’re actually spending on food, including those top-up shops? Lunches? Coffees? Dining out?
It’s worth keeping a shoebox or spike handy for a month and just throwing all your receipts in so you get a good idea of how much you’re spending. Chances are you’ll be surprised, and can cut down. Maybe even skip a week of groceries – put the money towards reducing debt or go towards the goal, and start using up all that ‘stuff’ in the pantry and freezer that’s been just sitting there.
There’s plenty of websites now that can help you turn a couple of grocery items into a meal. Packing lunches definitely helps you save, and even just reducing the number of bought coffees can pack a punch. Throw the savings into an old fashioned piggy bank for a month and see what you come up with! Will that help you in attaining your goal?
Can you take advantage of savings at the end of the day as supermarkets do their biggest markdowns before the doors close? Is it worth visiting the local farmers markets on a weekend – sometimes they’re dearer, sometimes not!
It may be worth setting yourself a weekly limit that you’re no longer prepared to go over whilst you get on top of things. As an example: Get out $100 cash for a single, more for a couple or family. When the funds run out – so do you! Can you use up what you have left in the fridge? How will you manage? Time to invite yourself over to mum’s for a dinner? Or will you keep the baked beans on toast as a last resort? Give it a week and see how you go.
Some have found getting a few friends together, doing batch cooking and swapping meals can provide great variety and lessen your workload. If you’re the spaghetti master, swap a couple of serves with your friend who does the best chicken casserole ever… You might just find all sorts of inventive ways to stay well fed!
If you’re a shocking impulse buyer, try on-line shopping. Search by ‘Unit Price’ to see what the best deal is… It takes the guesswork out for you. There’s no temptation then. Stick to your list and try and schedule delivery for a fee free day.

HOUSING: Usually our accommodation costs are the highest. So, can you look for a cheaper place to rent? Can you ask your bank for a lower interest rate on the Mortgage? Is it worth refinancing? We’re at record lows for interest rates, so take advantage of it!
Maybe the costs of moving would outweigh small savings, so make sure you give it a good investigation. Can you rent out a spare room to a mate or student to assist with costs? Even for a year or two? Every bit can help you move forward!

CLOTHING: Ok, I’ve got an overflowing wardrobe, and around 60 pairs of shoes, so maybe I’m not the best one to tackle this… but you know what, I’ve also got pretty much everything I need (and then some.)
I’ve been told ‘You can only wear one pair of shoes at a time’ (much to my disgust and despair) and only one outfit. So, go through your wardrobe. If you haven’t worn it for a year, chances are you probably won’t again. Can you sell it off on Ebay? Get some stuff cleaned out at a Garage Sale or even give it to an Op Shop or friend in need.
Most of us have way more than we need and can put off new purchases – especially if the whole motivation is ‘it’s on special.’ Walk away, and think for 24 hours at least. If you still desperately ‘need it’ then maybe you do. Otherwise, is your goal more important? What’s the focus? If it was worth $60 – can that amount get transferred to the goal instead?

Ok, that’s only three areas, but you get the idea. Are utility bills killing you? Can you swap around providers? Try some comparison websites. Shop around for phone contracts, credit card providers, electricity and gas options. For big purchases, it is cheaper on Ebay? Can you get away with second hand?
Always keep why you’re doing this in focus? If the end goal is bigger than your immediate need, you’ll find out lots more ways to be frugal. And there’s heaps of other people on the same journey. Type in savings websites and see how many you come up with. You don’t need to be a genius. The tips are already out there… just go find them!
Let us know if you’ve also come up with some other nifty savings ideas. We’d love to hear from you!
by Jodie | Jan 29, 2015 | Budget, Budgeting, Debt Management, Finances, Savings, Wealth

At Wealth Planning Partners, we often hear people say “I’ll come and see you when I’ve got money.” It’s a bit of a cliche, but unless you win lotto, that’s not going to happen. We’re the ones who help you plan… and keep you accountable!
We also realise that building wealth is a great idea, but for many, saving money is far more important to start with.
To that end, we’re doing a series throughout 2015 with our Top Savings Tips – with one new Hot Tip being published each month.
Keep any eye out to see if any can help you.
Our first Tip is Spend Less! and that blog is coming your way real soon! Sign up for all our articles so you don’t miss any of our Hot Tips 12 part series!
And if you’ve ever been given a Hot Tip that’s saved you a bundle – we’d love to hear about it. Don’t be shy! SHARE!
by Jodie | Jan 20, 2015 | Advisers, General

We’ve started 2015 with a Bang!, moving into our new office space in the Eastside building, Robina.
You’ll now find us at Suite 110, Level 1 Eastside, 232 Robina Town Centre Drive, Robina. When visiting, entry is via Waterfront Place and there’s lots of 2 hour covered parking under the building.
Skye from Liquid Espresso on the Ground Floor would love to fix you up with a cuppa when you drop by and point you in the right direction.
Please update our contact numbers too, with the new office number 07 5593 0855 and the new fax being 07 5593 1922.
Emails, postal address and mobile contacts all remain the same.
Don’t hesitate to drop by and say g’day if you’re in the area.