Whey aye

To keep it really simple and rounded call it $620 billion lent out on mortgages at a 1% net profit margin, $6.2 Billion.That's where people kid themselves they make huge profits.

To be pedantic that isn't really how a bank works. Note 4 in an annual report will tell you how loans are funded,deposits and other public borrowings from stable and well diversified sources.Whether they are current( payable within 12 months) ,or non current ,longer term. Note 4(1) funded from within Australia,term deposits etc $744 billion.$$132 billion of that they are not paying interest on.C'mon people lift your game,at least get some interest out of them. Overseas borrowings $$113 billion,for years it was a 60% local and 40% o/seas Now that seems to be 70 to 75% local and the rest from o/seas.I gave up reading them heavily years ago,I can analyse them to within an inch of their life and it doesn't change the share price or the dividends at all so why bother. Note 3(1) tells you who they lent it to $556 billion in Australia for mortgages,and $65 billion o/seas ( NZ) Basically interest paid to the bank,minus interest paid out is profit ( net interest margin or NIM). You can plough through in more detail but I wouldn't bother,fractional reserve banking can be complicated or simple. CET 1 ratio ( common equity tier 1) the examples are for CBA. CET 1 is regulated,minimum of 10% ,that may have changed. CBA are running on 12% last time I paid attention .Every $100 lent out keep $12 for day to day running expenses and a rainy day.A run on the bank and they have a standby among the big 4 for 2 to $3 billion each to keep confidence in the system.Lent at interbank overnight rates.Common name would be LIBOR,it isn't really worth going into. Lend the money out at 4% ,pay the depositors 2% , then 2% gross profit. 1.1% of that pays wages etc and 0.9 % is taxable profit.

I wouldn't be coming up with strange statements like Perth is too isolated.Australia is isolated.Perth is closer to everywhere.Asia,Europe. To get to Europe we would have a holiday in Singapore or Thailand,then onward. 5 hours to Singapore,7 to Thailand.Try that from the Eastern states.In general for flights on to Europe then pick up the plane in Singapore,10.30 pm or 11.30pm approx.One is the the Sydney/London,and one is the Melbourne/London.They've been on the plane 10/12 hours just to get to Singapore. If Manchester/Liverpool,Preston/ Blackpool etc were on their own would you feel isolated or just a case of a conurbation that has everything anywhere else has. Dirt cheap houses in Perth.The city is long,perhaps 150 klms from outer northern suburbs to Mandurah.However it is a semi circle.Country living in the hills, 50klms from the beach max. $600K gets you a mansion. Check out Hillary's for coastal suburbs around $1 million.Canning vale for inland,20klms from the beach,15klms from the city centre.Shopping is done at suburban centres,think of Westfield in London or Bluewater near Dover.I know those by having shares in the companies that built/ managed them.Westfield and Lend Lease. 3 hours free parking. Retired so don't use cars.Perth has cycle paths everywhere,you can get from anywhere to anywhere.Working is different,you need a car to get to the various industrial estates.Perth is the city of the car. People over east are isolated,they may fly up to Cairns for the barrier Reef,Perth you would fly to Singapore or Bali,not a lot of difference in flight time.Everywhere in Australia is isolated and long distance,it takes a bit of time to come to terms with the sheer size of Australia. Perth also has excellent weather,virtually no humidity,probably the place would never have been built if it was humid.

I think it is a huge mistake to compare prices.Here you can get a car that will last for 15. - 20 years for $20K.This is 20. - 25% of average wages depending where you get the figures from.I wonder what you would get in the UK for £ 7 - 8K. If it is just 2 adults then perhaps an E scooter or an E bike each.Shopping can be home delivered for probably less than the cost of weekly petrol.If children are involved then different story.Being retired we go everywhere on normal bikes,but it would be different when you have to be at work for a certain time. I don't know about Melbourne but Perth has cycle paths from everywhere to get to the city,or to the train station and take a scooter on the train.Bikes can only be taken on the train outside of the morning and evening rush/ busy period. Luxury cars are ridiculously cheap.I've got my eye on a Mercedes S class from 2010 for $22K.As that is the real top of the range the technology in the car should still be reasonably up to date.That should last me the rest of my life.

If it works great.Rules that applied 10 years ago don't apply now. Do a simple cost/ benefit analysis.If I spend $60K a year for the next 10 years I'll have 600,000 points and a free ticket ,I'm the winner.I'm last in line on the plane because it's a ' free ticket'. Just pay for the ticket,less stress, and travel whenever you want,and probably ( I would say definately) cheaper. The seat you will probably win for your free prize will be the middle seat up against the last bulkhead.Where the plane narrows in towards the tail.Where the kitchen and the toilets are

If it works great.Rules that applied 10 years ago don't apply now. Do a simple cost/ benefit analysis.If I spend $60K a year for the next 10 years I'll have 600,000 points and a free ticket ,I'm the winner.I'm last in line on the plane because it's a ' free ticket'. Just pay for the ticket,less stress, and travel whenever you want,and probably ( I would say definately) cheaper.

Banks have internal hurdles and APRA hurdles.They seem terrified to fall foul of either. Just gone through it on a margin loan ( a mortgage on shares basically.) The loan was 10% of the gross value of the shares.If they cannot tick the boxes on the script then you get nothing. Your tax assessment reveals that you don't work.This doesn't tick the box,but you can overcome that hurdle by explaining franking credits and crossover points to enter the PAYG system,the old provisional tax.There is no debt to the ATO that I am paying off. The next hurdle is super.We need a print out no older than than 90 ( 60?) days.Why,it's out of date.Markets are falling.The income is on the bank statements I have provided you with,15th of every month. The bank statement says you have spent xx thousands,in the last week,where has that gone.Markets have dropped, shares are cheap,I bought more.Where is this on your statement of estimated outgoings for the year.When I filled the forms in I didn't know that 3 companies I was interested in would drop rapidly,it isn't normal expenditure.Do you need copies of contract notes,it just adds to the security I have offered you which is out of date every minute as prices move. Then the killer,what is this on the bank statements every 4 weeks that you have marked as UK pension.The aged pension. We need a letter from that pension provider explaining how this pension is calculated.You are not getting one,the UK govt is not going to provide you with one.They gave me a letter stating this is your pension based on the number of years contributed,that letter does not fit in with your 90 day rule.The letter is also in a safe place so I will never find it until I don't need it.Then I will never stop falling over it.The changing amount is because of currency movements.The UK govt does not enter into Forex trading or currency swaps so the aus govt can transfer money to pensioners in the UK at a guaranteed rate and the reverse,pensions paid to me and others at a guaranteed rate. Right at the start you tell them,I need to speak to people with common sense or they know what they are doing,this isn't a run of the mill application.In general you are talking to untrained people that have a list of boxes to tick,it isn't their fault.The bank doesn't want to spend money to train them,they try to help but haven't been trained to the level needed.They can't say they are just as pissed off as me because they are being recorded. While this is always at a level or two up the problems are still the same,you haven't ticked all the boxes so it doesn't happen. You can kick arses at an AGM,collar directors and explain grassroots problems,they will delegate it and you go round and round in circles.

The other obvious things are bring it over here and if you have a mortgage then put it into a mortgage offset account.Next stage,open a line of credit on your house,redraw whatever you are comfortable with and invest it. This turns part of your mortgage interest into a tax deduction.NEVER do anything for a tax deduction only,the investment still has to perform. Three of the companies I gave are recent listings on the stock exchange (ASX).CommBank, (CBA) ,Woolworths, (WOW) and Macquarie Bank ( MQG).Disregard MQG,it is an outlier,a 500 page annual report for an investment bank that operates in around 36 countries is a bit of a bugger and not for beginners.However since listing ( IPO) in 1997 an investment of $7500 has grown to $550 - $600K ( says he with a big smile on his face).This is with dividends reinvested. CommBank and Woolworths are more easily analysed and a good cornerstone.Recent listing means 30 years.So CBA was listed in 1991 by Hawke or Keating,they were having dummy spits at the time so I forget which one was PM.Woolworths was floated out of Adsteam ( Adelaide Steamship),due to the high interest rates back then Adsteam were too highly geared and went bust.Various companies were floated out of it by the receivers to reclaim money for creditors.Woolworths( industrial equity) was listed in 1993 by the receivers. So. 1000 shares in CBA in 1991 cost $5400. 1000 shares in Woolworths cost $2500.Total outlay $7,900. By the end of next year WOW is 30 years listed.Reinvesting all dividends instead of taking the cash means by the end of next year you will have approx 6500 shares in CBA,and 4000 shares in WOW.Multiply the share price by the number of shares and see if $7900 grows to $ 1 million over 32 years.On averages for the dividend yield including franking credits then your income will be $50 - $60K. Opportunities are unlimited every day.If none of these things fit in with what you want to hear or see,then they will never be real or true to you.The only things that will be real or true to you, are things that fit in with what you want to hear or see . Penny wise £ foolish?

You are probably being Pennywise and £ foolish. What would the trigger point be for you to bring the money over here,5% or what as a drop in Forex rates. I'm not a fan of the words opportunity cost but in this case the cost can be high.I invest,have done for decades,some returns for Australian companies for the last 10 years,with dividends reinvested are Comm bank 13.2% per annum. Macquarie bank 26.8%. CSL 24% Wesfarmers 14.7% Fortescue metals 25.1% Westpac and ANZ 7.6% Woolworths 8.6% Rio Tinto 13% BHP 10.7% Woodside 4.8% Ampol ( Caltex) 12.8% These are investing in individual companies,so no fees and charges. The well diversified portfolio in super,my industry fund ( CBUS) averages 9.3% since 1985. The ASX 200 ( AXJOA) annual average rate is 11% roughly since 1/1/1980 ,so $1000 grows to approx $85,000.Before fees and charges Pay your UK pension to catch up,roughly £3 a week for class 2 stamps.The 12 year catch up period may or may not still be going.At present that £3 gets you approx £ 5 a week on your pension What a bargain. If you don't want to start an investing career then put it into super,don't claim it as a tax deduction.Put $200K in now and in 24yrs it will grow to $1.6 million if averages continue Penny wise £ foolish?

Just looked at Woodside ( WPL : ASX).The last 5 years they are down 28%,which of course is the time to buy IF they go back up . You'd need to check out their constant disclosure with the ASX I think they have something cooked up with BHP for oil assets merging when BHP delist from the UK and become the largest company on the ASX pushing CBA down to number 2.There will be closing dates etc and adjustment in share prices so something may be going on there .I don't follow either company so you would need to check.Last time I looked at WPL was around 1998 I think,just finished a project,WA was in a bad way and the share price was around $6,I didn't buy them

How long have you held Woodside for?.That would be the last company I would buy. As a long term shareholder in Wesfarmers they are great,how many years have you got left?Once in a while they give CAGR.,this year they did,19% since listing in 1984.That means $1000 invested in 1984 is $669,000 by 30/6/21.All dividends reinvested etc The last time they did it was around 2014 or 15,then it was around $300K..For longer term the original £1 spent when the little farmers co-op kicked off is now around $3.9 million,1914 to 31/12/21,without reinvesting dividends Some wealthy farmers in the wheatbelt here. If you pay tax and get a UK pension then don't forget to claim the undeducted purchase price ( UPP) at question 20 L in the supplementary section,the UPP is 8%. Otherwise claim back the franking credits from Woodside and ANZ from the ATO .The crossover point for paying more tax is approx $140K.Thus your net dividend will be $98K paid into your bank account for the year,the tax paid is $42K,so roughly no further tax to pay as the franking credits cover it.This does not include Medicare levy.More than $140K gross and you will get a bill from the ATO,and pay PAYG tax at their estimation,the old provisional tax. If you ever want to have a problem then paying a lot of tax is the problem to have,it means you have a lot of money in your pocket. Woodside,I'd be thinking long and hard about that,if you buy them I hope it works out for you.

CTP is not 3rd party insurance for vehicles,it is for personal injury/ medical for everybody except the driver at fault ( in WA).Other states it is also not for property ,only medical. Covers pain and suffering Past and future economic loss Claims management expenses Care and support including medical treatment and rehabilitation . This can amount to $millions for catastrophic injuries and care for life. If you drive a car you need insurance,rego does not cover you. Mine is due the end of this month.The breakdown is for a V8. Rego. $424 Insurance (motor injury) $378 GST ( VAT) $37 Insurance duty $41 Recording fee$10. Rego clearly states vehicle licence and motor injury insurance policy . Get insured for property,you are not covered

It is now a mean,lean world.Super funds have screwed the little man/ woman to an extent. Before they became the major shareholders in all companies the companies would have shareholder benefits. Coles for example would offer shareholders 5% discount .The qualification was you needed to own 500 shares in Coles,then ( say 2000) that would cost around $2 to 3K .You showed your card at the checkout and got 5% discount,it was a good little scheme. Along with the discount you also picked up the annual dividends .Reinvest the dividends in more shares and there was a discount on the price of the shares,any where between 2.5% and 10%,depending how desperate they were for money. Coles being a large company would probably have been 2.5%,an incentive for the small shareholder to increase their shareholding,and of course their wealth. Banks were great at the shareholder benefits,an extra .5% on term deposits.Free travellers cheques,reduced mortgage rates,no monthly charges on mortgages when they had them.No fee credit cards .The super funds stopped it all on the basis of ,we own millions of shares in these companies and cannot use these benefits .Why should somebody with $5 or $6K in shares be rewarded . My credit card was always free,as a shareholder,long stopped,2006 I think. My card is grandfathered so I never pay any fees .Once or twice they have tried to move me to a different super dooper card,which means I am no longer grandfathered,and would pay fees.I have some good fun with them saying move it tomorrow,charge me fees and it is cut up as soon as you charge any fee at all on it.They are not happy with me,fee free until the day I die ,with all the benefits of the most expensive cards.I think there is 2 business class tickets to the UK sitting there that I can't use until travel is open again.

Doing the obvious and checking my last statement in my union fund ( CBUS) average return since inception ( 1984) 8.98%. This of course includes the crash of last year.Prior to that the average was 9.29%.I would expect with the bounce back on world markets the average will be above 9% again when the next statement comes in August this year,if markets don't crash or pull back.Working on 9% just makes the mental arithmetic much easier for the compounding calculation. Now the tricky bit,I think I was earning around $19K per annum in 1984.Would you be able to compound that @ 9% to the present day .The really clever bit,would you be able to work out the real return,and the nominal return?

I would suggest you do a bit of thinking,and as said,a simple compound calculation. Obviously a 'fat finger mistake'.You'll find super came in around 1986,as did union super funds .Aus super being the largest.We gave up a 3% pay rise to start super under the Hawke Keating accord. Wages were around $25 K per annum.Compound that for 40 years @ 9% and it grows to $800K,how easy is that. Today compound $85K @9% for 40 years and it grows to $2.72 million,stretch it to 48 years and $5.44 million. Just continue to buy lottery tickets shall we,a lot easier than thinking for a few seconds isn't it.