| Think Ritch NO, my spell check is not broken. You | | | | Now they can make a brand new car for $13 000. |
| should always be thinking richly, and occasionally you | | | | Remember when digital cameras and DVDs were |
| should visit the archived newsletter section of the | | | | over a thousand dollars? Now they sell them in the |
| invest-org-au website. There you will find a wealth of | | | | grocery stores!) |
| information, ramblings and also be able to "back | | | | Australia buys a lot of manufactured goods. Over the |
| trade" to see how much money my previous | | | | same timeframe, the cost of raw materials (coal, oil, |
| ingenious tips would have made for you... | | | | gas, steel, wheat, cattle, aluminium and gold) has |
| With the above, the "Think RITCH" refers to a little | | | | risen, again quite dramatically in the last few years. |
| acronym for "Refund of Imputation Tax Credits". | | | | Thinking again of Australia as a business that buys |
| Even if you are NOT a tax-payer, if you receive a | | | | and sells things, that puts us in a good position. We |
| pension or benefit that is tax-free, you can still get | | | | are buying things for less, and selling things for more. |
| extra RITCH. If you do NOT submit a tax return, | | | | China is paying more for our oil and cotton. We are |
| you can still lodge a single page RITC form to the | | | | paying the Chinese less for the toys and clothes. |
| Australian Tax Office and you can get FREE MONEY | | | | Australia is turning a profit! |
| (a refund of your imputation tax credits. This is | | | | For most of our short (two century) history, |
| because Australian companies usually pay tax on their | | | | Australia has seen its "terms of trade" (what we buy |
| profits before they pay the shareholders. Often they | | | | compared to what we sell) going slowly down... We |
| pay more tax than you would, and as an owner, you | | | | were always buying more than what we sold. Poor |
| can ask for this back). | | | | little Australia, way down there, away from our |
| Note that it is nobody's job to tell you this... If you | | | | colonial cousins. You could almost feel the pity as the |
| are entitled to get money back from the Australian | | | | foreigners paid us for our exports, and then took |
| Tax Office, do not expect them to call you and say | | | | back all the money (plus more) as we imported |
| "Ah, we have $945 of your money, would you like it | | | | everything we needed. |
| back?" It is NOT gonna happen. Do not wait for the | | | | Foreign accounts (Australia's overdrafts) are now |
| ATO to call you. Do not expect your accountant or | | | | getting less, as we pay off more debt. The sale of |
| Financial Planner to call you and tell you (unless they | | | | some of our assets (eg. Telstra) has also helped to |
| are REALLY nice and good at their job). | | | | pay down debts owed to others, thus saving us |
| It is up to you to ask for the money. To quote | | | | interest payments. Now in 2005, for the first decade |
| Jesus out of context, "You have not, because you | | | | since 1788, we are cashed up and profitable, taking in |
| ask not". Pensioners, self-funded retirees and any of | | | | more than we send out... Australia, stand up proudly |
| those who earn less than $60 000 could definitely | | | | as the rest of the world increases its debt. Australia: |
| benefit from ownership of Australian shares and/or | | | | still the best, and getting even better! |
| managed funds. Check with your accountant or call | | | | America owes trillions to China, India, the Middle East |
| the ATO regarding RITC. Invest five minutes of your | | | | and Russia (the USA owes over $500 billion to China |
| time and as little as $500 of your money to benefit | | | | alone...see "INVEST News" #32, November 2004 or |
| twice (the investment could make you money, plus | | | | ask me for a free back copy). If you were looking at |
| the ATO gives you money when you fill in the RITC | | | | businesses to buy, would you choose the one with |
| form). Call your favourite investment adviser or | | | | massive debt that was spending more than it had |
| Financial Planner to find out more. Keep Thinking | | | | coming in (compare the USA)? Or would you buy the |
| RITCH... | | | | business with low debt, decreasing debt and making |
| Australia, you're moving on up. Sometimes they | | | | more in the front door than it lost out the back |
| report boring things on the financial news (OK, most | | | | (compare Australia)? |
| of the time), and it seems boring because they use | | | | Australia, take a bow. Not just a great place to live, |
| jargon and you don't know what it means, or how it | | | | but growing in economic security. Buy some Aussie |
| impacts you. National Accounts Surplus is up; is that | | | | shares or Aussie Government Bonds now, then sit |
| good? Foreign Accounts Deficit is down; is that bad? | | | | back & relax! |
| Balance of Trade Figures ascendant; is that a rock | | | | Of course, to find out which shares, bonds and |
| band? | | | | properties to buy, it would be prudent to speak to |
| Ignoring the jargon of GDP and import/export | | | | an expert in the field. A great way of investing into |
| figures, just try to think of Australia as a business. | | | | all of these areas is by utilizing a quality managed |
| The business buys things, and sells things to other | | | | fund with exposure to many different assets. |
| people. A business such as "Beds R' Us" may buy | | | | Instead of piling it all into one area, spread your |
| timber for $20, turn it into a bed (paying the | | | | money around like topsoil and it will grow. |
| tradesman $10) and then sell the bed for $50. This | | | | Take care of your money and it will take care of |
| means that they made a profit, and will probably | | | | you. |
| make a larger profit the next year (because with | | | | Invest. |
| more profits they can buy more timber and employ | | | | WARNING - This article and its attachments are not |
| more staff), and they will probably continue to grow. | | | | intended to constitute any form of financial advice or |
| In the last decade, the cost of manufactured goods | | | | recommendation of, or an offer to buy or offer to |
| (such as cars, clothing, cameras, TVs and DVD | | | | sell, any security or other financial product. We |
| players) has actually fallen; quite dramatically in the | | | | recommend that you seek your own independent |
| last few years. (Are you old enough to remember | | | | legal or financial advice before proceeding with any |
| when the cheapest new car was around $30 000? | | | | investment decision. |