Jen’s Note, December 2008.

Most folk will be very happy to see the end of 2008 and have a firm wish that things will be better in the coming year. The past is something we cannot change and the future something over which we have no control but only up to a point. There would be few who have not reconsidered their current spending patterns and be wondering if things will ever return to the boom days of past years.

Well history tells us that all markets have cycles and that this down turn will sometime return to the more profitable times previously enjoyed. But this down turn is somewhat different from such events in the past as the speed of communications means that events on one side of the world are instantly transmitted to news desks and the whole world is informed within minutes.

This can be a good or bad thing as there is a tendency to over react to events and this has caused panic selling fuelled by irrational fear by those who have borrowed funds to invest in the market. This includes fund managers, many of whom are young baby boomers or even younger that have not previously been tested in such markets.

So is there light at the end of the tunnel? Well we think there is, interest rates have come down and will fall further, the oil price has dropped and although we do not think that will fall much further it has reduced operating costs for many businesses.
The cost of living is falling although if you are in debt that is what consumes your thinking and it is easy to not see that as a benefit. The lower Australian dollar does make it better for our exporters although we do understand that those who are used to travelling  overseas for holidays may not be so happy and of course the cost of imported goods is higher.

Sadly there will be significant job losses as companies restructure to face the current conditions and many who lose their jobs will not be reemployed at the same salaries as previously. You will find we have included a paper regarding redundancy for you to pass on to those who face this trying event. We understand that for many this is a very difficult time and therefore we have made an offer to try to do our bit to help them understand their changed circumstance and the importance of getting experienced financial advice to deal with their payout and super. Mindful that many will be made redundant before Christmas we have decided to stay open and only close the public holidays so we can help folk make positive steps towards reemployment and financial security.

Now is also a time when Craig is working with us to review portfolios to make sure that incomes can be supported so that although you may not for a couple of years have the same income as before, you are positioned as best we can to make you as sure of a stable income as possible.

On a personal note may we say thank to all of our loyal clients who have been so very kind and supportive during this trying year. Moss Financial Services has been going for almost 30 years and we can say that this has been the toughest year we have experienced. The one thing that we have been able to be thankful for is that our clients have cared about us as much as we care about them. Times are slowly getting better in the financial sector but there still is some pain to come for those employed in the sector and there will be still some fallout to the greater workforce in the coming year.

What we wish for is that Generation X and Y and their parents have come to an understanding that debt does not always bring prosperity, that spending less than you earn is wiser than putting it on the plastic and finding out the sense of achievement that comes from “saving up” for the holiday or new car or plasma TV.

Having a few dollars in the bank as a backup for emergency and unplanned for expenses is the most peaceful way to live. Everyone in the workforce should have an income replacement insurance policy to cover their salary if they are ill or have an accident. These policies are tax deductible and provide security for the family during difficult times. Life insurance rates have fallen and it is a wise idea to review your life insurance plans as the new rates may well provide you with better cover for the same or less money.

Rick Williams has been appointed to Moss Financial Services to review our clients’ life cover. Rick is very experienced in working out a quality policy that meets your needs. So if you have not reviewed your cover lately you probably should. Doing so will probably suggest that you review your estate planning as well. An up to date Will and Powers of Attorney are important things to have in place.

Our veggie garden is thriving and we are so pleased that we put the rainwater tanks in. They both collect the runoff from our evaporative air coolers as well so we save as much as possible. The recent rain has helped put more heart into gardening for us, we had almost lost hope of seeing some of our roses and other plants flower again. A lovely show of Flag Iris this year was a real treat.

The canine receptionist is settling in very well and when you visit her bark is now a “Hullo” not “I am scared of you” bark. So we are very happy she is feeling at home. Unfortunately she has decided to see if the caveat on our property can be tested regarding mining. We have told her that on our title we are not allowed to mine for pottery clay, but she is undeterred. Her excavations under the office steps are quite impressive, so we will have to put some cement pavers down to stop her undermining the building.

Failing success we will have to change her name to Rio Tinto. We are trying some new toys as well and more frequent visits from her friend Billie, although Billie is good at cheering Lina on. Ah what a life a doggie enjoys.

We will be sending a second just before Christmas note

Keep well and know we are thinking of you all each day

Jen , Rose and Lina the canine receptionist