Compound Interest
If you ever wondered why…
… brokers write over 50% of home loans in Australia, here’s some evidence. A recent survey showed the big banks Net Promoter Score was -10 to +3. So, there are more ‘detractors’, those unwilling to recommend banks to others, than ‘promoters’. On the other hand, Mortgage Brokers’ Net Promoter Score was +17!
Your Credit Report
Shocking Statistics
According to Peter Nichol on LinkedIn, “Remember 62% of all personal bankruptcies in the United States are due to healthcare bills and 72% of these people HAD healthcare insurance before bankruptcy.” He was referring to the ever-narrowing margins available to Hospitals to fund new technology, like Medical Imaging Equipment. The gist of it was a question about the wisdom of GE to make Medical Technology one of the three pillars of its new restructure. I wonder if he knows how much GE makes on Medical Imaging Equipment sales in the U.S. It’s huge – about double what it makes elsewhere in the world. That is, unless things have drastically changed since I left in ’06. I doubt it.Over 60? Asset Rich, but Cash Poor?
Don’t be among the 33%
According to AustralianBroker, 33% of Australians are failing to put 
in the effort and seek out better home loan deals despite slow wage growth and piling levels of household debt. Apathy and the hassle of switching lenders seem to be the main reasons, but it’s very easy to ring your broker and let him or her save you the hassle and potentially save you a lot of money.
Revolutionary Technologies: the Printing Press, the Internet, and now Blockchain
For those interested in learning about Blockchain, I strongly recommend a very well-written book by Tim Lea, Down the Rabbit Hole, Discover the Power of the BLOCKCHAIN. Blockchain is not exactly new and has had some bad press, because it’s the underlying technology of Bitcoin, which recently rose in value to more than an ounce of gold. The most powerful quote on the subject is from Goldman Sachs in December 2015: “…the Blockchain, can change…well everything”.
A major turning point in interest rates?
We all knew that interest rates would not stay low forever, and we’re now seeing the first signs that the downward trend is being broken. It’s public knowledge that the banks have been selectively raising rates. Recent evidence is Westpac and its related banks raising rates for interest only loans by 0.08%. And, only yesterday, my bank notified me of an increase in my line of credit of 0.15%.
What is not widely known is that since early October, the five-year swap rate (in red) has moved sharply higher, as shown in the chart below. For those of you with variable rate loans, I suggest that now is the time to fix some or all of your debt.
Thanksgiving
Yes, it’s an American tradition about celebrating a successful harvest, but it’s springtime here, so I’d like to change the meaning somewhat by taking this opportunity to thank all who have supported my work. I really do appreciate the opportunities and feedback. So, if you have any ideas about how I can better serve you or those you care about, please let me know.