John Killick - Managing Director of FSB4 Financial

For the sake of those who don’t know, a “bear market” describes a 20% decline in equity market (share price) …

(A) Stopping contributions into accumulation funds (superannuation)

(B) Withdrawing funds from investments in the share market

(C) Anxiety, fear, panic, volatility and fatigue.

When “bear markets” occur investors are prone to respond negatively – this may include:
Unfortunately for most New Zealanders the knowledge and the necessity to invest is a recent phenomenon.

Today’s accumulators are children of today’s Government Super recipients. They were neither educated at home or in school for necessity for this generation to understand investment fundamentals; let alone economics, politics and financial markets.

Today’s baby boomers, those retirees turning 65 over the next 18 years, are children of yesterday’s parents whose most traumatic experience in life was the great depression and the Second World War. The children of that generation cannot help but be scarred by their parent’s experiences – especially if, like me, they were born between 1945-1954.

We were taught of the share market crash of 1929 that caused the depression; it did not.

My experience as an investment specialist for the last nearly 40 years has taught me that the solution is not intellectual. It’s a behavioral decision. Whilst I personally welcome “bear markets” the majority of investors struggle to watch their principle decline by an average of 30% every 5 years. Market “noise” simply drives people to the brink of anxiety and eventual capitulation. People cannot sit and look out the window as their investment funds reduce by 10, 20 or 30%.

My problem, and that of most financial advisors, is that for every investor we get to educate and advise a multiple of others prefer to listen to the latest news purporting to be an account of why “this time it is different”.

You see, there have been 13 bear markets since the end of the Second World War…

That’s right, every 5 years you had to watch your investments decline an average of 30%. The largest decline was 57% with the GFC. But just as it always has, the market has recovered and will do what it has always done, continue to rise exponentially whilst declining temporarily about every 5 years. Since 1945 $1000 invested in to the “S and P 500” left to compound with dividends and taxes paid externally will be worth over one million dollars today. In other words the market has grown over a thousand times and yet we are frightened to invest in it because of what either our parents taught us or the media convinced us was the end of capitalism and the free world.

If you know the truth then you can’t get surprised. Bear markets are the means by which the share market adjusts.

Bear markets follow “bull markets”. They are like night and day, the lunar cycle and spring tides; in other words: regular. But they are also when accumulators who don’t capitulate make their money; because, you see, price and value are inversely related when investing. Earlier, I said I welcome bear markets; that’s because at age 63 I haven’t stopped investing. I would love for the prices to remain low for another 5 years. That’s not going to happen. I will just have to sit and watch as the market climbs inevitably to record highs.

By the way, for investors who have stopped accumulating “buy and hold” it is the worst possible strategy designed by man – except for all the others.

That’s what I will be doing, looking out the window and knowing the correction is coming but, as always, only temporarily. You see, equities have never lost capital over 20 year cycles anytime in history – including the depression. Plus, they beat inflation by over 3 times; and that’s essential when “retention of purchasing power” is your goal over a 30 year retirement.

John Killick
CEO, FSB4 Financial.

John Killick - Managing Director of FSB4 Financial

The residential property market in Wellington whilst not as buoyant as Auckland is beginning to show signs of recovery.

Quality developments are being promoted around the water front for inner city residents and homes are selling quickly in some suburbs, good signs.

Nothing like a dose of reality to focus us to price, value and equality. Unfortunately for us Wellingtonians events beyond our control are impacting us. Each has political connotation. New building standards and renovation requirements. Earthquake building standards and impact of insurers has increased premium, the continued focus to a more streamlined public service.

The Kiwi dream may not have been to build our own home but it is definitely centred on property upgrade from a do-it-yourself perspective.

Hence the mega stores growing in all suburbs offering home handy families access to electrical, plumbing and building supplies. My fear when bureaucracy attempts to make our lives easier or better is the inevitability of red tape, traditional administrative costs and formal road blocks. I hope the central planners and their administrators allow us to continue to live in a society of viable wear.

The government quite rightly has set a standard for the commercial buildings it’s personnel occupy in Wellington

I am not sure what that standard is in other towns and cities but in Wellington it is 67%. Once a benchmark is set the impact is inevitable for you and existing tenancies. As a responsible employer how do we react? Can we justify our continued occupancy pre-lease termination? Financially easy but morally how do we stack up? We all need to address safety standards. Christchurch has taught us that but I am not as happy as the insurers and their representatives and improve their balance sheets for loses experienced in Christchurch by justifying premium increases in Wellington. You don’t have much option at the moment as insurers quite rightly point to risk and loses both in New Zealand and offshore.

They must expect however our market awareness of the future and a continued focus to better risk analysis, improved products, service and a value-cost review process for some years.

The market will drive change. I don’t think the insurers will come out of this experience particularly well but I do expect we the insured will demand a better product, not an old boy cloddy shot network that we experience today. The pressure of redundancies in cost cutting is beginning to show. From the government and its second term wobble to families in Wellington centers living with the unknown. Do we have a job, can we pay our bill, fundamental human needs.

The web of society is complex but at its base the fundamental need is safety and security.

It seems to me that the guardians of that base are unsure of whose responsibility it is to create and protect and at what cost. As a libertarian I am quite happy to personally take responsibility however society has greater implications and we are all in this together. Optimism always seems a better bed fellow than pessimism unfortunately they are both appropriate at veering times.

John Killick
CEO, FSB4 Financial.

John Killick Managing Director of FSB4 Financial

The new ‘Art of Sales’ transformed by new ‘Science of Communication’ …

“In ‘the art of sales’ it is important to listen. That is because it creates rapport and enables the sales person to understand the customer or client’s feelings and desires.”

We all like to be listened to, rather than to be talked over, or so the manual says in ‘sales 101’. It is interesting to watch and listen to a group of women when they are socializing, however, because there often doesn’t appear to be much listening going on. Talkback Radio is another example; a topic is raised and the interviewer maintains control through interruption or the on/off switch. In both cases the participants do not appear to take offense from this experience. It is my contention that, while listening is a polite standard of respect and a method of more clearly understanding the other person’s point-of-view; communication has changed as the methods of communication have changed.

It is important to ask questions in ‘the art of sales’ – much more important, in my opinion, than most other aspects of the sales process …

However, unless the customer is an existing relationship, a questioning sales person can be perceived as overly intrusive – and usually the time to influence them is short. Asking inane questions may be a ‘negative indicator’ to an intelligent prospective customer and a continuation of questions however important or intelligent can be a complete show stopper. Time, more importantly the lack of it, has influenced our behavior. We no longer desire the depths of rapport we expected in ‘relationship selling’ 20 years ago. Most items for sale have become commoditized. We want to know their value and price and quickly.

How then do you sell services which require the complete understanding of people’s position both financially and emotionally – especially to those on large incomes?

The basics haven’t changed but the necessity to arrive at decision points more quickly has. Therefore knowing one’s agenda and expected outcomes is critical. How to get there in the shortest possible time is essential.

A couple of anecdotes:

Example 1.   Have you ever been in a shopping mall and looked at the directory because you did not know how to get where you want to go? That directory does not provide any help for you to figure out how to get there without the ‘You are here’ indicator. Financial planning is just like that indicator. You won’t know how to accomplish your goal if you don’t know where you are.

Example 2.   Websites have come a long way in the last few years. In fact it is a fast growing business – especially websites which link to social media – giving you easy-to-find and easy-to-read information. Going to a website which hasn’t been updated in the last couple of years is like going back in time and is very obviously outdated. The web sells product and lots of it – even products such as life insurance and superannuation. We are in a commoditized world but the internet asks simple questions and provides value and price quickly. No rapport, no relationship, instant gratification.

Banking has made us all servants of digital communication …

We all like information at our fingertips – delivered with accuracy and clarity – but it hasn’t made us better at managing money.

This is where ‘the real art of sales’ comes in. You must know your market and your value proposition and when the two are introduced, you the facilitator, must state your capability directly and confidently. Once you have attention and interest your procedure takes over, control through this process, pre and post sales must be seamless and systemized.

Your clients will now ‘want to be listened to’. They will want to know if things are on track, how things might have changed. They definitely want rapport.

The art of attention is the old art of sales. ‘The new art of sales’ has been transformed around ‘the new science of communication’. Move with it – or suffer ‘second prize’ in clients and results.

John Killick
CEO, FSB4 Financial.

After spending 6 weeks in Auckland in September/October at the World Cup, it became obvious to me that Auckland has become its own thriving entity …

It does not have the empty shops that I have seen in small town New Zealand and of course is not affected by natural disaster as Christchurch. Without the knowledge of demographics, trading and employment statistics it would seem to me that reliance on a particular sector or industry within a sector will no longer suppress growth in the greater Auckland region.

The super city regional council would seem a necessity rather than a burgeoning sea of ‘self-interest councils’. Improving governance would be an attraction to immigrants and other New Zealand residents.

Wellington has felt the inevitable fate of brain drain for some years as corporate head offices have relocated. We have our own issues in Wellington (that’s the SME’s and self employed) as the public service feels the pressure

John Killick Managing Director of FSB4 Financial

of expectation in performance and a reducing head count. The morale has to be taken toll inside government departments.

New Zealanders however just like many capitalist countries made up of predominantly small to medium businesses and farmers …

Over 400,000 of us are responsible for 40% of economic output and 30% of total employment. 60% of new jobs are created by small business and the self employed. Governments often overlook these facts as they fight for re-election and submit to lobbyists or grievance groups or corporate influence. It is much harder to herd the cats than to tame a barking dog.

Over 40% of SMEs and self-employed fail in their first five years …

Whilst many of the road blocks are self imposed I also think that many impositions are due to zealous, regulatory central planning – in other words councils and government departments. The Building industry is a classic example of poor planning, over planning, poor supervision, oversight and ultimately reparation. As development builders and associated trades suffer the booms and busts following regulation and natural cycles; only Auckland seems to have the population to drive through such volatility. Their recovery, and now growth, is a shining light to the rest of New Zealand.

In the 2011 year, ACC levies went up on average 41% …

Businesses now pay for the rehabilitation of workers injured at work. 1 in 10 employees will claim on ACC because of work place accident. There are around 200,000 work place accidents per year and 25,000 of which cost around 35,000 dollars in rehabilitation each. I know most non SME’s will look at that and say “that seems fair”. Unfortunately what is not reported is 30% of all reported work place accidents did not happen at work. Human behavior will ensure maximum benefits for least effort or cost.

ACC was a wonderful no fault insurance scheme minimizing litigious action of one party against another …

It is drifting in to “at fault pays”. If that ‘responsibility creep’ continues in boating, ballooning and car, accidents will become traumatic in the short-term and a financial nightmare in the long-term for those left behind or running high risk businesses. As a tourist destination we could grind to a halt. The primary industry farming will rebel or reorganize and start to own its own rehabilitation centers, medical centers or be forced to further insure. I could go on: there is taxation and the cost associated with GST and various compliance necessities,  new regulatory authorities such as the FMA, public and financial service industry is now strict, town planning, resource management they keep coming. Governments and councils keep growing but efficiencies do not necessarily follow.

How then do large cities respond?

They go underground. Black markets develop and then inevitably corruption follows. Is Auckland on that track? Will New Zealand Inc. follow? I hope not but I won’t be surprised if ‘cash’ makes a comeback.
John Killick
CEO, FSB4 Financial.

John Killick Managing Director of FSB4 Financial

In a recent article called “Staying on track financially” Mary Holm highlighted a number of issues around investing …

The one which resonated with me the most is her comment around risk. Let me first quote Mary and then move on to my own thoughts around “Good Investing”:

“Risk in investing is not a dirty word. If you diversify, understand what you are investing in, don’t need to withdraw the money for some years, and know you could cope with a worst case scenario: taking financial risk can be wise. You are likely to end up with higher returns than in a low risk investment and in the long period it makes a huge difference to total savings. If you invest $100 a month over 40 years with a return of 3% after fees and tax, you will have about $92,000. At 6% you will have $192,000 – well over twice as much.” – Mary Holm.

Of course the same rationale applies if you are investing a lump sum, let me explain.

Over the next 18 years New Zealand baby boomers will be retiring in the thousands. Unfortunately,  many will have minimal capital to invest with which to supplement their government Super. This article cannot assist them. Others may have saved amounts of $200,000 to $300,000 and not lost their life savings in finance companies debentures. This article cannot assist them. The bank is the best place to manage and monitor their capital allowing an additional $100 to $200 a week to supplement government Super.

On the other hand, investors who:

A/ Would like to maintain multi-generational wealth (their capital and its purchasing power is maintained).

B/ Expect to maintain a 30 year ‘lifestyle sustainable’ income.

C/ Have an income target of more than double the current state pension.

Are not likely to achieve those criteria by investing a million dollars in cash or fixed interest investments – especially if inflation continues unabated in two critical areas for the elderly, housing and health. Property rates have growth by 7% per annum over the last decade and medical procedures, including the cost of medical insurance, by 9% over the last decade per annum.

A million dollars invested with an expectation of supplementing government Super …

Earning an after tax return at 3% (cash and fixed interest) with a capital drawdown of $40,000 per annum will last 16 years at 7% inflation. All capital will be gone – nothing left. At a 5% inflation rate the capital will last 3 years longer.

The accumulators need to understand:

The asset class they invest in will have a dramatic effect upon the size of their accumulated pot of money.

Investors need to understand:

A/ What their investing goal is? A percentage performance return is not a goal. A 30 year sustainable income is a goal.

B/ What the probability of achieving that goal is based on historical data.

C/ Arranging investments strategies around the goal and the data.

D/ Adjusting annually to suit markets and circumstances.
Risk therefore in my opinion is (A) not achieving your accumulation target or (B) not achieving your investment goals.

Investors and accumulators, unfortunately, regard risk as a loss of capital and therefore are subjected to short-term emotional reactions to everyday market volatility; price adjustments in growth assets, property and equities. Whilst missing the real risks of default ( i.e. Institutions may not need obligations ), loss of purchasing power, inflation, or mismatched risk when investments you choose may not suit your needs.

Just by way of example, the New Zealand Super Fund is currently invested as follows:

66% mainly global equities; only 6.7% fixed income; and the rest in property, timber and infrastructure. The fund was created to supplement government Super in 20-30 years – just like many individual superannuation people today. No term deposits and minimal fixed interest.

New Zealand, Australian and International equities have edged over double figures since the 1970s: my time in the profession. At no time in history has a well-diversified Equity Fund lost capital over 20 year time frame. Today, a well-diversified New Zealand Equity Fund is yielding 7% from dividends alone.

John Killick

CEO, FSB4 Financial.

John Killick Managing Director of FSB4 Financial

Some years ago I realized that savers, investors and retirees are extremely subject to current events …

I am not convinced that either my qualifications or experience as a financial advisor has altered that trend.

Most people let their emotions and their reactions determine their actions. There are some fundamental reasons why generally intelligent people inevitably succumb to catastrophism. Most usually espoused via the media and exacerbated by either personal risk aversion (that’s self-talk of fear of loss) or well-meaning friends or relatives.

The “biggy” in my opinion is trust. The financial services industry is not trusted and nor are many of its advisors …

If we were to compare finance to medicine: the gap is enormous. We put our lives in the hands of medical Practitioners; we seldom question their prescription after a 20 minute diagnosis and proceed to administering ourselves with the medication prescribed for, predominantly, a short-term fix. Without wishing to denigrate the health industry most of us have stories to tell of questionable diagnosis or questionable service and questionable outcome. The finance and health industries alike have many positive stories. That it is catastrophe which captures the attention and one cannot blame the media for generating public attention and furore. We are drawn to disaster and descent like a moth to a lighted candle.

The next problem in attempting to advise people about long-term investing is the direct opposite to the medical Practitioner and their rationale.

Unlike the sick medically, the sick financially need short-term pain for long-term gain. Most people prefer to gamble on the long-term whilst taking advantage of the short-term. This is now showing up in people’s health and their financial position. People’s daily decisions around health and finance and the disciplines needed for both will in due time determine lifestyle and a higher or lower happiness scorecard.

Personal integrity is critically important for self-worth.

What we tell ourselves and how we think about ourselves will come back to our daily decisions and disciplines. Money and health are important components; poor decisions, poor outcomes. As we age the gap lessons between the poor decisions and the poor outcomes, financially and medically.

Finally technology is changing the world as I knew it.

You can Google the web and become instantly more aware and up to date on multiple-sclerosis or modern portfolio theory. The downside of technology is that it is making people redundant. World order is changing and weaving structures are breaking down. Countries formerly able to provide ‘cradle to grave welfare’ are becoming bankrupt or being forced to dramatically change two critical components of the social democracy: health and incomes, work and pensions.

Corporations, on the other hand, including banks, investment companies, private hospitals, retirement villages are booming. Corporations worldwide are cashed up. Their share prices don’t reflect their profitability due to market sensitivity. However, as countries slowly improve their fiscal position we will see a dramatic market mean reversion. Equities will do what they have always done: achieve around 12% gross return and international bonds will be a disaster as all investors race to safety looking for risk free returns but getting return-free risk.

Financial literacy is so appalling in New Zealand people are confusing risk with volatility, yield with total return, speculating with investing, media catastrophism with due diligence, and short-term trends with long-term needs.

Of course, I am biased. I happen to be a financial advisor. At our company we always have and always will deal, not in prediction of performance in the short-term but, in planning, perspective and behavioural coaching. There are two things for the life-long investor to take away from this blog …

First, is the real financial risk in a long life and especially in a long retirement is the erosion of purchasing power. The other is, don’t ‘jump off’. If keeping you from jumping off were the only thing your financial advisor could do you would be worth multiples of what you pay him.

In the words of America’s Red Adair, they extinguished the last fire in Kuwait after 8 months when most pundits assured the world it would take years. “If you think it is expensive to hire professional to do the job – wait till you hire an amateur.”

John Killick
CEO, FSB4 Financial.

John Killick Managing Director of FSB4 Financial

The US Republican primaries are an interesting topic of conversation around dinner tables and at social gatherings …

I found myself defending both the process and the rationale.

From an overall perspective most New Zealanders seem to be centred around cost and conflict; the vehemence with which the candidates attack each other and the money spent towards advertising their dislikes. I think we are missing some fundamental differences from our own system of elections and falsely comparing the two.

There really is no comparison; the fact that the elections are around the presidency apart, there are some important considerations to compare.

Firstly, the funding is private. Secondly, Americans are generously committed to their beliefs. Thirdly, the education process for the nation is several leagues ahead of anything we do here prior to elections in New Zealand.

In New Zealand, if Owen Glen, Bob Jones or the Fletcher family support a party or politician financially – for some reason – the press and the nation get up in arms. In the US reaction is both overt and accepted for what it is. Perhaps we somehow think corporates, or unions or wealthy business people in New Zealand are not covertly involved with the political parties: whether green, blue, black or red. Dream on. Political lobbying is occurring at all levels all the time: from local councillors being invited to social gatherings: to business roles being arranged for early retirement MP’s ( i.e. Lombard and BlueChip ): to overseas posting at trade level or UN level or just plain handouts and helicopter rides.

Americans are a generous people, they give …

Philanthropy is a business that probably stems from their remunerations and employment basis within most service industries. Good service is expected but it is not well awarded by the employer. But even the self-employed are tipped. Many New Zealanders don’t put a dollar in a collection box for Red Cross, Aids Foundation or Salvation Army let alone tip a waitress, taxi driver or politician.

Americans are also more passionate …

I am not saying I agree with all their beliefs – especially the nationalism which surrounds the flag – but they are passionate. The country, the religion, the political party, the baseball or football team, the state, the city, the corporation, the family, the leadership. No holding back they love you or they hate you – followed by a cheery ‘have a good day’.

Whilst we cringe at the double-standards and perceived hypocrisy of the American foreign policy are they simply ‘less covert’ than the Islamic states, Russia or some of the other Western nations?

As we watch a Libertarian, Ron Paul, who was raised as a Lutheran but later became a Baptist, attack a Catholic, Rick Santorum, who similarly chides a Mormon, Mick Romney, who joins them all in sniping at Newt Gingrich, another Catholic, for his purported infidelity; It is hard for New Zealanders to take this whole thing seriously. Indeed it is without holding firm to the bigger picture i.e. the election of the future President of the most powerful country on Earth, both financially and militarily is at stake; we must take it seriously.

Surrounding this Election, the ‘education process’ is critical.

Americans vacillate, just as we do, but they are very much better informed by their media, their political commentary, and the debates. The public get into this stuff and understand why and how.

John Killick
CEO, FSB4 Financial.

One of the most startling and ongoing facts is that at no point in time have average investors remained invested for sufficiently long enough periods to derive the benefits of a long-term investment strategy.

While we still see that investors will react to market corrections over the 20 years since 1991, since 2003 the reaction has been more muted. Recommendations by many fund managers and financial planners have had little effect on what investors actually do. The result is that alpha (out performance above a benchmark measure of performance) created by active portfolio management is lost to the average investor, who generally abandons investments at inopportune times, often in response to bad news.
Benchmark Returns – end of 2010:

John Killick Managing Director of FSB4 Financial

20 years

S & P 500 –               9.14%

Bond Index –           6.89%

Annualised Investor Returns by Fund Type vs. Inflation – end of 2010:

20 Years

Equity –                     3.83%

Fixed Interest –     1.01%

Inflation –               2.57%
There are answers to this evidence – and each will work if applied diligently and consistently:

1. Products such as KiwiSaver. Locked in superannuation prevents early withdrawal but it still necessitates asset allocation (choice of investment classes – shares, property, fixed interest, cash). By default, investors must remain invested even through volatile times such as the GFC. But KiwiSaver will not prevent the retiring ‘Baby Boomers’ from making ill informed investment decisions over the next 30 years. Their savings is available to them to invest as they will, and we saw the result of that through the schemes and scams – from Blue Chip to dishonest debenture companies. Unfortunately the reaction to these events meant a) the fast forward of a regulatory body and b) a flight to security in cash and therefore the accompanying low returns.
2. Property – Direct property investors do a good job in New Zealand. Rental accommodation provided by the private sector is usually spread through city suburbs and monitored via natural market forces of supply and demand. But many property investors are naively optimistic and therefore when markets adjust leverage inevitably causes financial hardship – even bankruptcy. Property markets do not always go up. Due to the illiquid nature of property however, investors are forced to treat property in the same way as locked in superannuation. Sit and wait for retirement day or market improvement.
3. Education – financial literacy.  The first two answers are ‘product’ related and directly influenced by performance of the markets and political interference. Education means investors are capable of making informed decisions based on quantitative and qualitative reasoning.

Most people let their emotions and their reactions determine their actions …

This means they most often act without knowing the context (reality), the causes (motives) and the consequences (goals) of their actions. It often leads to rationalisation – a cover up. A process not of perceiving reality but of attempting to make reality fit ones emotions.

John Killick
CEO, FSB4 Financial.

I am more concerned with the revolutions taking place within the Islamic nations and the US electoral response to Obama-care or more fundamentally Obama spending, Obama philosophy and Obama leadership.

The Islamic nations and the US are inexplicably interconnected. The Middle East is pivotal for world trade access and oil. Whilst the people of the Islamic states are responding to years of suppression and marshal law, the US is losing its control. The people of Tunisia, Egypt, Iraq, Libya, Syria have no gratitude to the US for the millions of US dollars poured in to their countries over the last decade, just the opposite in fact. They understand who got the money and why. Ron Paul, the libertarian GOP (that’s Grand Old Party) Republican candidate has put his hand up, guilty as charged. “As the world’s policeman, the US has failed”, he says, “and must take responsibility for much blood shed and suppression by dictatorial tyrants in countries which US has continued to support”.

But what now?

Obama can no longer spend 5 trillion in his second term; he did that in the first four years. The foreign policy will change. The troops are going home. Inevitably Iran will follow North Korea and Pakistan and will become nuclear capable. Israel therefore will become the arbiter of the Middle East. They will have to. They have more at stake and their friends in Washington will maintain sabre rattling and ultimately financial and active support.

The world will not stand back whilst Islamic fundamentalism replaces Islamic US cronyism. I am sure the world has learned from Neville Chamberlain’s détente with Adolf Hitler that tyrants are not to be trusted in whatever guise. But who will challenge and likely replace Obama on November 6?

What a fascinating series of primaries as Rick Santorum takes Iowa. Mitt Romney wins over New Hampshire and Newt Gingrich takes South Carolina. With 50 states and four candidates remaining the heat is on. These guys are playing to win; hard-ball, as the Americans call it. Whoever wins the GOP elections has to then repeat the effort against the Democrats and Obama. That would be no mean feat. Obama has supposedly 1 billion in reserve to fight this election.

Can the US come back from their moral and financial excesses and what type of leader will it take to regain faith in the great American Dream?

Could it really be a capitalist entrepreneur who’s religion is Mormonism? Even the Grand Old Party Republicans are struggling with that one. The Christian conservatives support Santorum’s principles but he is struggling financially to fight effectively in the primaries. Newt Gingrich will make Bill Clinton look positively Amish. The Christian conservatives are lost in a conflicting dilemma. Obama back in November or a Mormon for President? Ron Paul, the libertarian with white middle-class Catholic guilt, is struggling to hang in there. He has his followers, interestingly many of them young, because he bags big government and bureaucrats in general.

I think Mitt Romney WILL win the Republican nomination but Obama will be re-elected for a second term. Many republicans will refrain from voting. While the World holds its breath, the markets will respond accordingly as they always do. The Republicans will control the Senate and Congress and that’s how the US will manage Obama by stifling and suffocating him. In four years time the Middle East will be a fire cracker. The fuse is already alight.

John Killick
CEO, FSB4 Financial.

The Full attribution for the quote is, “The secret of your success is determined by your daily agenda.” – John Maxwell – Make Today Count.

Another quote that gets right to the nitty gritty is this one; “Effective prioritizing is a major time challenge for most people, yet it is so simple. The hard part is disciplining yourself to stay with the current main thing” – Robyn Pearce – About Time.

As a solo dad – new to town, new to a corporate role, new to being father AND mother, it immediately dawned on me that time was going to be a precious commodity. I had my three young children to bring up by myself. They were 6, 8 and 10. There was no going back. The boats were burned and the bridges blown up – as the saying goes. This was the ‘real deal’ and if it was to be it was up to me. We know all those clichés are real easy to say but when it comes to walking the talk, well, it’s a whole new ball game.

Your great critics are your kids. I still get the ‘feedback’ about what I did wrong …

There was no grandparent or mother around, so rebellion and criticism was handled with a firm hand. It really was ‘my way or the highway’ – sergeant-major style. My kids enjoy reminding me of it from time to time but I note, with pleasure, that they come back to see me anyway. Before this truly traumatic event in my life in 1980; banking had taught me the need for efficiency. As a head ledger keeper of a major bank at aged 20, I either balanced the ledgers on a daily basis or I stayed at work until I did. Cricket had taught me analysis, discipline and teamwork. Shift work taught me how to relax, to rest and to sleep any time anywhere. 8 years of rotating 80 hours of shifts doesn’t do much for social life and working on weekends highlighted to me that every day is 24 hours and it’s what you do in it that makes the difference. The ‘inner grandfather’ has given me feel of better balance.

When teaching new aspirants to the profession of investment, insurance and financial planning and new clients to values based goal setting and investment based strategic planning, I realize now that that naturally comes from experience but ‘energy comes from passion’ in the field.

Prioritizing consists of 5 elements and remember prioritizing is the major time challenge we all face. The first one: Know the big picture. If you don’t know what really matters to you in life – i.e. your goals, principles and purposes – you will follow other people’s goals and purposes. You need to make that choice: driver’s seat or passenger’s seat. Next one: Understand the difference between urgent and important. Things that are really important are really urgent and the surprising number of urgent matters are not really important. Again, most often urgency is driven by third party. Next: Develop a pro-active focus so that every day you spend time working on something long term and important. Not urgent but anything that will make a long term difference. Just 5 minutes is enough. Education, finance, investment knowledge, business, health. Next: To plan your activities for the week. Do this on the same day in the same way. You must master this. It is my one key frustration in teaching planning. And finally: Every morning do your daily planning. Look at your planner.

Why it is in life that we most often change due to some traumatic event.

A health scare before we do something about diet, weight and exercise. A relationship scare before we do something about communication timeout mutual goal setting. A financial scare before we do something about our peace of mind and financial control. An employment scare before we do something about focusing to our real passion and competence. Death of a friend or a family member before we do something about our own mortality. Yes I am biased, planning is my profession and my life seems to be a progression of learning events. That is what we offer and planning is what we do.

So I am looking forward to being with my kids and their kids this Christmas. I will take their feedback on the nose. I am at peace. Age has withered the personality but not dented the passion.

John Killick
CEO, FSB4 Financial.