“John, I have been made redundant”


I read that Virgin Australia will cut 750 jobs as part of a restructure after 7 years of consecutive  losses.

That was the headline to a recent post that attracted the most FB interest & the occasional feedback from Snow flakes.

 I was recently asked who was my most frequent client is & it is not my cohort but those who are waving their family bye bye & their next life stage is closer.

They are limited by what they can deposit into super & are very aware ‘they move the goal posts again’.

Super is in there until preservation age so it is NOT accessible.*


 Do you really want to raid your house equity?

They are also very unsure when they will need the funds & capital & are looking for “so I’d like to talk with you on short term investment options.”

The term that came to mind was a ‘sinking fund’.

Now body corporates have these sinking funds for maintenance & I noted that those Mascot Towers where there is serious cracking that the Body Corporate is estimated to require 10m for remediation costs.

What % of income into a sinking fund?

It is a sinking feeling when you receive the redundancy notice.

As the interest in the heading indicated it hits a tender spot as I could be requiring funds be it from redundancy or illness or marriage or for a wedding or for the house.

It just requires a commitment to action to have a sinking fund so that it is there when it is needed.

But the challenge is to invest in where as term deposits are sad & hence my PD webinar for today

Towards Zero? Where to invest when the cash rate is at all-time lows.

Rates are at record lows and possibly headed lower.

Learn more about what this means for your client’s investment choices, including strategies to better utilise cash in this low-yielding environment.


From the webinar we learn that Vanguard's Base Case IS A RECESSION in 2020.

and I want something that is liquid so that I can handle that inevitable moment & float above challenge.

Maybe it is a ‘lifeboat’ or a ‘spare wheel’.

I recall the film The Graduate where in Dustin Hoffman’s sports car the spare was flat.

I don't want that.

It is a sinking fund that has a basket of approved options to invest in that you are comfortable with & that you can manage.

A Plan R.

 and also from the webinar


Reaching for high yield is not a substitute for saving more

PM John McAuliffe Now.