Testimonial from the 4 Day Education For Life Seminar - Melbourne Feb 2008

Testimonial from the 4 Day Education For Life Seminar - Melbourne Feb 2008

Testimonial from the 4 Day Education For Life Seminar - Melbourne Feb 2008

Testimonial from the 4 Day Education For Life Seminar - Melbourne Feb 2008

Testimonial from the 4 Day Education For Life Semainr - Melbourne Feb 2008

Testimonial from the 4 Day Education For Life Seminar - Melbourne February 2008

Ian Thomson - Homestudy Graduate Testimonial

The ABC television program, Four Corners, ran a story on Monday 21 July 2008 concerning a company known as the fuel technology company, Firepower Holdings Group Ltd (Firepower BVI). Coincidentally earlier on the very same day ASIC (Australian Securities & Investment Commission) commenced civil proceedings in the Federal Court of Australia against parties associated with Firepower.

ASIC’s proceedings name a number of individuals and companies as defendants including, Quentin Ward (director of Axis) a financial adviser and former bankrupt from Perth, Axis International Management Pty Ltd (Axis) and Tim Johnston.

In the same week newspaper headlines screamed, ‘Firepower reveals $16m of creditors’, ‘Firepower chief lived in luxury’, ‘A new cowboy from the wild west’ as allegations emerged of how Tim Johnston, the head of Firepower, was believed to have spent a fortune on expensive furnishings and antiques, and how he regularly flew a prominent Sydney antique dealer to Russia to advise on purchases.

Even worse it has emerged that Firepower investors who pumped more than $60 million into the fuel pill company on the promise of spectacular returns when it was to be listed on the stock market in London, now stand to lose all of their investments.

Investors included diplomats, doctors, accountants, media figures and a number of high profile AFL footballers, including Wayne Carey, who now stand to lose six-figure sums after buying shares in Firepower - at up to 35 times their start-up value. Many bought the shares on the promise of a stunning share market listing in London. Carey, the former North Melbourne and Adelaide Crows star, bought $100,000 worth of Firepower shares, his father Kevin invested $60,000, and the AFL Brownlow medallist Mark Ricciuto $175,000 in two parcels.

The foibles and shortcomings of the financial planning industry are a pet topic of Jamie McIntyre, CEO of 21st Century Education, whose book What I didn’t learn from my financial planner but wish I had, questions why investors even need to deal with a financial planner.

McIntyre says you must understand that most financial planners are not trained at a high level in investing and in most cases they are not successful investors themselves. “If a financial planner is going to show you how to become financially independent, to retire wealthy and to live your dreams one day, then the obvious question to ask them is why haven’t they done it themselves.”

The involvement of the former bankrupt Perth financial adviser Quentin Ward, in selling Firepower shares, a company who did not comply with financial regulations and who did not bother issuing a prospectus, highlights the poor ethics in some sections of the financial planning industry according to McIntyre

The original entity that Firepower incorporated in the British Virgin Islands had an authorised capital of a billion shares at US1 cent a share, but footballers later paid 35 cents a share, Federal Court documents show. Others paid as much as $1.40.

For eighteen months prior to this the Sydney Morning Herald ran a series of articles that raised questions and drew attention to the dealings of Firepower. Firepower took the trouble to sue the Herald for defamation but lost the case and had costs awarded against them, which the Herald will never recover.

Firepower was the biggest sporting sponsor in the country and Johnston bought the Sydney Kings basketball team, which has since gone into liquidation with a claim of $265,073 against Johnston. It’s sponsorship of high profile sporting clubs included the South Sydney Rabbitohs rugby league team, the Western Force Super 14 club (now owed $55,000) and its top-line players Cameron Shepherd ($27,500), Ryan Cross ($41,250) and Scott Staniforth ($13,750)

Other sponsorships included the boxer Paul Briggs, who used to fight under the moniker ‘Firepower’ Briggs is now owed $55,000; Tongan Rugby Union ($71,019); Nedlands Rugby Union ($45,000); Russian Rugby Union ($251,294); Tasman Rugby Union ($76,800); and Tasman Motor Sport ($175,000).

ASIC alleges that these individuals and companies were associated with Firepower BVI, a company registered in the British Virgin Islands, raised funds from investors in Australia in breach of the Corporations Act (the Act). ASIC alleges a prospectus or disclosure document was not provided to investors as is required under the Act so investors or their professional advisers have all the information they need to reasonably make an informed investment decision about the company and its shares.

The commencement of proceedings follows an ASIC investigation into the sale of over 80 million shares in Firepower BVI (by persons and companies associated with it) to approximately 1400 Australian investors from mid 2005. These investors collectively paid in the order of $60 million for the shares.

ASIC commenced its investigation in March 2007, prompted by inquiries it made in the latter part of 2006 and early 2007. In May 2007, Firepower parties (Firepower Operations Pty Ltd, Firepower Holdings Pty Ltd, Timothy Johnston and Firepower CEO, John Finnin), challenged ASIC’s section 30 notices that had been served.

ASIC allegations include, a charge that Axis and Ward (the sole director of that company) acted as intermediaries and unlawfully distributed application forms to Australian retail investors for the sale of nearly two million shares in Firepower BVI for a total price of more than $1 million without the necessary disclosure document.

ASIC is seeking the following orders from the Court:
•  Declarations that the conduct of the defendants contravened the Corporations Act.
•  Orders banning Johnston and Ward from managing a company in Australia.
•  Additional disclosure to investors so that investors can assess any rights they may have to redeem their money or to pursue other compensation actions which may be open to them.

ASIC will assess potential claims for compensation for investors as part of these proceedings or fresh proceedings. ASIC’s investigation is continuing in relation to Firepower BVI.

The Australian Securities and Investments Commission was warned the fuel technology company Firepower “may in fact be a scam” more than six months before it became a public issue, but it chose not to investigate.

This allegation was raised in the ABC TV program Four Corners, in which John Finnin, the former CEO of Firepower also criticised the Australian Trade Commission, or Austrade, for its part in promoting and supporting the company. John Finnin, who was a former senior trade official before joining Firepower, said almost $100 million was raised from investors, but when he had worked for the company he could only account for about $30 million “at best”.
Finnin said many of Firepower’s alleged multimillion-dollar deals were never concluded, including a huge contract with Russian railways that was repeatedly presented to shareholders as a certainty.

“We’re talking about contracts across dozens of countries that we claimed to have: Pakistan, Romania, Germany, Russia. We were claiming to have contracts which we didn’t have,” Finnin said.

“They made further claims that … they had supplied the Australian and New Zealand military [with products], which of course was incorrect.”

Finnin said the support Firepower had received from Austrade gave it a layer of credibility it should never have been afforded. “They were able to say they were being supported by the Australian Government, which in essence they were,” he said.

Former Firepower CEO, John Finnin, was previously a senior Australian trade official, who was dumped from his highly paid Firepower job in August 2007 after a court heard he might be charged with child-sex offences. Finnin told a Melbourne magistrate that he denied the allegations, which were revealed when he applied for the return of computers and associated equipment seized by police under a search warrant in May 2007. The father of four said in evidence that the company paid him $500,000 a year, which allowed him to drive a Maserati Quattroporte that he leased for $5000 a month.

Finnin was once linked to the Jordanian trucking company Alia, which was central to the AWB scandal. He resigned as Austrade’s director for Europe, the Middle East and Africa in June 2006 to become CEO of Firepower.

Four Corners reported that an accountant whose client was offered shares in Firepower made a complaint to the Australian Securities and Investments Commission in May 2006 alleging it could be a scam. The commission said it was “taking no further action at this time”.

The complaint was made at the height of investment euphoria in Firepower and at a time when the company was on its way to being the biggest sporting sponsor in the country.

Firepower chairman, Tim Johnston, is thought to be in Britain after refusing to return to Australia to answer questions from authorities over the demise of the Sydney Kings basketball team.
ASIC is also seeking to have Johnston and the former bankrupt Perth financial adviser Quentin Ward banned from managing future companies in Australia.

Note: Jamie McIntyre is currently authorised to provide general advice and dealing services in Derivatives, Deposit Products, Managed Investments and Securities (ASIC No. 321 315).

Financial educators and financial coaches are seeing a boom in their business as financial coaching appears set to overtake financial planning as people demand more then just commission based advice which is very often seen as - and later proven to be - conflicted and expensive.

Financial coaching is a value added service and is about empowerment motivation and education rather then just relying on often flawed advice from a financial planner who is entirely dependent on commissions.

21st Century Education provides financial coaching and has more than 25 contracted financial educators and turned over $30million in the last financial year and is on track to be a $50million business this year.

21st Century Education Chairman and founder Jamie Mcintyre says the government has told people for years that there won’t be a pension to rely on in retirement. “You need to become a self-funded retiree. This means everyone has to become an investor, yet no one was taught about financial education and self empowerment at school.”

According to McIntyre even ASIC (Australian Securities and Investments Commission) asks the wrong question. “How do we get more people to see a financial planner?”

The correct question according to Mcintyre should be, “How do we get more Australians to be empowered to take charge of their financial future?”

There is this huge demand for people to be financially educated and empowered and unfortunately financial planners have so far failed to fill this gap McIntyre says. In the near future he is confident financial coaches and financial educators will be utilising self empowerment strategies that take more and more of the traditional financial planning business slice unless financial planners shift to the provision of more education and empowerment, rather then just commission based advice and selling managed funds.

Consumers want more than that McIntyre said when he explained why he founded 21st Century Education, a personal services and financial group that employs nearly 100 people and has doubled in size in the last year. The reason for founding his successful 21st Century Education business, McIntyre said, was to provide a financial education to people who should have received that education as part of their schooling.

It is also why he wrote his first book What I didn’t learn at school but wish I had, which has been distributed to over 250,000 Australians. To assist with his goal of a financial education for all Australians, McIntyre gives this book away for free on his company website www.21stcenturyacademy.com despite it selling in bookstores for $35.

McIntyre became a self made millionaire by getting a financial education many years ago and said he doesn’t need the book royalties and has just committed to donating up to $1million worth of copies of his books to be given away over the next 5 years to assist in providing an education he strongly believes we all should have received at school.

One of Jamie McIntyre’s greatest passions has been to create an educational system that is designed for the 21st Century as opposed to an outdated education most of us received at school so we can create an extraordinary quality of life that most people only dream about.

McIntyre believes people’s dreams can come true, just like they did for him, once he learnt the information he shares in his book, What I didn’t learn from my financial planner but wish I had This book provides an education for life and explains what it takes to create the necessary financial abundance to have an extraordinary quality of life.

McIntyre is appalled that superannuation nest eggs have taken a hit after funds recorded their worst annual return since 1987 of minus 6 per cent. The higher cost of living has also forced more workers to curb their voluntary contributions, leading super experts to warn these people now risk missing out on any upswing in returns when the sharemarket recovers.

In early July 2008, figures from the independent research company SuperRatings revealed returns on the median balanced super fund shrank by 6 percent over the year. On a typical balance of $50,000, this represents a $3000 hit, not including contributions made during the year.

The Federal Government is expected to come under renewed pressure to ensure the adequacy of retirement savings, with several members of its super advisory panel stating this should be the highest priority.

Note: Jamie McIntyre is currently authorised to provide general advice and dealing services in Derivatives, Deposit Products, Managed Investments and Securities (ASIC No. 321 315).

Self made millionaire investor Jamie McIntyre, who is also the author of a series of popular books including, What I didn’t learn at school but wish I had and What I didn’t learn from my real estate agent but wish I had, is predicting another property boom within the next 3 years.

He says due to the massive labour shortage and with immigration levels hitting their peaks the acute shortage in housing will force another upward spike in property prices in coming years.

Mcintyre comments are backed up by article in the Australian Financial Review (AFR) on 25 June 2008 which reported competition for housing among aspiring home buyers and tenants is set to intensify, with a big influx of skilled migrants helping drive the most rapid population growth since 1988 and exacerbating the Australia’s shortage of homes.

Official figures show the Australian population climbed by almost 332,000 people in 2007 to 21.18 million, with more than half of that growth (185,000) attributed to net migration.

Federal government plans to boost the immigration intake by 37,500 to 190,300 in the next financial year have prompted warnings of the rising population increasing the pressure on housing at a time of rocketing rents and low affordability.

Population gain, along with improving productivity, is an important engine of economic growth and also fuels demand and increases the pressure on resources and infrastructure, including the supply of housing.

The AFR reported the nation’s spurt is coming as high interest rates, low affordability and modest returns help stifle the construction of new housing. Dwelling starts were down by 3.3 percent in the March quarter and weak finance and approvals indicate activity will stay flat.

One industry spokesperson claimed a shortfall of 31,000 homes in the number currently being built on an annual basis. He also stated tenants and aspiring home buyers faced an increasingly tough market as any acceleration in the pace of building construction was some time away. Tenants in Sydney face particularly tight conditions with rent costs expected to accelerate by 10 percent annually over the next two years with early relief being unlikely even if interest rates eased and affordability increased as the construction of apartments typically involves an 18 month cycle. This means it could be three years or more before significant inroads are made into accumulated demand.

A second industry spokesperson says the looming boost to migration, though welcome by employers struggling to find the workers they need, will exacerbate the pressure on housing. “If we are heading for 200,000 plus in net migration, then the undersupply in housing will be at its most acute since the 1970s and it is very hard to escape it.

The strong growth in labour supply will help alleviate labour shortages, however the housing shortage is approaching extreme levels worthy of a more activist approach by policymakers.”

The Howard government introduced measures such as the First Home Buyers’ Grant. This meant that more individuals had the money to buy, and so many left the rental market to become owner-occupiers. This reduced the demand for rental properties and so rents remained low.

The increased demand to buy and the limited supply of homes led to residential property prices dramatically increasing. But now, property prices have reached a critical level, where individuals even with the help of banks and the first home buyers grant, can’t afford to buy.

With many individuals being priced out of the market, they are now forced to rent. This combined with record immigration and the city living becoming even more desired has led to rents dramatically increasing.

In order to benefit from the next property boom, become an expert in the suburbs that are going to grow in value first. Get to know those areas so you can pick the bargains in those suburbs near the city, near the water or in the more affluent, the more desirable suburbs. If you buy a good property in those areas you are likely to achieve excellent capital growth in the next 5-10 years.

Then over the next few years the suburbs one ring further out will start to make good investment sense. It is only near the end of the cycle that the outer suburbs, those that have traditionally been first home owner areas get good capital growth.

For investors this is all good news. Will we see another property boom within the next 3 years? At 21st Century Property Direct we believe we will experience a another spike in property prices within 3 years.

The Australian Financial Review recently drew attention to the perceived shortcomings of the financial planning industry in this country. This a subject dear to the heart of Jamie McIntyre, 21st Century Education founder and a long-time critic of the financial planning industry.

About 50,000 Australians are estimated to have lost a combined $2.7 billion after a string of disasters in which financial planners were a key distribution channel. These disasters include Westpoint, Centro Properties Group, MFS (now renamed Octaviar) and margin lenders Opes Prime and Lift Capital.

Financial planners can take at least some of the blame for some of these recent huge financial disasters that have left thousands of people with losses of millions of dollars, in many cases their hard earned retirement savings.

In June 2008 it was announced that a dedicated financial advice team within ASIC (Australian Securities and Investments Commission will seek to increase competition among financial planners and overhaul their disclosure of fees, risks and relationships that may create conflicts of interest.

ASIC is currently suing eight financial planning firms who recommended Westpoint ‘promissory notes’ with around 4,300 investors standing to lose $320 million. Westpoint paid commissions of 10 percent and more to advisors recommending its ‘promissory notes’ offering 12 percent per annum, paid monthly. Planners from some of the countries biggest firms flocked in. Almost 400 complaints have been lodged with FICS against planners chasing high commissions who missold Westpoint products. By April 30, 2008, planners have been found guilty in 70 panel hearings.

Centro Properties operates shopping centres all over Australia and in some other countries as well as managing property funds. 15,000 investors in two of their unlisted funds have had redemptions frozen on $3.7 billion of investments.

Opes Prime and Lift Capital were margin lenders who collapsed in the wake of the credit crunch. 2,800 investors are $820 million out of pocket in their dealings with these two companies. Financial planners who recommended these companies received free or discounted loans.

Anyone living on or near the Gold Coast was impressed by the rapid rise of MFS and the wonderful publicity it received in the local and even national business press. Local television even broadcast footage of their Annual General Meeting chaired by former politician and ambassador Andrew Peacock.

In January 2008 MFS lost 70 percent of its capitalisation in a few hours when it was revealed they needed to borrow $500 million to repay a loan. MFS was also behind a $1 billion New Zealand financial planning firm that poured tens of millions of dollars of investors money into three high-risk investment companies that collapsed in the last six months of 2007.

As Crikey.com reported in late January 2008, “…the real calamity comes from the complete destruction of value in the traditional MFS financial services business. A financial institution simply cannot close the doors on withdrawals and survive, as MFS did yesterday to the 10,000 investors in its $770 million Premium Income Fund. And why did those 10,000 investors back MFS? Because it paid huge commissions to their financial planners.

“At its core, MFS demonstrates the huge flaws and conflicts in Australia’s financial planning industry. The majority of its directors were Gold Coast lawyers and financial planners who are now getting blown away in margin calls after clearly not following standard advice about risk management and diversification.”

Financial planners are one of the most complained about industries in Australia and in 2007 the Financial Planning Association received investigated complaints against 130 of its members.

Around 85 percent of financial planners are aligned to or employed by a bank or large financial institution. Financial planners receive a range of commissions (often unstated, which is a major and ongoing issue) including an up-front fee, which is known to be even more than 10 percent in some instances. They also receive a trailing commission and a in some cases a volume rebate as well as in-kind benefits such as shelf-space fees and discounted loans.

McIntyre says you must understand that most financial planners are not trained at a high level in investing and in most cases they are not successful investors themselves. “If a financial planner is going to show you how to become financially independent, to retire wealthy and to live your dreams one day, then the obvious question to ask them is why haven’t they done it themselves.”

Investors are now realizing the high price they are paying or have paid in the past for often worthless advice as the appeal of dealing with financial planners wears thin and the spotlight turns on their fees.

Note: Jamie McIntyre is currently authorised to provide general advice and dealing services in Derivatives, Deposit Products, Managed Investments and Securities (ASIC No. 321 315).

“We are in the midst of the greatest transformation in communications since printing! The internet is the real estate opportunity of the 21st Century.”
Jamie McIntyre

“If you are looking to are looking to accelerate your financial results and create an extraordinary quality of life - then this book is for you!”
Dale Beaumont, Creator of the Secrets Exposed Series

What I didn’t learn from Google, but wish I had
By Jamie McIntyre

Price: AUD$34.95
ISBN: 9781921258019
Format: Trade paperback
Publisher: 21st Century Publishing
Number of pages: 215
Publication Date: April 2008
Edition Number: 1

Jamie McIntyre’s new book What I didn’t learn from Google, but wish I had explores the internet business and marketing strategies Jamie wishes he knew before starting his business, which would have made his success even greater.

Jamie shares his experiences of ways to make money online, without the need for capital or expertise in computing. He examines the success of internet giants such as Google and eBay and shows how people can leverage web-based technologies as powerful business and marketing tools.

The book is an easy to follow and informative guide that will be invaluable for anyone wishing to embrace technology as a wealth creation tool, or contemplating setting up a website and using Web 2.0 technologies to enhance their current business model.

It provides tips on how to profit from the internet, advice on treating the internet as an investment strategy and the truth on how successful websites sell.

The book also details the strategies behind many well-known internet entrepreneurs, such as Graeme Wood of Wotif.com, Sean Howard of OzEmail and Google founders Sergey Brin and Larry Page.

What I didn’t learn from Google, but wish I had is available now in bookshops Australia wide.

END

About the author
Jamie is the author of four books including the highly successful What I didn’t learn at school, but wish I had.

Jamie became a self-made millionaire in his twenties. In addition to his work as a personal and financial educator, Jamie is an entrepreneur, investor, a sought after public speaker and climate change campaigner.

Through his work with the 21st Century Education group of companies and in founding 21st Century Academy, the flagship company of the group, Jamie has made it his mission to teach people life and financial skills that he believes people should have learnt at school. The concept has proved so popular there has now been over 225,000 people educated worldwide from 16 different countries.