Given that it is far easier to predict the past than the future, it is interesting to note that this time last year, the Australian Financial Review ran a headline in their weekend edition (I think it was the last weekend in February) that basically stated that the love affair Australians had with stocks was finally over.

 At the time, we did not know it, but I guess we can now say that that was as close as you would get to having a bell being rung to signal the bottom of the share market.

 Fast forward one year and after the savaging we saw in 2008 and early 2009, many investors are now sitting on returns for the last 12  months that are some of the highest we have ever seen.

 I just hope that not too many people took the advice of the nay Sayers and bandwagon jumpers to sell out at the bottom only watch the markets take off again.  I hope that the sensible investors stuck to their long term plans and didn’t realize major losses – realized losses can be hard to make up.

 Of course we are still not out of the woods and just as in the depression years, there is always the chance that markets may turn down again, and I have no idea what the possibility is of that happening, but even so as it is beyond my control, I wont stress too much about something I cannot control, what will you do?

 Please Note:

This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances. This information is provided for persons in Australia only and is not provided for the use of any person who is in any other country.

But what about your business – as a business owner you are probably evaluating your product lines, looking for new markets and generally looking at strategies to grow your business in troubling economic times.

But these sorts of times also can take a human toll on you the business owner. Higher levels of stress can lead to illness and business owners that have not taken the necessary steps to protect themselves and their businesses can quickly find themselves a victim of the global economic slowdown.

Consider the following*:

1. 1 in 3 men and 1 in 4 women will suffer from cancer before age 75

2. An Australian dies every 10 minutes from cardiovascular disease

3. A 40 year old male has 1 in 2 chances of having coronary heart disease in their life

4. Working Australians have a 1 in 3 chance of becoming disabled for more than 3 months before turning 65

5. In 2004 over 1,500 people were killed in motor vehicle accidents in Australia

6. Injury is the leading cause of death among people who are under 45 years of age

7. Nearly 1 in 10 men will develop prostate cancer during their lifetime

Each year around 10,000 Australian men are diagnosed with prostate cancer and 2500 die of it.

One of the strategies that may suit you and your business is a Business Succession Plan. The aim of a business succession plan is to ensure that the business survives even after the death or critical illness of one of its principals.

So what happens if a business owner suffers a tragic event and there is no plan in place?

· Third parties could end up with an unacceptable degree of control in the business;

· A deceased owner’s estate could demand a payout forcing the business to be wound up;

· It could be necessary to negotiate additional borrowings or face asset depletion;

· The stability of the business could be questioned by suppliers and customers;

· Lending institutions could seek repayment or re-negotiation of loan facilities.

Consider this scenario:

The widow looks at her late husband’s business partner as the coffin is lowered into the grave and says to herself:

“If he wants the business, I’ll make him pay double,”

The Business Partner looks at the widow and thinks to himself:

“I’ll offer her a tenth of the value, she wouldn’t know what it is worth and without me, the business is worthless anyway”.

The benefits to you, your family, your business, your business partners and their families are:

For the surviving owners:

· Eliminates estate claims to management rights of the business;

· Prevents introduction of new owners with incompatible philosophies and agendas;

· Protects against control of the business being frozen through probate difficulties or legal restrictions if an owner loses legal capacity;

· Provides assurance of the opportunity to buy shares from the owner should they suffer a tragic event;

· Predetermines funding for the purchase, as well as the price of the business;

· Assures continuity of the business with minimal disruption; and

· Provides security for suppliers, staff and creditors.

For the estate of the deceased:

· Provides assured purchaser(s) for the business;

· Guarantees fair price as well as guaranteed funds to complete the purchase; and

· Reduces the delay between suffering the tragic event and receiving insurance proceeds.

If you are currently evaluating your investments and making your defensive plays – have a long hard think about the strategies you have in place to protect your most valuable asset – your ability to generate an income and what your family would do if you, the money making machine broke down completely.

*We are not making the stats up – here are our references:

1. Cancer in Australia 2001’, Cancer Series no. 28, Australian Institute of Health and Welfare, www.aihw.gov.au

2. ‘The Shifting Burden of Cardiovascular disease in Australia’, Access Economics and Heart Foundation 2005, www.heartfoundation.com.au.

3. ‘Heart, Stroke and Vascular disease’, 2001 Australian Institute of Health and Welfare www.aihw.gov.au

4. Calculations based on data from the Institute of Actuaries of Australia (2000) Interim report of the disability committee.IA Aust: Sydney

5. Year Book Australia 2006, www.abs.gov.au

6. ‘Injury Prevention Control’, 2005, Australian Institute of Health and Welfare,

www.aihw.gov.au

7 & 8. Prostate Cancer Foundation of Australia 2004, www.prostate.org.au/disease

“Information provided in this supplement is not intended to be personal financial advice and is for general information only. Readers should only act on the information after having received professional advice appropriate to their personal circumstances.”