Viridian Wealth Management Pty Ltd: She'll be right - Part 1

Viridian Wealth Management Pty Ltd: She'll be right - Part 1: "Every quarter, the Association of Superannuation Funds Australia (ASFA) update their Westpac ASFA Retirement Standard . The standard benchma..."

But What Happens Next?

The rallies today in the major capitals calling for climate action were certainly encouraging. But what happens next?

As I have said in previous postings, marching in the streets and starting social media campaigns are certainly highly visible activities. But how much real change will they effect, and what else can be done.

The adshel situation showed that 'people power' could make an impact. However, within a day of returning the ads, they were being defaced in homophobic attacks. So, the ads were back, but maybe attitudes were not altered that much at all.

That is why we assist people to review where there investments are, particularly their super, and help them invest in line with their personally held values. By supporting companies financially that you support morally, they are financially encouraged to broaden the work they are doing. Avoiding and withdrawing from companies that you do  not support sends a real message that can affect companies at the share price.

Finally, you can go even further and and show your activism positions at the shareholders meetings, and put forward your point of view to the people who make decisions.

This financial 'activism' is not nearly as visible as taking to the streets. However, it may be more long lasting, and effective in getting the message across to the decision makers, in a language that they understand.


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What else gets you riled up?

The last few days have seen some really powerful examples of, for want of a better term, people power. There have been some really evocative issues and people have put themselves out there to stand up for things they believe in.

First, there was 'slutwalk'. Then live exports of cattle became an issue. Then over the last day or so, there has been the adshel controversy. While there has been some debate as to the language used, and redeemability of the word slut, what can't be debated, is that these issues have struck a chord, and that people have chosen to act.

These three highlighted issues are important. Regardless of the wording, there is no excuse for rape, and no excuse to blame a victim for being raped. The treatment of the animals in the overseas abattoirs was appalling to watch. Finally, in 2011, are people still scared of seeing two men hug?

But thinking of the positive messages makes me question other things. I don't wish to take away from these issues, but it gets me to thinking about what else riles people up?

I noted the other day that the Australian Government (with your money) invests in companies that manufacture nuclear weapons for Indian submarines via the Future Fund. Is that enough to get you riled up? Or how about your super fund investing (again, with your money) in companies that make weapons, use child labour or damage the environment?  Is any of that enough to get you riled up?

Most people I know would not support weapons manufacture, child labour or degradation to the environment. Except, that they do passively via their superannuation investment. Most people I know would not eat chocolate produced by slave labour in West Africa , yet they own the companies that produce it.

Moreso, the Greens are now getting 10% and upwards in votes at elections, yet only 2.5% of money invested in Australia is done via ethical and responsible investment. Why the gap?

If these things rile you up, then by all means march in the street. Send an email to your MP. But don't support  these things passively. It is possible to support want you want to support, and avoid what you don't like without it affecting your end returns. You can continue your activism by withdrawing financial support for companies that conduct themselves in ways you don't agree with.

To try and find out a little more, I will be asking this over on the Facebook page tomorrow. I would really love your feedback, so please, comment below, or head over to the Facebook page.

PS. News has come through that one of the bus shelter ads has been defaced. Really?


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Food from the Yard

Our dog Violet likes to raid the bin and take food out into the yard, but this is different.

My wife has been working hard recently on edible gardens, and being able to produce food from the back yard. There is a fair bit more to go, and we are only at a early stage, but I thought I would give a brief update.

We have some raised garden beds, some barrels that we have planted potatoes in, some seedlings that have been propagated, and a 'Sweet Temptation' chilli plant, that has two chillis ready to eat.

As we do more, we will post some more details. To see more photos, click here.


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Australia Invests in Nuclear Weapons

The Future Fund, was set up by the Australian Government from the sale of their remaining stake in  Telstra in 2006, The Fund was intended to help the government pay it's future superannuation obligations. Recently released records (obtained under FOI laws) show that the Fund has invested over $130 million in companies that design, produce and maintain nuclear weapons. This includes investment in companies that are building nuclear armed submarines for India, a non signatory to the Nuclear Non Proliferation Treaty.

The good news is that recently the Future Fund sold out of their holdings of companies manufacturing cluster bombs.

The Future Fund was set up using the proceeds from the sale of the Governement's holding of Telstra. It is our money. So where else is 'our money' (read YOUR money) invested. A two minute search shows that investors in one of the largest and most well known super funds in Queensland invests in uranium mining. The same fund has investments in Exxon Mobil and BP.

As ever, if you are comfortable with these types of investments, then it is business as usual. However, if you are not, and do not wish to support them, or wish to actively activate against them, you can.

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Everything old is new again!!!

A key aspect of sustainability, and a catch cry is 'Reduce, Reuse, Recycle'. Recently, we have done just that, and I wanted to share the experience, and some of the reasons why.

We have a very old dining table sitting under our house (and every other house we have lived in for the last 20 years), that I estimate to be at least 100 years old. It is made of Silky Oak, a Grevillea that is extremely useful for windows and furniture, because it is resistant to rotting.

A few months ago, we decided to gift our existing table to some good friends, and rather than buy another one, agreed that as a family, we could restore the old one. We felt that this was an ideal way to show our daughter that we could take something that we did not use anymore, and turn it into something useful, if not beautiful.

One of the primary reasons that it was important, is that even though Silky Oak is relatively drought resistant and fast growing, the harvesting of Silky Oak is severely resticted due to the depletion of stocks. In effect, it is endangered, and we felt it was important to utilise it, rather than let it go to waste.

Over the coming weeks we did a lot of research. We read the Green Magazine, as well as The Green Pages to find products that we felt comfortable with using. Finally, we chose an oil and a varnish from Bio Products. Because we have kids that would eat off the table, we wanted non toxic paints, and those that would limit the release of V.O.C.'s. For us, the Bio Product range available from Hand Made Naturals in Highgate Hill, Brisbane, fit the bill.

Over the next few weeks, we sanded the table, oiled it, and varnished it, just in time for Mothers day lunch.

In the end, we have a beautiful functional tale, but more than that, we have re-used a depleted resource, and restored it in a way that we feel comfortable with. All the while, we have helped our daughter to see the benefits of reusing, rather that just dumping.

To look at a few more photos, look here. It could use another coat or two, and maybe a light sand. However, responsibility and sustainability for our family are more than just the big issues like climate change, and resource depletion. For us it is a series of little issues every day, so while we are happy with the results, we are even happier with the process.

Nuclear Power. When Chinese Proverbs go bad!!!

I must say that I am partial to a good Chinese Proverb. But recent events have led me to be believe that they are, in fact, fallible.

The Proverb in mind is "The rose has thorns only for those who would gather it".

To me this would mean that if you left it alone, you don't get pricked. However, I think the photo above shows a rose that has thorns for everyone, whether we 'pick' it, or not.

I have the utmost sympathy for the people of Japan right now. Sincerely. And I would not want to be seen as being insensitive, but within days of the tragic events, we had people repeating that if we want to reduce our carbon emissions in Australia, the only reasonable option is nuclear power, and that to not use it, is in fact hypocritical.

Earlier today, a major Australian newspaper reported that fallout had reached Europe, and particularly Russia. How's that for irony. Further, radiation has been detected in food in Japan, and certain items have been banned from being imported into the USA. That is a lot of people being stuck by thorns they did not grasp.

I am concerned by the prospect of nuclear power being introduced into Australia. I don't believe that it is safe. It produces less carbon outputs than burning coal, but at what potential cost. I want to advocate against nuclear power, and support other renewables, and I choose to help others to do the same. You can march in the streets, write a letter to your member of parliament, or even invest your superannuation so that you don't support something that you don't want to.

As a final point, before starting this entry I quickly searched the Internet, under Japanese Nuclear Disaster. I read a paragraph or two on one of the articles about how the disaster has been classified as the worst since Chernobyl. Two people have died. It was then that I realised that there had been no mention of the earthquake, and I read the date of the article and saw that it was from 1999, and the disaster wasn't Fukushima, but Tokaimura, in 1999. The cause of that disaster was classified by the IAEA as human error and serious breach of safety protocol.

I don't want to grasp the 'rose' of nuclear power, and I don't want to be stung sitting idly by either.

Carbon Tax - What it really means

Last night, I spent an hour driving back from a clients house, listening to the radio. There was a talk back show, and the discussion was about the Carbon Tax. At, least, it was in a roundabout sort of way.

The question posed was, because Prime Minister Gillard lied before the election about the introduction of a carbon tax, can we trust her now. The response, was, in my humble opinion, astonishing.

What became clear to me was that everyone ringing had little or no idea about the concept of a carbon tax. Whether you agree with a carbon tax as a solution to climate change, or in fact, whether you even believe in human induced climate change, it would be nice if people had an understanding of the issue. I am not so concerned with the 'lying' of our PM (not the first political porkie, and not likely to be the last), but that:
1). Our politicians do not go to sufficient lengths to properly explain the issues in front of the, and conversely, us, and
2). Voters, in general, seem to make very little effort to understand what is happening.

I don't know whether this is because most people are so tied to voting along party lines that they are prepared to accept what is said by their 'leader' or not, but, again, I would love to see people care enough to find out what is happening.

So, I am no economist (phew), but here goes. A Carbon Tax (in brief).

The theory is, that pollution is an economic 'external cost'. That is, a product which causes pollution produces a cost to society that is not factored into the price. As a result, it is overproduced, because the producer of the product does not have to take into consideration this cost when producing the good.

A carbon tax, then, allows a regulator to impose this cost on the producer who causes the pollution, increasing their costs, and also increasing or improving the competitiveness of non carbon technologies.

When people say that is will increase the cost of electricity, the answer is, Yes, it is designed to, providing of course that the electricity is produced through the burning of coal. A caller on the radio last night complained that the Alumina smelter at Gladstone would be negatively affected by the Carbon Tax, because they are powered by a coal burning generator, whereas the Tasmanian smelters are powered by hydro-electricity. Rather than being a negative, this is specifically what it is supposed to do.

More to the point, in my mind, this is simple supply and demand economics. A market based solution to a problem within a competitive market. Ironic then that it is being pushed by the so called 'socialists' on the left, and shouted down by the supposed free market supporters on the right.