An article by Shane Oliver; Share markets remained under pressure last week but I remain of the view it’s unlikely we’re sliding into a grizzly bear market as conditions aren’t in place for recession in the US, globally or Australia US shares fell 3.8%, Eurozone shares lost 1.6%, Japanese shares fell 0.2%, Chinese shares fell 3.5% and Australian shares declined 0.3%. Reflecting the “risk off” tone bond yields fell, credit spreads widened and commodity prices fell, with the oil price down another 11% over the last week, leaving it down 34% from its high in early October. The $US rose slightly and this weighed on the $A. Shares retesting October lows – double bottom or resumption of the slump? Share markets fell back to around their October lows over the last week. A retest of the lows is quite normal after the sort of fall we saw in October. Whether markets form a double bottom and head back up or [...]
Kids & Money - How do you educate your children about money without handouts? The problem with just giving money to your children is that there is the real possibility of ruining them financially as adults. We have linked a research paper about the Invisible-Money Generation which is about how money for children no longer exists in just the form of paper and coin. For example, V-Bucks are used in Fortnite as currency to purchase items. The purpose of the research is not to alienate our children from the evolution of money but to help us as parents understand our own attitude towards money (whether relaxed, engagers, avoiders or troopers) so that we can educate our children about money. The article attached is a research paper discussing and explaining how the younger generations (Gen Z & Gen Alpha) see their money and the best ways to communicate with them regarding good money management. The article also covers current terms used and [...]
Superannuation Reform; Downsizing - What does it mean for you? Downsizer superannuation contribution has arrived from 1 July 2018 which means that if you are 65 years or older you can choose to make a downsizer contribution into your superannuation of up to $300,000 each from the proceeds of selling the primary residence (your home) without having to satisfy the work test. Your downsizer contribution is not a non-concessional contribution and will not count towards your contributions caps. The downsizer contribution can still be made even if you have a total super balance greater than $1.6 million. You can only make downsizing contributions for the sale of one home. You can't access it again for the sale of a second home. Downsizer contributions are not tax deductible This is an opportunity for clients who do not qualify for the Age Pension because it does not count towards the individual total super balance cap $1.6 million but it will still count towards the [...]
Ethical Investments - What does it mean? Socially responsible investing (SRI), or social investment, also known as sustainable, socially conscious, "green" or ethical investing, is any investment strategy which seeks to consider both financial return and social/environmental good to bring about a positive change. The term describes an investment process that incorporates environmental and social factors when selecting investments, in addition to the objective of achieving a competitive financial return. Investing ethically means that you know what your money is doing and what it is funding. In general, socially responsible investors encourage corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Some avoid businesses involved in alcohol, tobacco, fast food, gambling, pornography, weapons, contraception/abortifacients/abortion, fossil fuel production or the military. The easiest approach is to view Ethical Investing as a spectrum from "deep green" to "light green" products that let people invest according to their level of conviction. The deep-green end includes ethical funds that avoid sectors considered harmful — for example, tobacco, controversial weapons (landmines), pornography and companies that earn a significant amount of revenue from fossil-fuel industries. Ethical funds usually have relatively higher fees [...]
It’s a daunting world for the first home buyer; skyrocketing median house prices, interest rates and an influx of lending platforms can scare off would-be home owners. Many wonder how they will save a deposit large enough to outbid seasoned investors, and parents feel helpless watching their children’s dreams of owning a home slip away. It can feel like one step forward, two steps back when it comes to saving your first deposit. Fortunately, there are many strategies we utilise to remove stress and get your child into the market right away. The guarantor structure is a great way to boost your child’s purchasing power without laying down your own cash. This strategy is perfect for home owners who have a bit of extra equity in their home, but who are hesitant to hand over their savings or borrow against the family home. You are able to access your home’s equity to secure a portion of the new property, [...]
JPMorgan’s head of financial planning, Michael Liersch, shared tips for new investors. Liersch says most investors can be successful if they have a plan, manage their perspective, and stay the course. He also recommends that investors ask someone else – a friend, family member, or financial adviser – to look at their investment strategy and challenge it. Whether you are looking to start saving for retirement or you want to put some extra cash in the stock market, investing can seem daunting to the inexperienced. But investing doesn’t have to be complicated, says Michael Liersch, head of goals-based advice and strategy at JPMorgan. In fact, Liersch told Business Insider that most investors can be successful if they have a plan, manage their perspective, and stay the course. 1. Make a plan Liersch thinks the first thing someone should do before investing is create a budget and see where your money is currently going. “As a simple first step, roughly estimate how much of your [...]
Did you know that if a client is not a member of Qantas Frequent Flyer we can offer them complimentary free membership if they have or sign up for a OneCare insurance policy? This is a saving of $89.50 For each dollar the client spends on premium, they will be able to get 1 QFF point. Free points for paying their insurance premiums! Click HERE to the link to sign up for free. You can also offer this complimentary free membership to your existing OnePath clients who will then be able to get QFF points going forward. Why not run it as a campaign? A full client listing can be obtained online via OneView Life by clicking on ‘Policy Details Extract’ in reports which confirms which clients do/do not have QFF already. If you would like more information, please just let me know!
Matt Bushby, Global Head of Distribution, explains RARE’s specialist view on infrastructure and the key infrastructure characteristics we look for. He also examines why it can be limiting to view the infrastructure opportunity as the ‘Trump trade’. Q. Firstly, what is Infrastructure? Infrastructure is the physical assets that provide an essential service to society. Put simply, these are the services we use and interact with every single day. For instance, we use gas, water and electricity to carry out our daily activities and we also use infrastructure, such as rail and roads, to get from location to location. Broadly, infrastructure can be categorised into two key buckets: regulated assets and user-pays assets. With regulated assets, the regulator determines the revenues that a company should earn on their assets. If an asset earns too much, then the company is required to return some of its revenues to its customers by lowering prices. Conversely, if the asset earns too little, [...]
Every now and then I come across an article which all of my clients should know about and this article from Caitlin Fitzsimmons is no exception. I totally agree with Caitlin that every parent with kids under 18 need to have a will and for good reason. Please have a read of Caitlin Fitzsimmons Why everyone needs a will, especially parents.
Know the odds today, be prepared for tomorrow, Plan realistically. As humans, our perception of risk versus reward is often drastically different to reality. And yet those perceptions shape important choices we make. Lets see if we can align our perceptions more closely to the realities.