Tips and Other News Archives - Page 2 of 4 - Jennings Financial Services

End Of Financial Year

The financial year is a 12 month time period that is used for tax purposes. For Australians, the financial year ends on 30 June, with the next financial year beginning on 1 July. From 1 July through to 31 October both individuals and businesses are required to submit a tax return form to the Australian Taxation Office (ATO). The ATO then use this form to determine how much tax is owed to the government, or how much the government needs to reimburse the individual/business if they have paid more tax than was owed. End of financial year checklist Before you get stuck into your tax return this year, make sure that you have considered the following: Credit cards Make good use of your tax return by using to pay off any credit card debt you may have. Rather than using the cash you receive to fund more purchases, use it to pay off your debts and get your financial [...]

By Bruce Jennings|2020-06-18T14:09:53+10:00June 18th, 2020|Tips and Other News|0 Comments

Three realities and three mistakes

If market declines make you nervous, then you’re not alone. Especially now, when COVID-19 and its economic impact are fuelling feelings of uncertainty around the world. But while bear markets can be extraordinarily difficult, they also can be moments of great opportunity. Investors who find the courage and conviction to stick to their long-term plans are often rewarded as markets bounce back. To help put recent markets into perspective, we outline three facts about market recoveries and three mistakes that investors should avoid. Three facts about market recoveries Fact #1: Recoveries have been much longer and stronger than downturns The good news is bear markets have been relatively short compared with recoveries. They can feel like they last forever when we’re in them but in reality, they are much less impactful compared to the long-term power of bull markets. Although every market decline is unique, in the US, the average bear market since 1950 has lasted 14 months. The average [...]

By Bruce Jennings|2020-06-10T14:10:02+10:00June 10th, 2020|Market News, Tips and Other News|0 Comments

GFC vs Coronavirus

GFC vs Coronavirus – The current pandemic is like nothing the world has ever seen before. This time last year we were in a very different place. Many people are now questioning whether we are heading into a period of economic crisis reminiscent of the days of the Global Financial Crisis (GFC). Let’s compare this current Coronavirus crisis to the GFC of 2007/2008. Whilst it is still early days in the current crisis, there are similarities and differences we can make with the GFC. We believe an investor’s response to these crises should be similar, with the adage “time in the market is more important than timing the market” remaining appropriate. This is illustrated in the following chart; As you can see above, even if you had invested just prior to the start of the GFC in late 2007, in the following years you would have reaped the benefits of a strongly rising market, in both Australian and [...]

By Bruce Jennings|2020-04-08T14:59:09+10:00April 8th, 2020|Tips and Other News|0 Comments

The case for Calm with COVID-19

https://www.ampcapital.com/au/en/insights-hub/Videos/2020/march/the-case-for-calm-with-covid19?csid=1229034487 Please click on the link to watch the Webinar from Dr Shane Oliver - Head of investment strategy & Economics & Chief Economist at AMP Capital. This isn’t the first human health emergency we’ve seen, and it won’t be the last. Shane Oliver shares his views and projections on the COVID-19 outbreak, drawing on tried-and-tested lessons for managing and protecting investments during a crisis. This is a plain English webinar, that is extremely informative about the current market conditions and what you can expect going forward. If you have any concerns or questions please contact Bruce

By Bruce Jennings|2020-03-18T09:54:18+11:00March 17th, 2020|Market News, Tips and Other News|0 Comments

Market Fall On Oil Price

What has caused the Market Fall on Oil Price & Coronavirus Shocks? What happened? Global share markets have fallen in recent days driven by a collapsed oil deal and coronavirus impacts. The Australian share market fell 19.6% from its peak on 20 February 2020 to 9 March. This means the gains of 2019 have been lost with the index back at Dec-18 levels. Why have share markets fallen this much? A case of two shocks Coronavirus fears for global economic growth Share markets have fallen following growing concerns over a global Covid-19 (a.k.a. coronavirus outbreak). This virus is related to the SARS outbreak that affected Asia, notably China in 2003. It has proven to be difficult to control and sparked outbreaks outside of China, across much of the world with Italy, Iran and South Korea the most notable cases. As the outbreaks outside of China escalated, investors retreated from shares and fled to safe assets such as bonds as [...]

By Bruce Jennings|2020-03-17T13:44:37+11:00March 17th, 2020|Market News, Tips and Other News|0 Comments

The Link Between Financial & Mental Health

It may seem obvious that financial stress would have a direct impact on people’s health and happiness. However, new research from Fidelity International suggests that Australians are not making the link between financial health and our overall wellbeing. Fidelity’s survey of over 2,000 Australians shows almost half of us worry about money at least weekly, with one in four worrying at least daily. And having money doesn’t necessarily make people immune from anxiety. More than a third of Australians with more than $1 million of assets to invest still worry at least monthly. What are Australians worrying about? We have enjoyed more than 25 years of uninterrupted economic growth and Australia has not experienced a recession since 1991. Our superannuation system is the envy of many parts of the world and most people have now been accumulating savings to fund retirement since the Superannuation Guarantee started in 1991, a healthy last 28 years ago. Despite this, less than one [...]

By Bruce Jennings|2020-02-14T14:47:13+11:00February 14th, 2020|Tips and Other News|0 Comments

Small Steps to Great Success

If you want to get ahead, financially, it’s necessary to take some steps to get there. It may seem daunting and overwhelming but like anything, if you have a professional guiding you along the way, small steps can lead to something great. Step 1 | Seek advice It’s hard to achieve great success without a team of experts behind you and your wealth is no different. Getting professional financial advice means your adviser can work through a myriad of options with you and implement a strategy aligned closely to your financial goals. Retirement planning, tax-effective super strategies, investments and estate planning? Your financial adviser can help. Step 2 | Understand what role risk plays One of the first things your financial adviser will do is work out your risk profile, which they will check at regular review meetings. Why? Because risk is related to return, and this will help drive the recommendations they make to you in terms of your financial [...]

By Bruce Jennings|2020-02-05T12:28:49+11:00February 5th, 2020|Tips and Other News|0 Comments

No Grizzly Bears in This Market

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 [...]

By Bruce Jennings|2019-03-12T11:25:38+11:00December 6th, 2018|Market News, Tips and Other News|0 Comments

KIDS & MONEY – How To Educate Your Children

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 [...]

By Bruce Jennings|2019-03-12T11:25:38+11:00August 23rd, 2018|Tips and Other News|0 Comments

Superannuation Reform – Downsizing

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 [...]

By Bruce Jennings|2019-03-12T11:25:38+11:00August 6th, 2018|Market News, Tips and Other News|0 Comments