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Salary Sacrifice Into Superannuation

More super, less tax What is salary sacrifice? Put simply, salary sacrificing is a pre-tax contribution from your income to your super account, so you’ll have more money to enjoy in retirement. These pre-tax contributions reduce your taxable income so you may pay less tax. How does salary sacrificing work? First, you need to look at your income and expenses, and work out how much of your income you can comfortably give up now, and invest for your retirement. Then you need to arrange with your employer to regularly redirect that amount of your wage to your super account instead […]

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So this is what living through historical moments feels like!

Like the post Brexit reaction the markets (ex Japan) have been remarkably mature about dealing with what was a massive surprise of the Trump victory.   I discovered the VUCA world analogy during recent readings. The American military coined the term VUCA (Volatile, Uncertain, Complex & Ambiguous) world to describe the conditions in Afghanistan and Iraq. Their considered advice was captured beautifully in this quote – “we are moving from a world of problems, which demand speed, analysis and elimination of uncertainty to a world of dilemmas which demand patience, sense making and engagement with uncertainty.”   So engaging with […]

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How elite golfers could help you plan your finances?

In late 2014 Griffith University on the Gold Coast hosted the World Scientific Conference on Golf (WSCG). Julie Knutsen, a lecturer at the university, seized on the opportunity to tee-off some research to answer a question that she’d been considering for a long time: what can elite golfers teach us about making better financial decisions? At the Personal Finance and Investment Symposium (PFIS) held at Western Sydney University last week, Knutsen presented the preliminary findings of her research into whether decision-making processes that lead to the best results on the golf course can also improve results when it comes to […]

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Warning to property investors: you’re trapped in a bubble

You wouldn’t normally expect us to talk about property, but I got some very strong views,  I want to outline. In the year to May 2016 – we know the total number of apartments sold in Australia amounted to about 96,000 units. That’s new, off-the-plan apartments, as well as existing apartments. But in the year to May 2017, the number of off-the-plan apartments due to settle will be almost 94,000 apartments – almost the same number of apartments sold in Australia in the year before. This simply means there are a lot of apartments about to settle. What we know […]

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So this is what living through historical moments feels like!

Like the post Brexit reaction the markets (ex Japan) have been remarkably mature about dealing with what was a massive surprise of the Trump victory.   I discovered the VUCA world analogy during recent readings. The American military coined the term VUCA (Volatile, Uncertain, Complex & Ambiguous) world to describe the conditions in Afghanistan and Iraq. Their considered advice was captured beautifully in this quote – “we are moving from a world of problems, which demand speed, analysis and elimination of uncertainty to a world of dilemmas which demand patience, sense making and engagement with uncertainty.” So engaging with uncertainty, […]

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Technology is changing your relationship with AIIM

It’s the year 2020. After having her morning routine looked after by Google Home – which shows Sue the latest E! Entertainment news feed projected to her shower screen, prepares her Nespresso coffee just to her liking, and reads her Facebook messages to her as she gets dressed – Sue jumps into her driverless UBER taxi and heads off to work. Sue sits back into her heated car seat to read a daily commentary of news items relevant to her retirement and investment portfolio. This includes snippets of news stories from around the web and commentary from analysts and investment […]

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Pitfalls: Helping out your children…

Many clients these days want to provide assistance to their children to purchase property. However, there a few issues to consider. ________________________________________ Scenario One… Rob and Kirsty Scenario: Rob and Kirsty have three adult children. The eldest, Nicky, is married and has asked for help with a deposit in order to buy a home. What’s the issue? If Rob and Kirsty help Nicky, what happens if she divorces? Her husband could claim it’s a gift to them both and end up with a portion of it as part of the divorce settlement. Solutions: Rob and Kirsty can provide the money […]

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Netwealth Managed funds suitable for Investment

A. Active Growth , Morningstar Rating: 4 stars Average return pa over last 4 years: 11.81% Minimum Initial Investment: $1000 Entry Price 12 Feb 2016: $1.3369 Distributions Frequency: Quarterly Responsible Entity(RE): Netwealth Investment Funds(www.netwealth.com.au) To invest in a mix of assets across various traditional and alternative asset classes with the majority of investments being in International Equity 31.54% and in Cash 26.06% via investment in sector trusts. The top 5 sectors are real Estate 16.52%, Energy 14.99%, Financial Services 11.84%, Utilities 11.57% and Consumer Cyclical 8.73%. Those sectors invest in Australia27.85%, United States 15.35%, Japan 15.08%, United Kingdom8.37% and France […]

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Simple ways to save money

Save on groceries Here are some tips for saving money next time you’re at the supermarket: Take a list so you don’t forget anything. Only buy what’s on the list. This makes it easier to stick to your budget. Put your grocery money in an envelope. Don’t take any other cash or cards with you so you can only spend what you have. Buy in bulk and only go grocery shopping once a fortnight. Use all the food in your pantry before you buy more. Eat a meal or snack before you go to the supermarket. When you are not […]

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Investing outside super

Superannuation is becoming the main financial investment that Australians rely on to fund their retirement. With the current market conditions, many Australians wishing to retire are hesitant to cash in their super balance, and are consequently forced to continue working. This highlights the need for diversification in retirement investments. Depending on your stage in life and attitude towards risk, we outline below the different types of investments available to you: Home ownership Investment Properties Shares Savings accounts & term deposits Managed funds Home ownership Historically, the rate of home ownership has been very high and therefore played an important role in retirement planning. This is because […]

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