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Personal Wealth Spring 2017

What's Inside

Investment Markets / Understanding Diversification / The importance of planning for aged care

Investment Markets

Recent Events Hurricanes in the US and the belligerence of North Korea initially lead to some volatility in markets but that did not last long. Most Global equities markets are well up in 2017 while the major US equities indices are still hovering around record highs. Global equities are in fact performing much better than Australian equities in local currency terms.

The rise of the Australian dollar from 72 US cents to around 80 cents has somewhat masked the underperformance of domestic equities in 2017. The (Bloomberg) US dollar index, which measures the US dollar against a basket of currencies is down about 10% in 2017, this is almost a 3 year low.

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Personal Wealth Winter 2017

What’s inside… Federal Budget / Investment Markets

Introduction

On the evening of May 9, the eyes of the financial planning industry turned to Canberra as Treasurer Scott Morrison delivered his second Federal Budget. While it did not include the jaw-dropping changes of his first Budget, there was still plenty to interest financial planners and their clients.

Superannuation

First Home Super Saver Scheme Effective date – July 1, 2017

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Personal Wealth Autumn 2017

What’s inside… Superannuation changes for 2017 and beyond / Investment Markets

Superannuation changes for 2017 and beyond

Introducing the transfer balance cap What is it? From 1 July 2017, there will be a $1.6 million transfer balance cap on the total amount of accumulated superannuation an individual can transfer into the tax–free retirement phase. Subsequent earnings on balances in the retirement phase will not be capped or restricted.

Savings beyond this can remain in an accumulation account (where earnings are taxed at 15 per cent) or outside the superannuation system.

Transitional arrangements will apply. People already retired with balances below $1.7 million on 30 June 2017 will have 6 months from 1 July 2017 to bring their retirement phase balances under $1.6 million.

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Personal Wealth Summer 2016

What’s inside…The People Have Spoken / Investment Markets

What it could mean for investment markets

This last year has seen a populist, anti-establishment political trend emerge through the Brexit vote in June and now the election of Donald Trump as the most powerful person in the world.

We also saw this trend continue when the Italian people voted No on Sunday 4 December, in a referendum to change the Italian Constitution of the 3rd largest economy in the Eurozone to effectively give the government more power to make changes and pass laws.

The “No” vote is the third big antiestablishment revolt this year and could cause much instability throughout the Eurozone. Firstly the Italian Prime Minister Matteo Renzi has resigned. Secondly, the “No” campaign was backed by parties that support Italy leaving the euro zone, and with Mr Renzi dethroned, it is quite conceivable for one of those parties to come to power.

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Personal Wealth Spring 2016

What’s inside…

Investment Markets. - US Fed Weighs on Markets / Life insurance - Be prepared for life's emergencies

US FED WEIGHS ON MARKETS

Recent History The last few months has seen some sharp swings in sentiment that has contributed to significant movements in investment markets. Late June 2016 saw a sharp pullback in equity markets as they focused on the negative effects of the Brexit vote. However calm had returned by July with most markets rallying strongly as concerns over Brexit largely dissipated.

The Australian market was one of the best performing developed markets in July with Australian equities (ASX 200) rising by 6.3%. Equity markets struggled in August as market expectations increased that the US Federal Reserve (Fed) would raise rates again before the end of 2016. These worries have persisted in September with equities pulling back and bond yields rising off historical lows. The Reserve Bank of Australia (RBA) cut the official cash rate from 1.75% to 1.50% in August, a new all-time low on lowered inflation expectations.

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Personal Wealth Winter 2016

What’s inside…/ 2016 -17 Federal Budget report highlights. On Tuesday 3 May the Treasurer, Scott Morrison, released the Government's 2016/17 Budget / Investment Markets. Brexit RattlesMarkets / Recent History / Economy / Markets and Outlook / In The Community / Lifespan Advisers pitch in to lend a hand

2016-17 FEDERAL BUDGET REPORT HIGHLIGHTS

WHAT IT MEANS FOR YOU On Tuesday 3 May the Treasurer, Scott Morrison, released the Government's 2016/17 Budget .

The budget contained a number of important changes to the superannuation system, including retirement income streams and tax changes.

Note: These measures are proposals only and will need passage of legislation to become law. The key superannuation changes announced include:

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Personal Wealth Autumn 2016

What’s inside…

New standards for SMSFs investing in collectables and personal use assets. / Investment Markets / Recent History / Economy / Markets and Outlook

New standards for SMSFs investing in collectables and personal use assets.

Only a few months remain before the grandfathering expires and the new rules apply to SMSFs with art, collectables and personal use assets purchased prior to June 2011.

Since July 2011 new SMSF investments in art, collectables and personal use assets have had to comply with the new rules. However these regulations didn’t apply to art and collectables held by SMSFs at 30 June 2011, which were grandfathered under the old rules until 1 July 2016. This is now lonely a few months away.

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Personal Wealth Summer 2015

What’s inside…

Investment Markets / Recent History / Economy / Markets and Outlook / How much personal insurance do you need?

Are you protecting what matters most?

Risk management and personal insurance must be considered as an integral part of the financial planning process. Just as you insure your house, car and other property against loss, you should also ensure that you hold suitable personal life insurance against illness or death.

Have you thought about how your family or your partner would cope financially if you died or were not able to work? Personal insurance can help to prevent your dependents from being financially disadvantaged if you die, suffer a medical crisis or are disabled.

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Personal Wealth Spring 2015

What's Inside

Investment Markets / Mortgages, powerful but complex / China Spooks Markets / Finance Solution

Investment Markets

The event dominating global markets has been the violent pullback in the Chinese share market and subsequent falls in other equity markets.

The wildest ride has been in mainland Chinese shares with the Shanghai Composite Index down 37% in the last 3 months. 

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Personal Wealth Winter 2015

What's Inside

Federal Budget 2015 / Investment Markets

A guide to the 2015/16 Federal Budget Federal Treasurer Joe Hockey delivered the Abbott Government’s second budget, where the main focus was directed towards small businesses, families and changes to age pension asset test. The Budget also laid out plans which aim to restore confidence in the Australian economy.

It is important to note that the Budget announcements are still only proposed at this stage and need to be legislated.

Changes to pension asset test

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Personal Wealth Autumn 2015

What's Inside

SMSF Borrowing / Investment Markets / How we build investment portfolios

SMSF ADVICE CERTIFICATES

A potential roadblock for SMSF property investors.

A certificate of advice, required by lenders prior to settlement, has proven to be a major sticking point for clients looking to borrow and invest in property within a selfmanaged super fund (SMSF).

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Personal Wealth Summer 2014

What's Inside

- New Website- Investment Markets- Super allocations leave 'investors at risk'Lifespan launches new website

Lifespan is inviting clients and visitors to explore our new website.

The new website has been designed to provide a user-friendly experience with improved navigation and functionality throughout, allowing clients and the general public to access detailed information and materials regardless of their stage in life or investment concerns.

The website boasts a modern, colourful design and is divided into three sections: “For Clients”, “For Accountants” and “For Advisers”. Underlying pages provide detailed information on all three aspects of the Lifespan’s functioning.

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Personal Wealth - Spring 2014

What's Inside

Investment Markets / Upcoming Changes to Centrelink for Retirees / Super Contributions Thresholds

Investment Markets

Recent History Equity markets have been characterised by a lack of volatility and have slowly drifted upwards for most of this year. In recent weeks we have had a pullback on concerns that Russian troops massed on the Ukrainian border might invade that country. The shooting down of a civilian airliner by Russian supporters has also spooked investors. Markets seem to have settled down but the situation could easily flare up and impact markets.

The major feature of markets continues to be a rally in higher yielding sectors with Australian listed property and utilities up 9.9% and 9.0% in price terms in the year to date (August 8). The Australian 10 year government bond yield has fallen from 4.2% to 3.4% because investors chasing security have pushed up bond prices. 

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Personal Wealth Winter 2014

What's Inside - Investment Markets  - 2014 Federal Budget Recent History A fairly quiet few months in markets except for the situation in Europe where Russia annexed Crimea after a referendum where it is alleged that over 97% of the turnout voted in favour of joining Russia. The major feature of markets has been a rally in higher yielding...
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