Interest rates have risen astronomically since April 2022. With debt levels being discussed around the globe, from the US’ debt ceiling to the Victorian Governments forecast $162 billion in the red by 2025/2026, we thought it a good time to discuss debt management strategies and some Do’s and Don’ts.
Two weeks back in our weekly, we touched on Superannuation death benefits and nominations. Expanding on this topic, we will identify how tax is treated by the recipient/s of a Superannuation death benefit.
Treasurer Jim Chalmers announced the much awaited and debated federal budget last night.
The first Budget surplus since 2007-08 was delivered on higher tax receipts from resource companies and the strong labour market. With inflation still front of mind, the spending initiatives were muted and focused on lower income households. On one hand, the Government needs to assist with cost-of-living difficulties, whilst not adding to inflation, a tough balancing act.
This week we’ll explore some of the more pertinent topics addressed last night. As always, we invite your feedback on what you’d like to read about and topics that you’d most like us to cover.
When you pass away, your assets, other than Superannuation, are generally distributed in accordance with your Will. Superannuation is not automatically included as an asset in your deceased estate and may not be accounted for by your Will.
Therefore, making a death benefit nomination allows you to direct your Superannuation to your preferred dependant/s and/or Legal Personal Representative (your Estate). If there is no nomination, your Superannuation fund will use their own trustee/s discretion to determine whom and in what proportion to distribute your super benefits – this may not be in accordance with your wishes.
In today’s pod we delve into our third component of the asset allocation series; cash and fixed interest.
Certainly not the sexiest of the four broad asset classes, but probably the one that provides investors with the greatest comfort; whether rightly or wrongly.
This week we’re joined by Cam Duncan, Co-Head of the Shaw and Partners Income strategies team. You may recall Cam from our discussion in November 2021 where we were discussing the pending interest rate move and inflation; which played out as discussed.
Today we discuss the asset class itself and its role in a well-diversified portfolio, different types of debt, global opportunities, the specific features of hybrids and the US Debt ceiling.
“I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing.” – Warren Buffet
As we enter our ‘Golden years’, we may start to reflect on our life and what kind of legacy we want to leave for our loved ones and future generations.
Estate planning provides the opportunity to leave behind a lasting impression. Throughout the planning process, existential questions may well be discovered that had not been considered.
In the next few FP weeklies, we will explore this topic and share a few tips worth considering to ensure your loved ones benefit from your lifelong efforts as much as possible.
The MG Alpha Return portfolio fell 10.34%, whilst the ASX200 rose 1.98% in the March quarter. The underperformance can be attributed to three stocks; Jervois Global (JRV), IODM (IOD) and Whitehaven Coal (WHC). For JRV and WHC falling commodity prices caused the large falls, and for IOD there was a small capital raise, along with profit taking. Markets began the year strongly, before retreating on concerns for the banking sector following the collapse of Silicone Valley Bank and Credit Suisse. The Dow Jones rose 0.4%, NASDAQ 16.8% and in the UK, the FTSE gained 2.4%. Interest rate hikes were paused in April as investors now ponder if the next move in rates is down.
Back in 2018/19 the Federal government passed an income tax package, which included numerous tax cuts that were designed to be introduced in stages over several years. The “Stage three” tax cuts are planned to take effect from 1st July 2024. We think it’s a good time to recap what this entails given the Federal Budget is also due to be released on the 9th May 2023.
This is the last of our 3-part series on structures, finishing with the final investment vehicle used by most Australians, Superannuation. Superannuation is an effective investment vehicle to save for retirement, however it is a complex and ever-changing area. The combination of regular contributions, long-term compounding and long-time horizons can create a powerful mix with the right investment strategy.
We return to normal transmission this week as we continue reviewing the 4 broad asset classes generally available to investors and how they can be combined to form an investment portfolio.
A few weeks ago we interviewed Natasha Nankivell, Partner and Founder of Global Alternative Funds who covered off on alternative investments.
This week Ben Morrissey has a chat with Steve Abbott; a property veteran, Managing Director of Jellis Craig Boroondara and Founder of property portal PropertyMate.
The main reason for focussing in on residential property is simple; it represents the majority of most Australians’ net wealth and let’s face it, everyone has an opinion on it and most Australians love discussing it.
Is it overpriced, cheap, which areas will grow the fastest, where are the growth corridors, where are the opportunities?
Following on from our last weekly, this week, we will provide a basic run down of the Proprietary Company investment structure.
Although this is most often used as a structure for businesses, it can also be used as a vehicle for investments. Companies have the ability to own property, shares, enter contracts and are subject to legal liability in the same way as an individual. Whilst shareholders represent part-ownership of a company, it does not give the shareholder any entitlement to the assets of the company or responsibility of any liabilities.
Speak with one of our friendly team members today.
