Plan 2 Prosper

My kids, like most others, have finished the 2010 school year, and we have been juggling our time keeping them occupied and avoiding cabin fever; while finalising thos things that need to be finalised before we close the office this afternoon (Friday 17 December 2010). All things going to plan, we will reopen for business on Wednesday, January 5 2011. While the office is closed, we’ll be spending much needed time with our family and “relaxing” to charge up our batteries for next years challenges.

Like many I’m struggling to keep focussed for the last few hours before we close for the 2010/2011 Christmas and New Year period. Inspiration for this post hasn’t really been forthcoming so forgive me a small indulgence while I recylce some of the content offered in December 2008.

In 2008, I commented about being amazed that our boys enjoy the less costly activities while camping and travelling just as much as the more expensive treats. This week it has been great to see them outside in our cul-de-sac playing cricket with other from around the neighbourhood, instead of being stuck all day on the play station (that being said with our heat, they’ve still spent their fare share of time pressing electronic buttons).

And the Grinch, with his Grinch-feet ice cold in the snow, stood puzzling and puzzling, how could it be so? It came without ribbons.  It came without tags.  It came without packages, boxes or bags. And he puzzled and puzzled ’till his puzzler was sore.  Then the Grinch thought of something he hadn’t before.  What if Christmas, he thought, doesn’t come from a store…What if Christmas, perhaps, means a little bit more.  ~Dr. Seuss

This year our markets have recovered much lost ground, however with the continued uncertainty, volatility and turmoil that remains many of you may be again be feeling like the Grinch continues to try and steal Christmas. Rather than reading the financials over Christmas or watching the red and green triangles when the news comes on, take a step back and recall those other great experiences you have had and hold onto them instead … let’s hope the Australian cricket team does the same.

Our plan to buy some gifts throughout the year to ease the financial burden has worked wonders for our bank balance so far. Now we just need to be careful of how we spend our money while we are travelling and visiting relatives. In the old days, it was not called the Holiday Season as it is for many people today through political correctness. The Christians called it ‘Christmas’ and went to church; the Jews called it ‘Hanukkah’ and went to synagogue; the atheists went to parties and drank. People passing each other on the street would say ‘Merry Christmas!’ or ‘Happy Hanukkah!’  or (to the atheists) ‘Look out for the wall!’ .

Whatever your plans over the next few weeks, we trust you enjoy many good experiences and safe travelling to and from your destination, if doing so. Consider the words of D.D. Monroe who commented,

“It is the one season of the year when we can lay aside all gnawing worry, indulge in sentiment without censure, assume the carefree faith of childhood, and just plain “have fun. Whether they call it Yuletide, Noel, Weinachten, or Christmas, people around the earth thirst for its refreshment in the same way as the desert traveller for the oasis.”

Borrowing from John Lennon, and …..

So this is Christmas
And what have you done?
Another year over
And a new one just begun

And so this is Christmas
I hope you have fun
The near and the dear one
The old and the young.

A very Merry Christmas
And a Happy New Year
Let’s hope it’s a good one
Without any fear

Thanks for your permission to be of service to you in some small way in 2010. Here’s to a prosperous 2011 for one and all.

Where to from here?

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

The typical Australian family looks somewhat different in the 21^st century than it did during the economic glory days of the 50′s & 60′s, where the stereotype saw 3 children supported by a breadwinner dad and a stay-at-home mum. Since that era, Australians have tended to get married later, have fewer children and do so when they are older. Indeed, more than half the babies born this year are likely to be to parents aged 30 and over.

Regardless of the best intentions of parents, the reality is that children cannot be raised on love alone. While there is no actual fixed or absolute cost of a child – a range of variables will impact on how many financial resources any individual family dedicates to the task – some clear patterns have emerged from various research projects undertaken to examine the topic. (more…)

Was recently asked by a client, the following question that would likely be on many peoples minds: How do you think the markets are going, do you think there is an imminent “crash” – should we move anything?

The following response was provided as a combination of my own thoughts from attempting to digest many different sources of information.

If considering three potential market outcomes:

1. Investing for V Shaped recovery – if you think this is going to happen, funnel lots more funds into growth oriented assets.
2. Investing for Deflation – if you think this is going to happen, get everything out now preserve all your capital and hide all your cash under your bed.
3. Investing for the Muddle Through scenario

In a post GFC environment it is quite possible that higher market volatility and general uncertainty will be with us for some time. A number of market commentators have expressed the view that the global economy appears vulnerable to a double dip recession. I recognise this, but don’t entirely share the concern, and instead regard the current period as a shift from acceleration to moderation in economic growth.

To many commentators, the “muddle through” scenario seems most probable, at least for the next 2-3 years. Under this scenario, risk assets such as equities may struggle to appreciate above the 2007 highs for a much longer period. This scenario suggests that risky (think more volatile) assets can still provide a reasonable rate of return but should be used with more caution.

Looking forward, if share markets have entered a muddle through consolidation phase, where capital gains are less predictable or stable, then it appears, based on history, that the more reliable and predictable returns provided by dividends on equities and other income generating investments, will once again become a much more significant and valued source of portfolio performance. This is not a radical viewpoint – it is simply turning the clock back to an earlier period in time where this investment reality persisted. Seeking to maximise after tax returns as opposed to pre tax returns may be viewed as more desirable in an environment where total returns are lower and less certain. This could be by using complex products or as simple as using strategies such as salary sacrifice and transition to retirement pensions to make use of the concessionally treated superannuation environment.

By continuing to spread assets across a number of asset classes you give yourself a good opportunity to gain one of the few “Free Lunches” available in investment markets, that is, you can lower the risk within a portfolio without significantly lowering your long term portfolio returns.

Where to from here?

If you would like to discuss the thoughts offered or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

While sharemarkets around the world were up in September, bond yields have generally fallen back as central banks maintained their conservative stances.

In this update, MLC’s Investment Strategist Brian Parker looks at:

• the performance of share and bond markets
• the jump in the Aussie dollar, and
• what it means for return prospects.

View the October market update video here.

Download Brian Parker video script.

Where to from here?

If you would like to discuss the topics raised in this video or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

Sharemarkets in August failed to consolidate on the promising start to the new financial year.

In this update, MLC’s Senior Investment Strategist John Owen looks at:

• the effects of the US economic data on sharemarkets,
• the one-year return for the Australian sharemarket, and
• performance across MLC investments.

View the September MLC Fund Performance Update video here.
Download John Owen video script.

Where to from here?

If you would like to discuss the topics raised in this video or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

While fixed income assets offer SMSF Trustees clear rewards, lack of access and a preference for holding direct assets has prevented these investors from fully benefiting from the asset class. Managed funds offer investors in this asset class unique advantages which should be reconsidered by SMSF Trustees and their advisers. Quality credit assets today offer compelling value. (more…)

From the tens of thousands of potential investments available most people want to make a reasonable return for the level of risk being taken. MLC have produced a concise blurb regarding understanding returns from your investment.

Find it at this link .

Naturally enough types of returns can be split into narrower and narrower groups based upon the investors needs and the type of investment. Extra grouping is good for the experts but for us common folk it’s somewhat unneccessary to complicate things even further.

Learn enough to find out what you need to know and recognise what you don’t. When you don’t know something and feel you need to learn more, seek advice from someone who is in a position to help you better understand.

Where to from here?

If you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

Ongoing European sovereign debt concerns continue to impact markets and investor confidence. In this video update, MLC’s Investment Strategist Brian Parker looks at:

• the persistant issues with Greece and Europe
• the mixed bag of economic numbers in Australia, and
• what it all means for investors.

View the June market update video here.

While sharemarkets continue to suffer from the European debt crisis, other influences have also contributed to a difficult month for investors. In this fund performance update, MLC’s Senior Investment Strategist John Owen looks at:

• the effect of the resources tax on the Australian sharemarket
• the drop of the AUD against major currencies, and
• one year returns for the MLC Horizon 4 & 5 Portfolios

View the June MLC Fund Performance Update video here.

Where to from here?

If you would like to discuss the topics raised in this video or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

If you are eligible …. it’s quite possibly the easiest money you’ll ever make.

The super co-contribution is a government measure to boost superannuation savings. If you are a low or middle income earner, you may be able to receive the super co-contribution from the government by making eligible personal superannuation contributions to your superannuation fund. You do not have to contribute the full $1,000 to be eligible – any amount up to $1,000 will attract the super co-contribution.

The government co-contribution:

• must be preserved in a super fund or retirement savings account (RSA) – it can only be accessed when other preserved amounts can be accessed
• is not included as income in your tax return
• will not be subject to tax when paid to the fund or RSA provider
• will not be taxed when received as a benefit.

Prior to 1 July 2007, only individuals who received income from employment-related activities were eligible to receive the co-contribution. However, from 1 July 2007, the co-contribution initiative has been extended to include self-employed persons.

The maximum co-contribution payable and the way the ATO work out the amount of co-contribution payable depends on the financial year in which you made your eligible personal super contributions.

Following is a link to a calculator provided by the Australian Taxation Office. Use the Super co-contribution calculator .

This is a tool to help individuals, including the self-employed, estimate their co-contribution entitlement and eligibility, based on information provided about:

• income
• personal super contributions.

In the ATO tool you will need to enter the amounts of your:

• personal super contributions
• employment and business income, including partnership distribution
• any reportable fringe benefits amounts
• any reportable employer super contributions
• any other income.

For individuals with business income, you must also enter the amount of business related deductions.

If you have any doubts about your ability to do this, or you would like advice and assistance to guide you through the many options, act now to get the knowledge and mentoring that you need.

Where to from here?

If you would like to discuss the topics raised or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060

This morning at breakfast,  I had another one of those magic moments, where I had a strange sense of parental dejavu …. I’m sure you know, what I mean … one of those moments where if I could turn back the clock to when I was the child, I could visualise my father saying the very same thing to me that I said to my son - ”You know money doesn’t grow on trees, so …  No, it’s not likely you’ll get everything on your list for your brithday”.

 Within the many google news alerts I received this morning was an article by Gregory Karp, South Bend Tribune – Financial advice from Fathers which I enjoyed.

Apparantly, in America at the moment many retailers dub the coming time of the year “dads and grads”, a catchy phrase reminding you to buy gifts for Fathers day and imminent graduations. Gregory Karp combines some other catchy phrases we all may have experienced variations of over time in with this time of the year. Perhaps my own dejavu experience drew me to the article.

Many dads consider it their mission to educate their children in some of the rules of the real world. Helping their children to learn to tell themselves “No” or suffer the consequences. Overspending is a rite of passage of sorts for many people. The easiest way to say “No” is when you have a reason, so create money goals for something you want more than daily temptations comes forward … for example: saving for house down payment, paying cash for your next car or saving for wedding, travel or honeymoon.

In his article Gregory Kapp expands a little further on the following sage advice you may have received:

• Save for your future
• Save for a rainy day
• I’m not made of money … what do you think I am, a bank?
• Live within your means
• Would you jump off a bridge if your friends did? … Look before you leap

I know I found myself nodding while recollecting some of those very same words coming out of my fathers mouth over the years before his passing.

I’d be interested to learn what gems of sage advice have you absorbed from your family?  

Where to from here?

If you would like to discuss the topics raised in this post or if you would like more information, speak to your financial adviser or contact Dan Smith of Plan 2 Prosper on 07 49265 570.

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

Dan Smith is self employed and is for many families their trusted Financial Planner based in Rockhampton. He has clients in various locations throughout Australia but predominately in Central Queensland and specifically the geographic area encompassed by the Rockhampton Regional Council.

This information is intended to only provide you with general information and, while the sources for the material are considered reliable, no responsibility is accepted for any inaccuracies, errors or omissions. Before making a decision based on this information, you must consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain professional financial advice specific to your circumstances.

Dan Smith and  Dancin Pty Ltd ABN 71 531 338 371 trading as Plan 2 Prosper are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, an Australian Financial Services Licensee, with its Registered Office at 105 – 153 Miller St, North Sydney NSW 2060