Plan 2 Prosper

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

The difference between deductible and non-deductible debt lies in the after tax cost. Non-deductible debt and interest costs are repaid with after tax income, while deductible debt reduces assessable income and provides a tax benefit. Debt generally becomes deductible when the purpose of the funds is to produce assessable income.

Let’s consider a loan of 11% in the 2010/11 Financial Year. If the loan is used for private purposes, for example a boat or a car, the cost is 11%. However, paying 11% for a finance facility that is used for investment purposes, eg shares, would reduce the cost of the facility according to the following formula:

I x (1-MTR)

Where:

•      I = interest rate

•      MTR = marginal tax rate

At the top marginal tax rate (45% plus 1.5% Medicare levy), the actual cost of the finance would fall to:
0.11 x 0.535 = 5.885%.

Marginal tax rate for $80,001 – $180,000 of 38.5% (37% plus 1.5% Medicare levy), the actual cost of the finance would fall to:
0.11 x 0.615 = 6.765%.

Marginal tax rate for $37,001 – $80,000 of 31.5% (30% plus 1.5% Medicare levy), the actual cost of the finance would fall to:
0.11 x 0.685 = 7.535%.

Marginal tax rate for $6,001 – 35,000 of 16.5% (15% plus 1.5% Medicare levy), the actual cost of the finance would fall to:
0.11 x 0.835 = 9.185%.

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

During a recent discussion with a client we explored some ratio’s which helped them to analyse the risk associated with their investment property. These ratio’s were similar to those used to analyse the inherent risk of other investments.

One specific ratio I thought was worth sharing was the “break even point”. The break even point is where the income from the property covers the total expenses of the property including interest payments. It is designed to calculate the liquidity and risk associated with the property. The formula is as follows:

Break Even Point = (operating expenses + interest only debt repayment) divided by Gross Possible Income.

Example:

• A property has operating expenses of $10,000, interest only debt repayments of $16,000 and an expected income of $27,000
• BE = (10,000 + 16,000)/27,000
  BE = 0.96

For a positively geared property the ratio will be less than 1 and should reduce over time. For a negatively geared property the ratio will be greater than 1.

Where to from here?

If you would like to discuss this topic 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

There are tens of thousands of potential investments available. They can be grouped based on their similarities into “asset classes”. MLC have produced a concise blurb regarding the 3 main groupings of asset classes – shares, property & debt securities.

Find it at this link .

Naturally enough each of these 3 groups can be split into narrower and narrower groups based upon a nearly infinite categorisation scale. Extra grouping is good for the experts but for us common folk it’s somewhat unneccessary to complicate things even further.

Think of a buying a pet fish, dog or cat. There are lots of different types of fish, cats and dogs to consider but when you have made your purchase, it’s still likely to be called either a fish, cat or a dog.

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

As April was a month of mixed fortunes for sharemarkets, what has it meant for MLC funds?

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

• the impact of ongoing sovereign risk concerns in Europe
• in contrast, the encouraging news coming out of company earnings reports, and
• how MLC funds have fared

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

How can you benefit from opportunities in the Federal Budget 2010?

On the back of the Henry and Cooper reviews, this year’s Federal Budget is one of the more eagerly anticipated.

But how will it impact you and your family? How can you make the most of any opportunities it presents?

To find out, subscribe to MLC’s 2010 Federal Budget e-newsletter.

Less than 24 hours after the Budget is handed down, you’ll receive expert information and analysis detailing the key measures, and how they’re likely to affect you.

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

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

• monthly and one year returns for the MLC Australian Share Strategy
• the performance of the bond markets,
• and what it means for the MLC Balanced and Growth Funds.

You may or may not hold these specific funds but I believe the general information supplied will aid in your ongoing understanding.

View the April MLC Fund Performance Update video here.

Global share markets have continued to improve in 2010, despite the ongoing problems in Greece. In this update, MLC’s Investment Strategist Brian Parker looks at the latest economic data, globally and locally the RBA’s decision to raise the cash rate to 4.25%, and what it means for financial markets.

View Brian Parkers March market 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

With February a good month for sharemarkets, what has it meant for MLC funds? In this update, MLC’s Senior Investment Strategist John Owen looks at:

• MLC Australian Share Strategy performance in February
• the outperfomance of MLC Australian bonds managers, and
• what it means for the MLC Balanced and Growth Funds

To view the video, click the following link:

View the March 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