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A recent “Centrelink News For Seniors” publication highlighted some information of particular relevance to any grandparent’s caring for a child in a formal or informal arrangement. It appears you may be eligible for assistance from the Family Assistance Office, taking the form of a Family Tax Benefit, which helps with the cost of raising children. Read the rest of this entry »
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
Many people often question investing in international markets, as they feel those markets are too foreign to them … they just don’t know enough about what international markets are about.
Yes, there can and are many complex ways of looking things but you can also take a much simpler approach. By investing in international shares, you can benefit from the world wide success of many well known brand names you come across every day. Let’s talk through what could be a typical daily journey.
Start of the day at home:
On the way to work:
Day at the office:
Unwind at the pub:
End of day at home:
The quick examples above are by no means an exhaustive list. Take comfort from the brands you are exposed to from everyday use.
Growing your wealth reminds me of a Chinese Proverb about growing trees:
The best time to plant a tree was 20 years ago. The 2nd best time is now.
As we’ve said before, don’t wait for the best time to invest – start as soon as you can through a regular investment plan, or using any lump sums you receive that are surplus to your immediate needs. The sooner you start, you sooner you can continue growing your wealth.
The best approach for anyone contemplating further wealth creation will depend on his or her own personal and financial circumstances, but the key message is that you must do something! There are many strategies that wealth creators can access if they don’t have vast sums of money or other resources available to them.
It is important to regularly review your plan. This helps you take advantage of any current or future opportunities created by:
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.
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 21st 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. Read the rest of this entry »
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:
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.
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:
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.
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:
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.
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. Read the rest of this entry »
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.
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.
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
