Why Trying To Time The Share Market Can Be A Really Dumb Idea!!

Investing and financial advice is often about making sensible and informed decisions, and for most people it should not be about major speculation.

In recent months I have been amazed at the number of new client discussions I have had where their investments have been in cash. In some cases they have been invested in cash since the Global Financial Crisis when they sold out in a panic, and in other cases it has been for the last year or two because they were concerned share markets were about to correct.  In all cases they have missed out on a substantial return on their investments because they have taken an extreme position without advice.

I am certainly not saying that 2018 is not without significant share market risks but there is a lot of value to be gained through seeking assistance before you make decisions.  Once you have made an extreme investment decision and got it wrong, it is much harder to then decide what to do next.

It is very normal to be concerned or excited about investments from time to time and at those times there is always a question about how to manage the situation. Think carefully before you commit to a high risk binary solution: all in or all out.  It is often far better to modestly adjust the cash levels in your investments over time in consultation with your adviser, to sensibly manage the situation and to give you more options down the track.

If you are foolish enough to be in a set and forget investment and have accepted the default position on your level of risk, you may have made a poor choice. Your investment portfolio manager is certainly not going to consider your individual needs or concerns as they invest on behalf of thousands of other investors with a ten or twenty year investment horizon.  If you want a tailored outcome you need to be proactive and initiate sensible changes to your portfolio that are right for you.

At the end of the day, share markets are more a measure of fear and greed. When investors are fearful share markets tend to fall and when investors are greedy share markets tend to rise.  Unfortunately for many investors they tend to follow the herd and make decisions at the extremes in the investment cycle, and the outcome is not always ideal.

Hot Tip: Everyone’s financial situation is different so now might be a good time for you and your Financial Adviser to review and understand the risks you are taking with your investments.  In periods of share market volatility and uncertainty, nervousness can result in wealth passing from weak hands to strong hands so make sure you have a plan for how you will respond to a share market correction as it will come eventually.

We do not agree to help everyone but if you feel you need a second opinion on your superannuation and financial position, contact The Financial Advice Shop to see if we can add value.

www.financialadviceshop.com.au

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

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Are You Being Ripped Off With High Superannuation And Investment Fees?

There has never been a better time to review your superannuation investments and consider options to reduce costs. If you do not take action, you can be 100% sure that no one else will and you should not feel secure simply because you are using an industry super fund.  You should also not underestimate the negative effect high fees could have on your financial security.

In recent years, superannuation and investment costs have been steadily falling but unfortunately those costs are often not passed on to investors and often increase when members retire. There are a variety of reasons why so many investors are not benefiting from lower superannuation and investment costs, some of which relate to conflicted financial adviser remuneration and commissions that are paid from inflated fees.  If you have been invested in a financial superannuation or investment product for a number of years, it is time for a review!

None of the superannuation or investment recommendations from The Financial Advice Shop have hidden fees or commissions so you can be confident they are extremely cost effective and represent excellent value for money. Our superannuation and investment offering is very unique and it is a fact that we regularly save many new clients thousands, and in some cases tens of thousands, of dollars in ongoing fees every year.

While you are thinking about fees, make sure you also think about your strategy and the risk in your investments! We know from experience that it is extremely rare that improvements and refinements to existing strategies will not yield improved results.

HOT TIP: The need for honest and practical financial advice has never been greater, so contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you understand all of your fees and future superannuation investment options.

www.financialadviceshop.com.au

#superannuationfees #superannuation #financialadvicecanberra #superannuationcosts #financialplannercanberra #financialplanningcanberra #retirementplanningcanberra

If You Or Someone You Know Has Recently Lost An Entitlement To The Age Pension: Continue Reading!!

The rules for Age Pension entitlements change on 1 January 2017. For a large number of retirees being assessed under the Assets Test, this has meant they have lost their entitlement to a Part Age Pension.  It is estimated that approximately 326,000 people will be adversely affected by these changes.

A summary of the old Age Pension Assets Test rules versus the new Age Pension Assets Test rules are as follows:

Disqualifying limits for the Full Age Pension*

  2016 Rules 2017 Rules
Single homeowners full pension assets must be less than $209,000 $250,000
Single non homeowners full pension assets must be less than $360,500 $450,000
Couple homeowners full pension assets must be less than $296,500 $375,000
Couple non homeowners full pension assets must be less than $448,000 $575,000

 

Disqualifying limits for the Part Age Pension*

  2016 Rules 2017 Rules
Single homeowners part pension assets must be less than $793,750 $542,500
Single non homeowners part pension assets must be less than $945,250 $742,500
Couple homeowners part pension assets must be less than $1,178,500 $816,000
Couple non homeowners part pension assets must be less than $1,330,000 $1,016,000

*as at September 2016 and some figures may be subject to indexation in the future.

Source https://www.humanservices.gov.au/customer/enablers/assets#assetstestlimits

If you have most of your retirement savings in a superannuation pension account and have lost your entitlement to a Part Age Pension due to changes in the Assets Test, you should consider contacting us.

We regularly find retirees are paying excessive superannuation fees that can usually be dramatically reduced. If we can reduce your fees and investment performance is not compromised, is it likely you will then have more money to spend in retirement?

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay. New client places are strictly limited but to get things started, we can offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

We have never had anyone say that our Financial Advice Health Check wasn’t value for money! If you are referred by someone we know, you will even get a discount!

www.financialadviceshop.com.au

#agepension #partagepension #agepensionchanges #agepensionchanges2017 #retirementplanningcanberra

Don’t Let Your Future Retirement Concerns Become A Miserable Reality!!

Imagine a 30 year retirement where you couldn’t afford to enjoy yourself? No one would actively plan for this outcome but sadly it is a reality for a very large number of retirees. Don’t let this happen to you.

Relying on your employer’s superannuation contributions and holding your hand out at retirement for an Age Pension in the hope that this will make everything OK is a very poor choice. A far better outcome is to make smart investment decisions, save tax effectively through voluntary superannuation contributions in a low fee environment over many years and as a result make yourself 100% financially self sufficient in retirement. It really is time for everyone to start taking more responsibility for their retirement outcomes.

When it comes to achieving a comfortable retirement, making additional tax effective superannuation contributions over long periods of time is critical. The greater your retirement expectations, the more you need to do to ensure you achieve your goals. If you are planning to have less than $1,000,000 in investments (excluding the family home) at retirement you are probably setting your sights too low.

If you are starting to think about your retirement, or know you should be planning for your retirement, it is time to start taking action with a trusted financial planning advice discussion to “see what’s possible”.

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay. To get things started, we offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

http://www.financialadviceshop.com.au

#retirementplanningcanberra #financialadvicecanberra #superannuationcanberra #retirementadvicecanberra

Are You Still Being Ripped Off With High Superannuation And Investment Fees?

There has never been a better time to review your superannuation investments and consider options to reduce costs. If you do not take action, you can be 100% sure that no one else will!!

In recent years investment costs have been slowly falling but unfortunately those costs are often not passed on to everyone. There are a variety of reasons why many investors are not benefiting from lower superannuation and investment costs, some of which relate to conflicted financial adviser remuneration.

None of the superannuation or investment recommendations from The Financial Advice Shop have hidden fees or commissions so you can be confident they represent excellent value for money. It is a fact that we regularly save many new clients thousands of dollars in ongoing fees every year.

HOT TIP: The need for honest and practical financial advice has never been greater, so contact The Financial Advice Shop without delay to arrange a cost effective Financial Advice Health Check to ensure you understand all of your fees and future superannuation investment options.

www.financialadviceshop.com.au

#superannuationfees #superannuation #financialadvicecanberra #superannuationcosts #financialplannercanberra #financialplanningcanberra #retirementplanningcanberra

The May 2016 Federal Budget Will End Superannuation As We Know It

On 3 May 2016 the Australian Treasurer, Scott Morrison, handed down his first Budget and changes to superannuation were a core theme.

While there is plenty of focus on things that are perceived as negative changes, let’s not forget there are also some important changes that are potentially quite good news.

It is important to note that the Budget measures will not become Law unless Legislation to support the measures is passed in Parliament. Until that time, the Budget measures are simply a proposal.

A detailed summary of the 2016 Federal Budget has been prepared by The Financial Planning Association of Australia and is available via the following link:

2016 Federal Budget Summary

HOT TIP: In relation to superannuation reforms, most of the 2016 Federal Budget measures are planned for a 1 July 2017 commencement so there is plenty of time to plan.

www.financialadviceshop.com.au

#superannuation #May2016federalbudget #superannuationadvice #retirement #womenssuper #retirementplanning #financialadvice #retirementadvice #earlyretirement

Don’t Be An April Fool: There’s Only Three Months Until The End Of Financial Year And You Have Plenty Of Things To Think About!

So what are some of the things you might need to think about before the end of the financial year?

April is a great month to review your salary sacrifice contributions and make sure you are on track to maximise the opportunity in the current financial year. If you have not made any salary sacrifice contributions in the current financial year, you still have time to make a solid start.  If you have been salary sacrificing and could do more, now might be a good time to think about ramping it up.

When it comes to tax effective superannuation contributions, there are a number of very simple strategies involving a drawdown from other assets to help you tax effectively contribute more than you might otherwise be considering.

April is also a great month to be thinking about splitting superannuation with your partner. Reasons to split super can vary but common reasons include equalising super balances or an age difference that means one of you is much closer to retirement.  You have until the end of June this year to split 85% of last financial year’s concessional superannuation contributions.

There are also personal contributions for the Government co-contribution and spouse contributions for the spouse rebate that might be worthy of further consideration depending on your circumstances and eligibility.

If you have sold an investment property or another asset and have triggered a capital gain, don’t forget you may be able to use superannuation contributions to assist with managing any capitals gains tax liability. You still have plenty of time to seek advice and think, plan and act.

There might also be things to prepay or purchase to bring forward a tax deduction in the current financial year. Make sure you start the conversation with your tax adviser before it is too late.

If you are self employed, don’t leave it to the last minute to plan and make your superannuation contributions. If you are planning a superannuation contribution, make sure it is received in your superannuation account well before the end of June.  We’ve seen it far too often where a contribution is delayed by an electronic transfer and the contribution ends up counting towards next year’s contribution limit and that can really stuff things up.

If you are thinking about superannuation contributions, don’t forget to review your superannuation fund fees. Believe it or not, there are options available that are more cost effective than the industry funds but few advisers will present them to you.

Finally, the 2016 Budget will be handed down on 10 May and it is difficult to predict how it might affect future investment decisions. There is a case for superannuation investors to bring forward their investment decisions in the hope that they can lock in some existing entitlements.  Time will tell if this approach has merit.

HOT TIP: Don’t turn into an April fool because you are time poor, lazy or disorganised.  As a minimum, take a moment to get some sound advice and plan your course of action for the three remaining months in the current financial year!

www.financialadviceshop.com.au

#superannuationadvice #superannuationcontributions #financialadvice