Federal Budget 2017

First home savers, downsizers and small business are the winners in Treasurer Scott Morrison’s second Budget – while taxpayers face an increase in the Medicare levy. Note: These changes are proposals only and may or may not be made law. Contributions from downsizing the home Date of effect: 1 July 2018 Individuals aged 65 or Read more…

How Much Should You Save for Retirement?

INTRODUCTION Most people ask themselves this question at some point in their working life (hopefully, relatively early). With the continued shift toward defined contribution plans, future retirees are being asked to take on more responsibility for their retirement outcomes than in the past. So the question is of vital importance. But do we have a Read more…

Budget 2015

Income tax changes Personal income tax There were no changes to personal marginal tax rates for resident or non-resident taxpayers in this year’s Budget. However, the following changes in relation to personal income tax were announced: Motor vehicle expense deductions – The number of methods available for calculating tax deductions related to the business use Read more…

The 7 Truths of Investing in a Volatile Stockmarket

Volatility is back. Just as many people were starting to think the stockmarket only ever moves in one direction, the pendulum has swung back the other way. Anxiety is a completely natural response to these events. Acting on those emotions, though, can end up doing us more harm than good. There are a number of Read more…

Great financial planning finally has a value: 23 per cent more in retirement

Financial planners are familiar with alpha and beta as drivers of long-term investment portfolio returns; but now there’s a third letter to add to the lexicon – gamma – and according to Morningstar, it’s the value created that can be directly attributed to sound financial planning. Portfolios optimised using five techniques identified by David Blanchett, Read more…

Sliding Doors: The Financial Sequel

Sound investing for the long term is not just about sticking to your chosen pathway. It also means staying off those investment paths that can derail your journey. In the 1998 British-American romantic comedy ‘Sliding Doors’, the story revolves around two contrasting life outcomes for the central character, played by Gwyneth Paltrow, all stemming from Read more…

Long-Term Thinking: 1800-2013

Long-Term Thinking died on Tuesday. His last true friend, Vanguard founder Jack Bogle, was at his side. He was 213 years old. Long-Term Thinking lived an illustrious life since the start of the Industrial Revolution, when for the first time, people could think about more than their next meal. But poor incentives and the rise Read more…

The Vacationers’ Guide to Investing

Two colleagues went on vacation separately. One had a great time. The other had a miserable experience. Their respective stories provide valuable lessons, not just about taking a holiday, but about investment. Frances booked a beach house up the coast for a week. Brian opted for six nights of bush walking through the mountains. Frances Read more…

Retirement Income Planning: Live Long and Layer

YOUR MONEY  FINANCIAL PLANNING WEEK 2013   thewest.com.au Monday, August 26, 2013 Australians are likely to live longer and could spend more than 30 years financially dependent on super, investments and the age pension.  In 2010-11, the average retirement age was 53.3 years, 57.9 for men and 49.6 for women, according to the Australian Bureau of Statistics. Today’s 65-year-old man has a life expectancy of Read more…