ODYSSEY Magazine | Autumn Edition 2016

In this edition of Investment Solutions magazine, we take a look at strategies to help you make the most of the end of the financial year. There are a range of ways to access income through your investments and we discuss some options that may be suitable for you. BT Financial Group Chief Economist, Chris Caton, provides an update on the wellbeing of the Australian economy. Finally, we share some signs you’re in need of a career change and highlight 5 key steps to help you realise the move.
From our team, we wish you and your family a safe and happy Easter. For a full version of our newsletter, please click here  Investment Solutions Magazine Autumn 2016

Until next time – happy reading.

ODYSSEY Magazine | Summer Edition 2015-16

In this edition of Investment Solutions, we take a look at the Australian property market and now things could be shaping up the years ahead.

With interesting rates at historically low levels, we discuss different options to position your portfolio and maximise returns.

In our economic outlook, we hear from prominent economists to understand if Australia is heading into recession.

Planning a holiday? We share 5 ideas that can help you get there without all the financial stress.

From our team, we wish you and your family a safe and happy new year. For a full version of our newsletter, please click here. Until next time – happy reading.

 

ODYSSEY Magazine | Winter Edition

With oil prices dipping in the first half of the year, we investigate what this means for investments. We also discuss how you can ensure you and your loved ones are protected should one of your children suffer an illness. We show how Child Protection allows you the breathing space to be there for your family when they need you most. Piers Bolger, Head of Portfolio Management – eQR Securities, provides us with his regular Market Update, looking at performance both at home and globally. Finally, we discuss the elusive work-life balance so many Australians struggle to attain and arm you with five tips to achieving it.

For a full version of our newsletter, please click here. Until next time – happy reading.

Federal Budget Update ’15

It’s no news that the 2015 Federal Budget was delivered yesterday – Compared to prior years, the 2015 Federal Budget was comparatively light on in its content.

Many of the announcements made on 12 May 2015 had been announced in some detail in the lead up to the Budget, and there really weren’t any hidden surprises. The Government has again promised that “there will be no new taxes on superannuation under this Government, and certainly there were no changes announced on Budget night. This should provide you with a level of comfort that the superannuation system will have a degree of stability for the next couple of years. In fact, the only superannuation announcement of note was a positive move to allow those suffering a terminal illness to access their superannuation savings earlier.

In many previous Budgets, it has been possible to group the announcements into three broad categories – taxation, superannuation and social security. This year’s Budget however provided a change, with the key categories of change being for small businesses, families and pensioners. For small businesses, there were a number of tax concessions

To give you more insight into the announced measures and when they might take effect, we have created a Federal Budget Overview.

If you would like to find out more about how this might relate to your personal circumstances, please do not hesitate to contact us via email 
at info@ofm.com.au or by calling us on 1300 761 669.

Odyssey Magazine – Autumn Edition

With investment properties in Australia being hit by falling rental earnings we examine if buying into Australian property is still a good investment. We also discuss how the recent Australian Tax Office (ATO) changes to assessable income rules around SMSF borrowings may impact the tax you pay. Our regular Market Update from Piers Bolger, Head of Research & Strategy at BT Financial Group, looks at the performance of overseas and local markets. Finally, we remind everyone of the importance of having insurance and ask if you and your family can afford not to be protected.

For a full version of our magazine, please click here. Until next time – happy reading.

– The Odyssey Team

ODYSSEY Magazine – Summer Edition

In this edition we look at some hints and tips that can help your business manage cash flow better in 2015 and beyond. We also look at ways to ensure you are financially prepared when starting a family. Our regular feature from Piers Bolger, Head of Research & Strategy at BT Financial Group, delves into investment sentiment in markets from around the world for the past quarter. And finally we discuss ways to ensure you don’t fall victim to fraudsters this year.

From our team, we wish you and your family a safe and happy new year. For a full version of our newsletter, please click here. Until next time – happy reading.

ODYSSEY Magazine – Spring Edition

In this edition we will identify five key learning’s from the Global Financial Crisis (GFC) more than 5 years on. Our regular feature sees Piers Bolger, Head of Research & Strategy at BT Financial Group, delve into investment sentiment in markets. Finally, we take a look at ways to assist women with small businesses develop their long-term financial health.

For a full version of our newsletter, please click 
here. Until next time – happy reading.

5 lessons from the financial crisis

Lessons from the financial crisis more than five years on

It’s been more than five years since the worst of the Global Financial Crisis (GFC) hit equity and bond markets. While flow-on effects continue to affect financial markets, there are many lessons we have taken from the crisis that can be applied to wealth planning. Here are our top five lessons from the GFC to consider when making investment decisions.

1. Cash needs careful consideration

When the financial crisis started many investors sold higher risk investments such as shares and increased cash holdings. While all investment portfolios should have some allocations to cash, having too much can reduce returns over time. If your investment portfolio is still substantially overweight to cash, now might be the time to consider whether taking this approach will allow you to meet your lifestyle needs in retirement.

2. It’s time in the markets that matters

It’s difficult to pick market cycles. This is why investors benefit from taking a longer-term view to investing. Jumping in and out of the share market increases the risk you will miss the market’s best performing days, which may have a substantial impact on your returns. Even when market downturns occur, if you maintain your investment in shares your assets may increase in value over time.

3. Diversification helps smooth out investment returns

The GFC was an enormously volatile time for share markets. In light of market volatility astute investors have been looking for ways to smooth out returns over time. One of the best ways is to ensure your portfolio includes a diverse array of different asset classes. Markets will always trade with some level of volatility, but taking this approach helps even out the highs and lows over time.

4. Understand your risk appetite before investing

One of the biggest lessons learnt from the financial crisis is to understand your appetite for risk. History shows the returns from equities are considerably more volatile than the returns from less risky asset classes such as cash or fixed income. Hence, if the bulk of your portfolio is held in shares, you need to be conscious that it’s likely the value of your investment will rise and fall to a greater extent than if it was held in cash or fixed income.

5. Advice matters

When markets are volatile it’s easy to take kneejerk reactions and sell down investments that are underperforming at what could be the worst time to make such sales. Instead of taking short-term decisions about your investments,
it’s a better idea to develop long-term investment goals and objectives in line with your financial requirements. We are always happy to help you understand the potential risks and rewards that come with investing. So why not contact us today to find out more about what we’ve learnt from the GFC?

 

Click here to read our full ODYSSEY MAGAZINE – SPRING EDITION

ODYSSEY – Magazine Winter

With the Federal Budget behind us but still fresh in our minds, we take a deep-dive into the proposed Temporary Budget Repair Levy (TBRL) – what it applies to and possible ways to reduce the impact of its implications. In this edition we also take a look at the rules around aged care and how with a little pre-planning, you can avoid having to make difficult and quick decisions about aged care at a time your focus is on your own or your family’s health. Our regular Market Update provides a wrap up of global and local markets, providing a view of what’s to come in the second half of 2014. Finally, we take a look at what you need to do throughout the year to cultivate a great financial future with a year-round financial management plan.

For a full version of our newsletter, please click here. Until next time – happy reading.

2014-15 BUDGET – AND NOW FOR THE GOOD NEWS

There is no denying that the budget announced last Tuesday will bring hip-pocket pain, but it also serves as a timely reminder to take greater control over our personal finances and make the most of opportunities that are out there.

On a big picture level, the overall theme of the budget is to reduce spending to get on top of growing national debt. You can think of the federal budget as being fundamentally no different to your household budget.

Consider this. On the left is a snapshot- straight out of the budget papers- of the federal Budget expenses. Simply re-categorising some of the spending areas gives us a not-too-far-fetched picture of what your household budget might look like.

 

BUDCHAR

 

 

 

 

 

 

 

 

 

 

Of course, the big question is… Where is the surplus? For there to be a surplus the total outflows needs to amount to less than what is coming in. With increases likely to impact your budget in the areas of tax, health and education and an increase in qualifying age for potential government retirement benefits, it is more important than ever to have a good understanding of your personal budget and the opportunities available to help maximise your budget surplus and put this to work in strategies that can help to build wealth.

As with the federal budget, establishing a personal budget is a powerful tool and can provide control and clarity to help you achieve your personal goals, be they resolving a deficit, education funding, or splashing out on a fleet of jets, um, I mean a flight in a jet.

So, you mentioned some good news?!? Yes, as well as putting the spotlight on the importance of having a balanced personal budget, it is really what wasn’t announced that masks the real opportunity in this budget.

  1. No new announcements regarding superannuation contribution caps. This means that for the first time since 2009 the amount that can be contributed to super and be concessionally taxed is set to increase from 1 July 2014 to $30,000pa for those under 50, and up to $35,000 for those who turn 50 or older next financial year.
  • Those who are able to make use of this opportunity could make an immediate tax saving of up to $11,900* per year.
  1. No new announcements regarding the proposed paid parental leave scheme. Whilst this is yet to be legislated, the government has re-affirmed its commitment to the paid parental leave scheme which is set to come into effect from 1 July 2015. This has now been budgeted for and will certainly help those looking to start a family (and those they rely on…) by providing the financial support and added flexibility to make those all-important lifestyle decisions.
  1. No new announcements regarding the proposed corporate tax rate reduction. The government has re-affirmed its commitment to reduce the company tax rate from 30% to 28.5% from 1 July 2015. The flow-on effects should be significant by making Australian business more competitive- this will particularly help the 700,000+ small businesses and the millions that they employ.

There are, of course, many other details that were delivered in last Tuesday’s budget and they affect each of us differently. The key is to look through the noise and focus on the areas you can control. As is always the case with change- it can be tough- but change brings opportunity and now is the time to act to capitalise on opportunities and optimise your wealth creation strategies.

* assuming age 50+ with taxable income between $180,000-$300,000

 

Written by Yosha Steeghs – Wealth Adviser, Odyssey Financial Management

Odyssey-Staff_Yosha

Discover how the inner circle can help you. Contact us today for a financial consultation.

This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs.
Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.
Odyssey Financial Management is an authorised representative of Total Financial Solutions Australia Limited.