27 Apr 2017
US Residential Property: Worst financial decision
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Sydney siders don’t understand, Melbournians do not understand, in fact the majority of the Australian population does not understand the impact of residential property prices falling or failing to grow.
The link below takes you to a story which provides an underlying message about the danger of making a large investment in a single growth asset that then subsequently fails to grow.
The investor purchased a residential property in the United States in 2005 and failed to make money but would the story be different if the investor had purchased after the 2008 global financial crisis which resulted in US residential property prices halving on average?
Yes because it would then have become a story about buying a growth asset at a substantial discount.
The point of sharing this story is to remind you all that growth assets such as property and shares cannot be trusted in the short term.
Both the property market and the stock market can substantially drop in price at anytime and without any warning and that then presents an opportunity to buy, not sell.
Click for link.
20 Apr 2017
Superannuation Reform: How much is enough?
- Posted by Dejan Pekic BCom DipFP CFP GAICD
According to the ATO Tax Commissioner there are 2,500 funds in superannuation with assets over $10 million of which 6 have a balance over $100 million.
The fact that the returns on these assets attract a maximum 15% tax or less if the member is in the pension phase of superannuation is the reason for the new maximum cap levels that will apply from 1st July 2017.
However individuals (if under age 65) still have time to make a $180,000 non-concessional contribution into superannuation or to trigger the 3 year bring forward provision and contribute up to the maximum $540,000 into superannuation before the new changes come into effect.
WARNING, these comments do not constitute Personal Advice and conditions apply.
11 Apr 2017
Future of Employment: Jobs
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The demand for talent and the supply of talent is rapidly changing workforce cultures and values.
Attached is a piece on how business will need to discover new ways of recruiting, developing and engaging employees in an environment of limitless data, open boundaries and employees working side by side with AI (artificial intelligence).
The only constant is change which means that to survive and thrive you must learn to adapt and evolve.
5 Apr 2017
Retirement: Cost of Living
- Posted by Dejan Pekic BCom DipFP CFP GAICD
If you are a 65 year old retired couple who owns your own home and wants a ‘comfortable lifestyle’ in retirement then according to the ASFA Retirement Standard you need $59,808 per annum.
The figure is $43,538 per annum if you are 65 and single.
You may be surprised to discover that it is not much less if you are in your 80’s.
Click for latest December 2016 quarter numbers.
This is another reminder of why it is important to keep saving and accumulating for retirement.
3 Apr 2017
China’s tricky transition
- Posted by Dejan Pekic BCom DipFP CFP GAICD
In the world of economics, China is a colossus.
The attached extract is a side by side comparison of China against both the United States and against the Rest of the World.
The numbers are breathtaking and when coupled with India it is a stark reminder about why this is the Asian century.
