27 Jun 2019
Warren Buffett, The Oracle of Omaha: “Figure out what works and do it.”
- Posted by Dejan Pekic BCom DipFP CFP GAICD
In only a matter of days we will come to the end of another financial year.
Whether you had a good, bad or indifferent year will no longer matter because a brand new financial year will reset and 30 June 2019 will never return again.
“Figure out what works and do it” is a key secret to success for Warren Buffett and Charlie Munger and given that a brand new financial year begins on Monday we thought it would help you all plan your next 12 months.
Enjoy the read and look forward to seeing you next financial year.
Click to read.
25 Jun 2019
Superannuation Reform: New rules on Concessional Contributions
- Posted by Dejan Pekic BCom DipFP CFP GAICD
A concessional contribution is made when money is contributed into superannuation and a tax deduction is claimed for that contribution and it can come either from the client and or the employer.
It does attract a 15% contributions tax however it can help with reducing taxable income.
From 1 July 2019 clients can carry forward any unused concessional contributions cap amounts that accrue from 1 July 2018 onwards for up to 5 financial years provided that the clients total superannuation balance is below $500,000 at the previous 30 June.
That means that from Monday next week a client will be able to add the unused concessional contributions cap from the financial year ending 30 June 2019 to the $25,000 concessional contribution cap for financial year ending 30 June 2020 provided that the clients total superannuation balance is below $500,000 as at 30 June 2019.
WARNING, this does not constitute Personal Advice. To discuss if this is an appropriate strategy for your given circumstances please do not hesitate to contact us directly.
20 Jun 2019
Interest Rates: Cash is King
- Posted by Dejan Pekic BCom DipFP CFP GAICD
It is true, cash is King but only in a financial crisis.
Term deposit rates, online saver rates, bonus saver rates are all in the process of collapsing.
The problem, there is no true substitute for cash.
You can certainly switch into fixed interest securities such treasury bills, bonds, notes, hybrids, high yield, credit and more but this will introduce risk and the potential for actual capital loss.
If you need options, please call.
Click for chart.
13 Jun 2019
Vehicle Industry: New Car Sales
- Posted by Dejan Pekic BCom DipFP CFP GAICD
In the calendar year ending 31 December 2017 a record 1,189,116 new vehicles we sold in Australia according to VFACTS which aggregates retail sales figures for the Federal Chamber of Automotive Industries.
The new vehicle sales numbers however have been falling month on month since August 2018.
If you compare May 2019 with May 2018 there have been 8,193 fewer new vehicle sales for the month or a 8.1% reduction Australia wide which is significant.
Click for chart.
So what’s the cause? Is it the fall in residential house prices, the tighter lending criteria by the banks, the existing high household indebtedness or the proliferation of ride sharing services? What?
Probably all of it is impacting.
Economic conditions are definitely shifting with the biggest household purchase (primary residence) and the second household biggest purchase (vehicle) having both reduced in sales volume.
The key for investors with all of this market noise is to remain invested according to your appetite for volatility and then, when fear and panic take hold during the next financial catastrophe, to take advantage by buying more quality assets at discounted prices.
4 Jun 2019
Welfare: Lateral Thinking
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Welfare which is also referred to as Social Security is defined as a statutory procedure or social effort to promote the basic physical and material well-being of people in need.
So what are your thoughts on this as a solution to homelessness?
Give people homes as soon as they need them.
Finland is doing this and is the only country in the European Union where homelessness is falling.
This radical idea has used lateral thinking to materially solve a previously unsolvable social challenge. Just think about what else could be solved by applying more of this type of lateral thinking which is all about prevention rather than cure.
Click to read.
