Where to from here?
New home sales data released today for May by the HIA confirm that the housing market remains chronically weak right now. This article looks at the outlook for Australian house prices. Rick Maggi Read more here
28/06/12: What about the US?
Greek relief for now - but what about the US?
In addition to providing a brief update on Europe, this note (courtesy of AMP Capital) focusses on the US economy, both in terms of the slowdown evident in some economic indicators and the impending fiscal tightening from January 1 next year. Read more here
26/06/12: 7 contradictions in the Euro crisis
It's fixable...
Jim O'Neill, Chairman of Goldman Sachs Asset Management, in his latest issue of Viewpoints looks at 20 contradictions regarding the euro area issues. Here are 7 key contradictions... Read more here
26/06/12: Alert: 30% Health Insurance Rebate
Pay your health insurance in advance and save...
Please note that the Government is applying an income test to the current 30 per cent rebate it gives us on our private health insurance. That means higher income earners (singles earning over $84,000 and households earning over $164,000) will be progressively slugged up to 30% more on their health insurance from next Monday.
However, the ATO allows you to prepay your health insurance for the next financial year (as long as you do it before the end of the week) which effectively means you can lock in the rebate, potentially saving you thousands of dollars. Rick Maggi Try HBF Rebate calculator here
25/06/12: End of financial year checklist
Plan for the year ahead...
With June 30 fast approaching, now is a good time to review your portfolio and plan for the year ahead. And this year, there are a few time sensitive issues surrounding superannuation that you may want to pay particular attention to. Below is a useful checklist which you may want to quickly run through to ensure that you are fully prepared for 2012/13. Rick Maggi EOFY Checklist
16/06/12: Central banks ready to act
Greece votes
Central banks from major economies stand ready to take steps, including coordinated action, to stabilise markets as world economies prepare for a possible financial storm after cliffhanger elections in Greece this Sunday. Read Reuters article here Also, what happens to Greece if they leave the euro? Watch Bloomberg video here (70 seconds) Rick Maggi
19/06/12: Vanguard lowers their fees
Because costs matter...
Vanguard has formally announced that they will be significantly reducing the investment fees they charge on their most popular funds to well below industry averages. Vanguard recognise the significant impact that costs have on investment returns and with many of their fund fees now dropping to jaw-dropping lows, our clients now have a greater chance of investment success. We congratulate Vanguard. For more information contact us on 9382 8885. Rick Maggi.
11/06/12: Super: Big changes for over 50s
The caps come down on July 1st...
The 'concessional contributions' caps for superannuation contributions are being significantly reduced on 1 July 2012, so if you're over 50 this could impact you in a number of ways. These two articles focus of the caps themselves plus 'transition to retirement' strategies. If in doubt, please contact us before the end of June - its extremely important to get this right. Rick Maggi
23/05/12: Q&A: Greek euro exit and implications
Olivers Insights
This article looks at the various issues around Greece's possible exit from the Eurozone. Read here Rick Maggi
16/05/12: Greeks heading back to the polls
Markets slump...
The Australian share market fell to a two-month low this afternoon, led by miners, as Greece's political leaders prepare for a second election in just over a month. Read more here.
05/05/12: Federal Budget 2012
What the Budget means for the economy and investors...
Last night's Federal Budget contained only a few surprises as many of the measures had already been legislated pr pre-announced. The main winners were lower income earners, families and the elderly. Below is a summary of the budget measures ('Budget Wrap') plus two videos from Dr Shane Oliver which discuss the implications from and economic and market perspective. The main proposals which may affect you, our client, include
(1) the deferral of higher contribution caps for individuals aged 50 and over - in other words, everyone will be limited to $25,000 in concessional contributions for 2012/13;
(2) reduced tax concession on concessional contributions where annual income exceeds $300,000;
(3) the company tax rate cut has been abandoned;
(4) a range of means testing arrangements for social security benefits.
If you have any questions regarding the budget, don't hesitate to contact me personally. Rick Maggi
21/04/12: Aged-care changes to aid baby boomers
Landmark aged care changes announced
The Government has released a range of proposed changes to aged care and options for older Australians.
Many of the proposals address issues raised by the Productivity Commission including (a) options to allow individuals to continue living in their home (b) contributions to the cost of care by individuals and (c) centralised areas for seeking information. At this stage there is no legislation to support the changes, so it is possible that the details may change once legislation is introduced into Parliament.
A quick video summary can be found here. For more specific details, feel free to contact Westmount. Rick Maggi
18/04/12: IMF expects solid Australian growth
Good news...
Today, the International Monetary Fund (IMF) kept a broadly upbeat outlook on Australia's economy. Read more here Rick Maggi
22/03/12: Mining boom to shift into overdrive
$60 billion export surge
The pay-off from the surge in resource investment is at hand, with rapid growth in export volumes now evident and set to continue for the next 5 years, far outweighing any weakness in prices. Read more here. Rick Maggi
14/03/12: Dow Rises to Highest Level Since 2007
Good news...
US stocks advanced strongly again, sending the Dow Jones up over 200 points, to the highest level since 2007, well past 13,000. Read more here
30/03/12: Shopping for advice
ASIC's 'Shadow Shopper' survey is in...
In this article, Vanguard's Robin Bowerman discusses the recent shadow shopper survey results and what it all means. Rick Maggi Shopping for advice
22/02/12: Europe seals Greek bailout
Default averted, but risks remain
Please read on for information about the new deal. Rick Maggi Wall Street Journal
17/02/12: Greece & Europe: What are the risks?
What's the risk of a disorderly default and euro break-up?
Utterly exasperated, many would now like to see Greece immediately comply or leave the Eurozone. This article looks at the risks and potential impact. Rick Maggi Read here
07/02/12: Rates left on hold
The Reserve Bank has shocked the markets and homeowners by deciding to keep rates on hold at 4.25 per cent.
Despite overwhelming pressure for a rate cut the RBA has adopted a more conservative "wait and see" approach after two consecutive rate cuts last year.
The Australian dollar shot above $US1.08 immediately after the RBA announcement and the stock market shed 35 points as investors digested the surprise move. The RBA board judged the setting was "appropriate" as growth was close to trend, lending rates were close to their medium term average and inflation close to its target level.
Clearly, the RBA has left the door wide open for future rate cuts, depending on whether global and local economic conditions deteriorate much further. Rick Maggi
30/11/11: Mini-Budget 2011
Superannuation and tax announcements
Read below for a summary of the Federal Government's mini-budget announcements. Rick Maggi Mini Budget 2011-12