Educational

So what did we learn?

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In this article, Don Stammer adds some much needed balance and clarity, first explaining what happened during the first ten weeks of January, and then moving on to some universal lessons we all need to remember during periods of uncertainty. Read more here

This article was recently published on the 'Cuffelinks' website, a free weekly newsletter for investors and advisers which I wholeheartedly recommend to anyone looking for an intelligent, impartial investment website. For more information, go to cuffelinks.com.au

Or alternatively, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

14/03/16: Turn your "shoulds" into "musts"

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Good advice from Tony Robbins...

How many times have you told yourself what you “should” do?

I should lose weight. I should be more confident. I should earn more money. I should have a more passionate relationship.

People have an endless list of things they believe they should do or should follow through on. And these “shoulds” carry about the same weight as a New Year’s resolution — that is, if it happens, then that’s exciting. But if not, it won’t be too disappointing because you kind of knew it wasn’t really going to happen anyway.

But what happens when you decide something is an absolute “must?” What happens when you cut off any other possibility than you succeeding — when you decide that you are either going to find a way to make something happen or you’ll create the way yourself?

When you raise your standards and turn “should” into “must,” you are making an inner shift to take control over the quality of your life. Any area you are not getting what you want is because you haven’t raised your standards.

Take your relationship, for example. This is a direct reflection of your standards. Some people are in a relationship right now but they aren’t happy because their standard is that they must be in a relationship, not that they must have passion and excitement and pure joy and love. Others may not be in a relationship because their standard is that they must not be hurt.

If you want real change, you have to be willing to do your part. And it starts with asking yourself, honestly, who you are.

Are you a winner? Or are you always a step behind? Are you the life of the party? Or are you more reserved?

Answering this question and discovering what your true beliefs are about yourself is critical. Because this is your identity. And the fact is we are hard-wired to follow through on who we believe we are.

Consider someone who is trying to quit smoking. He may say to himself, “I’m going to do my best to stop smoking, but I’ve always been a smoker.” It doesn’t matter how hard he tries, if his identity is that he is a smoker, it’s futile. And the days until he is back smoking again are numbered. Because we act consistently with and ultimately become who we believe we are.

Most people, if they look at how they are living their lives today, will find that their identify is based on a set of standards and a set of beliefs they created 10, 20, 30 or more years ago. In fact, many of us made decisions when we were kids about what to believe, what we are capable of, and who we are as a person, and that became the glass ceiling that controls us. But are you the same person you were back then? Are you the same person you were even a year ago?

Eventually, most people simply stop trying to break through that glass ceiling. They chock it up to “that’s just the way it is in my life,” or tell themselves “that’s just who I am.” But ironically, when you do this, you are actually denying who you really are. You are living under a false identity that is based off of false beliefs you adopted some time in the past.

So how do you define yourself? And when did you start to believe that? How many years ago did you decide what you could and could not do in your life? Don’t you think it’s time to raise your standards, turn your “shoulds” into “musts” and give yourself a new identity?

The strongest force in the human personality is the need to stay consistent with how we define ourselves. And you may just find that by making these changes, you can make lasting change in your quality of life. - Tony Robbins

Subscribe to the Tony Robbins newsletter here.

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

11/03/16: Buffett's letter to investors

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Once again Warren Buffett has presented a compelling long-term view of the growth potential of the US economy. In doing so he draws upon his long lifetime experience to explain that betting against the USA was and remains a foolish investment endeavor…

“For 240 years it’s been a terrible mistake to bet against America, and now is no time to start. America’s golden goose of commerce and innovation will continue to lay more and larger eggs. America’s social security promises will be honoured and perhaps made more generous. And, yes, America’s kids will live far better than their parents did.”

The following few sentences, from his introduction, make some telling observations about the last 80 years and the future of the USA..

“It’s an election year, and candidates can’t stop speaking about our country’s problems (which, of course, only they can solve). As a result of this negative drumbeat, many Americans now believe that their children will not live as well as they themselves do. That view is dead wrong: The babies being born in America today are the luckiest crop in history. American GDP per capita is now about $56,000. As I mentioned last year that – in real terms – is a staggering six times the amount in 1930, the year I was born, a leap far beyond the wildest dreams of my parents or their contemporaries. U.S. citizens are not intrinsically more intelligent today, nor do they work harder than did Americans in 1930. Rather, they work far more efficiently and thereby produce far more. This all-powerful trend is certain to continue: America’s economic magic remains alive and well.”

“Today’s politicians need not shed tears for tomorrow’s children. Indeed, most of today’s children are doing well. All families in my upper middle-class neighbourhood regularly enjoy a living standard better than that achieved by John D. Rockefeller Sr. at the time of my birth. His unparalleled fortune couldn’t buy what we now take for granted, whether the field is – to name just a few – transportation, entertainment, communication or medical services. Rockefeller certainly had power and fame; he could not, however, live as well as my neighbours now do. Though the pie to be shared by the next generation will be far larger than today’s, how it will be divided will remain fiercely contentious. Just as is now the case, there will be struggles for the increased output of goods and services between those people in their productive years and retirees, between the healthy and the infirm, between the inheritors and the Horatio Algers, between investors and workers and, in particular, between those with talents that are valued highly by the marketplace and the equally decent hard-working Americans who lack the skills the market prizes. Clashes of that sort have forever been with us – and will forever continue. Congress will be the battlefield; money and votes will be the weapons. Lobbying will remain a growth industry.”

Warren Buffett's logical and optimistic sentiments serve as a gentle reminder to investors, retirees and superannuation members alike that current economic or market conditions are not necessarily predictive. We are always in a 'cycle', and like all cycles (good or bad), they eventually must come to an end.

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

01/03/16: Will politics get in the way?

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Probably ok, but worth keeping an eye on...

As if the worry list for investors isn't already long enough, politics is turning out to be a key issue for investors, retirees and superannuation members this year. Read more here

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

25/02/16: Aged Care: Plan ahead

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If the need for residential aged care is nearing, following these five steps will help you make a smoother transition. Aged Care 5 Steps to Consider Aged Care, Plan Ahead For The Care You Want

For more information, contact Rick Maggi at Westmount Financial on 9382 8885.

02/02/16:Super or the mortgage?

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Many people wait until their home loan is paid off before investing more in super. However, if you are currently making more than the minimum home loan repayments, you may be better off when you retire if you make additional super contributions instead. Super or Mortgage?

For more information, contact Rick Maggi at Westmount Financial on 9382 8885.

29/01/16: The super savings gap

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While as a nation we collectively face a large retirement savings gap, there are a number of smart things you could consider doing to help make sure your future financial security isn't at risk. Read more here

For more information, contact Rick Maggi at Westmount Financial on 9382 8885.

28/01/16: The plunging oil price...

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Falling oil prices are currently in lockstep with share prices, which is unusual. So understandably, plunging prices have been seen in a negative light, but is it all bad news? Is there an upside to low oil prices? AMP's Dr Shane Oliver takes a balanced look at this recent phenomenon. Read more here

01/01/16: Here's to You...

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When we look back at the things that helped make 2015 a great year, our warmest and fuzziest feelings come when we think of you, our client.

So thank you for choosing Westmount. Here's to another prosperous, healthy, exciting year full of possibilities!

The Westmount Team

22/12/15: LIFE Insurance: Counting the cost of a curve ball...

Here's a confronting question: what would you do if the main breadwinner in your household could no longer bring in an income? Do you have a Plan B? Most people don't. That's where insurance comes in. Insurance: Counting the cost of a curve ball

For more information, contact Rick Maggi at Westmount Financial on 9382 8885.

04/12/15: A constrained year for investors

As the end of 2015 draws to a close, it's a good time to take a look at the year we've had, but also consider what the year ahead might look like. With the US economy accelerating, and Chinese growth slowing, we're moving into less familiar territory, potentially unnerving inexperienced and seasoned investors alike - so going forward you'll need to keep your wits about you.

AMP Capital's Dr Shane Oliver provides an excellent overview of 2015/16. Read more here

Rick Maggi Westmount Financial Clear Focus. Better Solutions.

14/12/15: Retiring from a small business?

Selling a small business can be a challenging, complicated and uncertain time. So too can retiring. Combine the two and you have a situation where early planning and advice is critical. Retiring from Small Business

For more information, contact Rick Maggi at Westmount Financial on 9382 8885.

Rick Maggi Westmount Financial Clear Focus. Better Solutions.

26/11/15: How well protected is your business?

Business Insurance essential...

If you're like many business owners you have already insured the physical assets of your business from theft, fire and damage. But have you considered the importance of insuring yourself - and other key people in your business - against the possibility of death, disability and illness.

Not being adequately insured can be a very risky oversight, as the long term absence or loss of a key person can have a dramatic impact on your business and your financial interests in it.

Read more here

For more information, contact Rick Maggi at Westmount Financial on 9382 8885.

Rick Maggi Westmount Financial Clear Focus. Better Solutions.

20/11/15: Second hand news

Media and the markets

Why don't the media run more good news? One view is bad news sells. If people preferred good news, the media would supply it. But markets don't see news as necessarily good or bad. Read on

Rick Maggi Westmount Financial Clear Focus. Better Solutions.

14/11/15: Active vs Passive: The Latest Scorecard

Not looking great for active managers...

The Standard & Poors scorecard, which compares active manager investment performance with index fund performance is here, and the results further validates Westmount's investment philosophy - great news for our clients. Read more here

Rick Maggi Westmount Financial Clear Focus. Better Solutions.

06/11/15: Seriously, let's talk about your retirement...

It's all about income

A record number of Australians are entering retirement and the majority have no idea how they’ll pay for it.

Over half of Australians don’t believe their superannuation fund will provide enough income for a comfortable retirement, forcing them to either work longer or find additional income sources, according to a new report by the Financial Services Council and ING DIRECT.

The report found 55 per cent of Australians believe they’ll need to work longer and draw on other assets such as property to fund their retirement. One in nine Australians are counting on an inheritance.

The report also found that workers of all ages were open to the idea of working beyond their planned retirement age in order to build enough wealth to pay for retirement, mindful that mental and physical health and access to employment were potential impediments.

It’s clear from the report’s findings that the majority of Australians don’t have any certainty or confidence when it comes to retirement and they need to start planning a lot earlier.

For many Australians, it simply won’t be possible to work well into their 70s nor do they have other assets or a wealthy benefactor to fall back on. Even those fortunate enough to have wealthy relatives can’t bank on an inheritance given Australians are now living longer than ever which increases the risk of potential benefactors exhausting most of their wealth before they die.

This conundrum highlights the importance of saving and planning for retirement early. It also highlights the need for financial advisers to help more people prepare for, and transition to, retirement.

A professional adviser can help clients work out how much income they’ll need to meet their retirement needs and goals, and put a plan in place which will maximise the chance of them achieving their goals with minimal risk.

The amount of income people need in retirement is highly individual and depends on factors such as their lifestyle and expectations. The report found around half of workers believe $500,000 is enough to fund a comfortable retirement. A further 39 per cent estimate that they need $1 million or more to achieve their retirement goals.

By comparison, the Association of Superannuation Funds of Australia (ASFA) estimates the lump sum needed to support a comfortable retirement is $640,000 for a couple and $545,000 for a single person, assuming they own their own home and receive a part Age Pension.

An encouraging takeout from the report was that consumers, particularly baby boomers, were increasingly engaged with their superannuation and keen to take control of their wealth. Baby boomers were also the most likely group to have received professional financial advice.

If you need to take another look at your retirement or superannuation, call Westmount or your current adviser, before the holiday season takes hold.

Beginning 2016 with a clear picture and an achievable retirement action plan will make for a more relaxing break and an energised start to the new year.

Rick Maggi Westmount Financial Clear Focus. Better Solutions.

This update is published by Westmount Financial/Westmount Securities Pty Ltd (ABN 42 090 595 289/AFSL 225715). It is intended to provide general information only and does not take into account any particular person’s objectives, financial situation or needs. Because of this, you should, before acting on any information in this document, speak to us and/or a taxation/finance professional.

26/10/15: Offset Accounts: Better balance

...a better way to manage your mortgage

If you want to repay your mortgage quickly and still have easy access to your additional repayments, an offset account may be worth looking into. Read more here

For more information, contact Rick Maggi at Westmount Financial on 9382 8885.

Rick Maggi Westmount Financial Clear Focus. Better Solutions.

18/09/15: The Cycle of Market Emotions

Seem familiar?

Produced by Russell Investments, I'm afraid to say that this particular illustration, going back to August 1984, brings back many, many memories. Worth a quick look. View Here

Rick Maggi Westmount Financial Clear Focus. Better Solutions.

17/09/15: Putting recent share market falls in context

Implications for investors

At the time of writing, the Australian share market (ASX200) has fallen by 13% since the highs of February this year, much of this occurring over the last couple of months. It also seems that the usual doomsayers have been working overtime, doing their level best to frighten investors into either subscribing to their alarmist newsletters, buying their books or engage investment services. On the other side of the spectrum you have some perennially optimistic fund managers and financial advisers who prefer to bury their heads in the sand, refusing to acknowledge that the landscape has changed.

Of course, the truth is usually somewhere in between, and very few commentators strike the right balance better than AMP Capital's Dr Shane Oliver. In this article, Dr Oliver provides a calm, balanced, 'grown-up' perspective of the recent share market falls, and their place in history. As usual, this publication is a must for anxious retirees and investors. Read more here

Also, read 9 rules for investors to keep in mind

Going forward from here, Westmount clients will continue to be kept apprised of the latest important developments, in real time, good news, or bad.

Rick Maggi Westmount Financial Clear Focus. Better Solutions.