…perhaps a little longer
An interesting read for a recurring theme out there. Read more here.
Rick Maggi Westmount I Financial Solutions
18/08/14: How does the world see you?
A fascinating exercise…
I think this is a must read for all of our clients and colleagues… Read here
Rick Maggi. Westmount. Financial Solutions.
14/08/14: Why I love dividends
…and so should you
Another great read from Dr Shane Oliver. Enjoy. Read here
Rick Maggi. Westmount. Financial Solutions.
24/07/14: Investment Outlook 2014
Another solid year, but where to from here?
An excellent, easy to read commentary. Enjoy! Read Commentary Here
Rick Maggi. Westmount. Financial Solutions.
24/06/14: The Seven-Day News Diet
Are you informed or inundated?
Having worked with investors and retirees for over 30 years, there is no doubt in my mind that anxiety levels are higher today than they were 10, 20 or 30 years ago, thanks largely to 24/7 news cycles. Personally, I'm utterly addicted to the news and would probably feel a little lost without my regular news 'fix'. But that's part of my job, to separate the daily background noise from what really matters most, and then communicate the facts to my clients, as simply as possible.
Sadly, 24/7 news is impacting on investor behaviour, but there is a way to build and protect your wealth without getting caught-up. Read more here
Rick Maggi, Westmount. Financial Solutions.
09/06/14: Abenomics
Good for Japan. Good for investors. Good for Australia.
Party politics aside, this is a big positive. Read Here
Rick Maggi. Westmount. Financial Solutions.
11/06/14: Europe getting its act together
…and what it means for investors
Dr Shane Oliver takes a close look at the European landscape. Very encouraging. Enjoy! Rick Maggi. Westmount. Financial Solutions.
11/06/14: The Certainty Principle
When investors wait for certainty...
A frequent complaint from would-be investors is that "uncertainty" is what keep them out of the financial markets. "I'll stay in cash until the direction becomes clearer," they will say. So when has there ever been total clarity? Rick Maggi. Westmount. Financial Solutions.
06/06/14: The structural challenges facing Australia...
…and what it means for investors.
A sobering, but balanced commentary from AMP Capital's Dr Shane Oliver. Worth a read in this blurry, politics laden post-budget environment. Enjoy! Rick Maggi, Westmount. Financial Solutions.
01/06/14: Budget update (for retirees)
Some further clarification...
The following is a quick, easy to understand summary of some of the key changes impacting retirees. Since the budget was released, we've noticed quite a bit of confusion surrounding the new Age Pension deeming rules (coming into effect from 1 January 2015), and the proposed rules impacting Commonwealth Seniors Health Card holders in January 2015, and July 2014. Hopefully this summary will make things a little clearer.
Of course, these budget measures will need to be passed by Parliament, so it will be interesting to see what the final outcome really is. We'll keep you posted. Rick Maggi, Westmount. Financial Solutions.
13/05/14: Federal Budget 2014/15
Tough Love...
Good evening.
Tonight's Budget announcements, while reasonably tough, were not particularly surprising considering all of the speculation leading up to the event. Of course, passing these measures through Parliament will be an interesting challenge indeed.
With a little luck, our Budget deficit will fall from its current $49.9 billion level to $29.8 billion next year, closing in on surplus territory by 2017-18.
Thankfully, the Government held firm on its commitment not to make adverse changes to superannuation, although changes to social security and the temporary budget levy are likely to impact a number of clients.
Focusing on the financial planning space, the three key areas for clients to consider are as follows:
Personal Income Tax and the Budget Repair Levy
With the exception of the temporary 'Budget Repair Levy', personal income tax and thresholds will remain unchanged from 1 July 2014.
The Budget Repair Levy will essentially be a 2% tax on individual's taxable income in excess of $180,000 pa. The levy is scheduled to last three years (2014-15, 2015-16 and 2016-17).
Individuals with taxable income of $180,000 or below will pay no levy.
Commonwealth Seniors Health Card
At present, superannuation account-based income is excluded from the Commonwealth Seniors Health Card (CSHC) income test, which is $50,000 for singles and $80,000 for couples.
However, from 1 January 2015, the Government will begin including superannuation income to determine eligibility for the CSHC.
Please note that all superannuation account-based income streams held by CSHC holders before the January implementation date will be 'grandfathered' under the existing rules.
Increase the Age Pension age to 70
As widely expected, from 1 July 2025, the Age Pension qualifying age will continue to rise by six months every two years, from the qualifying age of 67 years that will apply by that time, to gradually reach a qualifying age of 70 years by 1 July 2035.
Other measures
There are many other proposals worth noting, particularly in the area of family payments and job seekers. To read a more detailed report, click here.
Over the next few weeks, we'll pour over the finer details and let you know if there is anything else you should be aware of. In the meantime, please feel free to call me personally if you have any questions or concerns.
Rick Maggi. (Westmount. Financial Solutions)
06/05/14: Bank Financial Planners: Tread carefully
80% of financial advisers now 'owned' by the banks
Last night's 'Four Corners' documentary on ABC (watch video here) primarily focused on the shameful behaviour of a particular Financial Planner within Commonwealth Bank's planning division. But more importantly, the documentary also highlights a broader 'conflict of interest' issue with bank advisors generally, and possibly other institutions.
While I suspect that 'bad advisers' (in all professions) will continue to lurk in the shadows forever and a day, the problem highlighted in last night's report goes beyond a single 'rogue' adviser. Rather than a one-off event, the flaw appears to be systemic, possibly stretching across the entire banking wealth management model.
So with over 80% of financial advisors in Australia now directly or indirectly owned by the banks, as a customer, it's now prudent to question the motives behind that humble bank teller who subtly offers to introduce you to their friendly financial planner for a 'second opinion', the next time you review your home loan or term deposit.
And if you believe that your financial advisor is employed by an 'independent', non-bank aligned firm, you now have every right to ask whether that advisor's license is indeed owned by a bank - chances are it is.
Of course, following on from last night's Four Corners report it would be easy to conclude that you simply can't trust financial planners, or anyone else, to look after your hard earned money. That would be wrong (and sad). The reality is that there are more than enough high quality financial advisers out there, doing terrific work, helping clients achieve their dreams - I personally know many of them and wouldn't hesitate recommending these professionals to family and friends.
So expect the best, just ask plenty of questions and do your homework.
Rick Maggi
17/04/14: Are shares headed for a crash this year?
…not likely
After a strong period of growth its natural to wonder whether the share market is headed for a crash at some point in the near future. This article examines the potential going forward. Read more here If you have any questions about the structure of your own superannuation or investment portfolio, please don't hesitate to call us. Rick Maggi, Westmount. Financial Solutions.
30/04/14: Smart End of Financial Year strategies 2013/14
The countdown begins...
With the end of the financial year fast approaching, we're commencing a 60 day countdown to assist you in getting your financial affairs organised and ready for the June 30 deadline. Taking action now can open up more opportunities for you. The following guide lists 12 key superannuation and insurance based solutions you should look at. Read Here
As always, we're only a phone call away. So if you would like to discuss your own strategy, tax, superannuation, investment, retirement planning, Centrelink issues or the Federal Budget, please call us on 9382 8885. (Rick Maggi. Westmount. Financial Solutions.)