Wealth Intelligence

  • Jan 27
    Same underlying investments but reduced cost and easier execution

    The old and the new – a measured change

    Many of our clients have international shares as one of their investment sectors. For many years this investment was achieved by use of a managed fund operated by Vanguard, the large US investment manager, with their Index International Shares Fund.

    In 2015, Vanguard introduced an easier and cheaper way to achieve the same investment. This is done by using what is known as an ‘Exchange Traded Fund’ (ETF). Simply, an ETF is a managed fund that is traded on a stock exchange. Read More
  • Jan 13
    Key points:

    1. Ignore the screaming headlines. Your share-portfolio is not the share-market. So focus on your portfolio. It is in much better shape than the market.

    2. And the share-market is now just back to where it was in the middle of December. And at the end of September.

    3. But the ride may be bumpy, as ‘feelings’ over-ride reality for a little while. Read More
  • Dec 16
    The government has foreshadowed changes to the superannuation regime. Be prepared. Be intentional.

    The Federal budget is in deficit and it needs to be brought under control. Rightly or wrongly, superannuation is seen as ‘low-hanging fruit’. And the government has made it clear that changes will be made to the superannuation regime that both collect more tax and make it ‘fairer’.

    Much of the media commentary is on speculative positions presented by ‘think tanks’, industry experts or those with a ‘barrow’ to push. But it does appear that the government will make changes at next year’s budget and/or go to the election with a package of broader tax and welfare proposals. Read More
  • May 28
    How do you keep score of your investment success?

    Whether you invest in an industry super fund; a corporate super fund; with a stock broker; in an investment property or anything else, you need to know how successful your decision has been.

    You need to measure your performance and compare it to what you are trying to achieve, i.e. your objective.

    And a smart investment objective is one that has distilled the aspiration, as it were, down to a metric. That is, an objective that is readily measurable. Read More
  • May 28
    Sound wealth management requires diversification of both structures and investments

    Key points:

    • Superannuation is extremely tax effective but its complex rules are constantly changing

    • A sound financial strategy for those still some way from retirement requires diversification by investing in both superannuation and non-superannuation structures

    The wrong investment structure(s) can mean too much tax is paid on investment income and gains, or the inability to access funds when required. Read More
  • May 6
    Gearing strategies funded by margin loans have changed over recent years. To ensure ongoing tax efficiencies and effective risk management it is critical that they be reviewed. And there may be better alternatives.

    The current combination of low interest rates, high (franked) dividend yields and, in some cases, lower loan-to-value ratios, means margin loan share portfolios may hold greater risk, be positively geared and no longer be tax effective in a high taxed entity. Read More
  • Nov 19
    Most companies in the wealth management industry have business models unsuited to serving their customers.

    Consider the Australian wealth management industry. The size and growth of which has attracted participants from related industries. Each trying to adapt an existing business model to their wealth management customers. Read More
  • May 6
    ‘Nothing is certain in life, except death and taxes’. the task is to ensure that death doesn’t mean tax.

    Last year the government released regulations confirming the continuing tax-free status of a superannuation fund in pension phase following the member’s death.

    However, there is a second layer of tax that applies to superannuation death benefits received by non-tax dependent beneficiaries (such as independent adult children).

    If you are at least age 60 all superannuation withdrawals made by you are tax-free and if you die, your benefits can be paid to a tax dependent, such as your spouse, tax-free.
    Read More