Interest rates are set to stay low for a long time yet Investors and retirees be warned – Interest Rates could remain at low levels for the next decade and possibly longer. At least that’s the base case expressed by Australian based International Fund Manager, Platinum Asset Management at their late-April 2016 Adviser Briefing held in Brisbane. If this contention is realised, lower interest rates will result in lower returns for investors; [...]
The 2015 backdrop to the market outlook for 2016 - As 2015 drew to a close, we reflected on the disappointments of the year from an investment returns perspective. We then turned our minds toward 2016 hoping, rather than expecting, that the market outlook is for a better year. In this post, we bring you the market outlook that will guide the ContinuumFP investment recommendations for 2016, at least initially. Whilst each of [...]
Interest cost deductibility saves tax, lessens borrowing costs Interest cost deductibility is one of the factors considered in making a decision as to whether to gear an investment. Gearing is a popular strategy used by many Australians to improve their wealth. Popular investment assets acquired in a geared portfolio include rental property (residential, commercial, industrial etc), shares and managed funds. The cost of borrowing for an asset/ portfolio that is income producing, is significantly less [...]
Why is capping superannuation funding in question? Governments around the world are facing debt concerns that threaten their ability to provide welfare, health, education and other services. In this scenario they are looking for ways to reduce their outgoings - and protect their revenue base. In Australia, one method the government is looking to implement to provide such protection is by capping superannuation funding. This will achieve their goal in two [...]
The Value of Advice concept... what you are paying for! Valuing Financial Planning advice: is that process different from valuing any service or advice? Clients of financial planners have long been valuing financial planning advice, but legislation by the then Labor government in 2013, has given rise to discussion as to what value investors receive for the fees they pay to their wealth management service providers. Financial Planners now need [...]