Facebook IPO tonight…

Tonight in the US, Facebook will be making its Wall Street debut after the world’s No 1 online social network raised about $16 billion in one of the biggest IPOs in US history. Read more here.  Rick Maggi

Get your cash reward…

As we’re now approaching June 30th, its important to do some planning to maximise your strategy. This is a summary of the Government’s ‘co-contribution’ scheme, which was spared in the recent May Federal Budget.  Rick Maggi

Co-Contribution

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.

US consumer confidence looking better…

Americans were more upbeat about the job market and buying plans improved, a survey showed on Friday, offering an encouraging sign for the economic recovery. Read more here.  Rick Maggi

One last chance…

Greece’s political landscape is in disarray after voters humiliated the only parties backing a rescue plan tied to spending cuts, leaving no bloc with enough seats to form a government to secure the next tranche of financial aid. Read more here.  Rick Maggi

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

Budget Wrap

What does it mean for the economy? (video)

What does it mean for investors? (video)

Interest rates heading down…

This article looks at the outlook for Australian interest rates and what this might mean for the local share market and, of course, the majority of superannuation and pension investors. Rick Maggi
Read Here 

A road-map for investors…

The ‘Cycle of Market Emotions’ is one of the most important road-maps for investors as share prices move through periods of boom and bust, of rise and fall, and of calm and volatility. Rick Maggi
Read Here  

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

Be inquisitive…

As June 30 is just around the corner we are moving into the sharp end of the tax season. Tax is major headwind to any investment and everyone has the right to minimise the amount of tax they pay through legal tax planning arrangements.

Indeed the after tax return is the critical measure for any investment. But sometimes the desire to reduce tax can blind people to the risks – both investment and legal – that certain tax schemes, sophisticated and otherwise, carry with them.

In recent years, the collapse of a number of high-profile agribusiness and financing schemes have painfully served to alert people to the dangers of committing to tax schemes that promise upfront tax benefits and potential investment returns that ultimately never materialised.

Last year, the ATO produced a helpful, plain language guide – Understanding tax-effective investments (helping you make the right decisions) on what to look out for among some of the more common types of tax schemes that the ATO has encountered that have caught out both individual investors and businesses.

Cynicism often masquerades as wisdom, especially in a post GFC world, so it is important that investors don’t become paralysed with fear, taking the easiest route, which is to do nothing. But doing your homework is also an important part of the risk/reward equation, so by all means be optimistic and hopeful, but don’t forget to be inquisitive. In other words, don’t be afraid to see what you see.  Rick Maggi

Read Understanding Tax Effective Investments