News Updates
AS IT HAPPENS
Central banks from major economies stand ready to take steps, including coordinated action, to stabilise markets as world economies prepare for a possible financial storm after cliffhanger elections in Greece this Sunday. Read Reuters article here Also, what happens to Greece if they leave the euro? Watch Bloomberg video here (70 seconds) Rick Maggi
Vanguard has formally announced that they will be significantly reducing the investment fees they charge on their most popular funds to well below industry averages. Vanguard recognise the significant impact that costs have on investment returns and with many of their fund fees now dropping to jaw-dropping lows, our clients now have a greater chance of investment success. We congratulate Vanguard. For more information contact us on 9382 8885. Rick Maggi.
The 'concessional contributions' caps for superannuation contributions are being significantly reduced on 1 July 2012, so if you're over 50 this could impact you in a number of ways. These two articles focus of the caps themselves plus 'transition to retirement' strategies. If in doubt, please contact us before the end of June - its extremely important to get this right. Rick Maggi
This article looks at the various issues around Greece's possible exit from the Eurozone. Read here Rick Maggi
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.
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
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
Today, the International Monetary Fund (IMF) kept a broadly upbeat outlook on Australia's economy. Read more here Rick Maggi
The pay-off from the surge in resource investment is at hand, with rapid growth in export volumes now evident and set to continue for the next 5 years, far outweighing any weakness in prices. Read more here. Rick Maggi
US stocks advanced strongly again, sending the Dow Jones up over 200 points, to the highest level since 2007, well past 13,000. Read more here
In this article, Vanguard's Robin Bowerman discusses the recent shadow shopper survey results and what it all means. Rick Maggi Shopping for advice
Please read on for information about the new deal. Rick Maggi Wall Street Journal
Utterly exasperated, many would now like to see Greece immediately comply or leave the Eurozone. This article looks at the risks and potential impact. Rick Maggi Read here
Despite overwhelming pressure for a rate cut the RBA has adopted a more conservative "wait and see" approach after two consecutive rate cuts last year.
The Australian dollar shot above $US1.08 immediately after the RBA announcement and the stock market shed 35 points as investors digested the surprise move. The RBA board judged the setting was "appropriate" as growth was close to trend, lending rates were close to their medium term average and inflation close to its target level.
Clearly, the RBA has left the door wide open for future rate cuts, depending on whether global and local economic conditions deteriorate much further. Rick Maggi
Read below for a summary of the Federal Government's mini-budget announcements. Rick Maggi Mini Budget 2011-12
