At the time of writing, the Australian Dollar is sitting on $US0.770, which begs the question - what on earth is driving it? Read more here
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
So what did we learn?
In this article, Don Stammer adds some much needed balance and clarity, first explaining what happened during the first ten weeks of January, and then moving on to some universal lessons we all need to remember during periods of uncertainty. Read more here
This article was recently published on the 'Cuffelinks' website, a free weekly newsletter for investors and advisers which I wholeheartedly recommend to anyone looking for an intelligent, impartial investment website. For more information, go to cuffelinks.com.au
Or alternatively, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
11/03/16: Buffett's letter to investors
Once again Warren Buffett has presented a compelling long-term view of the growth potential of the US economy. In doing so he draws upon his long lifetime experience to explain that betting against the USA was and remains a foolish investment endeavor…
“For 240 years it’s been a terrible mistake to bet against America, and now is no time to start. America’s golden goose of commerce and innovation will continue to lay more and larger eggs. America’s social security promises will be honoured and perhaps made more generous. And, yes, America’s kids will live far better than their parents did.”
The following few sentences, from his introduction, make some telling observations about the last 80 years and the future of the USA..
“It’s an election year, and candidates can’t stop speaking about our country’s problems (which, of course, only they can solve). As a result of this negative drumbeat, many Americans now believe that their children will not live as well as they themselves do. That view is dead wrong: The babies being born in America today are the luckiest crop in history. American GDP per capita is now about $56,000. As I mentioned last year that – in real terms – is a staggering six times the amount in 1930, the year I was born, a leap far beyond the wildest dreams of my parents or their contemporaries. U.S. citizens are not intrinsically more intelligent today, nor do they work harder than did Americans in 1930. Rather, they work far more efficiently and thereby produce far more. This all-powerful trend is certain to continue: America’s economic magic remains alive and well.”
“Today’s politicians need not shed tears for tomorrow’s children. Indeed, most of today’s children are doing well. All families in my upper middle-class neighbourhood regularly enjoy a living standard better than that achieved by John D. Rockefeller Sr. at the time of my birth. His unparalleled fortune couldn’t buy what we now take for granted, whether the field is – to name just a few – transportation, entertainment, communication or medical services. Rockefeller certainly had power and fame; he could not, however, live as well as my neighbours now do. Though the pie to be shared by the next generation will be far larger than today’s, how it will be divided will remain fiercely contentious. Just as is now the case, there will be struggles for the increased output of goods and services between those people in their productive years and retirees, between the healthy and the infirm, between the inheritors and the Horatio Algers, between investors and workers and, in particular, between those with talents that are valued highly by the marketplace and the equally decent hard-working Americans who lack the skills the market prizes. Clashes of that sort have forever been with us – and will forever continue. Congress will be the battlefield; money and votes will be the weapons. Lobbying will remain a growth industry.”
Warren Buffett's logical and optimistic sentiments serve as a gentle reminder to investors, retirees and superannuation members alike that current economic or market conditions are not necessarily predictive. We are always in a 'cycle', and like all cycles (good or bad), they eventually must come to an end.
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
01/03/16: Will politics get in the way?
Probably ok, but worth keeping an eye on...
As if the worry list for investors isn't already long enough, politics is turning out to be a key issue for investors, retirees and superannuation members this year. Read more here
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
26/02/16: Some interesting facts about retirement...
Given the financial demands of everyday life, planning your retirement may be a relatively low priority. you may also think that you have plenty of time to plan. but before you put off planning for you retirement any longer, here are some key facts you should consider. Read more here
For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.
25/02/16: Aged Care: Plan ahead
If the need for residential aged care is nearing, following these five steps will help you make a smoother transition. Aged Care 5 Steps to Consider Aged Care, Plan Ahead For The Care You Want
For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
22/02/16: Minimise risk in retirement...
...and sleep better.
Recent market declines have served as yet another reminder how quickly conditions can go pear-shaped.
Market volatility can be particularly stressful for retirees (and pre-retirees), who simply cannot afford to experience a sharp decline in their wealth, as they are less capable of returning to work to earn a salary in order to recover.
To make matters worse, retirees also face another set of risks - longevity (outliving their retirement funds) and inflation (the slow and steady loss of purchasing power).
So a fork in the road exists for retirees. While most would like to preserve (or even grow) their wealth steadily, many are, justifiably, unwilling to risk large declines in their portfolio in pursuit of higher returns. At the same time they are also acutely aware that persistently low returns (currently cash and term deposits) will significantly erode their retirement assets over time - a different kind of 'loss', but the same result nevertheless.
In our experience, the key to creating a successful, comfortable, low-stress retirement can essentially be boiled-down to finding the right investment mix and then staying within well-defined 'goal posts'. That's it.
By employing a number of key strategies to minimise portfolio risk in retirement, coupled with a deep understanding of your retirement goals, your personality and your values, an experienced Financial Advisor can create a retirement solution that get's the balance right, and keep's you informed and on track, so you can get on with enjoying your retirement.
For almost 40 years we've been helping people, just like you, achieve better outcomes. So if you're spending too much time wondering (or worrying) about the future direction of your retirement, don't panic, just call us for an initial discussion.
11/02/16: IS THIS A BEAR MARKET?
Fear of fear itself or something more fundamental?
AMP Capital's Dr Shane Oliver weighs in on the market meltdown and asks the tough questions. A must for retirees and investors looking for a calmer, mature assessment of the current climate. Read Here
10/02/16: Are we there yet?
As the violent market volatility continues and emotions run high, I think this article, written by DFA Australia's Jim Parker ('Outside the Flags') manages to cut through the hysteria, helping to refocus the mind on what matters most when markets go awry. A good read for investors, retirees, and anyone looking for a little perspective. Read Are We There Yet?
02/02/16:Super or the mortgage?
Many people wait until their home loan is paid off before investing more in super. However, if you are currently making more than the minimum home loan repayments, you may be better off when you retire if you make additional super contributions instead. Super or Mortgage?
For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
29/01/16: The super savings gap
While as a nation we collectively face a large retirement savings gap, there are a number of smart things you could consider doing to help make sure your future financial security isn't at risk. Read more here
For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
28/01/16: The plunging oil price...
Falling oil prices are currently in lockstep with share prices, which is unusual. So understandably, plunging prices have been seen in a negative light, but is it all bad news? Is there an upside to low oil prices? AMP's Dr Shane Oliver takes a balanced look at this recent phenomenon. Read more here
01/01/16: Here's to You...
When we look back at the things that helped make 2015 a great year, our warmest and fuzziest feelings come when we think of you, our client.
So thank you for choosing Westmount. Here's to another prosperous, healthy, exciting year full of possibilities!
The Westmount Team
22/12/15: LIFE Insurance: Counting the cost of a curve ball...
Here's a confronting question: what would you do if the main breadwinner in your household could no longer bring in an income? Do you have a Plan B? Most people don't. That's where insurance comes in. Insurance: Counting the cost of a curve ball
For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
17/12/15: IS THIS The official end of the GFC?
After much delay and much warning, the Fed has finally raised the Fed Funds rate from a range of 0-0.25% to 0.25%-0.5%. The move signals confidence in the ongoing recovery in the US economy after the crippling effects of the Global Financial Crisis. More importantly, the language of the Fed was sufficiently dovish with regard to future rate hikes.
At the time of writing, the ASX200 has gained almost 100 points, on top of the previous day's 118 point rebound, and BHP shares are up over 5% - a major relief to for investors who watched the local bourse fall in each of its six prior sessions.
04/12/15: A constrained year for investors
As the end of 2015 draws to a close, it's a good time to take a look at the year we've had, but also consider what the year ahead might look like. With the US economy accelerating, and Chinese growth slowing, we're moving into less familiar territory, potentially unnerving inexperienced and seasoned investors alike - so going forward you'll need to keep your wits about you.
AMP Capital's Dr Shane Oliver provides an excellent overview of 2015/16. Read more here
Rick Maggi Westmount Financial Clear Focus. Better Solutions.
14/12/15: Retiring from a small business?
Selling a small business can be a challenging, complicated and uncertain time. So too can retiring. Combine the two and you have a situation where early planning and advice is critical. Retiring from Small Business
For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
Rick Maggi Westmount Financial Clear Focus. Better Solutions.
26/11/15: How well protected is your business?
Business Insurance essential...
If you're like many business owners you have already insured the physical assets of your business from theft, fire and damage. But have you considered the importance of insuring yourself - and other key people in your business - against the possibility of death, disability and illness.
Not being adequately insured can be a very risky oversight, as the long term absence or loss of a key person can have a dramatic impact on your business and your financial interests in it.
For more information, contact Rick Maggi at Westmount Financial on 9382 8885.
Rick Maggi Westmount Financial Clear Focus. Better Solutions.
20/11/15: Second hand news
Media and the markets
Why don't the media run more good news? One view is bad news sells. If people preferred good news, the media would supply it. But markets don't see news as necessarily good or bad. Read on
Rick Maggi Westmount Financial Clear Focus. Better Solutions.
19/11/15: US interest rates: Fear or celebrate?
5 reasons not to be too worried about 'The Fed'
In this article, AMP Capital's Dr Shane Oliver discusses what is on everyone's mind lately, the strong possibility of an interest rate hike in December. Is this something that should be feared or celebrated? Read more here
Rick Maggi Westmount Financial Clear Focus. Better Solutions.