Maven Quarterly Newsletter Jan2016

Newsletter Summer Edition January 2016

WELCOME to a new year and new beginnings I hope you enjoyed the recent festive season and were able to spend some quality time with family or friends. It is my pleasure to provide you with our latest newsletter, which includes some articles on what economists are expecting for the next 12 months and some tips on preparing for aged care. I have also included some information about some staff changes in our office. On a personal note, I am excited at the new beginnings in store for us, with the birth of our first baby due in mid April. I look forward to catching up with you over the year. With kind regards, Adrian Cassidy Principal Adviser Maven Wealth Pty Ltd

MARKET INSIGHT Generally, a positive market is expected in 2016, with economic growth in a 2.50 – 3.00% range. The Australian dollar is expected to fall early, before ending at around US70cents by the end of the year. The cash rate is largely expected to remain unchanged. An extract from a Market Update prepared by GWMAS trading as ThreeSixty Research appears below Global economies The Federal Reserve (The Fed) appears intent on Global equity markets continued the October rally commencing the normalization of interest rates with Europe and Japan enjoying solid returns in with sufficient indications that the pathway for November. Global growth expectations remain in higher interest rates will be very gradual. The Fed the 3%–3.5% range for 2016 (NAB Economics). is signalling a cautious approach. Business conditions in the UK and US continue to The US 2015 corporate earnings growth remains steady improve while the Eurozone is showing steady at -0.5% (revenues to -3.3%), while the 2016 estimated improvement. earnings growth remains steady at 7.9% (revenue growth at 4.4%). Further stabilisation of China economic data and The current 12 month forward Price Earnings (P/E) ratio further quasi-easing policy from the People’s Bank is 16.1 times. of China (PBoC) indicates that the combination of various stimulus policies over the past 12 months is Europe positively impacting the economy. The US Federal Reserve is expected to commence Over to the Eurozone, the November Markit the policy of ‘interest rate normalisation’ beginning Composite PMI index came in at 54.2, up from the with an initial interest rate increase in December. 53.9 in October. The Eurozone continues to have The Eurozone economic data has continued to solid gains in output and new orders and growth improve with a broad based improvement in continues to support job creation. The pace of economic activity. expansion across output, new orders and employment is close to 4.5 year highs. US Importantly, all of the Eurozone countries included in the composite PMI data had economic expansion In the US, economic data continues to support a in November. Germany continued a solid gradual and prolonged recovery. recovery while Ireland and Spain had further solid The unemployment rate is at 5.0% although this improvements. The further recovery in the doesn’t capture those who’ve given up looking for Eurozone economy has stimulated job creation. work. Employment rose in Germany, Italy, Spain and Ireland while France had modest cuts.

China In China, further stabilisation of the economy was Housing credit growth was up 0.6% mom while the witnessed in November. Economic data continues annual rate was 7.6% yoy. to suggest that the combination of monetary easing, Retail sales growth in October continued to including six interest rate cuts over the past 12 improve and the outlook for retail sales is positive. months, is having a positive impact. Industrial Retailers are continuing to report improved output increased by 6.2% year-on-year (yoy) in business conditions. November, while Retail sales increased by 11.2%. Employment growth has continued to improve, Fixed asset investment increased 10.2%. while wages growth has remained subdued. Further, the PBoC’s Foreign Exchange Trade Consumer confidence has been variable but System introduced a new Yuan index based on 13 improving. currencies. This will have the effect of reducing the Interest rate and Australian Dollar (AUD) sensitive currency’s link to the USD and allow the Yuan to industries have generally outperformed while weaken further against the USD. improvements in areas such as retail in November are an encouraging sign that the recovery in the Asia region non-mining sector is becoming more entrenched. In Over to Japan, manufacturing activity in November contrast, mining continues to weaken. continued the positive data witnessed in October. Housing finance data trended lower in October, Both production and new orders increased while down 2% mom. Investor finance declined for the employment and buying activity expanded in sixth consecutive month, -6.1% mom and -9.2% November. yoy. The Manufacturing PMI at 52.6% was up from NAB updated economic forecasts continue to 52.4% in October. The index was at a 20 month indicate that global growth will remain in the 3%- high. 3.5% in 2016, while the Australian GDP forecasts The growth in new orders was supported by strong have been revised to 2.7% in 2016 and 3% in 2017. international demand from Asian customers. Australian house price growth was up 0.1% mom In India, the Manufacturing PMI came in at 50.2%, in November (period ended 6 December 2015). The down from the 52.6% in October. Growth in data continues to reflect a slowing residential manufacturing production softened to the slowest housing market. in the current 25 month sequence of expansion, The information contained in this Market Update is current as while service activity stagnated. Indian service at 14/12/2015 and is prepared by GWM Adviser Services companies saw demand growth lose momentum Limited ABN 96 002 071749 trading as ThreeSixty Research, registered office 105-153 Miller Street North Sydney NSW 2060. through November. This company is a member of the National group of companies. Australia Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Back home, the Reserve Bank of Australia (RBA) Because of this you should, before acting on any advice, kept the cash rate at 2.0% at its December meeting consider whether it is appropriate to your objectives, financial situation and needs. and continues to retain an accommodative policy. Past performance is not a reliable indicator of future Rates are expected to remain on hold for an performance. Before acquiring a financial product, you should extended period with no increase until mid-2017. obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a Business credit growth has continued to improve. decision about whether to acquire the product. In October, business credit growth increased 1% month-on-month (mom) and was up 6.6% yoy.

Office’s Super Seeker tool. A word of warning HOW TO DECLUTTER though - when consolidating your super accounts, your finances make sure you look into the potential risks – for example, there may be potential exit fees or loss of insurance. It’s a brand new year, so why not make a While you’re focusing on your super, it might also fresh financial start? be a good time to consider increasing your Achieving your financial goals isn’t simply a matter contributions through a salary sacrificing of earning more. It’s also about making your arrangement. This can be a tax-effective way of money work smarter for you. boosting your super, because additional contributions of up to $35,000 are usually taxed at a rate of only 15%. Build a budget Making a budget will help you keep your spending on track, so you can save more and pay off debts Investigate your insurance faster. By having a clear picture of how much With any financial plan, it’s worth making sure you money is coming in and how much you’re have the right types of insurance cover for your regularly spending, it will be easier to find ways to circumstances. Having adequate life insurance and cut out unnecessary costs. total permanent disability insurance means your family’s lifestyle will be Start by keeping a record of supported if you pass away all your earnings and or become permanently outgoings for at least a disabled, critical illness can month. Then, you can spot cover medical and other ways to reduce your expenses, while income spending, like bundling protection insurance can your phone and internet, or provide vital regular shopping in bulk. payments to cover your bills With a clear budget in place, and expenses if you’re you may discover that your unable to work due to debts are costing you more illness or injury. than they need to be. Consider shopping around But how much insurance is enough? It all depends for a better deal on your home loan, or choosing a on your needs, debts and income. The default cover credit card that has a lower monthly interest offered through your super fund may be sufficient, charge. With some simple calculations, you’ll soon but often is not — and it could mean you save on see how these kinds of debt management strategies premiums and have less paperwork to deal with could save you a lot of money over the long term. than if you had multiple policies through different insurers. However, everyone’s situation is Streamline your super different, so it might be worth getting professional By consolidating your super you can usually save advice before making any major insurance decisions. on fees and charges, which can add up significantly over the years. Having a single super account also means less paperwork, so it’s easier to keep track of Get the right advice how your retirement investments are faring, or to A skilled financial adviser can help you make the change your investment strategy to suit your life most of your money and achieve your lifestyle stage. And if you think you may still have funds goals. To find out more, contact us. lurking in an old super account somewhere, you can find your lost super using the Australian Tax Article Source: mlc.com.au/toolkits/finance

PLAN AHEAD for the aged care you want Early planning can take away a lot of the stress and uncertainty that can arise when considering aged care at home or a residential aged care facility. Know what your options are The first option that probably comes to mind is a residential aged care facility. These facilities provide accommodation and care depending on your personal needs. Care can range from personal care, such as help with showering and dressing, together with occasional nursing care to continuous nursing care for those with a greater degree of frailty. What you may not realise, however, is that there are also Home Care Packages that provide access to services that can help you to stay at home for as long as possible. Support services may include cleaning, meal preparation and transport for shopping or appointments. Start planning early There are a number of reasons why you should plan ahead and well before the need for aged care is imminent. For example: in many cases, the need to move into residential care can be sudden due to a serious illness or injury (eg a stroke, heart attack, or fall), or another unexpected event it’s not uncommon to find there are significant waitlists for residential care, particularly at the more popular facilities, and regardless of whether home or residential aged care is required, if you wait until the last minute to speak to a financial adviser, you may not be able to minimise the fees you may have to pay and/or maximise the social security benefits you may receive.

Visit local facilities Whether you currently need residential aged care or not, ideally you should plan to visit a range of facilities in your chosen area as soon as possible and, you may prefer to do this with family members. Becoming familiar with the alternatives can enable you and your family to have meaningful conversations regarding your options and make more informed lifestyle and financial decisions. Importantly, with assistance from a financial adviser, you can: determine whether care in your preferred facility is affordable, and potentially start restructuring your assets to improve your financial position. Assess affordability A range of fees may be payable when accessing care services. One of the key payments when moving into residential care is the accommodation payment. This payment: is subject to certain limits can be paid as a lump sum, in regular instalments, or a combination of a lump sum and regular instalments, and is published on the facilities website and at myagedcare.gov.au for potential residents to consider. The published amount will vary between facilities and, as a general rule, it will be higher for newer places because of the money recently outlaid on building or improving the accommodation, and for facilities in more affluent suburbs. It’s therefore important to ensure you will have sufficient assets to pay the accommodation payment required to secure yourself a spot in your facility of choice when the time comes, as well as cover the ongoing aged care fees and your living expenses. Understand the trade-off There are a range of strategies that can be used to reduce aged care fees. However, caution needs to be exercised to ensure you have enough money to afford the care you want. A financial adviser can help you to address this complex issue. They can also assist in many other ways. This includes helping to address your estate planning needs, in conjunction with your lawyer. . To find out more about the information in this article contact us. Article Source: mlc.com.au/toolkits/aged care

CHANGES to postal charges NEW Financial Services Guide Our Australian Financial Services Licensee, Godfrey Pembroke Ltd recently made some The way Australians communicate is changing. changes to the Financial Services Guide. With the shift to digital communications, Australians are not sending as many letters as they The changes include used to. As a result, Australia Post has made changes to their postal services. clarity on the purpose of the FSG enhanced disclosure regarding related Australia Post have introduced three postal parties services: Regular, Priority and Express Post. third party insurance disclosures; and The Regular service will deliver mail within 1 to 6 a clearer description of the complaints business days, and the cost of postal for this service handling process has increased to $1 (up from $0.70). We are required to provide our clients with the The Priority service will deliver mail within 1 to 4 latest Financial Services Guide prior to issuing business days and will cost a further $0.50 (ie further advice. $1.50). Therefore, attached with this newsletter is a copy of Express Post will deliver the next business day, and the latest FSG (Part 1 and Part 2). costs start from $5.75. Your file will be updated to indicate that Version 9 As a result of these significant increases, Maven of the FSG has been issued to you and at your next Wealth Advisors are no longer in a position to review, we will ask you to acknowledge that you provide Reply Paid envelopes to our clients for received this document return mail requirements. We are fortunate that we are able to communicate with many of our clients electronically (via email). If you currently receive postal mail from us, but have the ability to have your communications sent electronically, we would encourage you to let us know, so that we can change the way in which we communicate with you.

EXCITING NEWS at Maven Important information and disclaimer Wealth Advisors Information contained within this publication has been prepared by GWM Adviser Services Limited th From 4 March, we will be two ABN 96 002 071749 trading as ThreeSixty Research, staff members down, and two registered office 105-153 Miller Street North Sydney new faces to fill the spaces. NSW 2060. This company is a member of the National group of companies. Any advice in this publication is In just a few short weeks, our of a general nature only and has not been tailored to Administration Assistant, your personal circumstances. Accordingly, reliance Francesca, will be heading off should not be placed on the information contained in on maternity leave, with the this document as the basis for making any financial birth of her baby due on 20 investment, insurance or other decision. Please seek March. personal advice prior to acting on this information. Information in the Aged Care article herein is Just days after that, our Practice Manager (and my accurate as at May 2015. In some cases the beautiful wife) will also be taking maternity leave, information has been provided to us by third parties. with our baby due on 12 April. While it is believed the information is accurate and reliable, the accuracy of that information is not Whilst they are on leave, we have employed the guaranteed in any way. Opinions constitute our services of Stephanie Panos to provide you with judgement at the time of issue and are subject to ongoing reception and customer service. change. Neither the Licensee nor any member of the NAB Group, nor their employees or directors give Stephanie joins us on xxxxx (date) and is looking any warranty of accuracy, nor accept any forward to meeting many of our valued clients responsibility for errors or omissions in this during her term here. document. Any general tax information provided in Helen Wall has been engaged to provide ongoing this publication is intended as a guide only and is based on our general understanding of taxation laws. support to the business by way of paraplanning It is not intended to be a substitute for specialised and practice management during Stav’s leave. taxation advice or an assessment of your liabilities, I hope you meet our new staff members soon and obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you we will endeavour to let you know when Francesca consult with a registered tax agent. and Stav each welcome their new babies into the world. Adrian Cassidy and Maven Wealth Advisors ABN 14008081187 are Authorised Representatives of Please feel very welcome to contact me or any of Godfrey Pembroke Limited ABN 23 002 336 254 - our friendly staff if you have any queries or Australian Financial Services Licensee., Registered concerns. office at 105-153 Miller Street, North Sydney NSW 2060 Australia. A member of the National group of Adrian companies. If you wish to unsubscribe from our client newsletters, Maven Wealth Pty Ltd please send an email to [email protected] or 209 Melbourne Street contact us on 08 8410 0151. North Adelaide SA 5006 P ⁞: +61 8 8410 0151 F: ⁞+61 8 8231 1420 E ⁞ [email protected]