Maven Quarterly Newsletter - Autumn

Newsletter Autumn Edition April 2016

Our new beginnings have begunI am so proud to announce the safe arrival of baby John Cassidy on XXXXXXX.John weighed in at xxxxxkg and both he and Stav are doing very well.Here are a couple of early baby snaps of our beautiful boy.In other baby news, our Receptionist Francesca gave birth to a healthy 7.5lb (3.401kg) baby boy on the 7March 2016. Baby Alessio and Francesca are both doing splendidly.Please enjoy the articles in this quarter’s newsletter – there are some interesting facts about how disabilityof parents can affect your children and household, and I’ve included some end of financial year tips manyof us need to think about well before 30 June.As always, please call me if you have particular concerns or would like me to answer any questions youmay have.With kind regards,Adrian CassidyPrincipal AdviserMaven Wealth Pty Ltd________________________________________________________________

MARKET UPDATEApril 2016The Pulse  Equity and commodity markets continued to recover off mid-February lows helped by reasonable economic data, supportive central banks and improved sentiment:  Oil prices continued to move higher, up another 13% in March  China economic data was, on balance, a little better  US economic data continued to improve  The European Central Bank surprised investors with the size of the additional stimulus measures that it announced in early March to try to combat disinflation  Australian business conditions outside the mining sector continue to improve  RBA retains cash rate at 2.0%The S&P/ASX 200 Accumulation Index returned 4.7% in March. Cyclical sectors generally outperformeddefensive sectors: materials and financials were the best performing sectors while healthcare was the worstperforming sector. Small caps outperformed with a total return of 5.5% including dividends.Sector 1 month 3 months 1 yearEnergy 6.2% -0.5% -25.2%Materials 6.0% 5.2% -17.2%Industrial 2.3% 5.3% 12.8%Consumer Discretionary 5.1% 0.7% 5.0%Consumer Staples 3.0% -2.2% -5.1%Health Care 0.4% -1.6% 1.9%Financials (ex Property) 6.7% -9.7% -17.1%Info Tech 5.6% -5.0% -2.9%Telcos 4.7% -0.3% -6.9%Utilities 1.3% 3.3% 11.5%Property 2.5% 6.48% 11.4%Global economiesGlobal equity markets continued to rise off their mid-February lows helped by a recovery in commodityprices, particularly oil, further monetary policy stimulus from the European Central Bank and commentaryfrom the US Federal Reserve that downplayed the likelihood of further US interest rate rises in 2016.

USIn the United States, soft Gross Domestic Product (GDP) and Institute for Supply Management (ISM)manufacturing readings in late 2015, which had spooked investors in early 2016, have pleasantly surprisedin recent months. GDP growth in the fourth quarter was again revised higher, from an initial reading of0.7% annualised, to 1.4% annualised.EuropeAs expected, the European Central Bank (ECB) introduced additional measures to combat deflation withthe main surprise being the larger asset purchase program, up from 60 billion Euro to 80 billion Euro permonth.ChinaFebruary data on the export side of the economy was weak with annual industrial production growth of5.4% the weakest since November 2008 - but part of the slowdown was due to a large decline in tobaccoproduction. Additionally exports contracted by 25.4% in February compared with February last year.Asia RegionIn Japan the second reading on fourth quarter 2015 GDP saw the economy's estimated performance revisedto -1.1% annualised from -1.4% previously, thanks to a stronger than previously estimated uplift inbusiness spending and, less positively, higher inventories.AustraliaThe Reserve Bank of Australia (RBA) retained the cash rate at 2% at its April meeting. The RBA continuesto monitor whether recent improvements in the labour market are continuing.Big Movers this month Going Up:Financials (ex Property) 6.7%Energy 6.2%Materials: 6.0%

Are you one of the Sandwich Generation? This is the Sandwich Generation: people in their 40s and 50s caught between the demands of aging parents and dependent children. Caring for two generations at once can create new financial pressure on your household — so here’s how to lighten your load.The financial juggling actRunning a household is tough enough on its own. You’ve got bills and school fees to pay, and groceries tobuy — not to mention repayments on the home and car. So how do you manage to keep your head abovewater when you’re taking care of children and parents at the same time?As always, the trick is striking the right balance between your income and your spending. Start by makinga list of your outgoing expenses, including the costs of care for both your parents and your children.When working out a realistic budget to cover you and your family, remember that it’s more than just yourday-to-day costs. If you are a primary carer, you may be taking time off work to accompany yourdependents to their doctor’s appointments and other commitments — be sure to factor any loss of incomeinto your budget planning as well.Making the most of family benefitsThe good news is, there is a wide range of benefits and allowances to help ease the financial burden oflooking after your loved ones. And you may be entitled to more than you’re currently receiving — so it’sworth doing a little research to make sure you’re not missing out on what you deserve.Providing for your parentsFirst, make sure that your parents are receiving all the benefits that they are eligible for, such as the AgePension, Pharmaceutical Allowance and Seniors Card discounts. If they’re still living at home, they mayalso be eligible for a range of subsidised in-home care services — see myagedcare.gov.au to find out more.Then check if you’re able to claim any benefits yourself — particularly if you have a parent living with you.For example, the Carer Payment and Carer Allowance give ongoing financial support to people who areunable to work full-time because of their care role. In addition, the Carer Supplement is a lump sumpayment to offset some of the costs of care.If your parents have assets, then it can be worth finding out whether they can be structured differently tomaximise their Age Care benefits and pension eligibility. However, this can be complex and will bedifferent for everyone, so be sure to seek professional help.

Caring for your childrenThe Family Tax Benefit and the Parenting Payment can provide you with added income to help cover thecosts of raising your children. And while your children are still young, you may be eligible for the ChildCare Benefit or Child Care Rebate, or Child Care Fee Assistance to support you through work, training orstudy.If your children are older and considering their study options, they may be able to apply for an Austudyallowance — so they can cover their own costs throughout their education.Getting professional adviceIt’s not easy trying to figure out the best financial options for your family on your own. To find out moreabout how to get on top of your finances as a caregiver, feel welcome to give us a call.Source: GWM Adviser Services Limited ABN 96 002 071 749 AFSL 230692, a National Australia Group Company, 105-153 Miller Street, NorthSydney NSW 2060 Australia..Will changes to Social SecurityPensions affect your paymentin 2017?The Government is changing the Social Security Pension(including Age Pension) rules from 1 January 2017.It is estimated that 326,000 people will have their social securitypensions reduced and 91,000 will lose their pensions when thesechanges take effect.In summary, the Government will make two changes to the pension assets test: 1. An increase to the level of assessable assets that can be owned before the pension entitlements are affected (known as the lower assets test threshold). 2. An increase to the rate at which pension entitlements reduce where assessable assets exceed the lower threshold.As a result of the second change, the upper threshold is effectively lowered, meaning the pension cuts off at a lowerlevel of assets.These changes could have a direct impact on the pension you receive, your cashflow and living standards. The actualimpact will depend on your relationship status, whether you own your home and whether your pension is assessedunder the assets or income test.We can help you calculate whether you will be affected by these changes…… talk to us at your next review or feel freeto give us a call.

5 ways to make tax time If you’re not sure, talk to your tax adviser or check the ATO website to find out exactly what you can claimeasier this financial year.Not looking forward to doing your tax? You’re not 3. Submit your returns onlinealone. While most of us dread the administration that If you expect to get a refund, you can usually get itgoes with completing a tax return, it only takes a little bit faster by submitting your tax return online with theof planning to make it much less of a hassle. Here are 5 ATO using e-tax, and providing your bank accountthings you can do today that will have you sorted come details. Any returns are then transferred directly to30 June. your bank account, usually within 12 business days. That means you’ll have access to the money faster —1. Create a system to pay down debt, boost your super, or simply enjoy. If you prefer to use a tax adviser, it’s a good idea toIt may not be exciting, but getting your tax organised book them now, as after year-end is usually their busiest time. That way you’ll be first in line to submitstarts with having a system. Start by filing your your tax return, and get any money you’re owed back sooner.papers and receipts as you go. Remember, you don’t 4. Contribute to your superhave to have a filing cabinet or folders; you can keep Tax time is also a great time to make an extra contribution to super, and take advantage of the taxgood records by scanning or photographing all your benefits it can offer. By setting up a salary sacrifice arrangement with yourpaperwork on your phone to keep your desk clutter- employer, you can reduce your taxable income and take advantage of the concessional tax rates for super,free and avoid the risk of losing receipts. particularly if you’re on a higher income. But make sure you stay under the contributions limits forEven if you do misplace or forget to keep some concessional contributions (which also includes employer payments). For the 2015-16 financial year,receipts, you can still claim up to $300 worth of the maximum you can contribute before attracting extra tax is $30,000 for those under 50, or $35,000 foremployment-related expenses without those aged 50 or older (over 75s may only contribute SGC)documentation. But you can claim even more with If you’re self-employed, you might also want to consider making after tax personal contribution, asevidence —so it pays keep your receipts in order now. you can generally claim a deduction when you have accessible business income. The amount you canThere are plenty of apps that can help too, such as the claim is subject to the concessional contribution mentioned earlier.ATO app, which is suitable for both individuals and Or if your spouse earned less than $10,800 in the 2015- 16 financial year, it’s worth thinking about making asmall business owners. contribution to their super, as you could be eligible to claim a tax offset of up to $540.2. Maximise your deductionsUnless you’ve been paying close attention to your tax, 5. Get helpor have a great accountant, you probably aren’tclaiming all the deductions you’re entitled to claim. If you think your tax is going to be complicated, getThis means you’re paying more tax than you legally professional help — after all, their fees are also tax-need to, and missing out on getting money back. deductible. If you’re not sure, talk to your tax adviserWorse, it could mean you’re paying a tax bill that you or check the ATO website to find out exactly whatcould otherwise reduce or avoid. So it’s worth getting you can claim this financial Year. A financial adviserclear about what you can (and can’t) claim. Claims can also help you make the most of tax time.generally fall into the following categories: Work travel expenses, such as taxi fares or airfares (travel to and from your normal workplace is usually excluded). Special clothing, uniforms and laundry. Expenses from income-earning investments, such as maintenance to an investment property. Tools and equipment used for your work. Subscriptions to relevant publications or services. Self-education related to your current role. Costs of a home office. Donations.

Have you considered the Important information and disclaimerimpact Disability wouldhave on your family? Information contained within this publication has been prepared by GWM Adviser Services LimitedYou might be thinking life insurance is something ABN 96 002 071749 trading as ThreeSixty Research,you can sort out later. But have you thought about registered office 105-153 Miller Street North Sydneywhat would happen to your family financially if you NSW 2060. This company is a member of the National group of companies.or your partner became suddenly disabled? Any advice in this publication is of a general natureAccording to a study prepared for ANZ Wealth1 only and has not been tailored to your personalabout the impact the disability of a parent has on circumstances. Accordingly, reliance should not beAustralian families, 46% of families had less than a placed on the information contained in this documentweek’s notice of their spouse or partner becoming as the basis for making any financial investment,disabled. Over 34% had no warning at all. insurance or other decision. Please seek personal advice prior to acting on this information.One of the outcomes of this was that 1 in 4 familieshad to move home due to financial pressure. Neither the Licensee nor any member of the NAB Group, nor their employees or directors give anyWhat impact does the sudden disability of a parent warranty of accuracy, nor accept any responsibilityhave on children? for errors or omissions in this document. Any general tax information provided in this publication isThe study found there were wide-reaching impacts on intended as a guide only and is based on our generalchildren. For example, among the children in the study: understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an  65% took on more household tasks and chores assessment of your liabilities, obligations or claim  46% reduced their involvement in social entitlements that arise, or could arise, under taxation law, and we recommend you consult with a activities registered tax agent.  36% stated a worsening in academic Adrian Cassidy and Maven Wealth Advisors ABN performance. 14008081187 are Authorised Representatives ofMany children were forced to grow up faster than they Godfrey Pembroke Limited ABN 23 002 336 254 -would have otherwise, and unfortunately this often Australian Financial Services Licensee., Registeredcomes at the expense of their social lives and their office at 105-153 Miller Street, North Sydney NSWstudies. 2060 Australia. A member of the National group of companies.It’s easier than you think to protect your family’sfuture If you wish to unsubscribe from our client newsletters, please send an email to [email protected] orBy putting a comprehensive life insurance plan in contact us on 08 8410 0151.place, you can help ensure your family will befinancially supported if something happens to you,you can cover your medical expenses if you suffer aserious illness or accident and you can keep payingyour bills if you’re not able to work.1 ’Impact of parent’s disability on the family’ – Research conducted byIpsos, prepared for ANZ Global Wealth, June 2015Article Source: OnePath Limited