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Archive for financial planning Perth

Can Chinese Consumer Shifts Affect Your Investment?

Financial planning encompasses a number of factors. The economies of Perth, WA, Australia and the world could play an important role in how your investments perform. Recently, Andy Gardner, the Australian Resources Analyst on the AMP Capital Fundamental Equities team, wrote a post on the AMP Capital blog exploring the connection between Chinese consumer habits and the Australian economy.

The post was called, “The Chinese consumer shift to experience over ‘things.’” We would like to provide you with some of the highlights.

How Chinese Consumer Attitudes can Affect Australia

Mr Gardner sees a connection between changing Chinese consumer attitudes and the Australian economy. For his broad conclusions, Mr Gardner believes that the Chinese and many others across the globe are beginning to value experiences over material products.*

Chinese Consumer Shifts Affect Your Investment With Financial Planning

Mr Gardner sees this trend resulting in a boost for the Australian economy in the tourism, education and housing sectors as Chinese Nationals will be more likely to come to Australia and those who immigrate here will need housing and education.*

According to Mr Gardner, developed markets are trending towards consumers who are spending on experiences which they feel are aligned with their values and lifestyles. This trend is resulting in less money spent on material goods.*

Mr Gardner sees this trend as global. For example, in the US in 2011, revenues for physical products and experiences were almost even. Since then, revenues from experience-based sources are growing at more than twice the rate of those from physical products.*

Why Is This Happening?

Mr Gardner attributes much of this shift to an experience-based generation of millennials becoming the dominant spenders. He also cites that many baby boomers who have retired are spending more time and money on experiences such as eating meals “out.”*

Mr Gardner expects this trend to continue and grow. He sees it as good news for the tourism, property and education sectors.*

For Financial Planning Needs…

To learn more or for an individual consult, call us today: 08 6462 0888.

Investment Market Review for 2015 and Outlook for 2016

The financial planning advisers in our Perth office would like to provide a quick review of 2015 and what it may mean to you in 2016. We are going to provide some information for you courtesy of Dr Shane Oliver, who is the Chief Economist and Head of Investment Strategy and Economics of our parent company, AMP Capital.

On 21 January 2016, Dr Oliver wrote an article on the AMP Capital blog called, “2016 – A list of lists regarding the macro investment outlook.” The article covered many facets of the economy and how they performed last year. We are going to give you a look at some of the highlights.*

Investment Market Review By Financial Planning Advisers

2015: What Happened?

2015 provided mixed returns for investors. Monetary conditions “remained easy” while the global economy saw mild growth. However, global markets did suffer from a variety of fears, such as dropping commodity prices, China being in the forefront of a possible emerging market crisis, the first interest rate hike in the US over seven years and Australia continuing a “soft” pattern of growth.*

To give an idea of performance, Australian balanced super funds provided average returns of 5.0%. Considering an average of 10.1% pa returns over the preceding three years, this was disappointing to many.*

Dr Oliver provided four “lessons” from 2015:*

Growth is still slow across global markets, producing volatility.*

Deflation is a bigger threat than inflation.*

Despite volatility, diversified investment portfolios are outperforming bonds and cash.*

Diversification is “critical.”*

2016: What’s in Store?

Dr Oliver sees these trends for 2016:*

Global growth of 3%.*

Commodity prices to stabilise or rise slightly, even in the face of growing supply.*

Growth in Australia around 2.5% due to low commodity prices and low mining investments but with hope for improvement towards the end of the year.

Property and infrastructure will outperform cash and bonds.

Call a Financial Planning Adviser in Perth

To learn more or for a free consult, call Approved Financial Planners today: 08 6462 0888.

*AMP Capital, Dr Shane Oliver. “2016 – A list of lists regarding the macro investment outlook.” 21 January 2016.

What Happened with the January Sharemarket Drop?

2016 greeted investment planning professionals in Perth and across Australia with bad news as the global sharemarket dropped sharply on the first trading day. Chinese shares were down around 7%, European shares lost around 3% and US shares dropped 2.7% before rallying to a loss of 1.5% by the end of the trading day.*

So, what happened? Shane Oliver, Head of the Investment Strategy Team and Chief Economist for AMP Capital, addressed it in a piece on the AMP Capital blog called “Rough start – What’s happened in markets?”*

Financial Planning January Sharemarket Drop

According to Mr Oliver, market volatility is being driven by insecurity about Chinese growth potential, increased tensions between Iran and Saudi Arabia and manufacturing data from the US resulting in their drop in the Institute for Supply Management (ISM) Manufacturing Conditions Index for December.*

Mr Oliver’s Food for Thought

Mr Oliver reminded investors to consider and “keep in mind.” Here is the condensed version.*

Iran and Saudi Arabia have been at odds with each other for a while now. As the US continues to withdraw from the Middle East, these tensions continue to escalate. However, Mr Oliver thinks it is “unlikely” that there will be any direct conflict between the two countries such as a war, which would raise oil prices.*

The Chinese markets may fall further but the numbers may have been exaggerated. He believes that an impending law forbidding insider trading may have caused a massive “sell off” to get in before the deadline. The Caixin manufacturing Purchasing Managers’ Index (PMI) was low but other indicators seem to indicate stable growth.*

Most data points in the US point towards a stable growth rate of around 2%, despite their less-than-stellar ISM index. *

Fragile economic growth on a global level should keep cash interest rates stable with only slight rises. Mr Oliver predicts two US Federal Reserve Interest Rate rises of 0.25% each over the year.*

Call Our Investment Planning Advisers in Perth Today

If you would like more information, professional financial planning help or a free consult, call us today: 08 6462 0888.

*AMP Capital, Shane Oliver. “Rough start – What’s happened in Markets?” 05 January 2016.

Financial Planning Help in Perth: Is Unlisted Commercial Property an Attractive Investment?

If you are seeking financial planning help in Perth, you may or may not be aware of Australian unlisted commercial property as an investment. Recently, Shane Oliver, the Chief Economist and Head of Investment Strategy and Economics with our parent company, AMP Capital, addressed unlisted commercial property in his column, “Oliver’s Insights.” *

Mr Oliver mentioned that unlisted commercial property has been generating returns of 9.5-10.5% per annum over the last six years, since the end of the Global Financial Crisis (GFC). According to Mr Oliver, this is because yields have fallen due to investors in search of income bearing investments. *

Financial Planning - Unlisted Commercial Property

According to Mr Oliver, when yields fall .25%, capital gains rise 4%. He goes on to explain that property prices rise relative to rents in what he calls a “falling yield environment.” This provides capital gains for those who invest in property. Mr Oliver goes on to note that Australian Real Estate Investment Trusts, or A-REITs, have produced capital gains of “around 13% PA over the last six years.” *

Mr Oliver does see one “drag” associated with commercial property: the current “ongoing softness in the Australian Economy.” He believes that economic growth will level off at 2.2.5% “well into” 2016 and that unemployment will remain at a level he calls “relatively high,” resulting in less demand for office space in markets outside of Melbourne and Sydney. *

Overall, Mr Oliver feels that current numbers point to unlisted commercial property providing “solid returns…in the years ahead.” While we can’t provide financial advice without an individual consult, we agree with Mr Oliver and feel that unlisted commercial property is worthy of consideration. *

Call the Financial Planning Professionals in our Perth Office

Even though, as we mentioned, we can’t provide financial advice on this blog, we will be happy to provide you with an obligation-free, individual consult in our office. Call Approved Financial Planners today: 08 6462 0888. *

*Shane Oliver, AMP Capital. Why unlisted commercial property remains an attractive investment destination. 05 November, 2015.

Financial Planning in Perth: Do You Have a Resilient Equity Portfolio?

We offer a wide range of financial planning services in Perth. Recently, our parent company, AMP Capital, published its monthly “Insight Paper” on the AMP Capital company blog. The blog post featured three AMP Capital executives discussing how to develop a resilient equity portfolio. *

Resilient Equity Portfolio With Financial Planning

The discussion was based on research being conducted at AMP Capital with “building resilience in your equity portfolio” as a theme. AMP Capital shared the results on their blog to demonstrate what they are currently doing to “strengthen clients’ portfolios to make them fit for the future.” According to the article, technology is “disrupting” the practices of many businesses and the market is “becoming more competitive.” This makes it necessary for investment managers to “differentiate (themselves) through research.” *

According to Dr Ian Woods, who is the Head of Environmental, Social and Governance Research” for AMP Capital, investors need to be aware of the impact that policy and regulatory options implemented by governments have on their portfolios. Dr Woods elaborated, using climate change risk as an example. *

If a tax is being enacted on carbon emissions, for example, Dr Woods feels that investors need to ask if their stocks “have greenhouse emissions, and to what level.” He also advocates assessing the ability of the companies whose stocks they hold to pass the cost of compliance onto the consumer.” *

According to Dr Woods, it is important to do “due diligence” to build greater resilience within a portfolio. He feels that those who don’t measure the correct metrics are not managing risks within a portfolio as well as they perceive themselves to be managing them.

Are You Looking for Financial Planning in Perth?

Call the professionals at Approved Financial Planners. We have more than 40 years of combined experience providing financial services in the Perth market. Backed by the research and resources of AMP Capital, we offer a full range of financial services. To learn more or for an individual consult, call us today: 08 6462 0888.

*Insight Paper, AMP Capital. BUILDING RESILIENCE IN YOUR EQUITY PORTFOLIO. October 2015.

The Pitfalls of DIY Financial Planning

Do you want to do your own financial planning? We don’t provide individual advice online or on this blog, but we can provide you with some questions to ask yourself if you are thinking about doing your own financial planning.

Pitfalls of DIY Financial Planning

Do You Understand Finance?

At Approved Financial Planners, we are licensed through AMP Financial Planning Pty Limited. Not only do we have 40 years’ combined experience in financial planning, we had to learn a lot about finance to obtain licences. We live and breathe finance.

Do You Have the Resources of a Financial Planner?

We have the full resources of AMP behind us. We have near-immediate access to research that those who aren’t “in the business” may not be able to find. From the financial planner you talk to in our Perth office to the AMP Chief Economist, Dr Shane Oliver, we have access to information and insight that is difficult for those who don’t work with finances every day to access and assimilate.

Do You Have as Much Time as a Financial Planner?

As we mentioned, financial planners live and breathe finance. We work with the markets and the numbers every day, all day. When you have a full time job, it is hard to find time to adequately research things that we know as a matter of doing our jobs every day.

Can You Remain Objective?

Can you remain objective when making financial decisions or are you making them based on emotion? Financial planners are looking at your situation from outside. We are totally objective and we base our decisions on sound logic and solid information.

Call Approved Financial Planners Today

To learn more, call us today: 08 6462 0888.

Total and Permanent Disability Insurance: Business vs Personal

Total and permanent disability insurance is designed to help protect individuals and businesses from the severe consequences of a permanent disability that makes someone unable to ever return to work. While most people are aware of its personal use and coverage, many are unaware that TPD can also be used to protect their business in the case of a permanent disablement to a key member of the staff.

Total and Permanent Disability Insurance

Covering Your Business

Total and permanent disability insurance can be used by business owners to cover their losses or expenses if an important team member becomes totally disabled and is unlikely to ever work again. The consequences of a permanent disability to a key person can include the loss of income and productivity. It can also cost a lot to replace them and train that replacement.

Coverage levels can be difficult to work out because there are so many factors involved. Skill level, training time, loss of productivity and loss of market leverage are all important considerations. Your insurance provider has access to formulas that are accepted across the industry to help you determine what coverage is appropriate.

Covering Yourself

TPD insurance for the individual can help cover personal losses if you become totally disabled and are unlikely to ever work again. It can be used to help you with current expenses, recurring expenses and one-off expenses. Current expenses are those that are present at the time you are injured, including costs of living such as loan repayments, monthly bills and food.

New expenses are those which are a result of your disability. These include your initial medical costs, rehabilitation and modifications to your home or car to accommodate your disability.

Call Approved Financial Planners Today

At Approved Financial Planners, we have been providing financial planning help and disability insurance protection to the Perth area since 2005. We have more than 40 years’ combined experience in providing financial planning and wealth protection for our clients. After an individual consult, we can help you determine what kinds of cover you need.

To learn more or for an individual consult, call us today: 08 6462 0888.

Is Financial Planning “Only for Rich People”?

When our financial planning professionals talk to people in our Perth office, we occasionally talk to people who have the opinion that “financial planning is only for rich people.” At Approved Financial Planners, we have the backing of our parent company, AMP Capital. Here is what they have to say about how financial advice can be helpful to you, no matter where you are on the financial ladder.*

Helping You Attain Your Financial Goals

No matter where you are on the “ladder,” your financial goals are going to be unique. Whether you are planning your retirement or just trying to take your current situation to the next level, you can find help from Approved Financial Planners. A financial adviser can function as another set of eyes and help give you a different perspective on your individual financial situation and what you need to do to achieve your goals.*

Financial Planning in Perth

Why Advice Can Be Helpful

A financial planner can be like your own, personal “money coach.” They have access to information and expertise that can help you figure out where you want to go and how to get there. It’s never too early to start; the faster you start, the faster it is possible to attain your goals.*

How a Financial Adviser can Help You

We strongly advocate having a firm set of goals and a solid plan to achieve them. A financial planner or adviser can help you with the following steps:*

Formulate a budget.*
Manage your money.*
Choose the investment strategy that is right for you.*
Set a retirement date and make a plan to get there.*
Protect yourself and protect your family.*
Maximise your superannuation.*

Call Approved Financial Planners Today

At Approved Financial Planners, we can help you take control of your finances. Our financial planners are highly experienced. Our goal is to help you build and maintain wealth at each crucial stage of life.

To learn more, call us today: 08 6462 0888.

*AMP, “Understanding Financial Advice.” https://www.amp.com.au/personal/advice/education/understand-financial-advice

Where do You Put Your Extra Money: Your Super or Your Mortgage?

Because we offer both mortgage broking and financial planning to our Perth area clientele, we are in a unique position to answer a question that a lot of people have: is it better to put your extra money in your super or your mortgage?

Recently, this issue was discussed on news.com.au in an article called, “Weigh your super and mortgage to see where it’s best to put your money.” In the article, some industry experts were quoted about various strategies to figure out where to put your extra money. *

Mortgage Broking and Financial Planning in Perth

At Approved Financial Planners, we aren’t allowed to provide anything on this blog that constitutes or can be interpreted as “individual advice.” All advice has to be given on an individual basis. This is usually done in person, after we gather some basic information from you.

The article we described above is a perfect example of why advice is best given in person after becoming acquainted with your financial situation. The only thing the “experts” seemed to agree upon is that there isn’t any “silver bullet” answer.*

According to the writer of the piece, Anthony Keane, the best way to make that decision is to take numerous factors into consideration, such as your income tax bracket, your age, your debt level and your lifestyle needs, both currently and in retirement.*

Call Approved Financial Planners Today

At Approved Financial Planners, we offer both mortgage broking and financial planning. This allows us to give objective, unbiased feedback to our Perth area clients, depending upon their individual financial situations.

There are many factors that can come into play. If we compare your super to your home loan, we may find that one or the other is easily determined to be the most important to pay into first.

To learn more or for a personal consult, call us today: 08 6462 0888.

*News.com.au. “Weigh your super and mortgage to see where it’s best to put your money.” 3 September 2015.

Getting Divorced? This Information Could be Valuable to Your Financial Future.

We are biased, but we think Perth is the best place to live in Australia. However, even Perth isn’t immune to marriages ending in divorce. While it is important to have the right divorce lawyer, it is also important to have the right financial planner.

Financial Information If Getting A Divorce

According to a recent blog post by the Financial Planning Association of Australia (FPA), one out of three marriages will end in divorce, after an average period of 12.2 years. The average age of divorce for men is 44.1 years, while the average age for women is 41.5 years.*

The FPA notes that in the absence of a prenuptial agreement, known as a BFA or binding financial agreement, the distribution of assets is negotiated. The longer and more deeply lawyers are involved, the more of your assets end up being paid as legal fees. The FPA recommends an “amicable asset split agreement” whenever possible.*

Assessing Assets

The first step, according to the FPA, is to identify and value all assets, income, debts and expenses as individuals and as a couple. It is the nature of divorce cases for everything to be subject to negotiation. A good financial advisor can help you maximise your returns.*

House or Super?

Often, one partner takes the house and the other takes the superannuation fund. According to the FPA, your decision on house or super should be contingent on what you plan to do financially after the divorce is final. That, of course, means you actually have to have some idea of how you want your future to play out. Luckily, a good financial planner can help you out with that.*

Seek Professional Advice ASAP

According to the FPA, the sooner you get professional advice, the better. It is common for a client who hires a financial planner late in the process to wish they had hired one sooner.

To learn more or to hire a professional financial planner, call Approved Financial Planners today: 08 6462 0888.

*Financial Planning Association of Australia: “How to Manage the Financial Fallout from a Divorce or Separation.”
https://fpa.com.au/blog/manage-financial-fallout-divorce-separation/