The recent fall in commodity prices, China’s economic slowdown, US interest rate policy and slow growth prospects of the Australian economy has contributed to a lot of negative media coverage around sharemarket volatility, weighing heavily on investors’ confidence.
Many people view insurance as unnecessary and a cost that is to be minimised at all times. However, a recent experience has highlighted the need for appropriate insurance planning, even if it does mean the payment of some extra costs.
The rapid free fall of the price of oil has dominated media headlines recently. Dipping by 72 percent since 2014, we are witnessing the largest peak to trough decline in more than 30 years. This has effected local stocks including BHP which hit a fresh 11-year low last week, Woodside Petroleum and Origin Energy.
Concerned with the contribution cap limiting his ability to accumulate sufficient funds for his future retirement, and having previously managed his SMSF independently, 47-year old Michael engaged Hewison Private Wealth in 2014 to provide SMSF advice.