News & Views
Special Market Update 13th May 2009
Contribution Limits Halved:
Concessional superannuation contribution limits will be halved from 1 July 2009. Individuals under 50 years of age will see their contribution limit of $50,000 reduced to $25,000, whilst the transitional limit of $100,000 for those over 50 years of age will be reduced to $50,000 and will cut out from 1 July 2012.
The Transition to retirement pension strategy remains in tact whereby individuals salary sacrifice an increased level of pre tax salary to superannuation and supplement it with an account based pension, although its effectiveness has been diminished with the lowering of allowable deductible contributions to superannuation.
The Government has chosen not to alter the $150,000 per annum non-concessional contribution caps for 2009-2010. In the future the cap will be calculated as six times the level of indexed concessional contributions cap.
Account Based Pension
Temporary Withdrawal Reductions Extended:
The minimum account based pension withdrawal requirements were halved in
2008/2009 and this measure has been extended for the 2009/2010 financial year.
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Posted: 13th May 2009
Written By: Hewison & Associates
Special Market Update 13th May 2009
Young Australians must approach financial fitness like a gym workout, says Hewison Private Wealth
Young Australians eager to ‘get rich quick’ may be disappointed to hear that wealth creation can be as tough as achieving washboard abs, but those who attended a Young Investors Wealth Forum, hosted by Hewison Private Wealth, in Melbourne last week were in for a reality check.
Super strategies to consider for financial year end, Hewison Private Wealth.
With one month to go until the end of this financial year, wealthier investors would do well to review their superannuation strategy and maximise their super savings before changes announced in this year’s Federal Budget kick in, Melbourne financial advisory firm, Hewison Private Wealth, has warned.
New rules announced within the latest Stronger Super reforms package, banning self-managed super funds (SMSFs) against making in-specie asset transfers, will disadvantage SMSFs and exposes them to greater costs and risks, warns Hewison Private Wealth.
John Hewison, CEO of Hewison Private Wealth, said while the move to introduce MySuper and cut costs for superannuation members has been...
Market volatility continues as expected but there are some very positive signs coming out of Europe and the US. This should go a long way towards bringing some stability and confidence in global share markets which we expect would have a direct influence on our markets in Australia.
It is a question that has probably crossed the minds of many people in their mid-life years who have some spare cash. Is it better to put the money towards paying off the mortgage or into superannuation?
The kids may have finished school or one of the partners may have returned to full-time work and there is some spare cash for the first time in years. But the superannuation balance i...
More people are leaving their large superannuation funds to start self-managed super funds (SMSFs) because they want more control over how their retirement savings are invested.
•A closer look at costs
•'I was overwhelmed by paperwork'
•Cooper: 'No safety net' on SMSF losses
But SMSFs, or ''DIY'' funds, have potential pitfalls, especially for those who are not ...
Investors should aim to diversify their investment strategy to achieve strong returns in a low-interest rate environment, according to Hewison Private Wealth.
Despite low interest rates affecting the net income of cash investors, Hewison has said it is still possible for investors to achieve high returns - if they take a long-term view of their wealth management.
Scaled advice option shouldn't take focus
Self-managed super fund (SMSF) trustees should rely on holistic advice when building their retirement savings, according to Hewison Private Wealth.
While scaled advice options form a core part of upcoming industry reforms, Hewison have said the new provisions should not take the place of more comprehensive advice when it ...
What is Asset Allocation?
Asset allocation is the percentage allocation of investment funds to the various investment classes, the main ones being –
· Real estate property
· Australian shares
· International shares
· Fixed and variable interest
It has certainly been a long hard slog for investors with the Australian sharemarket remaining flat despite all the positive economic indicators. We have low unemployment, a booming resource sector, apositive GDP outlook as forecast by the International Monetary Fund and the Reserve Bank. So why isn’t our share market booming? Major global share markets have recovered despite their economies co...
Over the past ten years Australians have experienced a residential property super cycle where values have increased considerably over this period. The main drivers of this meteoric rise have been historically low interest rates, low unemployment, government grants for first home buyers and the strongest terms of trade seen in 140 years. The only hiccup during this period was from late 2007 through...
While many thought that the world markets would recover strongly over 2011 it seems we have been stuck in a rut over the past few months with most investment markets tracking sideways.
While markets are often driven by fear and greed we cannot ignore the underlying economic factors that also serve to drive investment markets on a global scale.