Our new investment platform – the Generation Fund
For the past 10 years, unlike many other Financial Advising firms, we have uniquely managed and invested client monies with the strategic guidance of our in-house Investment Analyst, Albert Lee. As the number of our clients has grown, the role and demands on Albert has exponentially increased.
Along with our desire to provide the same level of Investment advice to all clients (no matter what their size), and to mitigate any potential risk associated with being reliant upon one individual, we have spent a lot of time developing a new method for managing and investing client monies – the Generation Fund.
What is the Generation Fund?
The Generation Fund is a Managed Fund. Its primary focus is to deliver strong market-aligned growth and capital preservation. With a ‘Balanced Growth’ risk profile, the Generation Fund will invest in a diversified pool of shares, cash, managed funds and fixed interest holdings to maximise investment returns.
The Generation Fund is actively managed by an Investment Committee that includes some of the best ‘investment’ minds in Australia and chaired by Albert Lee. Investment allocations are actively adjusted in line with the ever changing economic environment to ensure client monies are always invested in the safest performing areas.
Please be assured that the Generation Fund will adopt the same Investment Philosophy you have enjoyed at Financial Decisions and all decisions are made with our clients’ best interests at heart.
We believe the Generation Fund will be a valued investment alternative for many clients who wish to maximise returns whilst ensuring a strong level of capital preservation.
What level of investor can invest monies into the Generation Fund?
With a minimum direct Investment of $15,000 (and $1000 within platform) the Generation Fund is accessible to all levels of investors no matter how big or small they are.
When can monies be invested in the Generation Fund?
We are working furiously to finalise all elements of the Generation Fund with an aim to launch in May 2017. Keep your eye out for more details over the coming months.
Mortgage rates are rising
Is it time to review your home loan?
This week both NAB and Westpac raised their base mortgage interest rates outside the normal RBA (Reserve Bank of Australia) pricing cycle and there are also rumours that second tier lenders like ING and Macquarie Bank will follow suit.
These interest rate increases are a result of:
- the constant demand for housing in Australia with a surge of investors looking to enter the property market;
- increased funding costs for banks as a result of increasing US Interest Rates; and
- an increase in lending regulations set by ASIC.
This rate hike has once again put more pressure on Australian lenders as the average owner-occupied loan saw a 0.05% rise and the investor loans rose on average 0.24%. Whilst this rate increase may not seem large it could mean you are paying an extra $1,250 per year on a $500,000 loan.
Some lenders are choosing to hold rates flat for Principle & Interest loans whereas they are increasing rates for Interest Only loans, so it’s important that you not only look at your lender’s rate but also how your loan is structured.
Financial Decisions currently works with more than 40 lenders and is both an AFSL (Australian Financial Services License) and Credit Licence holder and a regulated tax practice. This means we can provide advice on:
- The best loan for your needs – the lowest rates and the best lenders
- Structuring your loan – Principle & Interest v Interest only, fixed v variable etc
- Minimising your tax obligations
- Protecting your loan against rising interest rates whilst ensuring flexibility to make additional repayments.
Take advantage of our FREE home loan assessment today. Call us on 02 9997 4647 and ask for Damien Cooper or Garo Mazmanian.
1 July 2017 – the date super changes
Time is running out to top up your super before the 1 July 2017 changes.
Previous emails have noted the fact that there are some significant changes set to impact superannuation. By increasing your contributions within specified thresholds, you can avoid a host of pitfalls under the new regulations.
Following are just some of the changes that will have implications for superannuation wealth creation and management moving into the new financial year:
- Concessional contributions to superannuation will capped at $25,000 a year regardless of age.
- The total non-concessional contributions allowed are capped at $100,000 per year and $300,000 (for those under 65) under the three year bring forward rule.
- Those aged 65 and over or with a super balance in excess of $1.6 million, may be restricted from making non-concessional contributions.
- The maximum amount you can invest in the retirement phase will be $1.6 million.
- Transition to Retirement pensions will go from not being taxed, to attracting a rate of 15% per year – a move that can drastically eat into a nest egg!
The incoming changes could have serious ramifications for the health of your wealth and assets so it’s worthwhile contacting your Financial Decisions advisor to ensure you are set up to capitalise and not suffer as a result of the changes.
A not so tough transition
For those looking for savvy tax exemptions and a sound wealth management strategy, a strong approach is to migrate Transitioning to Retirement (TTR) funds across to account based pensions prior to 1 July 2017.
The reason for this is that earnings from TTRs have previously and currently do not attract tax. However, in the new financial year, they will be taxed at 15%. In addition, there is a $1.6 million pension limit for an individual TTR funds, therefore keeping funds under this threshold amount will also help avoid the 15% tax.
What that means in simple terms is that by converting TTRs into account-based pensions, tax applied to those particular super funds is avoided!
For more information on the Generation Fund, mortgages or strategies to make your super work harder for you, speak to a Financial Decisions Adviser today.
Disclaimer: This publication has been compiled by Financial Decisions (AFSL/ACL Number 341678). Past performance is not a reliable indicator of future performance. While every effort has been taken to ensure that the assumptions on which the outlooks given in this publication are based on reasonable data, the outlooks may be based on incorrect assumptions or may not take into account known or unknown risk and uncertainties. Material contained in this publication is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The information and any advice in this publication do not take into account your personal objectives, financial situation or needs. Therefore you should consider its appropriateness having regard to these factors before acting on it. While the information contained in this publication is based on information obtained from sources believed to be reliable, it has not been independently verified. To the maximum extent permitted by law: (a) no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up-to-date or fit for any purpose; and (b) Financial Decisions nor its employees are in any way liable to you (including for negligence) in respect of any reliance upon such information or advice. March 2017
Contact: Financial Decisions PO Box 484 Mona Vale NSW 1660, T 02 9997 4647, F 02 9997 7407