All Financial Services

‘Tax breaks encourage savings’ by Paul Clitheroe

AFS — Mon, 26 Jul 2010 07:11:44 +0000

Tax breaks on interest income introduced in the May Federal Budget will hopefully encourage more Australians to save. But it’s worth remembering that other investments also deliver welcome tax savings. From 1 July 2011, assuming it’s enacted, we’ll have even more of an incentive to start a personal savings plan. Instead of interest income being fully taxable, the first $1,000 of interest earned on deposit accounts will attract a 50% tax discount. This is a plus for savers, because without the tax break, a high income earner for example, could lose up to almost half any interest income to the tax man. Put differently, the tax concession on interest is like earning a higher return on your savings.

‘Personal loans – can be better than credit cards’ by Paul Clitheroe

AFS — Mon, 19 Jul 2010 00:56:24 +0000

Credit cards are found in almost every wallet these days, and it’s easy to put big ticket purchases, like a new appliance or a holiday, on the plastic. But personal loans can often be a far cheaper option. Convenience could be a key factor behind the use of credit cards to fund large purchases. Personal loans take time to organise, and because this can be inconveniencing, it does provide valuable breathing space to think about whether you really want or can afford an item – and you may decide you can’t afford or don’t want it, and thereby save your money. Chances are, a personal loan could also offer decent savings – on interest rates. Credit card interest rates have been creeping up over recent months and many now charge close to 20%. By comparison, you can expect to pay anywhere between 11% and about 13% with a personal loan.

‘Taking financial stock’ by Paul Clitheroe

AFS — Mon, 12 Jul 2010 07:08:24 +0000

The start of a new financial year provides a useful mid-year point to review your personal finances. Giving your budget, mortgage, credit card and savings plan a quick check can pinpoint areas where you could save money or make a bit extra. The cold winter nights provide an ideal opportunity to review your household budget. If you’re feeling strapped for cash, your budget will show where you need to rein in spending. If you don’t have a budget or you’re not sure what’s involved, download a free budget planner from the Federal Government’s Understanding Money website (www.understandingmoney.gov.au).

‘Property market update’ by Paul Clitheroe

AFS — Tue, 06 Jul 2010 00:16:25 +0000

Australia’s residential property market has enjoyed 16 consecutive months of healthy price gains. But according to industry figures the market is cooling, and in April 2010, capital city prices recorded almost no growth at all. The state of the property market holds a great deal of interest for many Australians. Two thirds of us own our home, with about half these people paying off a mortgage. In most cases, the family home is the biggest asset we own. So while property is a long term asset, it’s understandable that we’re keen to get an idea of how values are faring on an ongoing basis.

‘Small business and tax’ by Paul Clitheroe

AFS — Tue, 29 Jun 2010 00:41:28 +0000

Australians are an entrepreneurial lot. In a recent survey by recruitment group Kelly Services, one in five described themselves as ‘self-employed’, and of the rest, approximately half expressed a desire to work more independently. Clearly, running our own show holds real appeal but long-term success in small business calls for good management. Working for yourself isn’t always as risky as people believe, especially if you’ve done your homework and have a clear plan for success. The challenge for time-poor entrepreneurs often lies in managing the day to day administration of the business. And it’s at tax time that self-employed workers often get caught out.

‘$610 million in lost money – some could be yours’ by Paul Clitheroe

AFS — Tue, 22 Jun 2010 03:58:35 +0000

How good would it be to find you had a lazy half a million dollars waiting to be collected? Well apparently plenty of Australians do – they just don’t know it. The Australian Securities and Investments Commission (ASIC) say the pool of unclaimed cash has risen to a record $610 million. And it costs nothing to see if some it could be yours. For most of us the idea that you could have some missing money is unthinkable. But if you’ve changed addresses frequently, had a number of bank accounts, life insurance policies or different share holdings, there might be money waiting that’s rightfully yours. Or you may have an inheritance that you’re unaware of.

‘Getting set for tax time 2010′ by Paul Clitheroe

AFS — Wed, 16 Jun 2010 05:29:08 +0000

As part of the latest Federal Budget, from 1 July 2012 individual taxpayers will have the option of claiming a $500 standard workrelated tax deduction to help trim the cost of managing our tax affairs. This standard claim will increase to $1,000 from 1 July 2013. This may replace the traditional shoe box of receipts but as the curtain closes on the current tax year, it’s still important to claim everything you’re (legitimately) entitled to.

‘Turmoil in Europe masks bright spots’

AFS — Sun, 13 Jun 2010 05:40:56 +0000

Investors who are overly pre-occupied by economic turmoil in Europe may miss opportunities elsewhere. As we expected, the biggest game in town for economists this year has been predicting how the huge government stimulus spending of 2008/09 would unwind. So it’s no surprise that what began as a debt crisis in Greece, has caused investors to ask questions not just about Europe, but the UK and US too. Shares have fallen (see chart) with European markets hit hardest. A ‘flight to safety’ has seen investors ditch the Aussie dollar and turn to high-quality bonds – vital for effective diversification and a core part of diversified portfolios.

‘How much do you need to retire on?’ by Paul Clitheroe

AFS — Tue, 08 Jun 2010 01:07:20 +0000

Most Australians recognise the need to set aside funds for retirement. What’s less clear is just how much money we need to support a decent lifestyle in our senior years. It’s an issue many of us only address when we’re approaching retirement, and by then it can be challenging to build the level of investments needed for your preferred style of living. There’s no single answer to the question of how much you need to retire on. It’s a very personal issue, and one that hinges on your likely living expenses. A good starting point in determining how much money you need to be financially independant in retirement, is to work out an anticipated annual budget.

‘Sharemarket downturn can offer good buying’ by Paul Clitheroe

AFS — Tue, 01 Jun 2010 01:42:05 +0000

Concerns over European debt problems are sending many sharemarkets into a tailspin, and for investors the current highs and lows have something of a Groundhog Day feel following the market slump of 2008. I don’t pretend to know if we’re heading into a double dip downturn as some doomsayers are predicting, but I do recognise that sharemarket lows offer good buying opportunities.