25 Nov 2016
Australian Federal Budget 2016: Superannuation Reform
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 was passed on the 23rd November 2016 with the majority of the changes to commence from 1 July 2017.
Key changes include:
- New $1.6 million transfer balance cap which limits the amount that can be transferred to the retirement pension phase where earnings are tax-free.
- Reducing the concessional (before tax) contributions cap to $25,000 for all taxpayers.
- Reducing the non-concessional contribution cap to $100,000 per financial year or $300,000 under the 3 year bring forward provision.
- Removing tax exempt earnings for transition to retirement income streams.
- Lowering the income threshold for Division 293 tax to $250,000.
Click for legislation.
This is very exciting news right now because it allows an individual (if under age 65) to make a $180,000 non-concessional contribution into superannuation or trigger the 3 year bring forward provision and contribute up to the maximum $540,000 into superannuation this financial year.
It is a use it or lose it situation and conditions do apply.
WARNING, these comments do not constitute Personal Advice.
22 Nov 2016
Robotics Revolution: Amazon
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The future is very clear, no jobs for humans in repetitive manual tasks.
Watch how Amazon can package and ship one or more of 15 million items with less than 1 minute of human touch.
Click for video.
The next step is to get rid of the human altogether to reduce cost and increase speed.
This is going to prove to be a massive medium term challenge for the United States given that the election platform was all about bringing back the jobs.
17 Nov 2016
2015-2016 Billionaire Census: Real Money
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The count is up to 2,473 owning US$7.7 trillion which on a combined basis trails third to only the United States and China.
The quantum of wealth is now at obscene levels and yes the rich are getting richer.
Click for report.
Click for website.
10 Nov 2016
2016 US Presidential Election: Trump Triumphs
- Posted by Dejan Pekic BCom DipFP CFP GAICD
They said that it was the race that he would not win and yet Donald Trump has been elected the 45th President of the United States of America.
We are in for a shake-up, a change and upheaval in financial markets.
Click for paper.
Click for video.
Next it is time to be patient, to wait and see what buying opportunities if any are offered up by panicking sellers.
1 Nov 2016
Professional Investment Management: Lessons from 50 years
- Posted by Dejan Pekic BCom DipFP CFP GAICD
As a rule we do not billboard/advertise professional fund management teams but given that we have been recommending this institution to our clients for 26 of the past 50 years it is worth reviewing their results.
Since December 1976 the Perpetual Industrial Share Fund has returned 212 times the initial investment and delivered a 92.0% return net of fees above the index to June 2016.
That is a remarkable performance and helps to highlight the value that you are buying when you hire a top team of professional fund managers.
WARNING, past performance is no guarantee of future performance and the ability of top professional investment management teams to outperform their respective index/benchmark in not guaranteed. Most importantly, this does not constitute Personal Advice.
We have attached 8 lessons that the team of professional fund managers at Perpetual have learnt over the past 50 years of investing in Australian listed companies.
It is a great read.
