01 Jul 2014 03 Jun 2015
Imputation 9.80
Cash 1.88
Global Technology 35.28
Health & Biotech 58.12
High Growth 13.63
Overall performance 01 Jul 2014 03 Jun 2015 25.37
We emailed a young client their portfolio this week & this was the performance that was enclosed in the report.
Yes It is a simple portfolio using a simple master trust & using fund managers. The young client is not selecting direct shares as that is not her skill set.
She isn’t a trustee of a SMSF because she doesn’t want the responsibilities of being a trustee & the costs she pays the hangers on to advise her.
She has it on a master trust because the taxx man wants his grab & hence there is record keeping required. The taxx agent generally guesses.
In fact it is outside the super system as a major risk is Legislative risk.
We see this when both parties are suggesting their view of raiding your super in the next election.
Of course we discussed asset allocation when we actioned this portfolio which was before the AUS dollar fell 30% & before the Nasdaq went to a high.
Maybe we should invest the sisters moneys says the young client.
As all small print in disclaimers say future performance is no reflection of the past just like relationships.
And then we had this week also to find a decent term deposit rate for Allison’s mother who is not young. She doesn’t want shares as they have volatility. So do relationships as Allison knows.
Here was the choice
Current rates
Term deposit interest rates for the week ending 05 June 2015
| Issuer |
2 years |
1 year |
6 months |
3 months |
2 months |
1 month |
| NAB |
2.92% p.a. |
2.90% p.a. |
2.90% p.a. |
2.87% p.a. |
2.60% p.a. |
2.23% p.a. |
| St. George Bank |
2.95% p.a. |
2.70% p.a. |
2.70% p.a. |
2.65% p.a. |
2.60% p.a. |
2.40% p.a. |
| Adelaide Bank |
n/a |
2.70% p.a. |
2.75% p.a. |
2.70% p.a. |
n/a |
n/a |
Note: Interest rates are indicative
Certainly not exciting when medical costs are accelerating as mothers appreciate in age.
And then we had two recent discussions from mining clients
Hi john
17 business went bankrupt in Karratha in the last two weeks!!!
Massive correction in the market!! Only one making money is the removalist!!!
We had sent them ‘Median house prices in the Pilbara town of Karratha have plunged almost 34 per cent as the mining downturn prompts residents to leave.
Real Estate Institute of Western Australia data for the year to March shows the average price in Karratha has fallen to $450,000.
That compares to $650,000 in the March quarter last year
http://www.theaustralian.com.au/business/latest/house-prices-plunge-in-was-pilbara/story-e6frg90f-1227370009283’
And from Moranbah
Our son has just been laid off.
Of course he bought a house there because the rents were so high.
If he has to move with his family what equity will there be left. Just maybe negative equity & then what does the bank do?
Only this morning we were called by a major fund manager who explained that they were making a large distribution because they had sold over priced shares e.g. banks in April.
They called because there would be capital gains & hence Taxx.
We note the very average returns in the imputation fund by definition is generally in the banks & Telstra.
As most SMSF are.
Another reason for professional fund managers who have more information than Mum & dad trustees.
One last thought bubble. We reached a certain age recently which no one except Big Brother acknowledged.
We had to sign a parcel from the Australian Government that contained a Bowel Testing kit. Do you really want your Taxx being spent on analysing our POO.
We didn’t think so.
What a Nanny State!!! How many are sucking on the government tit?
We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.
If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.
As others do call us on 07 3848 1088
07 3848 1088 orThis email address is being protected from spambots. You need JavaScript enabled to view it.or visit our new website
John McAuliffe
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