Array Financial Services July Newsletter

The investment outlook – it’s not all that bad! Here are nine reasons why
The past few weeks have been messy with Brexit, the Australian election, another terrorist attack in France and an attempted coup in Turkey. In fact, the last 12 months have been – starting with the latest Greek tantrum and China share market plunge a year ago. It’s almost as if someone has listened to Taylor Swift’s song “Shake It Off” and decided to try and shake up investment markets. This has all seen a rough ride in investment markets with most share markets falling into bear market territory at some point over the last year and bond yields plunging to record lows. This note reviews the worry list from the last 12 months, the impact on returns and looks at the outlook going forward.

Keep reading here:
https://www.ampcapital.com.au/article-detail?alias=/olivers-insights/july-2016/the-investment-outlook-its-not-all-that-bad

Weekly Market Update

It has been “risk on” again over the last week in investment markets helped by a combination of good economic data in the US and China, good US earnings news and firming expectations of more policy stimulus in Japan.
Read more here:
https://www.ampcapital.com.au/article-detail?alias=/site-assets/articles/economic-updates/2016/2016-07/15-july-2016

Are your personal insurances up to date?

Insurance is just one part of your busy life. But it’s a plan to look after your lifestyle or the lifestyle of your loved ones – so it makes sense to keep on top of it, especially with new products available on the market and more competitive pricing. It’s also easier than ever to do.
So, if you have have had one of these major life changes:
– Starting a Family
– Buying a House
– Getting Married
– Building a Career

Then it’s time to call Array today for your no obligation review!  9730 1622

Is an SMSF right for you?

Self-managed super funds (SMSFs) are the largest and fastest growing super sector in Australia and for many good reasons. But before you start an SMSF, it’s important to weigh up both the advantages and disadvantages and consider seeking advice to determine whether an SMSF is right for you.

The Advantages

SMSFs can offer a number of features and benefits generally not available with other super options.

More investment control

You can establish your own investment strategy and directly control where and how your super is invested.

More investment choice

You can select from a wider range of investments including all listed shares, some unlisted shares, residential and business property, and collectables such as artwork, stamps and coins.

One fund for the family

You can set up a fund for yourself and up to three other people and consolidate your super balances. This could enable you to invest in assets of higher value than if you set up a fund with fewer members, achieve greater estate planning flexibility, and reduce fund costs.

girl with piggy bank

Borrow to make larger investments

Your SMSF could make a larger investment in assets such as shares and property by using cash in your fund and borrow the rest.

Tax savings

With SMSFs you can take greater control over the timing of tax events such as starting a pension without triggering capital gains tax when your superannuation assets move into pension phase. You may also have the option of transferring assets that you own into your SMSF.

Greater estate planning certainty and flexibility

You can nominate who you would like to receive your super when you pass away without having to meet some of the constraints that apply to other super funds.

The Disadvantages

While an SMSF can offer greater opportunities to take control of your retirement savings, there are some potential disadvantages you should also consider.

Higher costs for lower balances

SMSFs generally only become cost-effective if the fund has $200,000 or more invested. This is particularly true where you outsource and pay for most or all of the fund administration.

Greater responsibility

When you set up an SMSF, you and any other fund members will generally need to be trustees (or directors of the corporate trustee) and will be responsible for meeting a range of legal and other obligations.

*Source MLC/NAB Media