Contact details
Waverton
Phone: 9954 9455
Fax: 9954 3955
Address:
Level 2, 100 Bay Road
Waverton NSW
Mona Vale
Phone: 9999 2344
Fax: 9999 4660
Address:
Suite 9, 90 Mona Vale Road
Mona Vale NSW
What's new?
Upcoming Seminar
We are planning to have a seminar next month on the state of the economy. We look forward to sending you details shortly.
Edition 5
Hi and welcome to our winter edition newsletter. I hope you will find this newsletter interesting. If you do find any article of particular interest, please don't hesitate to contact the writer to discuss it further. One such article I hope you find interesting is the one on volatility. With the current state of financial markets, it is very topical.
On that note, you may have already or you may be about to receive your annual statements for superannuation and/or investment accounts. It is important to remember that investments are long term, and in the short term, you will get periods of negative returns. The declines in markets this time have been sharp and swift, to some extent due to the reversal of rapid rises in recent years and the rapid decline in the U.S housing sector, and the significant increases in the cost of debt.
However, with every cloud there is a silver lining. Cash rates and term deposits are now relatively good and yielding better returns than any time in the last five years. This combined with the new tax free superannuation pensions for those over 60 years of age means your savings can work more efficiently for you.
On the economic front, it is likely that world growth will be slowing due to the housing downturn in the U.S and the rising cost of debt. Australia however, seems to be fairly well positioned to ride out the storm due to its vast amount of natural resources and the Asian growth story. Our rising Australian dollar is good for consumers of imported goods, but not so good for our exporters.
Oil and Carbon trading are very topical at the moment and we continue to look for investments, that are both sustainable and rewarding to the investor.
With tax time here again, we look at the "washed trades" taxation ruling, if you are thinking of selling some shares with losses to offset some capital gains and then buying them back, think again, as the tax office has published a ruling that will disallow such deductions.
At Northstar we continue to try to guide you through these tough times and look forward to catching up with you in the near future.
The contents of this Bulletin are general in nature. We therefore accept no responsibility to persons acting on the information herein without first consulting with us.
Tax benefits with insurance
by Alistair Saunders
Building a financial plan without adequate insurance is like building a house on flimsy foundations. Comprehensive insurance cover can be a significant expense. However, the out of pocket cost of insurance can be reduced by taking advantage of the tax deductions that apply to specific types of insurance, and to some methods of implementing insurance.
Are we about to run out of oil?
by Alistair Saunders
Oil may well be the commodity upon which modern living is most reliant. Without it, our modern economy would rapidly grind to a halt. An oil-free world isn’t something we’re likely to see anytime soon, but oil is still set to have a bigger influence on the global economy and investment decisions than it has in the past. Read More » |
Volatile times – weathering the storm
by Alistair Saunders
Why do markets experience bouts of volatility which exceed that justified by fundamental information flow? Experience and observation tell us that investors have a tendency to act irrationally. Emotions such as fear and greed can get in the way of good decision making based on fundamentals.
Small Business Succession Planning
by Peter Lever
Many self-employed people overlook the value of the businesses they create, but with a bit of prior planning, some of this value can be released at retirement.
Income Tax application to Wash Trades
by Andrew Stanning
Wash Sales describe the sale and purchase of the same or substantially the same asset within a short period of time of each other. This enables a taxpayer to incur a loss to offset against a gain already derived or expected to be derived in certain circumstances.
Housing Affordability
by John McCuaig
Although the media is full of alarm about housing affordability, existing home owners and property investors should be careful when they interpret the information they see on TV.