The Wotherspoon Wealth Blog

Latest news

Investing for Income: Part 1

After the world’s ‘easy money’ reaction to the GFC, a typical balanced portfolio now produces around 25% less income. This has particularly been driven by significantly lower income from fixed interest investments like cash, deposits and bonds. As low rates are expected for many years, investors are understandably tempted to...

Federal Budget Aims for Stability

This year’s Budget has begun to focus on revenue, not just spending cuts. It aims to contain our debt so we get back into surplus in about 12 years, though the assumptions behind this may prove optimistic.

EOFY Planning for SMSF Trustees

The end of the financial year always seems to approach faster than it should. Given the impending July 2017 superannuation changes, being on top of your end of financial year planning is as important as it has ever been. This year it is essential that you consider maximising the existing...

Rise of the Techno-Privileged Class

After the GFC in 2008, Chair of America’s Federal Reserve Bank Ben Bernanke, toiled to avoid the mistakes of the Great Depression.  Banks were bailed out, interest rates lowered to almost zero for easier money access – and President Obama promoted fiscal stimulus with some success. Low interest rates and...

Beware the wolf in sheep’s clothing

We are increasingly concerned that Australia’s major financial institutions are hindering the development of professional financial planning. Regulation is way overdue to formally differentiate ‘product selling’ from professional, objective financial advice. The Australian Securities and Investments Commission (ASIC) Report 515 Financial Advice: Review of how large institutions oversee their advisers, makes disturbing reading...

Property Bell Tolls

Over the last 30 years, strong investment returns have largely been driven by falling interest rates. So with interest rates now about as low as they can go, we can expect lower returns ahead. “Our booming property market has been driven by low interest rates more than negative gearing” The...

Will you outlive your money?

Retirees want to be sure their money lasts through their lifetime. This is a tricky problem to precisely solve because we cannot know in advance how long we’ll be allotted. Despite debate about obesity, smoking and cancer, Australians are now living longer, healthier lives. Though it may seem optimistic, living...

The Credit Card Juggle

Managing your credit cards Even when you’re in a strong financial position, managing your spending with credit cards is a juggle. Most of us spend via credit or debit cards for their convenience and commonly, people pay off their credit card in full each month. However, since banks and credit...

Outlook for 2017

Economic outlook for 2017 Expect abnormal asset price volatility due to US uncertainties and higher geopolitical risks. Interest rates have begun to rise. But this year may be better than last – US earnings growth, continued easy money and some healthy hints of inflation from a largely skeptical market sentiment...

Superannuation Reforms Now Agreed

The government’s new superannuation reforms are the largest superannuation changes since 2007.  The legislation giving effect to these reforms has now passed both houses of Parliament.  Now superannuants and their advisers can more confidently plan around the implications arising from these changes. From 1st July 2017 this law will: Prevent...