Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.75 per cent, effective 3 November 2010.
Author: Ryan David Grant
RBA keeps cash rate at 4.50%
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.
PIMCO: The Myth of Diversification: Risk Factors vs. Asset Classes
Sourced from PIMCO Australia, 24 Sept 2010. 
Download PDF 
The word “risk” derives from the early Italian risicare, which means “to dare.” In this sense, risk is a choice rather than a fate.
– Peter L. Bernstein
Diversification often disappears when you need it most.
Continue reading PIMCO: The Myth of Diversification: Risk Factors vs. Asset Classes
Dude, where’s my insurance?
After spending so much money on something like a car, it makes sense to protect it with insurance.
But the problem for many Australian households is that their vehicles are better protected than the people who drive them.
When you look at how much life insurance actually costs, you’ll see it stacks up extremely well against car insurance – particularly when you consider the potential benefits.
The table below shows the premiums for a 35 year old accounts clerk (non-smoker) who earns $60,000 p.a. and takes out:
- Life Cover – $1 million sum insured
- Total and Permanent Disability (TPD) Cover – $1 million sum insured
- Income Secure Cover – $3,750 monthly benefit (payable to age 65). If this cover was required for example at age 35 – this would protect $2.7 million of income.
Source: ING Life
At $159.34 per month for a female, and $137.25 for a male, both customers are paying less for life insurance than they would for comprehensive insurance on a new $60,000 family wagon.
What’s more, Income Secure premiums are generally tax-deductible, which helps make life insurance even more affordable.
For families, the only way to stay truly covered is to maintain insurance on all of your most valuable assets – including your home, your car, and yourself.
If it’s time for a review, make an appointment with your financial adviser or call us on 133 667. One day it could make all the difference.
What can you do to extend your life?
“Live Long and Prosper”. The phrase made famous by the Vulcan’s on Star Trek has been an aim of mankind for an age. Modern medicine and higher wealth and standards of living are making in increasingly possible. What can we do to live longer?
As a financial planner, a great deal of my time is spent helping people achieve the second part, “prosper”. It involves an array of strategies from savings plans, investment strategies, tax and strategic management and providing an understanding of what funds people need to meet their expectations. It can be a very technical field which I love. The former part is a little more challenging, and I regularly spend time investigating modern research into longevity.
It is not just eating right and exercise that can help us live a longer, more prosperous life. A number of factors including our parents, our surroundings, social relationships and importantly, our attitude have significant influence.
Positive Thinking
Positive thinking tends to be a key attribute in many people outliving the average. Many people see milestones such as 40, 50 or 60 as significant steps that mean they cannot do the things they used to. Having a negative attitude about your job can also be working against you. Even just thinking these things can lead you to slow down, “age” and not be able to do what you did before. That same process happens at 25, 55, or 75… The power of the mind will impact greatly on your power in life.
If you want to live longer; it is important to feel good about yourself!
We will explore more factors in living longer in future articles and blogs. Until then, “Live Long and Prosper”!
RBA keeps cash rate at 4.50%
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.
RBA keeps cash rate at 4.50%
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.
Illustrating the risk of risk
Most people have no idea what the definitions are in their trauma policies, matter of fact, most people don’t even have a trauma policy! Considering the huge number of people that suffer some form of trauma or critical illness during their lifetime – this is ridiculous!
Critical illness such as heart attacks, stroke or cancer hurt Australian families more than most other events in their lives.
What I find ever more frustrating is people can try to do the right thing and insure their risks, only to find it wasn’t as good as they thought.
I recommend you talk to a qualified financial adviser to ensure you are getting what you expect, and to double check that any existing cover is actually worth the money you are paying for it!
Its important to note, that anyone can get caught, here is an example of a financial adviser who has been caught under a technicality with CommInsure, it makes me mad!
End of Financial Year Tips
This is information recently sent out to clients of WRS.
It is essential to be proactive prior to the end of the financial year. There are a number of strategies available within the scope of the law that can be implemented. We have listed a few to consider but your first step would be to contact your accountant/taxation advisor on taxation matters and your investment advisor on planning matters and any potential strategies that may be available.
Smile
‘One day most of the family was together in the mailroom, busily sorting through stacks of letters.
Will was on the floor playing. He looked up and said, “Mommy, Daddy can’t move his arms anymore.”
Dana said, “That’s right, Daddy can’t move his arms.”
“And Daddy can’t run around anymore.”
“That’s right; he can’t run around anymore.”
“And daddy can’t talk.”
“That’s right; he can’t talk right now, but he will be able to.”
Then Will paused, screwed up his face in concentration, and burst out happily, “But he can still smile.”
Everyone put down what they were doing and just looked at one another.’
– Christopher Reeve, B.1952, From “Still Me”
Christopher Reeve is an inspirational person who has helped develop spinal injury research and propelled it forward decades. This quote was provided in a small book entitled “Smile”, a gift book given to me by my good friends Ian and Katrina Burrell.