Aspirations Insights: Investment Market Update FY2022

We have experienced a very tough six months to the start of 2022, with all asset classes falling sharply. This is predominately due to Central Banks over-stimulating the global economy following the Covid-19 recession. We are now required to sharply tighten financial conditions (raise interest rates, stop printing money and shrink bloated Central bank balance sheets) to reign in generational high inflation. To see our full analysis, please click on the link below.

Link to Aspirations Wealth July Insights

Federal Budget Analysis 2022

On the 29th of March the Federal Government announced its 2022-23 Budget. The good news is that this Budget is unlikely to significantly impact our clients retirement and investment planning.

That said, there were a number of interesting measures announced which we have highlighted in our attached analysis.

Finally, it is important to note that at this time, these proposed measures are not yet law and could change as they make their way through the Parliamentary process.

If you have any questions please contact our office.

Link to Aspirations Wealth Federal Budget Analysis – 2022

Quarterly Market Update – September 2021

Aspirations Wealth Group has appointed Evidentia Group as our external independent asset Consultant. Evidentia works with select private wealth practices to design, build, implement, and manage tailored investment portfolios. They also provide AWG additional investment research, sit on the Investment Committee and provide detailed economic reviews.

 

Click Here for Quarterly Update

Aspirations Insights Webinar – September 2021

Rik, Mike and Don focus on the questions that matter for your portfolio in 2021 and beyond:

– What’s our outlook for the economy, share and property markets?

– Are property and shares in an asset bubble and will they pop?

– How long can interest rates stay at their all time lows?

– Is inflation and the rising cost of goods spiralling out of control?

– How do we continue to generate income and returns in your portfolios but protect against risk?

Click on the link below to access the Aspirations webinar:

Aspirations Webinar

 

Federal Budget Analysis 2021/22

Link to Aspirations Wealth Federal Budget Analysis 2021

This Federal Budget ticks the boxes and fills the gaps in Government policy from the ‘hard-hat’ 2020/21 Budget (was that really only six months ago?).

These include:

  • Stimulus that is directed at improving employment for women
  • A positive response to some issues raised by the Royal Commission into Aged Care Quality and Safety
  • Additional funding to the health sector to support mental health
  • A projected unemployment rate of less than 5%

On the superannuation side there is a definite feel of a Budget that aims to clean up some out-of-date rules and restrictions that no longer have a place in super and retirement.  Note, however, that the following will not commence until 1 July 2022:

  • The minimum monthly income threshold of $450 before super guarantee contributions are payable by employers will be abolished. The Retirement Income Review acknowledged that there was universal support for removing this threshold across all sectors of the industry. It unfairly penalises low income workers (63% of whom are women) and its original purpose of creating employer administrative efficiency is no longer relevant given SuperStream and Single Touch Payroll exist.
  • The work test to make non-concessional contributions by those aged 67 to age 74 will be abolished. Some sort of work test will be required to claim a tax deduction for personal contributions over age 67. This is a sensible move that will fix some of the more convoluted rules in super. Removing the work test should be relatively easy for the Government.
  • The age for making downsizer contributions will be reduced to age 60. This is to encourage empty nesters to sell their houses earlier, to increase housing stock for families. The advantage of downsizer contributions is that they are not counted under the non-concessional contributions cap, so a couple can sell their home and make a downsizer contribution of $300,000 each into super.
  • SMSFs and Small APRA Funds with old complying pensions (including term allocated or market-linked pensions) will be able to exit these. For some SMSFs the cost of running these pensions (such as actuarial costs) has been more than the actual pension they receive. This will also extend to APRA funds with old complying pensions. Additionally, the residency rules for SMSFs will be relaxed so that members can be non-residents for five years before this will affect the SMSF.

It is also important to take note of super issues NOT addressed in the Budget:

  • Despite an earlier push from the Coalition backbench, the super guarantee will increase to 10% from 1 July 2021.
  • With financial markets bouncing back over the last year, the account-based pension minimums will return to normal from 1 July 2021.

 

Aspirations Insights : COVID-19 Vaccine & Share Markets February 2021

Please see below the latest Aspirations Insights:
Share Markets 
There are encouraging signs that the global economy is emerging from the COVID-19 pandemic in better shape than was thought likely nine months ago. However there are significant disparities in valuations in the share market which continue to provide opportunities for identifying and investing in companies which are undervalued by the market, but possess significant upside potential.
During 2020, share prices were driven by an extraordinary combination of factors. Some sectors, such as many retailers, benefitted greatly from the short-term sugar hit of COVID-19 income support, while other sectors – such as hospitality, hotels, tourism, and international education – experienced dramatic falls in demand and activity. Investment markets experienced extremely high levels of volatility as markets stressed about the likely effects of the COVID-19 pandemic.
The unprecedented government-directed shutdown of companies and industries this time last year heavily affected many businesses and as a result investors sold off “the good, the bad, and the ugly” indiscriminately. Since mid last year, the performance of the share market was driven by strong interest in many speculative or ‘concept’ stocks many that make no profit. The share prices of these companies are valued far more highly than many well-established, good quality companies with proven track records of generating strong cashflows and dividends. We believe many non profit making shares that have boomed in the past year will have a day of reckoning in the years to come. This is a good reminder that caution and patience is needed when investing.
See the chart below for 1 year share market movement:
COVID – 19 Vaccine
As mentioned in previous insights, COVID-19 remains the biggest investment threat and the vaccine is key. If we are to return to some form of ‘new normal’ COVID needs to have a dramatically reduced its impact on the global economy. Thankfully vaccination programs are well underway world wide. See the chart below with current progress:

Summary
We remain confident in our investment process, whilst the short term outlook will be uncertain, our three year investment outlook remains very good. Aspirations Wealth continues to focus on quality investments which in our view are resilient businesses which can continue to generate healthy cashflows.

Aspirations welcomes new shareholder

This week (06/10/2020) Mr. Don Changson joins Aspirations Wealth Group as its newest shareholder. Don has been a wealth adviser with Aspirations Wealth Group for over 2 years and now joins the firm as a shareholder. His wealth of experience, knowledge and skills will be a great asset for the business.

Don has been in the finance industry now for over 20 years, most of that time has been working in the corporate world constructing and managing large portfolios, however recently working with his clients as their wealth adviser has given him a new purpose . According to Don “there’s something special about working closely with clients, building strategies and plans to help achieve their goals and aspirations, and then watching them come to fruition over time….its very special and very rewarding.”

 

Welcome on board as a shareholder Don!

 

About Aspirations Wealth Group 

Aspirations Wealth Group has been providing professional financial advice for over 40 years. The firm always acts in the clients best interests and provides a complete range of financial services to help clients growth and protect their wealth.