Tag Archive for: Wealth creation

Review your financial situation for 2024

New Year’s resolutions often fade away, but the commitment to pause, reflect and review your financial situation each year is one that should endure. At Synectic, we encourage you to make this your top priority early in 2024. To get started, consider the following:

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$3.5 Trillion -The price of “Equity and Sustainability”

Our Superannuation system is getting more “1984” by the day.

The Government is trying to legislate a “shared purpose” for superannuation that introduces a requirement for “equity and sustainability” to the existing legal requirement to grow member benefits for retirement.

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Benefits of Direct Australian Share Investments in Superannuation

There are significant benefits associated with taking an independent, individually managed approach to investments in Superannuation. This is particularly true as investment balances grow and retirement planning commences.

Australian Superannuation funds are under the spotlight as the retirement system adapts to ageing demographics and longer life expectancies, and the retirement savings pool grows to become an increasingly large asset on the Nation’s balance sheet. The Superannuation Guarantee (SG) was introduced over 30 years ago and the system has matured. Funds under management have since grown to $3.4 trillion (as at the end of December 2022).

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International shares for Aussie investors

Many Australian investors prefer to invest in Australian shares rather than international shares. It makes sense for a range of reasons:

  • it’s a good rule of thumb to invest in what you know;
  • franked dividends provide tax-effective income; and
  • the Australian share market has performed strongly over the long-run, outperforming broad international share markets (MSCI World ex-Australia) by around 2% p.a. over the last 20 years.
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Investment decisions in a time of inflation risk

“I don’t want my super going to zero,” said a prospective client during a recent risk profiling discussion. “I want conservative investment decisions that won’t lose money over time.”

In uncertain economic times it’s tempting to avoid investment decisions and hold onto cash. This is opposite to the temptation to chase investment returns while everyone else is making money hand over fist (think 12 months ago).

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Financial planning in the new financial year requires a long view

Bill Gates famously quoted that, “Most people overestimate what they can do in one year and underestimate what they can do in ten years”. Regardless of your view of Bill Gates (and whacky conspiracy theories abound), the adage captures something inherent in human nature. We’re impatient to achieve our goals and equally, we aren’t accurate long-term thinkers. This doesn’t bode well for robust financial planning.

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SMSF Investments

Recently I’ve had a number of clients enquire about the pros and cons of setting up a Self-Managed Super Fund (SMSF). They have an instinct to get more control over their investments in Super. But they’re hesitant about the additional work involved in running a SMSF and are unsure of the costs.

There’s no perfect answer to the question, assuming one has sufficient funds to make it cost-effective. Anecdotally, I have seen a broad range of SMSF outcomes.

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A simple way to get the best rate for your term deposit

Term Deposits are a low-risk investment option, with a fixed rate of return, allowing you to make plans for the interest you will earn. But finding the best interest rates, worrying about re-investment dates and wading through paperwork can be a real hassle!

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Six tips for SMSFs investing in property

As a Self-managed Super Fund (SMSF) trustee you might, at some stage, want to invest in property as part of your fund’s investment strategy.

Before you do, you should fully consider the risks associated with property investment. Holding a “real property investment” can affect other aspects of your fund, such as benefit payments, and any investment must comply with superannuation laws.

Here are 6 issues to consider before your SMSF makes a property investment:

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What really matters?

Xerocon2018 brought us several sessions that asked us to think about the way we think. They were an excellent, and timely, reminder for me of what’s important in my life.

With a young family, I’ve found myself at one of those times in life when it’s valuable to pause a moment. To check that you understand your priorities. Because they change over time. And sometimes a significant event, or a minor event, a comment, a chance meeting, or a speaker at a conference can trigger reflection.

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