Client Info Session Part 1
A few weeks ago, Johnston Grocke held an information session for its clients. The information session was a Market Update, covering the global economy, shares, property and retirement. Watch in the following weeks for blogs from the speakers, summarising their thoughts and information presented on that night. John Grocke was one of the speakers at this event and below are some of his key messages.
A significant number of superannuation changes were proposed by the government in the May federal budget. However, due to the then pending federal election they are yet to pass through both Houses of Parliament. There have been indications since the election that the Liberal party are receiving pressure from within to water down some of the proposed measures. At this point nothing is set in stone.
The proposed changes concern the maximum level of both pre-tax (salary sacrifice) and after-tax contributions i.e. reducing the cap from $35,000 to $25,000. Also proposed are changes to the transition to retirement pension tax treatment which has the potential to make them less attractive. These changes have been proposed so that the transition to retirement pension continues to do what it was intended - that is, to provide a pension that allows older Australian’s to draw on their pension to support their income needs, while reducing their hours of work, and therefore helping them remain in the work force for a longer period of time. Both parties seem to be in agreement to make changes to this arrangement of some kind.
John also discussed the global economic environment, mentioning that it is the most uncertain it has been since the GFC (global financial crisis.) Some of the reasons for this ongoing uncertainty can be put down to recent terror attacks globally, the Brexit referendum, and the upcoming elections in the U.S., France and Germany.
His main advice to combat all these changes and uncertainty was to make sure you take the time to review your investment strategy, understand the risks you are taking or willing to take, to meet your long term objective. This review should always be done with a trusted adviser.
If you are interested about our next client information session please don’t hesitate to contact us and register your interest.