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News - Big Sky Financial Solutions

News



Living with volatility



6 February 2012

The past six months have been extremely volatile in investment markets. Some would say they have been reminiscent of the Global Financial Crisis (GFC), particularly in early August this year when markets experience wild price swings on a day-to-day basis.

Recent announcements from The Federal Government



6 February 2012

Recently, the federal Government released its Mid-Year Economic and Fiscal Outlook (MYEFO). Generally, this would not include any significant announcements which may impact your financial planning, however given the impact that Global events appear to be having on the Federal Budget and the government's desire to honour its commitment to return the budget surplus, this year's outlook is an exception to the rule.

the power of compounding



6 February 2012

Albert Einstien described compound interest as the "greatest mathematical discovery of all time". For a person who made several significant discoveries in science, this statement highlights the power of compounding - that is the ability to generate long-term returns on not only the original sum invested, but earnings generated along the way.

twenty years without stumbling



6 February 2012

Australia recently reached an economic milestone. At the end of June 2011, the Australian economy marked two decades without a recession. A report released in September 2011 by the Australian Bureau of Statistics showed that Australia's economy grew 1.2% in the June quarter, to give 1.4% growth for the financial year. This was the 20th consecutive year the economy has grown, for our last recession ended in the June quarter of 1991.

the good old days



6 February 2012

"The hardest arithmetic for human beings to master," wrote the great American working man's philosopher Eric Hoffer, "is that which enables us to count our blessings." It's a piece of wisdom worth recalling after another year that has tested the nerve of many investors and prompted questions about what current generations have done to deserve to live in such a tempestuous stage of history.

Have you got a Power of Attorney?



24 October 2011
In recent weeks there has been some media attention around families encountering difficulties as a result of a parent handing control of their finances to one or more of their adult children.

The sensationalist coverage inferred that entrusting decision-making to a family member via a Power of Attorney was a risky practice. For most families however, the reality is quite the opposite.

Reporting Season Wrap



24 October 2011
The Australian share market reporting season has come and gone for another year, with the market delivering 11 percent growth for the financial year. The “two speed” economy was evident, with resources delivering 30 percent growth while the remainder of the market only gained three percent.

Economic & Market Update - September 2011



24 October 2011
Market Movements



Up and Down Again!



27 September 2011
Do you get a sense of déjà vu? Global equity markets have been all over the place - again. However, there are some differences - this time around the credit markets are continuing to function. During the worst of the global financial crisis, in 2008 and 2009, confidence in the global credit system evaporated – corporate lending spreads (the amount of extra interest a company has to pay above the Reserve Bank rate to compensate for its perceived higher level of risk) blew out to previously unimaginable levels, banks refused to lend to each other, and global trade plummeted as trade finance dried up.

The Dollar in 2016



27 September 2011
Forecasting the comparative value of the Australian dollar is fraught with difficulty and never so much as now when there are conflicting forces pushing the A$ in different directions.

The recent strength of the A$ has been driven largely by a weaker US$, rising commodity prices and Australia’s relatively high interest rates. The current weakness in the US$ stems mainly from the US Federal Reserve’s quantitative easing program and lack of urgency to raise interest rates at a time when other central banks, including the European Central bank, are beginning to raise their interest rates. Further contributing to US$ weakness is greater consumer confidence globally, especially in Asia, which has reduced demand for the US$ as a safe haven currency.

Emerging Markets



27 September 2011
With the slowdown in the developed markets of Europe, the US and Japan, more and more attention is being given to the emerging markets as the future growth engine of the global economy. Emerging markets are nations in the process of rapid growth and industrialisation and are defined as economies with low to middle per capita income. Currently, there are 28 emerging markets in the world, constituting approximately 80% of the global population and representing about 25% of the world's economy. These countries include Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela.

Economic & Market Update - August 2011



27 September 2011
Market Movements



Update on Global Share Markets



9 August 2011
Global share markets fell sharply over the last few days. This has flowed through to the Australian share market, with the S&P/ASX200 currently down to 4,019 points.

The sovereign debt issues in Europe and recent poor economic data out of the United States have led to considerable market volatility in recent days and months. The sovereign debt issues in Europe cross two complex and associated issues.

Make the most of life with a little advice



9 August 2011
Real freedom in life comes from being able to do what you want to do, when you want to do it. That means making choices that suit you or your family, not your employer or your bank manager, or even your clients.


Transition to Anything



9 August 2011
We’ve talked about the benefits of a strategy called ‘Transition to Retirement’ or TTR, for some time now and more and more people are paying attention for a variety of compelling reasons. Some people still haven’t caught on, but we think we know why.

The cost of survival



8 July 2011
Whether you realise it or not, you probably have some kind of insurance cover through your employer’s preferred superannuation fund. Typically this is for life insurance in the event of premature death and probably some TPD cover should you be totally and permanently injured through illness or an accident.


Where to invest - shares or property?



8 July 2011
Residential real estate has long been a favourite investment with Australians. And while many people now own shares, either directly or through their super funds, the lure of bricks and mortar remains strong, with many still aspiring to build wealth through rental properties. So how do the two asset classes compare?



Economic & Market Update - May 2011



9 June 2011
Market movements



Highlights of the 2011/12 Federal Budget



13 May 2011
Federal Treasurer Wayne Swan delivered his fourth and the Gillard Government’s first Federal Budget on Tuesday night.

The Treasurer had promised a ‘tough’ budget as the Government’s first step on the way to returning to surplus by 30 June 2013, but reactions from commentators have been mixed about how tough it really was.

As expected, the Budget contained a number of measures previously reported in the Government’s responses to the Henry Tax Review, the Cooper Review of superannuation and the Ripoll Inquiry into the financial advice industry.


Concessional Contributions: Know your limit



9 May 2011
Many people have recently received a nasty tax surprise because they exceeded the limit allowed for concessional contributions into their superannuation accounts.

As a result of the current contribution limits, is has become quite easy to breach the caps inadvertently. For example, if you’ve been salary sacrificing into your super since July 2010, or you’ve put a lump sum into super this financial year, it’s a good idea to check where you’re up to at this point - to make sure you’re not going to be over the limit.


Quartely Economic & Market Update



9 May 2011
Having the right industry and market knowledge is vital when making critical business and personal decisions. To keep up-to-date with financial markets, this market update provides a wealth of information on Australian and International economies and markets.
Monthly Market Update - April 2011


2011/2012 Federal Budget ...



9 March 2011
The Federal Budget release is approaching. Stay tuned for a mid May budget update and what this could mean for you.




Winning the game in the last quarter



19 April 2011
It’s April again, the second month of autumn and the first month of the winter sports season. It’s a time to dig out those scarves and beanies and join fans in arenas around the country.

Even if you’re not into sport, April is also a good time to dig out some other things from wherever you last filed them. With the last quarter of the financial year about to start, it’s time to get out your financial paperwork. Getting organised now could mean the difference between ‘winning’ and ‘losing’ during 2010/11.


Are you a ‘have to’ or a ‘choose to’?



19 April 2011
Work is a big part of our lives. For some people work is a joy, for others it can be a chore.
Regardless of how you view work, your opinion will probably be influenced by whether you ‘have to work’ or ‘choose to work’. There’s a big difference between the two.


Recognising the value of good advice



19 April 2011
Many people are unaware of the value of financial advice, thinking it an exclusive service that’s only available to wealthy investors or retirees. Others think advice is something you might ‘buy’ once in your life, like an off-the-shelf product you should have at a certain age.


Economic & Market Update - March 2011



19 April 2011
Market movements

The basics of investing: Timing



11 March 2011
To be a successful investor, you need to be patient. You need a long-term view, clear goals and some good financial advice. That way, you’re more likely to make sound decisions, not impulsive ones.


Ripe age, rotten super



11 March 2011
Superannuation and retirement has been on the government’s radar for some time now. While the investment rollercoaster ride over the past couple of years has certainly sharpened the government’s focus on the superannuation system and retirement savings of Australians, a bigger issue has been driving the government-commissioned reviews that were finalised last year.


Spending time where it matters



11 March 2011
significant changes is hard enough. But what happens if you need to take responsibility for those of an aging family member, especially if you’ve had no in-depth involvement in managing their affairs in the past?


Small Talk – You’re the real asset



16 February 2011


There are those little things in your life that you perhaps didn't think were important to your finances. Or didn't realise they could make a difference to your situation, with a little piece of advice.


2011: The Year Ahead



16 February 2011
It’s been a dramatic start to the year with the recent devastating and unprecedented floods, bush fires and cyclones affecting tens of thousands of people all across Australia.


The basics of investing: Compounding



16 February 2011
To be a successful investor, you need to be patient. You need a long - term view, clear goals and some good financial advice. That way, you’re more likely to make sound decisions, not impulsive ones.


Quartely Economic & Market Update



16 February 2011
The two big news events that happened early on in the quarter were the G20 conference in Korea and the ongoing discussions at the US Federal Reserve of the merits of a further round of quantitative easing (the purchase of treasury securities).