The Latest News and Views from Ascent Wealth Management

Hello again for the October edition of News and Views.  I hope the past month has treated you well.  There's a fair bit going on with the January 2015 changes to Centrelink's income test assessment for Age Pension.  In short Centrelink will be applying the same deeming procedure to income from new Account Based (Allocated Pensions) commenced after 1 January 2015.  For some who are Centrelink pension eligible before 1 January 2015, it may be worthwhile to discuss the treatment of your income stream pre and post January and determine which produces the best result.  If you know people who are concerned about the recent communication from Centrelink, we're more than happy to have a chat to help people assess their options.

The markets have turned a little bit volatile with recent geo-political events.  Additionally, the continuing wind back of stimulus in the US and slower economies in Europe have given investors "pause for thought" after several months of strong performance.  This month, Brian Parker has a look at the latest developments and prospective actions in coming months. 

Jim Parker reminds us of a concept that is near and dear to me and informs a significant part of my approach to investment, Diversification.  Now is a particularly good time to be reminded of the importance of not having all of your eggs in one basket- this also goes for the investment properties out there; the difference between your investment property and your share portfolio is you actually can see the value of shares daily at the ASX; Investment properties are only valued on the day you get a contract from the real estate agent by the price a prospective purchaser is prepared to pay on the day.  Investment property valuations have the potential to be no less volatile.  Diversification seeks to take the "gueswork" out of investment, and remains a highly favoured strategy of our practice.

We next look at retirement, particularly whether insurances should be maintained.  Insurance is designed to provide protection against unexpected events derailing your future plans; while most plans have been achieved by retirement, there may still be some needs.  We also look more generally at the ongoing need for insurance later in the newsletter and in particular, the different types of events that you can protect yourself against.  Again, it comes down to your personal circumstances and priorities. 

Once the kids leave and the house gets a lot quieter, the time comes for empty nesters to concentrate on their own lives and enjoyment.  The next article considers some of the priorities for when the kids move out to prepare for retirement.  

We are entering the last few weeks before the Samford Garden and Lifestyle show.  The website has now got a lot more information about what's happening and what you can expect when you come along.  I'll hopefully see some of you out there, hoping on the day for more of the stunning weather we have been enjoying of late.

Until next month,

Steve and Katrina