The Latest News and Views from Ascent Wealth Management

Hi Everyone,

Here's our monthly check in. Hopefully there are some useful tips for you.

As always, we check in on investment markets. At the time of writing we are seeing an escalation of trade tensions between the US and China. This has introduced a heightened amount of volatility in the market; this seems to be exacerbated each time there's a tweet from the US President or a proclamation from China. Naturally both countries are impactful of our financial sitaution here in Australia. On our account, with the federal election now having been run and won by the coalition, hopefully there will be increasing stability in the Aussie factors that influence our market. Investors are now on a more positive footing knowing there will now not be changes to franking credit refunds or Capital Gains Tax; we have already seen a positive market reaction to the re election of the Morrison government.

We still have not seen the anticipated increase in economic activity we would have expected with the improving economy. The next article examines the impact of making further cuts to the cash rate. As with most things financial, such cuts are a double edged sword. Investors suffer from lower interest on their savings, while business and home borrowers benefit from lower borrowing rates. There is an argument that we should keep "a bit in the tank", but with the cash rate currently at 1.5% and exected cuts of another 0.5% between now and Christmas, there won't be much room to move if things get worse.

With the end of the financial year in sight, many people are looking for smart strategies to implement. My next article explores the benefit of making the most of your super, which is still a really good way to provide for your retirement income needs. If you can take advantage of some tax benefits now, there will be more money there fore later.

The beginning of the new financial year will bring with it changed Centrelink assets and income test asssessment, for a new type of lifetime income product- the Pooled Lifetime Income Stream. It is possible for people, particularly in the early stages of their retirement to have more of their assets and income disregarded in calculation of their benefits if they use one of these new products. Naturally there are always tradeoffs to consider- these type of annuities have more restrictions on accessing capital when started; nonetheless they may be worth considering as part of youre retirement planning.

Starting the day with some warm water with a squeeze of lemon, just sounds health. My next article explores the health benefits of this very basic act of self- care.

Lastly, I now have only 3 weeks to go until my bike ride to raise funds for the Multiple Sclerosis Society of QLD. Thanks so much for those that have donated so far- if there's anyone who'd like to help us out, here's the link- your donation would be gratefully received !

https://www.msqldevents.com.au/champion/2019-MS-Brissie-to-the-Bay/SteveNielsen

That's about it for another month, please don't hesitate in contacting us if you need any further information on the above information. As always, please feel free to share the articles with those that might benefit.

Steve and Katrina

ThreeSixty Research Market Update - May 2019

Highlights:

The US labour market continues to tighten but the Fed is concerned that a cycle of perpetually low inflation expectations could reduce monetary policy flexibility.
Sentiment in Europe continues to deteriorate, with inflation softening in April and the manufacturing sector in contraction.
Despite zero growth in the CPI for the March quarter, the RBA opted to hold the cash rate at 1.50%, possibly preferring to remain on the sidelines during the election campaign.
The UK has negotiated a Brexit reprieve, moving the deadline back to 31 October, meaning it will participate in European Parliament elections on 23 May.
China’s March quarter GDP growth exceeded expectations, while investment spending has stabilised after falling through 2018.

If you have any questions regarding this report or would like to discuss your portfolio, please contact me directly on (07) 3343 9228

Read full May 2019 market update report >>

Chart of the week: Should the Reserve Bank cut interest rates to support Australia's economic growth?

8 May 2019

Senior Economist Bob Cunneen discusses the recent conflicting and confusing evidence on Australia’s economic growth performance.

Smart super strategies for this EOFY

Want to help boost your retirement savings while potentially saving on tax? Here are five smart super strategies to consider before the end of the financial year.

About two-thirds of Australians are entitled to at least a partial age pension, so most of us need to understand how it works and determine what role we want it to play in our retirement plan.

If you’re looking for one of the easiest morning rituals to transform your health, look no further than a glass of filtered water with freshly squeezed lemon juice.

Ascent Wealth Management Pty Ltd, Stephen Nielsen and Gavin Hammond are Authorised Representative of GWM Adviser Services Limited, ABN 96 002 071 749, AFSL number 230692 an Australian Financial Services Licensee, Registered office at 105-153 Miller Street, North Sydney, NSW, 2060 and a member of the National Australia Group of companies.

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and/or legal advice prior to acting on this information. The material contained in this newsletter is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this email.

Room 3, Corporate House, Building 6, Garden City Office Park, 2404 Logan Road, Eight Mile Plains QLD 4113
(07) 3343 9228

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