Change is the only sure thing in life
They say the only constant in this world is change and never has this been more the case then with Donald Trump leading the world as President of the United States and issuing new directives on a daily basis.
Fortunately for Australia, his recent meeting with Prime Minister Albanese seems to have gone well and there were no embarrassing or gotcha moments that have been the hall mark of his encounters with so many other leaders.
Together they signed an historically important agreement to work together to help Australia develop its rare earths deposits, that have largely sat undisturbed in the ground since they were discovered decades ago.
The prospect of billions of dollars being poured into this sector has set the share market alight, and brings with it the prospect of another mining boom engulfing the country, just as the iron ore boom seems to be slowing.
While any investment within Australia, and particularly within the mining industry, can only be seen a good thing for the local economy, in this newsletter I point out some of the risks that might cool this enthusiasm.
There is also nothing more likely to raise the hackles of older Australians then the prospect of the Australian Government introducing death duties and somehow getting their hands on family inheritances.
Depending on your circumstances, your super might be hit by Federal taxes although a few simple steps can minimize this impact. If you’re an existing client, we are already at work to ensure we minimize any future tax grab on your savings.
Finally, so little has been learnt it seems from the tulip boom, if you look at the rampaging surge in the price of gold, followed quite closely by price hikes in crypto currencies and now rare earth miners.
I guess it just taps into human nature that we all want to suddenly become rich and find a ‘clever’ investment, where there are no risks or downside and will magically increase say 10 or a hundred times. So, I have spelt out some home truths.
Importantly, if you know of anyone who is unsure how to arrange their finances as they move into retirement, please encourage them to contact me. It could be a lifesaving, if not retirement saving, moment for them.
Having said that, as clients and anyone who has anything to do with this business in recent years know, this business will be closed from Monday November 3 to November 7, as I take a well-deserved break away from managing clients’ funds.
Nonetheless, I hope you back a winner this week!
Patricia Howard
0427 429 817