So much is happening....

Once again, it seems the Federal Government can’t resist changing the rules around superannuation even though they campaigned at the last election that this is specifically what they would not do, change the rules around super.

However, as I explain in my article, Limits On Super?, these modest proposed changes are much needed and are extremely unlikely to impact on what every day Australians should do regarding putting more money into super.

I do know though just the news that the Government is making more changes will prompt many people to think they have never liked super and will make many, more reluctant than ever to make the most of their super.

This is really unfortunate. I think superannuation is the financial cornerstone of every successful retirement and I take the time in Why Super? to explain the significant benefits of that every Australian should be aware of.

During the past month, we have also seen the incredible situation where the Commonwealth Bank posted a record cash profit, only to see its share price hammered by 10 per cent. In explaining why this happened, I think there are some valuable lessons for all investors and so well worth a read.

Australians will be hearing a lot more about a particular financial product, Annuities, and that a lot of this promotion over the next year or so will be aimed at those in or near retirement so I thought I would write about them in this newsletter.

Generally, as I explain, I think they are a very complex and expensive product. There are some circumstances where they might be attractive but I think there are better options in the market for anyone looking at retirement.

Finally, I think financial planning generally is a very misunderstood profession. I think of myself more as a financial life coach and in my final article this month, I explain what I see as the key benefits of that for clients.

In closing though, I’d like to welcome the old clients of my good friend Stephen Kleinhans, who are receiving this newsletter for the first time. I hope you find it interesting and please don’t hesitate in contacting me if there is a particular topic of matter you would like me to write about.