economic climate of low interest rates and uncertainty on global stockmarkets
the three most important considerations for investors are performance, security
and diversification, incorporating the ingredients of Capital Growth and Income
Investments generally offer the advantage of high security of original capital.
These investments include bank deposits, term deposits and debentures with
major finance companies.
of interest bearing investments is that their returns are taxable and there
is no capital growth. For example, if you were to earn 9% per annum and your
tax rate was around 40% your after tax return would be only 5.4% per annum.
Thus, some income-producing
investments provide good security of original capital but no additional growth
potential to maintain purchasing power. Alternatively property is one of the
most solid forms of investment, providing capital growth and income.
Capital growth investments
include property investments, Australian share market investments, and international
share market investments as well as a huge range of more specialised investments
(pine plantations, collectibles, future contracts etc). We do not deal in
unduly risky investments.
investments reflect an increase in the capital value of the asset purchased,
whether the investment be direct in real property, shares or similar, or by
indirect investment through a unit trust or similar managed investment vehicle.
There are two
major advantages of capital growth investments. First,
by diversifying into economic sectors other than fixed interest it is possible
to take advantage of favourable investment conditions that provide superior
growth over the medium to long term. Second,
capital growth is subject to capital gains tax that is based on the real rate
of return (i.e. discounted for the effects of inflation.) Capital gains tax
is therefore much lower than comparable income tax, A very important factor
relating to capital gains tax is that it is not payable until the investment
is sold, thus any tax liability is deferred into the future at which time
lower personal tax rates may apply.
the above, capital growth investments enable the management of your taxation
position to suit your circumstances.
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your way to wealth
your investment and increase your capital returns.
- To capitalise
on daily investment opportunities, use the equity in your shares, property
and/or managed funds.
- Enjoy the
flexibility of a Margin Loan from Leveraged Equites and you too, can begin
to leverage your way to wealth.
against your existing assets, you can take advantage of other investment opportunities
as they arise. This is leveraging your investment portfolio.
portfolio has become a popular wealth creation strategy, however leveraging
also increases your investment risk as well as incurring an interest cost.
are leveraging shares and managed funds as well as leveraging investment property.
hand” to the growth of your net assets, not generally taken into account,
is that gains on your leveraged portfolio are not taxed until sold. The interest
costs may also be tax deductible each year.
The most important
factor is to select the right securities and investment structure for your
own personal situation. It is vitally important to speak to your broker and/or
financial advisor before leveraging into managed funds, stock market and/or
EBS Financial Services can assist with financial planning.
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investment portfolio centres on the principle of diversification, an exposure
to a range of investments operating in different markets. The two main ways
of achieving this are firstly, to choose an allocation to specialist investments
operating in a single investment market (e.g. A Property or share trust),
or secondly, to use Managed Funds, which invest in a mix of investment markets
within the one unit trust structure. Managed funds offer the advantages of:
- Access to
the skills of a professional investment manager in choosing an optimal investment
- Less surprises
than specialist funds
- Easier management
of paperwork and taxation details
- Savings plans
to allow regular investment into the fund
- Greater security
of original capital than specialist funds
- Wealth accumulation
prospects representative of the portfolio as a whole, rather than the varying
performance from specialist funds.
share market Investments
share market investments are the highest growth of all investment markets
with historical returns well in excess of inflation. Therefore, equity investments
form an important part of every investment portfolio in order to assist with
combating the effects of inflation. Share market investments are, however,
the most volatile of all investment markets. They should be regarded as medium
to long-term investments unless short-term speculation is desired. Despite
the attractive historical returns, the proportion of share market investments
should be such that the overall value of the investment portfolio is guarded
against the effects of these variations. Investments in growth related share
markets funds rely on the capital value of each share in the portfolio increasing.
These increases are reflected in the unit price of the funds by frequent revaluing
of the share portfolio. Equity growth funds generally have a low-income level,
which is incidental to the main purpose of the fund, that of obtaining capital
approach to investing suggest that a well structured investment portfolio
should have at least some exposure to the four major investment markets at
all times, including property.
Property trusts are almost wholly invested in commercial, industrial and retail
property and returns have been reasonable, their main advantage being that
they move in an entirely different business cycle to the other sectors and
thus returns from property trusts investments will assist a portfolio at times
when interest rates are low and the return on shares is also disappointing.
securities offer a high level of security with regular income. These investments
include deposits with major banks and Government and Semi- Government bonds,
as well as debentures with finance houses and mortgage trusts.
In these funds,
a dominant investment is made in cash and fixed interest securities to under
pin the value of your original investment. The remainder of the portfolio
is allocated to a mix of share and property investments. While the value of
such funds may fall slightly over the short term, it is most unlikely that
this will continue over the medium or long term. Performance prospects for
stable funds are moderate.
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As well as being perhaps
the principal or sole source of your future income, superannuation may be
the single largest asset you may ever have, apart from your home- so it is
worth giving it some thought!
with DIY Superannuation (Do-it-Yourself) investment strategies register your
While the government makes
it compulsory for employers to contribute to their employees, super an amount
equal to 9% of salary. Employees can make additional contributions. These
can usually be deducted directly form your pay or bank account. Automatic
deductions make it easy to save. You do not see the money so don’t have
an opportunity to spend it.
If you have held
several different jobs, you may end up with many separate funds. Rolling all
of it together into one easy to manage fund can create a more focused investment
strategy, and just one set of fees. At EBS Financial Management Services PTY
LTD we can assist. Click here to contact us.
In a few short
years there is now more than 7$ billion wallowing in neglected superannuation
Securites and Investments Commission (ASIC) is holding $160 million in dormant
bank accounts, $45 million in unclaimed company shares and $23 million in
unclaimed life insurance policies.
Check your situation
EBS Financial Services can assist you to consolidate numerous superannuation accounts and retrieve
To request assistance
please contact us.
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Just as everyone
has different ideas about retirement, your financial plan should be individual
– yours and yours alone.
Future is a priority
Establishing a financial
plan for your retirement, however distant, should be a priority. Accumulating
the funds you will need to support you, takes time.
If you think it is too
hard to deal with, or too far in the future, you need to arrange a visit with
a Financial Planner. EBS Financial Services can assist you.
What and How
to a retirement plan is easier when you have some idea of the life style you
seek to enjoy. Therefore, you need to think about where you want to be and
what you want to do in retirement.
on paper the three things you most want in life, when you retire, can clarify
your ambitions. It is important to be realistic. Make plans that are achievable
and you will find it easier to work towards them.
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Whether we are employed,
self-employed or otherwise we are usually on the lookout for additional opportunities
that will improve our present circumstances, help us to achieve our goals
and fulfil our dreams.
We at EBS have been in
the business advisory field for over 30 years and have helped thousands along
the way to achieving their dreams.
In an ever-changing society,
opportunities are all around us sometimes we need help to recognise them,
get into the slipstream of that activity and reap the rewards.
We have opportunities
available. Click here to register your interest.
Some business opportunities
demand very little cash outlay. The success of any venture is mostly dependent
upon the input of time and energy.
For those on
fixed incomes in the present climate of devalued assets that are held in Mortgage
Funds- capital losses-diminished incomes, opportunities that require very
little capital outlay could be a savior.
Super investments have
deteriorated over the past three years with little hope of any marked improvement
in the near future.
Our Business Building
team at EBS can help and guide you along the way.
interest by clicking here.
- Life is what
we make it, always has been, always will be
- When you
get right down to the root of the meaning of the word “succeed”
you find it simply means follow through
- Some succeed
because they are destined to; most succeed because they are determined to
- If you wait
for perfect conditions, you will never get anything done
- Listen attentively.
Successful people are listeners
- Success is
the progressive realisation of a worthwhile goal or dream
- The size
of your success is determined by the size of your belief
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What factors should be
considered before making investment decisions?
has its own range of possible investment returns and level of risk.
When you make your choice, consider:
- How long
you will be investing
- The level
of returns that you are seeking
- The level
of short term volatility that you are prepared to accept
- The taxation
that you consult a licensed financial adviser and a taxation adviser to help
you determine the best mix to achieve your personal investment goals.
EBS Financial Services can assist you. Click to contact
& Performance Risk
involve a degree of risk. Investors should note that the performance of each
Fund is dependent upon the performance of the underlying assets of each Fund,
which can fall as well as rise in value. Investment returns are affected by
many continually changing factors, such as economic and legislative changes,
capital market fluctuations and investment management issues. These factors
can cause fluctuations in the unit prices and income distributions of each
Fund, as well as give rise to profits or losses on redemption of units.
The minimum suggested
time horizons and the risk profiles for each Fund are determined by an analysis
of historical performance of the respective underlying assets and take into
account each Funds investment objective.
The returns for
each Fund represent historical performance only and past performance is not
a reliable guide to future returns as future returns may differ from and be
more or less volatile than past returns.
Retiring is all
about living the lifestyle you are comfortable with, and doing the things,
you have always dreamed of doing. We can show you how structuring your investments
a little differently can help you and your partner enjoy your retirement.
By investing your superannuation in annuities or pensions, you could qualify
for a 15% tax rebate on your investment.
If you are single
with assets of at least $150,000 or a couple with $250,000 we can help you
understand, the new rules for tax and social security entitlements.
In meeting with
a financial Adviser, they will show you how to:
- Work out
how much income you need to live on
- Choose the
right investments to ensure your retirement income lasts as long as possible
the tax concessions and social security benefits you are entitled to
your investments so you still receive a government pension.
An adviser will
assess your situation and provide you with a personalised recommendation.
To learn how to maximise your retirement income, please contact
Gearing is the
use of borrowed funds in order to purchase an investment. Negative gearing
means that the cost of borrowings is not covered by the returns generated
by using the borrowed funds. For example, you have borrowed money from a bank
to buy a house for investment and the rental income from that investment is
insufficient to cover the interest and repayments on the loan and expenses
of maintaining the property on an annual basis. The advantage is that you
receive a tax deduction for the excess expenses, which reduces the impact
of the repayments on your cash flow.
borrowing that introduces the traps of borrowing. It is important that you
understand the following in relation to borrowing for investment purposes
for growth investments are generally a long-term investment.
rates may increase over the term of the investment, therefore creating a
greater impact on your cash flow.
should ensure that they could afford the full repayments to cover periods
where income from personal exertion may not be forthcoming.
- Ensure that
the loan you take allows for early repayment with minimal penalties.
will magnify your investment returns both positively and negatively.
will magnify your risk exposure to the investment markets.
- Your income
should be protected with salary continuance to make repayments should the
borrower fall ill or have an accident
- If in any
doubt separate advice should be obtained from your accountant.