PWM Pages - Dec 2020

We all know how hard it can be having enough money to do everything over the holiday period. Gifts, food, decorations, holidays, the list goes on. I’ve gathered together a few handy tips that might take the stress off. 
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Christmas Cashflow: How to Save Over the Holiday Period

By Caitlyn Benton

Kirk Jewell, a well renowned Financial Planner from the US, has a very good rule when it comes to spending over the Christmas period. “A good rule of thumb is to spend no more than 1% of your overall income during the holidays.” So, if your combined household earnings for the year come to $150,000, then you should spend no more than $1,500 during that period. Four Gift Rule: You may or may not have seen this one floating around over the last few years. But this is a great rule especially for young families. Something they want, something they need, something to wear and something to read. I really like this one because it’s also a very ethical way of buying gifts for small children.

Now, it’s all well and good to have these rules in place during the Christmas period, but we all know it’s hard when push comes to shove. So, try creating a Christmas Fund. An account you contribute to each week, and build up some funds you can use at Christmas time, to avoid holiday debt.

A Look Back at 2020: Stock Performance Since COVID-19

In late February 2020 the Australian Share market hit heights never seen before and then just one month later had lost 40% of its value. COVID-19 hit equity markets around the globe as quickly as the virus spread. The immediate impact from COVID-19 is the lower spread from investing in short-term securities and an inability to reduce deposit rates further given already low levels. Reductions in borrowing costs will significantly pressure margins. A longer-term issue is the likely rise of bad debts and its impact on bank capital.

Since the lows of March the Australian Share market has recovered around 38%, but many companies with travel, airlines, property and some of the banks as their business are yet to recover fully. The Australian Dollar is also up nearly 10% for the year and Gold up 24% on the year.

"What goes up, must come down" - Isaac Newton

Planet, People, Profit: Sustainability Event Coming March 2021

We will be hosting a sustainability event on the evening of March 25th 2021 at Ground stone here in Orange NSW. It will be named, ‘Planet, People, Profit’. This event will be about informing people that their superannuation money may be being invested in unethical companies. We want to help people understand that you can not only have a say on where your super money is being invested, you can actually choose to have a Responsible Investment Plan.

We hope to make people more aware of the funds out there that invest exclusively in companies providing solutions to sustainability challenges through the products and services they provide. We are looking to not only promote these sustainable funds, but also provide people with information on how to be sustainable in the workplace, or day-to-day life. We are also hoping to have a selection of stalls ran by locals, showcasing sustainably made products, such as sustainable cleaning supplies, sustainable beauty and sustainably made food and beverages. We will have a few presentations from sustainably focused fund managers, presenting real data and real sustainability solutions. If you or someone you know may be interested in partnering with us, give us a call. We would love to have a few awesome local heroes showcasing their sustainably made goodies.

Message from Rose

I want to thank all of our wonderful clients who I saw this year. 2020 wasn't easy but we got through it. We will be out of the office from the 18th of December until January 12th.We will have limited access to emails over the break, but we will get back to you as soon as we can. Thanks again to all clients, old and new. Merry Christmas and Happy New Year.

Rose Hodgins,

Senior Financial Adviser.

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