PWM Pages - Jan 2021

I think we can all agree that 2020 was an interesting year to say the least. If you are amongst the millions of Australians that had an overseas holiday cancelled last year, you understand what I mean.

2021 Vaccine Scheme: Can We Travel This Year?

By Caitlyn Benton

I think we can all agree that 2020 was an interesting year to say the least. If you are amongst the millions of Australians that had an overseas holiday cancelled last year, you understand what I mean. Australians love to travel, it’s apart of our national identity and something we are proud of. It’s estimated that the Australian tourism industry lost $55 billion in 2020.  A number this nation hasn’t seen since our last economic crisis in 2007-2008. 

I think all of us were holding on to the fact that we would be travelling again in the New Year, however that may not be the case. Despite a large upcoming vaccination scheme, scientists are still unsure whether the vaccine will be effective in slowing the spread of COVID-19. Scientists told The Sydney Morning Herald and The Age that the international border would have to remain largely closed because of the risk of travellers spreading the virus even after having the vaccine. 

Health Department Secretary Brendan Murphy warned against forecasting beyond three months during the pandemic, he said “the answer is no” when asked on ABC TV if there could be widespread overseas travel this year.

“The answer is no.” – Brendan Murphy

Assets for Life: Why an Investment Strategy Works!

No matter how old you are, it is important to think about what your plan is when it comes to retirement. Your Super should only be one part of your long-term strategy for retirement. 

Have you considered an investment strategy? If your budget shows it is appropriate for your situation, investing can help you achieve even greater goals. Investing can not only be affective for achieving long term goals but can give you immediate tax advantages. 

Before choosing an investment strategy, it’s important to consider these aspects things.

  • How the investment works.
  • How it generates a return and the type of return expected (capital gain or income).
  • The risks involved for the investment.
  • The fees and charges for buying, holding and selling the investment.
  • How long you should invest to receive the expected return.
  • Legal and tax implications of the investment.
  • How the investment will contribute to your diversified portfolio.

Once taken these aspects into consideration, you will then want to decide how you want to invest and if you feel comfortable doing it yourself, or if you want to pay a professional to do it for you. Both options have pros and cons, you can of course do both. 

The advantage of investing yourself is that you are in control of all the decisions. It can also be cheaper than paying someone to invest your money. The risk is that you may overrate your expertise and may not diversify.

When you use a professional, you benefit from their skills and knowledge to make investment decisions. But you have to pay fees for this service. These can include management fees, administration fees and entry and exit fees.

A financial adviser can help you set your financial goals, understand your risk tolerance and find the right investments. If your goal is to save for retirement, contributing more to super is generally the best way to do this. 

Welcome to 2021: Money Moves in the New Year.

Welcome to 2021. A year that somehow feels promising, we feel motivated this year because last year was so far from anything we as a nation have seen before. A lot of people lost money in 2020, some made money, but if you were one of the people who took advantage of the COVID-19 Super release and have withdrawn money from your super, how can you make that back?

Salary Sacrificing: Those words may sound scary, but putting in as little as $20 out of your pay per week, can not only grow your super but you can actually save on tax. 

After tax payments: If you make payments to your Super after tax, you may be able to claim part of that back with your tax return.

Investments: No matter what Super fund you are with, your money is being invested to create wealth and grow. If you actually look into it, there are different options for investing for different types of people. You can do it yourself or pay a professional to create a diversified portfolio for you to grow your Super.

Message from the Team

This month, the tragic and sudden passing of Mason Pollack has widely effected the Orange community. Mason was a kind, loyal and genuine young man who was a great mate to many. Our hearts go out to his friends and family in this difficult time. Rest in Peace, Mason.

Pwm Team.

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