The PRWIRE Press Releases https:// 2019-03-25T22:00:07Z Investment Property Acquisition CGT Tax Accountant Aged Care Kingsgrove Sydney 2019-03-25T22:00:07Z investment-property-acquisition-cgt-tax-accountant-aged-care-kingsgrove-sydney Calculating the Cost Base for CGT Deductions for Investment Properties There is generally great excitement when a rental income property is bought. The new owners have all kinds of plans, and sweet dreams about the extra income it’s going to earn. However, somewhere down the line the property will be sold, and the seller will be confronted by what the tax man euphemistically calls a “Capital Gains Tax event”. If it sounds pretty intimidating, don’t worry, as it’s fairly simple as property tax and acquisitions expert, Matthew Mousaof TLK Partnersexplains. "The profit or loss realised from the sale of a property is the “event”, and could be subject to Capital Gains Tax or CGT as it is referred to. Although CGT is a whole different ballgame, capital works deductions made now can affect the calculations needed for CGT when the property is sold." Deducting the deductions When calculating a Capital Gains Tax profit or loss after the sale of a property, the cost base or reduced cost base is the starting point for calculations. The final, or adjusted, cost base used must exclude any deductions already claimed, or could have been claimed, for capital expenditure. There are two conditions attached to this exclusion: The property was acquired after May 13, 1997. The property was acquired before May 13, 1997, but the money was spent, which gave rise to a capital works deduction after June 30, 1999. How does this work in practice? “Let’s say that you bought a rental property in 1998 for $200 000, and you sold the property in 2017,” Matthew explains. “The cost base in 2017 is calculated at $210 250. However, during the time you owned the property you claimed $10 000 in capital works deductions. You will have to deduct the $10 000 you claimed, to arrive at a new cost base for calculating your Capital Gains Tax. Your new cost base would therefore be $200 250.” Limited recourse debt arrangements If any part of the capital expenditure on capital works deductions was financed by a limited recourse debt, which includes certain hire purchase or instalment sale agreements, excessive deductions for capital allowances has to be included as part of assessable income. But this only applies if the debt was terminated, or wasn’t paid in full. Anyone unsure of what constitutes a terminated recourse debt arrangement, and its implications for assessable income, should consult a tax consultant for clarification on CGT, and any other tax implications of investment property, as it could have far-reaching effects on tax obligations. "Many property investors have been caught out and surprised about CGT triggered by a sale of an asset because they failed to understand CGT fundamentals," Matthew concludes. TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviserare wealth and taxation advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media; the Market Influencers. Expert Aged Care Property Acquisition Tax Advice Accountant in Kingsgrove Sydney 2019-03-24T23:00:49Z expert-aged-care-property-acquisition-tax-advice-accountant-in-kingsgrove-sydney Tax impact of Buying or Selling Second-hand Depreciating Assets Buying or selling second hand assets can cause headaches at tax time. TLK Partners’ property acquisition specialist, Mr Matthew Mousa, offers insight into how to handle these situations, and what effect they have on tax obligations. Tax deductions on depreciating assets Matthew compares dealing with tax deduction claims on long-life assets to finding one’s way through a labyrinth, even when dealing with new items that will help generate rental income. Yet getting through this maze can become even more complicated, he says, when other factors become involved, like the disposal of a depreciating asset. Basically, a depreciating asset is one which has a long projected lifespan as an effective asset in generating income. Deductions against income, originally based on the asset’s initial cost, are spread over a period of years on a sliding scale schedule. This scale takes into account the asset’s dropping value and shortening lifespan as an income generator. Disposal of a depreciating asset When an asset like this can’t (or won’t ever again) be used to facilitate rental income, its tax position as a depreciating asset changes immediately. “Because it is no longer involved in generating an income, it doesn’t count as a deduction on your future tax returns, and therefore stops playing any part in determining future taxes,” Matthew explains. But it can’t just disappear off a return before the books on its tax history, including any remaining depreciation value, have been balanced and closed. There are various ways in which an item like this could have been “disposed” of. The most obvious is that it has been sold, lost or destroyed. A homeowner may have planned to use the asset to generate rental income, and then decided against it; cancelled its installation; or changed the way he uses it, so its sole purpose is no longer generating a rental income. An asset may also have to be “disposed of” if it was considered while in a partnership, but the use of the asset, or the nature of the partnership, has changed since then. “All these reasons are valid ones for its disposal in terms of tax. The bottom-line is that you must be able to affirm that you do not expect to ever use it again for its original purpose,” Matthew says. Balancing adjustment event To change the asset’s status somewhere down the line, when the depreciation process has not been completed, requires levelling the scales on what’s gone out and what’s come in with regard to that asset’s disposal. This involves creating a “balancing adjustment event” on a tax return. To do this, the following steps need to be taken: Work out what value of the depreciating asset remains unclaimed. This becomes the balancing adjustment value. Then take selling price of the depreciating asset, or termination value if it was scrapped, and compare it with the adjustable value. If the termination value (sale price) of the asset is greater than the adjustable value; the difference between the two becomes a form of income which has to be added to assessable income along with income from other sources, including rent. However, it is not included as part of the rent, but instead listed under “Other Income” on a tax return. If the adjustable value is greater than the termination value, deduct the difference on the current return. Purchase of second-hand assets When purchasing a second-hand asset, its price can generally be claimed, in the same way as the cost of a new asset would be claimed for, and subject to the same conditions regarding its projected life-span and purchase price as are applied to new assets. However, if second-hand assets form part of package when a rental property is bought, there are some steps that need to be taken to separate them from the rest of the package. The depreciating assets that come with the rental property must be separated from the price of the property itself based on reasonable values determined by both seller and buyer, and specified as part of the sale agreement. If they aren’t specified, a reasonable cost will have to be determined by the homeowner. If unable to do so, a qualified evaluator will have to be called in. Whichever way it’s done, the owner must be able to show a firm basis for establishing the value. "Sound taxation advice and planning can save heartache and financial surprises," Matthew concludes. TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. NSW Wealth Management Age Care Financial Planning Property Acquisition Services TLK Partners' Property Acquisition Expert Matthew Mousa 2019-03-24T22:00:40Z nsw-wealth-management-age-care-financial-planning-property-acquisition-services-tlk-partners-property-acquisition-expert-matthew-mousa Property Owners’ Claim Borrowing Expenses At Tax Time While some rental property expenses can be claimed straightaway, there are a number of expenses which are only deductible over a number of years. Matthew Mousa, Partner and Adviser with TLK Partners, tries to ease your way through the minefield of these sorts of tax claims. The tax laws regarding rental property have changed recently, and it’s important that investment property owners get to understand the new regulations. What expenses are deductible over a number of years? Borrowing Expenses are one of the three different types of expenses that the tax man expects you to deduct over an extended period of time. The others are the Depreciation of Assets and Capital Works Expenses. Borrowing expenses There are certain unavoidable expenses that you will have to pay when you borrow money to purchase an investment property for extra rental income. To start with, you will have to pay the institution that lends you the money for establishing the loan, and you will also have to pay a fee to the mortgage broker. You’ll also be charged for the lender searching for the title deed. Then the lender will send a building inspector to inspect the property and make a valuation. This expense will also be your responsibility. That’s just the start: Preparing and filing the mortgage documents requires stamp duty on the documents, and the expense of this will be yours to carry. And, believe it or not, the lender’s mortgage insurance is also for your account. These are all classified as borrowing expenses that are deductible over a number of years. What borrowing expenses are not deductible? The insurance you are required to take out to cover your mortgage in the event of your death, disability, or unemployment. The Interest the lender charges you. The Stamp Duty that’s charged on the transfer of the property. This is not to be confused with the stamp duty on the mortgage documents, which is deductible. Certain rules govern the deductions If your total borrowing expenses are less than $100, you can claim the total amount in the year you took out the loan. However, if your total borrowing expenses are more than $100, you will have to deduct them over five years, or the length of the loan agreement, whichever is shorter. This means, if your loan is repayable over three years, the deductions are calculated over three years, and not five years. If you repay your loan earlier, you are allowed to deduct what’s left of the borrowing expenses in the year that you repaid the loan. If you took out the loan during your first income year, you can only claim a proportional amount of the borrowing expenses you would normally claim for a full year. If you took out the loan, say, three months into the new tax year, you would only be able to claim 75% of what you would claim the next year, and every year thereafter, until the three or five year term is completed and the loan is paid off. The same proportional calculation will be necessary in the final year. TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Financial Wealth Management Property Acquisition Accountant Kingsgrove Reveals Renovation ATO Tax Benefit 2019-03-22T22:00:40Z financial-wealth-management-property-acquisition-accountant-kingsgrove-reveals-renovation-ato-tax-benefit Renovations Help you Up the Rent Says TLK Partners Property Expert Matthew Mousa Well-kept properties can result in better rent, but owners shouldn’t over-spend on renovations. Property Acquisition specialist Matthew Mousa of TLK Partners advises on improvements that will be both easy on the budget, and show extra return on investment. Some rental property investors might be unsure of where and how to invest renovation dollars for maximum return. “As a property investor myself, it’s easy to spend a fortune and over-capitalise on the property,” warns Matthew. “Rather invest in cost-effective upgrades on key areas, known to attract tenants. Not only will you draw people who are prepared to pay a little extra, but they are also more likely to care for it during their stay.” Bathrooms and kitchens are two of the major areas – one represents the heart of the home, because it is where food and nourishment originate, while the other is a haven for relaxation and de-stressing. These two rooms could easily become a ‘wow’ factor. However, most importantly, they should be spotless, and leave a squeaky-clean impression. Sprucing Up The Kitchen Representing the heart of the home, a tatty kitchen will turn away potential tenants. It should be spotless, and leave a squeaky-clean impression. A full-blown kitchen renovation is a costly exercise, but there are ways of improving the space and creating a ‘wow’ factor without blowing the bank. Matthew recommends looking at and changing the small details. Add a splash back behind the stove or sink or replace the existing ones with fresh tiles. Splash backs serve a double function in protecting the wall from damage, but can also be a striking feature with clever tiling choice. Do the counter-tops and cabinet doors look tired? A granite top will make an impressive feature, while new doors with fresh hinges and modern handles will transform old cupboards. Another practical improvement is the addition of clever lighting, to brighten the space and improve its function. Cleaning Up The Bathroom “Keep good design and classic style in mind when you consider renovating the bathroom of the rental property,” advises Matthew. He warns against overly-modern or trendy fittings as they can easily date in a few years’ time. Owners could, however, add contemporary touches with modern towel bars and vanity shelves. Once again, the importance of a brilliantly clean look cannot be overemphasised. Light Up With Flair Dark and dingy is a definite no-no if you are looking for a higher rent. Apart from lights being an expression of style, it is most important that your rental property is well lit. “Remember to open blinds and switch the lights on where necessary when you’re showing the property, as light and airy looking properties hold much more appeal,” says Matthew. Lighting and light fittings can create ambiance in any room, and the variety of styles of lighting available is infinite. It can be used to create any look and feel of your choice, from rustic to industrial. Just be careful not to go too way out there – tenants want to add their own personal touches to make the rental property their home, and they don’t necessarily have the same taste in décor as the owner does. So choose something functional, classy, tasteful and fairly neutral. When faced with dark corners or rooms, skylights or installed windows are a wonderful source of light and sun, and can often make all the difference in bathrooms and kitchens by lighting them naturally. Choose energy efficient long-lasting lighting, not only to reduce tenant’s electricity bills but also to care about the environment. Happy Tenants Stay Longer Renovating rental properties from time to time not only holds the bonus of collecting more rent each month during the tenant’s lease period, but could save other costs in the long run. "Remember, if tenants love their home, they will stay longer, so investors will save on advertising and screening costs. It really is best to show it off the property its best light," Matthew concludes. TLK Partners are real people just like you with hobbies like property investment; Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Sydney Investors Aged Care Financial Income Protection Tax Expert and Wealth Planner Matthew Mousa From TLK Partners 2019-03-22T21:00:07Z sydney-investors-aged-care-financial-income-protection-tax-expert-and-wealth-planner-matthew-mousa-from-tlk-partners Part-Year Rentals Affect Property Investors Tax Claims Says TLK Partners Expert Matthew Mousa Tax rental income statements record every dollar received on investment properties, but it doesn’t reflect how many dollars an investor actually takes home. Rental property investors, will have had to settle a lot of bills in order to receive the dollar bills listed as income – without doing so, they would have received a lot less. But what happens if an investment property is only rented out for part of the year? TLK Partners’ property specialist, Mr Matthew Mousa, looks at the tax implications. Sam and Jane were looking for tenants, but made it way too difficult for anyone to rent their property. They asked for references even for short term tenants, and barred children and pets. And they also demanded final approval, despite advertising their premises through an agent. To top it all, not one prospective tenant earned that approval. In Steven and Sally’s case, they advertised their “rental” through an agent, but restricted it to being only available outside school holidays, when there was no demand for renting a property in a remote location with difficult access. They also had no tenants during that year. Both couples had their expenses claims rejected immediately by the tax office. “If the Australian Tax Office has cause to believe the property was not truly ‘available to rent’, it will not sanction expenses claims, because owners made it too difficult for tenants to rent their property,” Mousa warns. “While it is sometimes hard to believe it, the tax authorities are trying to play fair – they only want their share of the rental money you have actually pocketed.” But they want investors to play fair, too, by claiming deductions only on expenses directly related to earning it. So expenses that investors incurred for personal use of the house don’t cut it as far they are concerned. Every homeowner has expenses running their properties and they can’t claim them against tax. The overall principle is that investors can only claim expenses with regard to costs while your property was actually rented out, or while real intention was being shown to make an income out of the property, which is when, as tax authorities term it, it was genuinely “available to rent”. Stating entire income and then claiming the costs of earning it, changes the gross income to a nett income, giving a far more valid picture of what profit was made, not just your bank account balance. It is from this final clean figure that the tax authorities slice their share of the pie in the form of taxes, Mr Mousa explains. However, the final figure changes, because the claimable expenses do, if a rental property does not operate all year through. The taxman also accepts that there are good years and bad years for rental property owners, when they simply don’t have many tenants. Yet, as an owner, investors go on having expenses involved in trying to attract tenants, so some expenses involved are still claimable even when rental income is low. Apportion Expenses If either of the above couples had indeed managed to land a tenant, even for a short period, they would fall into the category of those rental property owners who have to apportion expenses according to how much of the year the premises were rented out, or were honestly available for rent. Joining them are owners who openly rent out their houses for a short period of the year, using it themselves the rest of the year, and those who do the opposite, using it themselves for a short holiday, and making it available for rent the rest of the year. Any expenses that come up while used personally or by friends are enjoying the property privately, can’t be claimed. So these taxpayers will also have to do apportionment claims. Apportionment means that those costs directly tied to rental income can only be claimed in proportion to how much of the year tenants helped you generate it. If tenants rented your property for 35 weeks of the year, the expenses would be multiplied by 35/52 to determine the claimable share of the year’s expenses. Some Exceptions To The Rule Exceptions are those expenses brought about during the course of the rental process. These include estate agents’ commission, advertising for tenants, phone calls to fix damage tenants caused, and the cost of removing any rubbish they left behind. Matthew Mousa is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Aged Care Property Investors and Financial Wealth Acquisition Tax Expert Mathew Mousa From TLK Partners Kingsgrove 2019-03-20T21:00:18Z aged-care-property-investors-and-financial-wealth-acquisition-tax-expert-mathew-mousa-from-tlk-partners-kingsgrove Private Investors Property Income Has Tax Implications Whether in money or in kind, anything investors are given that’s linked to their rental property, is considered to be income, and the Australian Taxation Office wants to know about it. Property and tax expert TLK Partners’ Matthew Mousa runs through some of the less well-known forms of “rental income” from the Australian Taxation Office. So for tax purposes, rental income only refers to a tenant’s weekly or monthly cheque, right? Wrong, says Matthew. “If investors are renting out a property to earn a return on their investment, any payment received is considered part of their income, whether cash or in kind. And what comes in, must go out – in the form of information on your tax return.” Disclosing straight-up rental payments is par for the course, but what are the other forms of income associated with a rental property? These equally relevant, but less obvious forms of rental income are the ones to be mindful of, he cautions. Payments in kind If an investor let young Joe live on their rental property for free, as long as he keeps the garden looking good and the swimming pool clean, as well as doing small maintenance jobs, their tax situation could be complicated, Matthew explains. The same applies when someone like Chloe, who has parents on a farm, agrees to pay part of her rent in fresh potatoes. Or perhaps Sam, who’s in the premier league, gives the investor season tickets for rugby, in return for accommodation. According to the Australian Tax Office this "income" must be disclosed in these instances. “Investors will have to put a market value on any of these, from the rental value of Joe’s accommodation, to what the spuds or season ticket would have cost and add it to the rental income. Investors may be entitled to deduct some of the young man’s “rent” in terms of the legally deductible parts of the services he performs. But as far as income goes, his “rental” does need to be included to balance the tax books.” Bond monies and tenant insurance pay-outs If investors keep part of a tenant’s security bond because they didn’t pay the rent, or because you have had to repair damage after a tenant moved out, it classifies as income. The same applies if insurance company pays out for rental lost because a tenant left. Reimbursements There are times when the investor receives money in lieu of damage to get repair work done to their property. "If a tenant gives money towards the cost of the repair, again that money must be recorded as income," Matthew says. "This is especially important if the investor wants to claim the repair cost as a deduction," Matthew continued. Government rebates The same principle applies for rebates as it does for reimbursements. If the investor installs a solar system to supply hot water, for instance, the government may provide a rebate. “As the solar system is a depreciating asset for which the investor will want to claim tax relief over a period of some years, they can’t claim for the entire value, if they didn’t actually pay the full amount because of the rebate received,” Matthew says. When the amount claimed exceeds the amount spent In some more complicated cases, as with limited recourse debt arrangements, financing, refinancing and notional loans, investors may not end up paying the full cost of the initial capital expenditure either. However, they may well want to claim deductions for this expenditure on a depreciating asset. In a similar way to the rebate situation, they could end up claiming for money they have not spent. The unpaid section has to be recorded as income, in order to balance a claim for the full expenditure. TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Bauer Signals Major Campaign Against Sexually Transmitted Debt and Female Financial Abuse 2019-03-07T23:14:45Z bauer-signals-major-campaign-against-sexually-transmitted-debt-and-female-financial-abuse Bauer Media, Australia’s leading multi-platform publisher, has today launched a major campaign designed to empower and educate the nation’s more than 12 million women about their personal finances and financial abuse. According to research based on the Australian Bureau of Statistic 2012 Personal Safety Survey 15.7% of women had experienced economic abuse in their lifetimes with the risk of economic abuse peaking at 20.9% for women between the ages of 40 and 49. The campaign, entitled Financially Fit Females, will be run across Bauer’s 36 media brands, including ELLE, Harper’s Bazaar, The Australian Women’s Weekly, and Woman’s Day with a combined readership of some 7.5 million. At a breakfast in Sydney to celebrate International Women’s Day, Jane Waterhouse, General Manager of Bauer’s Story 54 said that the campaign is centered around one of the most serious problems facing many Australian women; not having full control and understanding of their finances and how this can lead to financial and economic abuse. “This campaign will sit at the heart of Bauer’s activist agenda over the coming year and into the future,” Ms. Waterhouse said. The Financially Fit Females campaign will drive 1 million actions to increase understanding and educate women around key issues: Financial and economic abuse; what it is and how to recognise it Savings and investments Maximizing super Being paid appropriately Navigating separation and divorce Anna Bligh, CEO of the Australian Banking Association, acknowledges Bauer’s Financially Fit Females campaign is an important initiative. “Helping women to fully understand and be informed and confident in their financial decisions is important and will go a long way towards addressing the many issues associated with female financial abuse”, Ms Bligh said. According to last year’s Melbourne Institutes HILDA survey, Australian women are much less financially literate than men with 85 percent of women under 35 not fully understanding “fundamental investment concepts”. Bauer’s finance editor Effie Zahos said, “Women are just as much a part of our economy as men, but many still seem to have a poor understanding of important financial concepts and activities. “The way a woman deals with savings, superannuation, separation, the gender pay gap and other significant issues can spell the difference between living a financially comfortable life or not.” Womans Day editor-in-chief Fiona Connolly said major problems could emerge when a woman does not understand her finances and more significantly leaves their management to a partner. “The situation can become dire for older women whose partners take control of their joint finances, leading to women being forced to live in domestic poverty and suffering from financial abuse. “The facts are that financial abuse is highly gendered with more than 15 percent of women experiencing financial abuse often in romantic relationships. “Sexually transmitted debt and inappropriate financial affairs are very real problems for tens of thousands of Australian women,” Ms Connolly said. Mr Paul Dykzeul, Bauer Media CEO said the Financially Fit Females campaign will build on Bauer’s successful participation in the community push last year to have the GST on female sanitary products, aka “the tampon tax” removed. “What is now clearer than ever is that a concerted media campaign by a publisher like Bauer around significant women’s issues can have an impact and force real change. “At Bauer we make no apology for fighting hard for the things women value and we look forward to whichever political party forms government after the election joining with us to drive education for women around their financials,” Mr Dykzeul said. Further facts on female economic abuse: The life-time prevalence of economic abuse for women is 15.7%, while for men it's 7.1 % Women are less likely to be involved in financial planning, acquiring and managing long-term investments The risk of economic abuse peaks between the ages of 40 and 49. In this age group, 20.9% of women and 10.3% of men reported economic abuse. Among women who have sought help from domestic violence services, the prevalence of economic abuse ranges from 78% to 99% Women were more likely to have a history of economic abuse if they were separated or divorced; had a lower levels of education; were unemployed; or lived in households with second and lowest income quintiles. Banking, savings and investments. – Women are less likely than men to have investments and have 20% less in savings and investments (Source: Roy Morgan) Source: Roy Morgan Single Source, Dec 18. Total unduplicated Bauer network. Superannuation Tax Estate Planning Private Wealth Financial Planning Sydney TLK Partners 2019-03-06T22:00:26Z superannuation-tax-estate-planning-private-wealth-financial-planning-sydney-tlk-partners Tax hikes and changes and an ever-rising cost of living paint a gloomy financial picture for all Australians. But it’s even more dismal for current retirees, and those looking at leaving the workforce soon. TLK Partners financial planner, Len Elias, says finding ways for them to keep financially afloat for the rest of their lives is becoming increasingly difficult. And it seems like Superannuation can’t do it alone. How Superannuation Works Australian Superannuation is often considered one of the best government retirement programs globally. Since 1992, it has entitled Australians who earn over $450 a month (before tax) to a mandatory Superfund contribution from their employers for their retirement. The current contribution rate is 9.5% is calculated according to ordinary time earnings, and employees are encouraged to boost it with their own salary sacrifice. Superannuation funds are accessible at 60 (the Commonwealth preservation age) for those who retire permanently, or at 65 for those who still want to work. The funds can be accessed as a lump sum or as an annual pension payout, but many Australians are not rushing to do so. Financial concerns have led to increasing numbers of Australians over the age of 45 are putting off retirement till 70 or later. How Super is the Annuation Fund? ASFA, the Association of Superannuation Funds of Australia claim that, on average, during the 2013/14 financial year, men had a balance of a little under $300,000 in their fund at retirement age. Women had less than $150,000, and households averaged around $355,000. Since then stock markets have been both bearish and bullish, inflation has risen and not come down, and there have been changes in the tax situation. By the 2015/2016 year those average balances had dropped to $270,710 for men and risen to $157,049 for women. These averages fall far short of the 2018 figures AFSA suggests as reasonable starting balances for retirement when, and only when, retirees own their homes. The association puts the amount a single person would need to enjoy a comfortable lifestyle at $545,000 , and couples at $640, 000. And it claims $70,000 should provide a so-called modest retirement assuming that the state’s Age Pension and other supplements take care of most of the usual expenditures. But for how long? How Long Will Your Super Last? AFSA’s calculations set couples’ living costs at just under $61,000 a year, and singles at a little over $43,317, for what AFSA dubs a “comfortable” lifestyle. This allows for some extras like home maintenance and small improvements, as well as an occasional holiday, and it takes into account that retirees’ lifestyles change as they age, and expenses shift from activities and vacations to medical and caring needs. But with that annual budget, the balance AFSA recommends for retirement will see a single retiree’s funds run dry after about 12 years, and that of couples after just over 10 years, if not bolstered by partial Age Pensions or other investments. Len Elias pointed out covering the 22 years between retirement at 60 and the Australian average life expectancy of 82 years, it would appear opening balances would therefore have to sit at over $1,28 million for couples, and about a million for singles. In the so-called modest category, which allows for basics only, the recommended starting capital of $70 000 will only fund the calculated singles’ budget of $27,648 for 2,5 years, and the couple’s $39,775 for less than two. Fortunately, a full Age Pension (just under $24,000 a year for singles, and a combined $36 000 for a couple) would stretch the balances, should the retiree be eligible for it. Clearly, while it provides a base which could support a tightly-budgeted retirement in the short term, planning and saving is needed to stretch that funding over what could be a long retirement. Len Elias is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Mortgage Broking Industry Findings Effect On Investors Aged Care Financial Income Tax And Wealth Planning By Financial Expert Len Elias of TLK Partners Sydney 2019-03-01T22:00:06Z mortgage-broking-industry-findings-effect-on-investors-aged-care-financial-income-tax-and-wealth-planning-by-financial-expert-len-elias-of-tlk-partners-sydney Mortgage brokers have been accused of using scare tactics after the industry warned the banking inquiry’s sweeping ban on commissions would lead to higher costs for borrowers, and big rewards for the culprits in this story, the banks. In the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry’s report, Commissioner Kenneth Hayne QC took aim at “trail commissions”, a form of ongoing payment made by the lender to the mortgage broker for the life of the loan, describing it as “money for nothing”. One of the fundamental rules he set for the entire system is to get rid of commissions, starting with the mortgage broking industry. Trail commissions will be banned from mid-2020 but the government stopped short of accepting Mr Hayne’s recommendation for a ban on upfront commissions as well. It believes banning the up-front fees will drive people away from brokers, and this in turn will erode competition and strengthen the hand of the big banks. Labor says it will act on every recommendation if it wins the upcoming election. Australian financial expert, Len Elias of TLK Partners explains that mortgage brokers receive an average up-front commission from lenders of about 0.65 per cent of the loan value and a trailing commission of just under 0.11 per cent of the loan outstanding per year for the life of the loan. This amounts to about $4,100 for the mortgage of an average loan of about $357,000, he says. Those applauding the industry changes point out that current arrangements create incentives towards recommendations not necessarily in the consumer’s best interest. Brokers should offer advice on how to compare loans and help clients make sound decisions, but that’s not what many consumers get, industry watchdogs argue. It’s also been pointed out that loans through mortgage brokers, which make up around 60 per cent of the total, typically involve higher leverage, are more often interest-only and are more likely to slip into default. The entire $2.1 billion industry will ultimately be forced to move to a fee-for-service revenue model, where the borrower pays the commission to the broker instead of the bank. The Finance Brokers Association of Australia responded strongly to the outcome, saying it would lead to huge unintended consequences for home loan borrowers and would simply put more power in the hands of the banks. The markets echoed this sentiment: while shares in CommBank, NAB, ANZ and Westpac surged at the news, shares in Mortgage Choice plummeted more than 25 per cent. The concern is that that the proposed changes will drive buyers back to the major banks, cut access to smaller lenders and reduce consumer choice. It is estimated to save major banks about $1.6 billion in annual commission payments, but could also cost thousands of brokers their jobs. As it is, they’re bracing for the biggest shake-up since the Campbell Report 30 years ago. Brokers account for about 59 per cent of deals and make more than $2.2 billion in annual commissions. There are currently about 25,000 small businesses and people working within the mortgage broking industry. Consumers, on the other hand, will have to pay an up-front fee, although a recent survey of 5800 borrowers indicates 96.5 per cent of customers are not willing to pay a broker a fee of $2000. In fact, most are unwilling to pay anything at all. Even so, 96 per cent indicated that they were happy with their broker’s service. “It puts the whole industry under a cloud,” says Mr Elias. “And astonishingly, the banks, who were the biggest culprits at the Royal Commission, are the winners in this scenario.” Len Elias is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Companywebsite, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Impact Of ALP Tax Change Proposals By Aged Care, Estate Planning and Private Wealth Management Accountant Financial Expert Thomas Mousa of TLK Partners In Sydney 2019-02-24T22:00:01Z impact-of-alp-tax-change-proposals-by-aged-care-estate-planning-and-private-wealth-management-accountant-financial-expert-thomas-mousa-of-tlk-partners-in-sydney Impact ALP Tax Change Proposals The impact on retirees of Labor’s proposed removal of franking credits for superannuation funds, reduction in capital gains tax discount and the removal of negative gearing In a crackdown on what it views as an unsustainable advantage for high-income earners, the Australian Labor Party will introduce reforms to tax laws on 1 July 2019 if wins the next federal election. These reforms, which include the removal of franking credits and a reduction in the capital gains tax discount, will affect about 8% of taxpayers and about 200 000 self-managed super funds. It is already sparking protest from groups disproportionally affected by the changes, most notably wealthy retirees and the super lobby. Removing franking credits Australia’s dividend imputation system allows investors to claim a tax benefit, a much-valued and relied-upon boost to their total return. This is particularly relevant for retirees, as it supports retirement spending increases of up to 6% or the equivalent of a higher balance at retirement by 8%-9%. Allowed to transfer their superannuation into a retirement savings account, tax-free up to a balance of $1.6 million, imputation credits increase the after-tax value of a fully-franked dividend by 42.8%. The proposed Labor reforms could potentially end, or at least limit, access to imputation credits for Australian retirees. Dividend imputation has existed since 1987, but refunds on excess franking credits only started in 2001, at a cost of $550 million. It has subsequently increased to more than $5 billion a year, an amount the ALP believes is excessive and detrimental to the average Australian. Introduced by Keating in 1987, dividend imputation prevents investors being double taxed, once at the company level and again at the individual level. The Howard government then enhanced the scheme by allowing individuals and super funds to claim cash refunds for any excess imputation credits not used to offset their tax liabilities. Labor intends to return to the system introduced by Paul Keating. Critics view the dividend imputation system as favouring domestic companies and shareholders and as too generous compared to other countries. However, tinkering with the taxation of super yet again after 2017’s tax reforms, could be having a negative impact on client confidence and the stability of the system. It could also impact Australian businesses, according to Thomas Mousa, Business Services Partner at TLK Partners, as these cash refunds incentivise people to invest locally. “Ending them could see super and self-managed super funds pulling their investment from Aussie companies in favour of better returns elsewhere.” The impact that restricting access to franking credits would have on retirees is probably underestimated, Mr Mousa adds. “It is likely some people will have to re-prioritise their retirement goals or accept a lower quality of life in retirement due to lower income from their investment portfolio. Professional advice on how to minimise potential income loss is critical.” Reduction in capital gains tax and negative gearing Claiming current concessions are stacked in favour of the wealthy and not supportive of investment in new housing, the Labor Party has updated its policy on negative gearing and capital gains concessions. The key components of the ALP’s policy are a proposal to limit negative gearing to new housing and reduce the capital gains tax discount from its current 50% rate down to 25%. Investments made before the implementation date or by superannuation funds, and assets of small business owners, are exempt from this change. As it stands, capital gains can be offset against previously incurred but unused capital losses and against losses incurred in a particular fiscal year. Individuals and trusts are also entitled to a 50% discount on the capital gain amount providing they have held the asset for more than year. Negative gearing is when an investment property’s net rental income (after deducting expenses) is less than the interest on the borrowed funds. While common for property investing, negative gearing can also be used for other financial instruments such as shares and bonds. The loss is claimed as a tax deduction against other income. On face value, the policy seems advantageous to mature investors who may have a combination of positively and negatively geared properties, whereas most working Australians with one negative geared property will miss out. Surveys indicate that about half of Australians are worried about their finances, yet the vast majority has never received any professional advice. “If you are concerned about the impact changing tax laws might have on your investments and retirement income, seek help,” Mousa urges. “Understanding what you’re up against is the first step in making the right financial decisions.” Thomas Mousa is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Cashwerkz appoints Peter Whitfield as Chief Technology Officer 2019-02-20T23:00:00Z cashwerkz-appoints-peter-whitfield-as-chief-technology-officer Cashwerkz has named Peter Whitfield to the role of chief technology officer (CTO) for the company. As CTO, Peter will be responsible for strategic technology initiatives to ensure the Cashwerkz platform remains at the forefront of innovation as it delivers an easy and secure online marketplace for retail, middle market and institutional investors. Whitfield joins this role from his most recent position as Head of Special Projects for Cashwerkz. He joins the Senior Leadership team and will continue to report directly to Hector Ortiz, CEO, Cashwerkz. “Having Peter lead this role means we continue to benefit from his in-depth and unique expertise developing cloud-based platforms and services in both the B2B and B2C spaces,” said Hector Ortiz, CEO, Cashwerkz. “Peter is now responsible for a series of unique technology initiatives designed to enhance the investment sector. Our goal is to continue to streamline online investing. He has already played a leading hand in the current product road-map and is the ideal person to head the team to continue to build out our professional platform capabilities and efficiencies.” Whitfield will continue to focus on ongoing development of the Cashwerkz platform and its workflow efficiencies, rolling out dynamic technology solutions to better support the needs of retail, middle market and institutional investors. “I am driven to find new ways to solve existing problems and coupled with my drive in leading teams, I feel by combining my strengths with Cashwerkz innovation can continue to deliver a transformational offering for investing in Australia,” Whitfield said. Whitfield’s career includes CTO for LawPath, Director for nVision, Director of Engineering at both Bigcommerce and Community Engine, plus Director IT at University of Sydney and Development Manager for Commonwealth Bank. His 20-year career spans software development, platform engineering, two-sided marketplace creation and the establishment of cloud-based platforms suitable for global scale. He holds a Bachelor of Engineering and various post-graduate certifications in management, innovation and entrepreneurship. /Ends Esker Australia Launches New Cash Collections Management Solution 2019-02-18T03:58:50Z esker-australia-launches-new-cash-collections-management-solution Sydney, Australia — February 18, 2019 — Esker, a worldwide leader in document process automation solutions and pioneer in cloud computing, today announced the launch of its Collections Management automation solution in Australia, building on the success of the solution in the U.S. and France. Esker’s cloud-based solution optimises collections management by decreasing costs, accelerating payments and reducing DSO (Days Sales Outstanding). Collections management complements and enhances Esker’s existing accounts receivable (AR) offering. Esker improves the cash collections process by automating what should be automated (e.g., task lists, collection calls needed, sending account statements and payment reminders, etc.) while providing real-time visibility on collection performance. Automating this stage delivers numerous benefits, including: Higher staff productivity: Modernised tools replace spreadsheets, helping staff to better organise collections activities, maximise productivity and focus on more customer-centric, value-added tasks. Faster customer payments: From automated collection call lists and payment reminders to a central location for all account information, automation creates a more effective collections process. Increased visibility: Dashboards with live analytics allow users to oversee daily activities and monitor KPIs (Key Performance Indicators). Greater collaboration: Team members and customers interact on a shared platform rather than remaining siloed, strengthening the overall customer experience. Read more of the press release here Aged Care, Estate Planning and Private Wealth Management Tax Accountant Financial Expert of TLK Partners Sydney Explains Credit Card Debt Problems 2019-02-06T02:57:53Z aged-care-estate-planning-and-private-wealth-management-tax-accountant-financial-expert-of-tlk-partners-sydney-explains-credit-card-debt-problems Credit card debt in Australia is a serious challenge as the Australian Securities and Investments Commission (ASIC) found in July this year. But although ASIC is working to tighten up credit card lending practices after its investigation found several questionable sales tactics at work among lenders, the problem won’t just go away says Thomas Mousa, CEO of TLK Partners.“It’s good that were taking steps to clean up the credit card industry,” says Thomas, “but we still have 1.9 million consumers struggling with debt and a national total of in the region of $31.7 billion in credit card balances on which interest is being charged. I doubt that’s changed much for the better since July.”Consumers Do Not Have to Pay Credit Card Interest RatesTLK Partners specializes in wealth management, but many of its clients are only to get out of the red, says Thomas. He’s often surprised to find high interest-bearing debt in the mix when he analyses struggling families’ finances. “Credit card debt should be the first to go,” says Thomas. “Nobody should pay such high rates for credit.”Judging from his interactions with clients, he believes people don’t realize how high the cost of credit can be, especially when you’re looking at a lengthy debt repayment period. “People feel overwhelmed. They know they’re struggling to cope, but they don’t think there’s anything they can do about it, so they just try to roll with punches.”Consolidation Should Never Make More DebtThomas warns against going directly to credit providers for more credit. ASIC found that some credit card companies were offering “balance transfer” cards, and says that 30 percent of consumers who took on such offers proceeded to make even more debt.It’s better to cut up your credit cards and refinance using lower interest-bearing loans. But you do need to analyse the consequences of refinancing before simply taking the plunge, warns Thomas. “Unless calculating compound interest, and charges stemming from a possible transaction is your favourite thing, I’d advise you to get an expert to generate some refinancing scenarios for you,” he says.It’s a Current Issue, and if You’re Affected, You Should ActThe message Thomas wants to bring across is that, although there’s no quick-fix escape from the debt trap without a windfall, restructuring debt can transform an unmanageable burden into a steady but affordable route towards financial security.Many young people were taken in by clever credit card marketing strategies, and right now, Thomas says they’re struggling to recover from the mistake. “It’s stunting their ability to get the kind of start in life one would want to see – and in a lot of instances, they’re struggling much more than is necessary.”Of the debts that bring people down, credit card debt is among the most costly – and among the prime candidates for refinancing. He believes his company can help. “At TLK Partners we don’t offer loans. We don’t take commissions. We don’t promise silver bullets. But we will help you to look for responsible, long-term strategies for a sound financial future. Talk to us.”Thomas Mousa is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324.This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published.Syndicated by Baxton Media. Sydney Aged Care Estate Financial Wealth Planners and Tax Experts of TLK Partners in Kingsgrove Warn Ageing Investors in Sydney 2019-02-05T02:55:25Z sydney-aged-care-estate-financial-wealth-planners-and-tax-experts-of-tlk-partners-in-kingsgrove-warn-ageing-investors-in-sydney Australian investors would be burying their heads in the sand if they were to ignore the recent scandals involving wealth management companies, says Thomas Mousa, CEO of TLK Partners. He says that although research shows better returns for those who get expert help with structuring their financial life, individuals and businesses should be cautious about who they choose to assist them.Qualifications and Track Record a MustIt seems like a bit of a no-brainer, but the recent AMP court case uncovered that the company’s financial advisors “lacked the education” to understand that they were breaking the law with some of their charges. Needless to say, the warning signs had been there for some time, with a high rate of banned advisors in an industry where even one banning should be a shocker.Apart from understanding how the law governs their business relationship with their clients, financial advisors must understand markets and have proven their mettle in the past. If they haven’t, you’re giving them your assets to experiment with.Know Where the Loyalty LiesThomas points out that your financial advisor might have vested interests. They aren’t financial advisors as much as they are salespeople for a specific firm’s products.“There is absolutely nothing wrong with asking a financial advisor whether he has any affiliations or receives any commissions,” says Thomas. “It’s not necessarily a deal-breaker if he is, but then you know that he’s selling rather than advising and that you should still get impartial advice elsewhere.”Know How the Fees WorkA financial management company should explain how fees are calculated, what fees are charged, and what fee options it offers. It is absolutely essential that you ask what the maximum fees you will be charged would amount to since there will be times when you’ll need extra consultation time. Uncapped fees could present consumers with an unpleasant surprise.Know What You’re Getting and WhyPaying an unspecified amount to a person who provides an unspecified service for opaque reasons is clearly not the way to look after your financial future. A financial advisor should be able to explain what you’re paying for, what you get, and why certain funds or fund managers are recommended.Thomas says that TLK Partners believes in educating its clients and equipping them with the knowledge they need for a clear understanding of their financial life. “I could just take a fee and impress you with a lot of jargon and my reputation as a financial expert,” he says, “but that’s not the way we work.”“At TLK, we love empowering our clients. After all, it’s their money. We’re not asking for blind faith. We’re looking for smart clients who are going to ask questions, challenge us, and make recommendations of their own. A lot of our clients don’t start from that position, but we help them to reach it.”Get Help with Financial Planning and Wealth ManagementAccording to Thomas, getting expert help with financial planning and wealth management is the smart way to grow your wealth. But expert or not, your financial advisor should be keeping you in the driver’s seat.Ideally, he or she should be the one insisting on reporting to you frequently. You should have absolute clarity on how your wealth is managed, why, and what administration and other costs you should expect to pay.“Some financial managers might prefer it if their clients don’t take an interest in wealth management matters,” says Thomas, “but at TLK, we believe absolute transparency is vital. Keeping our clients informed is part of our code of ethics at TLK. Trust is a fundamental in our business, and trust is earned.”Thomas Mousa is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324.This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published.Syndicated by Baxton Media. TLK Partners Sydney, NSW Aged Care and Financial Income Protection Expert Delivers Investors Tax Wealth Clients Warning to Australian Investors 2019-02-04T02:53:47Z tlk-partners-sydney-nsw-aged-care-and-financial-income-protection-expert-delivers-investors-tax-wealth-clients-warning-to-australian-investors Australian investors may be cushioned from many of the direct blows that have been rocking markets, but being cushioned doesn’t mean you won’t get hit hard during times of market volatility says Thomas Mousa of TLK Partners. “It’s brutal out there right now,” he says, “and how you approach that investment environment depends on your personal financial situation.”Know the RisksIn a volatile market environment, there are going to be some unexpected outcomes. Solid portfolio standbys can tumble. What was a relatively conservative investment yesterday becomes a cliff-hanger today.“That’s why we always recommend hedging your bets with investment that targets sectors across a number of leading companies and spreads capital,” says Thomas. Currently, he says that keeping a higher percentage of your assets than usual in cash could be advisable – and investments should be relatively conservative and well-diversified.But Thomas admits that to some, it’s the thrill of the risk and the promise of high rewards that makes investment exciting in the first place.“There is the chance of scoring big during a time like this. You could also lose big. If you can accept the latter, some educated risk-taking could prove profitable. However, I advise clients to limit high-risk investments to amounts they can afford to lose. Investment is always a risk. There are no exceptions. But some opportunities have a higher risk profile than others. Always consider the worst-case scenario.”When’s the Best Time to Take Risks?Thomas says it’s your personal circumstances rather than the markets that determine the best times to structure more or less risk – and the potential for higher rewards – into and out of portfolios. “When you’re young, you can risk more. There’s time to recover if you need it. And if your investments prosper, you’ll set yourself up for a secure future.”Later on, Thomas suggests reducing risk, and later yet, structuring investments around secure income production rather than value growth. “For most people, that’s the financial lifecycle. But we work one on one with our clients to determine their needs and from there to determine the best investment strategies.”How Bad is It for Australian Investors?Thomas laughs. “It’s an interesting market. And it’s crazy right now. But in my opinion, there’s opportunity in this. Things have been almost too rosy for too long. The US has been in strong recovery, China has been flourishing but with warning signs during the last couple of years – the EU has been less exciting, but nonetheless solid and relatively predictable.”“Politically and economically, the environment has changed. Economies buoyed up by low interest rates need to start covering costs and reducing indebtedness. Add a few extra variables and a trade war we hope will be reconsidered and we have the current situation. Globally, we’re slowing down, but I hope we’re only slowing down to catch our breath.”“I say it’s brutal,” he says, but you should have seen 2008. “We’re talking about the loss of over $10 trillion in wealth for the US alone. But guess what happened? The market recovered. I don’t think anything nearly as dramatic as that is about to happen. So, hold on tight! It’s going to be an interesting ride, but I’m making it my business to make sure we’re going to be OK!”If you’d like to talk to TLK about your investments and your plans for the future, they’ll be happy to help you tailor your capital investments to suit your needs. Visit TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published.Syndicated by Baxton Media.