With the increasing popularity of DIY home improvements and gardening makeovers, there has also been a surge in the number of injuries due to falls from ladders, misuse of equipment and inexperience with power tools.

Long weekends and holiday periods see a rise in accidents as people seize the opportunity to complete that project that has been put aside due to other priorities.  Hospitals and medical clinics experience an increased number of emergency visits and admissions due to serious injuries from incorrect handling of machinery and lack of proper safety precautions.

According to data collected in 2013 by the Monash University Accident Research Centre, falls from ladders whilst doing roof repairs, cleaning gutters and pruning trees, accounted for most around-the-home injuries.  Head, neck, eye and limb damage caused by power tools also represented a large proportion of DIY related injuries.

The statistics show that the most common machinery related injuries were caused by chainsaws, circular saws, lawn mowers, nail guns and grinders.

Contributing factors for the accidents were removing safety measures, disregarding safety instructions, lack of protective equipment and consumption of alcohol.

Due to the popularity of TV shows like House Rules, The Block and Better Homes and Gardens, along with the widespread use of Google and YouTube tutorials, people are often more likely to try to do it themselves, whereas previously we’d get a tradesperson to do the job.

DIY has become more commonplace as people have seen it done on TV, and decide, “I can do that!”  Many will attempt to complete projects around the home to try to save money.  It can often be difficult to find a professional to do the job who is not booked out, on holidays, or can do the job cheaply.

Access to cheap off-the-shelf power tools and other equipment, without proper training, equipment or sufficient information, can also prove hazardous.

Statistics:

Up to 75% – of DIY injuries occur around the home while undertaking maintenance, gardening or vehicle repairs.

Top 3 – DIY activities that result in injury are grinding, lawn mowing and ladder use.

Homegrown – Evidence suggests that home injuries result in more lost days from work than workplace injuries.

5:1 – The ratio of men more likely to be injured undertaking DIY tasks than women. Adults aged 25-34 are in the highest risk group. Women are most often injured in gardening activities. Men are most often injured in non-gardening activities such as grinding, welding and motor vehicle maintenance.

Just remember, sometimes more is lost by inaction, rather than action.  Plan for the future today so you don’t regret your inaction tomorrow. Contact The Investment Collective to learn more about planning for your future.

Human beings, generally speaking, are creatures of habit. We like, and gravitate towards, things that we know (or think we know), and feel comfortable with. No surprise then that we can observe this in all sorts of areas.

Yale Hirsch, an American stock market analyst, observed this in the share market.  In 1968 he published the inaugural ‘Stock Trader’s Almanac & Record’ in which he noted many stock market patterns and cycles, including one that he observed which seemed to take place around Christmas time.

Specifically, he noted that in the days between Christmas and New Year the US share market seemed to rise more often than it fell. In last year’s publication, it was noted that the US share market rose 34 of the last 45 years by an average of 1.4%. Stretching back over 120 years, there was a rise in the market in 77% of years for an average rise of 1.7%. The popular press, always on the lookout for a ‘feel good’ story, has attributed what it dubbed the ‘Santa Claus Rally’, to pretty much any increase in the share market starting from late November.

Why is it so? Well, you could probably take your pick of reasons, including fund managers ‘window dressing’ their investment performance before the end of the year by bidding up shares or simply the reflection of a positive mood leading up to the festive season.

So, do we here at Capricorn Investment Partners and the Pentad Group consider the ‘Santa Claus Rally’ when we review your investment portfolio? No, we do not. We consider a wide range of factors, including the quality of a company’s revenue, the dividends it pays and the competency and transparency of its management. If anything the ‘Santa Claus’ rally, while it exists, only underscores the notion that the market is comprised of human beings, who generally speaking, are creatures of habit.

There’s a commonly held belief in the real estate industry that spring is the best time of the year for selling a home. Although the season doesn’t officially start until September 1, now would be the time to start planning to make sure your property stands out from the rest.

Every aspect of the season can work in a seller’s favour. With the sun shining, the flowers in bloom, this not only makes your home look its best, but it also encourages buyers to get out and attend open inspections. It is important to remember that other sellers will also benefit from these conditions. Selling your home in spring means you’ll be faced with a higher degree of local competition than you would during the winter months. If you’re thinking of selling your home this spring, a good local real estate agent can help you increase the sale price.

To help make your property stand out from the competition, you’ll need to put in a bit of extra effort. One of the first areas to address is your property’s exterior appearance, because this is the first thing that buyers will see. You will want to put some effort into improving your kerb appeal. Take good care of your lawn by tidying your yard with a lawnmower, fixing dead or bald patches in the grass with a bit of fertiliser. Pull weeds and plant new flowers to add vibrant touches of colour to the garden. Flowers like daffodils and tulips are a good choice, because yellow is associated with feelings of optimism and happiness.

At the same time, be sure that the street view of your home is clear for viewers. Clear away any large bushes or trees that are in the way of a buyer’s line of vision by trimming stray branches. You may want to hire a professional gardener who has experience pruning trees for larger jobs, because this can be dangerous to do on your own.

Maximising the External Appeal

Although it is easy to overlook exterior areas like the outdoor nooks and crannies of the property, buyers will look everywhere. They can trek a great deal of muck throughout the property in winter, so you’ll need to give the full exterior of the home a good spring clean to make the best first impression. If you neglect these areas of the house, buyers may assume that you have neglected others.

Maximising the Interior Appeal

With the outdoor area of your home looking fresh and well-maintained, you can turn your attention to the interior of the home. Make the most of the spring sunlight by ensuring that it bounces off of clean, polished surfaces. By polishing your chrome fittings, floors, mirrors, glass, and door knobs, the light will really make these surfaces dazzle as it streams in through the windows during inspections. This will make the house look immaculate and create a great impression on buyers. Otherwise, the light will illuminate problem areas like dusty corners instead.

It’s a good idea to capitalize on the sunlight by pulling back all of your drapes and curtains, let the light in and bathe your home in a warm glow. You can also open up the windows to let the fresh air in and get rid of any residual stuffiness from winter. Air fresheners can bother buyers with allergies, so fresh air is preferable. To further benefit from spring’s effect, position vases of freshly-cut flowers throughout the home. This will help appeal to a buyer’s senses with the combination of bright colours and delicate fragrance.

Increase Buyer Interest with Colour

In line with appealing to the senses, use colour when selling your house. Colour can be an effective tool to influence a buyer’s mood. Bright, light, cheerful colours can create an uplifting atmosphere. Replace old bath mats, linens, throws, and pillows and replace them in complementary colours that fit the spring theme. A fresh coat of light, pale paint can also bring out the best in your home by making spaces seem larger. The overall effect could lead to a quicker offer from buyers.

No matter when you choose to sell your home, it’s important to be willing to adapt to the season and circumstances. Spring provides an abundance of advantages to sellers, helping you appeal to a buyer’s wish to make a fresh start as well.

These tips may be for selling your home, but our mortgage broking team can also help you with the purchase of a new home. Whether it be refinancing or getting a mortgage. If you would like more information, please contact our friendly staff today.

It’s winter, the mornings are cold and day looks grim. Dark clouds are brewing and now it’s raining. Everyone around you has an umbrella and scarf and you are wearing a straw hat that makes everyone look as they walk past.

Is standing out from the crowd such a bad thing?

To be a successful investor, you cannot constantly be swayed by changing the opinions of outsiders. Our Investment Committee is not distracted by short-term trends in the financial markets or the constant headlines and negative press we are exposed to in mainstream media commentary. Being able to maintain a long-term focus and not overreact to optimism or pessimism is critical for investing success.

Warren Buffett once said,

“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”

At The Investment Collective, we choose Australian companies that exhibit some form of “economic moat” to help protect the business against competitors.  This may include:

• Strong branding
• Efficiencies of scale
• High barriers to entry
• Switching costs

Our Investment Committee seeks out opportunistic investments where we view market pricing as not being representative of future predicted returns.

Markets will continue to rise and fall. Working alongside you to manage your investments, we help you make more informed decisions and seek to minimise your emotional burden.

If you would like to know more about how The Investment Collective can help you with your investment strategy, contact us to make an appointment today.

“Sell in May and go away” is a well-known saying in relation to share markets.  Does it have any validity?  Well, the first question that needs to be answered is “go away for how long?”  The phrase is likely a take on an old English saying “sell in May and go away, come back on St Leger’s Day”.

Horse racing buffs may know that the St Leger Stakes is run in September each year.  So, the rationale would be to sell shares in May and buy them back in September expecting the (buy) price in September to be less than the (sell) price in May.  Easy enough.  Let’s see how successful this would have been.  We’ll keep it simple and not include buying and selling costs or tax implications.
We’ll use the ASX top 200 index (the XJO) to back test the strategy.  We’ll compare the value of the XJO at the beginning of May to the value at the end of August for the last 20 years.  Here’s the table of results:

Summarising these back tested results for 1997 to 2016:

• The “sell in May and go away” strategy would have produced a beneficial outcome in 11 out of 20 years. The average beneficial percentage is 6.2%.
• The “sell in May and go away” strategy would have produced a detrimental outcome in 9 out of 20 years. The average detrimental percentage is 6.5%.

“Sell in May and go away” would have produced only a marginal benefit if applied as noted here over the last 20 years.  An interesting saying, but not a viable strategy.

Please note, this article is for general advice purposes only. It is not taking into account your particular circumstances or your personal finances. As mentioned above, this is a simplified analysis, and does not take into account certain financial implications (such as buying and selling costs and tax implications). If you wish to discuss the matter in further detail or wish to book an appointment to discuss your personal financial situation and future financial goals, please contact us to book an appointment with one of our advisers.

Being a mother is so many things, especially a new mum. It’s demanding, rewarding, relentless, remarkable and utterly exhausting, just to name a few. As the first few days, weeks and months roll through it is an all-consuming role that can feel overwhelming, claustrophobic and lonely all at once.  There really is no other comparable responsibility.

It is commonly said that no one can prepare you for motherhood (or parenthood), but the same can be said for the return-to-the-workforce post child. For some, a completely new level of emotion kicks into gear when the time comes to re-entering the workforce. This can be for a variety of reasons: fear, sadness of leaving the child, potential loss of confidence and skills due to time out of the workforce, uncertainty around employment expectations, just to name a few. Whilst these feelings are all valid – especially in environments that are particularly dynamic – I feel overwhelmingly, that the stimulating, interesting conversation (and a hot cuppa) outweighs any indecision.

Having returned to work following twelve months maternity leave last year in September, there are a few points relating to my financial future I thought I’d share:

Budget – and stick to it! Knowing where your money goes is crucial.

Save – as much as you can afford and start as early as possible.

Women are certainly faced with many life events that can impact income and long-term savings via superannuation. Obviously having a baby, parental leave, returning to work potentially on part-time hours all contribute; but also, getting married, divorced or losing a partner to illness can have a significant effect on longer-term objectives. Having the right insurance in place can assist in most of these situations to ease the burden financially and concentrate on recovery – and family.

Please note, this article is for general advice purposes only. It has not taken into account your personal circumstances or financial goals. If you wish to access more personalised advice tailored to your circumstances and financial objectives, please contact our friendly staff today.

I am a mother of three and had my youngest daughter at age forty. Ten months into my maternity leave I was offered a voluntary redundancy. I jumped at the chance to have a few more years raising my daughter and being a stay at home mum.

I then worked in a casual job cleaning 6 local motel rooms with my toddler as my right-hand girl.  Twelve months into that job I was ready to progress back into a more challenging role and to go off to work on my own.

I searched Seek and the local paper looking for that perfect role, not full time or weekends as this was my family time. Despite searching regularly I wasn’t confident enough to apply for any of the roles on offer. A close friend that I had previously worked with was five months into her first pregnancy, so I enquired into a relief role for 12 months. I thought this could be a good way to ease my way back into the workforce and give myself that confidence boost us stay at home mums need. I prepared my resume (which I had to Google, having been quite a few years between jobs), and forwarded this to my friend to pass on.

I had my interview and was offered the role then and there. Starting back at work was a challenge. Just using Word, Excel and a system that is all number coded alone took a while to sink in. I had six weeks extensive training and then I was left to my own devices. My first week working alone I would go home every day saying, “I don’t know if I can do this”. Eventually, I got my groove, my own routine and I felt more and more confident.

Many friends and family are still looking for that lucky break in finding employment. I was one of the lucky ones, I had my friend put in a good word and my employer take a chance. I am now a Portfolio Administrator at The Investment Collective.

On Tuesday 9 May 2017, the Treasurer, Scott Morrison, released the Government’s 2017-18 Budget.

This year’s Budget won’t significantly impact retirees; however, there were plenty of changes announced that could affect you. For further information regarding these proposed changes, speak to your financial adviser who will look at your personal circumstances and assess how you will be affected.

It’s important to note that at this point in time, these proposed measures are not yet law and may be subject to change.

Superannuation

Additional super contributions for downsizers

From 1 July 2018, individuals aged 65 and over will be able to make an after-tax super contribution of up to $300,000 ($600,000 for couples combined) from the proceeds of the sale of their home. This measure will only apply following the sale of a principal home held for a minimum of 10 years.

This new measure will not attract any special Centrelink treatment but it will allow eligible individuals to make contributions above the super caps, without being subject to work or age test requirements.

First home super saver scheme

To reduce pressure on housing affordability the Government will allow voluntary superannuation contributions to be withdrawn for a first home deposit.

• From 1 July 2017, individuals can make voluntary contributions of up to $15,000 per year, up to $30,000 in total, to superannuation for the purposes of this measure. Voluntary contributions can be made before or after tax and are subject to the relevant contribution caps.
• From 1 July 2018 those voluntary contributions (along with deemed earnings) can be withdrawn for a first home deposit.
• Withdrawals will be taxed up to an individual’s marginal rate, less a 30% offset. Withdrawals of after-tax contributions will not be taxed.

Social security

Pensioner Concession Card reinstatement

From 9 October 2017 the Government will reinstate the Pensioner Concession Card (PCC) for former pensioners who lost their Age Pension as a result of the 1 January 2017 Age Pension changes. Those affected will receive the PCC and retain the Commonwealth Seniors Health Card, to ensure they continue to receive the Energy Supplement. Where they received the Low Income Health Care Card, that card will be deactivated.

Energy Assistance Payment

From 26 June 2017, the Government will make a one-off Energy Assistance Payment of $75 for single recipients and $125 per couple for those eligible for qualifying payments on 20 June 2017, and who reside in Australia. The payment is not taxable and will not be counted as income.

Qualifying payments include:

• Age Pension
• Disability Support Pension
• Parenting Payment Single
• Veterans’ Service Pension, Veterans’ Income Support Supplement, Veterans’ disability payments
• War Widow(er)s Pension, and permanent impairment payments under the Military Rehabilitation and Compensation Act 2004 (including dependent partners) and the Safety, Rehabilitation and Compensation Act 1988.

Revised residency requirements for pensions

The Government will revise the residency requirements for claimants of the Age Pension and the Disability Support Pension (DSP) from 1 July 2018. Generally, claimants will now need to have 15 years of continuous Australian residence before being eligible to receive the Age Pension or DSP unless certain conditions or an exemption applies.

Working age payments reforms

The Government will progressively consolidate seven working age payments and allowances into a new JobSeeker Payment or transition recipients to Age Pension.

The working age payments affected are:

• Newstart Allowance
• Sickness Allowance
• Widow Allowance
• Partner Allowance
• Widow B Pension
• Wife Pension
• Bereavement Allowance.

If you are receiving one of these payments, speak with your financial adviser to find out how these changes may affect you.

Liquid assets waiting period increasing

From 20 September 2018, the period that a person must wait before being paid an allowance (for example Newstart), if they have ‘liquid’ assets will increase from 13 weeks to 26 weeks.

Family Tax Benefits

The Government will continue to keep the Family Tax Benefit (FTB) payment rate fixed until 1 July 2019. Indexation in line with the Consumer Price Index will resume from that date.

From 1 July 2018, all families with total income over $94,316 will have their Family Tax Benefit (FTB) Part A reduced by 30 cents for every dollar above $94,316.

Tax
0.5% increase in Medicare levy

From 1 July 2019, the Medicare levy will increase by 0.5% to 2.5% of taxable income. The increase ensures the National Disability Insurance Scheme (NDIS) is fully funded.

Increase to Medicare levy low-income thresholds

The 2016-17 financial year Medicare levy low-income threshold will be increased as follows:

Reduced residential property deductions

From 1 July 2017, the Government will no longer allow deductions for travel expenses related to inspecting, maintaining or collecting rent for residential rental property. However, investors can continue to deduct those types of expenses incurred by third parties such as real estate agents and property management services.

In addition, from 1 July 2017, depreciation deductions on plant and equipment (for example dishwashers and fans) will be limited to outlays actually incurred on residential properties. For plant and equipment purchased after 9 May 2017, deductions are claimable over the effective life of the asset only by the investor who bought the items.

For investors with existing investments as at Budget night, grandfathering rules will apply, broadly allowing deductions to continue until either the investor no longer owns the asset or the asset reaches the end of its effective life.

Aged care

The Government will make a number of changes over the next two years impacting the operation of aged care, including extending the Commonwealth Home Support Program, Regional Assessment Services funding arrangements and palliative care services.

The programs contribute to essential home support services, such as meals, personal care, nursing, domestic assistance, home maintenance, and community transport to assist older people who would like to remain in their home for care.

Small business

Extending the immediate deductibility threshold for small businesses

The Government will extend the accelerated depreciation rules for small businesses by 12 months to 30 June 2018. This allows small businesses, with aggregate annual turnover of less than $10 million, to immediately deduct purchases of eligible assets up until 30 June 2018, provided the asset costs less than $20,000. Assets valued over $20,000 or more can be depreciated at 15% in the first income year and 30% each income year thereafter.

Foreign investors and property

From 7.30pm on Tuesday 9 May 2017 there will be a number of changes affecting property investments by foreign residents. These include an additional charge if the property is left vacant for more than six months in a year, the removal of the main residence capital gains tax exemption (for properties purchases after Budget night) and from 1 July 2017, a 12.5% capital gains tax withholding regime for property transactions of $750,000 or above.

To find out more about these proposed changes and how they may affect you, speak to your financial adviser. Contact The Investment Collective today.

Women face unique challenges when it comes to retirement savings. Time out of the workforce to care for children is likely to affect your income and your ability to accumulate superannuation.

Here are some simple strategies that make it possible for women to overcome these hurdles.

Government Co-Contribution

• If you earn less than $36,021 during the 2016-17 financial year and contribute $1,000 of your own money to super, the government will put $500 in your fund shortly after you submit your tax return – a sweet 50% guaranteed return!
• In addition, if you earn less than $37,000 you will have your super contributions tax refunded to your fund to a maximum value of $500.

Spousal Contribution

• This is a fantastic and under-used strategy particularly for women working part-time which will provide your spouse with a handy tax break. It works like this… If you are earning less than $10,800 a year, get your partner to make a $3,000 contribution into your super and receive a $540 tax rebate.
  • Note: the spouse income threshold will rise to $37,000 from 1 July 2017 making this strategy more accessible and attractive.

Spouse Contribution Splitting

• Another underutilised strategy but a great one for rebalancing super accounts and topping up a low super balance. It is a simple process, allowing up to 85% of your spouse’s contributions made to their super fund being transferred into your account.

If you are not sure how to apply these strategies to your situation, it may be worth consulting an adviser to ensure your super keeps rolling in during periods of absence from the workforce.

Please note, this article is for general advice purposes only. It has not taken into account your personal circumstances or financial goals. If you wish to access more personalised advice tailored to your circumstances and financial objectives, please contact our friendly staff today.

The birth of a child is one of the toughest occasions in anyone’s life, but also one of the most rewarding.  I will never forget the moment I realised that I was now responsible for the wellbeing of another human being who could not survive without my help, and that this responsibility remained through the rain, hail or shine regardless of my own state of health or mind on any given day.

The responsibility for having a child doesn’t end with the nurturing, but also extends to financing the child’s needs for many years after their birth.  This can be a very costly exercise, but like everything else, mothers take it in their stride and adjust their own financial and other needs to cater for the needs of the child.

The one thing that doesn’t cost anything in raising a child is the amount of love that you have available – it is limitless!  My children have brought me so much joy over the years and the rough patches are forgotten.  Also forgotten are the things we ‘did without’ in order to give our family a good education.  They simply don’t matter.

I am reflecting on motherhood as we near the annual celebration of Mother’s Day.  It now has an added significance for me because my daughter is also a mother, making me a grandmother.

Being a grandmother brings a whole new dimension to life.  Those little people make my heart sing!  The pride I feel as I see my daughter and her other young mother friends thoughtfully guiding their youngsters through childhood is immense.

I see these young mothers coping with exactly the same issues that I faced, and the financial struggle is just the same for them as it was for me.

The difference for me as a grandmother is that I don’t have to cope with sleepless nights, the school run, seemingly bottomless stomachs, the washing and so on. I can enjoy the laughter and the fun and games, and then I just go home and leave ‘em to it.

Having a budget in place will help you manage the expenses during your children’s early days and through their education years.  The costs are significant and having a plan for managing expenses will mean that you keep on top of the costs in an organised way.

There are many tools available, such as those on ASIC’s MoneySmart website that will assist you in establishing your budget. There are also apps that allow you to track expenses so you can see where your money is being spent.  Every one of these tools will assist in making ends meet and I suggest that you take advantage of these.  My budget lets me help my kids financially every once in a while because I know what they are experiencing.

Please note, this article is for general advice purposes only. It has not taken into account your personal circumstances or financial goals. If you wish to access more personalised advice tailored to your circumstances and financial objectives, please contact our friendly staff today.