Tag: investment

Whether an individual should allocate excess cash flow to their mortgage or make concessional super contributions depends on various factors. Principal considerations include the individual’s tax rate, liquidity needs, cash flow position and risk tolerance. Before analysing these considerations, we will briefly outline the tax benefits of topping up super compared to making extra home loan repayments.

Aussie equities have rallied in recent weeks however the outlook still sees global markets stuck in defensive mode with uncertainty surrounding Europe, US and China.  

If you are investing in a currency other than Australian dollars (AUD), you are (or someone is on your behalf is) participating in the foreign exchange (FX) market.  For example, by purchasing a foreign asset, you are selling AUD and simultaneously buying another currency (such as US dollars (USD)) to purchase that asset.

It is imperative that investors focus on after tax investment returns and not pre tax investment returns.  We have put together a few scenarios to highlight the importance of tax when investing.

Investment benchmarking is the process that appropriately compares and measures investment performance. This is quiet a simple procedure which is done by comparing your own investment return against the return of a benchmark over the same period of time.