Kate Rhodes, from ACCRU Melbourne came to share with us her take on managing our financial futures - and dear reader, I declare potential conflict of interest in my opinions as Kate is my financial adviser. My daughter’s brother-in-law, Richard Addison is a partner of the firm.

To begin, Kate briefly outlined the breadth of professional services offered to help people prepare themselves for retirement.

Kate then proceeded to ask us key questions she hoped we had answers for with the end of the financial year rushing towards us, beginning with  the rider that we need to know our superfund is valued and investments audited at 30 June each year.

Question 1: Have I taken advantage of the taxation benefits offered during the past year?

Examples included maximising super contributions ($25,000 max, up to $27,500 next year); completed the work test to allow concessional contributions for those 65-70 years (next year to be 67+ or maybe the budget will change this, Kate proffered. It did).

Question 2: What have we learned this year?

Kate suggested volatility in shares has abounded, but on Monday the ASX reached a record high. Why? Perhaps because vaccines have been released earlier than we expected in Feb 2020 and hopes have lifted, but Kate feels volatility will continue. Potential for US domestic taxation to increase, which may be a barrier to growth there. The rise in the value of crypto-currency has occurred without being underpinning sound business principles - be careful. Kate explained that ACCRU currently favours domestic shared over international stocks, and advised amateur traders to avoid trying to “time the market” on shares, as this can be disappointing.Always retain a diversified portfolio.

 Question 3: When did I reassess my asset allocation?

We need to balance risk and reward, and our appetite changes. Kate cautioned us to keep enough cash on hand so we never need to sell shares at the bottom of a market run to meet immediate needs. Being in only the safest investments (e.g. the Big4 - banks - and BHP) can limit access to opportunities. Regular revues are essential to maximise benefits and grow assets.

Question 4: Should I get my family involved?

It is Kate’s experience that children who are well aware of their parent’s situation are better equipped to manage both their own and  when needed, their parents’ finances. Her advice is “the earlier the better!” A family group asset can also assist in effective tax strategies.

How about that? Very glad Kate is helping me prepare to retire!.

Thank you Kate, and colleague Kate Harris, for sharing your expertise with us in such a lively and palatable manner. Who said finance is dull?

Contact: krhodes@AccruMelb.com.au

 Cheers  Gilly