US election

US Election: Implications for Investors and the Economy

Navigating Economic Challenges in a Transformed Landscape

Donald Trump’s return to the White House is set to have significant implications for the US economy and global markets

Dr Shane Oliver, Head of Investment Strategy and Chief Economist at AMP, commented: “The economic environment is considerably tougher than it was during Trump’s first term. However, these constraints may nudge the administration toward more balanced, supply-side reforms, which could ultimately benefit markets in the long run.” 

Key economic indicators  

  • Higher inflation, larger budget deficits and increased bond yields are shaping a more constrained environment for policy-making 
  • Inflation has risen to 3%, federal debt has reached 125% of GDP, and bond yields are at their highest levels in years, limiting the potential for aggressive reforms without market repercussions 
  • While Donald Trump’s re-election reflects a strong voter mandate for addressing key issues like the cost of living and immigration, the current economic landscape presents challenges far greater than those during his first term in 2017. 

Despite these, Trump’s administration is expected to push forward with policies aimed at tax cuts, deregulation and trade protectionism. However, constraints such as market sensitivity to rising bond yields, a slim Republican majority in the House and limited flexibility in mandated spending could temper the more extreme measures. 

Mixed market reactions to the US election  

While US stocks initially rallied, concerns about tariffs and inflationary pressures have weighed on global equities. Meanwhile, cryptocurrencies like Bitcoin have surged, reflecting speculation about crypto-friendly policies. 

While investors should prepare for potential volatility, the long-term outlook for global equities remains cautiously optimistic, albeit with more moderate returns than in previous years. 

For further insights and updates on the evolving economic landscape, read the full article here » 

CONTACT ALLAN HALL FINANCIAL PLANNING


General Advice Warning

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs and, where appropriate, seek professional advice from a financial advisor. This site is designed for Australian residents only. Nothing on this website is an offer or a solicitation of an offer to acquire any products or services, by any person or entity outside of Australia. Robin Bell, Martin Cimino, Angelo Adam and Allan Hall Financial Planning Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323. 

contribute to Superannuation

Time to review Industry Super?

Red Flags in Industry Super Spark Scrutiny

A news article highlights concerns about governance, accountability and service standards within Australia’s $4 trillion superannuation industry.

Recent litigation by ASIC against Cbus Super for delays in death and disability claims has brought attention to systemic issues in the sector. These include allegations of fiduciary duty breaches by trustees, lack of a binding code of conduct, and governance conflicts tied to union affiliations on boards.

Key issues

  • Transparency and regulatory oversight remain insufficient, leaving members vulnerable
  • Some funds have begun addressing service issues by insourcing claim management and improving processes
  • However, the broader sector faces scrutiny for its handling of members’ retirement savings.

If you’re in an industry super fund, now is the time to review your arrangements.

To explore alternatives, including the benefits of an SMSF, reach out to Allan Hall Financial Planning for expert advice tailored to your retirement goals.

CONTACT ALLAN HALL FINANCIAL PLANNING 

Related reading

artificial intelligence AI

The Economic Payoff of AI – A Long-Term Prospect

Caution Advised Amid Enthusiasm for AI Investments

A new analysis highlights the long-term potential of artificial intelligence (AI) while urging investors to approach current market trends with caution.

Key Points

  • Although AI promises substantial benefits for productivity and economic growth, the payoff is expected over a more extended period than some anticipate
  • This comes at a time when AI-driven optimism is contributing to high US stock valuations, raising concerns about market sustainability
  • The analysis reveals that current investment levels in AI, though significant, are not enough to drive immediate economic transformation.

In 2023, US AI investment reached approximately US$67 billion. Even optimistic projections for 2025 put spending at around US$248 billion, far below the US$1 trillion needed to spur major economic acceleration.

Stock valuations, particularly in the growth sector, remain stretched.

Current US market prices are estimated to be 32% above fair value, with earnings growth needing an unprecedented 40% annual increase to align with these high valuations.

Such growth rates, double those seen in past technological booms, are unlikely, especially as US economic growth for 2025 is forecasted to slow to between 1% and 1.5%.

Despite these challenges, the long-term prospects for AI remain promising.

Economic benefits from AI are expected to take fuller shape between 2028 and 2040, as the technology matures and investments yield results. However, near-term gains are limited, underscoring the importance of a cautious and well-diversified investment strategy.

Implications for Personal Wealth

This analysis underscores the importance for our financial planning clients to manage expectations and maintain strategic investment approaches.

While AI has significant potential, its immediate economic contributions may not justify current market highs. Clients are advised to prioritise diversified portfolios, maintain realistic outlooks, and be prepared for possible market corrections.

A long-term, balanced approach that aligns with individual risk tolerance and investment goals remains crucial as AI continues to evolve.

For more information on diversified investment strategies, please contact your Allan Hall Financial Advisor.

CONTACT ALLAN HALL FINANCIAL PLANNING


General Advice Warning

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs and, where appropriate, seek professional advice from a financial advisor. This site is designed for Australian residents only. Nothing on this website is an offer or a solicitation of an offer to acquire any products or services, by any person or entity outside of Australia. Robin Bell, Martin Cimino, Angelo Adam and Allan Hall Financial Planning Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323. 

Source: 5 Sept 2024. Vanguard Australia FAS. Available from https://www.vanguard.com.au/adviser/learn/insights/markets-and-economy/economic-payoff-of-ai-is-coming

Allan Hall Financial Planning team with Mark O'Connell in centre

Allan Hall Financial Planning retirement

Mark O’Connell Farewelled after a Decade of Outstanding Service

As the curtains drew to a close on 31 December 2023, the Allan Hall Financial Planning team bid a fond farewell to one of its senior advisors, Mark O’Connell, who retired after an illustrious 10-year career with the company.

Mark’s invaluable contribution to the financial planning team has left an indelible mark on Allan Hall, and his retirement is celebrated as a well-deserved culmination of a successful career.

During his time, Mark played a pivotal role in shaping the success and growth of Allan Hall Financial Planning. His dedication and expertise were instrumental in establishing the firm as a trusted name in financial advisory services and the team is grateful for the wealth of knowledge and experience he brought to the table.

The Allan Hall Financial Planning team, now under the capable leadership of Robin Bell, consists of three advisers and three support staff, all of whom boast extensive knowledge and experience in the financial services industry. The team prides itself on its commitment to providing comprehensive financial planning advice, covering areas such as wealth accumulation, retirement planning, wealth protection, superannuation, investments, and personal and business insurance.

Over the last 12 months, Mark’s valued clients have undergone a seamless transition to two highly qualified advisers within the team — Martin Cimino and Angelo Adam. Martin, who joined the team in February 2023, brings a wealth of experience from a successful stint as a partner/director of a financial planning company, where he also served as a Senior Private Wealth Adviser since 2010. Angelo, an adviser since 2019, has been instrumental in assisting clients with their personal insurance needs.

Allan Hall Financial Planning takes pride in its diverse and loyal client base. Situated in the ‘Lifestyle Working’ building in the heart of Sydney’s Northern Beaches, the office provides a modern and inviting environment for both clients and employees. The open-air meeting spaces and light-filled offices foster innovation and vitality in the workplace, making it an ideal setting for client interactions.

As an integral part of Allan Hall Business Advisors, the financial planning team collaborates closely with accountants, tax advisors and SMSF specialists. Acting as a ‘financial coach,’ the team ensures that clients’ financial and lifestyle goals are thoroughly understood and met across various areas. This holistic approach sets Allan Hall Financial Planning apart, making it a trusted partner in guiding clients through their financial journey.

Mark O’Connell’s retirement may mark the end of a chapter, but the legacy of his contribution endures as Allan Hall Financial Planning continues its commitment to excellence and client satisfaction. The team looks forward to the future, building upon the foundation laid by Mark and embracing new opportunities for growth and success.

CONTACT ALLAN HALL FINANCIAL PLANNING

Allan Hall team

Allan Hall Secures Top 50 Position in Prestigious Accountants Survey

Allan Hall Business Advisors has retained their Top 50 position in the Australian Financial Review’s Top 100 Accountants Survey for 2023.

In a testament to unwavering commitment to excellence, Allan Hall Business Advisors has proudly held its position as one of Australia’s leading accounting firms in the Australian Financial Review’s Top 100 Accountants survey.

Securing an impressive #45 ranking, Allan Hall continues to stand tall among the accounting sector, reaffirming its status as a trusted and reliable partner for businesses and individuals alike.

Having a Top 50 ranking is more than just a number; it represents over 60 years of dedicated service and expertise. Since inception, Allan Hall has been resolute in providing high-quality accounting and business advisory services, consistently adapting to the evolving financial landscape and delivering value to clients.

What sets Allan Hall apart is not just longevity, but also the breadth of services available and the calibre of staff. The firm’s range of services goes beyond traditional accounting, encompassing financial planning, business advisory, self-managed super funds, home loans and more. This holistic approach to client service reflects Allan Hall’s understanding that modern businesses require comprehensive solutions to thrive.

The strength of Allan Hall lies not only in its services but also in its people. The team comprises seasoned professionals who bring a wealth of knowledge and experience to the table. Their dedication to being across industry trends ensures that clients receive advice that is not only reliable but also forward-thinking.

Beyond the professional achievements, Allan Hall’s #45 ranking also reflects an extensive involvement in the Northern Beaches community, with commitment to giving back and actively participating in local initiatives that align with Allan Hall’s values.

Read the full AFR announcement here »

Allan Hall was named Business Advisory Firm of the Year at the 2023 Australian Accounting Awards and also Best Business Advisory Firm by the 2023 Beaton Client Choice Awards. These accolades reflect Allan Hall’s consistent dedication to innovation, client service and community involvement.

CONTACT ALLAN HALL BUSINESS ADVISORS

0923 AHFP Consultum Conference NZ

Allan Hall named Financial Planning High Achievers

Consultum Announces Winners of 2023 Reward & Recognition Program

Consultum Financial Advisers, a full-service licensee providing support to a national network of financial advisers across Australia, announced the distinguished recipients of their 2023 Reward & Recognition program, unveiled during the National Conference ‘Connect 2023’ held in Auckland, New Zealand this month.

The Consultum Reward & Recognition awards program is a testament to excellence and dedication within the Consultum community. They spotlight the outstanding achievements and contributions of individuals and practices that have consistently excelled throughout the year.

This year’s program witnessed an exceptional level of competitiveness, featuring an array of nominations that showcased Consultum’s member talent pool. This year’s Consultum’s High Achieving members were recognised with 10 Financial Planning firms across Australia.

Allan Hall Financial Adviser Rob Bell expressed congratulations to all who participated, underscoring the spirit of collective recognition within the network.

“We remain grateful for the ongoing dedication and passion of our team, whose collective efforts propel our performance to new heights,” Rob said.

Last year, Allan Hall Financial Planning was recognised by Consultum by naming Laura Staddon Support Person of the Year 2022.

CONTACT ALLAN HALL FINANCIAL PLANNING 

teaching financial responsibility

Teaching children healthy money habits

Set a good example for your children with just a few simple changes

As a parent, you try to ensure your children have the skills to make smart financial decisions. But did you know that you could be sending them negative money messages without meaning to?

Here are some useful ways you could teach your children healthy money habits.

Revealing the magic behind digital money

Your children have likely seen you pay for hundreds of transactions without glimpsing cash changing hands. For small children, it can seem like money problems are solved with magic – just wave or tap a plastic card. This makes it important to discuss the value of money with them. A good way to start is to explain how your earnings get deposited into your bank account and how you use this account to pay bills. For older children, consider showing them how taxes are deducted from your salary.

Spending wisely

Frequently buying things on impulse could send the message that it’s fine to spend without planning. Sticking to a budget is key to avoiding impulse buying. To set an effective budget, consider working with a professional financial adviser. Your adviser may help develop a budget that factors in your income, expenses and financial obligations.

Teaching them independence

It’s convenient to do everything for your children. But by giving them a chance to have their own money and decide how and where to spend it, they could learn powerful lessons about budgeting. For adult children, always offering them financial help can create a cycle of dependency. Letting them make their own money decisions could help them develop financial responsibility.

Including them in budgeting

Many parents keep household financial planning and budgeting to themselves. While you don’t have to fully involve your children in managing your family’s finances, giving them a role to play, such as getting them to do grocery shopping using a set budget, can teach them lessons about money. If your children are old enough to earn some income, why not get them to pitch in to help achieve a family goal?

Using your influence positively

You can strongly influence your children in relation to money, so it’s important to pass on smart money management skills. If you don’t know where to start, consider reaching out to your financial adviser to help you stay on top of your finances through proper planning and budgeting.

CONTACT ALLAN HALL FINANCIAL PLANNING

General Advice Warning

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs and, where appropriate, seek professional advice from a financial advisor.

This site is designed for Australian residents only. Nothing on this website is an offer or a solicitation of an offer to acquire any products or services, by any person or entity outside of Australia.

Mark O’Connell, Robin Bell, Martin Cimino, Angelo Adam and Allan Hall Financial Planning Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323.

2022 Consultum award Laura Staddon

Consultum National Conference 2022 Award

Laura Staddon awarded Consultum Support Person of the Year

Financial Planning dealer group Consultum celebrated the achievements of their Financial Planning member firms who stood out over the past year at their national conference in Port Douglas this month.

Allan Hall Paraplanner, Laura Staddon, was named Support Person of the Year and Allan Hall Financial Planning was named a High Achiever Top 15 firm.

AHFP Principal Adviser Mark O’Connell said he could not speak highly enough about Laura’s work ethic, attention to detail and outstanding technical knowledge.

“She has absorbed, dissected and put into place the unbelievably complex compliance requirements that are now imposed upon us,” said Mark.

“Nothing is too much trouble and Laura’s positive, cheerful demeanour never changes.”

The success of a practice depends heavily on the support staff within it.

Assessment for this award is based on capabilities which might be linked back to one or all areas of client engagement, technology enablement, efficiency, process execution, drive and professional conduct.

“Laura is our Senior Paraplanner but also is essentially the Office Manager,” Mark added.

Consultum CEO Peter Ornsby said, “A big congratulations to the finalists and winners of our FY22 Reward & Recognition program. We should be extremely proud of the talent we have within our group, and this year’s award winners are an absolute testament to this exceptional quality.”

Allan Hall Business Advisors was also named Wellness Program of the Year winner by the 2022 Australian Accounting Awards and Best Business Advice Firm, Best Self-Managed Super Fund Firm and Best Auditing Firm by FirmChecker. Allan Hall is a previous award recipient of Australian Firm of the Year (2021) and is an AFR Top 50 accounting firm.

CONTACT ALLAN HALL FINANCIAL PLANNING

Be in control of your retirement

Be in control of your retirement

Are you approaching retirement?

Then chances are the funding of your lifestyle in retirement may be on your mind.

Take steps now to avoid getting caught short on retirement income and live the retirement lifestyle you want.

The qualifying age is increasing by six months every two years until it reaches 67 in July 2023. The Age Pension age increased to 66 and a half on 1 July 2021.

If for example, you are planning to retire at 60 you will need to wait until you’re 67 before you can apply for the Age Pension. You’ll have to rely on your own savings and super in the interim, making it crucial to ensure you have enough money put away for later years. But the good news is that there’s still time to grow your retirement savings.

Boost your super

Contributing more to your super can be a reliable route to bolstering your retirement fund. By making extra contributions through salary sacrifice, you can grow your super and at the same time reduce the amount of income tax you pay. The government will tax your salary sacrificed contributions, within the allowable concessional contribution cap, at 15 per cent, which may be much lower than your marginal tax rate.

Making non-concessional or after-tax super contributions is another option. Generally, you can contribute up to $110,000 each financial year if your total super balance is less than $1.7 million at 30 June of the last financial year. To understand how these contributions work, it’s wise to get professional advice.

Beef up your savings

Your personal savings outside of super can supplement your super payments in retirement. But are they growing enough now to provide you with some level of income when you retire?

To build up your savings, you may have to invest part of it and make sure it’s growing faster than the rate of inflation over the long term. You should seek professional advice to see what investments are appropriate for you.

Know your entitlements

Besides the Age Pension, you may be eligible for other government benefits and concessions. For example, you may be eligible for a concession card such as the Pensioner Concession Card (if you are receiving the Age Pension), Commonwealth Seniors Health Card or the state-based Seniors Card. Concession cards like these may entitle you to discounts on some commercial and public services. Concessions that allow you to buy prescription medicine at a discount may also be available.

But keep in mind that these benefits have strict eligibility rules. There’s also no guarantee that these entitlements will still be available by the time you retire. So, take charge of your retirement.

Working with your financial adviser, you can develop a strategy that helps ensure you’ll be well provided for regardless of changes to pension policies.

CONTACT ALLAN HALL FINANCIAL PLANNING

General Advice Warning

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Mark O’Connell, Robin Bell and Allan Hall Financial Planning Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323.