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THE ALLIOTT INVESTMENTS REPORT NOVEMBER 4, 2009
The key focus of Alliott Investments is the prudent and disciplined approach to the creation and protection of our clients wealth.
IN THIS UPDATE
Minimising business risk
Australia
WHAT WILL YOU DO IF YOUR BUSINESS PARTNER GETS SERIOUSLY ILL?
The likelihood of something happening to you or your business partners before 65 is illustrated by this example for a partnership with three people.
|
Average Age of
Partners
|
Probability of at least one dying before age 65
|
Probability of none dying, but at least one becoming disabled for six months or longer
|
Probability of all three surviving and not becoming disabled
|
|
35
|
41%
|
20%
|
39%
|
|
45
|
39%
|
18%
|
43%
|
|
55
|
30%
|
14%
|
56%
|
It is important to have a strategy to get you through the temporary or permanent loss of a business partner.
We are able to assist with developing your strategy and how to minimise the financial implications.
Call our business risk expert Gerard Gill on (09) 520 9200 or click here to arrange a time to discuss the options or audit your current plan.
AUSTRALIA
Why are we talking about opportunities in Australia, again?
Their Reserve Bank raised interest rates this week, which is the second month in a row they’ve done so. This indicates real confidence in the strength of the economy there, so much so that they believe it is necessary to raise rates now to head off the economy overheating!
By contrast, the NZ Reserve Bank sees no chance of a need to raise rates here until well into 2010, at the earliest. This is so even though our rates, traditionally ahead of Australia’s, are currently 1.00% behind theirs. This is a big hint for investors that Australia is probably a happy hunting ground of opportunity.
A sector we find attractive at this time is LPTs, or Listed Property Trusts and the ‘Listed’ means the units/shares are traded on the Australian sharemarket. Hammered without mercy in the markets through 2008 and most of this year, LPT prices are much lower than before.
But in many cases, trusts’ rental income is still about the same. Also, most trusts have raised share capital to reduce their bank loans.
Today you can buy into an Australian LPT to earn you a yield of around 7%, plus there maybe capital gains down the track. Those numbers look particularly good when you consider Australia is the only developed economy that did not go into recession 2008-09 and is the only one to have such good growth prospects that its central bank is raising interest rates.
So what are you waiting for?
Email db@alliott.co.nz or phone Alliott's on (09) 520 9200 and ask for David Burt or Alexandra McKenzie.
David Burt, Alliott Investments Limited
A copy of a Disclosure Statement is available on request, free of charge
ALLIOTT INVESTMENTS ADVISORS
INSURANCE AND KIWISAVER ADVISOR GERARD GILL
Gerard is an insurance consultant who operates his own independent brokerage company specialising in both business and personal risk protection and KiwiSaver advice.
In 2008 and 2009 Gerard was named Professional Investment Services (NZ) Adviser of the Year.
INVESTMENTS ADVISOR DAVID BURT
David is an independent investment specialist with responsibility for managing portfolios for many of Alliott NZ's clients.
He offers a consultancy service advising on such matters as reviewing the investment strategies of a family trust, appraising managed portfolios and calculating retirement or other personal funding needs.
David also can assist with the migration of UK pension funds to New Zealand and has found that, in most cases, a proportion of the funds can be immediately freed up as ready cash.
David Burt’s Disclosure Statement is available free of charge upon request.
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