The Autumn Edition of ‘Your Personal Wealth’ comes to you with our compliments. As we emerged from the year 2020, we can feel somewhat relieved that we live in this wonderful land. Unfortunately, many small and medium businesses may never recover from their tragic situations. We do feel sorry for their plight and trust that they find a way forward.
The markets have reached a point that many feel is unsustainable even though, looking forward, the economy seems to be recovering rapidly. With inflation only at a small number, the Reserve Bank can continue pumping substantial sums into the economy and the Government can run large deficits. At some point however, there must be a reckoning. There is a chance sometime this year for a severe correction in the stock market. Accordingly, it may be prudent to look at portfolios for any obvious weaknesses and take action sooner rather than later. If you would like to discuss this, please call.
The article concerning the indexation of the transfer balance cap only highlights the absurdity of this nightmare. Would it not have been simpler to tax pensions as ordinary income with appropriate rebates? This system has successfully operated for many years prior to 01/07/17. But such is Government!