Benchmark Financial Services in Caulfield North, Victoria | Financial planner

Benchmark Financial Services

Locality: Caulfield North, Victoria

Address: 5/115 Hawthorn Road 3161 Caulfield North, VIC, Australia

Website: http://www.benchmarkfin.com.au/

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24.01.2022 SUPER FUNDS POSTS FIRST LOSSES IN 11 YEARS According to research group ' Chant West', the just completed financial year's median growth (Super) Fund will have returned a negative 1.3%. This result may be a disappointment to some members, but it’s important to remember that funds have had an unprecedented run for over 10 years, returning an impressive 8.2% per annum since the GFC low point in early 2009. That’s well ahead of the typical return objective which translates to abo...ut 5.5% per annum over the same period. Last financial year's estimated losses would make it only the fourth negative year in 28, an average of one every seven years. The typical risk objective for growth funds is no more than one negative year in five so Funds will easily have achieved their risk objective as well as their return objective. This is great outcome in the midst of a 'once in a lifetime' event/pandemic and builds on the many positive conversations we have had with valued clients, about recent and longer term portfolio returns.

20.01.2022 INTEREST RATES CUT AGAIN The Reserve Bank of Australia (RBA) has cut official interest rates to 0.75 per cent, bringing the cash rate to an unprecedented low amid rising concerns about the state of the economy. The move, which was tipped by markets, comes on the back of rising unemployment and low wages growth as international headwinds dent business confidence and raise concerns among central bankers.... Sydney and Melbourne's property markets are set to benefit from the cheaper credit, as prices start to return to their pre-downturn heights. According to CoreLogic figures released on Tuesday, house values in Sydney and Melbourne jumped 1.9 per cent in September.

20.01.2022 HOW MUCH INCOME DO I NEED IN RETIREMENT? One of the most frequent areas of financial advice that we deal with, is retirement planning. The strategies that we recommend to clients is dependent on the level of income they wish to achieve in retirement. This is often a difficult question for clients to answer, as everyone has different standards of living. The Association of Superannuation Funds of Australia (ASFA) have a 'retirement standard' that benchmarks the annual budget n...eeded by Australians to fund either a comfortable or modest standard of living in the post-work years. It is updated quarterly to reflect inflation. See below the current budgets which ASFA deem to be 'modest' and 'comfortable': See more

18.01.2022 RATES CUT AGAIN! After not acting for almost three years, the Reserve Bank of Australia (RBA) is well and truly on the move. Cutting the official cash rate to a new historical low last month, the RBA has once again cut rates today, to an even 1%. That was in line with the majority consensus from Australian economists, including all four of the major banks.... It comes as property market declines in some Australian capital cities appear to be slowing. Domain economist Trent Wiltshire is of the majority view that the RBA will cut again later in the year to bring the interest rate to 0.75%, which will help ease property woes. Interest rates cuts will be the key driver of prices bottoming out sooner rather than later, he told Business Insider Australia. Lower rates have seen retirees and investors in general, move to equities, where dividend yields have remained stable or increased in recent years.

18.01.2022 TAKING PERSPECTIVE FROM HISTORY In 1830, T.B. Macaulay (British Historian) wrote in reply to the pessimists of his day: "We cannot absolutely prove that those are in error who tell us that society has reached a turning point - that we have seen our best days. But so said all who came before us, and with just as much apparent reason... On what principle is it that, when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?" ... Despite the coronavirus possibly being a once in a lifetime event, from which many people feel global economies will never recover, it is worth taking some perspective from history and similar times of gloom. Real world GDP (accounting for inflation) is up over 1,500% since Macaulay wrote the above passage. The cost of a candle in 1800 allowed for one hour of use and cost six hours of labour. Today that same amount of light costs less than a second of human labour. We already live in a period of exceptional innovation (medical and technological). The current crisis will most likely lead to more advanced innovation and at some point in the not too distant future, today's crisis will be a distant memory, just like the many that civilisation has experienced, and improved from, in the past.

18.01.2022 BENCHMARK AWARD NOMINATION Whilst our focus is on achieving industry leading service levels and assisting clients with reaching their financial goals, it was great to recently be nominated for FSP's National Practice of the Year Award. There are some 150 practices across the FSP Dealer Group and we were pleased to be nominated alongside four of our colleagues. We didn't manage to win the award, however David and Rosanne would like to thank our wonderful staff and valued clients for helping us to achieve this nomination!

17.01.2022 SUPER FUNDS POSTS FIRST LOSSES IN 11 YEARS According to research group ' Chant West', the just completed financial year's median growth (Super) Fund will have returned a negative 1.3%. This result may be a disappointment to some members, but it’s important to remember that funds have had an unprecedented run for over 10 years, returning an impressive 8.2% per annum since the GFC low point in early 2009. That’s well ahead of the typical return objective which translates to abo...ut 5.5% per annum over the same period. Last financial year's estimated losses would make it only the fourth negative year in 28, an average of one every seven years. The typical risk objective for growth funds is no more than one negative year in five so Funds will easily have achieved their risk objective as well as their return objective. This is great outcome in the midst of a 'once in a lifetime' event/pandemic and builds on the many positive conversations we have had with valued clients, about recent and longer term portfolio returns.

16.01.2022 BUSINESS AS USUAL @ BENCHMARK! We continue to follow the advice from the Government and health officials to keep you, and our team, safe. However, we are open for business (working as hard as ever) and keeping an eye on the fluctuating markets & legislative changes for all our valued clients. Stay safe, stay well, and remember we are here for all your financial advice related queries... or just for a chat if you've been in isolation for too long!

16.01.2022 JOBKEEPER PAYMENTS The Federal Government has introduced the jobkeeper payments scheme to assist businesses (and their employees) who have been most effected by the economic fallout of Coronavirus. Businesses are eligible if revenues have dropped by over 30% or 50%, depending on their initial revenues. If your business has experienced material revenue falls, it is important to discuss the matter with your accountant and ensure you are eligible for payments. Employees who have lost jobs during the crisis may receive these payments, in addition to those who are still working. See our graphic below for a basic summary:

15.01.2022 WISHING YOU ALL THE BEST FOR 2020! Benchmark's wonderful staff took Rosanne and David for an end of year breakfast this week, to celebrate an interesting 2019 which saw continued change in the financial advice industry and record high stock markets globally. As always our focus remains on providing clients with industry leading service levels and assisting them with strategies to reach financial goals.... We wish all our valued clients and associates all the best for 2020 and a safe & happy festive season. See more

14.01.2022 AUSTRALIAN SHARES HIT RECORD HIGH The Australian share market has eclipsed its pre-GFC all-time high, with the All Ordinaries index finally breaking through the record it set more than 11 years ago. After six straight months of gains, the All Ords index rose 11.7 points, or 0.17 per cent, on Thursday last week, to hit 6,874.1 points shortly after the market opened.... The All Ordinaries' previous intra-day high was 6,873.2 points, set on November 1, 2007. Amid the turmoil of the GFC, the All Ords lost 54 per cent in the next 16 months and bottomed out at 3,111.7 points on March 6, 2009. Subsequent Government intervention ('bailing out' the banks) and record low cash rates, along with ever-improving employment levels, has seen global markets stage a massive recovery.

13.01.2022 CORONAVIRUS DEATHS HIT 1,000 There has been much publicity around the outbreak of Coronavirus, which started in the Chinese city of Wuhan. The number of related deaths now sits above 1,000, which is above the SARS epidemic of 2002/03. The link below provides a live map of confirmed cases and deaths worlwide, related to coronavirus.... https://www.bloomberg.com//2020-wuhan-novel-coronavirus-/

13.01.2022 LIFE INSURANCE CLAIMS THROUGH AN ADVISER MOST LIKELY TO BE PAID A comprehensive 2016 life insurance survey by the corporate regulator, Australian Securities and Investments Commission (ASIC), found insurance claims were declined in just 7 per cent of instances when a financial adviser was involved. Life insurance claims through a superannuation fund (known as group insurance) were declined in 8 per cent of cases while direct life insurance (sold through the Internet or a call centre), were declined in 12 per cent of cases. The reasons an Adviser is likely to provide the best outcome is quite often a result of a more comprehensive/tailored application process and a better understanding of the products that are suitable to their clients.

11.01.2022 UBER'S LATEST INNOVATION Uber Money. The latest expansion by the ride-sharing giant is changing the way workers get paid. By setting up their own Uber debit cards, drivers and couriers have instant access to their earnings. No more waiting for weekly pay day. But that’s not all. The Uber Visa card also grants drivers 3-6% cash-back on fuel purchases. After much recent negativity around the 'gig economy', in which Uber is a pioneer, this development is a major positive for Uber drivers.

10.01.2022 TAKING PERSPECTIVE FROM HISTORY In 1830, T.B. Macaulay (British Historian) wrote in reply to the pessimists of his day: "We cannot absolutely prove that those are in error who tell us that society has reached a turning point - that we have seen our best days. But so said all who came before us, and with just as much apparent reason... On what principle is it that, when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?" ... Despite the coronavirus possibly being a once in a lifetime event, from which many people feel global economies will never recover, it is worth taking some perspective from history and similar times of gloom. Real world GDP (accounting for inflation) is up over 1,500% since Macaulay wrote the above passage. The cost of a candle in 1800 allowed for one hour of use and cost six hours of labour. Today that same amount of light costs less than a second of human labour. We already live in a period of exceptional innovation (medical and technological). The current crisis will most likely lead to more advanced innovation and at some point in the not too distant future, today's crisis will be a distant memory, just like the many that civilisation has experienced, and improved from, in the past.

09.01.2022 HOW IS THE GOVERNMENT STIMULUS FUNDED? Many Australians rightly want to know how the Government can possibly pay out hundreds of billions of dollars during the current crisis. With so many people losing jobs and economic activity at a standstill, how can they afford to support our economy? We found a great article in The Age that explains in simple terms how the Government takes on debt to fund its spending, particularly during these very uncertain times. And the good news is that we are in a much better position than many other developed nations who have a far higher level of debt (as a percentage of GDP) than Australia https://www.theage.com.au//where-will-all-the-money-come-f

09.01.2022 MICROSOFT PLEDGE TO GO CARBON NEGATIVE The 44-year-old Microsoft Corp, worth $1.27 trillion, recently promised it would be carbon negative by 2030. That’s a big departure from most companies’ assurances they’ll go carbon neutrala promise that often means business as usual while paying other people to pollute less. With a combination of supply chain shifts and new technology, Microsoft has pledged to effectively become a net benefit for the environment. A decade from now is a long way off, so let’s not congratulate the Seattle giant too much just yet. By its own admission, adequate carbon-removal technology to meet its biggest goals doesn’t exist yet. To help it along, the company will plow $1 billion into a climate innovation fund.

07.01.2022 FINANCIAL ADVISER EXODUS CONTINUES The number of financial advisers leaving the Industry has accelerated, with 1,759 ceased advisers in quarter 2 of 2019, eclipsing the 1,066 that abandoned their authorisation in Q1, new research from Adviser Ratings revealed (refer to image below). Mark Hoven, chief executive at Adviser Ratings, says the trend is fuelled by a combination of the Hayne royal commission, advisers walking away from 'in the spotlight' institutions, the incoming r...emoval of grandfathered commissions and the possible removal of insurance commissions, as well as new education standards. At Benchmark Financial Services, we recently celebrated 12 years in business. Our focus from day one has been high customer service levels, tailored client strategies and a remuneration structure which is transparent (and not reliant on commissions). The challenges facing our Industry have certainly resulted in ever increasing paper work and red tape, however have not changed our primary focus on meeting clients' financial goals & objectives. This focus will continue, as the broader adviser exodus continues, resulting from sections of the industry's focus on their own back pockets, rather than their clients.

04.01.2022 CHANGES TO LIFE INSURANCE DISCLOSURE REGARDING GENETIC TESTING. Following industry consultation, the Financial Services Council has approved changes in relation to genetic testing. The resulting moratorium limits the use of genetic test results when assessing applications for life insurance.... This means Australians now have access to life insurance without the need to disclose an adverse genetic test result and, where relevant, can choose to disclose a favourable test result. The moratorium came into effect from 1 July 2019 and will be in place until at least June 2024. It will also be included in the updated Life Insurance Code of Practice. The amount of cover in place or being applied for is considered before genetic test results can be used in the assessment. The moratorium limits are as follows: $500,000 Life and Total and Permanent Disability cover $200,000 Trauma cover $4,000 per month Income Protection and/or Business Expense cover If the total cover exceeds these amounts, the Insurer may ask for results of a previously taken or planned genetic test. Genetic testing as part of research projects where individual results are not provided do not need to be disclosed. When considering Life Insurance, it is important that you consult with a financial adviser to work out the amount of cover that suits you, in addition to ensuring you are educated with current disclosure standards such as those outlined above.

03.01.2022 A DECADE OF TECH EVOLUTION Another decade of astonishing growth in the tech sector leaves many of us wondering where we will be by 2030. Companies such as Uber were scarcely known and Facebook hadn't even listed on the stock market yet (it is now worth over $US600 billion). The graphic below shows some of the great innovations of the 2010's and no doubt there will be some similar game changers in the sector over the coming 10 years!

02.01.2022 SILVER LININGS ON CORONAVIRUS We have had plenty of negative headlines and witnessed the extreme market volatility lately, as a result of the spread of coronavirus. However, there are some positive factors which will come in to play and provide a stabiliser for global markets. It is a matter of when these occur, not if: First, a vaccine will likely be developed in the next 12 months (human trials have already begun).... Second, there is likely to be an effective anti-viral drug available within six months with human trials now being completed in China. And, finally, there is evidence that the virus struggles to spread in warmer climates, with just one case in South America, few in Africa or south-east Asia, and clear containment in Singapore and Hong Kong. There is hope that as with the flu, COVID-19 will fade during the northern hemisphere’s summer. For the next few months we may have market rebounds on news flow from central banks (rate cuts) and government fiscal stimulus. Daily movements in global cases of the virus and related deaths will also have a big influence on global markets.

02.01.2022 HOW $10K EARLY ACCESS WILL EFFECT YOUR SUPER Whilst some Australians really do need quick access to cash, and are taking advantage of the new early Super withdrawal rules, others should think carefully before taking advantage of this new COVID-19 related measure. The goal of Super is to provide an income stream at retirement. To provide for a long retirement, you need your Super to grow during working years. Withdrawing $10k (or $20k over two years under the new measures), can have a substantial long term effect on your retirement savings. See the table below (courtesy of Vanguard, assuming a conservative long term 6% per annum return), for how it could impact your Super!

01.01.2022 JOBKEEPER PAYMENTS The Federal Government has introduced the jobkeeper payments scheme to assist businesses (and their employees) who have been most effected by the economic fallout of Coronavirus. Businesses are eligible if revenues have dropped by over 30% or 50%, depending on their initial revenues. If your business has experienced material revenue falls, it is important to discuss the matter with your accountant and ensure you are eligible for payments. Employees who have lost jobs during the crisis may receive these payments, in addition to those who are still working. See our graphic below for a basic summary:

01.01.2022 HOW FOLLOWING MEDIA HEADLINES COULD COST YOU A FORTUNE We've all heard the recent doom & gloom from mainstream media in regards to global markets (Trade Wars, Civil Unrest in Hong Kong, Markets have Peaked etc etc). Shares are volatile in the short term, and that's just the way we like it. We help clients gain in the long term, from the short term concerns that costs other investors fortunes (often thanks to reading media headlines warning of another financial crisis). We cam...e across some interesting headlines/statistics, comparing market warnings from the media with returns on the ASX200 share index since: ASX to open lower as recession fears haunt Wall St -- Australian Financial Review (5 days ago) +1.1% US Trade War Spooks Stock Market, Worry About Recession -- Bloomberg (May 13) +4.6% Wall Street reels as US-China trade spat and falling oil prices spook investors -- Proactive Investors (June 19, 2018) +8.0% 'Peak' earnings concerns spook Wall Street -- AFR (April 25, 2018) +11.5% Global recession fears spook Wall Street -- CBS (August 19, 2011) +60.7% Slow Growth Stirs Fears of Recession -- Wall Street Journal (July 30, 2011) +46.5% No one can accurately predict market movements from week to week, let alone year to year. However history has proven that a disciplined investment plan is the best way to build long term wealth - no matter what the media says over the short term.

01.01.2022 HOW $10K EARLY ACCESS WILL EFFECT YOUR SUPER Whilst some Australians really do need quick access to cash, and are taking advantage of the new early Super withdrawal rules, others should think carefully before taking advantage of this new COVID-19 related measure. The goal of Super is to provide an income stream at retirement. To provide for a long retirement, you need your Super to grow during working years. Withdrawing $10k (or $20k over two years under the new measures), can have a substantial long term effect on your retirement savings. See the table below (courtesy of Vanguard, assuming a conservative long term 6% per annum return), for how it could impact your Super!