eNews January 2011

Your monthly portfolio report

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Sam's Book release January 2011

We're very proud to announce the January release of Sam's first book, Financial Planning DIY Guide published by John Wiley and Son's Wrightbooks,.

With 1500 pre-orders from Dymocks, Angus and Robertson and other retailers, we are hoping for a successful launch.

This book would make a perfect gift for your family to introduce them to the concepts of financial planning, wealth management, estate planning, retirement planning and even the complex and confusing topic of aged care.

On sale over the next month in favourite retailer, it will retail for $34.95 or available from Henderson Maxwell at $29.95 plus postage (at cost) .

Rod Paykel joins the Melbourne team

Rod Paykel joined our inustrious Melbourne team on the 10th January 2011. Rod has 18 years experience, is degree qualified and hold a Certified Financial Planner designation from the Financial Planning Association. Rod will be working closely with Stretton and Amanda after Luke's sudden departure before Christmas. Rod specialises in retirement planning and his vast experience will be welcomed by our many retirees and pre-retirees.

Rod and Stretton will be calling over the next few days to organise a handover meeting and to ensure that everything is up to date, beyond our usual six-monthly review meetings. Rod can be contacted on 03 9654 8022 or at rod@hendersonmaxwell.com.au if you have any questions.

7.5% Fee Saving on the way to your managed account PLUS a large rebate since your inception as a managed account client

Following a recent application for a private ruling from the Australian Taxation Office, our managed account software supplier (Investment Administration Services- IAS) have successfully lobbied for an input tax credit rebate for all future GST for SMSFs (Self Managed Super Funds).

The good news is that it can be applied in retrospect for up to four years so further retrospective rebates will be made back into your accounts over the next few months.

This represents a real win for SMSFs and recognition of our pioneering of the managed account market in Australia. It also illustrates that with 430,000 self managed super funds Australia-wide, they are now a force to be reckoned with.

December and January- solid gains on the share market

The Australian Share market has continued to climb through December and January in light of improving economic data from the USA (unemployment down to 9.4%) and our own domestic improvements to unemployment. This flowed onto an imporvement on the share market of some 5.4% since the start of December which has flowed into your accounts.

Further improvements throughout February and March should be seen as reporting season kicks off in two weeks and dividends flow shortly after. As your tax returns will also be due in, you can expect a further 1.5% kicker (approx.) from the benefit of franking credits inside the fund. The "January effect" is in full swing in 2011!

Source: Etrade Australia

Queensland and Victorian Floods

The horrific images and devastation of the Queensland and Victorian floods has weighed heavily on our minds and our thoughts and prayers go out to the families of those affected. If anyone (or their families or friends) need financial advice as a consequence of the floods, Henderson Maxwell will be happy to provide that advice on a pro bono basis (no charge, no obligation).

Please call Sam Henderson on 1 300 665 439 and he will personally see to it that those affected are well taken care of. Please don't hesitate to call - there is never a silly question when it comes to your own money!

The share market moves in light of the floods

As a consequence of the floods, clients have been asking which stocks will be affected, both positively and negatively. We think that there may be a solid imporvement in the home building industry in Queensland, lowering of unemployment, a benefit to retailers selling furniture and electrical goods (such as Harvey Norman, JB Hi Fi) and building stocks such as Boral or James Hardie may benefit.

On the negative side of the equation, the insurers and banks will be negatively impacted owing to the cost of repairs for insurers and lack of interest in lending as people rebuild their homes and lives.

Following our Henderson Maxwell investment committee meeting this morning, we have made a few changes to the managed accounts to reflect the potential benefits in your portfolios.