In 2016, Share market volatility has become a daily part of news headlines.

The unusual volatility that has taken hold of financial markets in recent weeks is resulting in some impressive moves up in asset prices and many more harrowing declines. Analysts suggest this will be with us for a while.

It's only natural to be concerned about how these fluctuations might be affecting the value of your investments. It can also be tempting to take actions that, in the longer term, may prove to be inappropriate.

Everyone has heard of the term "market volatility" but what is it exactly?

Market volatility is the term given to the investment market when prices go up and down this can sometimes be sudden and unexpected. The cause of volatility is anything that could potentially affect company earnings.

The Global Financial Crisis in 2008 is a perfect (albeit extreme) example but it highlights how volatile share prices can be. Today, with changes in emerging markets, the price of key resources and the on-going disputes in the Middle East, we are experiencing a return to volatility.

When it comes to dealing with the volatility, it is important not to get distracted by short term movements in financial markets even the good ones. Instead, it is best to stick to your long term strategy based on your circumstances, risk tolerance, goals and recommendations from your Adviser.

In most cases, the longer you stay invested, the more likely it is that you will ride out the highs and lows of market volatility.

Investment markets can and do change overnight. They are affected by other markets, the publication of annual and bi-annual results; political and economic changes around the world and rumours! But that doesn't mean you have to change with them. Here is some information to help you stay focused on what's important.

1. Stay calm
Do not rush any investment decision.

2. Diversify your investments
It's notoriously difficult to predict what's going to be the best performing asset class in any given year. Diversifying investments across asset classes allows you to benefit from each year's best performing asset classes. It can also help you smooth out the volatility of your returns.

3. Spend time in the market
One of the most powerful features of long-term investing is the ability to benefit from compound returns. By staying invested, as opposed to regularly entering and exiting the market, your investments have more time to grow and earn returns.

4. Monitor and review your investment strategy
Like most things in life, it's a good idea to regularly review your financial plan to make sure it's still right for your current financial situation.

5. Seek professional financial advice
A Financial Adviser can help ensure your strategy meets your needs, and even help you update it as your circumstances change. With a clearly defined strategy and goals, you can have the confidence you need to withstand market fluctuations.

Why not schedule a meeting with your Financial Adviser now to discuss any concerns?

 

Disclaimer
Information current as at 24 March 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.

One of the biggest challenges we have when planning for our financial security is determining the difference between what we really needand what we'd like.

Working with a financial adviser can help identify the difference. This happens when the relationship is first established: when the adviser becomes familiar with your lifestyle, career and financial situation. The adviser will work with you to determine your tolerance for risk and identify those things that are really important to you.

Many things can influence what people want and how they choose to manage their finances. And, these things can change over time. Similarly, legislative and economic factors change.

When planned and managed astutely, the review is one of the most powerful advice and relationship activities provided by financial advisers. Regular review meetings are important to ensure the existing financial plan is always working as best as it can and is still relevant.

Periodic reviews can be far more than a compliance requirement. They provide the opportunity to proactively manage the achievement of financial goals.

In the review meeting you are encouraged to address possible changes to the following issues. Your adviser can then make subsequent recommendations to adjust your financial plan accordingly:

• financial planning needs and objectives
• income and expenditure
• family situation and health
• life insurance needs
• deductible and non-deductible debt
• the economic environment
• investment and superannuation portfolio performance
• taxation position and any relevant changes in the current tax law
• any opportunities to reduce tax payable
• social security issues
• new investment opportunities

While this is not a conclusive list, it suggests a long list of what can change and the issues to address when participating in an ongoing financial planning review.  Ultimately, this is an opportunity for your adviser to demonstrate their competence and commitment to helping you achieve your goals.

Are you happy with the service being provided by your adviser? Maybe it's time to seek out advice from a Clearview adviser.

Why not schedule a meeting with your financial adviser now?

Disclaimer
Information current as at 17 March 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.

A serious injury or illness can make it difficult or impossible for you to continue to work. If this happens, you will need to find a way to support yourself and your family.

Total and permanent disability cover (TPD) is designed to take the pressure off you financially if you suffer an injury or illness that leaves you totally and permanently disabled. 

It is almost always purchased together with life cover and can provide a lump sum payment paid to yourself generally after a medical specialist has advised that you will never work again due to your injury or illness.  The payment is most often used to clear out debts, provide funds for medical costs and annual income streams to ensure you maintain the best quality of lifestyle possible.

Each insurer has different definitions of what is and isn't considered to be totally and permanently disabled. Depending on the policy you choose, they may define TPD as either when:

1. You can't work again in any occupation, or
2. You can't work in your usual occupation

for which you are reasonably suited by education, training or experience.

Have you thought about what you would do if, all of a sudden, you could no longer work?

Your Financial Adviser can assist with personal life insurance to protect your income in the event of death, injury or illness.  To find out whether you have appropriate and accurate cover, why not schedule a meeting with your financial adviser now?

Disclaimer
Information current as at 10 March 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.

Have you thought about what would happen to you and your family if suddenly you found yourself unable to work?

Would you be able to support your family if you were injured or sick and needed to take several months off work?

Income protection insurance, sometimes known as salary continuance, can help provide you with income to manage your expenses if you are unable to work for a certain amount of time.

Unlike other life insurances that are paid as a lump-sum, Income Protection is a monthly benefit that pays you up to 75% of your income and covers you for accidents, illnesses or major traumas. It generally pays you up until you return to work (after your waiting period) or, if you can't return, up until the benefit period. This can be up to age 65 depending on the policy and your occupation.

Income protection is tax deductible and is designed to ensure that you can continue to pay the mortgage, general household expenses and carry on financially until you are able to return to work.
It is an important part of an insurance portfolio for anyone who is the main income earner for their family or for anyone who relies on the income from their ability to work especially self-employed people or professionals.

Each income protection policy has its own definition of disability and range of benefits. Some important options you need to consider when choosing an income protection policy include:

• Waiting period - this is the amount of time before you can make a claim.  It can be anywhere from 30 days to 2 years.
• Benefit period - this is the length of time the income payments will be made. Generally, the benefit period ranges from 2 years to age 65.

Your Financial Adviser can assist with personal life insurance to protect your income in the event of death, injury or illness.  To find out whether you have appropriate and accurate cover, why not schedule a meeting with your financial adviser now?

Disclaimer
Information current as at 3 March 2016 - This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.