Posted by Franz Huber on May 03, 2019
It's quite bewildering trying to determine how the policies of the various political parties will affect one's own situation. If Franking Credits were removed, how will this affect the stock market and in particular that little nest egg you have squirreled away over the past several decades of working 12 hour days? What about the removal of Negative Gearing? What about the halving of the Capital Gains Tax discount? And most importantly: Whom can you trust??
 
One of the seldom mentioned benefits of belonging to a Rotary Club is that quite often there is an expert in a particular subject right among the members! Not only is he or she there, but you can be reasonably certain that trust is not misplaced. So, last Wednesday our very own Charles Thomasson, who is a partner at Wilson's Advisory, gave us a good run down on the major items one has to consider.  Keeping strictly within the boundaries (Rotary is NOT involved in politics), Charles addressed the major aspects. As he is, by law, compelled to do, Charles also made it quite plain that anything he says is general advice, not specific to anyone's personal situation: Here is the official wording:
Charles gave the example of how a portfolio of an investor with a ‘Balanced’ Risk Profile could look. A risk profile is an assessment of an investor’s tolerance to investment risk. It is a key aspect of portfolio construction and is critical to determining appropriate asset allocation, recommended investments and target returns. The Wilsons Risk Profile is attached. The advice contained in this document is general advice. It has been prepared without taking account of any person’s objectives, financial situation or needs.
 
So, how will the stock market react?  "Who knows?" was Charles' response, "but it is unlikely to make a big difference, simply because the policies of all parties have been out there for months beforehand, and generally the eventualities are already calculated in."  Of course, there was lots and lots of other questions answered. Questions kept coming, all where competently answered.  What? Sorry, you should have been there yourself!  But, once the dust has settled, Charles promised to come back and give us an assessment of what will likely be happening once we know who will (or attempt to run) our wonderful country for the next three years. Stay tuned!
 
On the Download Section (right hand side), you will find Wilson's Risk Profile summary.  Of course, you can contact Charles directly: Charles.Thomasson@wilsonsadvisory.com.au