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Market movements and review video – December 2023

Stay up to date with what’s happened in markets and the Australian economy over the past month.

Consumer prices eased by more than expected in October. The news that inflation may have been tamed means interest rate rises may be behind us, for now.

Even the Organization for Economic Cooperation and Development (OECD) is optimistic about our economic recovery, predicting rate cuts from late 2024.

The ASX200 regained most of its October losses through November. Hopes the US may be ceasing its interest rate hikes impacted investor sentiment, as did the better than expected inflation figures locally.

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Market movements & review video – December 2022

Market movements & review video – December 2022
It’s December, summer is here and holidays are just around the corner. We take this opportunity to wish you and your family a happy festive season!
Stay up to date with what’s happened in the Australian economy and markets over the past month. The big story on the global economic front continues to be inflation, and how high interest rates will go to tame it. In Australia, Reserve Bank governor Philip Lowe is watching consumer spending,…
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Plan for someone else to succeed

Business Owners Insight: Navigating the side hustle minefield – Intergenerational Wealth 2019 Video

As a business owner, you spend your working life focused on succeeding.… but who will succeed you?

When it’s time for you to let go of the wheel, or if something happens and you’re forced to, who will take your place? And more importantly, how? And how well?

Business succession requires a lot of careful planning and a great deal of experience to navigate the many shoals and reefs that stand between you and a successful outcome.

Here are just a few of the main elements that typically need to be put in place to ensure the business transitions smoothly and without losing value.

You need to consider:

Contingency plans
When everything is going smoothly it’s easy not to think about what would happen if you hit a rough patch. The stark reality is that there are a great many contingencies that could stand between you and a successful transition of ownership.

Business insurances
Many of these contingencies can be covered by business insurance policies – key person insurance, buy/sell insurance, business continuance insurance, professional and public liability insurance – to name a few. But precisely what type of cover do you need? Who are the best insurers? What are the tax implications?

Transition planning
When the time comes for your succession to happen – and this may not be under your control – who’s going to steer the ship until the actual transition to the new owner is complete – especially if you’re not around to do it?

Tax Implications
This part is really complex – requiring specialist tax advice to ensure that you end up with the optimum setup for your business ownership and policy ownership. Suffice to say this is absolutely critical as tax can decimate the net proceeds that actually flow to you or your successors.

What’s required here is a professional pilot to guide you through the process – the planning and the implementation. Safely and successfully. Talk to us today on (03)9326 1594.

RI Advice Group Pty Ltd ABN 23 001 774 125, AFSL 238429. The information (including taxation) is general in nature and may not be relevant to your individual circumstances. You should refrain from doing anything in reliance on this information without first obtaining suitable professional advice. You should obtain and consider a Product Disclosure Statement (PDS) before making any decision to acquire a product.

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Business Owners Insight: Navigating the side hustle minefield

Business Owners Insight: Navigating the side hustle minefield – Intergenerational Wealth 2019 Video

The side hustle – people running businesses “on the side”– is a global phenomenon 

In Australia it’s really taking off. NBN surveyed customers aged 16+. Of these, 41%* already have an online side hustle in play. That’s almost half of the population, and it’s forecast to keep growing It’s not just young millennials who are into it. It’s also stay at home parents, employees who are mid-career, people approaching retirement aiming to boost their nest egg and retired people too.

What’s driving the side hustle phenomenon?

• The internet has lowered the threshold – making it easier and cheaper to run your own business.
• Necessity – for many employees struggling with flat wages; and for retirees dealing with persistently low interest rates.
• Opportunity – to be your own boss, be financially independent, be wealthy.

Are you part of the side hustle phenomenon? Or do you know someone who is? Take heed: it’s a minefield out there…

ATO – If you’re caught with undisclosed income, not only will you have to pay tax on that, you may also suffer heavy penalties.

Centrelink – And if you fall foul of Centrelink not only could you lose your pension, you may have to repay any benefits wrongly received.

Employer – Employers have to be tough on side hustling and it could cost you your job.

CGT – You may have to pay Capital Gains Tax on your home which may be otherwise exempt.

Poor accounts – If you’re audited, go through a divorce or just want to sell your business, and you don’t have proper up to date accounts, it could be a nightmare.

Liability – What if an accident happens and a customer is injured or suffers a loss of some sort? Are you properly covered?

The ATO and Centrelink are cracking down on side hustles

Just because you’re a small fish doesn’t mean you’ll fly under the radar. The ATO and Centrelink have already begun to crack down on side hustlers – for the simple reason that it’s such a big part of our economy now.

*Source: NBN Survey 2017

The good news is you can navigate the side hustle minefield. All it takes is some professional help. Talk to us today on (03)9326 1594.

RI Advice Group Pty Ltd ABN 23 001 774 125, AFSL 238429. The information (including taxation) is general in nature and may not be relevant to your individual circumstances. You should refrain from doing anything in reliance on this information without first obtaining suitable professional advice. You should obtain and consider a Product Disclosure Statement (PDS) before making any decision to acquire a product.

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Is your business a threat to your family

Is your business a threat to your family – Intergenerational Wealth 2019 Video

When you start out in business, it’s usually quite straightforward. You start small and paddle like crazy to get through the first year or two. You have few employees, if any, and not a lot of business assets to protect.

Then, as business grows, things get busier and more complex. More people, more assets, more management issues, more to lose. It’s intensely satisfying but also stressful and time-consuming. You now have an asset worth protecting, but somehow there’s always something more important to worry about.

 

What if something goes wrong?

What if you were unable to work for a long period of time… or worse, if you were no longer around? Would the business fail without you? It’s not just your business that’s under threat; your family is too. Would they have to get involved? Would they
be able to steer the ship? Would they know what to do, or would they be “all at sea?”

Would they be lumbered with a mountain of burden and liabilities? It happens. And when it does, all that great work you’ve done; all the long hours and the stress, all the strain on your family, they come to nothing. Or worse.

 

Would your business survive a divorce?

What if you – or a business partner – went through a divorce? One in six marriages do end in divorce – and let’s face it, running a business does put a lot of strain on a marriage, so it’s a common event. Would your business survive? Sadly, few do.

 

So, before any of that happens, what can you do about it?

Is there anything you can do to avoid such a catastrophe? What can you do to ensure that all your hard work, all the fruits of your labour are brought safely home? The short answer to both questions is “plenty”.

Talk to us today on (03)9326 1594 about how to get a professional, comprehensive plan in place to protect the people you love from your business – and also protect your business.

RI Advice Group Pty Ltd ABN 23 001 774 125, AFSL 238429. The information (including taxation) is general in nature and may not be relevant to your individual circumstances. You should refrain from doing anything in reliance on this information without first obtaining suitable professional advice. You should obtain and consider a Product Disclosure Statement (PDS) before making any decision to acquire a product.