Could ASX hit 6000 by dec? Buybacks on the cards? WHat are the top 6 ASX stocks to buy?

Extracts From afr

Investors could be in for a string of share buybacks from the likes of Telstra Corporation,Seven West Media and CSL, with Credit Suisse arguing improving cashflows and “the lowest cost of debt in a generation” have companies primed to give back to shareholders.

After successfully weathering “savage” macro headwinds in the three months to June 30 – including the collapse of the iron ore price, the rise of the Australian dollar and sluggish global growth – analysts are predicting a 6000 share market by the end if the year.

With cashflow growing and the “Australian credit market . . . providing a pre-tax cost of debt somewhere between 3.5 per cent and 5 per cent”, Credit Suisse argues companies are well placed to pursue buybacks that can boost earnings.

1. Telstra, which is widely expected to launch a $2 billion buyback when it reports its full-year earnings.
2. Seven West could launch a buyback at current prices,
3. Salary packaging firm McMillan Shakespeare is a prime candidate if its share price remains depressed.
4. Engineering group Downer EDI could also do a buyback, although Credit Suisse noted the company preferred acquisitions.
5. Automotive Holdings Group, which owns around 100 car dealerships in the country, was another candidate at its current low valuation.
6. CSL to launch another buyback during earnings season.

 Credit Suisse has tracked a basket of ASX stocks that have bought back more than 2 per cent of their shares and found that since 2006 the basket returned 21 per cent, compared to 6 per cent for the ASX 200 Accumulation Index.

Buyback stocks tend to 

1. generate much more free cash - a favourite metric for many investors
2.  signal that managements are attempting to beat their cost of capital.

Credit Suisse has forecast the ASX 200 will end the year at 6000 points, up from the current level of 5465.

This story originally appeared at afr.com.au

Here is a gem for the 20 something's! The power of compound interest

Start saving early and use the power of compound interest

Sally and Jane each invest $5,000 per year at 8% per annum. 

Sally, who started at 25 years old will have $1,404,000 in savings when she is 65. 

Jane, who started at 45 years old will only have $252,000 at 65. 

Why? Because Sally has harnessed the power of compound interest and has grown her principal by compounding her interest over a longer period of time.

Contact the team at Ark www.arktotalwealth.com.au

2013/14 Australian Federal Budget - how it affects me!

Last night the Budget delivered no real surprises after the majority of the proposed changes had been drip fed to the market in previous months.

Wayne Swan blamed a stubbornly high Australian dollar and lower commodity prices for a dramatic fall of some $17 billion in forecasted tax receipts, leading to an estimated budget deficit for 2012/13 of $18 billion... and that was why there wasn’t the $1.5b surplus promised....

He knew there was a high dollar and lower commodity prices a year ago.... why did he not make appropriate changes then? Or tell us then that there would not be a surplus then ? what a joke!!! I hate surprises!!
If I gave this excuse to my board... I would be fired on the spot!

What was the price of iron-ore  when he took over the reins  from Costello and what are they now? Costello had a surplus when Swan took over!

Key takeouts relevant to me


From a financial planning perspective

Great Article from our team at Ark total Wealth please feel free to contact them by clicking on their link
From a Financial Planning perspective, there have been a few changes in relation to superannaution and taxation which may have an impact on your personal situation. We have provided a brief summary on some fo the key changes.

• Superannuation

Cap on Tax Free Earnings - At the moment, any income in the pension phase is tax free. From the 1st of July 2014, the tax free portion will be capped at $100,000 per individual. Any earnings above this will incur a 15% tax. There is no change to the taxation of lump sum withdrawals, these will still be tax free.
There is however an exemption around the capital gains tax as this could cause many funds to exceed the $100,000 cap. For assets purchased prior to the 5th of April 2013, until the 1st of July 2024 the old tax system will apply (no tax in pension phase). This gives you ten years to structure your assets within the superannuation environment.

Refund of Excess Contributions - Current excess contributions are taxed at 46.5%. Excess contributions will now be taxed at your marginal tax rate as opposed to the 46.5%. In addition, excess contributions can be withdrawn from the fund.

Higher Concessional Caps - If you are aged over 60, from the 1st of July 2013 your concessional cap will increase from $25,000 to $35,000. From the 1st of July 2014, this will apply to anyone aged 50 and over. These amounts will be indexed.
Additional 15% tax for high income earners on concessional contributions - For those that earn more than $300,000, an additional 15% tax will be applied to concessional contributions. These contributions include superannuation guarantee and salary sacrifice Contributions. If you earn more than $300,000, you need to review your super contributions.

• Taxation/Cash Flow/Social Security

Cap on Self Education Expenses - There will be a cap of $2,000 on self education expenses that can be claimed in a Financial Year.

Replacement of Baby Bonus - This change has attracted the most attention. Essentially the baby bonus will be replaced by the Family Tax Benefit A.

Increase of 0.5% in Medicare Levy - Another of the well documented changes. The increase in the Medicare levy will be used to help fund DisabilityCare Australia.(.05% on 100k taxable income is $500 - well worth it to support disabled kids and education!!) 

Ending of discount of early repayment of HECS/HELP debt - From the 1st of January, there will be no discount for up-front and voluntary payments of HECS and HELP debt

Given the uncertainty around which changes will be implemented, it is very much a wait and see approach for everyone. If you have any questions, please don't hesitate to contact on of our Advisors.



From an Innovation Perspective 

Research and development

More timely R&D credits for smaller business

Quarterly payments of the 45% refundable tax offset from 1 January 2014for companies having a turnover of less than $20 million. This measure is designed to provide a cash flow benefit to SME’s as they will not need to wait until lodgement of their income tax return for their refundable R&D tax offset. There are a number of tests in the draft legislation that potentially make it difficult for those companies, at which the assistance is targeted, to actually qualify for the payments. BSI have made submissions to treasury in this regard.

Denying Companies with turnover of $20b or more to access R&D Incentives encouraging R&D for conglomerates to go offshore!

This measure was announced in February and and is expected to affect 20 corporate groups including large banks, miners, refiners, retailers and telcos. Whilst the budgeted savings may be significant ($1.1 billion over the forward estimates), the potential cost to the economy from these corporates potentially shifting R&D activities and other operations offshore could be massive!

Speak to one of our R&D Gurus to see how they can help you maximise your incentives

Purchasing Property in your Super Seminar

Ark is hosting its first educational seminar for 2013.

To kickstart the year, we have decided to re-visit one of the most popular strategies from last year - Purchasing Property in your Super.

If implemented correctly for the right people, this strategy has the ability to transform your super and wealth creation. If used incorrectly, it has the ability to cripple your super balance and retirement funds.

In this seminar, we will cover off the following;

- The benefits and risks of the strategy

- The correct structure and common mistakes

- The different ways in which you can structure the loan

- How it can fit into your overall strategy

- The costs of the strategy - Upfront and Ongoing

We will allow plenty of time at the end for questions and to chat with our qualified Financial Advisors. This is one area you need to understand before you make a commitment.

When:- 

Click here to register for Wed 20th Feb @ 6pm

Click here to register for Thurs 21st Feb @12:30pm

Where:-

Level 7 , 14 Martin Place, Sydney 2000 

If you are unable to  make the seminar, just 'Click here and order your complimentary ebook on 'SMSF Essentials' and 'The Process of Purchasing Property in Super' , and we will send it to you after the seminar.

10 Major Shifts in the Australian Property Market in 2013



http://www.lunchmoneywebinars.com.au/?af=CLS1165527



Next Tuesday, Wednesday & Thursday nights (January 29, 30 & 31) one of Australia's most successful property investors will be revealing the Top 10 Massive Shifts Heading for the Australian Property Market This Year in a never-before offered 3-Part Webinar Series you can tune in to from the comfort of your own home or office.

His name is Phil Anderson and over the past 20 years he's developed a multi-million dollar property portfolio that enabled him to retire at just 38, even though he only ever earned an average income his entire working life.

During the webinars Phil will be sharing the biggest shifts you need to be aware of to be successful in property investing this year, plus, his step-by-step process for acquiring property with just a $1 deposit and very low (if any) holding costs (a model 460 other investors have already used to grow their portfolios).

Go here to secure your place now

More than 3,500 people have already registered to attend this webinar, which is likely to be the largest webinar ever run for Australian property investors, so you know this is in-demand information that could make a big difference to your investing decisions this year (and potentially save you hundreds of thousands).

Phil purchases multiple properties every year and is the guy who regularly picks property hot spots 12 - 24 months before they appear on just about everyone else's radar, so he's a smart operator and one person you should be listening to amidst all the conflicting information on the Australian Property Market right now.

Go here to secure your place now

There is a limited capacity for these webinars. With so many already registered, this is likely to close soon.

10 Lessons From Black Monday

Tom Stevenson is an investment director at Fidelity Worldwide Investment. article from morningstar 

1. Keep calm and carry on. The FTSE 100 ended 1987 higher than it started and within two years the index had surpassed its pre-crash peak. By the time you have recovered your equilibrium, the moment to sell has very likely passed and by panicking at this stage you will simply miss out on the subsequent recovery.

2. Look through the market gyrations to what is happening in the real world. The 1987 crash was triggered by over-exuberance (the market had risen by nearly 40 per cent in the first nine months of 1987) and was then compounded by automated computer trading. The underlying economy was sound at the time - hence the quick recovery.

3. Take a long-term view. The 1987 crash looks insignificant on a long-term chart today even though, at the time, it felt like the end of the world.

4. Be prepared for the worst and don't put all your eggs in one basket. I was in Hong Kong at the time of the 1987 crash - the market there shut for a week, emphasising the point that emerging markets can sometimes be markets from which it is difficult to emerge in an emergency.

5. Don't try and time the market. When your emotions are running high you will make the wrong investment decisions because our brains are hard-wired to run from danger. The best investors do the reverse - they walk towards danger, albeit with their eyes wide open.

    

6. Invest regularly, a little at a time. This way, you will take advantage of market falls like the 1987 crash, picking up a few shares or units in a fund when they are cheap and even though your mind is telling you to put your money under the mattress.

7. Reinvest your dividends. The chart below shows the performance of the UK stockmarket since the 1987 crash - the lower line reflects just the capital growth while the second includes the compounded benefit of putting dividend income back to work in the market.

8. Keep some of your powder dry. Crashes happen, and when they do you want to have some ammunition ready to take advantage of them. It may be frustrating to have even a small proportion of your savings earning next to nothing in cash when shares are rising, but so too is being unable to capitalise on bargain basement prices when periodically they appear.

9. Beware of buying high and selling low. Remember that the stockmarket is the only market in the world in which we prefer to buy when prices are high and are put off by low prices. Think about how you would buy fruit and veg at a street market. You would behave in exactly the opposite way.

                                    

10. Watch costs but worry more about value. The difference between the charges on an actively managed fund and a tracker might be 1 per cent a year. If you back the right manager, however, that might be the best 1 per cent you ever invested.

Property Investing through your Superannuation

November 2012 Purchasing an investment property through your superannuation is one of the most innovative and complex strategies currently available. Ark Total Wealth has been recommending this strategy to its clients since legislation was amended in 2007. At this educational seminar, Ark Total Wealth will share the following with you; - What is a Self Managed Superannuation Fund and the benefits and risks - How to put together the structure to purchase an investment property in your super - How to analyse an investment property - The different loan structures available within super - Costs and Risks of implementing this strategy - How this may fit into your overall wealth creation strategy There is no cost to the seminar and you will have access to qualified advisors throughout the night to answer any questions you might have. If you can't make either seminar, please feel free to 'click for an advisor' to request more information. Regards, The ARK Total Wealth Team Seminar To register just click the link below; Thursday 8th Nov @ 12:15pm for a 12:30pm start  Wednesday 14th Nov @ 5:45pm for a 6:00pm start Duration: 1 hour Location: Suite 702, Level 7, 14 Martin Place (entrance through Pitt Street) Tea, Coffee and Nibbles will be supplied http://arktotalwealth.com.au/email_enquiry.html https://www.facebook.com/arktotalwealth https://www.facebook.com/arktotalwealth

www.arktotalwealth.com.au  | info@arktotalwealth.com.au

October - Educational Webinar Series

Ark Total Wealth are proud to present their SMSF Strategy Series to our subscriber list. I encourage anybody who is interested in wealth creation in Australia to attend this series. 

Self managed super funds (SMSF's) are now one of the largest and fastest growing segments of the super industry having an annualised growth rate of 20%. Education amongst members as to what they can do with their SMSF's and how they can most effectively use them is patchy however, and many are simply not unlocking their SMSF's full potential. The Ark SMSF Strategy series has been created to educate and empower SMSF directors/trustees to get the most out of their retirement funds, increase their wealth and manage their tax. Webinars will be held on the following topics: Personal Insurance inside your SMSF Direct Equities & Managed Funds within an SMSF Transition to Retirement Strategies within an SMSF How to buy property within a SMSF If you can't attend a webinar, or you are not sure how to log on, please 'click for an advisor' on the right and we can provide you with the steps on how to register or a brief run down of the webinar content. At the webinars we will cover off the following; Personal Insurance - The different insurances that can be held within an SMSF and the tax consequences. Direct Equities and Managed Funds - What your investment options are within your fund and how to get access to these investments. Transition to Retirement Strategies - A detailed look at the options when approaching retirement and the benefits of utilising this strategy Property in Super - How to purchase an investment property within your super with borrowing At the conclusion of the webinar, we are happy to provide fact sheets and a short video on each topic, however we will not be sending out the specific  slides. Regards, The ARK Total Wealth Team Please click the links below to register for the webinars: SMSF and Personal Insurance Tues 16th Oct @ 5:30pm Investing within an SMSF Wed 17th Oct @ 5:30pm Retirement Strategies Tues 23rd Oct @ 5:30pm Buying Property in an SMSF Wed 24th Oct @ 5:30pm Each webinar will be 30mins in duration

www.arktotalwealth.com.au | info@arktotalwealth.com.au

Lower volatility, higher returns in direct property: report

A comprehensive report commissioned by the Property Fund Association of Australia (PFA) and released today compares the  performance of unlisted and direct property versus listed property over a range of periods in the past 25 years.

With a primary focus on income and total returns, the research looked at the volatility of the unlisted sector and its correlation with other asset classes, including equities and listed property.

PFA president Robery Olde says that since the GFC (global financial crisis), direct property has demonstrated the kind of resilience and positive total returns that other asset classes simply haven’t.”

Trends indicate investors are catching on. There has been a “significant increase” in direct property compared to the listed sector in the past 12 months, he says.

In Australia, there’s currently more than $55 billion in direct property assets under management.

Blue Chip Sydney Property - Glebe, Dulwich Hill and Marrickville

From the team at Ark!! 

Glebe ,  Dulwich Hill and  Marrickville

Ark Total Wealth will be hosting a special event Webinar discussing one of the best performing, blue-chip property areas in Sydney, the inner-west region. We will analyse and present research as to why this area is a blue-chip area to invest with excellent growth potential, and also look at a number of our previous projects in the area and identify why they have returned such strong capital and rental growth. Ark will also present three exciting property projects in the area that we currently have available for clients and discuss why we feel these share similar characteristics to our past successes. In the 45 minute Webinar you will: View the demographic research and research house recommendations in relation to the Inner West. Learn what our previous strong growth projects have been in the region and why they have performed so well View the details, specific floor plans and particulars of three new developments we have in Dulwich Hill, Marrickville and Glebe. Understand why we believe these developments will be strong investment buying opportunities similar to our previous inner west projects. Ark Total Wealth is conducting the Webinar event on Monday 24th of September @ 5:30pm. If you are unable to attend or wish to review the information at hand before the Webinar please contact us and we will provide you with the development particulars. We look forward to seeing you there! click here to like them on facebook  - GOAL 1000 likes in a month... need your help!!! Regards, The Ark Total Wealth Team

Self Managed Super Fund (SMSF) Strategy Series

Due to the interest and growth of Self Managed Superfunds, The team at Ark Total Wealth will be holding a comprehensive SMSF Strategy series covering all aspects of Self Managed Super Funds.
If you are looking for tax efficient, alternative strategies for your super (including investing in Property), or you are just interested to learn more, register on the links below.

Self Managed Super Fund (SMSF) Strategy Series

Self managed super funds (SMSF's) are now one of the largest and fastest growing segments of the super industry having an annualised growth rate of 20%. Education amongst members as to what they can do with their SMSF's and how they can most effectively use them is patchy however, and many are simply not unlocking their SMSF's full potential. The Ark SMSF Strategy series has been created to educate and empower SMSF directors/trustees to get the most out of their retirement funds, increase their wealth and save tax.Webinars will be held on the following topics: How to buy property within a SMSF Tuesday 31st July 6pm Retirement Strategies within an SMSF Thursday 2nd August 6pm Direct Equities & Managed Funds within an SMSF Tuesday 7th August 6pm Personal Insurance inside your SMSF Thursday 9th August 6pm You can click on any of the hyperlinks above to register your attendance.  You will also get the opportunity during the Webinar to ask direct questions  to a qualified Financial Adviser regarding the topic being presented. If you are unable to attend any of the above, and would like to receive a copy of the webinar, click here to register your details, and under "messages" type "SMSF"

At the Webinar

At the webinars, we will cover off the following; Property in Super The structure, benefits, cash flow and risks of purchasing property within your super Retirement Strategies How to effectively drawdown from your superannuation and tax effective ways to increase your balance  Direct Equities and Managed Funds How to structure an investment portfolio including direct equities, alternative investments and the effective use of franking credits  Personal Insurance How to structure your insurance effectivly and a review of the different product providers At the end of each webinar, we will email everyone a complimentary copy of our e-book and our discounted price list for SMSF Setups for webinar attendees.  Regards, The Ark Total Wealth Team

Online Spark Magazine

This is by far one of the best SME online publications I have read.... would be interested in your feedback!
http://sparkmag.co/nationau/issue13/index.html

Ark Informer - March 11 - Is your Super super

Please find below our March 2011 Ark Informer discussing Superannuation as an effective long term savings strategy.

Our hearts go out to all those who have been effected by Japan's Earthquake and Tsunami.  Shane Oliver's March edition talks about the likely economic/financial impact of Japan's earthquake. Olivers Insights.

If you would like to donate towards this crisis, the Red Cross is running the Japan and Pacific Disaster appeal.Click here for more info.

Our current poll on our Ark Website is "do you think the all ords will reach 6000 in 5 years time :- 77% say yes 23% say no. Feel free to make a vote.

How to Have a super SUPER As Financial Advisors, superannuation is one of our most favoured investment assets for wealth accumulators. Why? Because Clients can’t withdraw it all for a holiday or car It is continually growing as your employer puts in more money every year Legislation is constantly changing to make superannuation more flexible and advantageous for everyone not just the rich It is tax free at the end This combination allows us to build long term investment strategies for our clients to take advantage of changing markets and legislation to help our clients achieve their personal financial goals. In this ‘Ark Informer’, we will endeavor to explore some superannuation strategies that you can employ to help fund your retirement. 1.     Investing your super appropriately – Most people are unaware that they can actually choose where they would like their super to be invested. This includes the product you are invested in (E.g. AMP, First State Super or BT) and also the underlying funds (E.g. Australian Shares, International Shares, Asian Shares). You can also create a blend of different options to find the right portfolio for you. If you are young, you may want to consider investing in more growth assets whereas if you are approaching retirement you may want investments that pay more income are and more conservative. A small change now, can make a large difference later on. 2.     Using your super to pay for some personal insurances – This is one of the most underutilised strategies as most people aren’t aware that you can have your superannuation fund your life insurance and even your income protection. Due to the competitive nature of insurance, some super providers are even cheaper than their outside super option. 3.     Salary Sacrifice to super – This involves contributing your pre-tax money (your pay before the ATO touches it) into your super so you pay tax at 15% instead of your Marginal Tax Rate. This strategy can potentially reduce your income tax but also increase your super balance for retirement. 4.     Start a Self Managed Superannuation Fund (SMSF) – This is the fastest growing area in superannuation and it involves you setting up your own fund and managing it (with the help of a professional). An SMSF provides greater investment selection such as the opportunity to buy direct residential property and leverage but it requires more attention than a retail superannuation fund. If you have more than $200,000 in your super or you and your partner have more than $200,000 you should seriously investigate this option. Please feel free to watch our SMSF concept video here 5.     Purchasing a Property with the assistance of Borrowings through your Self Managed Superfunds. Benefits include concessional tax treatments, diversification, leverage, estate planning, borrowing capacity and asset protection. To download our Property and Self Managed Superfund Ebook, please click here 6.     If you are over 55 – look at the option of a Transition to Retirement Income Stream. This can be a very effective way to reduce you tax and increase your superannuation balance leading into retirement. If you would like to know more about superannuation strategies, please feel free to contact us directly on 02 9262 3333 or via the appointment link on the right and one of our specialists will be in contact with you.

With kind regards