Written by Hudson Adviser Ivan Fletcher
We only have to look back at the QLD floods to know that QUALITY (fine print if you like) matters a great deal. There is no point in having cheap insurance if it does not protect you in your hour of need.
The following table provides a short summary of some key issues to consider. You can find more detail on these subjects below the table.
|Product Features for Income Protection
||In Super||Outside Super (Stand Alone)|
|1||Wave of waiting period for some minor injuries (e.g. broken bone) (if 30, 60 or 90 days)||No||Yes|
|2||Lump sum payment for critical illness (e.g. Heart attack, stroke, certain cancers)||No||Yes|
|3||Can offsets deprive you of payment even after serving your waiting period?||Yes||No|
|4||Personal tax deduction||No||Yes|
|5||Cover beyond 2 years||No (in most cases)||Yes|
Written by Stephen Halmarick, Head of Economic and Market Research, and Belinda Allen, Senior Analyst Economic and Market Research at Colonial First State Global Asset Management
This document has been prepared by Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) based on its understanding of current regulatory requirements and laws as at 26 August 2015. This document is not advice and provides information only. It does not take into account your individual objectives, financial situation or needs.
Written by a Hudson Editor Hayley Mcleod
There is a great deal of talk and speculation surrounding the recent market downfall but at the end of the day it is a correction. We have had them before and we will have them again.
Since 1980 the market (as represented by the broad US based S&P 500) has only dropped more than 5 per cent 28 times. The chart below shows what usually happens within a week of a market correction (when the S&P 500 drops more than 5 percent) is that there will be a period of calm followed by a growth of around 1.65 percent in the four weeks following. It is important to note that over the next 12 weeks markets will usually see a growth of around 5 percent.
While on average the growth over the 12 week period following a major drop is positive there has been precedence for negativity. In 1987 on the week ending the 16th October the market fell 9.12 percent and within the 12 weeks following dropped a further 13.90 percent. This is contrary to the norm and during the GFC on the week ending the 6th March the market fell 7.03 percent but in the following 12 weeks had made gains of 34.50 percent.
The current market fall has been the result of a flow on effect with US and European markets selling off heavily and the Australian resource sector suffering from a drop in iron ore prices.
We encourage all members to ride the wave that is the share market and look at all investing from a long term perspective. Those who have cash to invest should look at buying into the market while it is at these lower levels while those who have investments should watch their portfolio stabilise, as the table above indicates.
If you have any questions please do not hesitate to contact your adviser.Read in full + comments 0 Comments
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