mjb financial solutions
MJB Financial Solutions (MJB) is a small progressive financial planning business. Its focus is to provide innovative tailored financial planning solutions for individuals and small businesses alike using structures such as self managed super funds and product platforms to best suit our client's requirements.
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Lifestyle Offer - Are you tracking to your goals & objectives?
MJB offers an in-depth report for clients to develop and target key lifestyle and financial goals and objectives. This is achieved by
- ensuring goals and objectives are appropriate/ realistic based on the client’s needs and resources, and
- to gain understanding of the likelihood of meeting their stated goals and objectives in the timeframe alloted.
The process entails the client completing a short questionnaire detailing objectives and headline financials. Within 5 working days MJB will prepare and email report for the client’s pursual.
MJB believes this is an important first step for people who care about their finances and wish to secure their financial independence. Please contact MJB by phone or email for further details.
Absolute Return Funds
Post the near colapse of Basis Capital in Australia - the manager of Basis Yield Fund & Basis Australia Opportunity Fund the question is - what timeframe of negative returns is enough for investors to be concerned?
This question posed to industry commentators suggests the timeframe must be shorter than that applied to a standard equities product. Consensus suggests negative returns over a few months would be sufficient to raise concerns!
Essentially these funds have been promoted to provide an absolute return or positive return & if thinking of a 2-3 month period then capital return should be positive over this timeframe. Investors should be wary if losses of 1-2 per cent are experienced in this timeframe.
Overall investors should keep asset allocation to around 5% of total portfolio. Performance over 1,2 and 3 years suggests absolute return funds are not seen as the solution across all market conditions and fluctuations.
Simple rules to help your next of kin inherit
Estate planning is a complex area! In most circumstances the testor is providing greater weight to surviving partner to ensure roof over their head aand ongoing income at the expense of the children as they become financially independent. No surprise therefore to see proposed changes to intestate to reflect most common outcome – surviving partner to inherit whole estate & no sharing with children.
What you should know sub-prime mortgages and CDO’s
Sub-Prime Mortgages
These mortgages are typically
- highly leveraged - mortgagees have little or no equity in their homes
- shorter loan seasoning - recently written as opposed to mature loans with strong repayment history
- weak documentation - little or no proof of savings & employment
- honeymoon rates - reliance on lower short term rates vs 30 year rates common in US market