From CMA Financial Solutions:

Hello and Merry Christmas to all. For those who have not met me yet my name is Peter Hourn and I look after the Financial Planning and Lending at CMA.

It has been a very interesting year in financial markets which I am sure that you are all aware of. The current turmoil will have impacted greatly on your investments especially superannuation. It is especially important at this stage for you review your superannuation and to take stock of where it is at and whether or not it is on track to achieve your retirement gaols. At CMA we will be be starting the new year with a focus on “how much do you need for retirement” so if you would like to attend a seminar or wirkshop please let us know.

Starting from this newsletter I will be featuring some information on investments and lending. I hope you find these informative and if you would like to discuss any of these or any other matters please do not hesitate to contact us here at CMA.

Fundamentals of Investing

Risk Profile

Every investor has a “risk profile” whether they know it or not. Your risk profile is simply a categorisation of the amount of risk you can comfortably tolerate. As all investments carry some degree of risk (even bank deposits) it is important to understand your risk profile before deciding on the types of investments to be made. Investor risk profiles are generally classified under a number of headings ranging from “conservative” to the “aggressive” or “high growth”. Risk profile is determined after taking into account an investors attitude to issues such as the need to preserve capital, through being able to tolerate occasional negative returns for a higher potential return over the longer term. The needs for protection against inflation and tax effectiveness are also issues considered when determining an investors risk profile.

Source: Step by step guide to INVESTMENT

Tricks and Traps in lending

Would you use all loan features on offer?

For instance would you use an off set account or a debit card? Extra features which you do not use may be costing you additional money. Think carefully about what features you actually use and need, aim for a product to fit those needs.

Picking the cheapest interest rate

Interest rates are not the only cost associated with a loan. Many loans include application fees, variation fees, settlement fees, valuation fees, monthly fees and other transaction fees.

Source: Step by step guide to MORTGAGES