Buy-Write Portfolio Update March 2014

posted on March 27th, 2014 by David

officePhotoWe may have mentioned to you recently that we've been undertaking some extensive research projects, looking at optimising the way we manage the Bellmont Buy-Write Portfolio. We've now completed these projects, and are excited to be able to start implementing the findings in the next few days. Read more

Presentation For The Aust Shareholders Association

posted on August 30th, 2013 by David

Introduction to Options & The Buy-Write Strategy

Presentation by Simon Bylsma

Option Series Pt. 3 – Aust Shareholders Association

posted on August 22nd, 2013 by Bellmont Research Team

options-header-3 We have arrived at the third and final part of our series on options. I hope this series, which introduces options, has shed some light on an unexplored area of investing. In this edition I will connect the concepts we have explored in Read more

Sydney Northern Beaches Investment Update

posted on June 18th, 2013 by David

Simon Bylsma Presents At The Sydney Northern Beaches Investment Update

SydneyNorthernBeachesPresentationFeaturedBellmont was delighted to host the Sydney Northern Beaches Investment Breakfast this morning. We would like to thank the Bayview Golf Club and their staff for the outstanding service as well as the many Northern Beaches professionals who attended. Read more

Bellmont Featured in Strategic Super Investor Magazine – Autumn

posted on March 8th, 2013 by Bellmont Research Team

This article is part two in a four part series. To read the part one please click here.

In this case...

The Strategic Super Investor has provided three professional SMSF advisors with different investor scenarios to manage for 12 months. In our Summer issue, they allocated a portfolio according to the circumstances of their particular case. This month they track their portfolios, comment on performance and adjust if necessary.

Simon Headshot In the last edition I examined the scenario of John and Jane Brown, who were looking to invest $400,000 from their SMSF into Australian equities. To recap: we formed a base for our investing by examining the current economic environment and the key long-term underlying issues of debt and demographics. I then introduced the buy-write strategy as an alternative investment strategy for many retirees as a way to generate a steady income stream and have exposure to capital appreciation of shares, while lowering their overall risk profile. Based on extensive long-term research undertaken by SIRCA and the CMCRC, the buy-write strategy using index options produced the following results: Read more

Bellmont Featured in Strategic Super Investor Magazine – Summer

posted on December 20th, 2012 by Bellmont Research Team

In this case...

The Strategic Super Investor has spoken with three SMSF professionals and provided each advisor with a different SMSF investor scenario. We asked them to allocate a portfolio according to the circumstances of each case. In each issue for the next 12 months, SSI will track each portfolio and our expects will comment on performance and adjust asset allocations where appropriate.

Simon Says

Simon Headshot John and Jane Brown are in their late 50’s they have both recently retired and have approached me saying they wish to invest in Australian equities using $400,000 from their SMSF. They have a long term time frame and have a conservative risk profile. Before launching into any stock selection I believe it is vital to understand the current economic environment and then ensure you have the right strategy to meet your objectives. Many investors jump straight to the stock selection and end up having a scattered portfolio with no real strategy defining their investment selection. Read more

The Yield Gap

posted on November 7th, 2012 by Bellmont Research Team

Many investors have been squeezed on their term deposits with the best 12 month deposit currently being offered by the major banks only yielding 4.45% (see table below). This is creating a significant yield gap between cash and equities and we are starting to see money move out of cash into equities to lock in yield with many investors happy to pick up dividends even if there is no growth in the stock. The below chart shows this yield gap with the cash rate (white line) vs the dividend yield of the ASX200 not including Read more

Property & SMSFs: Loosening The Rules

posted on February 8th, 2012 by Bellmont Research Team

If your SMSF has borrowed money (or is thinking of borrowing money) to acquire ‘bricks and mortar’ property then there are a few things you need to know. A new ATO ruling released last month helps to clarify what you can and can’t do with property that is under a limited recourse borrowing arrangement (LRBA). Read more

Superannuation Strategies for the Wealthy & the Wise – Part 2

posted on January 6th, 2012 by Bellmont Research Team

My last article was about some of the treasures that superannuation can offer both retirees and pre retirees (of any age). This month I have continued that article, with another selection of superannuation tax treats! Transition to Retirement The transition to retirement provisions came about as a result of the need to supplement the income of people wishing to semi-retire. The provisions allow anyone over their preservation age (currently 55) to roll over their super to a Non Commutable Allocated Pension. They can then draw an income from their pension, up to a maximum of 10%, and also subject to a minimum amount. By salary sacrificing to superannuation, and then replacing your income by drawing a monthly pension, those on tax rates of 30% or higher may be able to reduce the total tax payable. Read more

Superannuation Strategies for the Wealthy & the Wise – Part 1

posted on December 6th, 2011 by Bellmont Research Team

Superannuation is a topic that most people have a definite opinion on – they either love it or they hate it. You have probably already put yourself into one of the camps while you are reading this. My purpose here today is to explain to you why superannuation is a particular favourite of mine, and how it can be used to best advantage. To disregard superannuation because of the regular (and sometimes misleading) bad press it receives may mean that you miss out on benefits which are just not available elsewhere. The examples below show how you may be able to use superannuation to: • Eliminate income tax in retirement • Eliminate capital gains tax in retirement • Offset capital gains tax at any age • Have your contribution matched by the government • Have a tax effective income from superannuation whilst you are still working In my next article, I shall have case studies showing how you can use superannuation to: Read more

The Key Benefits of SMSFs

posted on November 9th, 2011 by Bellmont Research Team

The key benefits or advantages of an SMSF are control, flexibility, taxation benefits, cost savings and estate planning opportunities.  SMSFs are typically used by small business owners, professionals and high net wealth individuals, all of whom want more control over their superannuation money.  The 2011 inaugural annual study of SMSFs by the SMSF Professionals’ Association of Australia (SPAA) and Russell Investments revealed that 71.2% of SMSF trustees highlight ‘control over their investments’ as the key driver for establishing a SMSF then ‘control over their future’ and ‘flexible tax benefits’. Read more

SMSFs – Flexibility & Options

posted on October 10th, 2011 by Bellmont Research Team

The world of Self Managed Super Funds (SMSFs) is evolving dynamically and changing rapidly, the size of the SMSF market and the rate at which new funds are forming is staggering. The flexibility and options available to SMSFs is a key driver in why the SMSF sector has continued to perform in the face of the global financial crisis. I receive calls every week from clients asking about facts and myths about SMSFs, some questions are scary and some are entirely well thought out – what is clear amongst the barrage of questions and answers is that people are very attracted to the flexibility which SMFSs offer. Gone are the days of the three investment options offered by the retail super providers – SMSFs can provide members  ways to invest which may help their children or help widowed spouses in the future. Read more

SMSF’s – The Basics

posted on April 11th, 2011 by David

SMSF’s – What are their benefits?

There are a number of reasons why an increasing number of investors have been turning to self managed superannuation funds (SMSF) as the investment vehicle of choice within Australia over the past few years. SMSF investments total about $390 billion, being almost one quarter of the total superannuation system investment pool. Traditionally employees and investors have preferred to hold their superannuation balances in retail superannuation funds that offer limited control over flexibility and investment choices, a reduced number of taxation planning opportunities and percentage based annual fees. However investors today are becoming increasingly sophisticated and financial advisors are much more active in directing their clients towards establishing an SMSF, utilising their investment flexibility and potential taxation benefits.

SMSF taxation structure

Superannuation is an attractive investment vehicle for investors due to its Read more

Contribution Limits & SMSFs

posted on March 9th, 2011 by Bellmont Research Team

It has been announced that contributions to SMSFs reduced by 50% last year. One of the reasons for such a large decline in contributions has been identified as the caps on contributions imposed by the ATO. There are currently 2 types of contributions; non-concessional and concessional. Non-concessional contributions are generally made to a super fund by or for you in a financial year and are not included in the super fund’s assessable income (for example personal contributions you make from your after-tax income). The current non-concessional contribution cap is $150,000 per year. If you are under 65 years old at any time during the financial year, you may be able to bring forward the next two years of contributions, but certain conditions apply. This effectively allows you to contribute up to three times the cap at once or at any time during the three financial years. There is a tax of 46.5% on contributions made in excess of the cap. Read more