On Monday the 29th of August we held our latest Wealth and Beyond Seminar, featuring Alastair Fink, Clive Staple, Pip O’Connell and Flight Centre Melville.

For those that couldn’t attend the night, please see below for a summary of key highlights from our guest speakers:

Alastair Fink, WA State Manager of Perpetual Investments – Market Update and the Golden Rules of investing.  

Global Markets

  • The US downgrade by S&P was inevitable. The US Net Government debt as a percentage of GDP in 2010 was 65% compared to the average for all AAA rated countries of 12%. Part of this downgrade was due to the lack of government leadership.
  • The European debt crisis will be an ongoing concern over the next 6-12 months, leading to continued volatility in global markets.
  • Asian industrial production has slowed and while still strong, is coming back to more normalised economic growth.


  • Western Australia has a two speed economy – Resources vs ‘The Rest’
  • We have significantly higher interest rates relative to other countries. This holds our economy in good stead, given there is room to cut interest rates if required.
  • Perpetual’s view is that economic growth will run as high as 4.5% p.a, and that the biggest ever mining boom is yet to come.
  • Currently the dividend yield is exceeding the 10 year bond yield.

Golden Rules

  • Security lies in diversity.
  • Quality and value is the key.
  • Don’t try to time the market.
  • Think long term.
  • Stick to an agreed strategy.
  • Currently the dividend yield is exceeding the 10 year bond yield. Therefore less emphasis should be placed on the share price and more on the dividend that this yields, be in the share market for the long term.


Clive Staple, AXA State Manager (WA) – Superannuation Opportunities and TTR:

Why the government is focusing on superannuation

  • The age pension is neither desirable, nor sustainable. A single person on a pension receives 27% of average earnings, whilst a couple receives 42% of average earnings.
  • Australia’s demographic profile – our aging population means that there are more people moving into retirement than the remaining workforce supporting them.
  • Anyone born after 1957 will not be eligible for age pension until they turn 67.

Implications and opportunities

  • Superannuation is a tax structure not a product or asset class. In the accumulation phase the maximum tax rate is 15%, while being tax free for those over the age of 60.
  • How much superannuation is enough will vary depending upon your retirement goals. According to research provided by ASFA, a comfortable income for a couple in retirement is $54,562 per annum.

Transition to retirement (for more information surrounding this – please read our Transition to retirement blog)

  • Refers to the ability to access your superannuation savings as a non-commutable pension before retirement (must have reached your preservation age).
  • No lump sum withdrawals are allowed and a maximum of 10% of the pension account balance is able to be withdrawn each year.
  • By salary sacrificing some of your salary and making up the shortfall with a concessionally taxed/tax-free non-commutable pension, you can increase your superannuation savings.
  • The two biggest benefits of undergoing a TTR strategy include the ability to boost your superannuation savings and lowering the amount of tax you would normally pay


 Pip O’Connell, Postcards WA – Must-see WA holiday destinations:

Leonora Loop Trails

  • This is a outback adventure self-drive tour
  • The trails are a 90minute drive north of Kalgoorlie and butterfly out from the Goldfields highway.
  • There are sites to visit on the trail and each one is marked by a plaque which has a story that takes you through what it was like during the boom time. One of the stories that Pip remembers well was in Laverton  – the town is named after Dr. Laver who rode his bike around to those who were sick and could not afford medical services.
  • Some of the sites to visit are Boxers Well, Doyles Well and Poison Creek

Kalbarri / Coral Coast

  • Due to the expanse of this region Pip advises that a great way to see it is by air or by boat
  • The Kalbarri National Park is beautiful and there are plenty of hiking trails to explore.
  • The numerous gorges can be explored by sea (swimming & rowing), foot, air or car (there are also guided tours).

Cape to Cape walk

  • This is south of Perth and runs from Cape Naturaliste to Cape Leeuwin (140km in total with the first 3.5km being sealed)
  • The walk can be done individually, with friends or guided
  • It takes about 6-7 days to complete walking at a comfortable pace
  • There is accommodation set up along the walk including running water and showers
  • For those that want to do the trek in style you can choose to stay in luxury and be dropped off daily at your previous days finish point.

Koombana Bay Bunbury

  • There is a wild dolphin tour offered
  • You don’t have to be a good swimmer they cater to all ages and levels

Fitzgerald River National Park

  • This is located between Hopetoun and Bremer Bay (or more broadly Albany and Esperance)
  • It has a biosphere which is internationally recognised.
  • Is the second largest national park in the country and is the largest within WA
  • It has over 1800 species of flowers and 62 plant species which only exist in this region
  • There is an abundance of wildlife including; Frogs, Numbats and Carnaby Cockatoos
  • From the top of the Baron Range you can view the very rare sight of whales calving – this is one of only two places in the world where you can see this.


Simon from Flight Centre in Melville concluded by offering special travel deals to Profusion Planning clients

We hope you all had a wonderful evening and were able to take away something useful from the evening.