How BlueRocke Assists Accountants & their Clients

P&A Connect

Here at BlueRocke we work with Accountants to support new Australians in their wealth creation.  Over the past 10 years we have assisted Peter Chan and Andrew Wong at P&A Connect Accountants and Advisors with many of their clients who are busy medical professionals and business owners,  around building and protecting their wealth using diverse long term investment and insurance strategies.  This partnership means that clients’ wealth is built to levels higher than the would be on their own.  They are reassured that they and their families are well provided for and can navigate the Australian financial systems better together.

With over 35 years Global financial experience and 10 years local knowledge, Dev Sarker can be your partner in assisting new Australians create wealth and keep clients for longer.  Contact Dev today at  https://bluerocke.com/

 


Why Has My Balance in My Diversified Fund Dropped?

Interest rates around the world have gone up recently. This has caused the value of fixed interest investments such as bonds to fall. The fall in the value of bonds can directly impact the value of your fund.

To understand why your fund’s balance has dropped, it would be helpful to know more about the fixed interest investments that your fund invests in.

Your fund’s allocation to fixed interest investments is part of the defensive component of the portfolio, which is your collection of financial investments. The defensive component is generally lower in risk and less volatile than the aggressive component or ‘growth’ investments, such as shares and property that are listed on the stock exchange. This helps diversify the overall risk and returns in a portfolio.

Fixed interest investments are issued by governments, banks, and companies. A borrower, like the Australian government, can borrow money in different ways, including fixed interest investments called bonds. Bonds pay investors regular interest at a fixed rate, called coupon payments. The borrower agrees to pay back the original amount borrowed to the investor at the end of the established period such as 5, 10, or 15 years.

Many bonds are listed on a financial exchange such as the Australian Securities Exchange (ASX), which means they can be traded or bought and sold. For investors, bonds offer the ability to lock in a better rate than ‘at call’ cash invested in a bank account or money market investments. Because a bond is a riskier investment than cash, they generally offer a better rate.

Recently, interest rates around the world have gone up. This has caused the value of fixed interest investments to fall. The fall in the value of bonds can directly impact the value of your fund. This is because the market value of your fund and its investments is tracked and re-priced daily. Therefore, your fund balance falls in line with the market and will rise in line with the market.

 

At Bluerocke, we specialize in helping High Net Worth, soon-to-be High Net Worth and want-to-be High Net Worth professionals and business owners.

Please contact us through our web-site www.bluerocke.com, if you need such help.


Negative Returns and the Quality of Fixed Interest Investments

You may wonder if negative returns mean that your investment has gone bad. Rising interest rates do not mean the quality of the fixed interest investment has changed, and it is normal for the interest rate cycle for the value of fixed interest investments to rise and fall.

It is a normal part of the interest rate cycle for the value of fixed interest investments or bonds to rise and fall over time. Rising interest rates don’t necessarily mean that the quality of the fixed interest investments in a portfolio has changed. Like before, issuers are still expected to keep paying the fixed rate of interest. When the bonds in your portfolio reach the end of their term, the issuers are expected to return the total value of the amount invested in your fund.

Other risks of fixed interest investments include:

Credit risk: when the issuer may be unable to make future income or principal payments.

Inflation risk: when inflation rises, an investor in bond will require a higher return on the investment to compensate for the effects of inflation.

Liquidity risk: when the bond may not be able to be sold quickly for a price that represents its market value.

 

At Bluerocke, we are very experienced in helping High Net Worth, soon-to-be High Net Worth and want-to-be High Net Worth professionals and business owners.

Please contact us through our web-site www.bluerocke.com, if you need such help.

 


When It’s Time to Get a Financial Adviser

 

Financial advice isn’t just for the wealthy or those close to retirement. You might consider working with a financial adviser if you are not confident in your financial decisions because you don’t have the time, knowledge, or capacity to explore your options.

It can be hard to navigate the financial world, but you don’t have to do it alone. You might consider working with a financial adviser if you are experiencing the following:

A lack of time

It can be challenging to carve out time to sit down with your finances if you are balancing work and family life. And making big financial decisions can be overwhelming and take time away from work and relationships. A financial adviser can work with you by researching options and advising on a course of action that help you work toward your goals.

Confusion about the market

With so many investment products on the market, it becomes hard to be sure if you’re getting a good return for the risk that is involved. A financial adviser can clarify the concepts for you, with in-depth knowledge of investments and markets.

Moreover, as your financial adviser reviews your current situation and goals, they get a better understanding of your appetite for risk. They can create an achievable plan that matches you with quality investment solutions that suit your circumstances. They can also identify investment opportunities that you might not have found out about otherwise.

A major life event

When a major life event occurs, it has a ripple effect across your finances. For example, when you get married or move in with a partner, you might want to merge finances and redefine shared financial goals. A financial adviser can guide you throughout the entire process, by outlining the financial implications of a decision and working to build or adjust your financial plan, ensuring you stay on track.

Considering making an important purchase

Although you make financial choices every day, certain financial decisions are more significant than others. For example, you may come into an inheritance, or receive a bonus at work or a redundancy payout. In these cases, there is a strong temptation to splurge the cash.

You might be exploring different ways to make the most of the money: should you pay off your mortgage, boost your super or invest it for the future? A financial adviser will walk you through your options and what they mean for your situation, so you can feel confident in your financial decisions.

Financial stress

People often choose to work with financial advisers for the peace of mind it gives them and their families, particularly if they’re experiencing financial stress. Financial stress can accost anyone, regardless of age or background, and can have a profound and lasting impact on your health and relationships.

Building your wealth faster

There are several assets classes  structures and strategies that will help build your wealth faster and to higher levels- the longer your remaining working life is, the more your wealth can grow.

 

 

At Bluerocke, we specialize in helping High Net Worth, soon-to-be High Net Worth and want-to-be High Net Worth professionals and business owners.

Please contact us through our web-site www.bluerocke.com, if you need such help.


Share Market Falls: The Causes and What to Consider

Headlines about falling markets can be worrying – particularly if you’re approaching retirement. Find out more about the recent causes and what to consider.

After stellar rises in 2021, share markets lost some of their shine in January with steep falls that have attracted plenty of media attention. This is a market correction after a sustained period of share market gains. A few factors have spooked markets, including the prospect of interest rate rises, the ongoing disruption caused by the Omicron variant, and uncertainty about conflict between Russia and Ukraine.

If your super is in a balanced investment option, the falls in the share market are unlikely to be fully reflected in your account balance. That’s because your investments are spread across a range of different types of assets, such as bonds, property and infrastructure – some of which are largely unaffected by the factors behind the share market falls.

There are also good reasons to believe markets are reacting to short-term challenges likely to be resolved relatively quickly. Central banks are committed to a gradual rollout of interest rate rises, the economy is doing well and, despite the challenges of Omicron, we are slowly but surely getting to grips with Coronavirus. As a result, our short-to-medium-term outlook remains positive.

WHAT CAUSED THE SHARE MARKET FALL?

There are a few reasons that the share market has taken a tumble over the past month. These include:

  • The prospect of earlier-than-expected interest rate rises by central banks, both in Australia and overseas. Rising inflation is the driving factor.
  • The Omicron variant, which affected business operations. For example, sick workers resulted in disrupted trucking routes and empty supermarket shelves.
  • Geopolitical uncertainty, including a Russian military build-up on the border with Ukraine.
  • Finally, stock markets have surged over the past 20 months. After such a sustained period of growth, a correction is not unusual.

WHAT DO YOU NEED TO CONSIDER?

As with all investment decisions, there are two key factors you should take into account. First, your risk appetite – how comfortable are you with experiencing falls in your investments? Second, your time horizon – when do you need to withdraw your money?

If the current falls in the share market are making you uncomfortable, it could indicate you are invested in an option that may not match your risk appetite. It could be helpful to speak to a financial adviser, if you don’t have one, to review your different investment options.  If you’d like to talk to someone, please call 0404167989 or email ds@bluerocke.com at Bluerocke Investment Advisers

If your time horizon is longer than the medium term (say, five years), then you may have time to ride out any losses and simply wait for the market to recover. Keep in mind, switching to a more conservative investment option could ‘crystalise’ your losses – turning a paper loss into an actual loss – leaving you with less capital and a lower growth investment.

At times like these, it’s important to keep in mind:

  • Stock market corrections are normal, and can be healthy
  • If you switch to a more conservative option such as cash, you risk locking in your losses
  • Shares have performed well over the long term
  • The economy is strong and unemployment remains low.

WHY MARKET CORRECTIONS ARE NORMAL

It’s impossible to know for certain what the future holds. Nevertheless, it’s important to put the current share market falls in context – they follow 20 months of strong market returns driven by abnormally low interest rates. The reaction of markets in recent weeks is best seen as a return to normality.

We are here to support you and things you can do include:

  • Reading our regular market updates
  • Staying up-to-date with the latest market developments
  • Reviewing your super to ensure it aligns with your risk appetite and financial objectives.

WE’RE HERE TO HELP

As you keep your long-term goals top of mind, remember: we are here to help – with news, insights and helpful resources available on our website,  www bluerocke.com to help keep you up-to-date on the latest.

 

DEV SARKER DIRECTOR

Authorized Representative

FCA, MBA, ADFP

p 1300 71 71 36 | m +614 0416 7989