Jason Petersen on Switzer TV

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This week, Jason Petersen, our Head of Wealth Management, was interviewed by Peter Switzer on Switzer TV.

With interest rates on term deposits and bonds so low, the topic of their conversation was, “How do you find reliable income streams?”

Jason spoke about a range of strategies used by 5 Financial.

This includes equity investing which enables clients to earn dividends from stocks.

Exchange Traded Funds (or ‘ETFs’) is an equity investment often used by 5 Financial when constructing financial strategies for clients.

If you’re not sure what an ETF is, here’s a definition:

“An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.”*

ETFs offer a way to invest in a large number of companies, and this has the added benefit of distributing risk. ETFs used in our clients strategies have been constructed to include companies with a history of offering high and sustainable income. Jason also spoke about the value of incorporating global ETFs (as well as Australian ETFs) in order to increase diversification in clients’ portfolios.

Australian-based ETFs are popular with many clients, frequently enabling them to access franking credits. This is where the company being invested in has already had its profits taxed, so the investor gets a rebate of the tax paid. For people who are in a zero tax bracket (and this often includes retirees), this rebate can supply them with a reasonable tax refund.

There are a number of interesting topics addressed in the interview. It’s well worth 7.12 minutes of your time in our opinion! Watch the video here.

If you’re interested in finding out more, make an appointment to speak with one of our financial advisers for a no-obligation, no-cost consultation. Contact us today to book a time.

*Source: Investopedia (13.12.17)

2018-01-22T08:14:23+00:00 December 13th, 2017|