DelphiNews February 2014

I have recently completed a Strategic Leadership Program at Stanford Graduate School of Business. The program provided insightful views on the future of Financial Services and access to great speakers, including Tom Mendoza, Vice Chairman of NetApp.

Another highlight was meeting Walter de Brouwer, CEO of Scanadu a group which is shortly bringing the Tricorder to market. This technology will revolutionise medicine. Our challenge is to endeavour to provide leading services to our clients which result in your financial security.

If you would like to know more about the program or have some suggestions yourself about how Delphi might improve our services to you please contact us.

I’m pleased to enclose the February 2014 edition of Market Update.

Global economies continued to improve, with the International Monetary Fund revising its 2014 global growth forecast up to 3.7%.

Over in Europe there are signals the economic recovery is gaining momentum, with industrial production up 1.8% in November and car sales increasing for the third month in a row. However, the risk of deflation remains at the forefront of the Eurozone with CPI increasing only 0.8% in December.

In domestic news, economic growth remains weak with below trend growth rates. While the December unemployment rate did remained unchanged at 5.8%, we saw employment rates fall in every state except Western Australia. On an encouraging note, the housing market is looking positive with housing finance approvals rising by approximately 2% per month.

In the Economic Update below, Brian Parker, Senior Investment Consultant at MLC Investment Management, reviews events in Australian and Overseas markets during January. Brian states that MLC have been increasingly concerned about world share prices running too far ahead of fundamentals.

In insurance news the CBA's Comminsure has released an update version of facts of life DVD with all new statistics.

This cleverly animated three minute film features insurance-related statistics from birth to death and all the times of life in between. This DVD remains a powerful thought provoker on the importance of life insurance. You might like to pass it on to your friends and family and suggest that they review whether they have adequate insurance covers.

Additionally almost one third (31.7%) of Australians expect a large financial shortfall at retirement with a further 25% expecting a shortfall to some extent, according to a special report: MLC Retirement Survey.

Alarmingly only 3.5% of Australians expect to have more than enough money to maintain their lifestyles in retirement.

The survey of 2,000 Australians also found nearly 70% of respondents failed to consider major financial setbacks such as a major illness or unemployment in their retirement plans, with only 8.5% having a well-considered plan for major setbacks.

The level of concern was also evident in the MLC Quarterly Australian Wealth Sentiment Surveywhich found deposits and paying off debt continues to be the top investment priorities.

Please contact us if you would like to review your financial position to ensure that your long term plans are achievable.

If you have any questions regarding the information contained in this edition of DelphiNews or if you or a family member would like to review your current investment strategy please call us on 1300 167 826.

Regards

Vince Dore CFP

Director

Vince Dore and Delphi Financial Management Pty. Ltd are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749, trading as Garvan Financial Planning/MLC Financial Planning an Australian Financial Services Licensee, Registered office at 105 –153 Miller St North Sydney NSW 2060 and a member of the National Australia group of companies.

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and/or legal advice prior to acting on this information. The material contained in this newsletter is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this email.

Level 7, 60 Carrington Street, Sydney, NSW 2000
1300 167 826

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