NEWS

We have a feature booklet this month, 'Value of an Adviser', which looks at how financial advisers have added 5.7% in value over the past year to their clients by providing counsel to them on matters such as tax planning, social security and estate planning. This included avoiding them making kneejerk decisions, reweighting their portfolios and encouraging clients to remain disciplined.

We have a feature booklet this month, 'Reducing the Trauma'', which discusses the personal cost of critical health conditions today, providing lots of information with case studies and key statistics of some common critical conditions. Our article 'Has your life changed recently?' then looks at life changes/situations where you are highly recommended to review your will.

​Our video this month, 'Superannuation death benefits dispute sparks questions on super funds' 'governing rules'', discusses the legal dispute that erupted over the bequeathment of the superannuation death benefits of deceased Victorian court clerk Ashleigh Petrie, where the super fund did not comply with the nomination made by Ashleigh because it did not comply with the governing rules of binding nominations. Our article 'A look inside superannuation death nominations' provides a similar example and then looks at who can be nominated as a beneficiary and about donating to charity.
 

Australia's inflation remains "high" but does this justify another rise in interest rates?

This month's Your Wealth take, on American politics, financial markets, the economy, Bitcoin, staff movements and Leonardo DiCaprio

It appears global investors are waking up and suddenly realising  - who is going to power the artificial intelligence (AI) demand boom

This month we have a feature report, 'How Australia Retires', which examines Australians’ retirement needs and attitudes in the lead-up to and through their retirement years. Our article 'Many Australians have a fear of running out' then looks at how the report has shown that many Australians, regardless of whether they are still working or have already retired, have a growing concern for longevity risk.

Geopolitical events such as wars are commonplace, unfortunately, and they are something investors will need to constantly grapple with when setting their short- and long-term investment strategies.
Given the conflict in the Middle East,
it may be worthwhile examining how markets have behaved during pastgeopolitical events.

​Australia’s borrowers have been given another reprieve, with the Reserve Bank leaving its key interest rate on hold for a fifth consecutive board meeting but retaining the option of a further rate hike if needed. “Inflation is easing but has been doing so more slowly than previously expected and it remains high. The board expects that it will be some time yet before inflation is sustainably in the target range,” the RBA said.

Welcome to the May issue of Financial Insights and Updates.

With the Federal Budget over, it is time to review your finances before the end of the financial year.

Some tips to consider before the EOFY include:

• Check your deductions (donations, Income Protection insurance premiums, work from home)

• Consider voluntary superannuation contributions

• Work out investment property’s income and expenses.

One thing you can say about world events is they it is never boring.

Inflation, Interest Rates, Investment Markets and Geopolitical Events certainly keep us on our toes.

​Our video this month 'Cleaning up after Storms' provides tips on what to do in the aftermath of severe storms, covering 1. Your safety, 2. Contacting your insurer, 3. Cleaning up. Our header article 'The impact of natural disasters on property values and insurance' then looks at how natural disasters such as storms, cyclones, flooding and bushfires can have a number of flow-on effects for those not directly affected that are of particular importance to homeowners and first home buyers.

Geopolitical events such as wars are commonplace unfortunately and something investors will need to constantly grapple with when setting their short-term and long-term investment strategy. Given the recent escalation in tensions in the Middle East involving Iran and Israel, it may be worthwhile providing investors historical context on how markets have behaved during past geopolitical events which may assist in how to think about the current situation.

​Our video this month 'Her Investing Story', along with our article 'Why women should take early financial steps', discusses the importance of women taking charge of their finances early, in order to close the gap on earnings and super balances. These discrepancies are made worse by statistics showing women are living longer than men by four years.

​Our video this month 'How to Create a Zero-based Budget', along with our article 'Zero-based budgeting - Making every dollar count', provides you with information on a method of budgeting that is ideal for people who love details and want to know where every single cent goes. This method will help you to review existing expenses, justify new expenses, understand your spending, limit impulse buying and achieve your savings goals.
 

This month we have included a 'Vanguard Economic and Market Outlook 2024' which is signaling a return to sound money. Sound money is the result when interest rates are above the rate of inflation, a development expected to persist in the years ahead. 

This month we have a chart ’20 most common investing mistakes’ which shows the top mistakes to avoid as an investor. Other interesting articles include ‘Setting up the next generations of retirees’, which highlights the importance of early investment education and financial advice for the younger generations as average life expectancies rise.

This month our video ‘What is a power of attorney’ provides you information about what a power of attorney does, why you might need one and whom you can nominate to be your power of attorney.

Let the first month in the final quarter of 2023 serve as a reminder that we should not procrastinate, especially when it comes to the important things in life, including ensuring that you have made progress on the financial goals you had set for this year.

A review of recent market performance, reporting season on the ASX and the potential impact of geopolitical events on the world.

A critical aspect of portfolio
management is generating
growth. While dividends play
an important role in investing, this
discussion is about something different:
pure, unadulterated growth.
 

​The 2023 Intergenerational Report was handed down by the Government on 24th August, outlining projections for the outlook of the economy to 2062-63. Our newsletter this month has included an article, 'What you need to know about the 2023 Intergenerational Report', with key points that you need to know, and also the government’s summary of the report. For the full 296-page report, click on this link – Intergenerational Report 2023

Our article ‘Why you may never retire’ goes into the challenge that millennials face when it comes to retirement planning in the face of rising costs of living, whilst grappling with large debts and limited financial resources. The other article this month worth paying attention to is ‘More Australians are unlocking home equity to fund retirement’, which looks at the growing number of Australians who are downsizing to free up cash for use during retirement. As always, feel free to forward any articles to friends and/or family that you feel may benefit from the information.

This month, we feature the video ‘The “secret” to financial freedom? Persist while others quit’, which shows the value of an initial $10,000 investment in the Vanguard Diversified High Growth Index ETF (VDHG), that kept invested vs selling when markets were volatile. Definitely an interesting chart, to see what it means to persist in the face of market volatility.

With one day of trading left for current financial year, we can look back over the last twelve months as a positive on the ASX.

The last twelve months has seen the ASX up 7.4%.  Before we get too excited, it is important to remember there was a massive sell off in June 2022 with the All Ordinaries falling nearly 10%, so the last year was starting from a pretty low base.

This month, we have included a report from Vanguard – ‘How Australia Retires’, which is a study exploring Australians’ attitudes towards retirement and how they feel about this phase of life.

The real world around us is rapidly being digitalised. Consider for a minute the notion that our environment is a living system with infinite characteristics from which
we can measure and capture data. This data can then be processed into information to help us have a greater understanding of our environment so we can better manage our lives.

With the Federal Budget over, it is time to review your finances before the end of the financial year.

Some tips to consider before the EOFY include:

• Check your deductions (donations, Income Protection insurance premiums, work from home)

• Consider voluntary superannuation contributions

• Work out investment property’s income and expenses.

The Federal Budget May 2023.

​

​They have targeted cost of living relief, investment in Government services and claim to have alleviated inflationary pressures.  For the first time in 15 years a budget surplus has been forecast. 
High commodity prices, a strong jobs market and increasing immigration have been credited for the surplus.

After a century in relative obscurity,
hydrogen energy is set to step up and
play a critical role in transitioning
the global economy’s reliance on fossil fuels (coal, oil, natural gas) to a world that runs exclusively on renewable sources, such as wind, solar and, yes, hydrogen.

The year seems to have flown past and we are now in the second quarter of the year, with Easter over and ANZAC Day coming up. This month we have our first quarterly economic update for the year.

Other articles this month include ‘SMSF – The Next Gen’, which looks at the rising number of Australians under 45 setting up SMSFs,‘ Transitioning into Retirement’, which looks at options for those close to retirement with regards to their superannuation accounts and ‘The benefits of reinvesting your income distributions’, which considers the compounding growth that can achieved by having a higher investment balance.

This month we have included a report from AMP: ‘What Wealthy Means to Australians in 2023’, which draws upon a range of demographic, social and cultural indicators to discuss what it takes for middle class Australians to feel wealthy. Definitely an interesting read because it’s not all about money.

On Friday 10th March, the US government's banking regulator shut down the normal operations of the 'Silicon Valley Bank' based in California.  This is a regional bank that is ranked 18th amongst all the banks in the US with a market share of 1.5% of all US banking assets. 

Every time I put out a market update, the introduction tends to read along the line of ‘there is a lot of volatility in markets’.  This update is no different.

There are some accelerating changes underway in the western political economies, including the US and Australia. As long-term investors, we need to keep one eye on the economic horizon and
one on the immediate chaos of the markets.

With two months of the year almost behind us, hopefully you have settled into a good routine for the year ahead. Having said that, unexpected changes in your financial circumstances can happen at any time and for all number of reasons, which in turn can sometimes cause short and long-term disruptions to your financial plans.

If you have yet to spend some time assessing your financial situation and making plans for 2023, it is still not too late because January is Financial Wellness Month. 

Click the Read More button below to access all articles and newsletters released in 2022.

Click the Read More button below to access all articles and newsletters released in 2021.