Defensives: Why Fixed Interest Should Be Back on Your Radar

Posted by James Cavanough on 19-Jun-2024 12:16:49

Interest rates have increased over 4% in the past couple of years following the dramatic inflation spike in the US on 15 June 2022 (9.1%), causing cash flow pain and much uncertainty in certain areas of the market and economy affecting individuals, households and small business. However, a certain asset class has returned to significance and relevance, that is fixed interest. Fixed interest is around 10 times the size of the equity market so is meaningful, although widely misunderstood.

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Topics: market update, investment strategies, diversified portfolio

Time to Diversify? US Equities & Fixed Income Shine as Asian Market Slows

Posted by James Cavanough on 07-Feb-2024 14:50:24

Asian markets from an investor’s view point have been rather underwhelming these last few years, with sentiment towards China (being 43% of the MSCI Emerging Markets Index) remaining disappointing despite relatively positive industrial production and retail sales data. The ongoing weakness in their outsized property market, a soft consumption-led recovery and geopolitics in Taiwan and the US have all weighed on sentiment.

Chinese policy makers and their central bank have often cited their willingness to stabilise the economy and promote their economic strength however their measures to achieve sustainable growth has not eventuated to a level or pathway required at this point in time. 

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Topics: investment portfolio, financial planning, international investing

Developing a Safe Retirement Withdrawal Rate

Posted by James Cavanough on 17-Aug-2023 12:26:12

Retirement planning is an investment advisers so called “bread and butter”, with resources, research and technology available to help manage a client’s retirement journey. Retirement advice and an acceptable drawdown rate has become a more topical discussion point where more Australian retire without advice, and in a shrinking pool of advisers locally. Unexpected events have wreaked havoc on individuals and families, such as flood, covid and an inflationary event in Europe all affecting asset values, performance, income and diverging risks sped up by ever-changing technology and the looming need for better security.

According to the Australian Bureau of Statistics (ABS, 2020), 16% of Australia’s population are retirees or 4.2 million (as at 30/6/20) whose average retirement age is 55, equal to superannuation preservation age that is increasing depending on your date of birth, to age 60. In terms of longevity, females live to 85 on average and 81 for males. So, this means your retirement savings may need to last from 20 to 30 years time.

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Federal Budget 2023/24 - Key Highlights & What You Need to Know

Posted by James Cavanough on 11-May-2023 14:00:00

On the evening of 9 May 2023, the Government delivered its second Budget in the current parliamentary term.

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Topics: superannuation, budget

Fed Hawkish, Rates Higher: Is Your Portfolio Ready?

Posted by James Cavanough on 23-Mar-2023 15:36:29

It is quite clear central banks are more concerned about their goals of inflationary control than the folding of some smaller US banks, Credit Suisse (now known for poor quality management) than your personal goals.

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Topics: market update

A 2023 SMSF Update

Posted by James Cavanough on 09-Mar-2023 12:55:27

This blog provides an update on the SMSF sector, and given its considerable size and representation, it is worth providing some factual information. There has been some mis-information distributed by the media of late so we have sought to clarify where things stand today.

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Succession Planning - Considering Future Planning, Legacy and Philanthropy

Posted by James Cavanough on 12-Jan-2023 15:33:51

Welcome to 2023. Hope you and your families had an enjoyable & refreshing Festive season break.

As we begin of the year, our third and final Estate & Succession Planning topic concentrates on future planning and charitable giving.

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Topics: Succession

Market Update - 30 June 2022

Posted by James Cavanough on 01-Jul-2022 12:47:17

Here we are again
Does not seem long ago then
But something feels different
In what shape is this predicament

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Topics: market update

Succession Planning: Potential Exit Strategies Business Owners to Fund Retirement

Posted by Ian Walker on 02-Jun-2022 10:31:44

As you may recall, we previously launched the first part in our commentary on Succession Planning and the importance of establishing the right strategies, which accurately reflect your wishes.

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Topics: financial plan, wealth plan, Succession, Retirement, Exit Strategy, small business CGT concession

Federal Budget 2022/23 - Summary & What You Need to Know

Posted by James Cavanough on 31-Mar-2022 09:50:20

The 2022/23 Budget, brought down on 29 March - 6 weeks earlier than normal, is the last Budget before the next Federal Election is due to be held. The latest date for the election is 21 May 2022.

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Topics: superannuation, budget