INSIGHTS

The festive season is a great opportunity to spend some quality time with family and friends. It’s the best time to truly relax, go on a holiday, or shop up a storm at the boxing day sales. It is also a good time to reflect on what’s happening in the world and reflect on your own financial position. In the last few months we have been subjected to an endless flow of negative news. We’ve been getting daily updates on the Banking Royal Commission and sensational news stories about the political and economic state of the world. But are things really that bad?

FY2018 results

Results for FY2018 generally met expectations, with earnings growth of companies in the ASX200 up around 9%, against expectations of 7%.

The unfortunate facts about cancer

In Australia, cancer is the second most common form of death and accounts for about three in 10 deaths. In the under 40 age group, cancer is the largest cause of natural disease deaths in younger Australians.

Our mission

In 2013, Ian Walker and I established Lantern Advisory to "deliver holistic and independent advice to create and protect the wealth of our clients". However, our mission has always been much deeper than this statement.

The Australian term deposit landscape

The size of term deposits in Australia held with Approved Deposit Institutions (ADIs) is around $530bn, with 45% or more held by Australians who are aged 65 years or more (ASIC report 353). The average term deposit invested is around $77,000 and banks are the main providers of term deposits.

Demand for Self Managed Superannuation Funds (SMSFs) is still strong, particular in the 45-55 year age bracket.

The ASX 200 reporting season for August 2017 was very good, although not great. Almost 91% of full-year reporting companies produced a profit, above the long term average of 87% but down from 94% in February 2017.

For many Australians, their wealth journey consists of owning a family home and accumulating superannuation. But many would be interested to know there are other wealth generating strategies available.

In my experience as a financial planner, around 10% of Australians prepare and stick to a personal household budget. However, budgeting is the first step in establishing a good financial plan and achieving your financial goals.

I know it’s hard to do, especially when unforeseen expenses occur like blown air-conditioners in summer, car registration, insurance and Christmas gifts crop up; but in the current climate of lower investment returns and a slowing domestic economy, we should all be reigning in our spending habits.

With holidays fast approaching for most and Christmas on the horizon, have you stopped to think how you will fund your additional expenses during December and January?