INSIGHTS

Since the start of this calendar year, and certainly since the Federal election, the topic of interest rates, and what direction they will move in, is always popular at social and business functions. Maybe it’s an easy topic for small talk, as everyone has an opinion and people are really interested in knowing (or guessing) the movement up or down and which central bank will be next to cut.

In the current state of economic uncertainty, with the Banking Royal Commission, record low interest rates, and conflicting views about the health of our economy, some consumers are tempted to ‘throw the baby out with the bath water’ and hide their retirement savings under the mattress, instead of seeking financial advice. It’s a shame, because research shows that having a dynamic, productive relationship with a trustworthy, experienced and independent financial adviser helps improve wealth.

One of the positive outcomes from the Royal Commission is the cost of managing investments. The cost of investing in superannuation, or other investment vehicles, is coming down.

As we head into the federal election, one of the more contentious policy announcements has been the removal of refunding franking credits, in certain circumstances.

When it comes to investing, focusing on the negatives isn’t helpful. Instead, it’s better to develop your personal investing strategy and then stick to it. This is often easier said than done. How do you know which risk factors are relevant to your portfolio? Not all risks are the same and each portfolio has different underlying goals and objectives.

2019 is likely to be filled with a large amount of ‘media noise’. We are heading for a Federal Budget in April, and a Federal Election in May, on top of all the other sensationalised news items we are subjected to day in and day out.

Are you finding this noise distracting? Have you also noticed the Australian economy’s performance is a bit flat?

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?

There has been plenty of media coverage lately on the property bubble, the property downturn, the property headwinds, first home buyers, too many units and many other click-bait-orientated headlines. 

FY2018 results

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

Following on from my previous blog, Financial Advice for 30 Somethings, I thought I would touch on financial considerations for people in their 40s.