Inheritances can be a tricky thing to navigate, most of us have options and questions go around in our heads for months before making a solid decision.
This week’s article addresses some of the common questions asked about what to do after receiving an inheritance, how it impacts your pension eligibility, and how to best invest it.
See the link below for the full article:
Lonsec Market Commentary – January 2020
Following a very strong performance in 2019, the Australian equity market started 2020 in the same manner.
It’s possible that markets were factoring in some optimism on economic growth and earnings, although there is scant evidence of what the RBA Governor, Philip Lowe, described as a “gentle turning point” in the economy.
Highlighting the precariousness of markets was the volatility caused by the outbreak of the Coronavirus, which saw shares decline in late January and early February.
Over January, the S&P/ASX 200 Index returned 5.0%, led by large cap shares. The Health Care sector (+12.0%) continued its remarkable run, building to a rolling 12-month return of 54.8%.
Lonsec Market Commentary – January 2020
(Lonsec, January 2020)
This week’s article takes a look at the Australian Superannuation watchdog, APRA, and the “MySuper Heatmap” that they have created to provide a clear ranking of the performance of MySuper funds.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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A great read for those who would like to learn more about their superannuation fund and who may be interested in comparing funds by utilizing this tool.
See the link below for the full article:
LIFE Quarterly – October 2019
In this edition we take a look at how well you know Superannuation in Australia; delving into changes made to the fine print of legislation to bring you the 3 main points you should know to best manage your money.
How can you maximise your use of concessional contributions? Are you now exempt from the super contributions work test? As well as are all of your insurances in place following the ‘Protecting Your Super’ reforms?
We further look at the inter-generational wealth gap, how the wealth of the Baby Boomer generation has virtually doubled in the last decade, and provide some guidance for planning for distributions of this wealth.
Lastly, longevity is only a risk for some of us! This edition looks at the impact of poor health, specifically obesity, and how it can burden your cash and retirement funds.
Lonsec Market Commentary – October 2019
Following relatively strong performance in the September quarter, the outlook appears mixed across most sectors. Australian shares were in the red in October, dragged down by the Information Technology (-3.95) and Financials (-2.8%) sectors.
Optimism among investors is being driven by monetary stimulus, signs of a recovery in the housing market, and a soft Australian dollar, which boosts earnings from foreign operators.
Working in the opposite direction is sluggish wages growth, relatively weak building and construction activity, and an uncertain global outlook.
Lonsec Market Commentary – October 2019
(Lonsec October 2019.)
Lonsec Market Commentary – September 2019
The Australian economy has not suffered a recession (defined as two consecutive quarters of negative economic growth) for almost 28 years, yet for many conditions will appear stagnant.
With ‘full employment’ thought to be closer to 4.5%, it is difficult to see wages growth picking up much from current levels, particularly if the cyclical weakness in employment, as suggested by job ads data and business surveys, comes like to fruition. From a monetary policy perspective, the likelihood of a 0.50% official cash rate by early 2020 is quite high. The June quarter data shows that core inflation is running at 1.4% and the RBA does not see it reaching 2.0% until 2021.
Lonsec Market Commentary – September 2019
(Lonsec September 2019; Issue date 10/10/2019)
Federal Budget 2019
Under the Government’s economic plan, jobs are being created and the
budget is returning to surplus. The 2019-20 Budget reinforces
the Government’s plan to invest in Australia’s future by strengthening
the economy while keeping taxes low and guaranteeing essential
services.
In this Budget, the Government is providing additional tax relief of
$158 billion. This is on top of the $144 billion in tax cuts legislated
in last year’s Personal Income Tax Plan. The Government is
also helping businesses reinvest, employ more workers and grow, by
increasing and expanding access to the instant asset write-off.
For more information on the budget, please view the Federal Budget Overview attached below;
In addition, if you would like to discuss any of the Federal Budget topics feel free to contact Marijana Ravlich on (08) 9322 1882.
LIFE Quarterly – June 2019
In this month’s issue of Prepare for Life, we look at Australia’s growing household debt. Contributing to this debt are options such as Afterpay or Zip money. It is a good idea to refer to your Budget plan before signing up to these payment plans, to ensure you
have enough money to pay for upcoming expenses such as bills, to
avoid any stress.
Are you thinking of borrowing to invest? We take a look at the options retirees have when choosing a loan and the things to consider. Before speaking with your lender, it is always best to discuss your options with your financial adviser to ensure your Pension is not affected.
Albert Einstein once said “Compound interest is the eighth wonder of the world” The article regarding Compound Interest compares whether saving small amounts for a long time is more
beneficial than compared to putting larger amounts aside later down the
track.
Also, with so many insurance companies around, selling so many different types of insurance, it can be difficult figuring out the correct type and amount of insurance you require. The article provides some helpful ideas when applying for an insurance policy.
Lonsec Market Commentary – August 2019
Australia’s GDP growth for the June quarter recorded only 1.4% year-on-year, the worst result since the GFC.
While in line with expectations, the result highlights the challenging environment on the spending side of the economy, with state final demand (a broad measure of spending) recording zero quarterly growth in NSW.
The renewed bout of risk aversion through August and September reflected the escalation in the US-China trade and technology war, along with evidence of further slowing in the global economy. An inversion of the yield curve rattled markets, giving rise to the debate about the timing of the next recession and whether the US Fed was doing enough to fight the slowdown.
Lonsec Market Commentary – August 2019
(Lonsec August 2019, Issue date: 17-09-2019)
Lonsec Market Commentary – July 2019
The minutes from the RBA’s July meeting noted that low wages growth and spare capacity in the labour market meant there was room for the bank to cut rates. The underemployment rate in May was 8.6%, barely below the level seen in 2014 when the unemployment rate was more than 1.0% higher at 6.5%. The participation rate is now at a record 66.0%, up from 64.5% in 2014.
Markets enjoyed a short-lived reprieve from the US-China trade conflict in July, but economic data points to a further slowing in the global economy. The US Federal Reserve’s recent rate cut appears justified given the re-emergence of trade tensions, with the US administration threatening 10% tariffs on the remaining $300 billion of Chinese goods.
Lonsec Market Commentary – July 2019
(Lonsec July 2019, Issue date 13-08-2019)
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