David Gonski is one of Australia's most-respected business leaders and Chancellor of UNSW. In this talk to the Australian Graduate School of Management, he describes nine lessons for long-term business success.
Know more of Gonski’s future-proofing insights here
Investors with a consistent investment approach which avoids chasing performance should reap rewards over time. A recent US study reveals a persistent gap between reported returns and what investors actually receive.
Financial Planning Association of Australia
Live your today, plan your tomorrow
A financial plan gives you the confidence to get through today and prepare for the future, no matter what life throws at you.
Celebrating the 21st Financial Planning Week in Australia from 4 – 9 October 2021, joining forces with global celebrations of World Financial Planning Day on Wednesday 6 October and World Investor Week from 4 – 9 October.
NEW RESEARCH
What are the money and life issues Australians are facing 18 months since the COVID-19 pandemic started? How has this period of time impacted people’s finances?
The FPA has commissioned research, FPA Money & Life Tracker: Freedom edition, to determine the impact of COVID-19 and the consequent lockdowns on Australians’ work income, financial habits and outlook.
Here are some interesting insights from this year’s research report FPA Money & Life Tracker: Freedom edition:
The top financial goals of Australians over the next 12 months are:
Hit a savings goal – 52.4%
Pay for a holiday – 44.4%
Pay off mortgage – 32.4%
Start investing – 16%
For Australians who see a financial planner
11% increased contact with their financial planner in response to the pandemic
6.5% are embracing digital platforms to receive financial advice
Interestingly, the top three changes Australians made in response to the pandemic include:
Being more frugal about lifestyle choices – 44.7%
Increasing savings – 43.9%
Focused on paying down debts as a priority – 41.3%
This year’s research follows on from FPA’s 2020 Money & Life Tracker: COVID edition, a report which revealed the financial concerns of Australians, their experience of money-related stress and changes in financial behaviour they’d made in response to the financial consequences of the first year of the pandemic.
The attached note looks at the recent pull back in investment markets and renewed uncertainty regarding the outlook. The key points are as follows:
The key drivers of poor housing affordability and high household debt levels in Australia have been low rates and poor housing supply.
Macro prudential controls to slow home lending now look imminent. But this is just a cyclical measure.
More fundamental measures to improve housing affordability need to focus on boosting housing supply and decentralising away from major cities.
If you’re one of thousands of people who has lost income due to COVID-19, you might be finding it hard to pay your bills. Here are some tips to help you get back on track.
As COVID-19 lockdowns continue across much of eastern Australia, many people have once again found themselves out of work. Those working in service industries, and casual workers in particular, are doing it tough, and your cash reserves may be getting low.
If you’re feeling the pressure of mounting bills, it can be very stressful. But there is help at hand. Depending on your situation, you could be eligible for government financial support. And, you can always negotiate an arrangement with your suppliers that lets you hang onto your cash while you weather the COVID-19 pandemic.
Residential property and geared funds are quite similar in terms of the leverage required to invest. We discuss how geared Australian funds can offer diversification to a portfolio.
The attached note looks at the outlook for the Australian dollar and what it means for investors. The key points are as follows:
Since its February high of around $US0.80 the $A the $A has fallen on the back of global growth concerns, a slowdown in China and the Delta outbreak in Australia.
However, there is good reason to expect the $A to resume its rising trend: sentiment towards the $A is negative; global growth is likely to remain strong; commodities look to have entered a new super cycle; Australia has a large current account surplus; and Australia is likely to see strong growth next year.
There is a case for Australian based investors to tilt a bit to hedged global investments but while maintaining a still decent exposure to foreign currency given the diversification benefits it provides.
See full article here
MLC just released these eBooks that may help you in case you are leaving your employer due to redundancy, in getting the care you need or in planning your estate. You can check the following links below.
If someone offers to withdraw your super or move it to a self-managed super fund (SMSF) so you can access the money, it's probably a scam.
Learn how to spot a superannuation scam, and where to report it.
With pandemic lockdowns in place across much of the country, is now still a good time to look for a new job? After falling to a 10-year low in June, the unemployment rate is again tipped to edge higher. So what does the future hold for Aussie workers?
Find out more here
If your bills or loan repayments are getting out of control, talk to someone who can help you understand your options. Taking action straight away can stop a small problem becoming a big one.
Click here to know some practical steps you can take to get your finances back on track.
China is seeing a regulatory crackdown on tech companies, the property sector and inequality aimed at supporting its middle class.
The shift to “bigger government” in China likely has further to run.
Chinese economic growth is likely to be soft this half but policy easing and maybe a pause in some regulatory moves should allow a rebound next year.
This will be positive for commodity prices and Australia.
The attached note looks at relative strength of share markets at a time when bond yields have fallen sharply on the back of concerns about the threat to economic activity from Delta coronavirus outbreaks amongst other things. The key points are as follows:
Bonds and shares often diverge – we saw this a year ago with shares rallying but bond yields staying low.
Shares have been boosted by strong earnings news, improved valuations, investor awareness of last years’ experience of a post lockdown bounce back, vaccines providing optimism in a more sustained reopening, some pressure for more stimulus & M&A activity.
While shares remain vulnerable to a correction, the trend is likely to remain up.
The current environment seems to be one of extreme uncertainty. We have seen a strong economic recovery from last year’s global and Australian recessions – but there are worries about the resurgence of coronavirus driven by the Delta variant, peak growth, peak monetary and fiscal stimulus, high inflation, and high debt levels. And ‘get rich quick’ trading around crypto currencies and ‘meme’ stocks like GameStop on the back of the Reddit/WallStreetBets forum phenomenon have seen some question traditional approaches to investing. In the meantime, investors are getting bombarded with more information and views around investing than ever.
Despite this, the basic principles of investing remain timeless. Fortunately, some investment experts have a knack of encapsulating these in a few words that are insightful and inspiring. This note looks at those of particular relevance to the environment investors face today drawing on Sir John Templeton, Jack Bogle, Peter Lynch, Warren Buffett, Aldous Huxley, Frank Zappa, The Beatles and others.
More information here
Australians from all walks of life are being urged to speak up if they suspect they or someone they know are being subjected to financial elder abuse.
Click here to know more
With many people experiencing financial stress this year, we look at what you can do to improve your financial (and mental) wellbeing.
Link to full article here
The attached note takes a look at the renewed rise in coronavirus cases globally and the outbreak in Australia and the implications for the economic recovery. The key points are as follows:
The news on coronavirus has been bleak again lately - with rising cases globally and the ongoing NSW lockdown.
However, there are five reasons for optimism: lockdowns still work against Delta (eg, in SA & Victoria where lockdowns were able to be relatively short because they started early and hard); vaccines are working; once lockdowns end economic activity rebounds quickly; the threat posed by Delta will keep fiscal & monetary policy easier for longer; and vaccinations are ramping up in Australia.
This note takes a look at seven charts we highlighted in January for investors to watch as being critical to the investment outlook this year. Put simply, where are they now? The key points are as follows:
While shares are at risk of a near term correction on the back of coronavirus and inflation concerns, the trend is likely to remain up against the backdrop of continuing economic recovery and low interest rates
Seven key global charts worth keeping an eye on by investors are: the trend in new coronavirus cases and deaths - particularly in the UK; global business conditions PMIs; unemployment & underemployment; global inflation; bond yields; the gap between earnings yields and bond yields; and the $US.
Click here to read more
In the last 12 months, we've witnessed a period of extraordinary change yet despite the odds, markets are holding up incredibly well. Our investment experts from around the world share insights from their region and look and some of the opportunities and pitfalls facing investors in the new financial year.
To read through the full review, click here
ASIC is alerting investors about fake Telstra Corporation Limited (Telstra) corporate bonds
Scammers are promoting Telstra bonds offered on the ASX to legitimise the existence of the fake bonds
Do not buy bonds from Telstra (or any other company) that are offered via email or as a recommendation from a comparison website – these are a scam.
Read here for more information