Oliver's Insights – 2022-23 saw investment returns rebound - but is it sustainable?

The key points are as follows:

  • After the rough ride of 2021-22, the last financial year turned out to be a good one for investors as shares rebounded thanks to falling inflation and hopes rates are near the top.

  • Shares are at risk of a pull back as central banks remain hawkish and recession risks are high. However, returns over the next 12 months should still be reasonable as falling inflation takes pressure of central banks enabling rate cuts.

  • The past financial year provides yet another reminder of just how hard it is to time investment markets – with shares rebounding just when everyone was most gloomy about inflation and interest rates. The key as always is to adopt a long-term investment strategy and turn down the noise.

Read full article here

AE News Update

Upskilling and Reskilling: Strategies to Increase Employability

In a fast-paced, evolving work environment, continuous learning and adaptability are paramount to dealing with unemployment and in building and succeeding in one’s career.

Employees and employers alike need to embrace upskilling and reskilling strategies to meet market demands and enhance staff employability.

Click here to read the full article.

AE News Update

Learning From Bananas: Insights Into Stocks and Bonds as Investments

In the world of investing, stocks and bonds often take centre stage. They represent two of the most common types of investments, each offering unique benefits and risks. As an investor, understanding stocks vs. bonds is key to building a diversified portfolio tailored to your financial goals.

Just like bananas, stocks and bonds in the financial market fluctuate in price over time, and these price movements can offer valuable insights into investing strategies.

Stocks vs. Bonds — the Basics

When you invest in stocks (aka equities), you’re buying a small piece of a company. As a shareholder, you stand to benefit from the company’s success in the form of an increased stock price and potential dividend payments.

Bonds, on the other hand, represent debt. Investing in bonds means you’re essentially loaning money to a corporation or government entity for a specified period. In return, you receive regular interest payments. At the end of the term, the bond issuer repays the principal.

Whether stocks or bonds are “better” depends on your personal financial goals, risk tolerance, and investment timeline.

Click here to read the full article.

AE Newsletter - June 2023

Steps to Building an Emergency Fund and Why You Need One

Life is unpredictable, and financial surprises can arise when you least expect them. This is where an emergency fund comes in

Building Your Emergency Fund: A Step-by-Step Guide

1. Determine your goal amount.

2. Start small.

3. Make saving for it automatic.

4. Allocate windfalls and unexpected savings to your emergency fund.

5. Review and adjust your goal amount periodically.

6. Keep it accessible but separate.

Read full article here.

AE Newsletter - June 2023

Turn Your Passion Into Profit: Starting a Business After Retirement

Retirement is the perfect time to transform your passion into a profitable venture. With your own business, you’ll be free to work on your own terms and follow your dream.

Here’s how you can embark on this exciting journey.

1. Align your business idea with something you’re passionate about.

2. Evaluate market demand.

3. Develop a business plan.

4. Build a robust financial strategy.

5. Network and market your business.

6. Embrace flexibility and lifelong learning.

Please read full article here.

How investments are taxed + Super contributions + Ponzi schemes

How investments are taxed

  • Lower tax on your investments can help you reach your financial goals sooner. But don't choose an investment based on tax benefits alone.

  • How investment income is taxed

  • Positive versus negative gearing

  • Tax-effective investments

  • Investing and your tax return

Ponzi schemes

Ponzi schemes are investment scams that pay existing investors with funds collected from new investors. There is no real investment.

  • Warning signs of a Ponzi scheme

  • How Ponzi schemes work

  • What to do if you have invested in a Ponzi scheme

Read full article here.

Oliver's Insights - Sell in May and go away? The worry list for shares (and the good news!)

  • Shares are vulnerable to a pull back in the months ahead reflecting the rising risk of recession on the back of central bank tightening and weak seasonal influences.

  • Falling inflation should enable central banks, including the RBA, to start easing from later this year or early next providing some support for share markets.

  • Share market falls are painful for investors but the best approach for most is to stick to a long-term strategy.

Click here to read the full article.

Oliver's Insights – Peak Australian home ownership - rising prosperity (and smashed avocado) versus housing affordability

Key points

- Based on a Report by Bernard Salt, Australia’s home ownership rate peaked at 73% in 1966 as the home was then seen as synonymous with wealth and security.

- Since then, the trend has been down, influenced by a combination of demographic trends, rising prosperity and changed perceptions of wealth.

- A significant deterioration in housing affordability over the last thirty years has also likely been a key driver of declining home ownership. This risks threatening social cohesion.

- The key to improving housing affordability and help home ownership is to boost supply & encourage decentralisation.

Click here to read the full article.

Oliver's Insights – Commercial property returns under threat

Introduction

Over the last 10 and 20 years, returns from Australian unlisted commercial property have averaged 9% pa. This in part reflected the search for decent income bearing investments by investors in response to falling interest rates & bond yields that pushed up property values faster than justified by rents. However, it’s now vulnerable from the rise in bond yields over the last two years and reduced space demand flowing from “work from home” for office property and online retail for retail property.

Key points

- Australian unlisted commercial property returns have been very strong over the last two decades thanks largely to the “search for attractive yields” by investors.

- With the back up in bond yields, this driver is reversing leaving retail and particularly office property vulnerable to significant capital loss in the face of reduced space demand.

- Key to watch will be bond yields, whether the economy avoids recession and where “work from home” settles

Click here to read the full article.

Financial Stability

Financial stability is crucial if you want a comfortable and fulfilling retirement. Ensuring your financial health will help you avoid the stress and uncertainty that come with retiring prematurely.

The Key to the Ideal Retirement

1. You have peace of mind.

2. You can maintain your standard of living.

3. You will manage healthcare expenses.

4. You reduce the possibility of stressing your family.

5. You’re prepared for longevity and inflation.

Click here to read full article.

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Oliver's Insights – Australian home prices

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Australian home prices - Prices look to have bottomed as the supply shortfall dominates, but watch rates and unemployment

Key points

- Australian home prices rose again in April & along with other indicators suggest the home price downturn is over.

- A surge in demand on the back of high immigration and constrained supply appear to be dominating the negative impact of higher interest rates

- As such we have revised up our property price forecasts to flat to up slightly for this year with a 5% rise next year.

- However, the risk of another down leg in prices is high as interest rate hikes continue to impact.

Click here to read the full article.

Turn up your scams radar + Manage living costs + Make a balance transfer work for you

Protect yourself from scams

Use this four-step guide to turn up your SCAM radar so you can spot a scammer and protect yourself. By keeping up to date with the latest scam trends, you can stay one step ahead of scammers

Step 1: STOP
Step 2: CHECK
Step 3: ACT
Step 4: MONEYSMART

Read full article here.

Manage the cost of living

Having a plan will help you feel more prepared when your living expenses increase. There's also support and services available if you're feeling overwhelmed.
Practical steps to help you manage living costs and keep on top of bills.

  • Make a plan

  • Get help if you need it

Read full article here.

Benefits of the Commonwealth Seniors Health Card

The Commonwealth Seniors Health Card (CSHC) is a government-funded program in Australia that provides eligible seniors with access to a range of healthcare services and concessions. 

The program is designed to assist seniors in managing the costs of healthcare and living expenses by providing discounts on prescription medicines, medical services, and utility bills. 

Benefits:
- Access to discounted prescription medicines
- Medical services
- Discounts on public transport
- Savings on utility bills
- Free or discounted rates on dental, hearing and eye care services

Click here to read the full article

How parents can prepare for the cost of education in Australia

Education is a vital investment in your child’s future, but it can also be a significant financial burden for those who are unprepared.

Key Points :
- Estimate your child’s educational expenses.
- Make a budget and save.
- Pay off debt ASAP.
- Consider investing.
- Practise money-saving tips with your children.

Read full article here

Oliver's Insights – Five charts on investing to keep in mind in rough times like now

Key points

- Successful investing can be really difficult in times like now with immense uncertainty around inflation, interest rates, issues in global banks and recession risks impacting the outlook for investment markets.

- This makes it all the more important to stay focussed on the basic principles of successful investing.

- These five charts focus on critical aspects of investing that are insightful in times of market stress: the power of compound interest; don’t get blown off by cyclical swings; the roller coaster of investor emotion; the wall of worry; & market timing is hard.

Click here to read the full article.

Compare mortgage rates + Solar investment scam + Greenwashing

How much will your mortgage repayments be?

  • Use our calculator to compare different rates

Click here to read full article.

Scam alert: United Solar Investments

  • United Solar Investment promotes a suspicious scheme which claims to allow Australian consumers to purchase an interest in solar panel systems. The scheme is being promoted as a ‘financing of photovoltaic solar power generation’ offering unrealistic returns of up to 20% and unlimited referral commissions.

Click here to read full article.

Investing without the greenwashing 

Find out what ESG investing is and how it works. So you can choose investments that match your goals and values.

What ESG means

  • ESG investing is when a fund considers sustainability (including environmental, social and governance factors) to inform their investment strategy.

  • There is a growing demand for ESG investing, also known as sustainable (or sustainability-related), responsible or ethical investing.

Click here to read full article.

Oliver's insights - seven key charts for investors to keep an eye on

Key points

  • We are reasonably upbeat on the outlook for investment markets this year, but it won’t be smooth sailing and after a strong start to the year share markets are vulnerable to a further pull back in the short term given ongoing issues around inflation, interest rates, recession and geopolitics.

  • Seven key charts worth keeping an eye on remain: global business conditions PMIs; US inflation and our Pipeline Inflation Indicator; unemployment & underemployment; inflation expectations; earnings revisions; the gap between earnings yields and bond yields; and the US dollar.

Read full article here