When navigating personal or business matters, legal questions often arise with significant implications.
Seeking proper legal advice ensures that you avoid costly mistakes and operate within the confines of the law.
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Develop an investment plan + Check before you invest + Have you got investing FOMO
Planning is the key to successful investing. Creating a plan will help you find investments that fit your investing time frame and risk tolerance, to help you reach your financial goals sooner.
Check the facts before you invest
Before you part with your money, check: Are they licensed? Can I explain how it works? Are there signs it could be a scam? What can I do if something goes wrong? Learn how.
Have you got investing FOMO?
If you're hearing a lot of buzz around a type of investment and don't want to miss out, STOP! It might be a hype-driven investment.
Oliver's Insights – Harris versus Trump - implications for investors and Australia
The key points are:
The US election has significant potential to impact markets. A Harris victory would mean more of the same but a Trump victory could lead to uncertainty particularly around trade.
Australia would be vulnerable to a rapid intensification of trade wars which is looking likely under a Trump presidency.
Historically, shares have performed better under Democrat than Republican presidents with the best outcome being a Democrat president & Republican House and/or Senate.
Moneysmart tips: Simple steps to manage your super
Your super isn't always top of mind when you're focused on juggling work, family life, and the many other responsibilities of adulting. But taking an active interest in your super now, can set you up for the lifestyle you want in the future.
New research from Moneysmart has revealed the concerning trend that nearly half (48%) of surveyed millennials admit they are not knowledgeable about maximising their super. That's why Moneysmart's new campaign aims to drive awareness about why focusing on superannuation earlier is good for your long-term financial health.
When it comes to your super, extra contributions are just one option for growing your future wealth. Check out these other ways to secure a better financial future.
Simple steps to manage your super
Check you're being paid the right amount of super
The super guarantee (SG) is now 11.5% of your income. To see how much your employer is paying you, look at your payslip or call your super fund.
How to calculate your super payments
Make sure your super fund can contact you
Your fund will use your email address and mobile number to send you important updates, including your annual statement. Reading your annual statement is a good way to stay connected with your super.
What to check in your annual statement
Check your insurance cover
Most super funds provide life cover and TPD insurance for their members. Make sure you're only paying for the insurance you need.
Tips for choosing insurance through super
Consider combining your super
Moving your super into one account makes your super easier to manage and saves on fees. You can transfer your super for free in a few easy steps.
Oliver's Insights - Will house prices crash? And what's needed to fix housing affordability
Apart from “what will home prices do?" and "where are the best places to buy a property?" the main debate around the Australian housing market has been about poor housing affordability, occasionally interspersed with a scare that home prices will crash. The most recent example of the latter was on 60 Minutes last week with a call by US demographer & economist Harry S Dent that Australian house prices could fall “as much as 50% in the coming years”. But how serious should we take forecasts for a crash? And more fundamentally how do we fix affordability?
Key points:
Predictions of an Australian house price crash create lots of interest but have been a dime a dozen over the last 20 yrs.
However, there is more to the surge in property prices than easy money with a supply shortfall being the main factor. Absent much higher interest rates and or unemployment, a house price crash in Australia looks unlikely.
The key to sustainably improving housing affordability is to boost supply, better align immigration to housing supply, reduce or delay public infrastructure spending, encourage decentralisation and tax reform.
A failure to boost affordability risks a further slide in home ownership and rising inequality.
Read full article here.
Advice Evolution Newsletter - August 2024
Stay up-to-date with the tips, news and updates from Advice Evolution’s latest newsletter.
Claiming business expenses - Your guide to claiming business expenses correctly.
Crafting a Happy Retirement: Personalised Planning and Essential Tips for a Fulfilling Future.
Why Time Is Wealth.
The problem with chasing money.
Smartly spend your time wealth.
Shifting the attention from material wealth to time wealth.
Read full newsletter here.
Oliver's Insights – Why super and growth assets really are long term investments
The key points are as follows:
While growth assets like shares go through bouts of short-term underperformance versus bonds and cash, they provide superior long-term returns. So, it makes sense that superannuation has a high exposure to them.
The best approach is to simply recognise that occasional sharp falls in share markets and hence super funds are normal and that investing in both is a long-term investment.
Oliver's Insights – Seven key charts for investors to keep an eye on – where are they now?
The key points are as follows:
Shares have hit a rough patch since recent highs with concerns about the growth outlook.
We remain upbeat on a 12-month view as falling inflation allows rate cuts and hopefully recession is avoided or is mild. But the risk of a further correction in shares is high.
Seven key charts worth watching are: inflation; inflation expectations; global business conditions PMIs; unemployment and underemployment; earnings revisions; the gap between earnings yields and bond yields; and changes in the $US.
Oliver's Insights - The rise of populism and bigger government - what it means for investors
Key points:
The continuing rise of populism globally – as evident in recent European elections and in the US with Trump and the Republican party – is signalling an ongoing shift away from economic rationalist policies in favour of greater government involvement in economies and less free trade.
While extra investment associated with government industrial policies may provide a short-term boost, the risk is high that the rise of populism and a bigger role for government in economies will contribute to more constrained medium-term investment returns.
Australia is less vulnerable but will still be impacted.
Read full article here.
How to check if you're eligible for low-fee banking
Choosing the right bank account and regularly checking the fees you're paying can help you look after and grow your money.
ASIC’s recent report found that more than 150,000 people on low incomes were in high-fee bank accounts, despite being eligible for a basic low-fee account.
Low-fee accounts are available if you qualify for a concession card issued by the Government. If this applies to you, ask your bank about their low-fee account options.
Advice Evolution Newsletter - July 2024
Stay up-to-date with the tips, news and updates from Advice Evolution’s latest newsletter.
Five common life insurance questions to ask
A comprehensive guide to managing personal finances
Controversial ‘travel tax’ behind border security boost
Oliver's Insights - Australian shares at new record highs - is it sustainable?
It’s often said that shares climb a wall of worry, with good reason. The Australian All Ords price index since 1900 and despite wars, pandemics, and economic calamities, it’s managed to pick itself up and move on to new highs providing solid long term returns for investors.
Key points:
With Australian shares reaching a new record high we have revised up our slightly our expectations for the ASX 200 this year (from 7900 to 8100) reflecting prospects for lower interest rates globally and eventually in Australia boosting the growth outlook next year.
But given risks around valuations, near term growth and geopolitics we anticipate a volatile and more constrained outlook with a high risk of a correction in the August to September period, particularly if investors factor in the more negative economic implications of a Trump victory.
Read full article here.
Oliver's Insights – The five reasons why the $A is likely to rise further - if recession is avoided
The key points are as follows:
After a soft patch since 2021, there is good reason to expect the $A to rise into next year: it’s undervalued; interest rate differentials look likely to shift in favour of Australia; sentiment towards the $A is negative; commodities still look to have entered a new super cycle; and Australia is a long way from the current account deficits of the past.
There is a case for Australian-based investors to remain tilted a bit to hedged global investments but while maintaining a still decent exposure to foreign currency.
The main downside risks for the $A would be if there is a recession or a new Trump trade war.
Oliver's Insights – 2023-24 saw strong investment returns again - but can it continue?
The key points are as follows:
2023-24 provided another year of strong returns for investors as shares were boosted by falling inflation, central banks pivoting towards rate cuts (although is RBA is lagging) and economic conditions were better than feared.
More central banks moving to cut rates, including the RBA early next year, should provide support for investment returns.
However, balanced growth super fund returns over the year ahead are likely to be more constrained at around 6-7% (compared to 9% over the last year) & more volatile with a high risk of a correction in the months ahead as valuations have deteriorated, recession risks remain high and geopolitical risks – including around the French and US elections – are also high.
The key is to adopt a long-term strategy & turn down the noise.
Firstlinks Edition 566 with weekend update - Editor's Note
We all know that our minds and bodies deteriorate as we age. The good news is that our brains are highly malleable. That is, they can change and adapt due to experience. Medina, author of the book called “Brain Rules for Aging Well: 10 Principles for Staying Vital, Happy, and Sharp”, gives an overview of the latest findings in neuroscience, and he writes with humour and good grace, with references to the likes of Captain Kirk and the ‘I Love Lucy’ show.
Oliver's Insights – The 9 most important things I have learned about investing over 40 years
The key point is as follows:
My nine most important lessons from investing over the last 40 years: there is always a cycle; the crowd gets it wrong at extremes; what you pay for an investment matters a lot; it’s hard to get markets right; investment markets don’t learn; compound interest is like magic when applied to investments; it pays to be optimistic; keep it simple; and you need to know yourself to be a good investor.
Read full article
Advice Evolution Newsletter - June 2024 - Investing, Insurance & Superannuation
Optimise your investments and ensure a secure financial future with your Financial Adviser.
Here’s how:
Prioritise Personal Connection
Value Open Communication
Set Clear Expectations
Understand the Value Proposition
Schedule Regular Reviews
Stay Informed and Open-minded
Read full newsletter here.
Oliver's Insights - Not another Eurozone crisis! The rise of the far right in Europe, the French election and implications for investors
Since the European Union parliamentary election results were released just over a week ago, seeing a rise in support for far-right parties and French President Macron’s surprise decision to call parliamentary elections, Eurozone shares have had a fall of 4.2%, French shares fell 6.2% and the gap between the French and German 10 year bond yields has increased by 29 basis points indicating that investors are demanding an increased premium to hold French debt. In fact, the gap between French and German 10 year bond yields is back to levels last seen around the 2017 French presidential election. There has also been some flow on to Italian and Spanish bond yields, the Euro and global and Australian shares, although strength in tech shares continued to support US shares.
Key points:
The success of far-right political parties in EU parliamentary elections & the calling of an election in France have boosted uncertainty by risking a return to the Eurozone crises.
However, centrist parties still dominate in Europe and support for the Euro is strong.
Far right success is consistent with a gradual drift towards bigger government & more protectionist economic policies.
Expect a more constrained and volatile ride from shares.
Read full article here.
Oliver's Insights – Australian home prices were up again in May - but the tension between high rates and the chronic shortage remains
The key points are as follows:
CoreLogic data showed national average home prices rose 0.8% in May, their strongest rise since last October.
The housing market remains remarkably resilient with the housing shortage and still solid jobs market providing support, offsetting the downwards pressure on prices from high interest rates and poor sentiment towards housing.
We expect home prices to rise around 5% this year as the supply shortfall continues to dominate, but the pushing out of rate cuts and the possibility of rate hikes along with the rising trend in unemployment pose a key downside risk.
Home price gains are likely to remain widely divergent though with continued strength likely in Perth, Brisbane and Adelaide for now partly helped by interstate migration but softness in other cities, particularly Melbourne.
Oliver's Insights – The US presidential election - implications for investors and Australia
The key points are as follows:
The run up to the 5th November US election could see increased share market volatility if Trump remains ahead and investors focus on the risks of a new trade war and a hit to the US labour force and to Fed independence under Trump.
In terms of the investment market response to a Trump presidency, much will depend on the relative focus and sequencing of his market friendly policies (lower taxes and less regulation) versus his more market negative policies (to hike tariffs, cut immigration and curtail Fed independence).
Historically, shares have performed better under Democrat than Republican presidents with the best outcome being a Democrat president & Republican House or Senate control.
Australia would be vulnerable to a rapid intensification of trade wars which is looking likely under a Trump presidency.