With the Reserve Bank of Australia (RBA) cutting the official cash rate to just 1.00% on 2 July and further interest rate cuts forecast by financial markets, retirees and investors face increased challenges in deriving enough income from their investments to meet their needs. This low-interest, lower-return environment may tempt some income-focused investors to abandon carefully diversified portfolios in the pursuit of higher income. [Read more…]
Given the attention on the size of Australia’s super savings, it may surprise you that personal investors in total have almost as much outside super as inside super.
One question we are advising clients on more frequently these days revolves around them wanting to help their children financially, but at the same time protect that money to ensure it stays in the family. Some interesting figures from 2017 pointed to family members, essentially the Bank of Mum and Dad, being the fifth largest source of lending in Australia behind the big four banks, at around $65 billion.
There’s a cliché that money can’t buy happiness. Is that true? Thanks to research from Nobel Prize-winning economist Daniel Kahneman and Angus Deaton, authors of the 2010 study “High Income Improves Evaluation of Life But Not Emotional Well-Being,” we can now answer the question: It does – to a point. Kahneman and Deaton found that happiness tends to increase along with income up to about $A100,000 a year.
With 30th June fast approaching, now is the time to review your superannuation and pension strategy to ensure you maximise your family’s financial position whilst complying with the numerous rules and regulation.