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Welcome to the August issue of Financial Insights and Updates.
This month, we’ve included an economic and market update from Vanguard which covers the latest forecasts for investment returns and a region-by-region economic outlook. With the RBA keeping the cash rate on hold at 4.10% for a second month, the big four banks have cast the following predictions for the next few years of cash rate movements:
- CBA: Peak of 4.10% in June 2023, then dropping to 3.10% by the end of 2024
- Westpac: Peak of 4.10% in June 2023, then dropping to 2.60% by the end of 2025
- NAB: Peak of 4.35% by November 2023, then dropping to 3.10% by early 2025
- ANZ: Peak of 4.10% in June 2023, then dropping to 3.85% by December 2024.
Our article ‘Why you may never retire’ goes into the challenge that millennials face when it comes to retirement planning in the face of rising costs of living, whilst grappling with large debts and limited financial resources. The other article this month worth paying attention to is ‘More Australians are unlocking home equity to fund retirement’, which looks at the growing number of Australians who are downsizing to free up cash for use during retirement. As always, feel free to forward any articles to friends and/or family that you feel may benefit from the information. In signing off, please remember that we are always available to answer any questions or queries you may have and to come speak with us before making any major investment decisions. Warm regards,
Alexander Kitchin, Stuart Engel, and Courtney Pearch
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Feature Article:
[/vc_column_text][vc_custom_heading text=”Vanguard Economic & Market Update” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_single_image image=”6725″ img_size=”large” alignment=”center” style=”vc_box_border”][vc_column_text]
The neutral rate of interest in the United States may be higher than many people think—including Federal Reserve policymakers. That is among the findings of new Vanguard research that suggests current monetary policy may be less restrictive than generally assumed. Demographics began to push the neutral rate higher before the COVID-19 pandemic, the research finds, and fiscal deficits have accelerated the rise since.
[/vc_column_text][vc_btn title=”Click here to read the article” style=”custom” custom_background=”#ae9257″ custom_text=”#ffffff” align=”center” link=”url:https%3A%2F%2Fwealthconnexion.us3.list-manage.com%2Ftrack%2Fclick%3Fu%3Da3e36438b5af3c2f99abd4701%26id%3Dd41f4de9bb%26e%3D06fc064d24|target:_blank”][vc_separator border_width=”3″][vc_single_image image=”6736″ img_size=”large” alignment=”center” style=”vc_box_border”][vc_custom_heading text=”Unlocking the Potential of Aged Pension and Superannuation Benefits” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes” link=”url:https%3A%2F%2Fwealthconnexion.us3.list-manage.com%2Ftrack%2Fclick%3Fu%3Da3e36438b5af3c2f99abd4701%26id%3Dc38fcaf1fd%26e%3D06fc064d24|target:_blank”][vc_column_text]
The Australian Aged Pension scheme provides a wonderful safety net for those with limited assets in retirement, although many remain confused by how their age pension entitlements differ from so called superannuation income streams.
[/vc_column_text][vc_btn title=”Read more” style=”custom” custom_background=”#ae9257″ custom_text=”#ffffff” align=”center” link=”url:https%3A%2F%2Fwealthconnexion.us3.list-manage.com%2Ftrack%2Fclick%3Fu%3Da3e36438b5af3c2f99abd4701%26id%3Dc38fcaf1fd%26e%3D06fc064d24|target:_blank”][vc_separator border_width=”3″][vc_single_image image=”6739″ img_size=”large” alignment=”center”][vc_custom_heading text=”Why you may never retire” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]
Millennials in Australia are facing an unprecedented challenge when it comes to planning for retirement. Many will never fully retire, as they will be unable to accumulate the necessary funds to support themselves for an extended period of time.
[/vc_column_text][vc_btn title=”Read more” style=”custom” custom_background=”#ae9257″ custom_text=”#ffffff” align=”center” link=”url:https%3A%2F%2Fwealthconnexion.us3.list-manage.com%2Ftrack%2Fclick%3Fu%3Da3e36438b5af3c2f99abd4701%26id%3D0833a1371b%26e%3D06fc064d24|target:_blank”][vc_separator border_width=”3″][vc_single_image image=”6742″ img_size=”large”][vc_custom_heading text=”New financial year means you may be eligible for Commonwealth Seniors Health Card” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]
The new financial year has begun, which means you might now qualify for a Commonwealth Seniors Health Card (CSHC).
[/vc_column_text][vc_btn title=”Read more” style=”custom” custom_background=”#ae9257″ custom_text=”#ffffff” align=”center” link=”url:https%3A%2F%2Fwealthconnexion.us3.list-manage.com%2Ftrack%2Fclick%3Fu%3Da3e36438b5af3c2f99abd4701%26id%3D11a9aad4f5%26e%3D06fc064d24|target:_blank”][vc_separator border_width=”3″][vc_single_image image=”6743″ img_size=”large” alignment=”center”][vc_custom_heading text=”A great way to help your kids – and you” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]
We are always hearing about how important it is to insure our own lives and income, but what about insuring our children’s?
[/vc_column_text][vc_btn title=”Read more” style=”custom” custom_background=”#ae9257″ custom_text=”#ffffff” align=”center” link=”url:https%3A%2F%2Fwealthconnexion.us3.list-manage.com%2Ftrack%2Fclick%3Fu%3Da3e36438b5af3c2f99abd4701%26id%3D96dfbe3cb7%26e%3D06fc064d24|target:_blank”][vc_separator border_width=”3″][vc_single_image image=”6745″ img_size=”large” alignment=”center”][vc_custom_heading text=”More Australians are unlocking home equity to fund retirement” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]
A growing number of Australians are downsizing their home to fund their retirement. Here’s the latest data from the ATO on use of the downsizer measure.
[/vc_column_text][vc_btn title=”Read more” style=”custom” custom_background=”#ae9257″ custom_text=”#ffffff” align=”center” link=”url:https%3A%2F%2Fwealthconnexion.us3.list-manage.com%2Ftrack%2Fclick%3Fu%3Da3e36438b5af3c2f99abd4701%26id%3Df52982a0a5%26e%3D06fc064d24|target:_blank”][vc_separator border_width=”3″][vc_single_image image=”6746″ img_size=”large” alignment=”center”][vc_custom_heading text=”Be different today so you can be different tomorrow” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]
Every generation thinks life will be different – and of course, each one is right – but when it comes to planning for the future, while we’re young we have a habit of thinking there is still plenty of time.
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Disclaimer
This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. We strongly suggest that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission. Past performance is not a reliable indicator of future performance. Please refer to the Product Disclosure Statement (PDS) before investing in any products mentioned in this communication. This information is current as at the date of publish.
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