Since our last update the frenzy surrounding tax time and the start of financial year has begun to taper off and concern regarding the global market seems to have settled for the moment.
The RBA commenced August with a bang and dropped interest rates by 0.25% to 1.5%. The board supported its decision by saying that the prospect for increased inflation and sustainable growth is more likely in the low interest environment. This rate cut was widely anticipated by economists and fund managers, to see why the RBA was expected to cut rates read more here.
Thankfully low interest rates can benefit investors and their financial goals. While rates are at record lows it is an opportune time to see if you are paying too much, whether it be your mortgage, credit card or car loan it is worth seeing what your lender or broker can do for you. This article explains what resources are available to you to see if you are making the most of the low interest rates.
Many of us spend this time of year looking for group certificates, holding statements, deductible expenses and much more. However, there is one thing that many of us have forgotten â lost super accounts and the deadline for this is December 31st. The ATO announced that $11.7 billion is sitting in lost super accounts and the Government will be able to claim all lost super accounts with a balance of up to $6,000. Many of these lost accounts have insurance policies which are a safety net in times of crisis. Any account that is claimed will be closed and any insurance held within that account will be cancelled â so make sure you are not at risk. Read more about what the head of the Association of Superannuation Funds of Australia has to say here, and to see if you have any lost super visit the ATOâs Superseeker website
You may remember from our July edition we mentioned the proposed Centrelink Age Pension changes. A study from the University of Melbourne has indicated that the number of Australian couples who can expect to achieve a comfortable level of retirement income will reduce as a result of these changes. The researchers highlight that many investors may be feeling overconfident given the performance of their investments over the past years but have not addressed how the current market and incoming changes will impact their retirement goals, read more here. It is important to take control of your future so that legislative impacts can be lessened going forward.
This monthâs newsletter revolves around legislative changes and how research and preparation can help you avoid any nasty surprises. There is a real possibility that the majority of individuals either wonât hear about any of these changes or realise how significant the impact can be. Statistics show that just over 10% of Australians seek financial advice. If you, or someone you know, could benefit from these articles or an obligation-free meeting with us please contact us or forward this newsletter to them.
Gary, Garry, & Maurice
