Factor Investing explained
Global markets are made up of dozens of asset classes and millions of individual securities, making it challenging to understand what really matters for your portfolio. But there are a few important drivers that can …
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Economic update
October was another difficult month for financial markets, partly reflecting an acceptance among investors that interest rates are likely to remain high for longer than was previously anticipated. Geopolitical risk ramped up too, following conflict …
Term deposit vs savings account: what’s the difference?
Term deposits offer certainty and savings accounts offer flexibility. Here are some other common features and benefits of each. Putting your money into a savings account, or in the alternative, a term deposit, are two …
Your guide to gearing
There are a number of considerations when it comes to gearing, the investment assets you may choose to gear and the way you structure your debt. A gearing strategy can be set at three levels: …
Understanding your investment options
Investing is full of jargon and technical terms that can make getting started or managing your investments seem intimidating. Here are some of the key terms to help you better understand the different options available …
Some recent questions on Australian inflation Key points The Australian inflation rate peaked in the December quarter but has been slower to decline than some global peers. While interest rate rises are helping to reduce …
How to monitor carried forward concessional contributions
You may be eligible to make concessional contributions that are greater than the annual cap if you haven’t fully used your concessional cap in an earlier year. This could help you to save even more …
How to help grow your money through compound interest
Earning interest on interest: learn how the power of compounding can send your savings rocketing. Key takeaways Compound interest enables you to earn interest on interest which is accumulated over time. The effect of compound …
Granny flat arrangements within the context of the gifting rules
There are special rules for granny flat arrangements that may prevent the deprivation rules from applying. However they must satisfy a range of requirements. Retirees wanting to downsize their home may consider the option of …
Economic update
July was a relatively uneventful month in financial markets and volatility remained low. Generally speaking, risk assets continued to perform well despite a sharp increase in the oil price. In fact July was the best …
Are you getting the Age Pension you’re entitled to?
If you receive the Age Pension, recent changes to means testing for retirees could put more money in your pocket. These changes impact the assessment of certain lifetime income streams that began on or after …
2022-23 saw investment returns rebound – but is it sustainable?
Key points – After the rough ride of 2021-22, 2022-23 turned out to be a good one for investors as shares rebounded thanks to falling inflation and hopes rates are near the top. – Shares …
Where is the recession
Key points A progress report on inflation: Inflation appears to have peaked, led by improvements in core goods prices and rate sensitive sectors like housing. The policy focus has shifted to labour market normalisation where …
Economic update May 2023 Investment markets were relatively calm in April, following a period of heightened volatility in March when banking failures in the US and Europe had shaken confidence. Most major share markets closed …
What to do when your fixed rate home loan term is ending
Many Australians were fortunate to lock in record low interest rates but this may be drawing to an end. A large portion of mortgages will be approaching the end of their fixed term, leaving many …
Credit risk in focus amid bank tumult
Key views Tightening financial conditions and a return of credit risk have reinforced our risk-off stance. The Credit Suisse deal highlights policymaker actions are negative for bank shareholders and some bondholders. We stay underweight most …
The opportunities in energy transition
After the wild ride experienced by investors in 2022, Perpetual’s Deputy Head of Equities, Anthony Aboud is seeing opportunities in high quality companies which have traditionally been classified as growth stocks. He also notes the …
Five charts on investing to keep in mind in rough times
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 …
Expanding SMSFs for the expanding family?
It has finally happened. Recommended by the Cooper Super System review in 2010, put forward in the Federal Budget four years ago by then Treasurer Scott Morrison and finally passed on 17 June 2021, the …
What causes market movements?
When the news is filled with headlines about market movements, it’s normal to feel a bit anxious. Here are three things to keep in mind the next time share markets aren’t behaving the way you’d …
The 2023-24 Budget
Return to surplus with fastest improvement since end of WW2, cost of living help but structural deficits remain (albeit smaller). Key points The budget this year is expected to return to a surplus of $4b …
US banks, inflation, interest rates and recession risk – what it means for investors
Key points US regional bank failures have added to uncertainty about the investment outlook flowing from inflation and rate hikes. Specific issues with the failed banks and action to protect depositors may limit broader problems …
What are asset portfolios?
Building your wealth for the long term starts with a sound investment strategy; but with so many options outside your superannuation fund, from bonds to managed funds, where should you begin? Understand your risk profile …
Buying an investment property
Is an investment property the right choice for you in retirement? What you need to know about buying an investment property Buying a rental property is a very popular investment in Australia. For many investors, …
Why investing for retirement is different
When you’re still employed and earning a salary, there’s money coming in you can rely on. In retirement, in the absence of a regular salary you’ll need to find a new way to secure enough …
Ways to expand SMSF investment horizons
The mix of investments that is right for an SMSF will depend on very personal factors, including SMSF members’ age, lifestyle, attitude to risk and personal goals. And it’s not a case of set and …
Investing in investment bonds
Investment bonds are long term investments that may offer tax efficiency to investors on a high marginal tax rate and those investing for children or grandchildren. Unlike traditional investment products, such as managed funds, bonds …
Five long term global trends and implications for markets
This article looks at some longer term structural trends in the economy and their impact on economic growth and investments. A decline in routine based jobs Fear of technology replacing jobs has been around for …
Economic update February 2023
Risk assets performed strongly in January, following further indications that inflation may have peaked in key regions. Global economic growth forecasts were lowered by both the World Bank and the IMF, but investors appeared to …
Review of 2022, outlook for 2023
Key points 2022 was dominated by high inflation, rising interest rates, war in Ukraine and recession fears. This hit bonds and shares hard, driving losses for balanced growth super funds. 2023 is likely to remain …