Investors with long memories – or a good education – will recall the bad old days when inflation was the economic bogeyman. It broke Germany’s Weimar Republic in the 1930s and nearly cratered America’s economy in the 1970s. Fortunately, inflation has been a non-issue in Western economies for decades. But is that about to change? … Read more
Investors remained focused on rising inflation and the possibility of policy settings being tightened worldwide. Bond yields continued to rise – particularly in Australia – as investors brought forward their expectations for interest rate hikes. This hampered returns from fixed income markets. Equity markets performed much more strongly, aided by the release of pleasing corporate … Read more
You’ve worked tirelessly to own the home of your dreams. But if you suffered from an injury or illness that prevents you from working, would you be able to cover your mortgage repayments? A government report by the Australian Institute of Health and Welfare found that accidents were one of the leading causes of death … Read more
Generally, a property, including a taxpayer’s main residence, ie their family home, is considered to be a Capital Gains Tax (CGT) asset. When CGT assets are sold, taxpayers may be liable to pay tax on all, or part, of the capital gain. However, tax law provides an exemption for a dwelling that is the taxpayer’s … Read more
There’s no denying that being proactive with your super may be key to increasing your retirement savings. As an investment vehicle, super can offer significant benefits thanks to the magic of compounding interest. It also provides one of the best tax structures available. Why super offers much promise for retirement saving Adding more into super … Read more
One of the quirks of Australian society, including its taxation system, is that it puts home ownership at the centre of physical, emotional and financial well-being. There’s an aura about owning your own home. It’s why we talk about it at BBQs, go to open-houses when we have no intention of buying, and are amazed … Read more
If you’re one of the many Australians financially impacted by COVID-19, who have deferred $218 billion worth of payments this year – fear not. Your credit score is unlikely to be affected by payment deferrals or mortgage holidays due to the current state of the world. While that’s good news, it’s still important to maintain … Read more
Downsizing the family home is often part of the longer-term financial plans for many older Australians. But did you know that you could consider investing the proceeds of the sale of your family home to your super – depending on your age and circumstances – as a downsizer contribution? What is a downsizer contribution? If … Read more
In the right hands, a self-managed superannuation fund (SMSF) can be a beneficial way to build wealth for retirement. Whilst they are not for everyone, it is important that when thinking of starting an SMSF, individuals need to understand the benefits and responsibilities they take on by having an SMSF. What is an SMSF? An … Read more
Australians will need to rebuild their superannuation and retirement savings, after withdrawing more than $36 billion in early super release payments in 2020, according to Colonial First State’s Retirement Realities Series. The research found that the largest number of early super payments were made to Australians under age 40 with Australians under 30 receiving nearly … Read more