The No-Regrets Newsletter
Welcome to the August 2022 edition of the No-Regrets newsletter. Simply click on the view-online button above to read the following articles in full or visit https://patricia-howard-financial-planning.ghost.io/
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Beyond the noise
Given the news and events of the past week, it is easy to think the Australian economy is suddenly being dragged down the gurgler by a deteriorating world economy and one-off events such as the war in Ukraine.
So, let’s just step back and turn down the dial on the noise that often passes as economic commentary. While there is the potential for Australia to fall into recession, it will be a recession with no teeth, and it will be short lived. Here’s why.
So, what is inflation?
Inflation is still a concern because it raises the spectre of prices and interest rates joining an ever upward spiral and with that, bringing real pressure on every day cost of living or just how much you can buy with your income each week.
This is particularly the case for low income and for those living off the relatively fixed returns that can be achieved from investments. So here are three strategies to help you live through a period of high inflation.
Surviving high inflation
It seems the only economic news that matters in Australia at the moment is the rate of inflation, which has now reached 6.1 per cent for the past financial year – its highest rate in more than two decades. So, what is inflation and just how bad is it?
The ANZ Rights Issue: Should you?
The ANZ has recently announced it intends to buy the Queensland banking arm of Suncorp for some $4.9 billion and in doing so, it is hoping to raise $3.5 billion via a renounceable entitlement offer from existing shareholders. Sounds complex but it’s not. Should you take it up?
Just how much money do the big funds make?
Widespread losses of some $3.2 trillion across the equity and bond markets in Australia during June, meant most Australian super funds reported a small loss for the year according to Super Ratings.
In fact, looking at its league table of funds providing a balanced option for superannuation savings, which is the default option for some 14 million Australians, 95per cent of Australian funds reported a loss.
However, in looking at these types of tables, it is important to compare apples with apples, which in the case of superfunds is not easy to do.
Should I sell my investment property?
This is a big question that many people face as they move into retirement and as much as you might want to think otherwise the answer is always yes. And I mean always.