Where to from here……

While there is so much uncertainty in the world, largely due to events in the US and President Trump seemingly taking a new stance on major geo-political issues every day, there are some things you can rely on.

That regardless of which side of politics is in power, the overwhelming focus of either side is simply to be returned to government, and they will do whatever they think it will take to achieve that goal.

So last week, instead of going to a Federal election, the Government decided to delay calling an election in favour of handing down a federal budget that did nothing to address any of the significant economic issues facing this country.

It ignored helping small businesses by failing to extend the instant write off provisions, that will run out on July 1, or boost incentives for employers to take on new trainees or apprentices or anything to stem the number of small businesses going bust.

It did nothing to redress the crippling cost of energy and the massive impact this is having on local manufacturers at a time when Australia needs factories more than ever and it did nothing to address Australia’s enormous structural tax problems.

The only significant announcement, which will cost the budget’s bottom line some $17 billion, is a meagre tax cut that does little more than slightly reduce the cripplingly effect of bracket creep. It might though encourage working people to once again vote for this Government.

Why bother handing down a budget so lacking in substance, when the only significant step appears targeted solely at getting people to vote for this Government?

Meanwhile, let me focus on something more positive. Uncertain times like these bring opportunities. They always have and they always will.

So, every time you hear the share market taking a step down this year, and with all the uncertainty overseas this will happen quite often, you should immediately think, “Do I have any spare funds I can invest in the share market?”

These downturns are exactly the moment when everyone should take advantage of  these low prices to buy good quality companies on the cheap. Its such a simple message but so many people get it wrong.

When the market falls, my phone always lights up with clients asking if they should sell their shares, when in actual fact this is the exact time when you should be buying and remember, you can put up to $110,000 of after-tax money into super each year to do just this.

Finally, April of course is financial literacy month and so, as I do in most years, if you contact me and mention this newsletter, I will happily send you a copy of my book, “The No-Regrets Guide to Retirement”, free of charge.

If you know of anyone who is unsure how to arrange their finances as they move into retirement, please encourage them to contact me. It could be a lifesaving, if not retirement saving, moment for them.

Patricia Howard

0427 429 817

Patricia@patriciahoward.com.au