The Latest News and Views from Ascent Wealth Management
Here's our monthly check in. Hopefully there are some useful tips for you.
As always, we check in on investment markets. At the time of writing we are seeing an escalation of trade tensions between the US and China. This has introduced a heightened amount of volatility in the market; this seems to be exacerbated each time there's a tweet from the US President or a proclamation from China. Naturally both countries are impactful of our financial sitaution here in Australia. On our account, with the federal election now having been run and won by the coalition, hopefully there will be increasing stability in the Aussie factors that influence our market. Investors are now on a more positive footing knowing there will now not be changes to franking credit refunds or Capital Gains Tax; we have already seen a positive market reaction to the re election of the Morrison government.
We still have not seen the anticipated increase in economic activity we would have expected with the improving economy. The next article examines the impact of making further cuts to the cash rate. As with most things financial, such cuts are a double edged sword. Investors suffer from lower interest on their savings, while business and home borrowers benefit from lower borrowing rates. There is an argument that we should keep "a bit in the tank", but with the cash rate currently at 1.5% and exected cuts of another 0.5% between now and Christmas, there won't be much room to move if things get worse.
With the end of the financial year in sight, many people are looking for smart strategies to implement. My next article explores the benefit of making the most of your super, which is still a really good way to provide for your retirement income needs. If you can take advantage of some tax benefits now, there will be more money there fore later.
The beginning of the new financial year will bring with it changed Centrelink assets and income test asssessment, for a new type of lifetime income product- the Pooled Lifetime Income Stream. It is possible for people, particularly in the early stages of their retirement to have more of their assets and income disregarded in calculation of their benefits if they use one of these new products. Naturally there are always tradeoffs to consider- these type of annuities have more restrictions on accessing capital when started; nonetheless they may be worth considering as part of youre retirement planning.
Starting the day with some warm water with a squeeze of lemon, just sounds health. My next article explores the health benefits of this very basic act of self- care.
Lastly, I now have only 3 weeks to go until my bike ride to raise funds for the Multiple Sclerosis Society of QLD. Thanks so much for those that have donated so far- if there's anyone who'd like to help us out, here's the link- your donation would be gratefully received !
That's about it for another month, please don't hesitate in contacting us if you need any further information on the above information. As always, please feel free to share the articles with those that might benefit.
Steve and Katrina