Welcome to the December 2024 edition of the Advice Evolution and Fintegrity Newsletter. This month, we explore key insights on managing rising business insurance costs, potential tax changes for large superannuation withdrawals, and strategies for effective retirement planning. Stay informed on the latest trends and developments to help secure your financial future.
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Spend Smarter This Christmas: Avoid the Holiday Budget Hangover
The festive season is a time for celebration, but it can also bring financial stress if you’re not careful with your spending. According to new research from Moneysmart, while 74% of people set a Christmas budget, only 29% stick to it. Many are turning to savings, credit cards, and Buy Now Pay Later (BNPL) services to cover their holiday expenses, which can lead to a post-Christmas financial hangover. If this sounds all too familiar, don’t worry—we’ve got you covered. With these simple tips and strategies, you can enjoy the holidays without the financial regret.
Set a realistic budget
Before you start shopping, decide how much you can afford to spend. Break it down into categories like gifts, food, decorations, travel and entertainment. Track your spending to stay on target.
Be aware of using credit
Pay with cash or debit card and avoid using things such as credit cards and or buy now pay later that you can’t afford. If you do use credit products, stick to what you can afford to repay in full. Consider balance transfers to save on interest but be mindful of fees and repayment deadlines.
Monitor your accounts regularly
Keep an eye on your credit card and bank statements during the holiday season. Report any suspicious transactions to your bank immediately.
Be aware of bad deals or scams
Watch for red flags like “too good to be true” prices, limited-time offers pressuring you to act quickly, or poorly rated or unknown online retailers. Stick to reputable stores, and research sellers before buying.
Get help if you need it
If you’ve gone over budget, take proactive steps to regain control. Create a repayment plan for any debt incurred, prioritising paying off high-interest balances first.
Oliver's Insights - Australia's falling living standards - what's driving it and how to it
Falling real wages and a surge in tax and interest payments have led to a slump in living standards.
But a broader driver of the malaise in living standards has been a slump in productivity growth from over 2% pa in the 1990s to near zero since 2016.
Key policies to boost productivity growth include: tax reform; a cap on public spending as a share of the economy, deregulation; greater incentives to invest; and competition reforms.
Oliver's Insights - Goldilocks stayed for 2024, but what's in store for investors in 2025
The key points are:
The main themes for 2024 were: better than feared growth; global divergence; more disinflation; falling interest rates but with Australia lagging; and more geopolitical threats but not as bad as feared. As in 2023, returns were strong.
2025 is likely to see positive returns, but after the surprising calm of 2024, it’s likely to be far more volatile (expect a 15% or so correction along the way) and more constrained.
Expect the RBA cash rate to fall to 3.6%, the ASX 200 to rise to 8800 and balanced super funds to return around 6%.
Australian home prices will likely see further softness ahead of rate cuts providing a boost in the second half of 2025.
Key things to keep an eye on are: interest rates; recession risk; a potential trade war; and the Australian consumer.
Advice Evolution & Fintegrity Monthly News Update
Welcome to this month’s insights. In these articles, we explore tips and advice to help you tackle these important life stages with confidence and clarity. Read on to unlock valuable guidance that can help you move forward.
Navigating small business success: top questions answered with tips
Running a small business requires dedication, resilience, and adaptability. Along the journey, you'll encounter many questions and challenges. To assist, we've addressed five common questions from small business owners and provided actionable tips to help guide you.
Taking a break during the festive season
Numerous countdowns for Christmas and the New Year are everywhere, yet the festive season often arrives unexpectedly. This can lead to feelings of panic and being overwhelmed by the holiday rush. Such emotions can hinder what should be a time for introspection and rest before the new year begins.
Some helpful tips to save money this Christmas
Christmas brings warmth and cheer, but many people are feeling financially strained this year. As the holiday approaches, the need to buy gifts for friends and family is weighed against the current economic climate, leaving many with less money to spend on the gifts they usually give.
Mandatory cybersecurity standards under new laws
New laws in Australia, passed by the Albanese government, will enforce cybersecurity standards for smart devices and require some businesses to report ransom payments. This legislation establishes Australia's first standalone Cyber Security Act.
Investment markets and key developments – Weekly market update 22-11-2024
Despite geopolitical risks, high share valuations, and a declining equity risk premium, positive factors are supporting share markets. These include a "Goldilocks" economic environment, central bank rate cuts, strong earnings growth, and expectations of increased US fiscal spending. US stocks rose 1.7% last week, bringing their year-to-date gain to 25%. Australia's market increased 1.3%, reaching a record high but underperforming the US, with a 10% gain year-to-date. Eurozone and Japanese stocks fell. US 10-year bond yields held steady at 4.4%, while the US dollar rose nearly 7% since the election, pressuring the Australian dollar. Bitcoin is nearing $100K, fueled by expectations of a crypto-friendly US administration.
Advice Evolution and Fintegrity - November 2024 Newsletter
Stay up-to-date with the tips, news and updates from Advice Evolution and Fintegrity’s latest newsletter.
The benefits of financial planning and personalised strategies
Protect your small business: recognise and prevent common scams
How insurance can help you
Read the latest newsletter here
Moneysmart tips: A monthly e-newsletter offering free tools, tips and guidance
Avoid scams as you shop the sales
Online sales offer great deals and convenience, but they also come with the risk of scams. This article provides tips on how to identify potential scams and shop safely during online sales.
Interest-free doesn't mean cost-free
Interest-free deals allow you to pay for items over time, but failing to repay within the interest-free period can result in high charges.
Pay off and interest-free deal on time
Getting a pet this Christmas?
Before getting a pet, ensure they fit your budget and lifestyle, considering both the initial purchase and ongoing costs like food, grooming, vet care, and supplies.
How much it costs to own a dog or a cat
Tips for managing buy now pay later
Buy now, pay later services can be helpful for managing cash flow, but if not used cautiously, they can lead to financial trouble.
Trump 2.0 - why investors should expect a somewhat rougher ride, but it may not be as bad as feared
Key points:
The economic and financial environment today is more challenging than when Trump first took over in 2017: inflation is a bit higher, the budget deficit is worse, bond yields are higher and shares are more expensive.
He also faces constraints from: rising bond yields; not wanting a sharp fall in shares; a razor thin House majority; and a political mandate to get the “cost of living” down.
This could mean his more populist policies may ultimately be contained resulting in a better outlook for shares than many fear, albeit it will likely still be rough along the way.
3 ways advisers are making Aussies feel better
It's not just about numbers—it's about peace of mind, clarity, and a roadmap to achieving your financial goals. Through the latest research, we've uncovered how financial advisers can help reduce stress and guide you toward a more secure financial future. Explore AMP’s findings and learn how expert advice can make a meaningful difference in your financial life.
Read full article
Russell Investments: Expert Insights and Commentary from Our Team
Q3 2024 Active Management Review: Market leadership reverses
See how active equity managers performed by region, sector, and style during the third quarter of the year.
By Gabriel Sauma
Oliver's Insights - Donald Trump elected President of the US (again)
Donald Trump elected President of the US (again) - implications for investors and Australia
The key points are:
The return of Donald Trump to the US presidency brings the prospect of more US tax cuts and deregulation, but also more tariff hikes and trade wars and policy uncertainty.
His win was not the surprise it was in 2016, and markets have moved to adjust – but it means higher US bond yields, a higher $US & a knee jerk rise in shares. Shares could be threatened though by the higher bond yields and tariffs.
Australia is vulnerable to an intensification of trade wars.
While the US election is important, investors should bear in mind that many other things influence investment markets
Oliver's Insights - Why value matters in investing
Why value matters in investing - and what are valuations telling us now?
The key points are:
Starting point valuations – like yields and price to earnings ratios – are key drivers of medium-term investment returns.
Valuation starting points for term deposits and bonds have improved.
For shares they suggest constrained return potential, particularly from US shares thanks to rich tech sector valuations - but Australian, European and Chinese shares are a bit more attractive from a valuation perspective.
It's worth noting though that worries about the US share market’s dependence on tech stocks are not new and they have kept going for longer than many thought so trying to time their performance is very hard.
Advice Evolution Monthly News Update
Welcome to this month’s insights. In these articles, we explore tips and advice to help you tackle these important life stages with confidence and clarity. Read on to unlock valuable guidance that can help you move forward.
A path to independence: guiding adult children to contribute at home
Many parents face the question of when their adult children living at home should start paying board and contributing to household expenses and chores as they transition into adulthood.
The question of when and how much to charge, as well as the balance of responsibilities, is influenced by various factors, including family values, financial stability, and the unique dynamics of each household.
Read more
Unlocking your future: the power of choosing the right subjects for career success
Choosing the right subjects in school or university can significantly shape your future career pathways.
Read more
Navigating the law when dealing with custody dispute
The longstanding myth that fathers have slim chances of securing primary custody is being progressively dismantled.
Read more
Oliver's Insights - Nine bad habits of ineffective investors: common mistakes investors make
The key points are:
Many of the mistakes investors make are based on common sense rules of thumb that turn out to be wrong.
As a result, it’s often wise for investors to turn common sense logic on its head.
The easiest way to avoid many of these mistakes is to have a long-term investment plan that aligns your financial goals with your risk tolerance.
Advice Evolution and Fintegrity Newsletter - October 2024
Stay up-to-date with the tips, news and updates from Advice Evolution and Fintegrity’s latest newsletter.
Understanding why we need income protection insurance
Super and planning for retirement
Urgent need: aged care providers’ reality
Read newsletter here.
Oliver's Insights - China's big stimulus - will it work? And what does it mean for Australia?
After a run of disappointing economic data, collapsing property prices and Chinese shares falling to their lowest since 2019 giving rise to increasing concerns about the outlook, China appears to be moving towards aggressive policy stimulus. But what’s driving the change? Will it work? And what does it mean for investors and Australia?
Key points:
A move towards more aggressive fiscal policy stimulus and property support measures should help drive a mild cyclical upswing in China’s economy.
However, it’s doubtful it will be enough to reverse longer term structural problems facing China – around excess saving, demographics and growing state control.
The Australian economy is less sensitive to China than it used to be, but a stimulus driven cyclical boost to the Chinese economy is still positive for the Australian economy, share market and the $A.
Read full article here.
Top 10 legal concerns: why seeking professional legal advice is essential
When navigating personal or business matters, legal questions often arise with significant implications.
Seeking proper legal advice ensures that you avoid costly mistakes and operate within the confines of the law.
Read full article
Develop an investment plan + Check before you invest + Have you got investing FOMO
Planning is the key to successful investing. Creating a plan will help you find investments that fit your investing time frame and risk tolerance, to help you reach your financial goals sooner.
Check the facts before you invest
Before you part with your money, check: Are they licensed? Can I explain how it works? Are there signs it could be a scam? What can I do if something goes wrong? Learn how.
Have you got investing FOMO?
If you're hearing a lot of buzz around a type of investment and don't want to miss out, STOP! It might be a hype-driven investment.
Oliver's Insights – Harris versus Trump - implications for investors and Australia
The key points are:
The US election has significant potential to impact markets. A Harris victory would mean more of the same but a Trump victory could lead to uncertainty particularly around trade.
Australia would be vulnerable to a rapid intensification of trade wars which is looking likely under a Trump presidency.
Historically, shares have performed better under Democrat than Republican presidents with the best outcome being a Democrat president & Republican House and/or Senate.
Moneysmart tips: Simple steps to manage your super
Your super isn't always top of mind when you're focused on juggling work, family life, and the many other responsibilities of adulting. But taking an active interest in your super now, can set you up for the lifestyle you want in the future.
New research from Moneysmart has revealed the concerning trend that nearly half (48%) of surveyed millennials admit they are not knowledgeable about maximising their super. That's why Moneysmart's new campaign aims to drive awareness about why focusing on superannuation earlier is good for your long-term financial health.
When it comes to your super, extra contributions are just one option for growing your future wealth. Check out these other ways to secure a better financial future.
Simple steps to manage your super
Check you're being paid the right amount of super
The super guarantee (SG) is now 11.5% of your income. To see how much your employer is paying you, look at your payslip or call your super fund.
How to calculate your super payments
Make sure your super fund can contact you
Your fund will use your email address and mobile number to send you important updates, including your annual statement. Reading your annual statement is a good way to stay connected with your super.
What to check in your annual statement
Check your insurance cover
Most super funds provide life cover and TPD insurance for their members. Make sure you're only paying for the insurance you need.
Tips for choosing insurance through super
Consider combining your super
Moving your super into one account makes your super easier to manage and saves on fees. You can transfer your super for free in a few easy steps.