Econosights: The impact of economic shocks on inflation

  Econosights: The impact of economic shocks on inflation Key points COVID-19 has caused a big change in consumer spending patterns. In developed countries, demand for goods has generally gone up but services demand has collapsed. Changes in demand along with some supply constraints have caused an increase in goods prices while prices for services have been weaker. Consumer inflation data uses consumer spending baskets from prior years to construct quarterly price changes. However, these …

Create an 8-week Christmas savings plan

  Create an 8-week Christmas savings plan The sooner you start saving for Christmas, the better. But you can do it in just eight weeks – even if you have a tight budget in the lead-up to this year’s festive season. Here’s how to develop a plan to save money and reach your holiday goals. Fairy lights twinkling, seafood on the barbie, gifts being wrapped and Michael Bublé crooning in the background – Christmas can …

Financial wellness in 2020 – how does yours compare?

Financial wellness in 2020 – how does yours compare? Financial wellness is how you feel about your money. It can affect your overall wellbeing and other areas of your life, such as work and family. So, while money isn’t the be-all and end-all, how you feel about it is pretty important. Since 2014, AMP has been commissioning research1 into the financial wellbeing of Australians and has developed the Financial Wellness Index. It measures a person’s satisfaction …

September job figures make the case for further monetary easing

September job figures make the case for further monetary easing After a stronger-than-expected performance in August, September employment numbers exceeded expectations for the second month in a row, falling by 29,500 jobs as opposed to consensus estimates of a 40,000 drop. Nonetheless, this month’s decline in employment figures after three months of growth suggests we’re now on track to see slow growth in employment and a rising participation rate. We expect the headline unemployment rate …

Majority of working Aussies to benefit from personal income tax cuts

Majority of working Aussies to benefit from personal income tax cuts Tax cuts proposed in the recent Federal Budget were passed in parliament on Friday 9 October, and you might see some of the benefits before Christmas. The government has brought forward tax cuts originally planned for 1 July 2022 and backdated them to 1 July 2020. Plus, low and middle-income earners are still able to benefit from existing tax offsets. Has my marginal tax …

How can I make my retirement dream a reality?

How can I make my retirement dream a reality? What does your retirement dream look like – spending time on your hobbies? Seeing the grandkids more often? Maybe pursuing a passion, or travelling? According to AMP financial adviser John Dani, the people who are most content and happy in retirement all have this one thing in common – a well-defined purpose for their golden years. Mr Dani’s worked with hundreds of people over the last …

Market Update 23 October 2020

Market Update 23 October 2020   Investment markets and key developments over the past week Global share markets were mixed over the last week being buffeted again by waxing and waning stimulus prospects in the US and ever rising numbers of new coronavirus cases. US and Eurozone shares fell but Japanese and Chinese shares rose slightly. Reflecting the messy global lead Australian shares fell slightly as a rise in bond yields pushed down utilities, telcos and …

How to review your direct debits and save

  How to review your direct debits and save Direct debits can be extremely convenient and even save you money. But they can become costly – and may even send you into debt – when you lose track of your automated payments. Conduct regular reviews to keep on top of your direct debits. Here’s how. Type ‘direct debit’ into your internet search engine and the words ‘hassle free’, ‘easy’ and ‘simple’ will likely pop up …

7 ways to stay active and healthy in retirement

7 ways to stay active and healthy in retirement Staying active and connected in the current environment may have its challenges, but here are some tips that could help keep your physical and mental wellbeing in check. When it comes to living a longer, healthier, more active lifestyle, a good approach can often involve easy tasks that you can turn into everyday habits – even when social distancing is on the agenda. If you’re after …

Expect slower medium-term returns

Expect slower medium-term returns Key points The continuing decline in investment yields on the back of falling interest rates and bond yields has seen our medium term (5 to 10 year) return projections for a diversified mix of assets fall to around 4.8% pa. At least it’s still better than sub 1% bank deposit returns. The key for investors is to have realistic return expectations, allow that inflation is also low and focus on assets …