At the close of another tumultuous year for markets, our most-read stories show readers were interested in the effects of higher interest rates, as capital protection and income security gained importance amid cost-of-living concerns.
The last few years have been challenging for markets, but they’ve also reset the playing field for fixed interest. For those seeking income and capital protection in the event of an equities downturn, particularly retirees, it’s time to revisit credit, says Bentham Asset Management’s Richard Quin.
The financial services giant’s top economists look at the risks that dominated markets this year and how they’re likely to evolve in 2024, warning that the new year could be a “rougher and more constrained ride” compared with 2023.
To fill Australia’s financial advice gap and empower better financial and retirement outcomes for millions, the government’s plan will create a “new class of advisers” from the institutional ranks to provide simple advice to customers. Industry groups have applauded the move.
Nearly nine in 10 older Australians believe they’ll still be paying off a mortgage when they retire, and most are preparing for lifestyle downgrades, as new AMP research shows rising household debt levels are threatening the “Australian dream”.
It’s the first time in nine editions of the UBS Billionaire Ambitions Report that the ultra-rich inherited more money than they earned through entrepreneurship, suggesting the $68 trillion intergenerational wealth transfer is already well under way.
The government’s move to shift Australia’s superannuation system to a focus on the retirement phase might be a big ask for a population long focussed on accumulation. But it’s a necessary one, as most retirees don’t fully grasp how to make their golden years work for them.
Focussing on the quality of a company and how it’s likely to perform is a key part of a high-conviction strategy, says fund manager Claremont Global. It’s also a useful strategy for investors who want access to the AI-fuelled tech phenomenon in the US without getting caught up in the noise.
The proposed tax on super balances exceeding $3 million is still flawed and should not be legislated in its present form, the peak body representing self-managed superannuation funds said, imploring Senate cross-benchers to ice the bill.
Investors today have no shortage of worries to keep them up at night. According to AMP’s chief economist, it’s an ideal time to revisit some crucial investment principles that can help protect capital and provide peace of mind.
