Expanding eligibility to downsizer measures: Legislation has been introduced to reduce the downsizer eligibility age from 60 to 55. This measure will take effect from the first quarter after passing into law, which is expected to be 1 January 2023.
Share market pullbacks are healthy and normal - their volatility is the price we pay for the higher returns they provide over the long term.
But adopting good financial habits isn’t always as easy as it sounds, start building good financial habits with these six steps.
The Government has announced that it will bring forward stage two of the previously legislated tax cuts that were due
to take effect from 1 July 2022 by two years.
1. Rear-view mirror investing
Making investment decisions based on past performance is a high-risk strategy at the best of times, and we never recommend it.
2. Lack of portfolio diversification
As this Report shows, all asset classes are vulnerable to the vagaries of the market. Having a narrowly
focused portfolio by putting all your eggs in one or two asset classes exposes investors to a lot of
unnecessary downside risk.
3. Reliance on residential property
The only way to avoid the considerable downside risk of single-asset investing is true diversification across asset types.
4. Investing in over-priced traditional assets
The potential benefits of greater diversification and active management become all the more meaningful the lower the expected market returns.
5. Setting and forgetting
Instead of a ‘set and forget’ approach which relies on a steady-state, unchanging market environment,
investors faced with volatile markets will require a nimble approach, shifting between asset classes and sub-asset classes in real time as market conditions change.
