If you are working for a living, then you should seriously consider insuring the income you receive. Income protection is a very simple insurance: You purchase an insurance policy that pays you a benefit if you become unable to work due to illness or injury.
A few weeks ago we wrote about income return – the return you get while you continue to hold an investment asset. This week, we turn our attention to capital return – the return you don’t get until you sell your investment asset.
Last week, for the third month in a row, the Reserve Bank of Australia hiked its target cash rate. The target rate is now 1.35%, up from the all-time low rate of 0.1% that it had been at since November 2020. So, what is the target cash rate? And why does it matter?
Inflation is starting to bite, and people on income support, such as aged pensioners, have not had their benefits adjust yet. This has many of our clients thinking about how best to cover the rising cost of living. Happily, the Commonwealth is here to help.
The financial year is almost over. Which, of course, means that the new financial year is about to start. This makes right now a great time to develop some better financial habits, so that your finances are fully charged come June 30 next year.
As the clock ticks down to the end of the financial year, there are two small superannuation strategies we wanted to remind you about. Neither will make you a millionaire, but good financial management is often a combination of many small, smart moves.
In our last article in May, we emphasized the need to get your super contributions in order before June 30. We discussed the ‘carry forward’ rules for non-concessional contributions. The feedback was excellent, so this week we want to talk about the ‘catch-up’ rules for concessional contributions.
Now that the election is (finally) behind us, it is time to remember that the end of the financial year is just around the corner. June 30 is a bit less than five weeks away. So, now is the time to make sure your super contributions are up to date.