The Rich Life Vol 59
In this issue:
Welcome to our July newsletter and the start of a new financial year. With winter in full
swing, it’s a great time to rug up by the fire, take stock of the year that was and make
plans for the future.
June was a big month in an eventful year for the local and global economy, with inflation
and interest rates continuing to dominate. The US Federal Reserve lifted official rates by
0.75% to a target range of 1.50-1.75% to combat surging inflation of 8.6% in the year to
May, stoking fears of a US recession.
Australia faces similar but less acute challenges. With inflation sitting at 5.1%, the Reserve
Bank lifted the cash rate by 0.5% to 0.85% in June and Governor Philip Lowe hinted
at more to come in July. The Australian economy is still growing relatively strongly at
an annual rate of 3.3%. Retail trade rose 10.4% in the year to May on the back of low
unemployment and high household savings. Household wealth rose to a record high of
$574,807 in the year to March, but since then there has been a global sell-off in shares,
a slowdown in the Australian housing market and cost of living pressures are mounting.
The ANZ-Roy Morgan consumer confidence reading remains weak at 84.7 points (100 is
neutral).
Australia’s national average petrol price rose to 211.9c a litre in June, the second highest
on record, on the back of a surge in global oil prices. Brent Crude rose almost 55% over
the past year as the war in Ukraine disrupts supply. Despite a late bounce in shares, the
ASX200 fell more than 8% in the year to June, while US shares were down more than
11%. The Aussie dollar lost ground over the financial year to finish below US69c.
New rules coming into force on July 1 will create opportunities for older Australians to boost their retirement savings and younger Australians to build a home deposit, all within the...
As baby boomers shift into retirement, Australia is on the brink of the nation’s biggest ever intergenerational wealth transfer. Yet estate or inheritance planning is rarely discussed by...
As interest rates start to increase after a lengthy period of historical lows, it’s a good time to think about how your money is working for you and whether your investing style and...
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