Spring 2017

Spring is finally here and it's not just nature showing signs of growth; the Australian economy is also bearing fruit.

Most of the top 200 ASX-listed companies have now announced their results for the 2017 financial year and the overall report card is good. According to CommSec, 90% of companies reporting full-year results turned a profit, while 91% paid a dividend.
Earnings were up a combined 67% on a year ago, dividends were up 10% and cash levels rose 27% to almost $108 billion. The strongest sectors were mining, which benefited from stronger commodity prices and cost cutting, followed by food companies, REITs and companies dependent on the housing market. Dragging the chain were consumer-focused and media companies.

A healthy outlook for the job market was reflected in a fall in unemployment from 5.7% to 5.6% in July, although wage growth is still sluggish up just 0.5% in the June quarter for an annual rate of 1.9%. The NAB business conditions index rose to a 9-year high of 15 points in July, while the business confidence index also firmed 8.4 points to 11.7. Consumers are less positive, with the weekly ANZ/Roy Morgan consumer confidence rating lifting off a 12-month low to finish August at 113.5. The Australian dollar remains a challenge for exporters, firming to end the month close to US80c.

I hope you find this and other articles in this months newsletter of interest.

Looking forward to chatting or hearing from you soon, best regards


How to prepare for climbing interest rates

Interest rates have been low for so long it's tempting to think low rates are the new normal.  
So when the Reserve Bank suggests that a cash rate of 3.5% is the new 'neutral', people take notice. Even the Prime Minister warned Australian householders to prepare for higher interest rates ahead.

The official cash rate has been held at a record low of 1.5% since August 2016, but in recent months the Reserve Bank has begun preparing the ground for higher rates. The Reserve Bank says it... Read more

Life insurance inside or outside super?

If you've got super, chances are you'll have some default insurance included and the option to buy more at an attractive price. It's a cost effective way to get a basic level of cover, but holding insurance inside super does have some downsides.

Forms of super insurance:

There are three types of insurance you can hold inside super: life, total and permanent disability (TPD) and income protection insurance. Many super funds automatically insure their members and will provide a (relatively small) payout if, for example, they die or suffer a debilitating... Read more

The lost art of conversation

When was the last time you had a lengthy chat to a friend over the phone or, rarer still, a decent face-to-face catch up? Remember spending time with a loved one making the most of precious hours having saved up every story, anecdote, and interesting conversation starter up your sleeve? Nowadays the bulk of our relationships seem to be conducted via text.

It's not just SMS. We now have so many different ways to communicate 24/7, if you also include email, social media, and video as well as phone calls. We... Read more

New release of Updated Combined FSG - Version 7.0, dated 28 August 2017

There are two main changes:

  • Updated for Easton Investments Limited ownership details

  • Removal of the words "non-institutionally-owned" under section 2, in light of the

ASIC  media release of 27 June clarifying its position on restricted terms.

You can download the new version by clicking below.


Arrow Focus on Wealth

2 Thredbo Drive
Worongary Qld 4213
W www.focusonwealth.com.au
E janet@focusonwealth.com.au
P 07 5530 3500
Facebook /focusonwealth.com.au 

Steve Culpitt is a Sub Authorised Representative ( AR 270473) of Arrow Focus on Wealth.
Arrow Focus on Wealth Pty Ltd is a Corporate Authorised Representative (CAR 270472) of GPS Wealth Ltd AFSL 254 544 Australian Credit Licence 254 544 ABN 17 005 482 726 General Advice Warning: This communication contains general advice only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice before making any decisions regarding any products or strategies mentioned in this communication.
Disclaimer: Whilst Arrow is of the view the contents of this article is based on information which is believed to be reliable, its accuracy and completeness are not guaranteed and no warranty of accuracy or reliability is given or implied and no responsibility for any loss or damage arising in any way for any representation, act or omission is accepted by Arrow or GPS Wealth Ltd or any officer, agent or employee of Arrow or GPS Wealth Ltd.