2018: A balancing act

Fidelity's Investment Director, Tom Stevenson, shares his thoughts on investing in 2018. Most of the time investors don’t need to think too much about market timing or asset allocation. The long-term trajectory of financial markets is up and the only sensible thing to do is to be fully invested and allow the odds to work in your favour. As we enter 2018, however, it doesn’t feel like ‘most of the time’. Nine years into the current equity bull market and with well-known and successful...

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Beyond share prices

Investors shouldn't overlook that there are two components to sharemarket returns – dividend yield and capital gains (or losses). Few investors would have missed the news reports of late pointing out that although Australia's sharemarket has broken through the 6000-point mark, it's still below the record pre-GFC high.  But looking at share price movements alone can give investors a misleading impression and encourage them to overreact to short-term market shifts and other market "noise". And...

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Power of retiree super dollars

With the waves of baby boomers now nearing or entering retirement, it is hardly surprising that the ranks of retired super members is rapidly growing. Yet the extent of that growth may surprise you. The latest Superannuation Market Projections report, recently published by independent consultants Rice Warner, forecasts that the number of members with retirement accounts will rise by almost 70 per cent over the next 15 years to more than 3.7 million. And the total value of retirement assets in...

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Superannuation and moving overseas

If you’re an Australian permanent resident or citizen heading overseas, your super remains subject to the same rules, even if you are leaving Australia permanently. This means your super must remain in your super fund/s until you reach preservation age and are eligible to access it. Can I contribute while I’m away? Probably. However, there are restrictions on contributions to self-managed super funds (SMSFs). People in other super funds often continue to make personal contributions to their...

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The financial difference for women

Recent decades have seen huge gains made in the financial empowerment of women. However complete financial equality won’t happen soon and in some cases may be unattainable. So what are the areas where women lag financially, and when it comes to retirement planning, what can be done? 4 key issues Gender pay gap. Across all industries, including those in which female workers outnumber males, men are, on average, paid 18% more than women. For non-managerial clerical workers the gap is...

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Monetary Policy Decision – Statement by Philip Lowe, RBA Governor, February 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. There was a broad-based pick-up in the global economy in 2017. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. Growth has also picked up in the Asian economies, partly supported by increased international trade. The Chinese economy continues to grow solidly, with the authorities paying increased attention to the risks in the financial sector and the...

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