Financial Insights & Updates - May 2022
Welcome to the May issue of Financial Insights and Updates.
The Consumer Price Index (CPI) rose 2.1% in the March quarter and 5.1% annually - the greatest increases since the introduction of the Goods and Services Tax in 2000. Our feature article this month looks at inflation rates around the world. It is interesting to note that inflation has increased further since the data in the article was obtained 3 months ago. The article “The effect of rising inflation” provides information about what is inflation, how it affects investors and how should you prepare for rising inflation.
The Reserve Bank of Australia (RBA) raised the cash rate 0.25% earlier in May and has been signalling more rate hikes ahead. More than 23 lenders have now passed on a variable rate hike to borrowers and will continue to do so with each increase. Our article “What to do if you’re facing mortgage stress after the interest rate hike” might be useful for those of you struggling as a result of the increase in your home loan interests.
Another article we would like to point your attention to is “Don’t leave your family's future in the hands of a Crowdfund”. We often come across public appeals for donations using ‘GoFundME’ pages via social media or news articles. Devastated families end up relying on the generosity of others in the tragic event of illness or death of a breadwinner. Come and speak to us and we will help you take steps to avoid your family having to resort to crowdfunding, where less than a third end up reaching the fundraising goal.
As we come to the end of May, we would like to remind those of you who would like to make a contribution to your superannuation funds to do so before June 30 and to submit your notice of intent to claim a deduction for personal super contributions if applicable.
In signing off, please remember that we are always available to answer any questions or queries you may have and to come speak with us before making any major investment decisions.
The Team at Savanna Pride
The effect of rising inflation
The word ‘inflation’ doesn’t only dominate business news headlines, but finds its way into general news reports too. So, what is inflation and how does it affect you? In simple terms, inflation signifies a rise in the price... Read More
What to do if you're facing mortgage stress after the interest rate hike
More than 23 lenders have now passed on a variable rate hike to borrowers after the Reserve Bank lifted the cash rate on Tuesday. In the first official rate hike in more than 11 years, the RBA increased the cash rate from... Read More
Don't leave your family's future in the hands of a Crowdfund
If there is anything we have learnt in the last two years, it is just how quickly things can change. Between devastating bushfires, floods, and a life-altering pandemic (just to name a few), being prepared for the unexpected.. Read More
Five ways small business owners can cut their tax bill
Tax law is complex, so it's always worth speaking to your accountant or registered tax agent to be clear on what your business can claim in the run-up to June 30. With this in mind, here are five ways to make the... Read More
Can I set up a super fund for my kids?
It's possible to set up a super fund for under-18s. The bigger question is, should you? According to Australian Tax Office data, over 40,000 boys and more than 35,000 girls aged under-18 already have their own... Read More
Seven steps for navigating finances after the death of a loved one
Losing a loved one is hard enough, particularly during a pandemic, but what comes next can sometimes be complex and costly. There is organising the funeral, tracking down a will and winding up the estate. Read More