Welcome to the July issue of Financial Insights and Updates.
This month, we feature the video ‘The “secret” to financial freedom? Persist while others quit’, which shows the value of an initial $10,000 investment in the Vanguard Diversified High Growth Index ETF (VDHG), that kept invested vs selling when markets were volatile. Definitely an interesting chart, to see what it means to persist in the face of market volatility.
With the new financial year now started, here are some of the changes starting from this month:
Increase in Superannuation Guarantee to 11%
The end of the low and middle income tax offset
The "shortcut method" for claiming work-from-home deductions has ended
Minimum wage will rise from $21.38 per hour to $23.23
50% reduction in the minimum pension drawdown rate will no longer apply
Significant changes to Child Care Subsidy (CCS) including payment rate increases and expanded eligibility.
Can I got back to work if I have already accessed by Super?
Generally, you can, but there may be other things to consider. When you access your super at retirement, depending on your age and personal circumstances, your super fund may ask you to sign a declaration stating you intend to never return to work again. However, there could be compelling reasons as to why you might go back in the future.
Are you taking care of elderly parents? Do you still have adult children living at home? Do the words ‘meat’ and ‘sandwich’ strike any chords with you? You could be a member of the “Sandwich Generation” without realising it!
4 time tested investment strategies for young investors.
The newest generation of young investors were raised during the Age of Information. Growing up alongside the internet, this generation has been exposed to more information and technological advancement than any generation before them.