There is some good news & yes some bad news.’
Australia’s central bank to adopt QE
The risk of a credit crunch is real and rising and with the housing market now falling sharply, and economic data deteriorating, Australia’s central bank signalled it will slash rates twice this year.
In a speech on Tuesday, Reserve Bank of Australia governor Philip Lowe signalled a rate cut as unemployment is unlikely to fall; inflation will remain low and wage growth is non-existent.
the high level of household debt makes Australia’s adoption of QE inevitable.
And
“High household debt is an issue for most markets but Australia’s debt combined with the housing downturn is fuelling concerns that consumers just aren’t willing to borrow.
So that is the good news for Borrowers.
But it is Bad news for those who rely on bank rates to have a better than modest income when they retire.
Term deposit rates are low & yes they will get lower which is means a lower more modest lifestyle for the 700 who are retiring today.
And those who will or have retired.
But the good news is that there are other options available on our Approved Product List APL that will or may accommodate your investment concerns.
At our professional development day recently I was reminded of an
Enhanced Cash (7 day cash at call)
3 month performance – 4.55% per annum net
Since Inception (May 2017) – 4.10% per annum net FUM as at 20th May is $60 million
Another option was a Monthly Income Trust
5 year performance – 7.93% per annum net
Since Inception (February 2007) – 7.84% per annum net
which does pass all yours & mine filters although past earnings does not mean future earnings will do so.
These may be very good options for you for short term savings due to their relative liquidity which you can read & understand in the product document PDS.
e.g house deposit, school fees, overseas trips or other
Anther option on our APL is Capital Guaranteed for life & also paying the equivalent of more than bank rates & with Centrelink means testing advantages to You.
I help you to optimise what you have within your comfort zones with many more options available to you under our APL.
If you want to learn more to minimise the bad news then Email, PM or visit my website or even call 07 3848 1088
John McAuliffe
