‘…drive cash rates to zero, 10-year bond yields to 1 per cent and the Australian dollar to US60 cents (as reported in The Australian Financial Review).

So if you are of my generation then the deposit interest rates that 76% of our generation rely on today to have a comfortable later years then a different perspective is required.

I researched today for a client & a term deposit on the platform was 1.95%.

That as I studied & taught in maths is approaching Zero.

So do you have to reduce your lifestyle when just maybe you have another decade of health to enjoy.
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Yes the deeming rate has been reduced & now Centrelink assumes or deems that you might earn 3%.

Do you?

• Yes you can as there are alternatives to term deposits & remember even term deposits aren't immediately liquid.

E.g. Investors with units in the **** Monthly Income Trust received a net rate of return equivalent to 7.50%p.a.

E.g. Investors with units in ******Enhanced Cash received a net rate of return equivalent to 4.72%p.a.

All figures are based on unaudited figures as at 31 July 2019 and are subject to change. 

• There is also another possible solution to improving your Centrelink position as there have been significant changes to income streams under the asset test.

• Your assets & income as lifetime income streams can be discounted by up to 40% which may mean more pension for you.

e.g. A capital guaranteed solution for life which is designed to protect outliving your money & very likely to have higher rates than you are currently achieving with Term deposits.

Houston you might want to take Maintain your lifestyle & Not Drop under water.

i.e not use up your capital to remain happy.

You & I read

‘Door open to more rate cuts
RBA leaves open the prospect of further rate reductions in coming months if job conditions don’t improve.’

and today

Yields on 10-year US Treasury notes fell below the two-year yield, intra-day, for the first time since 2007, in what is known as a yield curve inversion and widely seen by investors as a sign that a recession is coming.

As others do contact John McAuliffe to model & optimise by modelling your future lifestyle.

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Ps very general advice for the PC