With the New Year now here, it’s crucial to shift our focus towards estate planning. Often underestimated, this financial aspect tends to take a backseat in the lives of many Australians. It’s perceived as a task for the distant future or something that can be postponed indefinitely.
It is often said that ‘Time and tide wait for no one.’ Therefore, to achieve success in life, one needs to develop a deep appreciation for time.
Anyone can benefit from time management — whether in school, the office or life in general. You can realise your career goals, boost productivity, reduce stress, and experience better work-life balance by knowing how to manage your time.
In this post, we’ll talk about effective time management. We’ll discuss the importance of time management and the many benefits it provides.
Time management refers to the practice of organising and planning how you can split your time between specific tasks and objectives. Effective time management ensures you devote the appropriate amount of time to certain activities to achieve your goals for the day, week, month or year.
Individuals applying time management typically assign specific time slots to activities based on their importance or relevance. And since time is finite, the goal of time management is to make the most of one’s available time.
To realise the value or importance of time management, one must be aware of the consequences of failing to use time effectively.
When we understand the value of time management and plan to apply it, we become more effective at work and in life. We can even transform our lives and the world around us by working toward developing effective time management skills.
Below are other benefits of time management:
If you want to know how to improve time management and implement it right away, here are some effective techniques so you can start experiencing the benefits of using your 24 hours a day wisely.
These strategies do not require special tools or devices to implement.
What you need is the commitment and discipline to make better use of your time so you can stress less, achieve more, and live a full, well-balanced life.
View Jacqui’s website profile here or connect with her on LinkedIn here.
To have the impact we intend for our clients, as a team, we must continuously work on ways to manage our time effectively. I frequently engage with our team, discussing strategies to elevate our collaborative efforts while prioritising our client’s time. These principles are not limited to the workplace but can be seamlessly integrated into our daily lives, fostering a deep respect for both our time and that of our clients. I trust that this article has offered valuable insights on how you can optimise your time management each day.
Jacqui Sherlock – CEO
Original article: Feedsy
Investing, a realm filled with potential opportunities and pitfalls, demands careful consideration to navigate successfully. Each misstep along the way can serve as a valuable lesson, contributing to a more refined and robust investment strategy. Here are 20 crucial investment mistakes to be aware of, each of which plays a pivotal role in shaping a sound investment approach.
To avoid these common pitfalls, investors should seek financial advice, prioritise rational decision-making, and focus on long-term objectives. Financial goals, current income, spending habits, market conditions, and expected returns should guide portfolio construction. This approach helps investors steer clear of short-term market volatility and underscores the importance of consistent, long-term investments in wealth accumulation.
Designing and managing your investment portfolio can be complex; with our experience and understanding, we can help tailor an overall investment plan to suit your long-term goals. Reach out to our financial advice team for strategic investment advice here.
This information does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.
(Feedsy Exclusive)
Data source: Bloomberg & Financial Express. Returns greater than one year are annualised.
Commentary regarding equity indices below references performance without including the effects of currency (unless specifically stated)
The ASX 200 was up 5.0% for the month of November, halting the three-month slide in returns. Eight of 11 sectors finished positively; the three strongest being Health Care (+11.7%), Property (+11.0%), and Information Technology (I.T.) (+7.4%), while Energy (- 7.4%) and Utilities (-6.0%) were laggards. The month began with a rate hike by the RBA and fears of further increases. However, markets were supported by indications of inflation slowing at a decent pace, finishing the month with the strongest return for the index since January. The Health Care sector was driven by a strong month for three major constituents: CSL, ResMed and Cochlear. Meanwhile, despite the RBA’s decision early in the month, the rate-sensitive Property and I.T. sectors were the beneficiaries of the ease in inflation as investors piled back into those sectors.
Energy stocks were hit by the significant drop in oil prices over the month, partly due to the Chinese economy continuing its struggles. Meanwhile, Utilities were impacted, predominantly by one stock, Origin Energy, as the unpredictable takeover bid of the company saw its shares fall almost 10%. In all, the ASX 200 finished November by clawing back some of the losses seen in the previous three months.
Global equity markets gained in November, rebounding from October lows. Developed markets outperformed emerging market counterparts returning 4.4% (MSCI World Ex-Australia Index (AUD)) versus a 3.1% return according to the MSCI Emerging Markets Index (AUD).
The S&P500 finished up 9.1% and the Nasdaq up 10.8% (in local currency terms) as the Federal Reserve shows signs of ending rate hikes. European markets also gained on easing inflation data, the DAX gaining 9.5% (in local currency terms) over the month.
Chinese markets performed poorly, as China’s economy continued to contract and artificially lowered iron ore prices fail to bolster the economy. The Hang Seng Index and CSI 300 Index lost -0.2% and -2.1% for the month (in local currency terms), as China’s largest property giant EverGrande continues to face collapse, dragging the Real estate Sector lower in China.
The S&P/ASX 200 A-REIT Accumulation index advanced during November, with the index finishing the month 11.0% higher. Global real estate equities (represented by the FTSE EPRA/NAREIT Developed Ex Australia Index (AUD Hedged)) also finished strong, advancing 9.0% for the month. Australian infrastructure also performed well during November, with the S&P/ASX Infrastructure Index TR advancing 1.6% for the month and up 6.6% YTD.
The Australian residential property market experienced an increase by +0.6% Month on Month (as represented by CoreLogic’s five capital city aggregate). Perth was the biggest riser (+1.9%), followed by Brisbane (+1.3%) and Adelaide (+1.2%). In contrast, Melbourne (-0.1%) was the only city to deliver negative returns in November.
After four months of rate hike respite, the RBA has lifted the official cash rate by 25 basis points to 4.35% following latest inflation data and economic indicators. This marks the highest cash rate level since 2011, and the RBA will continue to monitor the balance between the strong labour market and slowing household sector. Over the course of the month, bond yields fell steadily with Australian 2 and 10-Year Bond yields falling by 35bps and 52bps respectively. The Australian bond market, as measured by the Bloomberg AusBond Composite 0+ Yr Index, rose 2.97%.
The RBA raised the cash rate by 0.25% to 4.35% on Melbourne Cup Day, the first rate hike under new governor Michele Bullock. The tone of commentary accompanying the bank’s decision suggested a lower chance of further monetary tightening and investment markets are now pricing in a 20% chance of rate cuts by the end of 2024.
October’s inflation indicator came in at 4.9%, with the most significant rises coming from housing, food, and transport. 3Q23 GDP fell short of expectations, growing only +0.2% over the June quarter (compared to +0.4% forecast). In annual terms GDP expanded 2.1%, in line with the prior quarter and ahead of market expectations of 1.8%.
The Westpac-Melbourne Institute Index of Consumer Sentiment fell 2.6% to 79.9 in November, returning to deeply pessimistic levels as the RBA’s rate rise has put renewed pressure on family finances. Retail sales fell 0.2% in October, the first decline since June as consumers pulled back on some discretionary spending and awaited Black Friday sales. In contrast, annual sales increased 1.2%.
The unemployment rate increased to 3.7% in October, aligning with the market expectations. The Wage Price Index grew 1.3% in quarterly terms in the third quarter, meeting expectations. The reading was the highest quarterly growth in the 26-year history of the index. On an annual basis, growth rose to 4% vs 3.6% rise last quarter.
Composite PMI fell again in November to 46.2, largely driven by a sharp decline in services output. The NAB business confidence index fell to -2 in October with falls in most industries. The trade surplus came in at $7.13 billion in October, below market forecasts of $7.5 billion.
During November there was further evidence of inflation easing across the world, making it more likely that the next move for central bank interest rates is down. German CPI gains slowed to +2.3% in November, while Spain’s inflation rate fell to an annualised rate of +3.2%, both below expectations.
The Hamas/Israel war entered its second month and combined with the ongoing Russia-Ukraine war provides significant headwinds for the global economy. Aside from the catastrophic human toll, these wars could affect the US and European economies via lower regional trade, tighter financial conditions, higher energy prices and lower consumer confidence.
The Federal Reserve kept rates at 5.5% at its November meeting, reflecting the twin focus of returning inflation to the 2% target while avoiding excessive monetary tightening. Policymakers emphasised that any additional policy tightening would consider the cumulative impact of previous interest rate hikes, the time lags associated with how monetary policy influences economic activity and inflation, and developments in both the economy and financial markets.
Annual inflation fell to 3.2% in October, below market expectations of 3.3%, as energy costs dropped 4.5% and food, housing and used car costs rose at a softer pace. PPI fell 0.5% month-over-month in October, the most since April 2020 and against market expectations for a 0.1% increase.
The economy added 199,000 jobs in November, above the anticipated 180,000, with the unemployment rate falling to 3.7%. While the economy added more jobs than expected in November, it is the second month in a row that new jobs were well below the average of 240,000 jobs per month for the past year, suggesting that the labour market is slowing.
In November consumer sentiment fell to 60.4, missing estimates for 64 and largely driven by high interest rates and persistent inflation fears. Retail sales in October fell 0.1% over the month, ahead of expectations for a 0.3% drop but a slowdown from September’s upwardly revised 0.9% rise. The annual rate increased 3.75%.
The S&P Global Composite PMI was steady at 50.7 in November as services activity showed a small uptick in the rate of growth. The trade deficit for October came in at US$64.31 billion, above the forecast US$64.2 billion.
There was no meeting of the ECB in November, so interest rates remained at 4.5%. Annual inflation fell to 2.4% in November, well below the expected 2.7%.
PPI rose 0.2% in October, with the annual rate dropping by 9.4% as energy costs continued to fall, but at a slower rate than in previous months. Unemployment was unchanged at 6.5% in October, matching market expectations.
Consumer confidence rose to -16.9 in November reflecting improved assessments of the general economic situation and lower than expected inflation. Retail sales grew 0.1% in October, falling short of market expectations of a 0.2% rise as consumer demand remained subdued due to persistent high inflation and elevated borrowing costs. The Composite PMI rose to 47.1 in November but still represents a deterioration in economic conditions with input costs rising sharply and employment declined for the first time in three years.
Inflation for October came in at 4.6%, down from 6.7% in both September and ahead of expectations of 4.8%. This fall is due in part to the reduction in energy prices following a decision by the UK energy market authority to lower the cap on household bills.
PPI fell to 0.1% in October in line with expectations, with the annual rate falling 0.6%, below the estimated 1% fall.
Consumer confidence rose to -24 in October, ahead of the anticipated -28 even as ongoing cost of living concerns continued to impact. Retail sales dropped 0.3% in October, well below the expected 0.3% rise as consumers are spending their money more cautiously. Annual sales fell 2.7%, more than the expected -1.5%.
Further disappointing economic data was released from China, with deflation of -0.2% in the headline CPI for the year to October. PPI was down 2.6%, having now declined for 13 consecutive months. Chinese exports contracted 6.4%, much worse than expected, and the country recorded its first ever quarterly deficit in Foreign Direct Investment as offshore companies withdrew capital.
Composite PMI rose to 51.6 in November, the steepest pace of growth since August as both services and manufacturing activity increased. Retail sales increase 0.1% in October with annual sales increasing 7.6%, above the expected 7.0%
The unemployment rate remained at 5.0% in October.
The Japanese economy shrank 0.7% in 3Q23. It was the first GDP contraction since 3Q22, amid elevated cost pressure and mounting global headwinds. CPI accelerated modestly to +2.9% in October and has now been above the Bank of Japan’s 2% target for 19 consecutive months. The country’s annual wage negotiations, due to begin in February, are expected to provide a further boost to Japan’s inflation, with large trade unions aiming for member pay rises of at least 5%. Further evidence of sustainably above-target inflation may provide the BOJ with sufficient justification to withdraw its monetary stimulus measures, which have so far kept cash interest rates negative and Japanese 10-year government bond yields below 1.0%.
The unemployment rate fell to 2.5% in October, below market expectations.
The consumer confidence index rose to 36.1 in November, with sentiment increasing in most components. Retail sales fell 1.6% in October, with the annual rate rising 4.2%, well short of the forecast 5.9%. Although the lowest figure for ten months, retails sales continue to recover from the pandemic induced slump.
Composite PMI dropped to 49.6 in November, the first contraction since December 2022, as a drop in manufacturing offset the growth in services activity.
The Australian dollar (AUD) appreciated over the month of November, closing 2.2% higher in trade weighted terms to 61.5, appreciating against all four referenced currencies in this update.
During the month, the volatility between the AUD and US Dollar (USD) stabilised, with the key factor behind the AUD’s rebound being the widespread weakening of the USD. This trend was largely influenced by the mid-month US Consumer Price Index (CPI) release, revealing a 0.1% downside surprise in the core (excluding food and energy) measure. This outcome boosted confidence that the Federal Reserve has concluded its current tightening cycle, increasing the likelihood of rate cuts in the first half of 2024.
Relative to the AUD, the Pound Sterling (GBP) depreciated the least during the month, closing 0.3% lower. The laggard of the month was the USD, depreciating in relative terms against the AUD by 4.2%. Year-on-year, the AUD remains behind the GBP, Euro (EUR) and USD by -6.9%, -6.8% and -1.6% respectively, whilst ahead of the Japanese Yen (JPY) by 4.7%.
Many people assume there is no tax payable on super benefits received after someone passes away, but that’s not always the case.
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Data source: Bloomberg & Financial Express. Returns greater than one year are annualised.
Commentary regarding equity indices below references performance without including the effects of currency (unless specifically stated).
The ASX 200 finished September down 2.8%, reflecting the losses seen globally. Energy was the only gainer (1.6%), with all the other 10 sectors finishing the month in the red. The largest drops were seen in Real Estate (- 8.6%), Information Technology (-7.9%), and Healthcare (-6.2%). However, Australian equities did manage to outperform some global markets.
Energy was the lone bright spot in the market, returning 1.6%, riding the tailwinds of rising global oil prices. In terms of laggards, the Real Estate sector was hit hard with an 8.6% drop, reflecting the “higher-for-longer” rhetoric regarding interest rates, and the potential impact on property values.
Given the potential impact of interest rates on high growth tech stocks, IT was another sector seemingly hampered by the hawkish sentiment in September, suffering losses of 7.9%. This mirrored the sell-off in US tech giants such as Apple, Nvidia, and Amazon.
Global equities had a negative month, with September typically being the worst performing month historically for stocks. Emerging markets outperformed developed market counterparts returning -2.3% (MSCI Emerging Markets Index (AUD)) versus a -4.0% return according to the MSCI World Ex-Australia Index (AUD).
Continued negative economic data in September saw another rise in bond yields and a decrease in equity markets, with inflation falling slower than expected, primarily due to rising energy costs. US equities stumbled amid an interest rate hold and the prolonged possibility of a government shutdown, recording one of its worst months for the year with the S&P500 Index declining -4.8% (in local currency terms) during the month.
The UK was one of the few positive performers for the month, with the FTSE 100 Index returning a gain of 2.4% (in local currency terms). This was driven by a decrease in domestic core inflation and surprising GDP data above expectations. The Bank of England also kept interest rates on hold.
The S&P/ASX 200 A-REIT Accumulation index finished September lower after consecutive positive months in July and August, with the index finishing the month – 8.6%. Global real estate equities (represented by the FTSE EPRA/NAREIT Developed Ex Australia Index (AUD Hedged)) also fell, returning –5.3% for the month. Australian infrastructure finished lower through September, with the S&P/ASX Infrastructure Index TR returning -1.6% for the month.
In the month of September, M&A activity was relatively quiet. BWP Trust (ASX: BWP) announced the divestment of their Wollongong property to an unrelated third party for $40mn. In broader news Charter Hall (ASX: CHC) announced their new CFO, Anastasia Clarke, following the resignation of former CFO Russel Proutt. Cromwell Property Group (ASX: CMW) announced the resignation of their CFO Michael Wilde and are yet to announce a replacement.
The Australian residential property market experienced an increase by +0.9% Month on Month (as represented by CoreLogic’s five capital city aggregate). Adelaide was the largest riser (+1.7%), followed by Brisbane and Perth (both +1.3%). All five capital cities performed positively for the fifth consecutive month with Melbourne (+0.4%) being the worst performing city. Over the one-year period, Perth was the largest gainer (+8.8%).
In his final meeting as RBA Governor, Phillip Lowe kept the cash rate on hold at 4.10% for the third month running. This month’s meeting signifies Lowe’s final monetary policy decision hand down, with his seven-year term not being renewed. During his term, Lowe and the RBA board cut rates to a historic 0.1 percent, and subsequently hiked rates 12 times in a bid to control inflation. Lowe’s successor, Michele Bullock, took over the role on September 17.
The month saw a sharp repricing of bond markets with yields rising to cycle highs. Australian 2- and 10- Year Bond yields rose 25bps and 46bps respectively, and the Bloomberg AusBond Composite 0+ Yr Index returned – 1.53%. Despite inflation rates falling and economic data showing a slowing economy, bond markets appear to be repricing due to concerns central banks are expected to maintain higher interest rates for a prolonged period.
The story was similar in the US, with the Federal Reserve holding the target cash rate steady at 5.25%- 5.50% citing easing inflation pressures and concerns of slowing economic growth. Despite the rate hike respite, bond markets experienced a poor month, correlating positively with equity markets. US 2- and 10- Year Treasury yields rose 18bps and 46bps respectively, and the Bloomberg Barclays Global Aggregate Index (AUD) returned -2.58% over the course of the month.
The RBA held the cash rate at 4.1% in September, reserving the need for increases in the coming months to ensure that inflation returns to target in a reasonable timeframe. Inflation unexpectedly rose to 5.2% in August with the most significant rises in housing, transport, food and insurance.
The Westpac-Melbourne Institute Index of Consumer Sentiment fell to 79.7 in September, with pessimism persisting, despite easing fears of further interest rates. The unemployment rate was steady at 3.7% in August, matching market forecasts. Retail sales increased by 0.2% in August, below the market estimate of 0.3%, while annual sales rose 1.5%. These figures indicate that consumers continue to rein in spending as interest rates remain elevated.
Composite PMI increased to 50.2 in September, the highest figure in four months, indicating a return to expansion for the private sector. The NAB business confidence index came in at 2 in August with sentiment mixed across industries and falling sharply in mining.
The World Bank has maintained its forecast for China’s 2023 economic growth at 5.1% in line with its previous estimate in April. Their predictions were trimmed for 2024 to 4.4 per cent from 4.8 per cent, citing the persistent weakness of its property sector.
The US Federal Reserve held interest rates steady at 5.25- 5.5% but released an updated “dot plot” for their future trajectory which proved more hawkish than previous expectations. Many policymakers anticipate one further 0.25% increase in the remainder of 2023, and the median expectations are for only 0.5% in rate cuts through calendar 2024, compared to double this level indicated in the last dot plot. Accompanying commentary confirmed that the Fed now sees the battle to return inflation to its 2% target stretching out to 2026. Annual inflation rose to 3.7% in August, above the expected 3.6%.
The US economy added 336,000 jobs in September, nearly double the anticipated 170,000. The unemployment rate was static at 3.8% in September. The labour market remains tight, adding leeway for the Federal Reserve to leave borrowing costs at restrictive levels for a prolonged period.
Consumers remain unsure about the economic outlook with consumer confidence edging up to 68.1 in September, but below the high of 71.6 in July. Retail sales in August increased 0.6%, beating the 0.2% forecast, with the annual rate increasing by 2.5%. The S&P Global Composite PMI fell to 50.1 in September, the fourth consecutive decline, suggesting broad stagnation in the private sector. The trade deficit narrowed to US$58.3 billion in August, better than the forecast US$62.3 deficit.
The European Central Bank raised interest rates to 4.5%, the 10th consecutive rise. This signals a possible end to policy tightening, as inflation has started to decline but is still expected to remain too high for too long.
Annual inflation fell to 4.3% in September, below the market consensus of 4.5%. The ECB forecasts average inflation at 5.6% in 2023 and 3.2% in 2024, both higher than previous estimates, primarily due to an elevated path for energy prices. PPI rose 0.6% in August, in line with market expectations, with the annual rate falling 11.5% as energy costs continue to fall.
Unemployment came in at 6.4% for August, matching the market forecast. Consumer confidence dropped to -17.8 in September, as households remain pessimistic about both their own and the wider economic outlook. Retail sales dropped 1.2% in August, compared with market expectations of -0.3%, with the annual rate down 2.1%, below the anticipated -1.2%. The Composite PMI rose to 47.1 in September, with a steep contraction in the manufacturing sector.
The Bank of England held rates at 5.25% in September as policymakers opted for a wait-and-see approach, with inflation and labour data suggesting the accumulated impacts of previous policy tightening might be taking effect.
Annual inflation eased to 6.7% in August, below the expected 7.0%, primarily due to the slowdown in food inflation. PPI fell by 0.4% in August, compared to market expectations of a 0.6% decline.
The unemployment rate increased to 4.3% in July, slightly above expectations, indicating that the labour market may be cooling off after months of unprecedented monetary policy tightening by the Bank of England.
Consumer confidence rose to -21 in September, above the expected -.27, amid growing optimism about the economy and easing pressures on household spending. Retail sales rose 0.4% in August, just below the market forecast of a 0.5% increase. Annual sales fell by 1.4%, more than the expected 1.2%.
The composite PMI index fell to 46.8 in September, driven by the continued contraction in manufacturing and a steep decline in the services sector.
The unemployment rate dropped to 5.2% in August, matching June’s 16 month low of 5.2%.
Annual inflation came in at 0.1% in August, below market expectations of 0.2%, with core inflation increasing 0.8%. Annual Retail sales grew 4.6% in August, exceeding market estimates of 3.0%.
Composite PMI fell to 50.9 in September, as new orders rose at a softer pace with manufacturers and service providers recording only marginal increases in sales.
This suggests the downturn in growth may be stabilising, but real estate remains a weak spot in the economy with property investment falling 8.8% in 2023.
The Bank of Japan maintained its key short-term interest rate at -0.1% and that of 10-year bond yields at around 0% in its September meeting by unanimous vote.
The annual inflation rate fell marginally in August to 3.2% just below the market forecast of 3.3%.
The unemployment rate was unchanged at 2.7% in August, above the market prediction of 2.6%.
The consumer confidence index dropped to 35.2 in September, with sentiment dropping across all components. Retail sales rose 0.1% in August, with the annual rate rising 7.0%, above the forecast 6.6%.
The composite PMI came in at 52.1 in September as services activity grew the least in eight months, while factory output fell at the fastest pace for three months.
The Australian dollar (AUD) appreciated over the month of September, closing 0.8% higher in trade weighted terms to 61.1, strengthening against the Pound Sterling (GBP), Euro (EUR) and the Japanese Yen (JPY) whilst depreciating against the US Dollar (USD).
Volatility continued throughout the month, primarily influenced by relative US strength driven by US Employment data, shifting US bond yields and messaging from the Fed’s September meeting. Additionally, the AUD was influenced by economic indicators from China such as a slump in Caixin China Services PMI.
Relative to the AUD, the USD led the pack in September, appreciating by 0.5%. Conversely, the GBP was the laggard of the month, depreciating in relative terms by 3.2% against the AUD. Year-on-year, the AUD remains behind the GBP and EUR by -8% and -6.8%, respectively, whilst ahead of the USD and JPY by 0.6% and 3.7%, respectively.
This article will help to ease some fears about market volatility and outline a behavioural approach to address emotional decision-making. Hopefully, this information will assuage fears that many investors have experienced over the past several months.
Like any other insurance policy, life insurance has many variations to meet different users’ needs. Thus, before choosing one, you must determine what you need in a life insurance policy.
