Forrest Private Wealth

Australia's inflation rate has fallen from its December peak, with annual price increases of 7 per cent for the year to March, down from 7.8 per cent. It will be interesting to see the RBAs next move with inflation commencing a downward trend.

The team and I wish you a safe, joyful, and inspired Christmas with a New Year full of new horizons, vitality, and optimism. We look forward to working with you in partnership through 2023. Merry Christmas.

Peter Stevens
Director & Financial Planner

In case you missed it, last week, on the 29th of March 2022, the Government handed down its 2022-23 Federal Budget. With the next Federal election to be held in May 2022, this was not your typical pre-election spending promises Budget. A likely recognition of the significant level of Government debt from previous and forecasted budgetary deficits and the Government’s desire to be seen as being fiscally responsible in the current economic environment.

The major focus of the Budget was on the cost of living. And whilst the forecast “cash splash” may eventuate for some (Social Security Card holders and low and middle-income earners), for many of our clients, halving the fuel excise for the next six months was as good as it got.

The infographic below provides a neat snapshot:

We have retired the word retirement!

Financial independence is what should drive the conversation. It should be at the heart of everything you do.

To retire is to withdraw, to back away. That’s not living your best life!

Adopting an investment philosophy targeting your long term spending needs, continually checking in to run the numbers to ensure you are on track, regularly deep dive, discuss and explore what financial independence looks like to you as your needs, wants and objectives evolve over time.

That drives you towards and beyond financial independence.

How can you help your children enter the property market?

Low interest rates, high rental occupancy and government stimulus have all helped in fuelling the property market. ANZ has just released forecasts suggesting that property prices across the capital cities could rise as much as 17% this calendar year.

So, can do you help your children, whilst also protecting yourself?

Read more here: https://forrestprivatewealth.com/helping-your-children-step-onto-the-property-ladder/

How long it will take to double your money in any investment?

The rule of 72 is a simple way to work out how long it will take an investment to double based on the return you are receiving. Simply divide 72 by the return and you’ll know roughly how long it will take.

If you’re investing in a term deposit returning 1.2%, you’ll double your money in about 60 years. However, if you can achieve a 20% return like Buffet is well known for, you’re doubling your money every 3.6 years!

72/20 = 3.6 years to double your money.

Importantly this shows return makes a big difference when it comes to growing wealth.

Are you maximising your return with your current strategy?

There are two ways to save more money; earn more, or spend less. We have rounded up a few easy money saving tips that you can implement to spend less and free up a bit more cash to invest this year.

Read more here: https://forrestprivatewealth.com/easy-money-saving-tips/

Big changes to super are here! Check out the main highlights below.

We are always up to date with such changes, so you don’t have to be. As always, please get in touch to discuss the changes further.

Want Day 1 Returns of Between 6% and 32%? Max Out Your Super Contributions Pre June 30!

Want Day 1 Returns of Between 6% and 32%? Max Out Your Super Contributions Pre June 30!

Why do many CEOs & high earners fail at accumulating wealth?

Higher income does not automatically translate to higher wealth creation.

Despite being in the top 1% of income earners, most executives don’t feel like they are building their own wealth. This is due in part to the lifestyle changes that come with the salary. There is also often a reliance on a company share plan to build personal wealth, rather than implementing a formal wealth building strategy. High earners need to shift that mindset and see bonuses and shares as the cream on top.

Learn more here: https://forrestprivatewealth.com/why-ceo-high-earners-fail-at-accumulating-wealth/

Treasurer Josh Frydenberg has released the Government’s second COVID Budget. Where COVID I was all about saving the economy, COVID II is all about continuing its momentum to secure its recovery.

The key initiatives, outcomes, and potential opportunities are summarised here: https://forrestprivatewealth.com/budget-2021/

You wouldn't climb Everest without a guide - why would you take a different approach to your finances?