The ‘bucket strategy’ has been a common way to help deal with retirement income risk. It works by managing the selling of assets at retirement, balancing the need for steady income and capital growth.
Looking ahead, there has been a recovery in business conditions and confidence. Conversely, retail sales weakened in late September as households reduced their spending with the tapering of the JobKeeper program from October onwards.
We are operating in a world where interest rates are now very low both overseas and here in Australia; a time of uncertainty has arisen. Therefore, in this current climate, your assets should be sheltered to ensure financial security.
The world began 2020 much as it ended in 2019. There was growing optimism in the global economy with expectations that the US and China had ‘buried the hatchet’ on trade disputes and the United Kingdom would be exiting the European Union (EU) in a less disruptive fashion. This optimism lasted until February.
In Australia, economic growth in the September 2019 quarter remained weak with annual growth at 1.7% in the Autumn 2020 economic outlook.
The trade war between the United States and China continued during the September 2019 quarter as the US imposed new tariffs on goods imported from China.
The recent Federal election will have a major influence on the economy as will government spending in the future. Read why.
What happened to the share market in 2018? Globally, share markets were down during the December 2018 quarter with the Australian share market falling 8.4% and the global share market index dropping 11.1%.
Economic outlook Spring 2018 International share markets experienced major fluctuations during the June quarter owing to ongoing trade-tariff tensions. The Australian economy grew strongly, driven by strong Government spending on infrastructure and increased demand for Australian mining exports. International shares International shares swung between strength… Read More >>
Investing in an Australian real estate investment trust (AREIT) is supposed to be boring. The aim is to receive stable distributions that turn up like clockwork, with low share price volatility to match the predictable returns. Over the past two years the sector has delivered… Read More >>