Everyone is familiar with the ‘glass ceiling’, and the disparity between the number of men and women in the top income bracket. This situation is said to exist in some countries to a far greater extent than others. So what is the scenario in Australia?
Well,it’s been an interesting week on the world frontier: the tiny island of Cyprus nearly challenged the religious trust that your money is safe in the bank. Freezing assets in the bank one day and then returning them missing 10% could have caused a catastrophe across Europe. The PIIGS (Portugal, Ireland, Italy, Greece and Spain) will all require further bailouts in the future, and if the residents of those nations believe the next bailout will mean a tax on their savings then a bank run could ensue across Europe. However, the Cypriot parliament voted no to the tax and have put forward an alternative to guarantee deposits under $100,000 and amalgamate Laiki Bank with the Bank of Cyprus. The details still need to be confirmed, but it looks like for now Cyprus won’t default and will receive the much needed $17 billion bailout.
We’ve called Australia’s shift to SMSFs a revolution – and for good reason. It is currently the defining topic of the financial industry and hundreds of Australians a day are taking control of their future by setting up an SMSF.
How will Australia’s cities look in the future? Will it be a Pleasantville-like oasis of low-rise housing where people will commute to work with their electric cars and everyone will own their own block of land? Or will we be a city of high rises like something out of the movie The Fifth Element. Looking at current data it seems like we are moving towards a milder form of a high-rise city where the majority of the population will live in low–medium-rise apartments.
If the RBA cuts the official cash rate today, as many economists predict they will (although this often counts for nothing), it will be to an all-time low of 3%. These pre-emptive cuts are due to forecasts of global doom and softer domestic growth and investment.
Poor Gen X; they are usually the least represented generation, Gen Y and the baby boomers are always hogging the limelight. If it isn’t a crazy weekend tainted by Gen Y doing something silly on the social media scene or a baby boomer giving their opinion of how out of control Gen Y are, Gen X are usually shafted into the corner because they don’t create sensationalist headlines that sell advertising space for the media. As much as the above scenario is a generalisation, the same poor representation of Gen X on the retirement scene is usually overshadowed by their parents, The baby boomers. When one thinks of retirement they recall marketing material depicting scenes of baby boomer couples walking along a beach enjoying their retirement or of one retiree going up the escalator and another going down to represent the returns on their super.
At the recent business partner briefing we spoke about the world of the Self Managed Super Fund. In short, it’s not just the new super environment; we see it as a financial revolution. This is because on average in the past financial year there have been over 184 Australians PER DAY starting an SMSF, double the number in 2010. There is no other sector of the financial industry that is experiencing this exponential growth, and we expect this trend to continue.