Each month we provide a wrap of the biggest issues in personal finance.
House prices continue to remain in the headlines in July as debate rages on how long the downturn is going to last. The royal commission continues on its merry way with superannuation about to hit the hot seat. Facebook had the largest single day drop in the history of the US stock market and closer to home a new super fund has launched.
Housing Still in the Headlines
The state of the Australia property market continues to dominate the headlines with the Reserve Bank of Australia, the major banks and economists all keeping their eyes closely on house prices and how far they might fall.
The question at this point is are we facing declines that might continue for multiple years or is this a short-term market adjustment? The answer very much depends on who you ask – some economists will tell you that prices will rebound next year while others believe we could be set for a few years of going backwards. There are even those who think it could be a good buying opportunity now.
Whichever side of the coin you fall on, it’s important to make sure your money is working hard for you today, so you are ready to buy your first (or next) property when the time comes. Plenty can help you do that.
Royal Commission Turns Spotlight on Super
Round 5 of the royal commission into banking and finance kicks off early next month with superannuation sector getting on the hot seat. The revelations out of the royal commission so far have been shocking and this isn’t expected to change with the chairman of the Australian Securities and Investment Commission (ASIC), James Shipton, hitting out at the sector calling some of their actions “indefensible”.
Figuring out the fees you are paying in super is hard – in fact, in late July a 232 page report was released on the ways to improve disclosing fees & costs in superannuation. Plenty can help analyse your existing superannuation arrangements and help get you into a lower cost fund.
Facebook Gets Crushed
Facebook had the largest single day drop in the history of the US stock market shedding over 20%, or US$120bn of value, in a single day. Lower forecast revenue and profits driven by data breaches and stricter privacy laws was the reason for the drop. The fall also erased $US16.6 billion of Mark Zuckerberg’s wealth tied to his ownership of company shares. Don’t feel too bad for him though – his stake is still worth a cool $US70.8 billion.
New Super Fund Launches
Zuper is the latest new entrant to the superannuation space following the recent launch of Raiz’s superannuation product. Zuper is more ethically minded than the other new entrants to the market – you can read all about them and the other new wave of superannuation funds here.
The information contained on this page is of a general nature and may not be appropriate for your personal circumstances. You should obtain personal financial advice before acting on this information.