Economic conditions ripe for personal finance review


The start of a new financial year and two rate cuts from the Reserve Bank of Australia make this the ideal time for Australians to review their finances, according to Dixon Advisory.
Around 10 million low and middle income earners will receive a tax refund of up to $1,080 over the next few months. The two rate cuts would also mean people could save $1,000 per annum on a $400,000 mortgage, although making the same payment at the lower interest rate would help them get rid of a mortgage quicker.
Nerida Cole, head of advice at Dixon Advisory, had three suggestions of steps people could take to review their finances.
These were: Paying down high cost debt such as credit cards first, then the mortgage; looking at long term investments including super and finally, reviewing the rules of super and if they could be boosting contributions.
She said: “Keeping on top of debt is important and making sure you are paying down high interest loans and credit cards as fast as possible is a key move.
“For younger super fund members, taking a more growth focused approach is usually the way to go because they have more time on their side.
“We have an ageing and growing population – that makes funding retirement one of the biggest ongoing challenges we face as a nation.”
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.