Inflation and interest rates remained points of interest across Q1, but towards the end of the quarter attention turned to the consequences of higher interest rates and what they might potentially break. Global growth appeared to be heading in the right direction, as rebounds in various purchasing managers’ indices and business surveys indicated positive sentiment.
Read MoreBank runs aren’t new, or even rare in the US. There have been over 450 bank failures since 2008, with 2018, 2021 and 2022 the only years in recent memory not to see a bank failure in the US. If one of the big banks in Australia went down, it would require a cataclysmic event. Something that would almost guarantee life as we knew it was over. Society wouldn’t be functioning and there would be much bigger problems than money.
Read MoreIt’s likely the case that most of our clients don’t love tax law as much as we do, which is fair enough. For those who are in a small business, you're probably busy hunting for opportunities to grow & do things you’re passionate about. So don’t worry, we’ll keep you across the changes in Australian tax laws that have significant impacts on SMEs.
Read MoreFor anyone with a passing interest in superannuation, the announcements made by the Federal Government over the last few days would have been interesting. Despite weeks of the Government stating they wanted to legislate the purpose of superannuation before considering any changes to tax concessions, last week they announced changes to superannuation designed to generate $2b in extra tax revenue every year.
Read MoreThis week we will begin an introduction to our team by starting right at the beginning. Schuh Group Accounting was the starting point for all things Schuh Group & this is its 47th year. We’d like our clients to know a little more about our team members, to understand who is dealing with their files & what they are all about. So let's begin with our founder, Cos Schuh.
Read MoreInterest rates and inflation were again major themes in Q4, as the US Federal Reserve delivered a hawkish message to round out the year following its December meeting. This capped off a year dominated by inflation. Inflation figures in many developed economies hit the highest levels since the early 80s. The high figures saw some very aggressive monetary policy in response, but there were signs that hawkish messages and aggressive rate moves may have started to have their intended effect.
Read MoreNow that 2023 is underway, it’s time to take stock of your budget, debt, and investments—and check them against your financial goals. These four steps can get you started.
Read MoreAnother year is coming to an end and on reflection, if 2022 has taught us anything, it is the power of perspective. As we all manage uncertainty, we should be continually reminded that it is our mindset, and our perspective that dictate where we go next.
Read MoreAnother week and it seems almost guaranteed that another fraud, failure, or disaster will emerge in the cryptocurrency world. The latest is the bankruptcy of FTX, a cryptocurrency exchange and trading business founded by Sam Bankman-Fried (SBF for short) and said to be the second or third largest in the space, depending on who you listen to. At last count, the $32 billion FTX was valued at,based on the last time it raised capital from investors (it was privately held) has gone up in smoke.
Read MoreVeteran Wall Street floor trader Art Cashin was 18 at the time of the Cuban Missile Crisis. Cashin’s father died in his last year of high school, so Cashin bypassed college and made the leap to Wall Street to help support his family. The education he received there was more about street smarts than book smarts.
Read MoreThere are few things that give us more professional satisfaction than being able to work with families and businesses over a long period of time, to help them growth their wealth. Many factors come into play for this: tax minimisation, correct structures, clients running successful businesses, then helping with investments for surplus cashflow. It’s an ongoing journey and one we’re privileged to be a part of.
Read MoreWas that a federal budget or a mid-year fiscal review? With all the usual fanfare and ceremony, Treasurer Jim Chalmers handed down the Labor Government’s first federal budget, and as we expected, it was a bit light-on. The themes running through the budget are fiscal responsibility and budget repair, cost of living relief and investments to strengthen Australia’s workforce.
Read MoreThe major theme from Q3 was the Central Bank resolve to dampen inflation. Unfortunately, the only tool in Central Bank arsenals are interest rate increases, something that continues to offend financial markets. There were large rate increases by the US Federal Reserve and Australia’s Reserve Bank in Q3, with the European Central Bank also joining the party with two large increases. Energy remained an issue, with the prospect of the war in Ukraine now becoming a longer-term battle, as Ukraine’s resistance and Russia’s inability to hold territory was in contrast to early expectations.
Read MoreEstate planning is often one of those topics that gets pushed onto the “I’ll get to it” list. And it’s no wonder this often happens – estate planning can be hard and knowing where to start is usually the most difficult step. To assist with this, we’ve come up with a broad list of questions that may prompt some thinking and family conversation.
Read MoreThe Australian economy has taken somewhat of a hit this year, but there are reasonable signs for optimism ahead.
Investors will always experience periods of uncertainty. It is one of the risks versus reward trade-offs. Remember that you never have to make uncomfortable decisions alone, and a diversified strategy will keep you on track for the long term, always bearing the most rewards.
Despite the ongoing noise from the news and financial markets, the fundamentals of investing will always remain the same. Here’s a short video by Dominique Schuh to remind you of some of the investment basics.
Read MoreAfter enjoying unprecedented interest rate reductions for over 11 years in Australia, the music stopped around 4 months ago, just before PM Albanese’s win. A 25 point (0.25%) official cash rate rise from the Reserve Bank was followed by a further 50 points in June, and yet another 0.5% rise in July and August. At the time of writing, the cash rate now sits at 1.85%. Rate rises not only affect borrowers, but all consumers of products and services from businesses with debt on their balance sheets or with directors who have rising personal home loan commitments.
Read MoreAnyone who has spoken to their parents or grandparents about the cost of living will be familiar with the idea that the relative value of money has changed over time. Most people are aware that prices for the same object gradually increase, although we often only hear about how this affects the property market. Unfortunately, the cost of living also goes up over time, and this is what inflation does.
Read MoreThe major theme from Q2 was the swift upward movement of interest rates to combat inflation, along with the implications for economies, sharemarkets and bond markets. Two of the three Central Banks that may have been considered laggards up to this point, the US Federal Reserve and Australia’s Reserve Bank, appeared to be making up for lost time in Q2. Both moved aggressively, with sharp increases in rates during the quarter. Energy also came into focus, as the war in Ukraine continued and the thinking turned to potential gas shortages in Europe.
Read MoreBy the end of your working life, your superannuation fund is likely to be one of the biggest (if not the biggest) assets you have. Because of this, it’s important that you carefully consider what you want to happen to the funds when you die. Selecting a nominated beneficiary, or beneficiaries, will ensure that your funds are distributed to those who financially depend on you, and those you care about most.
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