Super in your 60s. It’s still not too late!
In not so recent news, Donald Trump has returned to the Oval Office and brought back some of his well-known policies… tariffs… on imports from countries like China, Canada, and Mexico and threats to include Australia more broadly. Although Australia is subject to a steel and aluminium tariff of 25%. But what does this mean for us here in Australia?
What Are Tariffs?
Apart from being President Trumps favourite word, think of tariffs as taxes on goods that are imported into a country. When the U.S. imposes tariffs on products from other countries, it makes those products more expensive for American consumers. The idea is to encourage people to buy locally-made goods instead.
The Ripple Effect
Although Australia isn’t directly targeted by these first round of tariffs, we can still feel the impact. Here’s how:
- Economic Uncertainty: Tariffs can create a lot of uncertainty in the global market. Businesses might hesitate to invest or expand due to the unpredictable nature of international trade policies. This uncertainty can affect our economy, making it harder for businesses to plan for the future.
- Decreased Demand: If the U.S. buys less from China due to tariffs, China might buy less from other countries, including Australia. This can lead to a decrease in demand for Australian-made goods and services, impacting our exports.
What Can We Do?
In short, not much. While we can’t get on the phone to Donald and ask him to stop making such a ruckus, your super, pension, and investment portfolios are always diversified and take into account your long and short-term goals. This means you don’t need to stress.
We have seen investment markets drop in February by approximately 4.5%, which isn’t pleasant to watch. However, thinking long-term, back in 2017 during President Trump’s first term in office, the ASX was sitting at approximately 5692 points, and today it stands at 8169 points. It’s best not to focus on the short term, as we only lose sleep over something that may very well be a blip on the radar. I remember writing about something similar in August 2024 and undoubtedly will write about it again in the future!
Important Updates
| FirstWrap to Edge Transfer | You will have received some communication on this already. All accounts currently with Colonial FirstWrap will be transferring to Edge. With this move, your administration fees should reduce and if not remain the same.
The transfer is expected to happen over the easter weekend 18-21 of April. As a result, some pension payments will be made early to account for this transition. |
| Technology | We are still experimenting with AI to assist in compliance note-taking.
Before your review, we will check with you to ensure you are comfortable with this process. If you agree, we will proceed with the recording. Rest assured, these recordings are not stored in the cloud and are only used internally to generate accurate notes. |
| New Clients | Just another general reminder that Jayden is handling all new client referrals. We are charging a cost for initial appointments at $550 as it is no longer economical to offer these complimentary. However, please ensure that your friends tell us they have been referred by you as we discount this cost down to $440. |
| Holidays | Kathy has just come back from 2 weeks of annual leave and Emma will be looking to take a break in April to align with when her kids will be on School Holidays. |