Paul's Insights

The COVID-19 pandemic is not just influencing our lives today. It could impact our finances for many years to come.

Investment markets may be unpredictable but one thing is for sure - each year seems to go by faster.

Over 11 million Australians hold investments of some sort outside their super. But this could be higher. There is still a significant minority of people who do not invest.

As if we didn't have enough to deal with right now, Australia's money watchdog ASIC is reporting a rise in investment scams during the COVID-19 pandemic.

It's time to dust off the calculator and start poring through receipts - tax time is around the corner, and that means a refund could soon be coming your way. The end of the financial year is also a time to take stock of your investment portfolio.

The COVID-19 pandemic has seen Australians hunker down their finances - spending less and tucking away more cash. That's seen our household savings rate jump from 3.5% (of income) in 2019, to 5.5% at present. But plenty of people could be missing out on easy ways to boost their bank balance.

The Reserve Bank's decision to keep the official cash rate on hold at 0.25% for June comes as no surprise. Our central bank has already made it clear that rates are likely to stay at record lows for some time - certainly until the economy picks up. That's great news for anyone with debt, though not so good if you rely on interest-bearing investments for income.

The idea of beating the market is always appealing, but is it possible?

Low interest rates are a big issue for anyone relying on income from bank deposits. But be wary of investments marketed as being 'like' term deposits - they can come with far more risk.

Since late February we've seen intense volatility on the Aussie sharemarket. This has driven a massive uptick in the number of people trying to make a quick buck on shares. But not many have succeeded.

COVID-19 has seen Australians deal with a lot of firsts - from social distancing and widespread workplace shutdowns to drive-thru health tests. The latest 'first' is negative oil prices.

Sharemarket falls can be especially challenging for retirees who don't have the benefit of ongoing super contributions to make up for negative returns. But your retirement savings may have weathered the recent market storms surprisingly well.

In response to the Coronavirus outbreak, the federal government has relaxed the rules around early access to super.

Sharemarkets have dished up a wild ride recently. But when prices fall it's a sure thing that bargain hunters will step in.

The coronavirus outbreak puts us firmly in extraordinary times. Mass lockdowns, social distancing and a widespread health threat are all new to us. But there is nothing new about volatility in investment markets.

There's never any shortage of macroeconomic commentary around investment markets. The trouble is, it's often confusing and a minefield of differing opinions. One expert says one thing; another says something very different.