March 2023 Client Investment Update

from Neil Kendall - Managing Director of Tupicoffs, The Independent Financial Planners

The government announced superannuation changes affecting those with balances over $3 million, with implementation set for July 2025. Planning for these changes is advised and will be discussed by our planners.

Interest rates have risen for the 10th time, and have reached 3.6%. This is near the top of the interest rate cycle, and we expect better returns for cash and fixed interest investments.

Investors may expect better returns, while homebuyers may face challenges. Due to rising interest rates, the Australian residential market is likely to remain flat for some years. However, commercial and retail properties may benefit from the return to office trend.

Investment markets may experience volatility, but a slow upward progress is still expected. Additionally, cash and fixed interest options currently have annuity rates at nearly 5.5% providing appealing opportunities for low-risk investments.

We maintain a positive outlook for 2023: While volatility may persist, a more positive outlook is expected for investment returns in 2023 than was seen in 2022.

We would like to stress the importance of contingency planning: Uncertainties in government policies and legislative changes emphasize the need for contingency plans. Being prepared for potential scenarios is crucial in safely navigating the evolving financial landscape.