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Federal Budget and more – Weekly update May 11th

2021 Federal Budget. How high will the market go ? Book of the week

In this weeks video we look at what is in store for the #federalbudget​ , the current market conditions and #allordinaries​ and our book of the week is not #thesupersecret​ or #thetruthaboutmoney​ but The Boy the mole the fox and the horse.

“Hi and welcome to today’s update. Now today, very exciting, the federal budget is on TV tonight I’m sure you’ll all be glued to your TVs at 7:30PM. At this stage all the announcements are around healthcare and the pandemic budget but there could be a few surprises around super, investments and tax rates. We’re going to run a webinar on Friday, we’re sending an invite out on this email. If you can’t make it, we’ll record it, and we can send out all the updates. You don’t have to watch the budget, we’ll do all the watching and recording for you.

Now, another question I’ve been getting a lot this week is “What’s the market doing? It just keeps hitting highs, it’s hit a record high”. Really when we look at this in perspective, we really need to look at your time frame. So, if you’re investing now in the next 1 year, then with the market hitting a high, it certainly could come down, we don’t know exactly what will happen in markets. So, if your time frame is only a year, then you should be worried about that. But for most of you watching this hopefully your time frame is right out here to whatever your life expectancy is and let’s hope that’s a very long time.  That hopefully is 10/20/30 + years, and so, really what’s happening in today’s market shouldn’t be too much of a concern for you. But even if we look forwards, let’s assume the market has a return of 5%, 6%, 7% or 8% over the next 10-20 years then the ordinaries will be around 16,000/17,000 in 10 years’ time. At the moment it’s just about 7 and ½ as a points. So really our point is here: unless you have a really short time frame, don’t worry too much about what’s happening day to day in the markets keep a perspective on the long term.

Now, last but not least, is the book of the week. I’ve been reading my children my book of course, but they’re a bit bored of that. Another really good book here called ‘The Truth About Money’ from Ric Edelman, he’s got a good podcast, but my kids don’t like that one either. The one I read the other night to my daughter, and it’s a fantastic book, especially if you’ve got grandchildren, it’s called ‘The Boy, the Mole, the Fox and the Horse’, it’s by Charlie Mackesy. If I can put that on the email, it’s a fantastic read I really enjoyed it, I hope my daughter did as well.

Thanks for listening in, thanks.”

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