All Ords Report 07 October 2016

When academics and professionals, with salaries higher than the community average, are being told that they are likely to rely on the age pension, we have to sit up and take notice.

Data released by UniSuper this year indicates that approximately one third of its members are likely to rely heavily on the age pension in retirement, and yet the majority of the members have above average super balances, with many having contributions above 12 per cent.

Given this, it’s not just the low income earners that are going to be dependent on government payments, which is mistakenly what a lot of people believe.
The problem is, there’s still this ‘I’ll be right’ attitude to retirement in Australia. And many nearing retirement think it’s too late to do anything about it, which is just untrue.

Of those people I’ve met who are actively looking to be different, the average age is between forty-five and fifty-five. The youngest are of teenage years, and the eldest is in his eighties. So age is no excuse. However, I meet forty-five year olds who say they are too old to learn how to invest.

You don’t need to be a professional on a large income to be wealthy, however, you have to make a few smart decisions, including learning how to invest and what to invest in; with property and shares being the most popular investments.

Clearly, the sooner you do this the better. However, remember that age is not a barrier. Many before you have proven that to be the case.

The opportunity to profit from shares is accessible to everyone, regardless of age, current share market knowledge, and background. Men and women trade the share market for income and capital growth. What is really exciting is that more and more I see women taking up trading to generate another stream of income, which can be made at home.

Listen to some of the women profiled on Channel 9 and 10 who have studied our courses.

What do we expect in the market?

The Australian share market closed up last week at 5525 points. This week the All Ordinaries Index continued higher, however, gains on the US dollar saw a sell off on gold and this created volatility on global markets. The Australian share market pulled back yesterday to close at 5537 points and was trading at around 5562 points at the time of writing today.

Interestingly, reports that total retail sales are up 2.8% year on year and 0.4% for the month, beat expectations. Big names in the retail space have done well however the strongest areas for the month were Department Stores, Hardware, Takeaway Food, Cafes, and Furniture.

Reflecting on what occurred last week, the rise was largely attributed to news that OPEC had made a decision to create an agreement to cut oil production. This sent oil and energy stocks higher. Some Energy stocks like Santos (STO) and Oil Search (OSH), which had previously been sold off heavily, welcomed the news. These shares jumped out of the blocks at the market open on Thursday. The short sellers would have scrambled to cover positions that were in profit from the recent falls.

Also, we saw the US market move higher on solid US data, including a rise in consumer confidence, and a win by Hillary Clinton in the big debate with Donald Trump.

Dale Gillham is Chief Analyst at Wealth Within