Interest rates don’t jump from near zero to around 4% without consequences and when they do, investors start asking the same urgent question: what breaks first? We talk through the shockwaves from the Silicon Valley Bank deposit run and why governments move fast to protect confidence in the banking system. Then we bring it back home to Australia, where our banks are more tightly regulated and better capitalised, but we’re still tied to global markets and the mood of investors worldwide.

From there, we get practical. We tackle the classic dilemma of whether to pay down your mortgage or invest, especially when rates may be nearing a peak and share markets could stay bumpy for months. We also unpack why bond markets can look “deeply worried” even when equities seem oddly calm, and what that mismatch might mean if you’re nearing retirement and need a more defensive investing approach.

Listener questions take us into real-world choices: using salary sacrificing to manage tax brackets, putting an inheritance into a term deposit, and weighing bank shares with attractive yields against the certainty of a 4% to 4.5% term deposit rate. We also share a straightforward way for younger investors to build exposure to diversified ETFs by averaging in over time, rather than trying to pick the perfect day to buy.

If you found this helpful, subscribe so you don’t miss the next chat, share it with a mate who’s weighing up term deposits versus shares, and leave a review to help more Australians find the show.

DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg

Send us Fan Mail

Support the show