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YourAutumn 2024PERSONAL WEALTHWelcomeWe hope you had the opportunity tospend some time with your lovedones over the festive season, and areenjoying 2024 so far.On the economic front, while there isstill some talk about the possibility ofa global recession, the InternationalMonetary Fund (IMF) has stated thatrisks to global growth are broadlybalanced. Australia’s position hasbeen strengthened by recordpopulation growth through overseasmigration in 2023. This edition we explore some tips toenjoy your days in retirement, andvisit house-sitting as an opportunityto see the world, and save!We wish you and your loved ones arelaxing and refreshing Easter break.Happy reading!What’s the outlook for global growth in 2024?Global Gross Domestic Product (GDP) is projected togrow at 3.1% in 2024 and 3.2% in 2025. This is 0.2%higher than the October 2023 International MonetaryFund (IMF) forecast. The slightly improved outlook is dueto unexpected strength in the United States and severalemerging/developing economies. The forecast is belowthe historical (2000–19) average annual growth of 3.8%,largely due to elevated interest rates.How likely is a global recession?As the IMF stated in January, ‘with disinflation andsteady growth, the likelihood of a hard landing hasreceded, and risks to global growth are broadlybalanced.’Balancing growth &cautious marketsBalancing growth & cautious marketsRecord population growth- 27 million and countingEssential tips to enjoy yourdays in retirementHouse-sitting: See theworld, and saveContents134CONTINUED ON PAGE 2 Source: IMF and VisualCapitalist

The probability of a global recession in thecoming months has fallen. However, it will belargely dependent on activity in the US, asseveral European and Asian nations areexperiencing recessions or significantslowdowns. Slowing global manufacturinghas impacted exports, and it is becomingincreasingly likely that we will see a series ofrate cuts that will bolster growth. In theDecember quarter, the UK slid into atechnical recession, with the Bank of Englandlikely to cut rates this year, lagging behind theUS Federal Bank and the European CentralBank (ECB) rate cuts.Could surprising US inflation data delay USinterest rate cuts?We ended 2023 without the US recession thathad been widely predicted. The US economygrew by around 3.3% last year, but isexpected to slow to around 1.6% in 2024.Most market watchers now think the mostlikely outcome is a soft landing. However, asoft landing would be a rare outcome asmost Federal Bank tightening cycles result inhard landings. Recessions are very hard to predict. Onecontributor to the US avoiding a recession isthe volume of ongoing government stimulus.Another is the COVID-19 accumulated savingsbuffers, which have now largely depleted.The US Federal Reserve is projecting 3-4 ratecuts this year, in line with market predictionsof around a 0.88 percentage point drop, witha 90% chance of a US rate cut in June. Only afew months ago, several more rate cuts wereexpected in 2024. Markets are anticipatingthe Eurozone to ease in June, the Bank ofEngland in August, and the Reserve Bank ofAustralia (RBA) in September.China is a mixed bagChina is still feeling the effects of COVID-19lockdowns. The Chinese property market isstruggling, and China’s aging population hasimpacted productivity levels. Chinese equitymarkets are feeling the strain, down 40%since the highs of 2021. The magic 2% …sticky inflation andinterest ratesMost of the conversation and debate hascentred around inflation, globally and closerto home, and the likely impact this will haveon interest rate cuts. All eyes are on thatmagic 2% inflation rate central banks aim toachieve. This target may be tricky in Australiaas we have fairly sticky (persistent) service-based inflation. We are seeing some upwardpressure on wages across much of theCONTINUED FROM PAGE 1developed world.In Australia, there are several factors contributing to our stickyinflation. First and foremost is our immigration surge,stimulating the economy in 2023. In addition, there is alsosignificant stickiness in terms of utility prices and wageinflation in Australia. The RBA is likely to be one of the more timid of the centralbanks, as it started tightening later and didn’t raise rates ashigh, with expectations of rate cuts scaled back from nearly 3to less than 2 in 2024. It is likely that the RBA will wait until theUS and other major central banks have actually started cuttingrates.What does this mean for markets?We continue to view markets cautiously.2023 was a bit of a rollercoaster as markets attempted topredict interest rate peaks and the timing of rate cuts. Lowerbond yields and expected rate cuts resulted in strong rallies formost equity markets. The S&P 500 returned 25.5% in 2023,while Europe returned 15%. Australia lagged with a return of12.4%. Most of the rally in stocks during 2023 was due to Priceto Earnings (PE) ratings rather than from higher earnings.In the US, earnings are estimated to have increased around 4%in the 2023 calendar year, while in Australia, they are expectedto be down around 5% in the 23-24 Financial Year. Artificialintelligence (AI) was the big theme of the year, with the hope itwill boost productivity for a whole range of companies.The rally has resulted in equity valuations looking a bitexpensive. The Australian equity market (ASX 200) was tradingon a PE ratio of 16.4 times at 31 December 2023. This was 12%above the 20-year average of 14.6 times (JP Morgan). Anillustration of this is the big rally in bank stocks, with CBAtrading at just under 20 times this year’s earnings estimate. USequities are currently trading on a forward PE of 21.0x (S&P500 at 5,087, Refinitiv, 16 Feb 2024). Given the recent rally, weare fairly cautious about adding to growth assets right now. Wemay look at possibly reducing our allocation to long term fixedinterest rate bonds if bond yields fall, and instead allocate thefunds to high quality floating rate corporate bonds, as this maypresent a better risk/reward tradeoff. PAGE 2 AUTUMN 2024 Source: ABSAustralian annual population growth rate (percentage)

PAGE 3You’ve been working hard all your life and look forwardto retirement. Finally, you can enjoy the freedom andthe luxury of doing all the things you’ve always wantedto. But then reality hits, and you wonder, exactly howwill I spend my retirement days?Switching from busy working days to more free hourscan be liberating. But after some time, you feel theneed for more structure. Creating structure in yourdays is essential to living a more fulfilling retired life. Whilst it’s easy to fill up your time with passiveactivities like watching TV, surfing the internet, andrefreshing your Facebook page. You will likely want tospend your days doing more fulfilling activities. And astructured day can help you with that. It doesn’t meanthat you need to continue the same structure as yourworking days. You can enjoy your well-deserveddowntime in retirement and combine this with astructured day that fits your needs perfectly.When you retire, you don’t get 20 years of free time,instead, you get back some extra hours in a day thatyou don’t have to work anymore. And that’s why it’simportant to fill these hours with new and fun activitiesthat make you feel fulfilled at the end of yourretirement day. That’s why you worked hard all thoseyears to do what you love. Here is an example of whata typical retirement day could look like:Sample Daily Schedule7 am Wake up, drink water, stretch, or light exercise8 am Eat a healthy breakfast9 am Plan the day, set goals, and prioritize tasks10 am Attend a fitness class or go for a walkNoon Have lunch and take a break1 pm Work on personal projects or hobbies3 pm Run errands or attend appointments5 pm Relax, read a book, or watch TV6 pm Prepare and have dinner7 pm Spend time with family or friends9 pm Wind down, practice mindfulness, and sleep.Essential tips to enjoy your days in retirementWith record growth through overseas migration, Australiahas seen the largest annual increase in population in thenation’s history. Australia’s population has increased by624,100 in the 12 months to June 2023, equivalent to addingthe population of the entire state of Tasmania (572,800) in justone year, or one new Aussie every 50 seconds. This annualgrowth is 41% higher than the previous annual record when thepopulation increased by 442,500 in 2009[1]. This is a reallysignificant number in the context of a relatively smallpopulation, and our immigration surge stimulated oureconomy in 2023.Based on the latest annual growth rate of 2.4%, Australia’spopulation will reach 41 million by 2042, 16 million more thanthe forecast estimates made in Treasury’s IntergenerationalReport 2002. If the current growth persists, the next millionRecord population growth, 27 million and countingAUTUMN 2024could take less than two years, projected tobe achieved on the 25th of August 2025.[1] https://mccrindle.com.au/article/australias-population-reaches-27-million/Here are some ideas on structuring your day inretirement so you can make the most of it:Discover or rediscover your passion[1]Set goals for retirementCreate new routinesWake up at the same timeExercise regularlyEat a healthy dietKeep social in retirementManage your financesStay mentally activeTake breaksTake time for self-careGet a retirement hobby[2]Plan aheadMake a to-do listBreak your day into chunksLimit your screen time.Balancing an overscheduled agenda and not gettingbored is the trick to a happy retirement. You canenjoy your freedom, relax, and be spontaneouswhile having things to look forward to that makeyour life fun and interesting.[1]https://retirementtipsandtricks.com/how-to-find-your-passion-in-retirement/[2]https://retirementtipsandtricks.com/best-hobbies-in-retirement/

Disclaimer: The content in this newsletter is of a general nature only and are not to be taken as recommendations as they might be unsuited to your specificcircumstances. The contents herein do not take into account the investment objectives, financial situation or particular needs of any person and should not be used asthe basis for making any financial or other decisions. Your Lifespan adviser or other professional advisers should be consulted prior to acting on this information. Thisdisclaimer is intended to exclude any liability for loss as a result of acting on the information or opinions expressed.experiencing different cultures and lifestyles.Think it sounds like a win-win? Read on… Cons of house-sittingWhen considering house-sitting, be aware of thedownsides, such as: Commitment: house-sitting is not a carefreeholiday. You’re responsible for someone else’sproperty and pets. You’ll be expected to manageany problems that arise, including pet healthissues.Duration: assignments may range from a fewdays to a couple of months. If you can’t commit tothe entire stay, you must be upfront with thehomeowner before accepting the assignment. Calendar: assignments generally don’t connectseamlessly; ensure you have alternativeaccommodation between house-sits. Have a Plan B: assignments cancelled or changedat short notice can disrupt your travel plans.Flexibility, including alternative accommodation, isessential. Competition: popular locations can attractinterest from numerous house-sitters.Homeowners will select the house-sitter they feelis most suitable for their assignment. House-sitting, as a ticket to experiencing aninexpensive and varied life, speaks for itself. If you can work from home, love interacting withanimals and are keen to travel, how much could yousave towards your own home if you didn’t have rent orutilities bills? What if you chose a house-sit close to home? Think:no travel costs, continue working as normal, stayingclose to friends and family. How quickly would yoursavings grow, then? House-sitting may well be the financial opportunityyou’re seeking![1] www.trustedhousesitters.com [2] www.mindmyhouse.comSaving for a house? You know how it goes; cut back ondinners out and weekends away, and as for thatoverseas holiday – forget it! Getting a deposit togetherwhile paying rent feels like putting your life on hold. But does it have to?Imagine travelling the world without accommodationcosts. Now, imagine living in Amsterdam! OutbackQueensland! Upstate New York!Welcome to the world of house-sitting. In recent years,house-sitting has emerged as a cost-effective, andadventurous way of seeing the world while saving.It works like this: Join a reputable online platform such asTrustedHousesitters[1] or MindMyHouse[2]. 1.Complete the profile questionnaire about:2. who you are,a. your occupation,b. experience caring for animals,c. hobbies,d. references.e.Search the platform’s listings for opportunitieswhere and when you want to travel. Havingidentified a suitable match, you and thehomeowner communicate and agree on theterms.3.Make your way to the property and completethe house-sit. Homeowners provide a handbook ofemergency contacts, local shops, restaurants,activities, and much more. Some even include theuse of a car. In exchange, you mind the propertyand care for pets. You might also be asked toperform other tasks like watering gardens,collecting mail, etc.4.Pros of house-sittingBesides living free of rent and utilities costs, house-sitting offers benefits like:living in residential neighbourhoods and enjoyinglife as a local.pet companionship.flexibility of travel destinations and dates.House-sitting: See the world and save!