Where’s all the share market volatility coming from? There is quite a lot of talk about volatility coming back to share markets all of a sudden, and with the talk there’s also bit of conjecture about where the volatility originates from. Some say it’s because interest rates and bond yields are beginning to rise; others will point to the end of quantitative easing in the United States and elsewhere for the bumpier ride. The return …
Spread your money, reduce risk Six out of ten Australians own investments outside of the family home and super. That’s good news. The only problem is that many people are still putting all their eggs in one, or just a few, baskets. The latest investor study by the Australian Securities Exchange (ASX) found 40% of investors admit they don’t have a diversified portfolio. Almost one in two investors think their portfolio is diverse, yet …
Time for women to celebrate March 8 marks International Women’s Day – a good time for women to embrace opportunities to achieve financial independence. After more than 30 years in the money business I’ve seen women make great strides with their personal finances. The gender pay gap is narrowing, lenders no longer shun single women when they apply for a home loan, and little by little, women are gaining a larger slice of the superannuation pie. …
Bitcoin – is it really for you? If I could sum up the contents of my junk emails over the last 12 months in a single word it would be: Bitcoin. I can’t tell you how many unsolicited invitations I’ve received to start trading bitcoin – you may have experienced the same thing. This alone is a concern but when heavy hitters like the International Monetary Fund (IMF) start calling out the risks of bitcoin, …
The pros and cons of investment bonds Also called insurance or growth bonds, investment bonds can be a tax-effective way to save for something big. If you’re saving for a particular goal, looking for an alternative to super, or want to ensure those who matter most are taken care of after you’re gone, investment bonds (also known as insurance or growth bonds) may have benefits while potentially reducing what you pay in tax. If you’re wondering how …
Downsizing should be a choice, not a wealth strategy Downsizing to a coastal town or regional hub can hold lifestyle appeal, but don’t bank on it as a strategy to fund your retirement. For many empty nesters, who may not have had the benefit of employer-paid super throughout their working life, the value of the family home can be seen as the jewel in the crown of a retirement funding strategy. After all, who cares …
Reverse mortgages – A solution to the asset rich, cash poor trap If you’re a home owner who falls into the “asset rich, cash poor” category, a reverse mortgage could hold appeal in retirement. Over the next 40 years an estimated seven million Australians are expected to start living off their super savings, but many simply won’t have enough to enjoy a comfortable lifestyle. The benefit of a reverse mortgage is that you can access money to …
What the rise of the $A means for global investors The recent rise of the Australian dollar has been surprising but not confounding for experts who believe the its natural level is closer to US70 cents. Indeed, it’s the weakness of the US dollar that’s pushed the Australian dollar higher relative to the benchmark currency in recent weeks even though US economic growth and a resurgent commodities segment had most market watchers expecting the Australian …
3 simple steps to create a budget Nearly two out of five Aussies believe budgeting is too much effort, but these quick tips could make it a simpler task. Around 75% of Aussies will be going into 2018 with no specified budget, according to a survey by AMP, which—reality check—is probably going to make achieving financial goals, whether it’s getting out of debt, going on that long-overdue holiday, or saving for something big, a little tricky. Despite …
Australian’s love affair with debt – how big is the risk? Key points Household debt levels in Australia are high compared to other countries and still rising. The rise is not as bad as it looks because its been matched by rising wealth and debt servicing problems are low. However, this could change as interest rates rise and if home prices fall sharply. The trigger for major problems remains hard to see but its worth …
