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. …
Understanding different types of retirement pensions We explain the difference between the government’s Age Pension, a transition to retirement pension, and an account-based pension. If you’ve heard the term ‘pension’ being thrown around, you may have picked up that there are many types of pensions available in Australia. We explain the difference between three commonly used pensions, including the government’s Age Pension, a transition to retirement pension, and an account-based (or allocated) pension, so you’re …
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 …
Volatility: 10 key messages for investors Financial markets can be subject to periods of event-related volatility during which investor confidence can be significantly undermined. Here, Fidelity provides 10 key messages to help investors steer their portfolios through volatile times. 1. Volatility is a normal part of long-term investing From time to time, there is inevitably volatility in stock markets as investors react nervously to changes in the economic, political and corporate environment. Above all else, …
The top 10 lifestyle costs draining Aussies of cash Six out of the top ten categories relate to just two things. Can you guess what they are, and could you be cutting back? As a nation, Australians aged 18 and over spent approximately $145 billion on lifestyle costs last year, with the average spend per person around $7,800, according to research by comparison site Mozo1. While clothing and footwear took out the number one spot …
