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, …
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 …
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 …
Love and money? It’s not about control With Valentine’s Day around the corner, it’s a good time to explore shared ideas, and how you manage money as a twosome. Our approach to managing household finances can make a big difference to the health of a relationship. Thankfully, the old line about “I earn the money. She spends it” no longer has relevance in modern relationships. Today’s lifestyles, housing commitments and our career ambitions mean that …
What high household debt means for investors “High house-hold debt is Australia’s Achilles heel,” says AMP Capital Head of Investment Strategy and Economics and Chief Economist, Shane Oliver. “I’ve been thinking this for many years now and yet it seems to keep going higher.” Latest data from the Australian Bureau of Statistics puts total household liabilities at $2.466 trillion, or 199.7 percent of disposable income, putting it among the highest in the world. Australians have …
Correction time for shares? Key points The US share market is long overdue a decent correction. This now appears to be unfolding and may have further to go as higher inflation, a slightly more aggressive Fed and higher bond yields are factored in. This will impact most share markets including Australian shares. However, in the absence of an aggressive 1994 style back-up in bond yields or a US recession – neither of which we expect …
01 February 2018 Higher global inflation and higher bond yields – what’s the risk and implications for other assets? Key points Rising global growth and rising commodity prices indicate the risks to inflation are gradually moving to the upside. This is most acute in the US with the Fed likely to raise rates more than the market expects this year. This supports the view that the 35-year super cycle decline in bond yields is over. …
