Is insurance inside super the way to go? We take a look at your options.
Diversification is an investment strategy that lowers your portfolio's risk and helps you get more stable returns. Spread your investments and lower your risk.
Setting aside time to discuss money matters each month helps you build your financial health and better understand your finances. Discover these useful tips for starting a conversation about money, either individually, with your partner or with other family members.
When it comes to choosing a travel destination follow your heart and explore your passions.
Here’s a quick overview of how salary sacrificing works to potentially reduce your taxable income, pay less tax and save money for retirement.
Tackling financial goals together can help a couple understand each other’s spending habits and develop good saving skills to create the kind of future that works for you both.
Check if and how you can contribute money from the sale of your home into your super fund via a downsizing contribution.
Find out how you may be able to reduce your working hours without reducing your income.
The death of a family member can be even more traumatic if there is fighting over the will. Here are some tips to give you peace of mind.
A new research report highlights a changing outlook on financial advice, stressing that it encompasses more than just money. It also anticipates a surge in fresh prospects for financial advisers.
Investment returns for Australians with a financial adviser are 5.9 per cent better off than non-advised investors, according to research from investment manager Russell Investments.
Giving Australians better access to high-quality and more affordable financial advice is imperative.
Ensuring you’ve structured your finances tax-effectively is always a concern, but with new tax rules for super on the horizon, many people with large balances are considering alternative vehicles to save for retirement.
Many Australians now technically qualify to be certified as a sophisticated investor, but what are the benefits and risks?
We all want to live healthier lives and the rise in apps and wearable devices like smart watches and fitness trackers that help us to monitor various aspects of our wellbeing show that we are taking an interest in our health via data.
When looking into the financial elements associated with planning for aged care, there is a lot of information out there which can be confusing. With this in mind, it's important to have your questions answered by those who are experts in finance specialising in the aged care industry. These experts will look at your unique situation and advise you on your options. Things to consider may be superannuation, pension, existing assets and liabilities, banking, investments as well as Centrelink benefits which you may be eligible to receive.
The thought of retirement is an enticing one for many of us. Imagine throwing off the shackles of the workforce and being able to do whatever you want, whenever you want. But why wait until you are retired to do the things you love?
The rising cost of living is grabbing all the attention right now as people struggle to pay the increasing prices. But in the meantime, our collective wealth has been growing steadily and is being transferred to the next generation at increasing rates.
The ranks of young Australian investors have swelled over the last two years. And many have very different investment objectives and strategies to older investors.
If you are saving for a long-term goal, it can feel like you have to miss out on things such as travel to keep your savings on track. That’s not necessarily the case, it is possible to have a fantastic holiday without breaking the bank or derailing your savings plans.
As our superannuation balances grow larger, it makes more sense than ever to keep track of the many rules changes that have recently happened or are coming up soon.
There's a common misperception that in order to start investing, you need a large initial sum and lots of time. Here's why that's a myth.
Life is pretty frantic, and it is common to feel like it’s a struggle to keep up the pace. In fact, feeling exhausted is so common that it has its own acronym, TATT, which stands for "tired all the time".
The concept of retirement is changing, with fewer people working towards a final retirement date and then clocking off for good. Instead, those who have the flexibility to choose are often transitioning out of the workforce over several years, or even returning after a break. Whether you simply want to wind back your working hours to explore other interests, or don’t want to cut your ties with work completely, to make it work you need to plan.
As any small business owner knows, entrepreneurship can be all-consuming. Juggling jobs and wearing multiple hats can soon leave business owners with little time for anything else. But ignoring your mental health and wellbeing comes at a cost and that cost is burnout, writes results coach and change facilitator Sue Giacobbe.
The start of a new financial year is the perfect time to get your financial affairs in order. Whether it's tidying up your paperwork, assessing your portfolio or dealing with outstanding issues, there are plenty of practical actions you can take.
There are limits on how much you can pay into your super fund each financial year without having to pay extra tax. These limits are called 'contribution caps'.
These days, most people hold some form of life insurance in their super account. While this is a welcome safety net, the level of cover held this way is often inadequate.
Superannuation has dominated recent headlines, with proposed changes announced by Treasurer Jim Chalmers. While the details of these changes still need to be released, it’s worthwhile turning our focus to superannuation balances as we approach the end of financial year.
As we age, we may require additional support to maintain our independence and quality of life. For many seniors, this can involve accessing home care services that help with daily tasks like cooking, cleaning, and personal care. One way to access more comprehensive home care services is by applying for a higher level home care package. In this article, we will discuss the steps involved in applying for a higher level home care package.
What exactly does responsible investment mean? Is there trade-off between ESG considerations (investing responsibly) and investment returns? Read on to find out more.
It’s no secret that scammers are getting more sophisticated. As this is an ever-evolving space, scammers are constantly developing new ways to part you with your hard-earned cash - and they cast their net wide.
How do you feel when you enter your front door? Is your home a welcoming sanctuary or just a place to store your stuff and lay your head? If it’s more the latter, there are heaps of things you can do to make your home feel like a place of happiness and comfort.
Income protection insurance pays part of your lost income if you're unable to work because of a disability caused by illness or injury. It can help pay the bills so you can focus on getting better.
Refinancing can be a great way to save money if you believe you are paying too much for your loan, but there is more to it than just finding a loan with a lower interest rate and making the change. Before making the switch, ensure the savings you could make outweigh the fees involved. Here are the different exit costs to consider:
Here are some tips that can help you build confidence in your investing approach, no matter what the markets are doing.
Australians have seen more than their share of tough times over the past few years and there are many stories of how individuals and communities responded to natural disasters and the pandemic with empathy and valuable assistance.
Just like your car needs a periodic service to stay in tune, here's why you should rebalance your portfolio from time to time.
Here is a practical approach to creating a retirement plan that will help enable financial peace of mind.
There’s a lot of investment guidance out there. Too much can be overwhelming. So, how can you cut through the noise and find what you need? To help you out, we’ve put together a cut out and keep 8-step guide to successful investing.
Holidays should be blissful periods where you can do exactly what you want - usually involving relaxing and enjoying time with loved ones. However, it’s not uncommon to come back even more tense than ever and feeling like you need another vacation after what should have been a lovely break.
How much money you're able to invest each year is one of the biggest factors in achieving your financial goals. And the longer you're invested, the more time your money has to compound and grow.
You don't have to pay yourself super, but when you retire, you might be glad you did. You can make regular or lump sum payments, can usually claim a tax deduction on contributions, and may be able to save tax.
What is volatility? Volatility is an investment term that describes when a market or security experiences periods of unpredictable, and sometimes sharp, price movements. People often think about volatility only when prices fall, however volatility can also refer to sudden price rises too.
The excitement of heading towards retirement and a new stage of life can be tinged with concern over how to manage finances. For many people, seniors’ concession cards are a good way to help make ends meet.
Most super funds offer life, total and permanent disability (TPD) and income protection insurance for their members.
Retirement is often a massive life change for the majority of people who experience it. Most of us will have mixed emotions around the end of our working life and the beginning of our 'second half'. For some it will be a relief, and something they have long planned for and are looking forward to, but for others it will be a source of anxiety. This anxiety could be due to many factors including, but not limited to, concerns around the potential for running out of money, feelings associated with a lack of confidence or a lack of control and other factors we will discuss here.
With the cost of living on the rise, it’s more important than ever to have a financial safety net that protects you and your family in case the unexpected happens.
Given the inherent volatility of security prices in capital markets, it is useful to remind ourselves of strategies that investors can utilise to meet their investment goals. This is important when constructing and positioning a diversified portfolio of assets, a challenge that most financial advisers face daily. Reminding ourselves of the fundamentals of portfolio construction can help investors position portfolios appropriately in times of crisis and volatility.
Find out what ESG investing is and how it works. So you can choose investments that match your goals and values.
The calendar turns over to a fresh, brand new year, full of promise, so how do we keep those promises we make to ourselves and get to the end of the year with our resolutions intact and goals realised?
You may have heard it said, "No risk, no reward." But did you know that time can actually decrease your risk while increasing your reward?
An understanding of the risk and return characteristics of various asset classes is vital to the portfolio construction process.
Retirement means starting a new chapter of your life, one that gives you the freedom to create your own story, as you decide exactly how you want to spend your time. While retirement may not be part of your immediate plans, there are advantages to giving some thought as to what retirement looks like for you and how to best position yourself, well before you leave the workforce behind.
We all approach decision making in our own way, making a multitude of decisions every day: ‘Should I hit snooze again on the alarm?,’ 'Do I take the train to work, or do I drive,’ ‘What should we have for dinner?’
Knowing how your mind works can help you avoid the more obvious traps many investors fall into.
With interest rates on the rise and investment returns increasingly volatile, Australians with cash to spare may be wondering how to make the most of it. If you have a mortgage, should you make extra repayments or would you be better off in the long run boosting your super?
The first step to building a sound investment portfolio is to know why you’re investing. Setting measurable investment goals gives investors clarity and direction, and prevents them from falling into common investment traps like chasing unrealistic market returns or being overly influenced by transitory factors like product fads or short term performance.
With the price of iceberg lettuce peaking at an insane $12, and inflation not letting up any time soon, it’s a good time to review what you can do to reduce your food spend.
With interest rates increasing after a lengthy period of historical lows, it’s a good time to think about how your money is working for you and whether your investing style and strategy is still in line with your goals.
A good estate plan will help make sure your wishes are carried out when you die. It can also help if you become unable to make your own decisions.
A capital gain or loss is the difference between what you paid for an asset and what you sold it for. This takes into account any incidental costs on the purchase and sale. So, if you sell an asset for more than you paid for it, that’s a capital gain. And if you sell it for less, that is considered a capital loss.
Staying the course, and not being distracted by short-term market events, is just as important in retirement as it is at any other time.
If you’d invested $10,000 into the whole Australian share market back in 2002, your initial investment amount would have grown to almost $50,000 by 30 June 2022.
How much tax you pay on retirement income depends on your age and the type of income stream.
Salary sacrifice is an arrangement with your employer to forego part of your salary or wages in return for your employer providing benefits of a similar value.
With markets falling and inflation ramping up, investors might feel they need to ‘do something’ to avoid further losses. However, when it comes to investing, taking action in response to market turmoil may derail a sound investment strategy.
While 2021-2022 may not have been a stellar year for the majority of investors, it's worth remembering that the worst performing asset class one year can be the best the next, and vice versa. That's why successful investing benefits from having a good balance.
Asset allocation is the biggest determinant of investment returns. Here's why taking the time to get it right matters.
As baby boomers shift into retirement, Australia is on the brink of the nation’s biggest ever intergenerational wealth transfer. Yet estate or inheritance planning is rarely discussed by families.
While the new financial year is a line in the sand that is important from a taxation perspective, it can also be a useful point to take a step back and take stock of the bigger picture – your personal and professional goals.
New rules that came into force on July 1 will create opportunities for older Australians to boost their retirement savings and younger Australians to build a home deposit, all within the tax-efficient superannuation system.
This time of year, people’s thoughts start turning to their tax return, but it can also be a good time to set things up so you don’t pay more tax than required next financial year.
A 'transition to retirement' (TTR) strategy lets you access some of your super and keep working. Setting this up can be complicated, so contact your super fund or financial adviser for advice.
As the end of the financial year approaches, now is a good time to check your super and see what you could do to boost your retirement nest egg. What’s more, you could potentially reduce your tax bill at the same time.
A couple of my colleagues at InvestSmart have had their bank accounts hacked this month and money was stolen. With one of them, the thieves simply rang Telstra, pretended to be him and asked for a new password, which worked! The other was a complicated scam involving placing a call forward on the phone somehow, so that when the bank rang to confirm his identity, the call went to the crooks, who took it from there. As a result, a lot of work has been going on in our company about cyber security, how to protect yourself, and what to do if you’ve been hacked. I thought it would be worthwhile passing on the lessons to you – some of them are obvious, that you probably already know and do, but some may be new. The important thing to note is that this stuff is not going away, and is only getting worse.
Scams are on the rise and scammers are becoming even more sophisticated in the methods they employ to part you with your cash. Here’s what to watch out for.
In volatile market conditions, not doing anything at all - staying the course - is generally the best investment strategy overall.
What exactly is a share (or stock), and how do they work? Read on to find out the different ways of classifying companies and their shares.
Couples who take a joint approach to their super can potentially increase their retirement income and reduce tax along the way.
It seems like June 30 rolls around quicker every year, so why wait until the last minute to get your personal finances in order?
If you're retired or approaching retirement, and dreading the next piece of news that may cause your portfolio to dip, then it might be time to revisit your asset allocation.
In times of market volatility, it's useful to remember a few grounding investment principles that can get you through the good and the not-so-good.
When markets are volatile as they are now, it’s tempting to sell in a panic. But that can be a big mistake.
For the second year running, the pandemic was the focus for policy makers, markets, businesses, and individuals alike.
Lenders use your credit score (or credit rating) to decide whether to give you credit or lend you money. Knowing this can help you negotiate better deals, or understand why a lender rejected you. Your credit score is based on personal and financial information about you that's kept in your credit report.
It seems like headlines these days keep announcing markets have hit yet another all-time high. And while it's worth celebrating good days like this, not every day is going to be the same. When it comes to investing, the biggest elephant in the room is the word "uncertainty." No one can say for certain what the markets will do, and there's no crystal ball that'll show you the outcome of any situation. Instead, investors fare best when they focus on the factors they can control.
We often don’t like to think of our mortality, but it’s a fact of life. The best way to take care of your business, family and loved ones in the event that you are no longer here is by putting in place a solid plan, writes Melisa Sloan, author of Legacy, and an Estate Planning Lawyer. So whilst it can be a confronting thought, by taking the time to put a plan in place ensures that you can leave the legacy that you intended.
There's a change coming soon that means to comply with 'choice of fund' rules you might need to do something extra when a new employee starts to work for you.
Your super fund invests your money for you. Most funds let you choose from a range of investment options, from conservative to growth. It's worth taking the time to check your options and decide what's right for you. The options you choose can make a big difference to how your super grows. You can find out about your fund's investment options by checking its website or product disclosure statement (PDS). Most funds allow you to change your super investment options online.
Choosing the right super fund could boost your super savings in the
By Tony Kaye, Senior Personal Finance Writer, Vanguard Australia
As the new financial year gets underway, there are some big changes to superannuation that could increase your retirement savings.
Understanding exactly how much of what you spend is tax deductible is crucial for understanding what you can spend on your business (and when).
It’s been a trying year for business owners, with a lot to process before the end of the financial year
Tax time could be a bit different this year, so be sure to make the most of planning opportunities before the end of the financial year.
Certain superannuation pensions and annuities are subject to rules that determine minimum and maximum amounts to be paid in a financial year. Once you start a pension or annuity on or after 1 July 2007, a minimum amount is required to be paid each year. There is no maximum amount other than the balance of your super account, unless it is a transition to retirement pension which is not in the retirement phase, in which case the maximum amount is 10% of the account balance
The end of the financial year is fast approaching and there’s a great way to help you save on tax while boosting your super. By making an after-tax contribution to your superannuation before the end of the financial year, you could boost your retirement savings for the future – and claim a tax deduction now.¹
Want to help boost your retirement savings while potentially saving on tax? Here are five smart super strategies to consider before the end of the financial year.
Understanding how super is invested may help to explain why events like Coronavirus impact account balances, if at all.
The coronavirus is dominating the news and causing havoc on the share markets around the world. Many people may be tired of reading, and hearing about it. So apologies for sharing my two pence.
For many people, their biggest priority is to pay off their home loan as quickly as possible. It can provide a sense of freedom to actively reduce the amount you owe the bank, and know you own a bigger portion of your home. Here’s an example of how one couple took a different approach to achieve this goal sooner.
Superannuation is a key pillar of Australian life, built up over the years through compulsory salary deductions and designed to support you in retirement.
One of the most effective means of reducing the different types of risk is to diversify your portfolio.
Australians are taking unhealthy risks on second opinions relating to an illness or medical condition, according to research conducted by MLC.
Industry funds offer two main benefits for their members, being reduced administration fees on their investments and access to discounted premiums on the insurance cover inside the fund.
A MANAGED fund does not exactly inspire people. In the excitement stakes, it ranks right up there with income tax legislation and public service reform.
The market dropped 11 per cent in 2011, capping off its worst four years on a rolling average – which is to say comparing each month with its equivalent for the past four years – since the Depression. So stick to cash, perhaps buy some government bonds since they’re on a roll, stay away from shares because enough is enough and, for a bit of a thrill, maybe buy some gold, which has been a star, and you’ll be right?
The world’s best investors have developed a number of highly successful investment strategies in decades past. Some of these investors started out with as little as $100, and today boast fortunes worth billions.
For just the second time in 30 years the Australian sharemarket is poised to deliver its second consecutive calendar year of negative returns. In what will be 12 months to forget for most investors, the combination of European debt woes and worries about the Chinese and US economies, along with the prospect of another bout of instability in the global banking system, have pushed the S&P/ASX 200 Index down 13.83 per cent so far this year.
It’s that time of year again, when Financial Review DealBook gazes into the crystal balls of analysts, investors, and the blogosphere, to foretell where the next financial markets catastrophe may lie.
Normally MYEFO is a document the Government releases as an update on how the economy and the Federal Budget are tracking. However on Tuesday the Treasurer released what was effectively a mini-Budget which included a number of important new saving measures with the intention of keeping the Budget on track for a surplus by 2013/14.
With sharemarkets rapidly moving up and down, many people are wondering just how safe their super is.
Investors of all ages are, understandably, asking questions about how long market uncertainty will last and the effect it will have on their superannuation and investments. It’s a common reaction in times like these to consider more defensive assets such as cash.
The Australian Taxation Office (ATO) is announcing special arrangements this year due to COVID-19 to make it easier for people to claim deductions for working from home. The new arrangement will allow people to claim a rate of 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.