Money Magazine April 2017

“The big money is not in the buying and selling, but in the waiting.” Charlie Munger, American investor, businessman, and philanthropist I catch a lot of Ubers so when I read that one in 10 drivers are over 60 I wasn’t that surprised. Most of the drivers I talk to are in semi-retirement and looking for a way to supplement their income. I don’t imagine you can do much on $23,000 a year – that’s what you’d get if you’re single and on the pension. For those with some cash stashed away there’s not much to gain by saving in a bank account. At most you’ll earn 2.5% for locking away $50,000 for 12 months. So you either have to dial up the risk (see our 10-point plan for uncertain…

Danger in high returns Paul Clitheroe’s comment that “Promises of a ridiculously high return should set off an alarm bell” (March issue) is timely. There are thousands of retirees who are desperate to invest cash into higher-returning interest-bearing investments. The banks are increasing lending rates at the same time as decreasing borrowing rates. It is now impossible to negotiate an interest rate higher when rolling over a deposit. Recently I rolled over a deposit: previously the interest rate was 3.1%, now the best that could be negotiated was 2.7% – and you get to pay tax on the interest. My experience is that unless you argue with the banks you get their “board rate” – the offers on boards outside branches. It is possible to get a few more points…

Travellers can save on health premiums A little-known fact that probably is not used by most people when paying private health insurance is that you don’t have to pay for the period when you are away overseas. Even if you have prepaid your premiums, you can call your health insurer and ask for a suspension for the time you are out of Australia. I did this last year when I got my cover suspended for a month while I was abroad and thus saved 8.35% of my annual premium ($665) without the status of my cover being affected in any way on my return. With ever-increasing premiums each year, this certainly helps in easing the burden of paying for health cover, besides other strategies. Walter, Vic…

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MARK STORY Mark is director of Prime Strategy Media and has been a business and finance journalist for more than 15 years. Mark says: “Money is only a concept, and being rich isn’t a destination; it’s all about the journey. Better to have a ‘rich mentality’ and be generous of spirit rather than striving to be materially rich for the sake of it.” SUSAN HELY Susan has been a finance journalist for 30 years and has been a senior writer at Money for 10. Susan says: “Get a job that you love with people you enjoy. Save like crazy so you have options. Avoid expensive cafe society and learn to cook. Find a partner who is wise (and caring) with money. Think about future income always.” VITA PALESTRANT Former editor of…

EDITORIAL Chairman & chief commentator Paul Clitheroe Editor Effie Zahos Deputy Editor Maria Bekiaris Art Director Ann Loveday Designers Heather Armstrong, Nick Clark Senior Sub-editors Bob Christensen, Janice Hogg Senior Writers Susan Hely, Pam Walkley Staff Writer Steph Nash Online Content Producer Sharyn McCowen CONTRIBUTING WRITERS Heidi Armstrong, David Bassanese, Nerida Cole, Andrew Crossley, Alan Deans, Ross Greenwood, Sam Henderson, Greg Hoffman, Hans Kunnen, Roger Montgomery, Anthony O’Brien, Marcus Padley, Vita Palestrant, Terry Ryder, Annette Sampson, Mark Story CONTRIBUTING ARTISTS Yianni Aspradakis, Eamon Gallagher, Will Horner, Reg Lynch, Rob Shaw, Jim Tsinganos, John Tiedemann, Richard Whitfield PHOTOGRAPHS Getty Images, iStockphoto ADVERTISING NSW Jermaine Borquaye (02) 8268 4489 Victoria Michael Pollard (03) 9823 6394 Queensland Nikkola Hogan (07) 3101 6636 South Australia Jo Moroney (08) 8267 5032 Western Australia Vikki Stacy…