Innholdsfortegnelse for September 2017 i Money Magazine

“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.” GEORGE SOROS If you had a lazy $10,000, where would you invest it? After Best of the Best, our awards edition that comes out in December, this issue would have to be my next favourite. Not only do our regular experts answer some of the most popular questions that our readers keep asking but they let you in on where they’re investing their own cash. And as Sam Henderson points out, the advice they give their clients is not always what they would do themselves. As he says on page 41, “I’m going to go out on a limb and select a more potentially volatile investment, and one I wouldn’t recommend for…

GREG HOFFMAN Greg is an independent financial educator, commentator and investor. Greg says: “More than advice, my father gave me confidence by always trusting my abilities. He allowed me, at the age of 19, to manage his and mum’s superannuation fund. That gave me tremendous experience and he never lost faith in me.” VITA PALESTRANT Former editor of the Money section of The Sydney Morning Herald and The Age, Vita says: “For the generation that lived through two world wars, self-indulgence was unthinkable. My father taught me self-reliance. His favourite remark was ‘It won’t happen on its own.’ His favourite act was to help those less fortunate and keep it anonymous.” MARK CHAPMAN Mark is director of tax communications at H&R Block. Mark says: “Look after the pennies and the…

Every property cycle I’ve experienced has come to a halt because of finance or difficulty getting it. In general, the Reserve Bank increases interest rates to slow down the economy, and in the past it has been quite effective at doing this. And over recent years, the Australian Prudential Regulation Authority (APRA) has put the brakes on investment lending, creating a credit squeeze. Affordability is another factor near the end of the cycle. And I’m not talking about first home buyers who always seem to have difficulty with affordability, but established home buyers who tend to stay put rather than trading up (or down) because they find that high prices and excessive stamp duty are too much of a disincentive. There’s still life left in this cycle and it’s not…

Author Christine Williams began to invest in property when she had to start all over again at the age of 35 after her divorce. In this book she offers a seven-step guide to wealth creation through property for people who find themselves in the same situation she was all those years ago. There are plenty of useful tips for investing in property even if you’re not “suddenly single”. Williams looks at financing your purchase, finding the right property and when to buy, through to managing your property and building your portfolio. MARIA BEKIARIS Ten readers can win a copy. In 25 words or less, tell us the first thing you’d do if you found yourself suddenly single. Send entries to Money, GPO Box 4088, Sydney, NSW 2001 or email money@bauer-media.com.au.…

Rising power bills are always a hot topic and it probably comes as no surprise that millions of families are paying more than they need for their electricity. Part of the problem is lack of transparency. You might have started on a discounted plan that has since expired and you may not have realised you have been switched to a default plan that is more expensive. But soon that should no longer be the case. The prime minister, Malcolm Turnbull, met energy retailers in August and they have agreed to contact all customers who are on expired discounts and tell them how much they can save on a better deal. Other measures that the energy companies have agreed to implement include: • Reporting to the government and Australian Competition &…

With property prices so high, you may need to make compromises when you’re deciding what and where to buy. Research commissioned by Gateway Credit Union found that some aspiring property owners may be willing to sacrifice space for location, with 35.5% saying they would rather buy a studio apartment in their ideal location than a bigger property further away in a less ideal area. Baby boomers are most willing to take a studio apartment in an ideal location (44.8%), followed by 18- to 29-year-olds (30.8%) and 30- to 49-year-olds (27.5%). Paul Thomas, Gateway Credit Union CEO, warns there could be a catch, though, as many lenders have strict criteria when it comes to lending for studio apartments. If you’re thinking about buying a studio smaller than 50sq m it pays to…

Which investment companies have the best environmental, social and governance standards when it comes to investing? The Responsible Investment Association Australasia (RIAA) assessed 99 Australian and New Zealand investment managers and gave 16 asset managers, representing $557.1 billion, a score of 80% or more. They are: AMP Capital, Amundi Asset Management, ATI Asset Management, AXA Investment Managers, BlackRock, Celeste Funds Management, Colonial First State Global Asset Management, Dexus Property Group, IFM Investors, Investa Property Group, Lendlease Investment Management, Perpetual Investments, QIC, RARE Infrastructure, Robeco and Solaris Investment Management. Three funds did even better as they had outstanding core values as well as ESG standards. They are Australian Ethical, New Forests and Stewart Investors. SUSAN HELY…

Jody, it sounds like you’re truly living the lifestyle and financial dream. You’re not paying a cent in tax from your super and you have plenty of money to supply you with an income stream, most probably for life. Having spent a lot of time surfing my way around the Indonesian archipelago, I can attest to the beauty of the place and many others just like it, so good on you! The other important aspect to your situation is that because you spend a lot of time away from home, your request for a set-and-forget strategy plays nicely into the hands of investing most of your hard-earned dollars in superannuation. I think this is good idea because in AustralianSuper it’s well invested, has performed well and is a low-cost option.…

What is it? Strokes are Australia’s second single greatest killer (after heart disease), with over 60,000 occurring every year, and the Stroke Foundation aims to raise awareness. The goal is to ensure every household has someone who knows the signs of stroke and to call 000. Where your money goes: The Stroke Foundation delivers a number of important prevention, support and treatment programs and also has a research program. These include things such as free health checks, stroke-safe education sessions, supporting health professionals by offering training in the latest treatments and best practices, and supporting stroke survivors by offering vital information and connecting them with care services. How to donate: You can donate directly to the Stroke Foundation at strokefoundation.org.au or call 1300 194 196 for more details. You could…

Some funeral insurance policies will allow you to stop paying your premiums once you have reached the amount you need for your funeral. Not all policies work like this. Alice was 58 and still working when she took out funeral insurance costing $20 a fortnight. She wanted to have funeral cover so her family did not have to worry about paying for her funeral. But by the time she was 71, Alice’s stepped premium had doubled and cost her more than $40 per fortnight. It had gone up every year as she aged and to cover inflation. She struggled to pay the higher premium on her much lower, post-retirement income. She also knew it would continue to go up each year. Alice added up all the premiums she had paid…

The late Kerry Packer famously told a House of Representatives select committee in 1991: “I don’t know anybody that doesn’t minimise their tax.” He added: “Of course I’m minimising my tax. And if anybody in this country doesn’t minimise their tax they want their head read. As a government, I can tell you you’re not spending it that well that we should be donating extra.” It is one of the best and most inclusive political sledges ever, and Packer’s frustrations with our political masters are still shared by many of us 26 years later. Nonetheless, Packer knew there are sensible and legitimate strategies for minimising the taxes we pay on our business profits. That’s not to say the political class has given up on seducing small business. In May the…

With the latest iPhone line-up expected to be released in early September, you might be thinking about upgrading your mobile phone. The question is, what do you do with the old one? You could pass it on to someone who needs it or you could recycle it but it is definitely worth trying to sell it. According to eBay, even old, broken and used phones are worth money. eBay is one option to consider if you want to sell your phone. How much you’re likely to get will depend on the make and model and of course the condition. “If history repeats itself, your precious iPhone will drop in value the moment Apple announces a newer model,” says Alex Angove, from the communications comparison site WhistleOut. If you want to…

Hybrids are a “ridiculous” product for retail investors, according to Greg Medcraft, the outgoing chairman of the Australian Securities & Investments Commission in an interview with The Australian Financial Review in July. In many cases, if a bank gets into financial trouble hybrids can be converted into bank shares, which may be worth less than the initial investment or may be written off completely, resulting in a total loss of capital. This is what happened to some hybrids offered by overseas banks during the GFC. The four major Australian banks have issued around $27 billion worth of hybrids, which have been popular with retail investors because of the high yield and 100% franking credits. Medcraft believes the billions of dollars of hybrid securities issued to retail investors by the major…

Everyone knows first home buyers are doing it tough. Soaring property prices, savings accounts that offer paltry returns and low wages growth mean their efforts to get a deposit together is a challenge. The new First Home Super Saver Scheme offers some help. The federal government says the scheme, launched on July 1, will boost the savings for a home deposit “by at least 30% compared with saving through a standard deposit account”. At the time of writing the legislation was yet to be passed. The scheme boost comes via tax breaks and a deemed earnings rate. The catch is you can only save up to a total of $30,000. That’s small bickies when you consider the high price of property. Still, every bit counts. As with all things super,…

What was your first job? During high school I was a candy bar assistant at Hoyts Cinemas in Sydney’s Chatswood. The job also involved cleaning the popcorn popper and hopper and then making choc tops in the freezer during down time. What’s the best money advice you’ve ever received? Money is worth a lot less than your personal brand and reputation, so don’t make decisions that might provide you with a few extra dollars in the short term but will hurt your personal brand. If your personal brand is tarnished, you’ll miss out on lots of opportunities. What’s the best investment decision you’ve made? While not financial, I believe the best decision I’ve made was to work pro bono during a university internship at Macquarie Bank and then again scoring…

We all know the old saying that at times it is hard to see the forest for the trees. I am certainly guilty of this. The amount of micro detail in the world of money is growing and growing. The changes to superannuation had me well and truly in micro focus mode up to June 30, along with various pronouncements about capital gains tax, negative gearing and later trusts. Add market and currency volatility and it would be fair to say I had little time to ponder what I believe really adds value to investment returns – a long-term perspective. So it was with some relief that I left these issues behind and, with my wife Vicki and some very old friends, headed off to the Baltic and then, even…

It might seem like a distant memory but there was a time when Australian banks moved their standard variable rates alongside the official cash rate, maintaining a steady margin of 1.8%. However, in 2008 financial markets were thrown into turmoil and the cost of funding skyrocketed. Bank profit margins were squeezed and they turned to their home loan customers to help fund the shortfall. Banks are well within their rights to make a profit. After all, they aren’t charities and a strong banking sector is vital for our economy. However, when banks are forced to decide between their customers and their shareholders, more often than not homeowners are asked to step up. The margin between the cash rate and the bank’s standard variable rate is now 3.75%, more than double…

Who doesn’t love a good holiday but if you’re anything like me packing for the trip can be quite stressful. This app is meant to make it much easier. You enter the important details such as where you’re going, for how long and also any activities you have planned, for example hiking, swimming or a fancy dinner. Also note if you’re travelling for business or if you’ll have a baby with you and the app will create a custom packing list that takes into account all these factors. There’s also an option you can click if you’re happy to repeat basics or if you prefer a new outfit each day and you can nominate whether you’ll be doing the laundry. The app will even check the weather at your destination…

If you’re disappointed with your salary increase this year you’re probably not alone. Nick Deligiannis, managing director of Hays in Australia & New Zealand, says salary increases are sedate, which has triggered a much greater focus from employees on the benefits available to them in their current or potential new role. Flexible working arrangements, more days off, financial support for study and access to health and wellness programs are some of the perks employees would like. 59% of Aussies would like a job offering more than 20 days of annual leave 55% would like a day off work for their birthday…

Telstra’s shock announcement of a 22¢ a share dividend guidance for next year – down 29% from the 31¢ in fiscal 2017 – was clearly too much for investors to stomach judging by the stock price reaction. Contrary to the prevailing sentiment, we do not see this share price discount as warranted. Granted, the magnitude of the dividend cut (from 90% of earnings to 70%) and the abrupt fashion in which it has been executed was a surprise, especially as we had previously anticipated a more gradual decrease to 25¢ by fiscal 2021. However, a dividend cut was inevitable, as was a move to a more sustainable capital structure in the face of proliferating changes brought on by the NBN, mobile competition and relentless changes in the converging telecom space.…

It’s great that you’re making such good use of the wealth you’ve built up but remember that it’s got to last. Life expectancies are increasing and you could be in for a lot of sailing! I’ll leave the overall wealth advice – including the vehicles through which to invest – to others and stick to the share portfolio. It’s generally best to have at least a dozen stocks (probably more) to provide diversification, so on its own this portfolio will probably be a bit too concentrated. It’s not just about the number of stocks but their percentage weighting. Held equally, they’d each be 10%, which is high, but if any are well above this then it could bring in a lot of risk. There might also be significant sector concentrations.…

I am a 45-year-old medical practitioner. I am looking at investing about $500 a month for the next 10 years so that my 12-year-old son gets a lump sum when he’s at uni. Currently I have some shares and exchange-traded funds (ETFs) in a family trust. I am happy to take risk. Do you think investment bonds would be a good alternative, or should I stick to ETFs only? I am confused as bonds will have lower returns than ETFs but will be totally tax free. Nitin J Chavan Excellent question, Nitin. Investment bonds always strike me as a pretty ancient investment vehicle and are not my preferred option. The big issue is that they are not “totally tax free”. The correct term is that they are a “tax paid…

THE EXPERTS 10 MOST-ASKED QUESTIONS Q When should I take out health insurance? There isn’t a hard and fast deadline. Many people chose to take it out when their life stage or health needs change, such as turning 25 and coming off their parents’ policy, deciding to try for a baby or experiencing a health issue that comes with growing older. But there are a couple of government policies that encourage people to take out private cover at particular times. The lifetime health cover loading (LHC) means that if you don’t have private hospital cover by the time you turn 31 you’ll have to pay more if you do decide to take it out down the track (anywhere between 2% and 70% extra depending on how long you wait). The…

Are mortgage brokers overpaid? It’s a valid question and one that was asked by the investment bank UBS in its report into the mortgage broking industry back in May. On a $500,000 loan a broker would on average receive an upfront commission of $2700 from the lender (this doesn’t include the aggregator’s cut). Typically a broker would also receive a trailing commission of 0.14% from the lender over the life of the loan. This would be $700 in the first year and decline each year as the loan is paid down. Too much? Maybe but I could also ask the same question about real estate agents. Commissions on a $500,000 property can be $10,000 to $15,000. Not bad given properties in a hot market can sell in less than 31…

LIFE’S BUSY SO IT’S HARD TO SHOP AROUND Name: Amy State: NSW Sydney woman Amy says it’s been more than 12 months since she last compared prices on car insurance. She and her husband are busy, balancing work and three children, and don’t always find time to look for better deals on their policies. “I know I should do it every time a renewal comes up, but there’s never enough time,” says Amy. “With the other bills, it’s hit-and-miss when I shop around for better deals.” 1 What is she paying? Amy and her husband currently pay $869.37 a year for comprehensive insurance through NRMA for their 2016 Mitsubishi Lancer. All drivers are aged over 30, with clean records, and the car is covered for unlimited use. 2 Can she…

‘The marketer tracks you everywhere you go, like a bit of chewing gum on your internet shoes’ ‘LIKES’ BRING OUT THE SPAMMERS • No doubt you read Money magazine because you want to make money. And there are so many terrific illustrations of how you can do this. If you’re doing your homework, you’re probably “liking” many of the personalities and companies on Facebook, and because of that I’m guessing you’re getting spammed by all and sundry! Here’s what you can do if your Facebook has been over-run by spruikers. One of the beauties of Facebook is that you can get instant gratification with a variety of money-making samples such as tips from property investors, small business experts and digital marketing gurus, and a plethora of miscellaneous social goop…

China-focused ETFs, or popular emerging markets ETFs with varying exposures to China (and possibly India), that have performed well recently include: • VanEck Vectors China AMC CSI 300 (CETF) 12.28% (1 year) • iShares China Large Cap (IZZ) 16.32% (1 year), 12.18%pa (3 years) • iShares MSCI Hong Kong (IHK) 19.51% (1 year), 14.42%pa (3 years) • iShares Asia 50 (A) (IAA) 27.50% (1 year), 15.62%pa (3 years) • iShares MSCI Emerging Markets (IEM) 19.37% (1 year), 7.67%pa (3 years) • Vanguard FTSE Emerging Markets (VGE) 14.55% (1 year), 7.26%pa (3 years) • SPDR S&P Emerging Markets (WEMG) 15.33% (1 year), 7.14%pa (3 years) * Based on Morningstar data to July 3, 2017…

YES Now is the ideal time to consider tax cuts as part of an overall supply-side boost to the economy. While Australia has avoided the much-predicted recession, for several years now the economy has languished with sub-par growth, poor levels of non-mining investment, record low wages growth and high underemployment. It’s likely this will continue for a while yet as housing construction starts to decline and low wages growth, surging electricity prices and slowing wealth gains constrain consumer spending. Rate cuts from the Reserve Bank have done a good job of supporting the economy as they have put extra cash in the hands of companies and consumers and helped lower the Australian dollar from above parity, which has boosted farmers, tourist operators, manufacturers, and so on. But rate cuts are…

Economic growth over the past 18 months has been patchy, and although the fundamentals are good this is set to continue for the next year or so – growth is likely to be around 2.5%pa this year and next. Driving the economy forward will be exports, with new LNG installations coming online in Western Australia and the Northern Territory and Queensland’s coalminers recovering from the disruption caused by Cyclone Debbie. Tourism and education exports have also come back to the party, helped by the fall in the Australian dollar since the end of the mining boom and improving conditions externally, with short-term overseas visitor arrivals increasing by about 9% year on year for the last 18 months. Export volumes rose an estimated 7% in 2016-17, and growth is likely to…

Take personal responsibility for debts Your article “Tougher rules needed to tackle debt problems” (The Buzz, August) highlighted some great ideas to help reduce credit card debt. Reforms have been needed for some time and it’s good to see our government looking at ways to help Aussies get out of personal debt and hopefully move forward to a brighter financial future. I do wonder, though, where personal responsibility comes in. The article suggests governments compel credit card providers to increase the minimum repayments on debt. I can’t help but wonder if perhaps it shouldn’t just be the responsibilities of banks and government to fix all our financial problems. Surely the average Aussie can see that paying more than the minimum amount will get their debts paid off faster. Good on…

The Australian Securities & Investments Commission (ASIC) recently announced that Commonwealth Bank and insurers QBE and Virginia Surety will repay over $26 million to people who were mis-sold add-on insurance, including consumer credit insurance. It has been a long time coming, and there may be more announcements on the way. If you’ve taken out credit or finance, you may have been offered consumer credit insurance. It is typically added to your loan or credit card to cover some of your repayments if you lose your job, are injured, become sick or pass away. It’s just like being asked at the fast-food drive-through, “Would you like fries with that?” The problem is that consumer advocates and ASIC have found add-on insurance is often expensive, low value and full of exclusions and…

BUSSQ is the latest of the superannuation funds to give fund members an incentive for joining up for its retirement pension. It pays a retirement reward of up to $11,520 to new retirement pension members who have set up an account-based pension. It can be taken as a cash payment or left in the account to top up the member’s balance. The Fat Prophets Global Property Fund run by Simon Wheatley, ex Goldman Sachs and JB Were, is being listed on the ASX in September. It will invest in listed real-estate equities in developed markets around the world and make regular payouts to investors. It holds 30% in Australian REITs and 70% in international REITs. Airtasker workers can now take out income protection insurance as the company has teamed up with…

It’s quite common for parents or other relatives looking to give children a head-start in life to invest money on behalf of the kids from an early age. That way, a nest egg can accumulate which the child can draw on once they reach adulthood. A question that often arises is who pays tax on the income: the child or the parent? To find out the answer, it’s necessary to consider who provided the funds for the investment, who receives the investment income (regardless of who it is spent on) and who makes the investment decisions. For the child to be liable for tax, the income must belong to the child and the assets that produce the income must also demonstrably belong to the child. Indications that this is the case…

There is currently a $450-a-month wage threshold for the superannuation guarantee (SG) and as a result an estimated 220,000 women and 145,000 men miss out on around $125 million of contributions each year. The SG is 9.5% of an individual’s salary which, by law, their employer has to pay into their super fund. It should be part of everyone’s work-related entitlements, particularly low-income earners, who need SG to help put them on the road to comfort in retirement. The $450 threshold particularly affects women, who often work in casual or part-time jobs for more than one employer at a time. It also impacts young people in casual jobs and delays them embarking on the super journey. Having young people engaged in super, saving as early as possible, makes more sense…

Australian residential property beat Australian shares as the top-performing asset class over the 10 years to June 2016, according to the Russell Investments/ ASX long-term investment report. Residential property returned 8.1%pa followed by global fixed income (7.4%), Australian bonds (6.1%), Australian equities (4.3%), hedged global equities (5.5%) and Australian listed property (0%). Equity markets posted double-digit returns for 2016 and many alternative asset classes (high-yield debt, emerging market debt, listed infrastructure and property) performed strongly but year-on-year 10-year returns fell compared with 2015. This is because 2006 was a stronger year than 2016 and the negative impact of the GFC moved closer to the beginning of the period. Russell says that while residential property overall has achieved strong positive returns over the past 10 and 20 years, it would be…

NAME: Jody Bedson STATUS: Married, retired and sailing around the world. QUESTIONS: Where do I invest $100,000 in a conservative but high-return portfolio? Should I cull or add to my existing shares? ANSWERS: Keep your investments simple and place your extra money into Australian-Super, where investment earnings are tax free and you can draw it down when you need it. Sell your shares and invest the money in AustralianSuper so you won’t have to keep an eye on how they are performing. But if you want to keep the shares, consider cutting back on banks and retail stocks. Seven years ago, Jody and her husband flew from Melbourne to Florida and bought a 13-metre ketch built in 1980. “In two weeks we bought the perfect boat,” says Jody. The couple,…

For Stalla, too much debt could put ... Dream home in danger Q My husband and I bought our first owner-occupied home 16 months ago in our dream location. It’s a lifestyle property on two hectares in a regional Victorian town. Although it’s our first home we plan on staying in the property long term and want to renovate the kitchen and bathrooms to make it into our dream home as well. The renovations would be to our own taste as it is our owner-occupied property and we have had no regard for the other houses in the area, as we have no plans to sell or use it as an investment property. We put all our savings into the deposit and got a loan at an 80% loan-to-value ratio…

The very best advice I can give when it comes to investing the proceeds from a divorce settlement is to take your time. The best investment you will make after a divorce is not property, shares or super. It is an investment in time to build a future plan for your life and your money. This will be one of the best investment decisions you have ever made. Divorce is inevitably a time of high emotion, stress and uncertainty. I know that once a financial settlement is reached and there is money to invest, there is a new sense of being in control of your own money and the desire to “move ahead” and make decisions. But there are so many variables. Will you reduce your mortgage, buy a home…

1 THE DEPOSIT Cash rates are 1.5% and term deposits pay around 2.5%. Your net returns (after tax) would mean your money would be going backwards as the Reserve Bank is expecting inflation to be around 2% over the next year. Your options for putting together a deposit include online savers, which pay as much as 3%. But while your money is certainly safe, it will be a slow journey. If you’re happy to dial up the risk then there’s certainly a case for saving in line with the asset you want to buy, in this case property. The ASX Russell Investments Long Term Investing Report shows cash grew 2.8% in the 10 years to December 2016 compared with residential property at 8.1%. Fractional funds such as BrickX, where you…

It is worth taking the time to understand where your superannuation goes when you die, particularly as balances grow and because life insurance is often held through your fund. You may think that your super is part of your estate and would be covered by your will. But this isn’t the case. Super is held in a trust and is not part of your personal wealth. “That’s why you need a separate document. You need a death benefit nomination. It’s like a little will to decide who gets your superannuation,” says Brian Hor, special counsel, superannuation and estate planning, at Townsends Lawyers. Checking on who you have nominated as a beneficiary when you die is important and needs to be kept up to date. You can either have no one…

WHAT’S ON THE TABLE? Labor is planning to tax distributions from trusts at a minimum rate of 30%. Currently distributions are taxed in the hands of the individuals who receive them at their marginal tax rate, which theoretically means they could be taxed at anything up to the top marginal rate of 47% plus the Medicare levy. In reality, however, many people use trusts to minimise tax by directing trust income to non-earning or low-earning beneficiaries. This is why Labor argues that trusts give the wealthy (who presumably can pay accountants to set them up and run them) an unfair advantage over pay-as-you-earn workers who don’t have the option of directing their income to someone else. HOW TRUSTS WORK A trust is a legal entity set up to hold assets,…

‘The family can provide more personal and financial support’ Family units look very different in today’s society. Gone are the days where practically every household had a patriarchal structure with a male breadwinner and female homemaker. Now it’s not uncommon to have two working parents, a single-parent household or even a stay-at-home dad. Certainly these cultural changes have had a direct impact on our lives, including our finances. With household debt increasing while wage growth remains at record lows, families need to do everything they can to stay afloat. For many parents this means working longer hours or taking on a second job. Earning more to battle the rising cost of living is one solution. However, it’s not always practical, particularly as underemployment continues to be a challenge. Consequently we’re…

Although it is becoming increasingly difficult for some buyers to get their foot on the property ladder, research conducted earlier this year has demonstrated that property ownership remains the great Australian dream. But the Evolving Great Australian Dream report from Mortgage Choice and CoreLogic showed that almost 90% of the 1000-plus people surveyed believe that the traditional freestanding house on a quarter-acre block in the suburbs is no longer achievable. But regardless of how difficult property ownership becomes, people still want to own a home, says John Flavell, CEO of Mortgage Choice. “In fact, our research shows people rate home ownership as more of a priority than career success, travel or having a luxurious lifestyle,” he says. But there has been significant decline in the proportion of households that are…

If the first rule of investing is to not lose money, and the second rule is the same as the first, then why do so many of us keep breaking the rules? Hands up, if after the past few months of publicity and controversy, you’ve wondered if you should sell your Commonwealth Bank or Telstra shares? Just about every person who owns them, I’ll bet. Notwithstanding CBA CEO Ian Narev announcing his departure in 15 months, a 20% pay cut for the board and short-term bonuses suspended for senior executives over allegations by government agency Austrac that the bank’s systems failed to report around 53,700 potentially suspicious transactions, nothing much happened to the Commonwealth share price. Yet each breach attracts a maximum penalty of $18 million – a total worth…

As a small boy back in the 1970s I earned $11 a week delivering papers, morning and afternoon, for a news-agency in Melbourne’s West Brunswick, and to this day I cannot forget how much I rued rainy Saturdays. You see, back then the Saturday paper was enormous and heavy – thanks to the classifieds. And back then there was no internet – indeed, we didn’t even have the phone on until 1976 and our television was black and white. In the 1970s if you wanted to sell your TV, car or house, you listed it in the Saturday paper. You paid by the line and most people were economical with their words, remembering that a three-bedroom house-and-land package could be picked up for $11,000 or a $1000 deposit and repayments…

10 STOCKMARKET LESSONS THAT NEVER CHANGE: 1 If you ever find yourself standing up at your dealing desk and punching the air in delight, it means “sell”. 2 If anyone ever says, “We have entered a new paradigm in equity investment”, “stronger forever”, “the Chinese economy has de-coupled from the global economy” or “we have no sub-prime exposures”, three stockbrokers list in a year or the ETF industry creates an actively managed ETF that targets a particular theme, sell! 3 There is only one thing a falling share price tells you and it’s not “buy me”. I don’t know what it is about the Australian culture but if something falls in price everyone wants to buy it. A falling share price means “sell me” not “buy me”. It’s technical analysis,…

The data in these tables compares some of the most popular super funds. They are a mix of industry funds, master trusts and government funds. Industry funds are set up by employer associations and unions; many are offered publicly, some have restricted membership (NP). Master trusts (corporate and personal) are set up by banking, insurance or financial planning groups. All performance figures are after all fees, charges and tax applied to the fund have been deducted. The table here shows performance of funds’ balanced options. But most super funds offer many other choices of investment mix. The data is provided by SuperRatings, a totally independent Australian superannuation research company. It is the leading source of superannuation information to the Australian media and is renowned for its timely commentary and opinions…