Innholdsfortegnelse for July 2022 i Money Magazine

Late last year, I signed up for #NoSpendNovember as part of an online challenge to withhold my discretionary expenses for a month. While there were days when the deprivation only made me think more about how I could waste my money, I survived the trial. The experience taught me it is possible to break old habits. The seemingly inconsequential behavioural test became the foundation of big financial decisions I made a few months later. There was not a singular moment when I thought I was ready to make smarter financial choices. It happened gradually. First, there were the small victories: comparing utility providers and jumping on discounted offers, switching banks, and updating my superannuation payments and insurance. I went from small choices that saved me tens of dollars to choices…

The property market may be cooling but many homeowners have amassed a decent chunk of home equity, thanks to the combination of record-low mortgage rates and skyrocketing property values over the past two years. As a result, 600,000 households are planning to downsize to a smaller property in the next 12 months. Research by Finder shows almost half the would-be downsizers intend to make the move to unlock equity. More than 200,000 households are downsizing because they feel they don’t need as much space as they used to. The remainder (162,000) say downsizing will be a temporary move to save money. “Downsizing is a way to potentially lower your housing costs – if you can find less costly housing that still suits your needs,” says Finder’s Sarah Megginson. But she…

ASX-listed mining companies BHP and OZ Minerals have been given the tick of approval by retail shareholders for their high corporate governance standards, taking out the major prizes at the Australian Shareholders’ Association’s inaugural ASA Awards. BHP beat four other finalists, including the Commonwealth Bank and Flight Centre, to claim the best company governance title. “BHP engaged well with shareholders, including a Q&A session prior to the AGM. They also held special sessions on cultural heritage, climate change, decarbonising steel and tailings dams, all of which are of pressing interest to engaged shareholders,” says ASA chair Steven Mabb. Meanwhile, OZ Minerals received the award for enhanced company governance, coming up trumps ahead of BHP, Fisher & Paykel Healthcare and Tabcorp. “In 2017, OZ Minerals had a new chair and a…

Five things to do 1. Visit: There are more than 35 wineries with cellar door sales in Mudgee – too many to visit over a weekend. Many have something special to offer and cater to individual interests. First Ridge offers stunning hilltop views, Huntington Estate regularly features live music, petrol heads will appreciate the motorcycle collection at Robert Stein Winery, and dog lovers can bring their pet for lunch at Moothi Estate. 2. Drink: Not a wine drinker? There are many other options to quench your thirst. Our favourites include the Baker Williams Distillery (their cafe liqueur delivers a killer espresso martini) and the Mudgee Brewing Company (try the creamy Mudgee Mud imperial stout). Wine-adjacent picks include the classic tawny port by Pieter van Gent, and the award-winning rosé crafted…

The age pension is a valuable hedge against inflation, explains the Actuaries Institute’s Andrew Boal. It is a guaranteed income that goes up in line with wage inflation, known as average weekly earnings. With the age pension, you don’t have to worry about sharemarket volatility or asset selection to suit your risk profile. Rise Wealth’s Peter Humble says the couples pension rate of $38,709pa (including the pension and energy supplements) is attractive for its “risk-free rate of return”. He says a self-funded retiree would need millions of dollars to invest in risk-free assets, such as cash and term deposits, to get $37,000. If you are determined to receive the age pension, there are some strategies that can potentially help you qualify. Mark McShane, from Chrysalis Lifestyle, recommends contacting the technical…

IF YOU’RE THINKING about refinancing, buying your next investment property or shopping for better insurance, you’re in the right place. Money’s Consumer Finance Awards are bursting at the seams with products and services to help ease many of your financial worries. One in three Aussies says they are losing sleep at the prospect of more interest rate hikes, but you can get some peace of mind by comparing your existing home loan with our shortlist. Even something as simple as comparing the interest rates or the features can translate to savings of thousands of dollars over the life of your loan. Small business owners also stand to benefit by comparing the fees, features and rates of our CFA winners in the credit card, business bank and money minder of the…

Money’s Customer-Owned Institution of the Year is Greater Bank – this is the third consecutive year that the Hunter-based outfit has been named as the top overall performer in the customer-owned category. First established in 1924 as the Newcastle and Hunter River Public Service Starr-Bowkett Building Cooperative Society, Greater Bank has since built out an extensive base of 270,000 customers across NSW and south-east Queensland while growing its assets under management to more than $8 billion. In 2021, plans were also announced for a merger between Greater Bank and a fellow Hunter-based customer-owned institution, Newcastle Permanent. Though the merger is still subject to approval from the regulator APRA and the banks’ members, if successful it would lead to the creation of one of the country’s largest customer-owned banks. “Combining our…

Some credit cards seduce us with a low introductory rate on balance transfers before charging much higher rates on purchases or cash advances. However, Credit Union SA’s Visa credit card bucks the trend. It offers credit cards with a consistently low rate – something Finn Miller, senior manager, marketing, at Credit Union SA says reflects one of the key differences between a credit union and a bank. “As a member-owned organisation, our members – everyone who banks with us – own us collectively,” says Miller. “We don’t have shareholders like the banks, so we get to channel profits back to our members in the form of lower fees, more competitive interest rates and enhanced digital banking solutions. “We understand the financial challenges our members face. By offering competitive rates we…

For many years, homeowners with mortgages have been blessed by low interest rates and fierce competition for their business from lenders. But now that the Reserve Bank has started lifting the official cash rate, a new dynamic has been ushered in – one in which home loan rates and, consequently, mortgage repayments, are only going in one direction: up. For plenty of households, that will make choosing or switching to a low-cost home loan option even more important, particularly when other living costs are already putting a strain on budgets. While fintech and online-only players might be front of mind when you think of competitive interest rates and low fees, lenders like the 2022 Non-Bank Home Lender of the Year, Illawarra Credit Union, have also been delivering on that front.…

With new and second-hand car prices remaining higher than usual and supply chain restrictions adding to building and renovation costs, it’s no surprise that many Australians are turning to personal loans to help finance their larger purchases. And as long as these costs stay elevated, the incentive to find a low-cost loan option will remain as strong as ever. One lender delivering some impressive offerings in the personal loan space is MOVE Bank, the customer-owned Personal Lender of the Year. This isn’t anything new for MOVE Bank, though, as this is the third year in a row that it has taken home the same award following wins in 2020 and 2021. Founded in 1968 as the Railways Credit Union, MOVE Bank now boasts around 22,000 members and has widened its…

History is repeating for Newcastle Permanent Building Society, which also took out the top gong for this award in 2021. The non-bank sector is delivering valuable money-minding options for consumers, and with its “customer is an owner” philosophy, it’s hard to go wrong with credit unions and building societies. So, what puts Newcastle Permanent on the top of the leaderboard? Plenty – and it all starts with a generous selection of transaction accounts. The Everyday account provides unlimited everyday transactions and pay-in-an-instant options through mobile payments, online banking or a Visa debit card. A $4 monthly account-keeping fee applies, although this is waived for under-25s, or if you deposit $1800 each month, or if you have a home loan or a credit facility with Newcastle Permanent. To avoid monthly fees…

With a choice of four credit cards, St.George Bank has something for everyone in its line-up. If you carry an ongoing card balance, the St.George Vertigo credit card could be a useful choice. It comes with a $55 annual fee, 13.99% rate on purchases and a minimum credit limit of $500, making this an option for anyone getting their first credit card. St.George’s No Annual Fee card has a 20.74% rate. As well, cardholders enjoy up to 55 days interest free. If you are a cardholder who typically pays off any balance in full each month before interest charges apply, the No Annual Fee card could be a budget-friendly option. If you’re into card-based rewards, St.George has two Amplify Rewards credit cards – Platinum and Signature. Amplify Rewards is a shared…

With more than 20% of the Australian households owning at least one investment property, the investment lending market has become an incredibly competitive area for banks. Winning this year’s award is ING, which is better known for its savings products but has surprised on the upside with competitive offerings in this category. The bank offers three home loan products – Mortgage Simplifier, Orange Advantage and a Fixed Rate Loan – which are available to both investors and home buyers. In true form, the products are easy to understand. As at June, the lowest interest that can be accessed is the Mortgage Simplifier’s 2.34%pa variable. Orange Advantage is on a higher rate but with some extra features, such as a redraw facility and a 1% cashback on eligible utility bills. There…

Margin lending specialist Leveraged Equities has been named Margin Lender of the Year. A subsidiary of Bendigo and Adelaide Bank, Leveraged is not only one of the longest-running players in the market, it’s also one of the most decorated, having taken out the top Margin Lender of the Year prize for three consecutive years now. Leveraged was recognised as being a leader in the margin lending space once again, thanks, in part, to features like its expansive list of 3000 approved investment products (including shares, exchange traded funds and unlisted managed funds) and its ability to provide a sweet spot for borrowers when it comes to gearing capacity. The variable interest rates on Leveraged’s margin loan currently start at 6.70%pa, while its direct investment loan comes with rates from 4.34%pa.…

For most people, building or renovating is a daunting and stressful process. It can be difficult to know where to start, whether constructing a new home or renovating an existing one. Turning your dreams and aspirations for your property into reality is not as easy as it may seem. We know that highly skilled and professionally trained experts are essential for guidance through the design, planning and construction. Which professionals are “must-haves”, though? Are you just eating into your budget? Is an architect or designer a luxury or a necessity? These days many property owners are closely involved in their renovations and new builds. Often they engage a builder and think the rest will be smooth sailing. Ensuring you are fully aware of the expectations and responsibilities of the experts…

Seventy per cent of loyalty program members are cashing in their reward points to score a freebie, according to the 10th edition of the annual loyalty program research study by The Point of Loyalty, a brands consultancy. This is a significant increase – in 2016 only around half were taking advantage of their rewards. “With increasing inflation and economic uncertainty, it’s not surprising members are more engaged with programs they know and trust,” says Adam Posner, CEO of The Point of Loyalty. Flybuys has been voted as the program that is “doing a very good job” by a big margin (48.4%). New entrants this year were Amazon Prime and CottonOn & Co. Perks. While many of us are happy to settle for the odd few dollars knocked off our supermarket…

The majority of Australian mortgage holders aren’t prepared for rising interest rates, according to a Mortgage Choice survey. One in five respondents said they would be concerned if home loan rates increased by just 1%, and 48% would be concerned if rates rose by 2%. If the cash rate rises to 2% by May 2023 as some predict, repayments for the average borrower with a $500,000 debt could go up by an additional $511 a month. Worryingly, one in two respondents could only afford to pay an extra $201 on their loan per month. These concerns are seeing one in three borrowers lose sleep over interest rate hikes.   Despite the concerns, over half (55%) of those with a home loan are clueless about the rate they are currently paying. Mortgage Choice…

Exchange traded fund provider ETF Securities is conducting a 10:1 share split on its $2.6 billion ETFS Physical Gold product (ASX: GOLD). The split, which happened on June 8, will see owners of GOLD receive nine additional shares for each share they hold. Correspondingly, the metal entitlement of each share will be reduced by a factor of 10. The metal entitlement reduction means there will be no net impact on the value of GOLD holders’ investments. At the time of writing, GOLD was trading above $230 a share, which is one of the highest prices in the Australian ETP market. The post-split price will be between $20 and $30, which ETF Securities says is far more common for ETPs. Evan Metcalf, head of product at ETF Securities, says a number…

It’s no wonder pre-retirees have concerns about the next phase of their lives. Putting together the fragile financial puzzle involving superannuation, the age pension and investments to keep abreast of rising inflation isn’t easy. No one knows exactly how long they will live. They potentially face a long retirement, ill health, disability and residential aged care. Will they have enough money to see them out? “It’s a great, big interconnected ball of decisions, behaviours and a system of government assets and income tests with exemptions and exclusions” says financial planner Peter Humble, at Rise Wealth. Uncertainty is overwhelming for many pre-retirees, who are much less satisfied with their lives compared with those who have already retired. Pre-retirees have the lowest satisfaction about wealth, confidence, emotional experience, purpose, connection and control…

Using the money tied up in the family home, which is often the biggest asset for Australians, can provide age pensioners and self-funded retirees income for retirement. Around 1.9 million age pensioners own property. The 960,000 pensioners who are renters are under huge financial pressure, with rents rising much higher than indexed rental assistance. With prices in capital cities averaging $1 million for houses or $597,000 for units, there is plenty of capital to unlock. In Sydney, the average price for a house is $1.7 million and $713,000 for a unit. In Melbourne, houses average $1.18 million and units $585,000. There are several ways to free up capital in your home. One strategy is to downsize and move to cheaper housing, unlocking some of the value. Another is to take…

Suncorp has almost had a lock on this award for the past few years. This should come as no surprise for those who have looked into its heritage, who it serves, what drives it and what it is striving to create. It is the ninth biggest bank and, combined with its insurance and wealth management divisions, it has almost $100 billion in assets, making it one of Australia’s largest and most comprehensive financial institutions. One of the things that makes Suncorp different is that by originating and being based in Queensland, it has a rare mix of being both big and small, metro and rural, consumer focused yet not neglecting its business customers. Being Queensland-based gives it other perspectives. It lives the natural disasters with its customers side by side…

Avid Money readers would be familiar with this year’s winner of the non-bank lender of the year category, La Trobe Financial. The Melbourne-based credit asset manager, with more than $14 billion in assets under management, is one of corporate Australia’s homegrown success stories. The group is tapping the strength of the gig economy, freelancing and e-tailer market. “Often the issue for people working in these industries looking for finance is that the irregular nature of their employment can mean that they sit outside major banks’ loan acceptance criteria,” says Cory Bannister, chief lending officer. La Trobe Financial steps in by going through the traditional route, assessing each application manually, as compared with the automated approval and credit assessment process run by the major banks. “By way of specific products, we…

The 2022 winner in the Home Lender of the Year category for major banks is HSBC – no mean feat considering the strong competition there’s been in the home loan space over the past year. While the tides are starting to turn now, we’ve seen mortgage rates – particularly variable rates – reach some of the lowest points in years. Amid this, HSBC has not only managed to offer a range of relatively low-cost home loans compared with its major bank competitors, but it has also kept pace with many non-bank and digital lenders, which have typically provided the sharpest options around. HSBC is offering variable rates starting from as low as 2.52%pa for loan-to-value ratios (LVRs) below 70% and fixed rates from 4.07%pa on a one-year term for LVRs…

CUSTOMER-OWNED BANK — HOME LENDER OF THE YEAR A strong performer in previous years, Police Bank offers competitively priced variable and fixed-rate home loans. For example, its Goldrate home loan currently boasts variable rates from 2.99%pa and three-year fixed rates from 3.99%pa. Chief executive Greg McKenna says a “customer and member obsession” is a key part of Police Bank’s appeal. “When we set rates and build products, we are always focused first and foremost on what's best for our members. We've been really clinical about talking to members, finding out what they need and then building a product range and rate structure that serves those needs.” Police Bank’s focus on members is also behind its move to slash home loan application and approval times. By digitalising and streamlining its processes,…

AMP has long been a household name in Australia, and though AMP Bank has been around for 20 years, it doesn’t have the scale of Australia’s big four banks. Still, this hasn’t stopped it punching above its weight for rewarding deposit accounts that help Australians mind their money. AMP Bank takes over from last year’s winner and 2022 finalist, ME Bank, which held the title of Bank Money Minder of the Year for four consecutive years. With a range of options that span everyday accounts, savings accounts and term deposits, AMP Bank offers a broad selection for money management needs. For transactional banking, the Access Account comes with zero fees and no minimum balance requirements. The account can be linked to the My AMP app, and if you hold a…

Most Australians buy their life insurance through their superannuation funds or through their financial advisers. However, a growing number purchase it directly from their insurer online or by contacting the insurer themselves. Buying insurance directly can be much cheaper than buying it through intermediaries, such as financial advisers. But it means consumers need to be much savvier in choosing insurers they trust with effective online communications, because when you need to claim, you’ll be handling these details yourself. To reveal which are Australia’s best providers of direct life insurance, Money magazine has for the first time partnered with Plan For Life, actuaries & researchers. In their research they investigated which direct life insurers had the best value combination of products, customer service, technology and product innovation, online experience and corporate…

People today live longer, healthier lives than any previous generation. This, however, presents retirees with the challenge of building up enough savings to last them through all their retirement years or managing their savings efficiently so they last as long as they do. This risk of outliving your retirement savings is called longevity risk. To help retirees deal with this challenge, wealth management groups have been developing specially designed products, like annuities, guaranteed pensions and allocated pensions. These products are purpose-built to ensure they will not only pay their account holders regular income while they are retired, but also guarantee at least some of this income and minimise the risk it will run out. Money magazine has for the first time partnered with Plan For Life, actuaries & researchers, to…

If you’re a good saver with a fair chunk of deposit, Freedom Lend can most likely offer you one of the sharpest rates in town. Its bread-and-butter product is Freedom Variable, which offers 1.99% on a loan-to-value ratio (LVR) of 60%. While interest rates aren’t going to stay below 2% for long, Freedom Lend has a track record of providing very low rates for property investors willing to stump up as much as 40% of the deposit. “Property investors are different to owner-occupied borrowers,” says the group’s director, Mark Huynh. “They can pretty much borrow funds from everyone, so they are looking for very competitive solutions. “They want all the options, such as the redraw facility, the cheapest rate they can get and also a way to better manage the…

Contact us To send a letter to the editor, write to: Rainmaker Group Level 7 55 Clarence Street SYDNEY NSW Australia 2000 or email money@moneymag.com.au For all enquiries and letters, please include name, address and phone details. Letters may be edited for clarity or space. Because of the high number of letters received, no personal replies are possible. Subscribe Phone: 136 116 Online: magshop.com.au Email: magshop@magshop.com.au Subscribetothe Money digitaleditionat magshop.com.au/money-magazine Visit Money online Check out our website and while you’re there sign up for our free weekly email newsletter. You’ll get our top money stories plus exclusive finance tips. moneymag.com.au…

Gentrack (ASX: GTK) entered 2020 with a faltering UK division, declining margins and three profit downgrades in the previous quarter. It all went downhill from there. The UK utility market is the billing software maker’s biggest segment, and also its best opportunity for growth. Representing a bit over half of total revenue, the division has had three years of stagnant sales due to 2019’s introduction of new laws that limit how much electricity retailers can charge customers. This triggered a domino of declining revenues, falling margins and a slowdown in new project spending. There are signs a turning point might be in sight. The company has announced a strong result for the six months to March, with revenue rising 12% to $NZ57 million ($52 million). Despite the significant disruption to…

Electricity bills skyrocket in the winter months. That makes it critical to shop around for a better deal, especially if you have been with the same provider or power plan for an extended period. The Australian Energy Regulator says residential customers can currently save around $443, or 24%, off their bill by switching to a new plan or provider. Small businesses can save about $1308 or 29%. To get started, dust off your last power bill, then head to the federal government’s price comparison website Energy Made Easy. By entering in a few basic details or uploading your bill, it shows what other retailers are offering. The Field household put the site to the test and found we could do far better than the AER suggests, potentially cutting our annual power…

The hybrid market is the next frontier in share investing, according to John Dyall, head of investment research at Rainmaker Group, the publisher of Money magazine. Hybrids are complex financial instruments that have both equity and debt features, providing attractive franked returns. They operate as exchange traded products (ETPs) in that they can be bought and sold on the stock exchange, and as unlisted unit trusts. Hybrid products now represent around 15% of the total market. “These are the products that straddle the old world of unlisted unit trusts that have held sway for decades now,” says Dyall. “The truth is that the managed investments industry in Australia goes through constant change, and the rise of the hybrid is a sign we are going through one of those periods right…

Tabcorp’s high-quality lotteries division has been spun off into its own shell, known as The Lottery Corporation (ASX: TLC). The Tabcorp that remains (TAH) houses everything else: namely the TAB bookmaker, Sky Racing broadcaster and a gaming services provider. The stock is now trading as two separate entities on a deferred settlement basis. Investors have flocked to glossy TLC – or at least refused to sell it – while ugly ducky Tabcorp is being dumped. That’s understandable. Everyone knows TLC is the better business, but TAH is the better deal. Tabcorp is under significant competitive pressure, earns modest returns on capital, and profits tend to go through booms and busts depending on win rates and turnover. The Lottery Corporation, on the other hand, has a monopoly over Australia’s lottery licences…

Many people don’t get around to consistently building up a nest egg. But as they grow older, they realise they are missing out on superannuation’s valuable tax benefits and want to rev up their savings. Salary sacrifice The most tax-effective way to bolster your super is through salary sacrifice, because you are putting your pre-tax salary into your super fund. The money is taxed at only 15% instead of your marginal rate. The maximum annual contribution is $27,500. For most people, making extra concessional contributions is tax effective if they earn more than $37,000pa. An advantage of salary sacrificing is that you may be able to slip into a lower tax bracket. Take the example of Katie, who earns $90,000 before tax, excluding her employer’s super contribution. If she decides…

BANK OF THE YEAR The winner had the highest overall score among bank institutions that competed across six individual categories. Only full-service banks with a national presence were eligible for this major award. The weightings were:Personal lender 20%Credit card issuer 20%Money minder 10%Investment lender 10%Business bank 10% WINNER: SUNCORP CUSTOMER-OWNED INSTITUTION OF THE YEAR The winner had the highest overall score among customer-owned institutions competing across six individual categories. To be eligible for this award, institutions needed to be listed as a member of the Customer-Owned Banking Association, comply with its code of conduct and identify as a bank. The weightings were:Home lender 30%Personal lender 20%Credit card issuer 20%Money minder 10%Investment lender 10%Business bank 10% WINNER: GREATER BANK NON-BANK LENDER OF THE YEAR The winner was the non-bank lending institution…

Despite heavy competition in the personal lending space as a result of low interest rates and the rise of non-bank and digital players, Bank of Melbourne has demonstrated that traditional banks are still a highly viable option for borrowers looking for a competitive deal on a personal loan. Bank of Melbourne, which is part of the Westpac Group, stood out among major banks and other lenders, thanks to its range of competitively priced secured and unsecured personal loans. That’s no mean feat either, because the Personal Lender of the Year award is based on a quantitative analysis that takes into account the interest rates and fees of eligible car loans, debt consolidation loans and three- and five-year fixed-rate unsecured personal loans from a range of lenders. “Personal lending helps so…

Suncorp is a repeat winner for many of the same reasons it’s the 2022 Bank of the Year: it has scale but retains a regional focus and it boasts a diverse and competitive product range. Businesses tend to have more complex financial needs than consumers, so they may need more sophisticated banking products and services. These usually span various types of accounts for businesses, including agribusiness, and trusts; payment solutions such as point-of-sale, Eftpos and BPAY; and loans differentiating between small and larger-scale operations, perhaps with the need to interact with overseas suppliers and customers. Special-purpose credit cards are also in the mix. And while many banks provide at least some of these products and services, not all do it in a way that’s easy to navigate, especially if customers…

As a customer-owned organisation, RACQ Bank has a “people before profits” philosophy, and one of its core offerings is a wide choice of savings accounts and term deposits. “RACQ Bank is committed to offering great value, with straightforward banking products that meet member needs,” says Michelle Winzer, RACQ group executive banking. “We offer multiple savings account products that suit different needs and different savings styles.” As a guide, RACQ’s Bonus Saver account rewards regular savings behaviour with bonus interest. The eSave Account is an online savings account that allows members to earn interest without minimum deposit conditions. “Our aim is to support members through the important stages of their life and we have products to support them along that journey,” says Winzer. “So when you find your dream home, upgrade…

Australians looking to purchase a car, consolidate their debt, or finance some home improvements aren’t short of options from bank or non-bank lenders. In fact, the abundance of options can make it difficult to differentiate one lender from the next. One player determined to stand out from the crowd, though, is NOW Finance, winner of the non-bank Personal Lender of the Year award. To do that, NOW Finance has moved away from a “one size fits all” approach to lending by offering its customers competitive, personalised interest rates. “Our technology and data analytics generate a proxy score based on a few basic questions that a prospective customer answers, meaning we are able to give them an individually tailored rate whether they want to apply for the loan or not,” says…

Health is wealth. A 2020 study has shown that Australians spend $7485 each year on health goods and services. This equates to more than 10% of the average annual salary as an expense and, conversely, represents serious savings for those who are in tip-top shape. Prevention is key. TAL Life takes the top gong for its Health Sense and Health Sense Plus programs, both of which are geared towards preventative measures and reward policyholders who are in the habit of getting regular health check-ups. Rael Solomon, regional managing director of Plan For Life, actuaries & researchers, says TAL scored highly based on a range of factors, including the type of premium discounts it provides, its healthy living rewards and the level of physical and mental health support for policyholders. Last…

An investment bond is a type of investment product that tries to capture the best of two worlds: the returns of a managed investment product and the predictable payments from an insurance policy. This year’s inaugural winner of Investment Bond Provider of the Year is Generation Life, a Melbourne-based company that has been offering retirement products for almost two decades. It was selected by Plan For Life, actuaries & researchers, ahead of the competition in several categories, including product features, customer service and the company’s financial position. One bond that will appeal to parents and grandparents is ChildBuilder. You pay a lump sum upfront and leave the funds for 10 years. If the money is not withdrawn in that time, it benefits from a flat 30% company tax treatment (paid…

There’s a lot to love about customer-owned banks, which typically focus on reinvesting profits to the benefit of customers rather than shareholders. Bank First has followed this philosophy, and in doing so has shunned the option of providing a vast menu of credit cards, instead narrowing the choice to two value-packed offerings. Bank First’s Visa Classic card charges zero annual fees and comes with a low standard variable rate of 12.54%. Cardholders have the benefit of 55 days interest-free, with a minimum credit limit of $2000. While this card doesn’t come with a dedicated Bank First rewards program, a range of deals on food, travel and entertainment are available through Visa’s own Offers and Perks scheme. If you’re looking for a card with a higher credit limit, Bank First’s Visa Platinum…

Budget Direct is Australia’s most awarded insurer with a well-earned reputation for consistently offering some of the lowest premiums across many of the market segments in which it competes. This year is no different and it has again taken the award for Insurer of the Year. But it’s not just low prices that enable Budget Direct to stand out in an increasingly competitive market. It’s the emphasis the insurer places on its digital platforms. Budget Direct is a market leader for having a clear and easy-to-navigate website that not only outlines the different types of insurances customers can purchase, but includes educational material to explain how each type of insurance works and even how to get a good deal when buying what it is you intend insuring. A big advantage…

I’m 34 and my partner is 30 this year. We have a $380,000 mortgage that we have brought down from $590,000 in six years. We have $30,000 invested in Colonial and more than $300,000 sitting in the stock-market.  My question is, what next? The money invested in the sharemarket is from a “unicorn” share. We invested $7000 over seven years ago, and now that single investment is worth more than $300,000. It still has massive potential to go further, but we are unsure of what to do next. Do we pull the money out and invest in something similar like Colonial for security? Do we pull the money out, pay off the mortgage and start investing again? Or do we ride the wave and hope the share keeps on going?…

The tables on these pages contain data and information to help you compare managed funds, which are pooled funds managed professionally by investment experts. Managed funds displayed in these tables are multi-sector or asset class specific. Multi-sector managed funds invest across a diversified mix of asset types spanning equities, property, bonds, cash, infrastructure, private equity and alternatives. Managed funds are normally set up as unit trusts. You may be able to invest in them directly or through a platform. These products may be recommended to you by a financial adviser. The performance results displayed are the annualised investment returns each managed fund has delivered after taking into account taxes paid by the unit trust and investment fees. Research was prepared by Rainmaker Information and for more information see www.rainmaker.com.au Source:…