Money Magazine August 2022

FROM THE EDITOR EDITOR’S DESK If I could swap places with someone for a quick second, it would be with Tom Cruise. No one else could fly in the face of the pandemic the way he did last month with a movie that pulled a record $1 billion in box office tickets. His financial pay-off from Top Gun: Maverick was obscene - $US67 million ($98 million) and counting. While not all of us can be Hollywood stars, there are still ways to make hay even in the most uncertain of times. In our cover story, “Build your defences” this month (page 32), we go through your pressing concerns (inflation, falling property prices and low super returns, to name just a few!) and show you how to shift gears. We’re also giving…

Letter of the month Simple, sensible advice for acquiring wealth Just make an effort! Marcus Padley, you nailed it! Your column “Make an effort to acquire wealth” (July) outlined seven principles for acquiring wealth - none of it was rocket science but it was refreshing, very simple and relevant for all. You also highlighted the importance of constant effort, something that is sadly underrated in today’s world but still so essential for all ages. Thoroughly enjoyed this article - sensible and logical - but maybe that’s just the old-fashioned “boomer” in me! Danielle Low-income earners need to pump up super too Your July cover story (“Why you only need $250k in super to retire”), including ways to pump up your super, is great for high-income earners, but missed a little…

PAM WALKLEY Senior writer As a self-funded retiree - who also does some paid work - rising interest rates are generally good news for me. For example, I have some money invested with Plenti, an online lender, and when I reinvested some of my funds earlier this week, I got a rate of 4.6% for five-year lending. As a mum, though, I worry about my kids’ ability to service their mortgages if interest rates go anywhere near the 17% I paid in the late ’80s. JAMIE WILLIAMSON Editor, Financial Standard At this point, the rate rises haven’t had a financial impact - we were fortunate to lock in a very low fixed rate of 1.89% in early 2021. But the increases are causing some anxiety as we need to refinance…

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I come from a simple working-class background, but with the benefit of two very savvy role models in my parents. Dad was an early adopter into super before it was compulsory, and I saw what senior years could be like when money was not a stress, compared to relatives who got poorer and more stressed about money as they aged. I also saw what good decisions and good advice combined can do - my dear mum turned her modest net worth into a substantial sum after dad’s passing, which would have made him chuffed. As he would have said, “That’s the way…” So, superannuation has always been a focus, starting by putting in a little extra in my 30s and maxing the pre-tax limit once my mortgage was paid. I…

THE BUZZ Check for asbestos: it’s a small price to pay IN THE renovation boom sparked by the pandemic two years ago, it’s easy to forget about some of the dangers of DIY fixes. One that comes to mind is the risk of asbestos exposure. Asbestos was a popular building product used in most houses between the 1940s and the late 1980s. Little did we know then that it can cause cancer, and so many lives have been cut short because those who were exposed to it labourers, subcontractors, homeowners - didn’t know the price they were paying for building a dream home or fixing up an old one. We do now, but some people still skip getting professionals in to remove asbestos from their homes when they are renovating.…