Innholdsfortegnelse for April 2024 i Money Magazine

EDITOR'S WELCOME When we talk about saving money, we often share articles about how to invest, where to cut costs and how to improve money habits. But a damning report on price gouging and unfair pricing practices released in February had the Money team's (collective) jaws on the floor. The report exposed one of the reasons why, despite all our best efforts, living standards continue to come down: we are getting ripped off every day. Our reporter, Nicola Field, pored over the 80-page report for the backbone of our cover story on price gouging (page 34). Companies with large market share due to a lack of competition are using a plethora of methods to benefit themselves and their shareholders at the expense of the consumer. At every turn – whether…

ALEX DUNNIN OUTLOOK A ustralia's largest super fund, AustralianSuper, sent shockwaves through the nation's company boards last year when it led the resistance that thwarted the buyout of Origin Energy by the consortium led by the Canadian private equity group Brookfield. As dramatic as AustralianSuper's actions were, too many people have learned the wrong lessons from it. It's not that our super funds have become too powerful and need their wings clipped; the problem is with the ASX itself. It's too small, not diversified enough and has too few large investible, quality companies capable of satisfying Australia's cashed-up, biggest investors. It means that policy proposals to require super funds that get involved with a takeover deal to seek permission, or impose on them some bizarre duty of care to other…

If there's one thing you commit to memory this year, make it this list of four common scamming tricks. 1. Pretending to be from an authority, scammers rely on most of us being lawabiding citizens. So, they commonly pretend to be from large, familiar agencies, such as the tax office, a bank and utility companies. 2. They often couple this with a sense of urgency: they most definitely do not want you to have time to think clearly. Scammers often give you a limited time, perhaps threatening a fine or a late payment fee. 3. Then they engage your emotions. Once they have a dialogue with you, scammers will often use emotive language. Remember that no legitimate organisation ever does this. 4. They will promise something that's too good to…

FRIENDS WITH MONEY #139: TOP PERFORMING ETFS OF 2023 Guest: Cameron Gleeson Hosted by: Tom Watson Investors poured billions of dollars into exchange traded funds in 2023. In this podcast, Cameron Gleeson, senior investment strategist at Betashares, discusses ETF performance in 2023 and the trends emerging this year. The number of investors using ETFs in Australia has risen from 15% to 20% over the past three years. New investors, in particular, find them appealing because they provide diversification and allow access to asset classes that are difficult to access directly. They were the first investment for 14% of first-timers in the past two years, according to the ASX. SCAN THIS CODE TO ACCESS ALL OUR FRIENDS WITH MONEY PODCASTS…

Cash users could soon find themselves paying for their morning coffee with a new-look $5 note, as the Reserve Bank (RBA) has announced a public redesign campaign. 90% of the women who seek support for domestic and family violence are affected by financial abuse. Source: CWES, Designed to Disrupt report The existing $5 banknote features a portrait of the late Queen Elizabeth II on one side and Parliament House on the other, but the redesign will see the former make way for a new theme, which the RBA says will reflect First Nations culture and history. “This could be a story passed down for generations, a location, an idea, an instrument or an object that binds a community,” says Michelle McPhee, assistant governor for business services at the Reserve Bank. “Involving…

▶ MORE INVESTING STORIES ON P66-77 AGE PENSION Asignificant proportion of retirees could be leavingmoney on the table as a result of widespread misunderstandings about the age pension and how it can supplement income from their superannuation funds. That is one of the major takeaways from research by Colonial First State, which found that 64% of Australians simply don't understand how the age pension works while a similar number (61%) are unsure how to access it. Craig Day, the head of technical services at Colonial First State, says one of the biggest misconceptions is that people think they need to fully retire before accessing the pension. “If you're approaching age-pension age and still working, it's worth considering applying, as some or all of your income may be excluded from the…

Q I find myself in a challenging situation after a builder insolvency. I received $150,000 from the building indemnity insurance, which is in my bank account earning 4.5%. The home is at the frame stage, but an additional $250,000 (the $150,000 building indemnity plus $100,000 out of pocket) is needed to complete it. I am hesitant to add the extra to my mortgage due to a new car loan and increased interest rates on my mortgage. I'm contemplating whether to invest the $150,000 in shares for a few years or pay off the car loan and explore refinancing. The initial build price was $270,000 and the new price is $520,000, so the bank might be cautious due to the property's current value. I'm renting and paying half my mortgage payments…

SMART TECH On our radar: three gadgets that make life easier Video like a pro Upgrading your performance on video just got easier. Snap on your iPhone and the tracking stand will follow your face and body movements during livestreaming, video recording or video conferencing. It can turn 360 degrees and tilt 90 degrees as you record or stream video and can keep going for five hours straight if you want it to. The internal battery can be recharged between uses or plug it in with the 1.5m USB-C to USB-C cable. The Belkin Auto-Tracking Stand Pro with DockKit works with FaceTime and other video conferencing apps and operates smoothly and quietly. If you don't want it to track your movement anymore, you can turn that feature off with the…

1. Loyalty taxes Businesses set initial prices low and then sharply increase them in subsequent years when consumers cannot easily detect, question or renegotiate them and where the ‘transaction costs’ of changing to other competitors are high. Guilty Some banks, insurers, energy providers. Turn the page to read about Paul Clitheroe's frustrating experience with loyalty tax. 2. Loyalty schemes Companies retain and exploit consumers by providing them with low-value rewards of dubious benefit. These schemes are also often badly run. Guilty Frequent flyer and supermarket schemes. 3. Drip pricing Firms only advertise part of a product's price and reveal other prices later as the customer goes through the buying process. Guilty A number of airlines (both Jetstar and Virgin have copped penalties for drip pricing in the past), mobile phone…

Every cent counts when times are tough. One way to reduce your day-to-day expenses is to negotiate the best possible rate when you take out a home loan, credit card or even sign a new phone contract. In fact, there are plenty of opportunities to angle for a better outcome across a range of everyday expenses. The idea is to know the market and your worth in it, approach the situation with an open mind and be prepared to consider nontraditional lenders, operators or solutions. James Anderson, 38, who lives with his wife and two young children in Sydney's inner west suburb of Erskineville, had been with his bank for a decade when he noticed it was offering new customers a considerably lower interest rate on fixed-rate home loans than…

• Consciously slow your breathing. Our physiology and psychology are closely linked. Our body interprets a slow heart rate as a sign to stop producing the dopamine and serotonin that flood our brain and muzzle our critical thinking. Breathing exercises, such as the box technique (inhale, hold, exhale), are excellent for this. • Go for a run or do some other demanding exercise. As well as releasing energy, this produces neurotransmitters that can help achieve chemical balance. • Use disappointment to your advantage. Be disappointed at something small like your lunch, the weather, your fingernails – something irrelevant. This can be a quick brain hack to tame high arousal excitement. Be careful not to imagine being disappointed at missing out on the investment opportunity you are considering – this will…

PAM WALKLEY REAL ESTATE Home is a structure that provides us with accommodation, but for many of us it's much more than that; it's our sanctuary, a place where we feel happy and secure. Even if our home no longer provides the space or layout we need, many of us are still reluctant to up sticks and move. For some, renovating an existing home to make it a better fit is the solution. But this is not always possible or practical. To renovate or move is a dilemma most people will face at some stage. A growing family requires more space, housing several generations under the one roof needs bespoke accommodation solutions and often empty nesters require less space. If you love your home, including its location, and you have…

In 2017, Tasmania Police launched an investigation into Nant Barrel Holdings. Hundreds of investors had bought barrels of whisky from the business for as much as $14,000, with Nant promising to buy them back after four years while paying investors a 9.55% annual return in the interim. That return never eventuated, and an audit revealed that hundreds of barrels had never been filled or were missing entirely. So how can would-be whisky investors avoid being caught out? • Beware of guaranteed returns. Genuine investments rarely come with guaranteed returns, so any business offering them should be treated with scepticism. So, too, should those promising overly generous returns. • Assess the company. It can pay off to take your time looking into the business in question. Make sure it's a legitimate…

Thao Bui was 24 when she purchased her first property in East Melbourne in 2006 for $275,000. Three years later, the four-bedroom, standalone house had doubled in value. Bui used debt recycling – that is, the equity she had in that first home – to buy an investment property. “I used the equity to fund the whole property – I didn't use any deposit,” says Bui, now 42. “When I sold my second property, I purchased a house-and-land package. And that hasn't performed as well as I hoped. I used equity, so no deposit at all. “But the other investment properties I bought in 2009 and 2012 made a lot of money and I was able to sell them and start a business.” After six years running her own business,…

ZACH RIAZ MANAGED FUNDS Despite the resilience of the global economy in the face of aggressive interest rate hikes, investors are debating the source of the next market, and economic, shock. A leading candidate is the stress in the US, and global, commercial real estate (CRE) sector. This represents a downside for global investors and has implications for Australian real estate investment trusts (A-REITs). In our discussions with global investors, we hear concerning anecdotes about offshore CRE markets, such as property transactions happening at a deep discount to the last sale price. Global policymakers are aware of these issues and their ramifications. This is one of the reasons why forward interest rate expectations in the US are pricing in significantly more cuts to the Federal Reserve policy rate in 2024…

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. For more information see rainmaker.com.au WHAT THEY…

CALENDAR OF EVENTS Friday, April 5 Balance of trade Tuesday, April 9 Westpac consumer confidence Thursday, April 11 NAB business confidence Thursday, April 18 Unemployment rate Wednesday, April 24 Inflation rate THE BUZZ Home internet has come a long way in three decades. Gone are the days of having to disconnect to make a phone call and enduring the piercing sound of a dial-up tone and painful load times. Well, that last point might not be totally true. While loading a website no longer requires the patience of a saint, laggy connections and buffering videos remain the bane of modern-day browsers. But a new plan put forward by NBN Co might go some way to remedying these annoyances and meeting our appetite for speed and stability. Under the proposal, more…

MARK CHAPMAN TAX TIP As we approach the end of the financial year, thoughts may be turning to preparing your tax return. You must be able to substantiate your deduction claims, which for many taxpayers can mean a mad scramble to find invoices/receipts. So now is a good time to start getting the paperwork together. You must have written evidence to prove your claims if your total deductions exceed $300. The records you keep must prove the total amount, not just the amount over $300. The $300 limit does not apply to claims for a car, meal allowance, award transport payments allowance and travel allowance expenses. There are special written evidence rules for these claims (such as the logbook for car allowances and the substantiation exemption for travel expenses less…

Australians have a record 200 million days of accrued annual leave, and the new Subi platform makes it easier to cash it in. Employees with more than 20 days of leave can claim them as cash, with Subi dealing with employers. The service is free, with a turnaround time of 12 hours. The benefit for businesses is that it streamlines the complex and time-consuming task of navigating leave entitlements and lowers leave balances. “It's about bloody time.” That was the response of Mary Delahunty, CEO of the Association of Superannuation Funds of Australia, to the news that 12% super will be paid on the 20 weeks of government-funded parental leave from July next year. “This milestone announcement will deliver a huge boost to equity in the superannuation system,” she added.…

▶ MORE PROPERTY STORIES ON P60-65 BUYERS SLUGGED While property prices have skyrocketed in recent decades, new research by PropTrack and the e61 Institute has highlighted the meteoric rise of another cost faced by most home buyers: stamp duty. The research reveals that in Melbourne, for instance, it now takes buyers on the full-time average income the equivalent of six months’ salary ($42,500) to cover stamp duty imposed by States and Territories, on a median-priced home. That's 6.1 times more than it did four decades before. “Stamp duty is a large upfront cost for home buyers that must be saved on top of a deposit,” says Angus Moore, a senior economist at PropTrack. “Home buyers in Sydney and Melbourne must save nearly $45,000 just to cover the stamp duty for…

Justin Gilmour grew up with 10,000 sheep for neighbours. That might not be the norm for most young Australians, but when your family runs a 6000-hectare wheat and sheep farm near the town of Carnamah, 300km north of Perth, that's life. “I think growing up on a farm was pretty enviable. Having that sense of freedom and being in a small community where a number of the families were fourth-generation family friends is pretty special. We even had the benefit of growing up with our grandparents on the farm,” he says. “My brother might not agree that I was much use, but it was an expectation that everyone helped out around the farm, whether that be rounding up sheep, jumping on a tractor at seeding time or shifting machinery at…

PAUL CLITHEROE Q&A Q&A QMy partner is a couple of years older than me and has his own place. He has recently been dropping hints that he wants me to move in soon. But I want to save up and get a deposit and get my own place so that I am secure. I am not sure if I should move in with him and help with his loan or continue saving up for my own place. Crikey, this is a challenging month for Ask Paul on the heels of Trevor's predicament (see page 24). But, Patrick, this is a ripper question. The biggest disasters in money inevitably involve human emotion. Fear and greed are big drivers. Then we have relationships. No point in me waffling around – I'm going…

PAUL CLITHEROE PAUL'S VERDICT YOUR QUESTION I'm 42 with a concrete plan to retire in about six or seven years with enough capital to live from the dividends (FIRE – financial independence, retire early). Now, the question is about my super. I have no issue with waiting to reach my preservation age, but being in a defined benefit scheme, would I be significantly disadvantaged if I am not employed in the last five years before preservation age based on its formula that takes into account the latest salary? What are the alternatives? I am not sure following the advice from my super fund is in my best interest here. Gianluca HAVE A QUESTION? If you have a question you'd like Paul to answer, email money@moneymag.com.au or write to Level 7, 55…

I am absolutely over being penalised for being a loyal customer. No, this is not a whinge about frequent flyer points, which are arguably Australia's most rapidly depreciating asset. While I try to accumulate them and use them to save money on flights, they are a ‘want’ not a ‘need’. This is about far more important things that I would not put in the ‘want’ (nice to have) category, but the ‘need’ (must have) category. What has made me cranky is an insurance renewal offer for a car we own. The renewal amount was $2900. That was up on last year, but I do understand that insurers’ costs rise as well. So, I went into my usual money-saving routine. First, I checked our car's value. That was around $57,000. The…

SUSAN HELY FAMILY MONEY Yu may not see as many homeless older women living on the streets as you do young people and older men. Yet single women aged 65 to 75 who don't own their own home are the fastest growing homeless group. Homeless older women are often hidden from public view, staying with family and friends, living in their cars, or housesitting and petsitting. But they can only live on the generosity of others for so long. Around 34% of single women older than 60 live in poverty; they are the lowest income group, earning less than $30,000, and rent hikes are worsening their stress and homelessness. The number of homeless older women could reach 405,000, according to Housing For The Aged Action Group (HAAG) and Social Ventures…

ANTHONY O'BRIEN SMALL BUSINESS Afew weeks ago, a colleague's teenage son reluctantly enrolled in university. The teen, fresh out of high school, was keen to go straight into business for himself, try his hand at running an enterprise and skip the five-figure student HELP debt he's likely to accumulate in the process of landing a degree. But his parents – both small business owners themselves – felt a degree was an essential building block for career success. In the end, Mum and Dad won out. But it raises the question, are entrepreneurs born or made? Is entrepreneurship a skill that can be learned, or is launching a small business simply a matter of seizing opportunities? “Theory is great but most times it doesn't work in the small business world –…

If you're used to living in a house with a backyard and room to move, it can be quite an adjustment relocating to an apartment (not least working out what to do with all your belongings). Renting first is a good idea if you've never lived in an apartment – the reality can be quite different from what you imagined. Samantha Reece, from Australian Apartment Advocacy, says it's important to keep in mind that apartments have their own community, as with the more traditional neighbourhoods – it's just vertical rather than horizontal. Although buildings are being designed with better acoustics and resident comfort in mind, Reece says anyone considering living in an apartment needs to be tolerant, good at sharing and community minded. “As with any community, it takes more…

Australia's universal superannuation system is the envy of the world and the blueprint for similar schemes globally, having transformed the Australian economy since its introduction in the 1980s. We become part of the $3.6 trillion system from the time we get our first job and start paying a portion of our salary into our account. Super also slashes government expenses and funds Australia's biggest – and some of its smallest – businesses. So, it pays to know how it works. In 1986, Bob Hawke's Federal government kickstarted the current system with the Retirement Income Policy Review. The superannuation guarantee (SG) was subsequently introduced in 1992 at 3% of qualifying employees’ salaries, typically public servants and white-collar staff from big businesses, during Paul Keating's time as prime minister. Today, an employer…

VITA PALESTRANT SUPER Although there are many advantages in setting up a self-managed super fund (SMSF), circumstances change and what may have been a sound decision years ago may no longer apply today. There are a whole host of reasons why people decide to wind up their SMSF. They may decide they no longer wish to be burdened with the responsibility of running their SMSF or that their spouse hasn't got the expertise to take over in the event that they become ill or pass away. It could be that divorce or the wish to simplify things drives the decision. “Complexity is a factor,” says Marisa Broome, the principal of Wealthadvice. “Everything nowadays has so much compliance attached to it. If they've been dealing with an accountant for a long…

Resolution Capital Global Property Securities Fund (ASX: RCAP) Gives investors exposure to the underlying returns of some of the world's highest quality real estate assets through a portfolio of global REITs and property companies. The fund aims to provide both income and capital growth over the long term. It is denominated in Australian dollars and hedges the underlying foreign currency exposures. VanEck Australian Property ETF (MVA) Gives investors exposure to a diversified portfolio of ASX-listed securities with the aim of providing returns before fees and other costs that closely track the index. It has diversified exposure to commercial, retail, office, specialised and industrial property in a single trade on the ASX. UBS CBRE Property Securities Fund A portfolio of mainly A-REITs that the investment team believes are undervalued by the…

• Identify your interest – individual stocks, specific sectors or the broad market? • Is the market established (for example, US, UK, Japan) or emerging (for example, China, India, Brazil)? • Do you wish to invest directly on an overseas exchange or get exposure through a locally offered exchange traded fund? • What are the different brokerage fees? • How are dividends and distributions paid? And what are the tax implications? • Keep in mind time zone and currency differences. • Consider the political and regulatory risks of the foreign jurisdiction. • Do you have access to up-to-date and reliable data and information?…

SCOTT PHILLIPS BEST IN BREED If the expression ‘May you live in interesting times’, usually attributed to the Chinese, was applied to a single ASX sector, I think it would have to be resources. These businesses tend to be price takers and that price is usually nothing if not volatile. Just ask lithium investors. In early 2019, it was selling for more than $US25 ($38) per kilogram. Then, in late 2021, it was less than $US8 ($12). Fastforward to late 2022 and the price had risen more than tenfold to about $US85 ($129), before crashing to less than $US15 ($23) earlier this year. And so it goes, as Billy Joel once sang. Lithium, of course, might be the resource du jour, but similar, if less extreme, experiences aren't uncommon right…

Melinda Buttle Comedian The creator of the beloved Mum/Lyn character on Instagram is the go-to woman for her take on the absurdities of modern life. She is a regular on Network Ten's The Project and has written for shows as diverse as the ABC's Ronny Chieng: International Student, The Drum, You're Skitting Me and Please Like Me, and Network 10's This Week Live. She is currently on tour (appearing at the Melbourne and Sydney Comedy festivals) with her show Not Here to Put Socks on Centipedes. What was your first job? I worked at Woolies in the deli, and I loved every minute. I loved it. I always sprinkled extra seasoning on the hot chooks – customers are king, after all. I learned a lot about people. Many members of…

HANNAH TATTERSALL Contributing writer It annoys me when retail stores have a sign saying something like: ‘Transactions less than $10 will incur a credit card fee’. As someone who pays for almost everything using my phone or smartwatch, it's annoying to be penalised for not having cash. We were all forced to use cards during the pandemic and many of us have kept up the habit. I feel it is unfair to be charged an extra 10c or 50c for buying something small. Retailers should factor this amount into the cost of their products rather than charging extra at the counter. See Hannah's feature about the benefits of debt recycling on page 72. PAUL CLITHEROE Columnist I hate being overcharged, but getting underpaid is even worse. I always recommend that…

Learning about money is a lifelong journey. Parents and teachers consistently tell us they wish they had learnt more about personal finance at school when they hear about the Talk Money program run by Ecstra, an independent charitable foundation committed to building financial wellbeing. Concerningly, financial literacy has declined, with the largest drop among 15- to 24-year-olds, according to the 2022 Household, Income and Labour Dynamics in Australia (HILDA) survey. Providing financial education at school is a vital first step. Ecstra helps educators by providing classroom resources on budgeting, spending, needs versus wants plus the newer concepts of crypto, buy now, pay later and a nearly cashless economy. Talk Money – the largest face-to-face national financial education program offered free to all schools – helps students of all ages to…

BOOK OF THE MONTH This practical guide offers realistic advice on how readers can improve their spending habits and take control of their financial wellbeing. With humour and relatable anecdotes, Emma Edwards unpacks how to disconnect from the noise of consumerism, what can lie behind emotional spending and how budgeting and cashflow management can improve not just people's money habits, but how ‘good with money’ they feel they are. In writing the book, the founder of The Broke Generation, which provides financial advice for ‘hot mess’ Millennials, aims to eliminate the feeling of shame surrounding debt and overspending. To win one of five copies In 25 words or less, share a moneysaving tip that reduces your household expenses. Enter online at moneymag.com.au/win or send entries to Money, Level 7, 55…

Australians feel more optimistic about the prospect of buying property. A new Westpac report revealed that four in 10 people are considering a property purchase in the next five years – a 9% increase on the figure recorded last July. Not every cohort of would-be buyers is feeling as upbeat about their prospects, though. The number of people who are aiming to own a home in the next five years dropped from 20% to 16%, with the vast majority (86%) blaming the cost of living for delaying their plans. “While some buyers have paused their housing plans, the intention to buy remains strong and prospective buyers are becoming more ruthless with their goals,” says Damien MacRae, the managing director of mortgages atWestpac. “They understand it's a big task, but they…

PAUL CLITHEROE Q&A ASK PAUL Need Paul's help? Send your questions to: Ask Paul, Money magazine, Level 7, 55 Clarence Street, Sydney NSW 2000 or money@moneymag.com.au. Sorry, but Paul can't personally answer your questions other than in the Q&A column. By submitting your question to Money, you consent to having your question and the response you receive from Paul published in the print and digital edition of Money. QIs it possible to give me some advice please? Some time ago, I invested in Australian Bond Exchange at 65 cents a share on the promise of a price increase to 75 cents within a short period. Instead, they are now worth 4 cents a share (at the time of writing). I am a pensioner and this has hurt me very much.…

We all love a good FIRE, Gianluca! For me, this mainly involves sitting in front of one at the snow with my family and a glass of red wine. But your type of FIRE I certainly support. ‘Financial independence, retire early’ is a plan that many love the sound of and aim for. FIRE would not work for me. Here I am at 68, still loving answering Money readers’ questions, writing articles and – while I try to avoid TV these days – I still do a bit of radio, plus sit on a couple of company boards, which I also enjoy. This is perfect for me: maybe two days a week of work stuff and five-day long weekends. So, FIRE may suit some, but for me the FI is…

MY MONEY SPORTS Australians love sport. More than 80% of us participate in some form of sport to keep fit or to have fun. Millions of devotees regularly watch games, tournaments and matches on television, and hundreds of thousands volunteer to organise footy, soccer, netball and cricket games at a local level. Our enthusiasm begs the question: where are the opportunities for sports lovers to make money from their passion? Why sports investing is a hot topic Recent years have seen sports-based investments attract considerable interest as high-net-worth individuals and institutional investors hunt for new opportunities to invest their capital. Actor Natalie Portman cofounded women's football club Angel City in 2020, while the trials and tribulations of fellow A-list stars of the screen Ryan Reynolds and Rob McElhenney and their…

PHIL SLADE MIND GAMES In 1770, at a lavish party in a Viennese parlour, the inventor Wolfgang von Kempelen unveiled his latest invention with a flair that Steve Jobs would have been proud of. To the wonderment of the audience, he revealed a large wooden box with a chessboard on top that he described as the world's first chess-playing robot. He then opened the front of the box to reveal all manner of cogs, pulleys and intricate machinery – it was very impressive. In particular when he had a volunteer come up to play chess and his opponent's pieces moved automatically. The robot understood all the rules and could recognise when its opponent made a mistake or an illegal move. Von Kempelen called his chess robot the Mechanical Turk. It…

Offset accounts and redraw facilities can dramatically reduce the interest you pay on a home mortgage or investment loan and impact how quickly that debt is paid off. Offset and redraw facilities both allow you to make extra repayments against your loan, but offset accounts offer more flexibility for both home buyers and investors. For most borrowers, flexibility is a good thing, but for those who want to make lump sum repayments into their loan and don't want easy or regular access to that money, a redraw facility could be suitable. Which one is best for you? A redraw account is part of your loan, while an offset account is separate from it. You can use the money sitting in your offset account much as you would any savings account.…

MARCUS PADLEY THIS MONTH A tried-and-tested approach to investing is to buy yourself 20 Australian stocks, never selling, sagely quoting Warren Buffett at dinner parties and wondering why you are going nowhere. But there are alternatives. Here we go with four of them – 40 years of stockbroking wisdom and stupidity distilled. 1 The Boat Fund In the 1990s, a couple of city traders, one a fund manager and the other a stockbroker, bought a $400,000 boat that then sat, ostentatiously, on a mooring off the yacht club in Sorrento, on the Mornington Peninsula, in Melbourne. It was a symbol of how the stockmarket can pay off. The story goes that some years earlier they had agreed to each put $50,000 into a joint account they called the Boat Fund and…