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At a time when many people have been focused on their family’s health and livelihood, having adequate life insurance has never been more important. Yet the gap between what we need and what we have, has been growing. Life insurance is all about ensuring your family can maintain their lifestyle if you were to die or become seriously ill. Even people who do have some level of protection, might discover a significant shortfall if they had to depend on their current life insuran

As anyone who has joined the weekend crowd at Bunnings knows, Australians love DIY. And that same can-do spirit helps explain why 1.1 million Aussies choose to take control of their retirement savings with a self-managed superannuation fund (SMSF). As well as control, investment choice is a key reason for having an SMSF. As an example, these are the only type of super fund that allow you to invest in direct property, including your small business premises. Other reasons peo

Goal setting is one thing – achieving your goals is something else entirely. So what makes the difference between a goal that is achieved and one that falls by the wayside? Research has shown that people who achieve their goals are more likely to do so because they create a vision of their future and are emotionally connected to their goals. i Goal setting for the new year This time of the year is often when we come up with goals, but despite positive intentions, we can easi

After a year when the average superannuation balance fell slightly or, at best, moved sideways, the summer holidays could be a good opportunity to think about ways to rebuild your savings while being mindful of tax. With the Reserve Bank reducing interest rates to record lows and not anticipating a rise until 2024, it’s more important than ever to ensure your retirement savings are working as hard as possible. One way to do that is by taking advantage of super, which offers

When it comes to decision making, we don’t always get it right. It is human nature to fall for several behavioural traps when making everyday decisions and also when trying to predict the future. Even the smartest people can succumb to their own biases when forming judgements and making choices. While it’s unrealistic to expect to never again make a bad decision, we can of course recognise and anticipate possible biases so we can make informed decisions. This knowledge helps

Most Australians are only vaguely aware – or completely unaware – of the fact that credit-reporting agencies monitor their financial transactions. While most Australians don’t give much thought to what’s on their credit report, the credit score that’s based on the contents of that report can have a significant impact on your financial choices. A modest score may mean you miss out on getting a mortgage or business loan. There’s no shame in relying heavily on your credit card

With tax cuts and stimulus payments on the way, Treasurer Josh Frydenberg is urging us to open our wallets and spend to kick start the national economy. If your personal balance sheet could do with a kick along, then saving and investing what you can also makes sense. One positive from this COVID-19 induced recession, is that it has made many of us more aware of the importance of building a financial buffer to tide us over in lean times. Even people with secure employment ha

Living through COVID-19 has brought many challenges and shifting priorities as we deal with the financial impacts of the pandemic, and that includes the issue of life insurance. On the one hand, the pandemic has highlighted the importance of life cover. On the other, those who may have lost a job or lost income are questioning its necessity. Many Australians continue to view life insurance as a discretionary item. This is in stark contrast to car or home insurance which are

This year has exposed investors to the end of a bull market and the start of a global recession, all caused by a totally unexpected global pandemic. The outlook for the global economy and investment markets remains uncertain until an effective vaccine is available. While there is cause for optimism that one of the many vaccines will become available in the not-too-distant future, the road to financial recovery – for nations and many individuals – could be much longer. Wheth

Self Managed Superannuation Funds (SMSFs) have had a challenging year, with COVID-19 linked market uncertainty affecting income and returns but SMSF trustees haven’t been sitting on their hands. One of the main reasons people give for wanting to establish an SMSF is to have greater control of their investments and taking control of a difficult situation is exactly what they’ve been doing. Changes to asset allocation According to the 2020 Vanguard/Investment Trends SMSF inves

When the inflation rate fell into negative territory in the June quarter, it was so unusual it begged the question of what this means for the economy. Are we facing deflation or even stagflation and what is the difference? In the June quarter the annual inflation rate fell to minus 0.3%, only the third time in 72 years of record keeping that the rate has been in the negative. Much of the fall was attributed to free childcare (part of the special COVID-19 measures) and low p

After a year when even the best laid plans have been put on hold due to COVID-19, people who were planning to retire soon may be having second thoughts. You may be concerned about a drop in your super balance, insecure work, or an uncertain investment outlook. Whatever your circumstances, a financial tune-up may be required to get your retirement plans back on track. You may even find you’re in better financial shape than you feared, but you won’t know until you do your sums

The changes to our daily lives of late have caused us to reframe our views on ‘screen time’, an activity that now more than ever takes up a significant proportion of our day. However, as we spend more time online we are also spending more money online and it pays to be mindful of the ways our browsing habits impact our hip pocket. With the average Australian spending over six hours on social media every week, it’s safe to say we’re affected by what we consume online.i This

While Australia’s handling of the COVID-19 pandemic was among the best in the world, the speed and spread of the illness underlined just how fragile life can be. It was also a solemn reminder of the importance of ensuring your affairs are in order, so your wishes are met – in life and death. The centrepiece of any estate planning is your Will, which sets out who you would like to receive your assets when you die, and how they are to be distributed. But you also need to cons

At a time of uncertainty about the economy, not to mention unexpected social isolation, people are rethinking their personal and financial priorities. Whether you are spending less by necessity or because you are living more simply at home, this could be a good time to reassess your spending and review your household budget. Our spending habits have changed Even though we are spending less in lockdown overall, we have also changed what we spend our money on. We are spending

Over recent years, a range of fintech (financial technology) challengers to Australia’s traditional banking sector, dominated by the four big banks, have emerged. Smaller, nimbler operators harnessing the power of new technology for financial transactions are disrupting the big banks, including peer-to-peer (P2P) lenders. What is peer-to-peer lending? Banking always involves money from one group of customers (savers) being transferred temporarily to another group of customers

As the world celebrates International Women’s Day and all that women have achieved, it’s a good opportunity to take stock. Australia has undoubtedly come a long way in terms of workplace participation, equal pay and financial independence, but there is still some way to go. These days, women make up almost half the workforce although 43% work part-time. Women also make up over half of university enrolments (58.4%), but on graduation they earn $5,000 less than similarly qualif

The summer bushfires have touched the lives of all Australians. For individuals who lost homes, businesses or livelihoods, the financial hardship lingers, prompting many to ask whether they can dip into their superannuation to tide them over. The short answer is generally no. According to the Australian Taxation Office (ATO), there are very limited circumstances where you can access your super early, mostly related to specific medical conditions or severe financial hardship.

The start of a new year is always a good time to check whether your insurance policies are still serving your needs but this year there is even more reason to review your cover. If your super balance is less than $6000 or you are under 25 and are a new fund member, life insurance in your superannuation will no longer be automatic come April. i Letters have already been sent out to those affected by the change which is part of the Putting Members First/Protect Your Super Pac

With a property market recovery underway, most notably in Sydney and Melbourne, Australian investors are once again pursuing their love affair with property investing. For many investors, a popular way to invest directly in residential or commercial property is through their self-managed super fund (SMSF). In fact, Australian Taxation Office (ATO) statistics show property is the third most popular asset class in Self-managed super fund portfolios. Part of the attraction of