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People often think their superannuation will be treated as part of their estate when they die and distributed according to their Will, but that’s not the case. Unless you have nominated your beneficiaries, the decision as to who receives your superannuation is in the hands of the trustees of your fund. When that happens, the trustees normally direct all funds to your dependents – your spouse, your children, financial dependents and people with whom you had an ‘interdependenc

When it comes to personal finances and ways to build your wealth it seems that everyone has an opinion – and a preferred pathway for wealth accrual. From your friend at the pub who likes to share his stock market tips, to your friend at work who has a constant stream of ‘get rich quick’ schemes, to your mother-in-law who exposes a more prudent ‘slow and steady and sock it in super’ approach. The truth is there is no one-size-fits-all approach to generating wealth and settin

You’ve probably heard of social stress – fear of fitting in, feeling anxious about meeting new people. Or you might have experienced stage fright – the stress of public speaking, performing, or presenting in front of people. But there’s another form of stress on the rise that’s potentially affecting Australians much more regularly and seriously than getting butterflies before giving a speech. It’s a different type of stress to stress about. According to some researchers, clo

Luxury inner city apartments marketed as ‘perfect for empty nesters’. TV shows where cool older divorcees live in luxury on the waterfront. The ‘grey nomads’ community selling up and taking off in their camper vans. Even twenty years ago, the idea of downsizing wasn’t really part of our culture. The parental home was something to be cherished and kept in the family as long as possible. Now, if the aforementioned signs are anything to go by, downsizing to a smaller property i

Most SMSF trustees thought life would be calmer after the latest batch of superannuation reforms came into force, but things are never that simple when it comes to superannuation. Funds with members affected by the $1.6 million transfer balance cap now face important decisions about whether or not to apply for transitional capital gains tax (CGT) relief before they lodge their 2016/17 SMSF annual return. SMSF (Self Managed Superannuation Fund) trustees can apply for CGT reli

Australia’s household debt is among the highest in the world and rising, thanks largely to worsening housing affordability and plentiful consumer credit. So how do we measure up and should we be worried? Most global comparisons measure total household debt as a percentage of net income. At last count, Australia’s household debt to income was 213%, the fifth highest in the developed world according to the OECD. Good debt vs bad debt Debt is not necessarily bad if it’s used to

It probably comes as no surprise to anyone that there is a significant underinsurance gap between what we would need to maintain our standard of living should the unthinkable happen, and what we are actually covered for in the way of insurance. Australia is one of the most underinsured nations in the developed world, ranking 16th for life insurance coverage.i There are lots of reasons people give for not buying life insurance, but top of the list is invariably cost. Sounds

Australians buying their first home or downsizing in retirement are about to receive a helping hand thanks to new superannuation (super) rules which come into effect on 1 July 2018. From that date, first home buyers will be able to contribute up to $30,000 into their super fund towards a home deposit while downsizers can put up to $300,000 of the proceeds of selling the family home into super. This new measure has been devised to assist first home buyers, many of whom have

They say 60 is the new 40. And while it’s true that today’s over 50s are healthy and active for longer than previous generations, many in this position begin to dream about scaling back their work commitments so they can start ticking off their bucket list. You may want the flexibility to travel more, volunteer or take up a hobby. Perhaps you want to look after the grandkids for a day or two a week. It might be you see your 60s as an opportunity to switch careers or try your

Compulsory superannuation has been around for 26 years, long enough to become a valuable source of retirement income. But even though the vast majority of us have money tucked away in a super account, it’s surprising how many myths and misconceptions there are about super. Some people think of super as just another type of investment, or worry that it’s locked up until they’re 65, or that it’s never going to be enough to retire on so why bother. In the interests of debunking

At first glance, investing can seem daunting. So much complex information and so little time to absorb and act on it when you’re busy getting on with life. It’s little wonder that so many of us put it in the 'too hard' basket for longer than is good for our wealth. The good news is that investing doesn’t need to be hard. The basic rules of investing are surprisingly simple and timeless. Set your objectives If you want to reach your personal and financial objectives, first yo

Even those of us who have been paragons of responsibility for 51 weeks of the year can be tempted to take a budgeting holiday when Christmas and the summer vacation rolls around. Unlike overindulging at the Christmas lunch, this has more than short term consequences. Last December, Australians spent $25.6 billion in retail stores. A survey conducted at the time by peer to peer lender SocietyOne found shoppers planned to put over half the cost of the presents they bought on cr

Owning your own home has long been the Australian dream but after years of strong house price growth it’s becoming less of a reality for many. This has major implications for retirement planning. The major factor behind the shifting approach to home ownership is the prohibitive price of property, particularly in Sydney and Melbourne. As a result, today’s younger generations may be closer to the age of 40 before they take their first step on the property ladder. It’s sometim

It’s been a decade since the market crash known as the Global Financial Crisis (GFC) rocked the investment world. At the time investors could only watch in disbelief as 50% was wiped off the value of their shares. Arguably, the actions those investors took are still reverberating today. Which begs the question: what are the key lessons of the GFC and did we pay attention? Predictably, there were warning signs before the eventual market crash. Just as predictably, no-one cou

The study of behavioural finance tells us people prefer a small certain reward today than a bigger uncertain one in future. That’s certainly true of share investors over the past decade. Against a backdrop of low interest rates and slow economic growth, investors have looked for dividends in ‘safe’ companies rather than big capital gains from risky ones. Since 2004 Australian share prices have gone up by 75%. But when you add dividends, the total return from shares is up by

They are marketed as being the optimum lifestyle choice for recent retirees, often in ideal locations with all the facilities for a stress free lifestyle. But with complex fee structures and inconsistent regulation, retirement village living should be approached with caution. Before becoming emotionally attached to the idea of living next to a golf course or an ocean, or the prospect of no more home maintenance, consider how long you are going to be able to enjoy all the lif

One of the golden rules of investing is diversification, but that can be difficult to achieve when you are just starting out or have limited funds to tap into a world of opportunities. Which is why investors have been flocking to exchange-traded funds (ETFs) and listed investment companies (LICs). ETFs and LICs are like managed funds in that your money is pooled with other investors to create a large portfolio of assets which is professionally managed. Not only do they provid

If you’ve got superannuation (super), chances are you’ll have some default insurance included and the option to buy more at an attractive price. It’s a cost effective way to get a basic level of cover, but holding insurance inside super does have some downsides. Forms of super insurance There are three types of insurance you can hold inside super: life, total and permanent disability (TPD) and income protection insurance. Many super funds automatically insure their members an

Tax should never be central to any investment decision you make, but it still has an important role to play. What that means is your investments should be tax effective rather than tax driven. Depending on your personal financial circumstances, there are bound to be ways you could minimise you tax obligations to maximise your investment returns. Types of investment Investing in shares or property is generally more tax effective than investing in cash. This is not only becaus

You’ve probably heard of Bitcoin and other cryptocurrencies by now. In the space of eight years they’ve gone from a geeky novelty to big business and investors are beginning to take note. There’s an estimated US$100 billion worth of cryptocurrency floating around in cyberspace. In the real world, there’s a small but growing number of Bitcoin ATMs appearing in the world’s metropolises. Heavy hitters including Microsoft, Virgin Galactic and Expedia now accept Bitcoin as paymen