How to save money

When you hear the term ‘savings’ you probably think of the extra money you have in a bank account. But there’s so much more to savings than simply depositing more money into your accounts than you take out. Taking a structured, strategic approach to saving can not only help you achieve your financial goals in the future, it can make managing your day-to-day spending less stressful. Here are five tips to help you save money.

The main points are as follow :

  1. Get serious about budgeting

  2. Change bad buying behaviour

  3. Clear credit card debt

  4. Have dedicated savings accounts

  5. Look for little ways to save money every day

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Not all bonds are created equal: market risks and other considerations

Nathan Boon

In today's environment of low interest rates, many investors are chasing income by moving into lower-quality, high-yield bonds, but are they ignoring the downside risks?

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Why super and growth assets like shares really are long-term investments

Shane Oliver, Head of Investment Strategy and Chief Economist.

The attached note looks at why super and growth assets like shares should be seen as long term investments. The key points are as follows:

  • While growth assets like shares go through bouts of short-term underperformance versus bonds & cash, they provide superior long-term returns. It makes sense that superannuation has a high exposure to them.

  • The best approach is to simply recognise that super and investing in shares is a long-term investment.

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Australian Retirement Realities

Australia’s superannuation system is often held up as a model of success in the developed world. However Franklin Templeton's 2019 Retirement Income Strategies and Expectations (RISE) Survey found that Australians facing retirement are anxious about whether their savings will last the distance. In fact, 70% of pre-retirees feel that they are behind on saving for retirement.

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Five reasons why I am not so fussed about the global outlook

Dr Shane Oliver, Head of Investment Strategy and Economics and Chief Economist.

The attached note looks at five reasons why I am not so fussed about the global outlook. The key points are as follows:

  • There is no denying concerns about global debt, seemingly never ending QE, more debt trading on negative interest rates, inequality & geopolitical threats.

  • However, some of these concerns are exaggerated and there are five reasons why I am not so fussed about the global outlook. In particular, there is good reason to expect a pick-up in global growth over the next 12 months. This should help underpin further gains in share markets over the next 6-12 months.

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Aged care: Dispelling the myths

Six practitioners answer some commonly asked questions about aged care advice. The key questions are as follow :

Q1. Why did you decide to offer aged care advice?

Q2. How do you start the aged care conversation?

Q3. How did you market your aged care service?

Q4. Has aged care advice grown your business?

Q5. What does your business model look like?

Q6. How do you charge for aged care advice?

Q7. What would you do differently if you were just starting your aged care advice business?

Q8. Can you share a client story that illustrates the value of aged care advice?

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Ethical investment mythbuster

We’ve been managing money in line with our Ethical Charter for 33 years and our track record speaks for itself. But despite the strong performance of the ethical investment sector we still hear the same old arguments. Here are some of the most common myths about ethical investment - busted!

The key points are as follow :

  • MYTH #1 – Ethical investing means sacrificing returns

  • MYTH #2 – Limiting the investable universe increases risk

  • MYTH #3 – Divestment achieves nothing

  • MYTH #4 – What is considered ‘ethical’ changes constantly

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Five good reasons for seeking financial advice

Financial advice isn’t just for people with wealth. Whether you’ve set your sights on owning a home or retiring early, advice from a financial planner can help you make it happen.

The key points are as follow :

  • Buying a home

  • Starting a family

  • Providing for your family

  • Getting rid of debts

  • Enjoying your retirement

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More 21 great investment quotes

Shane Oliver, Head of Investment Strategy and Chief Economist.

The world of investing can be confusing and scary at times. But fortunately, the basics of investing are timeless and some investors (often the best) have a knack of encapsulating these in a sentence or two that is insightful and easy to understand. In recent years I've written several insights highlighting investment quotes I find particularly useful. Here are some more.

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What is a Power of Attorney?

Just as having a Will ensures assets are managed properly when you die, a Power of Attorney allows someone else to look after your finances when you’re unable to. Phillip Richards, Director of Endorphin Wealth Management explains more about what’s involved in having a Power of Attorney and why you’d be wise to have one, just in case.

The key points are as follow:

  • What is a Power of Attorney?

  • Why would I need a Power of Attorney?

  • Who can be my Power of Attorney?

  • How do I go about making a Power of Attorney arrangement?

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Five great charts on investing for income (or cash flow)

Shane Oliver, Head of Investment Strategy and Chief Economist.

The attached note looks at five great charts on investing for income (or cash flow). The key points are as follows:

  • The collapse in interest rates has made it harder for many relying on interest on bank deposits for income.

  • These five great charts help illuminate key aspects of investing for income (or cash flow): there are alternatives to bank deposits for income; the gap between yields on different assets provides a guide to relative value; shares can provide stronger growth in income with less volatility than bank deposits; a high and sustainable income yield from an investment provides security; and yield is a guide to future returns.

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How to plan for travel in retirement

For many, retirement is the perfect time to explore the world. For World Financial Planning Day 2019, we talked to Nathan Nash CFP® about how he’s helping clients #planwell2livewell by getting the balance right between travel goals and everyday living expenses.

The key points are as follow:

  • Looking at all the numbers

  • Flexible income options

  • Do away with debt

  • Get set for travel

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Going solo in retirement

With divorce rates rising among couples aged 55+, more people could find themselves going it alone in retirement. We explore the pros and cons for your lifestyle and finances and speak to Dianne Kemp about her experience of planning for retirement after divorce.

The key points are as follow :

  • The financial impact of divorce

  • Retirement, then divorce

  • The pros and cons of independence

  • Making the most of a settlement

  • Navigating changes and opportunities

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Will the world slip up on oil again? – after oil prices spike as attacks disrupt Saudi production

Shane Oliver, Head of Investment Strategy and Chief Economist.

The attached note takes a look at the risk posed to the global and Australian economies from the spike in oil prices. Key points are as follows:

  • Oil prices have risen over the last few days reflecting drone attacks that impact 6% of world oil supply.

  • The choke point for global growth from higher oil prices is normally a doubling in prices. We are a long way from that just yet. Key to watch will be how long the supply disruption lasts, whether there are more attacks and retaliation from Saudi Arabia and the US.

  • A significant spike in Australian petrol prices would pose a further threat to consumer spending and growth in Australia, adding to pressure on the RBA to ease further.

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Volatility: 10 key messages for investors

The attached note takes a look at the 10 key messages to help investors steer their portfolios through volatile times. The key points are as follows:

  1. Volatility is a normal part of long-term investing

  2. Over the long term, equity risk is usually rewarded

  3. Market corrections can create attractive opportunities

  4. Avoid stopping and starting investments

  5. The benefits of regular investing stack up

  6. Diversification of investments helps to smooth returns

  7. Invest in quality, dividend-paying stocks for regular income

  8. Reinvest income to increase total returns

  9. Don’t be swayed by sweeping sentiment

  10. Active investment can be a very successful strategy

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Australian house prices back from the abyss - seven things you need to know about the Australian property market

Shane Oliver, Head of Investment Strategy and Chief Economist.

The attached note takes a look at the outlook for the Australian residential property market. The key points are as follows:

  • The Australian housing market remains far more complicated than optimists & doomsters portray it to be.

  • Yes, it's expensive and heavily indebted but talk of mortgage stress is overstated & it's been undersupplied.

  • The combination of rate cuts, the election and a modest regulatory relaxation have helped turn property prices back up, but the upswing is likely to be constrained.

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Estate planning – when should I start?

Money & Life bring you expert insights from Chris Morcom CFP®, Director of Hewison Private Wealth and Bernie O’Sullivan, Principal at Bernie O’Sullivan Lawyers on why an estate plan is so important and when you should make a start on yours.

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The wallet challenge – savings and budget checklist

Budgeting and savings might sound very basic, but many people find it difficult to get these fundamentals right, or don’t have these in place at all. Here are some tips to help you get started, and on the right track to building your personal wealth.

The key points are :

  • Have a plan

  • Learn to budget

  • Be smarter about your costs

  • Become more disciplined

  • Better manage your debts

  • Get advice

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