Exchange traded funds (ETFs) are a low-cost way to earn a return similar to an index or a commodity. They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy an sell shares.
Click here to read on how ETFs work, types of ETFs, pros and cons of investing in ETFs and how to trade ETFs.
We often hear that raising kids is expensive, but just how much will it cost you over the first five, ten, or twenty years? Click here for a closer look at the costs of each stage of life.
Are you guilty of changing your spending habits when you’re in a relationship? Do you have a financial plan, or are you relying on a partner to take care of you in retirement? Whatever your situation, there’s never been a better time to step up and take charge of your finances.
The most important thing is to make sure your finances are sound for you. This is especially true for women, who face extra hurdles to financial freedom. On average, women retire with 47% less super than men, so it pays to have a clear retirement plan.
Click here to read more
The attached note takes a look at the upswing now underway in the bond market.
The key points are as follows:
Higher bond yields are normal in economic recovery and should not be a major problem for shares if they are matched by rising earnings. But too rapid a rise in bond yields risks driving a deeper correction in shares.
Central banks want higher inflation but will look through any short-term spike.
The 40-year downtrend in inflation and bond yields is likely over.
But the fundamental backdrop of improving growth, rising profits and still low rates supports the case for solid 6-12 month returns from shares.
Work out your financial position
Start with a financial stocktake to work out what you own and what you owe.
Make a plan for your money
What are your money goals this year? Give yourself the best chance at achieving them.
Build a savings buffer
Having a financial safety net will give you peace of mind.
Tackle your debt
The good news is there are steps you can take to relieve the financial pressure.
Master the investing essentials
Planning is the key to successful investing. Creating a plan will help you find investments that fit your goals.
The attached note takes a look at the nine most common mistakes investors make.
The key points are as follows:
Many of the mistakes investors make are based on common sense rules of thumb that turn out to be wrong
As a result, it’s often wise for investors to turn common sense logic on its head.
The easiest way to avoid many of these mistakes is to have a long-term investment plan that aligns your financial goals with your risk tolerance
Click here know more.
Seven key global charts worth keeping an eye on by investors this year are:
the trend in new coronavirus cases and deaths;
global business conditions PMIs;
unemployment;
global inflation;
bond yields
the gap between earnings yields and bond yields; and
the US dollar.
Click here to access these charts
2020 turned out far better for diversified investors than had been feared when the pandemic hit, which triggered plunging market shares and deep recessions. The average balanced growth superannuation funds look like they have returned around 3%. This followed around 15% last year. Balanced growth funds returns have averaged about 7% per annum over the last five years, which is well above inflation and bank deposit returns.
The key points are:
2020 turned out far better for investors than was feared;
2021 is expected to provide solid returns and see a further rotation from pandemic winners to cyclical investments;
Watch: coronavirus and vaccines; US politics; China tensions; inflation; and the hit to immigration in Australia.
Click here to read Oliver’s Insights, and views on the investment outlook.
Feeling financially fragile after spending big during the festive season? Click here to learn about the pros and cons of different approaches to paying off credit card balances in Money & Life’s comprehensive debt-busting guide
Christmas 2020 will look a little different for many people, but there are still plenty of ways to enjoy the holiday season with friends and family.
Click here to read the current guidelines for how many people you can have over, where you can travel, and how many people can attend at vanues.
Who have you been turning to for money advice in 2020?
Click here to read insights from six leading financial planning professionals who have been helping their clients feel more confident in their finances this year.
Pfizer has recently conducted their Phase III COVID-19 vaccine trial, resulting in 90% efficacy. This outcome, paired with continued progress on other COVID-19 vaccines, therapeutics, and treatments, generates hope for a faster return to normalcy. The second half of 2021 will be a ramp up period towards societal “normalcy”, with a return to normal life for most people occurring sometime in 2022.
Please click here to read a brief interview between healthcare analyst, Andrew Waight, and Altrinsic’s Head of Client Experience, Sara Sikes, regarding the vaccine development.
Vice President Biden appears set to be the 46th President of the United States, most likely with a divided Congress. A split Congress has two opposing effects on growth. On the positive side, it should mean that more centrist policies are likely to be pursued, all of which are constructive for growth. Conversely, a Republican controlled US senate is likely to pursue a material decline of the US fiscal deficit, which is set to underpin a large US fiscal drag in 2021.
Click here to read more on Perpetual Investments’ thoughts on the US economy amidst the change of Presidency and the surging pandemic.
We are all living longer, fuller lives, and for many people retirement may now span almost as long as our working careers. We are at a tipping point, with a huge number of baby boomers set to retire and a global pandemic changing the landscape.
The statistics paint a concerning picture, with the average Australian set to outlive their money by 11 years.
Click here to read Kate and Tony’s story, and how they plan on their retirement funding to last the distance.
If you’re feeling the heat of mounting bills, don’t panic. You can negotiate a better deal that lets you hang onto your cash while you weather the COVID-19 pandemic.
Household electricity, gas, and water use have all jumped by upwards of 15% - meaning that many of us are facing hefty bills on top of lower than usual income. I
If you need to rein in your spending, or you’re struggling to pay your debts due to ongoing financial hardship, you can negotiate a better deal.
Click here to read more on your options, how to negotiate with creditors, and what to do if you are still in debt.
The linked article takes a look at what Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital, sees as the nine keys to being a successful investor, and what impact the coronavirus shock has had on them.
Even in good times, successful investing can be stressful. For this reason, it’s useful for investors to keep a key set of things - call them rules - in mind.
The key rules are:
make the most of compound interest;
don’t get thrown off by the cycle;
invest for the long term;
diversify;
turn down the noise;
buy low and sell high;
beware of the crowd;
focus on investments offering a sustainable cash flow; and
seek advice.
Please click here to read further.
Is lockdown fatigue getting the better of you? If you’re dreaming of a beachside holiday, you might be wondering if it’s safe to make travel plans.
With summer on the horizon and the country stuck in various levels of lockdown, many of us will be craving a change of scene.
Click here to read more on planning travel now and into the future.
In 2020, COVID-19 has introduced significant health risks and changes to family life. It’s now more important to have an estate plan so that you can make sure your family and loved ones are looked after should you become ill and die.
Click here to read more on what an estate plan is, Powers of Attorney, how to make a Will, and what happens if you don’t have a Will.
As COVID-19 continues to damage Australia’s economy and impact the job market, it’s becoming increasingly clear that the pandemic is presenting many people with significant challenges.
Click here to read Beyond Blue’s chat with Laura Higgins, head of moneysmart.gov.au, about why getting on top of your finances is so important for mental wellbeing.
It’s a confronting thought, but elder abuse is more common in families than in aged care facilities. The most likely form is financial, and it often results from well-intentioned plans that go wrong. Click here to read on some ideas on how to help your family avoid the pitfalls.