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Learn the super and become your own super hero

What is super? Superannuation is a way to save for your retirement. The money comes from contributions made into your super fund by your employer and, ideally, topped up by your own money. Sometimes the government will add to it through co-contributions and the low income super contribution. Your employer must pay 9.5% of your salary into a super fund. This is called the Super Guarantee and it’s the law. The Super Guarantee will gradually increase to 12% in coming years. Over the course of your working life, these contributions from your employer add up, or ‘accumulate’. Your super money is […]

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Six Reasons You Should Invest in Income Protection Insurance

It’s easy to think your income is going to be a permanent fixture in your life – if you’ve got a stable job, why should you worry about losing your stable income, right? Unfortunately, you can’t predict the future. While we all feel invincible, accidents and illnesses can happen. Should you fall ill or sustain a nasty injury, you may find yourself unable to work. We have prepared a simple and convenient list of those 6 things you need to know to understand why it’s important to have Income Protection insurance. Income Protection guarantees ongoing quality of life There’s nothing better […]

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It is vital that more people get advice when making decisions about switching their fund

In the three years to November 2015, the average amount of superannuation switched per year was over $35 billion — the result of 3.2% of superannuation products being switched annually. Of some concern however, given the dollars involved, is the fact that 31% of those switching didn’t receive any advice. These are the latest findings from the Roy Morgan Single Source survey which included interviews with more than 100,000 people with superannuation over the last three years. Financial planners/advisors the main source of advice Just over one quarter (26.9%) of those switching their superannuation over the last three years got […]

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House for rent or house for sale: Which property option is best for Australians?

The answer depends largely on the type of lifestyle you value It’s a question that many Australians wrestle with: is it better to rent or to buy? We let the economists weigh in. Increased speculation that house prices may have peaked will be music to the ears of buyers anxiously waiting to get into a hot property market. But what if they still can’t afford the house they want in the area in which they want to live? What if they lose their job and can no longer pay the mortgage? Would they be better off renting? Two Reserve Bank […]

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The Appeal of Managed Portfolios

Age does make a difference when it comes to investing. Baby Boomers, Generation X and Generation Y have diverse investment needs, depending on what stage of life they are in. Managed portfolios are an attractive investment for all generations. Oscar Wilde is quoted to have said : “With age comes wisdom, but sometimes age comes alone.” When it comes to investing, the needs of investors have traditionally been determined according to their age, with generations typically grouped as Baby Boomers, Generation X and Generation Y. There is such a diverse cross section covered by these generations. Some people will have […]

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Do you know how to read superannuation statement

People should take a good look at the super statement at least once a year, to make sure it’s matching up with what the fund has said it will do. 1) At age 65 Possibly the first thing you might see on your statement, even before you get to the balance, is what your balance might look like at age 65. Don’t confuse this with your current balance! Remember, a lot of assumptions have gone into that number. For a start, it will be assuming a certain rate of investment returns –say, 3 per cent per annum after inflation, and that […]

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Avoid A New Year Spending Hangover

    Excessive credit card usage is typically highest in December – only for us to then be hit with a very scary statement in January. Not a great financial start to the new year! Here are some simple tips to avoid a new year spending hangover. If you take action now to limit your spending, you may also protect your credit score in the process. Start out on the right track this year with a simple festive season budget for individual gifts, food and drinks for entertaining. And maybe a summer holiday? Don’t forget to factor in the cost […]

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Economic Review October 2015

Australian Developments in China will continue to remain the key driver for the Australian economy. On that score, signs of a stabilisation in property prices and rumours of more stimulatory policies supported Chinese asset prices and commodity prices more generally in recent weeks. The delay to Fed tightening also helped improve sentiment. Global The slowdown in China and emerging economies more generally, has been the source of global growth downgrades and recent market volatility. Indeed, global GDP growth is set to slow to 3.1% this year, the lowest rate of expansion since the crisis,

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The Leadership Vacuum

My personal trainer, Rico, is also a drummer. He told me a story about being invited to play with a group of musicians who were more talented than he was. Being a little nervous to play with these musicians, he made the mistake a drummer can’t afford to make: He followed instead of led. Shortly into their first song, the lead guitar player stopped playing and waved off the other musicians, who stopped also. Then he turned to Rico sitting behind his drum set and yelled, “Hey, Rico, you’re the drummer! You’re supposed to be driving this train, not riding […]

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The Growing Threat of Business ‘Fossilisation’

The effects of the ‘fossilisation’ of many mature family businesses and other small-to-medium enterprises are already becoming apparent throughout our economy in the form of increasing business closures and job losses. This trend will continue to impact commercial capacity and financial resources, and should be stimulating the Australian business community, and government, to do far more than they’re currently doing to meet the threat. This business fossilisation is another outcome of the GFC that has yet to be fully understood, but the ramifications are being felt in family-owned businesses across the country, and around the world. As a result of […]

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