Back in November we saw five reasons to expect a higher $A. These largely remain valid and the $A seems to be perking up again. Source: AMP Firstly, from a long-term perspective the $A remains somewhat cheap. The best guide to this is what is called Purchasing Power Parity (PPP) according to which exchange rates…
Conventional wisdom used to dictate Australians were better paying off their home loans, and then, once debt free turning their attention to building up their super. But with interest rates ramping up over the past two years and uncertainty as to when they are likely to reduce, what’s the right strategy in the current market?…
Let’s explore the ins and outs of salary sacrificing into your super and help you determine if it’s worth considering as part of your financial strategy. We’re all familiar with the concept of super. It’s that portion of our salary that employers are required to contribute to a super fund on our behalf, with the…
Asset allocation is the process of dividing funds between different asset classes including cash, bonds, property and shares. This takes place as spreading resources across different asset classes can help diversify the portfolio’s holdings, which is an important way to manage risk. In theory, asset classes rise and fall at different times. So, when one…
Australian shares fared well in July, buoyed by suggestions that no further interest rate hikes will be necessary. With inflation coming off the boil, there was optimism that borrowing costs have peaked and could be lowered later this year. In turn, this could be beneficial for corporate earnings. Returns from overseas shares were positive too,…
Common human biases that investors should understand when it comes to investing is extremely important. These biases are ingrained in human nature, leading to tendencies to oversimplify, rely on quick thinking or exhibit excessive confidence in judgments, which may lead to investment mistakes. By gaining insight into these biases, investors may be able to make…
AI is revolutionising the world of investing in ways previously unimaginable. Technological advancements have continuously reshaped the way we invest and manage our money. One such example that has been gaining significant traction and attracting a large amount of attention in recent years is AI (Artificial Intelligence) investing. With its ability to analyse vast amounts…
Investment funds can be broadly split into two categories – active and passive. And while both options play a part in an investment portfolio, it’s important to understand how each works before allocating money to them. Basics of passive investing Passive investing has gained momentum in Australia, and beyond, over the last decade. It could…
Tax is often the last thing on our minds when we’re planning for retirement but it’s important to understand how your retirement income will be taxed, so you can make the most of your savings. The good news is that super is a tax-effective way of building wealth for your retirement and the tax benefits…
We don’t need insurance until we do. Protecting your wellbeing and your wallet “Do I really need this insurance?” It’s probably a question you’ve asked at some point when deciding whether to part with your money. But maybe the real question should be “What if I became ill, how would we cope?” Your health and…