A Beginners Guide to Debt Recycling
Debt recycling as a strategy is experiencing a vogue. One cannot spend a day on an Australian finance forum without seeing a question directly related to it. As with any financial strategy being explained on the internet, misconceptions are rife. This article will attempt to properly explain what debt recycling is, as well as specifically […]
A Final Word on Insurance Commissions
This article is a follow-up to a previously published piece about insurance commissions being paid to financial advisers. If you have not already read this, you can read it here. The article in question attracted some criticism from industry participants and happy clients of commission-based advisers. This new piece will attempt to address these criticisms […]
The Fear of Investment Volatility
It’s widely understood that to achieve higher returns, you must be willing to accept higher levels of volatility. We’re often conditioned to view volatility negatively, especially when it causes our investments to drop in value. We accept it though, because it is the cost we must endure in order to generate high long-term returns. But […]
Industry Fund Insurance: Work Rating
Default insurance coverage in industry super funds is very common, with many Australians using this as their only form of life insurance. What may not be commonly known however, is that this type of insurance often defaults to a blue-collar work rating when issued to members. Blue-collar work (generally manual labour) is considered to be […]
Is CHESS Ownership a Checkmate?
When starting your investing journey, you are automatically presented with a choice. It’s a choice that many new investors may not even know is there when deciding on their broker for ETFs or direct shares. The choice is: “Do I choose a CHESS sponsored broker or a broker under the custodian model?” If neither of […]
SMSF: The Pros and Cons
Self-Managed Super Funds (SMSFs) are an appealing option for many Australians seeking greater control over their retirement savings. While the potential benefits of an SMSF are substantial, it’s important to weigh them against the potential downsides. Given the strong opinions on both sides, often driven by vested interests, it can be challenging to get an […]
How Fees Compound to Destroy your Wealth
A famous quote from Albert Einstein often parroted by the finance industry goes: “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Although there is actually no proof that this was a quote by Einstein himself, the essence of the quote rings […]
Testamentary Trusts: A Will’s Best Friend?
The world of estate planning can be incredibly complex, doubly so considering the deep emotions involved when crafting your intentions for when you pass. Intentions rarely ever stay consistent over time either, so ensuring that your will is up to date is the best way to make sure they’re followed. But is there anything else […]
Hedging: what does it actually mean for my investments?
You’ve probably come across the term ‘hedging’ when choosing your investments either personally or within your super. This could be something like “International Share Fund – Hedged” or “Global Property Fund – Hedged” or “Hedged Global Bond Fund”. The first thing to understand that hedging is something that primarily applies to assets held outside of […]
Retirement Bonus: An unknown quirk of your super fund
To understand what a retirement bonus is, you must first understand how the average super fund is structured. The typical super fund (including industry funds) is what’s called a master trust. A master trust is where all the members’ money is pooled together into one, where it is then invested. This isn’t necessarily a bad […]
Misconceptions with Dividend Investing
Dividends are often touted as the way to make passive income with a share portfolio. After all, dividends are akin to the rent paid from an investment property, just with shares, right? Well… Dividends & distributions are not free money A very large misconception still exists within the world of investing. The idea is that […]
The Reality of Insurance Commissions
A quote along the lines of: “Don’t worry about the insurance commission on your quote; it’s not a cost to you; it’s paid by the insurance company.” is very common when an adviser gives insurance advice. This assertion is commonly heard when clients receive their Statement of Advice. On the surface, this appears beneficial, suggesting […]
