superannuation

Don’t accidentally lose your life cover

Don’t accidentally lose your life cover

For some people, the life and permanent disability insurance they hold within their super fund is the only life insurance they have.  They may be unaware that this insurance may be cancelled by their super fund, without their explicit consent on 1st July this year. The change in rules has come about because the government is concerned about the erosion of members’ super balances due to fees and charges for things they don’t need or

Women and Super

Women and Super

I was recently having a chat over coffee with a group of other Mums in business (truthfully I was doing a bit of market research) and I asked them if they felt that they had less super savings than they should have considering their ages and stages.  A conversation then followed about the gender pay-gap, taking time out of the workforce to raise a family and finding yourself sole breadwinner due to either illness or

The Basics about Gearing

The Basics about Gearing

With recent announcements from the major banks that they are raising interest rates on investment property mortgages, I think it is timely to talk about geared investments. In simple terms, a geared investment is one where some or all of the funds being invested are borrowed.  The investor pays the interest on the loan with the intent that the investment return will be greater than the interest paid on the borrowings.  The equation may also

Self Employed – Don’t neglect your super

Self Employed – Don’t neglect your super

When you are in business for yourself you very much have all your eggs in one basket.  You are investing in your own success and putting your money where your mouth is.  There is no employer to look after your payroll admin, no employee benefits, sick pay or long service leave.  There is probably no Superannuation Guarantee. All consuming as running a small business is, it is still important to take the long term view

How to invest when you can’t predict the future

How to invest when you can’t predict the future

If only it was possible to predict the future.  Whether it be the lottery, the stock market or even which career to choose, we could always be certain of picking the winner.  Unfortunately life isn’t like that and we can only make decisions based on the information that is available at the time. Some investment advisers may try to give the impression that they have expert or inside knowledge of what is going to happen;

Make the most of your super timeframe

Make the most of your super timeframe

It is often said that compound interest is the 8th wonder of the world.  What could be better than earning interest on the interest on your interest?  And the longer time you have, the more it works.  Put your money in and leave it to grow all by itself. The superannuation system takes advantage of this; regular saving throughout a person’s working life plus the regular addition of investment returns is designed to help us

5 Things you should know about your Annual Super Statement

5 Things you should know about your Annual Super Statement

    It is that time of year again! Superannuation fund providers are preparing and sending out their annual statements. When yours arrives, here are a few things to check before filing it away.     1. Did you get more than one statement? If you have multiple superannuation accounts, it really is worth considering consolidating them. This will usually enable you to save on administration fees as well as making it easier to keep

Financial Advice is Good For Your Health

Financial Advice is Good For Your Health

A newly published piece of research claims that people who receive advice about their finances have higher levels of health and well being. Confident though I am in the value of good advice, this seemed a bit like a magic bullet to me.  On closer inspection it seems that it is not just simple cause and effect. The missing link is that the process of getting assistance from a financial planner increases the recipient’s financial

Reduce the mortgage or contribute to super, that is the question

Reduce the mortgage or contribute to super, that is the question

Out of the blue you receive a cash windfall, it is a decent amount and definitely extra above what you need to meet your normal living expenses. You decide not to blow it on some luxury treat for yourself and to put it to use to improve your financial situation. But which would be the best choice, put it into the mortgage, or into super? The answer, as with most things in financial planning, is