If your portfolio contains assets held in a foreign currency, there is a risk that returns might be impacted by fluctuations in exchange rates. As a result, it can be worthwhile knowing how currency fluctuations impact returns. But what exactly is currency hedging, and is it worth the extra costs? How do currency fluctuations affect […]
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Super Recontribution Strategy
Although it may sound a little odd, taking money out of super and putting it back in can actually be beneficial by reducing the amount of potential tax you or your dependents may pay in the future. A recontribution strategy aims to increase the ‘tax-free’ component of your super account while reducing the ‘taxable’ amount. […]
Interest rates are higher, why aren’t house prices lower?
Rising interest rates usually mean bad news for homeowners, as the cost of servicing existing mortgages goes up and consumers start to feel the pinch. You’d expect this to have a knock-on effect on house prices – higher rates should mean lower house prices as more people are pushed out of (or unable to enter) […]
Higher Minimum Pensions from 1 July 2023
The recent 50% reduction in the minimum Account Based Pension withdrawal requirement came to an end on 1 July 2023. This was a temporary measure during and after COVID and was designed to reduce the depletion of ABPs in times of lower investment returns. From 1 July 2023, the minimum withdrawal percentages are reverting to […]
What is an SMSF and is it right for you?
What is an SMSF? A Self-Managed Super Fund (SMSF) does what it says on the tin – you manage your superannuation yourself, instead of delegating the management of your retirement savings to a large institution. In practice, very few people “Self Manage” their retirement savings entirely as they enlist the help of an adviser to […]
Why Do Unit Prices Fall After 30 June?
Most managed investments including Exchange Traded Funds (ETFs) are offered by way of units in a unit trust. Units are to a unit trust what shares are to a company; they are the bits that fractionalise ownership. Unit prices often fall on the 1st of July when distributions are paid. Why does this happen? The […]
Term Deposits: The Upside of Higher Interest Rates
Rising interest rates bring many disadvantages to individuals in the economy – especially for anyone with debt – so it’s unsurprising that most of us approach the news of another rate hike with trepidation. But one key advantage of higher rates is the better returns on savings accounts and term deposits. Over the last 12 […]
End of Financial Year Tax Return Tips
Our super-organised readers probably associate 30 June with preparing your tax return, so here are a few tips to help you out. While the exact nature of whether an expense is tax deductible is on a case by base basis, the following is a guide as to what you may be able to. For most […]
2022 in Review
As the end of the year approaches yet again, you might be reflecting on how things have changed over the past 12 months. Many unexpected world events have happened lately, including a global pandemic, war in Ukraine, and inflation taking over. Well composed articles about the future can be entertaining, but little more. However educated […]
Reverse Mortgages
It’s a common scenario for older Australians – asset rich, cash poor. Owning a valuable home and having little income can be an issue, but there are ways around this other than selling your house. Below we look at the workings of a reverse mortgage. What are they? It is called a reverse mortgage as […]