Introduction

A study conducted by the Australian Stock Exchange reported that nearly 25% of investors over the past two years were aged 18 to 24.

These young Australians were found to be knowledge seekers, keen to take on life and begin their journey towards financial security.

If this describes you, congratulations! You get it, you really do. You’re Next Generation Investors who know that building financial independence starts early.

Introduction

As most long-term investors know, investment markets have their ups and downs. The downs are usually associated with periods of uncertainty, perhaps due to political or economic factors, or even natural disasters. Uncertainty leads to volatility – more extreme movements in asset prices – which can have a big impact on portfolio values. This can be of particular concern if you are close to retirement and preparing for your last payday. So what can you do about it?

Introduction

As record numbers of Australians transition into retirement, considering your cost of living and comparing it to your expected average annual retirement income is a crucial step in retirement planning. For many Australians transitioning into retirement, the increasing cost of housing continues to be a burden on people's ability to pay off their property in their lifetime. This can lead to a few common scenarios — selling the property prior to retirement and renting, continuing to pay down the mortgage and leaving beneficiaries with an asset that has debt owing, or renting due to lack of affordable properties on the market. Naturally, this is a stressful situation for anyone to think about, whether you're about to retire or you're a young adult watching your parents plan for retirement.

Introduction

Many of us would like to think that ‘older’ means ‘wiser’, but when it comes to money that isn’t always the case. The complexity of Australia’s superannuation and pension systems doesn’t help. The upshot is that there are a number of common mistakes that retiring and retired Australians make.

What are those mistakes and how might you avoid them?

Introduction

Ready to make the leap from renting to buying a home? Well, before you begin the search for your perfect home there are lots of questions to find answers to. Here are some of the big ones.

Do you need to own your home?

What repayments can you afford?

How much can you borrow?

What’s it really going to cost?

What deposit do you need?

What’s your savings record?

Do you know how mortgages and interest rates work?

Fixed or variable?

How can you reduce your interest payments?

Ready to buy?

Do you understand everything, including all the fine print?

What insurance cover do you need?

Introduction

For most Australians, their 60s is the decade that marks retirement. For some this means a graceful slide into a fulfilling life of leisure, enjoying the fruits of a lifetime of hard work. However, for many it means a substantial drop in income and living standards. So how can you make the most of the last few years of work before taking that big step into retirement?

Are we there yet?

Introduction

The word “retirement” conjures up many images. While most baby boomers might be dreaming of more time on the golf course or booking a cruise, you might be thinking about buying a business. Crazy? Maybe not.

If you’re close to reaching your preservation age you will soon have access to your superannuation. An increasing number of people at this stage are taking control of their finances and buying themselves a new later-life career in the form of an established business.

Perhaps you’ve been retrenched and finding it difficult to land a new job. Or maybe, after a short period of retirement, you’re re-invigorated and ready to start afresh.

Introduction

Paul Taylor was a fit and active 45-year-old who drowned while swimming in surf on a family holiday. Witnessing this tragic event unfold from the beach were Paul’s wife, Sue, their 15-year-old daughter Sophie and 12-year-old son Zac.

Relatives and friends were a great support during the following days, but soon after the funeral, and still in a state of profound grief, Sue had to assess the state of the family finances. Until that time she wasn’t aware that the Taylors were amongst the 95% of Australian families that did not have adequate levels of life insurance.

Not alone...