Indholdsfortegnelse for October 2022 i Money Magazine

MY MONEY, MY LIFE I've always liked to work. My first paid job was at a small, local fresh fruit and veg shop. For two years I sacrificed 2½ hours every Sunday morning to earn a mere $12. I wanted to stay in bed, but I needed that money to hang out on the weekend. No other place would hire a 15-yearold school kid, so I didn't have many options. Earning money the hard way from a young age has helped me to manage tight budgets and to value money and my job. Part-time jobs helped me to survive secondary school and university, from cleaning, working on construction sites, stocking shelves at supermarkets during late nights and making coffee as a barista. I wasn't really fussed about the type of…

For years, talking about sex and money was taboo. But thanks to an array of books and shows like Sex and the City, sex became simply something else we talked about. I, for one, would love money to be given the same treatment. For a moment, I thought that had happened. When the pandemic first hit, we had to talk about money. If you're facing the possibility of no income and no savings, you can quickly let go of your polite veneer. The problem is, after dealing with lockdowns, stimulus payments, rising interest rates, declining financial literacy and a rising cost of living, it's easy to become financially fatigued. Perhaps that's why I see women in particular reverting to their pre-Covid position that talking about money is crass. Part of…

The fallout from an increasing number of extreme weather events is flowing through to home insurance premiums, prompting a growing number of households to question whether they will be able to pay for cover in years to come. A recent survey of 1083 households conducted by the consumer advocate Choice found that nearly two-thirds of Australians were either quite or very concerned about the affordability of home insurance. This is perhaps hardly surprising given that, in analysing home insurance quotes, Choice found that prices have risen considerably in recent years. “Home insurance premium quotes have increased by 72% over the past five years across the country,” says Choice insurance campaigner Dean Price. He also warns that if insurance costs continue to rise, even more homes will be left without adequate…

MORE SHARES STORIES ON P76-89 TURBULENCE Online investors take a breather Retail investor numbers have dropped as pandemic-driven hype dampens confidence, according to an Investment Trends report, 2022 First Half Australia Online Investing. It reveals retail online investor numbers have begun to ease. An estimated 1.47 million unique individuals placed (at least) one online trade on stocks or exchange traded funds in the 12 months ending in June 2022, down from 1.52 million for the year ended November 2021. “The combination of interest rate rises, market downturn and inflation have all contributed to this outcome,” says Irene Guiamatsia, head of research at Investment Trends. Two key engines of growth softened during the period. Inflows of first-timers continue to shrink towards pre-pandemic levels, while surging dormancy rates persist. The research also…

ASK PAUL Q&A NEED PAUL'S HELP? Send your questions to: Ask Paul, Money magazine, Level 7,55 Clarence Street, Sydney NSW 2000 or money@moneymag.com.au. Sorry, but Paul can't personally answer your questions other than in the Q&A column. By submitting your question to Money, you consent to having your question and the response you receive from Paul published in the print and digital edition of Money. Q My 82-year-old mother is selling her home and moving in with my sister. Mum would like to gift money to each of her six adult children. What are the rules and implications regarding her aged pension? How much can she gift? And how much should she invest and where? Thank you. Good on your mum. I am not sure whether to laugh or cry…

While having your vehicle maintenance handled by professionals is important, inspecting your car yourself can also save you money. Tyres Correct pressure is the surest way to prolong tyre life, reduce fuel consumption and maintain safe contact with the road. Consult your owner's manual or tyre placard (a sticker, usually inside one of the doors) if you need to confirm pressures. Remember a little higher is better than lower. Lights Have someone press the brake pedal with the ignition switched to “on” and/or the engine running. Walk around the back of the car; ask the driver to Iift their foot off the pedal and reapply pressure to determine that the brake lights are operational on both sides. Turn parking lights on and walk around the car, making sure that each…

What is it? October is Mental Health Month, and the Black Dog Institute wants Aussies to walk, run or roll in solidarity with those who are struggling with mental health. One in five of us experiences symptoms of mental illness each year, but more than half will not seek help. Sign up for the One Foot Forward campaign, log every kilometre you walk, run or roll in October, and share your page online to help garner donations. In last year's campaign, 9830 people signed up, raising more than $637,000. Where your money goes: Black Dog is the only medical institute in Australia focused on researching mental health for all ages. On November 10 in Sydney, it will bring together leading researchers and clinicians from around the world at a Summit…

As researchers involved in the Dunedin experiment discovered, El is the only major predictor of success in life, with factors such as IQ, academic performance, culture, experience or hereditary wealth having little to no predictive validity. The good news is there are ways to help understand, manage and even strengthen your Ei in order to develop more emotionally intelligent financial habits. I Pay now, buy later. Find ways to practise the art of delaying gratification. This can be paying down loans quicker, lowering spending to increase savings or packing a DIY lunch in order to enjoy a sumptuous dinner. Whatever it is, keep asking yourself, “Will I be better off tomorrow if I don't do this today?” 2 Break the generational taboos. We all inherit attitudes and behaviours from our…

What is it? Started in Melbourne in 2010 by Tamara DiMattina, Buy Nothing New Month is a movement that has since spread around the world. As the name implies, the challenge is to avoid buying anything new for an entire month to help get us thinking a little bit more about our consumption. Of course, everyday essentials aren't included, and sourcing second-hand goods is encouraged. When is it? Every October (right now). How can you get involved? It's as easy as doing it yourself, but if you'd like a bit of help keeping yourself accountable, you can make a pledge through the Buy Nothing New website: buynothingnew.com.au/pledge.…

FAMILY MONEY Susan Hely When I was 14, I got my first holiday job in a light-fitting factory. So I could be at work at 7.30am, I walked six blocks in the dark to catch a bus, then another 10 blocks at the other end. Every holiday I had some sort of job: I worked in a restaurant kitchen and in a kiosk selling ice-creams and snacks, I delivered the local newspaper on foot and, when I turned 17, I worked at a suburban pub, cleaning the rooms used by travelling salesmen. My partner started working at 14 in a whitegoods factory, then in the loading dock and later the lay-by area of a department store. He suspects his dad wanted him to see what life would be like if…

Anthony O'Brien SMALL BUSINESS Franchising is a popular way to start and operate a successful small business. According to the business adviser IBISWorld, the market size for franchised outlets in Australia is $172 billion, and more than 94,500 small businesses operate as franchised outlets, employing over 565,000 people. Franchising is flourishing in businesses ranging from travel, pet supplies, motoring and home maintenance to bookkeeping, mortgage broking and real estate. But is franchising the right move for every aspiring SME owner? Franchising is a category of business operation where the SME owner (called franchisee) pays a fee for the right to offer, sell or distribute goods or services under a business system designed by the business founder (called the franchisor). A franchisor such as McDonald's and 7-Eleven provide leadership, advice, training…

REAL ESTATE Pam Walkey Normally, the news that residential property prices are falling - meaning the market is starting to favour buyers ahead of sellers - would be met with a sigh of relief by those trying to buy their first home. But fast rising interest rates, imposed by the Reserve Bank to curb galloping inflation, have thrown first home buyers a curve ball. Some will no longer be eligible for a mortgage and even if they do qualify many fear they won't be able to meet ever-rising mortgage payments. This is not the case for investors. Under our current tax system, investors can claim a tax deduction for the interest they pay on mortgages on their investment properties. Indeed, negative gearing allows property investors who make a loss to…

You can contribute up to $27,500 a year on a pre-tax basis into superannuation regardless of your age and income. This limit includes all contributions paid through your employer or for which you intend to claim a tax deduction. If you contribute more than $27,500, you may have to pay a special tax levy. If you earn less than $57,016 a year, you may be entitled to a special government co-contribution of up to $500. Among other eligibility criteria, your super balance must be less than $1.7 million on June 30 of the previous financial year. You can contribute up to $110,000 a year, or $330,000 over three years, from your after-tax income.…

When you join MySuper or any other super product, you may get a minimum level of insurance cover. This standard usually comprises death and TPD cover, although some funds also include income protection cover. The cost and amount of this cover varies depending on your super fund. Almost all super funds allow you to take out extra insurance and customise your cover. If you under 25, you may not have to take out this standard cover. Source: The Good Super Guide, Rainmaker Information…

BEST IN BREED Scott Phillips They are the investment option that is quietly, if not imperceptibly, shaking up the financial world. No, I'm not talking about cryptocurrencies. And I'm not talking about non-fungible tokens (or NFTs). They are attracting billions and billions of dollars every month, but they're not private equity funds or renewables. They are exchange traded funds - more commonly ETFs. And they're recasting the investment landscape. In fact, according to the Financial Times: “In the US, ETF assets jumped 185% to $7.2 trillion in the five years to 2021, according to the Investment Company Institute, while those of mutual funds rose 65% to $27 trillion over the same period. Globally, ETF assets have more than tripled to $10.1 trillion since 2015, according to consultancy ETFGI.” That's a…

Alex Dunnin OUTLOOK In millennia past, India, China and the Middle East ruled the world's economy. It's estimated that in the year 1000, India held almost 30% of world GDP, China about 22%, with western Europe and the Middle East on about 10% each. But the industrial revolution changed everything. Rapid technological changes in Britain and then parts of developing Europe meant that small nations could use technology and the productivity increases it unleashed as force-multipliers. It was so transformative that by 1850 it was estimated that Britain, France, Spain, Russia and the emerging US held half the global economy. Globalisation of technology, supply chains, resources and finance have, however, begun to level the playing fields, meaning that by and large nations with the largest populations and workforces - assuming…

CALENDAR OF EVENTS Tuesday, October 4 RBA interest rate decision Thursday, October 6 Balance of trade Tuesday, October 11 Westpac consumer confidence Wednesday, October 12 NAB business confidence Thursday, October 20 Unemployment rate Wednesday, October 26 Inflation rate THE BUZZ How microfinance can make a difference After escaping the terrorist group ISIS with her young family, Raghad Macksabo has started a business importing garments from Turkey and selling them in Australia. Mumof-three Michline Saloumi, who escaped the war in Syria, has realised a dream and opened Misha's Cafe. Both women have benefited from Grameen Australia's new microenterprise program aimed at supporting women on low incomes to set up their own small business. Having received $3.5 million in funding from the Australian government last year, global microfinance leader Grameen has launched…

BOOK OF THE MONTH LIFE ADMIN HACKS Mia Northrop and Dinah Rowe-Roberts HarperCollins, RRP $34.99 Mental overload is becoming more of an issue these days, so identifying areas where you can reduce that load can be lifechanging. The authors of Life Admin Hacks have come up with a set of smart strategies to help you streamline your life and come out the other side, minus the overwhelm. Life Admin Hacks covers all the important things, from managing passwords, meal planning and outsourcing household tasks to staying on top of tax records and your superannuation to planning holidays and thriving - rather than surviving - at Christmas. DEBRA DUNCAN Five readers can win a copy. In 25 words or less, tell us about a life hack you've tried that has helped…

Wesfarmers has reported a recovery after the lockdown-affected first half, with Kmart Group a highlight. Profits were further boosted by the benefits of the Target restructuring, rising 19% in the second half, excluding Catch, after a first-half decline of 56%. Management indicated that higher inventory levels were to mitigate supply chain risks, particularly in the lead-up to Christmas, and that the extra stock is in non-seasonal items. However, concerns around margins will linger while stock remains high. Bunnings managed an 8% rise in second-half sales (after a 2% increase in the first half), driven by strong growth in trade sales. Officeworks suffered because of the Omicron wave and temporary disruptions due to the opening of a new distribution centre in Victoria, while online marketplace Catch continues to disappoint. As expected,…

QPaul, I'm starting from scratch. I had really good financial integrity (or so I thought), but I'm recovering from severe depression and two suicide attempts and have been unemployed for six months. As you can see, it was a perfect storm. I'm all on the mend and have the right support in place. In a nutshell, I became bankrupt to help move us forward and during that depression I blew nearly $20,000 of my and my wife's savings and kept it under wraps. Now it's all exposed and I have made a commitment to repay it, plus get back to where we were, tail between my legs and all.  I know in myself I'm not that person that stuffed up, but I have to be accountable. Where can I go,…

Q We gifted our two sons money to buy their homes (we scrimped, sacrificed and saved to help them out - it's their inheritance}. How do they/we protect their assets if/when they become partnered, considering the high number of relationships that break down? Excellent question, Mel. This is a challenge for all parents trying to support their kids. I am not a lawyer but have discussed this issue with a number of expert legal people. The advice I have received over the years has been quite consistent. Naturally, you should seek your own legal advice from your solicitor, but the key themes are to document the money you provide as a loan. This requires an agreement, best done by a solicitor. This should contain the terms of the loan and…

Grown and made by Emmanuelle and Toby Bekkers and available from their stylish cellar door, this is an outstanding regional wine. Perhaps more restrained than stereotypical McLaren Vale shiraz, the 2020 red is surprisingly approachable, gently aromatic and deep with mulberry and blackberry flavours, finishing with substantial yet fine tannins that linger. Made in tiny quantities but worth seeking out in top restaurants or retailers, or online.…

Paul Clitlieroe PAUL'S VERDICT CASE STUDY I've sold a house in Sydney and bought another cheaper one so I could be mortgage free. I'm 63 and I'd like to invest the extra but am terrified when I keep reading about scams in the financial industry. How can I find an adviser I trust, and how can I understand if the advice I am receiving is sound? And what would you suggest I do in my situation? Alexandra, you are not alone with this issue. Over the past 40 years or so that I have been answering readers, radio listeners or TV viewers, it would be one of the most common questions. This in itself is a bad indictment of the financial advice industry. I know it is easy for me to…

The first step to understanding anything is to build a language around it to house understanding. Try thinking about something that you don't have a word for - it's impossible. To articulate is to think. Words are the conceptual vessels that help us explore and learn. To take this further, you need words to have specific meaning in order to create mental frameworks. For instance, it is one thing to be able to articulate that you are angry, but simply saying you are angry gives no indication of how angry or how aroused you are. Within the bucket of angry emotions you could be annoyed, irritated, frustrated, fuming or furious. Each of these has a different level of cognitive arousal, a different level of control. Creating a language of emotions…

One of the great strengths of human beings is our ability to evolve. And unlike physical features, our attitude to money is not genetically determined. So it is possible to change your money personality. Getting to know yourself better isn't always easy. Changing can be even harder. But if your money personality is the thing that's holding back your financial wellbeing, it's worth the effort. Set some goals or a money roadmap to follow. Aim for small changes at first and track your progress. Change may not happen overnight, but with patience and persistence you can alter your money personality and the reward can be a brighter financial future.…

WHAT IF? Annette Sampson THE PROBLEM As most workers would know, it has been hard to get a pay rise in recent years. And with inflation picking up, the cost of living has become a big issue for households. But low wages growth is not just a recent thing. In its issues paper released before last month's jobs summit, the federal government said real wages (after inflation) have grown by only 0.1% a year over the past decade and have declined substantially over the past year. With inflation currently running at over 6% and predicted to come closer to 8% by the end of the year, wage earners have good reason to feel they're going backwards, even if they manage to land a pay rise of 2% or 3%. While…

Parents can help their kids learn about their rights and how to keep records of their shifts, pay, starting and finishing times and roster arrangements, explains the ACTU, the peak body for unions. It is important for kids to be clear with their employer and give them plenty of advance notice about upcoming holidays or other demands. As well as telling them verbally, send them a text or email outlining problem dates, so they have a hard copy. Demanding employers can cancel regular shifts, add extra shifts and be unsympathetic about taking time off for exams. Often kids are laid off for no reason. The ACTU warns that young people can get ripped off in summer jobs, in areas such as: Unpaid trials. Underpayment of wages and penalty rates. Workplace…

PROPERTY FINANCE Obeying the golden rule of selling before buying when it comes to real estate isn't always in your best interests. After months of looking, you find your dream home in a tightly held suburb at a great price and you want to snap it up before anyone else does. But what do you do if you haven't sold your current abode, which has its own mortgage attached? One option is a bridging loan. It does exactly what its name implies. It serves as a bridge between the sale of one property and the purchase of another. These types of loans are designed to cover the purchase price of a second property and give the borrower the time to sell their existing property. But before you sign on the…

If you're receiving income as a freelancer, gig worker or sole trader, generally the responsibility for making super contributions is on you (known as voluntary contributions or after-tax contributions). If you are seif-employed or a freelancer then you can claim super contributions as a tax deduction. There is no minimum amount you're required to contribute, and while 10% is a good rule of thumb, it depends on your situation and income. However, if you're employed by your own company, then the company is required to make contributions on your behalf. Often contract workers may be eligible for employer contributions, depending on the working arrangements. If you are freelance or selfemployed, check if you're covered by your fund's insurance.…

Self-managed super funds (SMSFs) are those where small groups of individual members (six or less) decide to operate their own fund. In technical terms, all the members of an SMSF must be trustees of the fund or they must pay a professional trustee company to provide this service. Anybody can run an SMSF, but because they can often cost several thousand dollars each year to run. they are mostly suited to people with several hundred thousand dollars in superannuation. Establishing and operating an SMSF is a major financial decision and you should first discuss your personal circumstances with a qualified professional. In addition to setting up the SMSF's trust deed, appointing the trustees, preparing the investment strategy and deciding on investments, you must ensure that it satisfies all the annual…

MANAGED FUNDS Max Riaz One of the foregone conclusions of life is that almost all decisions and choices you make will come with a level of risk or potential for losses. Your choice to drive the car to work comes with your acceptance of the risk of an accident. If you are elderly and frail, your choice to get out of bed and go for a walk for the health benefits comes with the risk of falling. If you are an investor, you are accepting that share prices may go negative over the short term, and make you feel poorer, against your well-rationalised basis for investing for wealth generation over the long term. For some of us, the fear of loss can be too intense and debilitating. In fact, loss…

THIS MONTH Marcus Padley If I was to give you a stock tip, what would you do? I'll tell you. You'd do what you always do, whatever that is. Everybody has their process for assessing what stock to buy and when - a habit, if you like - and it is the integrity of this very individual process that makes the difference between a successful investor and a bunny. The top fund managers and investors are not lucky - they have not been blessed with a genetic ability to predict future share prices. Their success comes from the development and refinement of a process for picking, timing, buying and selling stocks, and to develop such a process requires hard work, effort, losses, experience and an investment of time. You already…

“I Want to be the Jack of all trades and master of none” What is your first experience managing your finances? At 14, I was given a wage by my parents. We're not talking Paris Hilton - it would have been about 50 pounds a week, but it felt like a lot. They bought food and put a roof over my head and then I had to buy everything, from lady things right through to school trips. They were trying to teach me the value of money, but I didn't have the frontal cortex yet. I was about four grand in debt by the time I was 18.1 would say that their intentions were good, but maybe what I took from it was not the intended. What's the most valuable…

TRACIE ELLIS Contributing writer “With the rising cost of living, we've all had to make changes. Giving up some branded items in my grocery shopping has seen me making alternative (and more cost-effective) choices. While I believe there is a difference between branded products and their cheaper alternatives, with some products there is no justification for the extra spend. Trying alternatives has resulted in our grocery bill (for my family of six) remaining under control.” DAVID MATTHEWS Designer “I've given overseas travel a miss for the time being. Apart from my passport lapsing during the last lockdown, things like airfare hikes and travel insurance insecurity haven't inspired me. Big ups for those who do venture across the waves though (including my brother who's in Italy). We live in a huge,…

The federal government's recent announcement regarding token mapping (grouping types of crypto assets based on their technological features and underlying code) and consumer protections recognises the significance of Australia's digital asset infrastructure. As an Australian-owned and -operated crypto exchange, BTC Markets submitted feedback to both the Senate Committee on Australia as a Technology and Financial Centre and the Treasury consultation paper on licensing and custody requirements for the crypto industry. In our 2020 submission to the Senate committee, we stated: “Regulation sets the tone. It builds the culture and facilitates the flow of capital and manifesting of skills in our workforce, it also provides surety as to the direction for investment and jobs growth.” Token mapping will provide greater clarity to crypto investors, aid companies in developing their own blockchain-based…

FRIENDS WITH MONEY #63: SMART INVESTING FOR THE BARGAIN HUNTER The average Australian is struggling under the weight of rising food prices, skyrocketing mortgage interest rates, falling house prices and everything in between. That's the not-so-good news. On the flipside, however, as a result of the recent economic downturn, savvy investors are being presented with opportunities to nab a bargain. In this podcast, host Tom Watson and personal finance journalist Nicola Field look at where some of these investment opportunities lie, weigh up the pros and cons of each, and identify the pitfalls investors need to watch out for. SCAN THIS CODE TO ACCESS ALL OUR FRIENDS WITH MONEY PODCASTS…

HOUSE PRICES Downturn spreads to the regions Property prices across the country continue to retreat, with CoreLogic announcing a fourth straight monthly drop in its national Home Value Index. Price declines even appear to be ramping up, as the 1.6% national drop recorded by CoreLogic during August was the largest fall since 1983. Sydney led the capital city house values down once again with a 2.3% drop over the month, though Brisbane (1.8%), Canberra (1.7%) and Hobart (1.7%) weren't far behind. And after experiencing price growth higher than that recorded in most capital cities during the recent boom, regional areas are also starting to show signs of a downturn, with figures from both CoreLogic and fellow research firm PropTrack indicating that regional home prices went backwards during August. “The largest…

This month sees the auction of four limited edition Gibson Les Paul Custom electric guitars that Paul McCartney and Slash have performed with. Gibson Guitars for Peace initiative aims to raise awareness and funds for the people of Ukraine, with 100% of the money to be donated to humanitarian relief. The guitars feature the blue and gold colours of the Ukranian flag, and autograph books that have travelled alongside the guitars will also go under the hammer through Julien's Auctions in New York. But apart from the initial feelgood factor and resulting conversation starter to hang on the wall, does music memorabilia make a sound investment? MoneyMagpie.com says, as a rule, it's best to concentrate on a particular artist or era and start to build up a specific collection rather…

As an accountant and investment banker, Grant Wilckens gained expertise in managing large international property deals. He lined up money for Frankfurt's airport and Hong Kong's underground Metro. So, when he returned home to Adelaide from London in 2004, he put this experience to use in an opportunity that had long been overlooked. He spotted that holiday parks were essentially a cottage industry, but the right ones had plenty of potential. Wilckens decided to try a roll-up, buying a number of them for a property trust to be run under the name G'Day Parks. He focused on regional locations, but when the GFC hit four years later, he switched to putting customers first. It was a big change in mindset, from running a property business to focusing on paying guests.…

ASK PAUL Q&A Q First, thanks, Paul, for giving practical advice based on years of experience and being so neutral about the options. My question is about used cars. My 2018 Toyota Fortuner is worth more than the price I paid. Should I just sell it, given the rise in interest rates, or do you think it is better to own an asset at this time than converting it to cash. I presume I would have to pay capital gains tax on it? My thinking is that it is only a short-term thing that used cars are so costly and I should make the best out of the situation while I can. This is a fun question, but with a lot of potential upside for you. The fun bit comes…

COVER STORY The concept of emotional intelligence (EI) - the ability to understand and manage emotions effectively - is spruiked as the winning ingredient in everything from corporate leadership to skincare. Increasingly and perhaps somewhat surprisingly, it's also gaining traction when it comes to successful investing, particularly in the volatile business of stocks and shares. But what exactly is it? Can we improve it? And how can it help us make our money work harder? It isn't a new notion. Various research studies have highlighted the connection between EI and success. New Zealand's Dunedin experiment, for example, has been tracking and studying more than 950 people, from all walks of life and socio-economic backgrounds, for more than 50 years. The resulting data shows that people who are able to delay…

CAREERS Phil Slade Fear. It is such a primal, instinctive emotion. Evolutionary psychologists theorise that over the millennia we have genetically bred this fear instinct, as natural selection favoured those who better sensed potential danger. So essential is this fear function that it has its own physical space buried deep in the centre of our brain, an almondsized capsule called the amygdala. It is our natural alarm system, warning us of danger and keeping us safe. But as our knowledge and understanding evolved, so did our technology, and we set up systems and environments that do a very good job of keeping us safe. In away, we outsourced the job to make our lives more comfortable and predictable. We no longer live in the jungle fending off predators day and…

From July 1, 2022, you are entitled to super guarantee contributions regardless of how much you earn if you satisfy aii other eligibility requirements. It doesn't matter whether you're full time, part time or casual, or if you're a temporary resident of Australia. Before this date, you needed to be paid $450 or more (before tax) in a month to be eligible, If you're under 18 years old, you must work more than 30 hours a week to be entitled to super contributions. In most cases, your employer is not allowed to restrict your choice of fund. But it is not your employer's responsibility to make sure you are a member of that fund. Small amounts can make a big difference… DEPOSIT AN EXTRA $10 EVERY WEEK INTO YOUR SUPER…

Superannuation is a savings scheme designed to support you in retirement. To access it and begin withdrawing some of your money from your accounts, you need to be older than your preservation age (which depends on when you were born) and retired or approaching retirement, or have turned 65 (even if you haven't retired). There are circumstances in which you may be able to get access to your super, but these are very limited. For example, you have specific medical conditions, are terminally ill, or are facing severe financial hardship. In these cases you may be able to apply to the ATO to make a formal request for early access to your superannuation. There is also the First Home Super Saver Scheme designed to enable people to use their superannuation…

SUPER Vita Palestrant Statistics pulled together by Women in Super, an industry body that advocates for policies to improve women's financial security in retirement, makes for depressing reading. How, one wonders, could such glaring gender disparity have been normalised for so long? Women in Super has been shining a spotlight on the system's inequalities. With the election of a new federal government, it is calling for measures to address the tax inequalities, pay super on parental leave and ensure those performing unpaid caring work aren't left behind. Australia's retirement system is built on the assumption that workers will have an unbroken, full-time attachment to the workforce until they retire - modelling that ignores the “motherhood penalty”. “The system is built on the inherent gendered inequality that compulsory super is paid…

Private equity has traditionally been an exclusive asset class only available to the “big end of town” and the ultra-wealthy. But, increasingly, everyday investors, including self-managed superannuation funds, are being given the chance to hop on the global private equity bandwagon. Private equity's popularity has grown due to several favourable characteristics, such as its historical performance across economic cycles. It allows for value creation and long-term investment horizons, as it typically doesn't experience the same short-term fluctuations as listed equities. It also brings an “illiquidity premium” from the nature of the underlying companies, which is attractive to investors over the longer term. More than 70% of large institutional investors allocate funds to private equity, with the average target being about 14%. Australia's Future Fund, for example, allocates about 16.8% of…

Source: Rainmaker Information. Data sourced as at June 30,2022. *Numbers stated here depict averages, other than the Rank column, which is the total number of funds in the category. For any queries on these tables, please contact info@rainmaker.com.au. The tables on these pages contain data and information to help you compare managed funds, which are pooled funds managed professionally by investment experts. Managed funds displayed in these tables are multi-sector or asset class specific. Multi-sector managed funds invest across a diversified mix of asset types spanning eguities, property, bonds, cash, infrastructure, private equity and alternatives. Top 5 sector benchmarks Top 5 Australian funds by size Top 5 funds by 1-year return Top 5 diversified funds by 1-year return Managed funds are normally set up as unit trusts. You may be…