Indholdsfortegnelse for February 2023 i Money Magazine

MY MONEY, MY LIFE I am a 36-year-old, working professional, married (my wife is aged 42) with two little monsters who are now five and two years old. Our goal is to save and invest though property, shares and super, and hope that compounding will result in the dream of retiring at the age of 55 and 61 respectively. Because I grew up as a second-generation migrant single child, with both my parents on low wages due to their low English language ability, I saw saving money as very important. Anything I wanted needed careful consideration and planning, using pocket money earned by doing house chores. Like any young adult, during my teenage and university years, any money I made from part-time work was splurged instantly. It wasn't until I…

When it comes to travel insurance, as with many things in life, the answers are always hidden in the fine print. After years of delays (two decades, to be exact), my family and I are finally going to take that long-overdue trip to Disneyland. The chance of getting injured while in the US, however remote, is one of many reasons you should get travel insurance and get it early. Most policies will cover you for medical costs, lost luggage, trip disruption or cancellation (due to reasons outside your control) and even personal liability. If, however, your trip is cancelled due to lockdowns, border closures and quarantine mandates, you could be left out of pocket. There are some travel insurance providers that do offer cover for certain Covid-related expenses (check carefully…

Growing up in regional Queensland, Topaz McAuliffe recalls feeling lucky. “Being a Torres Strait Islander – grandfather from Moa Island and grandmother from Yorke Island – and growing up in Cairns, we were always told that we needed to get a job,” she recalls. After starting a career at St.George Bank, working in lending, finance and insurance, she volunteered for a project to address local unemployment. “That opened my eyes as to why there were high rates of First Nations people out of work in places like Cairns and Shepparton,” she explains. I spent 12 months understanding what the barriers were. There were a lot of jobs and a lot of people looking for work, but the system just wasn't delivering. It was broken.” A pilot work program was started,…

Q Now that Optus and Medibank have given criminals our date of birth, names, addresses, driver licence numbers, passport numbers and phone numbers, how do we sign up for a credit history check or notification for when the criminals try to use our ID? I know we can get a free yearly credit history, but how can we subscribe to notification of credit checks when banks, etc, look into our names? What a fiasco this has been, Karen. Despite these companies bleating about how terrible the scammers are, we seem to be hearing little about how hopeless these companies are at protecting our data. They hold too much information about us and they keep it for far too long. I wrote an article for the digital edition of Money about…

The good news, Kylie, is that in your late 40s you have built up a solid, diversified base of wealth. A fully paid off home is a great effort and you have equity in your investment property. I'm very pleased to see the $300,000 in super. Super is a terrific vehicle for your future financial stability. I can't see much point in paying off more than a minimum on your investment property. Beach-side towns have performed well during this strange Covid period and I am sure it is rented on a regular basis. After expenses and interest, you may lose a little on this property or make a little – I'm not much fussed about this. If you lose a little, it is tax deductible. A small profit, I suspect,…

This was a tricky, cool vintage for one of Margaret River's finest vineyards, Moss Wood; yet the cabernet ripened at the right time and produced an excellent red. It's restrained at present with power and depth, blueberry and red cherry flavours, before a finish of great length and finesse. Cellaring will reward the patient. For immediate drinking, seek out Moss Wood Amy's ($36), a mediumbodied cabernet blend with pleasing intensity that is smooth and satisfying. PETER FORRESTAL…

STANDOUT LOCATION: 2 City of Hume A lot of Greater Melbourne's population growth is spilling into the northern fringe, as are businesses. Thousands of homes are being built in the north and there are significant jobs nodes there also. The City of Hume is one area where buyer demand has remained strong and we expect solid price growth, boosted by its relative affordability. 2022 reviewed City of Brimbank: Melbourne house prices fell in 2022, but all of the suburbs of Brimbank recorded some level of growth. Four suburbs delivered median price rises between 11% and 14%. The Melbourne slump started early in 2022, with sales activity waning as the year progressed and prices overall declining in response. The decline in demand was most evident at the top end, while outer-ring suburbs…

STANDOUT LOCATION: 5 City of Salisbury With affordability the driving force in real estate and affordable Adelaide one of the leading markets nationally, the northern suburbs are attracting growing demand. Salisbury and the neighbouring City of Playford offer an array of suburbs with houses in the $300,000s and $400,000s, with good amenities and proximity to employment nodes. 2022 reviewed City of Onkaparinga This is one of the nation's outstanding markets, in a city that has led Australia on price growth. Every suburb recorded double-digit growth in its median house prices in 2022, including 15 suburbs which rose by more than 20%. Hackham West rose 42%. Adelaide shares with Perth the title of leading city market. The momentum that allowed the city to defy the national downturn pressures in 2022 is continuing…

The top five picks For 2023, we encourage investors to consider this: rising cashflow and earnings growth generally drive share price growth, especially when costs are rising. This could be the key to picking winning stocks for your portfolio in 2023. Therefore, as we traverse through the stormy market in 2023, we have picked out some of the largest companies based on market size in each of the respective fields, as a means of providing additional inspiration to the five key investment themes we have analysed. How 2022 turned out The performance of the five stocks we highlighted for 2022 has been mixed. Apple (-27%) and Splunk (-26%) suffered as interest rates rose and, as with many technology companies, costs rose, which ate into profits. Moderna (-20%) saw demand for…

FAMILY MONEY Susan Hely It makes sense to talk to your children about money, particularly with rising cost-of-living pressures. But it can be a complicated and emotional topic. Around half of parents don't speak about money with their kids, according to the CommBank Household Spending Intentions (HSI) index. One reason, say those in the survey, is that money is too tight in their household. There's plenty of anxiety, with one in four people with a mortgage worrying about how to pay it and 52% of Australians feeling more stressed about their finances than they were a year ago, according to Salvation Army research. As well, 40% of parents admit that their knowledge of financial topics is limited. But talking about how money is scarce can give children an understanding of…

Anthony O'Brien SMALL BUSINESS It's a new calendar year and, for many Australians, possibly a new business venture. There are plenty of boxes to tick before you can start trading, such as finalising your business planning, settling on a trading structure, getting an ABN, finding a location and organising your communications and telephony needs. According to Kenny McGilvary, communications manager at WhistleOut, the mobile telephone is the lifeblood of many small business. “Whether you're a road-warrior-based small business where you have to stay in contact with people or are doing deals over the phone or using Zoom or Skype, if you don't have a strong phone and internet setup you can't compete.” When it comes to choosing a suitable mobile phone service, having the right contract is critical. “You don't…

REAL ESTATE Pam Walkley Managing your own investment property can potentially save you money. But it can also be time consuming and is rarely stress free. But if you decide to give it a go and have the time, patience and willingness to learn new skills, it can be very fulfilling as well as cost-effective. I have a friend who successfully managed a block of 10 rental flats in a NSW regional city for many years until she sold it to fund her retirement. It was her hobby, and she was across every detail – even reminding tenants it was bin night – and it certainly provided a good income, which she did not have to share with a managing agent. Her main tip is that you can only successfully…

While everyone was partying on January 1, eligibility for the downsizer contribution was further reduced to age 55, giving more people the ability to top up their super from the proceeds of the sale of the family home. You can contribute up to $300,000, or $600,000 per couple, providing you've owned the family home for at least 10 years. The contribution cannot exceed the sale price and must be made within 90 days of change of ownership. Downsizer contributions don't count towards your concessional or nonconcessional contribution caps and there's no age limit and no requirement to meet the work test. “People 55 and over may not have had the super guarantee their entire working life,” says planner Marisa Broome. ‘They're the forgotten generation the government is trying to help.…

Celebrity can be fleeting, but Maria Thattil's Miss Universe Australia crown has paved the way for a sustainable career as a speaker, digital creator, podcaster and writer, with her first book Unbounded (out this month). Only the third woman of colour to represent Australia in the Miss Universe pageant's 69-year history, Thattil is a vocal advocate for anti-racism, youth empowerment, mental health, gender equality and LGBTIQ issues and a believer in paving your own way to financial freedom.…

CALENDAR OF EVENTS Tuesday, February 6 RBA interest rate decision Balance of trade Tuesday, February 14 NAB business confidence Wednesday, February 15 Westpac consumer confidence Thursday, February 16 Unemployment rate Wednesday, March 1 GDP growth THE BUZZ Healthy, wealthy and wise … can we have it all? After a calamitous couple of years predominantly marked by loss – loss of freedom, loss of livelihood, loss of life it's safe to say there has been a fair bit of soul-searching as to what is really important. Last year's World Happiness Report, an annual measure of happiness in each country using income, life expectancy, social support, freedom to make life choices, generosity and trust as the main indicators, revealed that the pandemic brought not only pain and suffering but also an increase…

BOOK OF THE MONTH MISSION: POSSIBLE David Scollon Book Therapy, RRP $39.59 If you're working hard to make the transition from financial uncertainty to financial security, this book will guide you along the way. The author outlines the key steps to help you reach financial independence in an easy-to-read style that will appeal to all levels of experience. Find out how to spend less and save more no matter how much or how little you earn, invest inside and outside super, plus strategies to plan for property, and the risks to be aware of. DEBRA DUNCAN Five readers can win a copy. In 25 words or less, tell us about one strategy that has helped you turn a financial goal from impossible to possible. Enter online at moneymag.com.au/win or send…

Topaz McAuliffe Founder and CEO of 15 Times Better, which encourages and supports organisations to set up Indigenous affairs programs Born in the mining town of Wickham, in Western Australia's Pilbara, in 1980 and later moved to Cairns. First job was at a local sports store; started a university teaching course, but realised that wasn't her calling. Discovering barriers to Indigenous employment changed her outlook; is concerned about the disparity in superannuation for First Nations people. She believes in living for today because you may die tomorrow – “we had a lot of death being a large Islander family”. Her philosophy is to say yes to everything and worry about it later; enjoys travelling, food and wine.…

QI am looking at buying a small block of units in north Queensland with three friends as an investment. I was wondering if you could advise on different options to structure the finances for such an investment? Well, Scott, you did give me a chuckle with your question, not because it is silly, but because I have been there. Many moons ago, along with six great mates from university, we dreamed of a ski lodge. So, we all chipped in and in 1983 bought a rundown old house about 45 minutes from Falls Creek, in Victoria, for the grand sum of $21,000. We knocked it down, but never got our act together to build. It seemed like a great idea at the time, but we were overly ambitious and did…

Q We are 38 and 37 with two young children (seven and three). After the recent sale of an investment property, we have a $78,000 mortgage on our fully renovated primary residence worth about $750,000. We have $110,000 invested in shares and already contribute extra to our super. Our combined income is $110,000 and we add regular payments to our kids’ savings accounts for the future. We've also doubled our mortgage repayments to pay the balance off within five years, and don't have any car loans, personal loans or credit cards. We don't want any more investment properties or to increase our mortgage, but we would like to do something exciting with our excess funds. Is it worth looking at angel investing (angel investors provide financial backing to small start-ups…

Australians can be forgiven for believing that real estate markets collapsed across the nation in 2022. And that it was all caused by rising interest rates. Both those notions are incorrect. As 2022 drew to a close, most of the nation's market jurisdictions had dwelling values higher than a year earlier. The notable exceptions were Sydney (down 6.4%) and Melbourne (down 4.5%), according to PropTrack data. Domain figures show that, at December 2022, capital city house prices remained 27% higher than in mid-2020 and the combined regions were 30% higher. Sadly, the general theme in mainstream media has not reflected these realities. The reporting has bordered on hysterical, with claims that prices were falling everywhere, mortgage stress was widespread and rising interest rates were causing record declines in property markets.…

STANDOUT LOCATION: 3 Townsville This northern city has all the credentials for a big growth year, including a vibrant local economy, major infrastructure projects and lifestyle at affordable prices. Tropical storms and the impact on insurance costs is the only negative factor. 2022 reviewed Ipswich City: After major weather events early in the year, the Brisbane market declined in 2022, but Ipswich was an outperformer. Virtually every suburb recorded median price growth above 20% and several were above 30%. Brisbane was embracing a spectacular boom when floods drowned out the heat in the market early in 2022. It faded thereafter, particularly at the top end, although the affordable outerring municipalities like Ipswich City and Logan City continued to thrive. With a big infrastructure spend under way, internal migration into south-east Queensland…

MORE MONEY STORIES ON P46-61 COST OF LIVING Australians have entered the new year determined to tighten their belts and rethink their budgets as prices continue to soar, research conducted by the Commonwealth Bank has revealed. More than half of those surveyed by the bank (51%) said their number one financial resolution for 2023 is to reduce their living expenses, while nearly as many (50%) admitted they plan to cut back on non-essential items. Furthermore, 41% want to save more regularly and the same proportion will be looking out for extra sources of income. Setting a goal is one thing, but achieving it is another matter. Will Mailer, CommBank's chief behavioural scientist, says there are a number of strategies people can employ, including using incentives to stay on track and…

MORE INVESTING STORIES ON P70-75 RETIREMENT Do you know how much you have in super? If the answer is “yes”, you're among the one in four Aussies with super who say they do. You're also most likely to say you are in an above-average fund. And you have a higher balance. More than half of those who claim to know their exact balance say their fund's performance is at least above average, according to a survey of 1042 people by the researcher UMR. Interestingly, the results showed that age does not determine engagement with super. While 30% of over-55s claim to know their super balance exactly, so do 26% of those aged 35-54 and 23% of those aged 18-34. With the new year under way, Industry Super Australia is urging…

In 2019, more than 21 million passengers passed through Auckland Airport. In the year to March 2022, that number was closer to five million. International passengers had fallen from 10 million to just 600,000. This was the point where we upgraded New Zealand's premier international gateway. Back then, the price was around $6.50 and the case for purchase was built around a traffic rebound, an attractive valuation and a huge freehold landbank. Since then, things have played out wonderfully. Auckland Airport recently increased its guidance for 2023 earnings. Previously, management had expected an underlying net profit of $NZ50 million ($46 million) to $NZ100 million, but that has been bumped up to NZ$100 million to $NZ$130 million. “We are increasingly confident that aviation is returning to normal,” management said. “For the…

Men lose twice as much money to investment scams as women. In 2021, men reported losing $118.4 million and women $58.1 million. Losses increase with age. People aged 65 and over made the most reports about being scammed: some 46,286 scams and $82 million lost. Indigenous Australians reported 4958 scams, with $4.8 million lost. Younger indigenous people lost more money than older people. People from culturally and linguistically diverse (CALD) communities made 14,060 reports and lost $42 million, which was an 88% increase compared to 2020. The median loss for people from CALD communities was higher than for the overall median – $1200 versus $845. Scams over mobile apps resulted in the most losses for CALD communities largely due to the “Hope Business” app, an investment scam that promised users…

There are steps students can take to minimise – and manage – HELP debt. 1 Think carefully about where you study While maximum limits apply, HECS fees vary While maximum limits apply, HECS fees vary between universities. For example, in 2023 a firstyear Bachelor of Arts (BA) student attending the University of Sydney can pay HECS of about $15,142. At Charles Sturt University in regional NSW, the same student could pay around $12,900. 2 Pay HECS upfront if possible Pay $500 or more upfront off your HECS bill to score a 10% discount. Ideally, make voluntary payments before June 1 each year when HELP debt is indexed upwards. 3 Exit subjects before census date If you plan to quit a course or subject, do so before census date. That's typically the last day…

An allowance or pocket money can be a great teaching tool. About 90% of parents insist their children earn pocket money by doing chores, according to the HSI survey. There are strong views from parents that certain chores should be part of kids’ contribution to the smooth running of family life. They believe paying for basic chores can set their kids up to believe they are entitled to money every time they help around the house. Some parents rotate the chores to give their kids broad life skills and help them become competent at keeping a clean, well-run house. For example, Caroline Hamilton's three kids have a daily routine that isn't linked to pocket money. It includes emptying the dishwasher, hanging out and bringing in the washing, making their school…

Australia has one of the strongest superannuation schemes worldwide, according to Mercer. A standout feature of our system is that people save well for retirement. However, the real purpose of superannuation is to provide income in retirement. This aspect of our system is not working so well, as evidenced by the fact that retirees are leaving around 90% of the assessable assets they had at the original point of retirement when they pass away. A well-known challenge that people face in retirement is how to address longevity risk, which is the concern of running out of money too soon. People manage this risk by being conservative in their spending and living more frugally than necessary. Focusing on this alone heightens the chance of exacerbating a lesser-known risk, which we call…

MANAGED FUNDS Max Riaz We often consider fossil fuels, sunshine, clean water and air as the basic necessities of life. We know that we cannot exist without these basic resources. But there is a fifth resource without which our modern life will simply grind to a halt. Astoundingly, this resource is controlled by a handful of global companies, and even more astonishing is the fact that there is only one company in the world that can produce a critical part of this resource. What is this resource? It is semiconductors or chips. At the core of almost every electronic device is either a memory chip or logic chip, or both. I am going to refer to these two, collectively, as chips. They are in your smartphones, computers, the infrastructure that…

BEST IN BREED Scott Phillips SECTOR DISCRETIONARY RETAIL At the end of 2020, we were happy to see the end of the “pandemic year” and looked forward to getting back to normal. We didn't make that mistake in 2021, and few people did last year, either. It was more one of those “don't look 2023 in the eye and don't make any sudden movements” vibes, instead. And, economically at least, there is good reason for it. We entered the new year with the highest annual inflation in decades. And with the highest interest rates in a decade, to go with it. But here we are. Facing the potential for a weaker economic outlook, with some even predicting a recession. A terrible time for discretionary spending and discretionary retail shares, right? Not…

Alex Dunnin OUTLOOK The start of the year is when economists and financial market commentators chance their arm to forecast how the coming year might play out, giving not-so-subtle hints to investors for where they should put their hardearned and now inflation-ravaged money. But given how badly most forecasters have been faring these past few years, this columnist has no intention of being so foolish as to try to predict what 2023 has in store. Showing how bad they've been, the defining economic and financial events of our time have been the global pandemic, the war in Ukraine and the ensuing chaos on world energy and agriculture markets, the ensuing upending in global supply chains, rampant inflation, looming global slowdowns and possible recessions. As a result, most economic forecasts turned…

TOM WATSON Senior journalist 2023 is going to require some serious discipline on the savings front because my sights are firmly set on purchasing a home with my partner. I won't lie: the prospect of buying our first place when property is so expensive and rates are at decade highs is a bit daunting, so if we do end up in a position to buy then you can bet we'll be shopping around for the cheapest mortgage we can get our hands on. SHAUNA MILANI Design and production manager Now that I have one less child at school, the goal is to direct any school-related expenses/fees we previously had straight onto the mortgage via higher repayments. This will not only help to pay it off faster but will hopefully provide…

With destructive flooding, bushfires and other climate-induced disasters, people are understandably feeling worried not only about the climate and future of the planet but also about what impact this has on housing expenses and the cost of living. According to a recent survey by the market researcher Ipsos, 83% of Australians are concerned about climate change and more than two-thirds agree that it poses a serious threat to our way of life over the next 25 years. It's normal to feel anxious about ongoing climate disasters. It's devastating to see so many people struggling and people can, in turn, feel stressed for those affected. Financial stresses can cause low energy levels and disrupted sleep and can also affect our mood in general. Thinking about insurance that protects our homes and…

FRIENDS WITH MONEY #83 YOUR SUMMER MONEY KICKSTART GUIDE Host: Tom Watson Guest: Claire Frawley T was the time to be silly, but if you're thinking now that you need to get serious about your financial wellbeing, then you're not alone. In this podcast, host Tom Watson chats to Mozo money expert Claire Frawley about the best ways to finetune your finances before summer is out. Discover how to get the most out of refinancing your home loan and reviewing your NBN plan, plus the smartest way to use a credit card balance transfer and what you need to know when choosing between a base or bonus rate savings accounts. DEBRA DUNCAN SCAN THIS CODE TO ACCESS ALL OUR FRIENDS WITH MONEY PODCASTS…

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 editions of Money. Q My nephew is about to receive an inheritance from my father, of about $170,000, when he turns 21. What is your advice for the best way to handle these funds? He would like to buy a good, reliable car and spend a little on some personal items. So, let's say he'll have about $150,000. He would like to set himself up the best…

ASK PAUL Q&A Q I am on a full pension and am aware of elder abuse. My son bought a house recently then lost his job. Can I sell my house and buy a half share in my son's property without losing my pension? Lyn, your very short question caused me a range of emotions, starting with deep concern and worry. Elder abuse is a dreadful thing and all too common. What is also sad is that many well-meaning parents and good kids go into an arrangement like this and, despite everyone having good intentions, it goes completely pear-shaped. So, without knowing you, your age, what other assets you have, or anything about your son, every fibre in my body screams out, “DO NOT DO THIS”. My obvious thought is…

PAUL'S VERDICT Paul Clitheroe YOUR QUESTION We own our hobby farm valued at about $1.2 million and owe $340,000 on an investment property that is in a beach-side town and rented out as an Airbnb. It is valued at about $450,000. We have $300,000 in combined superannuation at ages 47 and 49. We have no dependent children and earn $180,000pa combined. We have little savings at the moment and a small portfolio in crypto. We both want to be able to work part-time by age 55. What would be our best option to ensure a financially stable future for us? We are unsure if we should buy another property if the prices continue to fall in the next couple of years, add more to our crypto portfolio or bulk up super.…

What is it? This is Australia's largest independent human rights organisation for refugees and people seeking asylum. With the support of more than 1000 volunteers and 100 staff, the community-run organisation assists about 7000 people each year in their quest for asylum. The centre's vision is for people seeking asylum to live safely, sustainably, independently and equally. Whore your money goes? Founded by teacher Kon Karapanagiotidis in June 2001, the centre has since expanded to offer more than 40 programs including legal aid, Foodbank, healthcare and employment support. According to its website (asrc.org.au), there are currently about 20,000 people living on temporary protection visas and safe haven enterprise visas, 1000 people under review and 9000 who have been denied protection under the fast-track process. A donation of $75 can cover…

STANDOUT LOCATION: 1 City of Wollongong Buyers continue to seek an affordable lifestyle close to the capital city and Wollongong fits the bill for Sydney residents. It has a strong local economy, a sizeable infrastructure spend and a coastal lifestyle at decent prices. 2022 reviewed Tamworth: Many regional NSW markets struggled in 2022, but Tamworth was not one of them. All suburbs recorded double-digit annual price growth, including several where median house prices rose more than 20%. The NSW economy ranks second last among the states and territories, according to the State of the States report published by CommSec in October 2022. This has coincided with the decline in the Sydney property market. Many analysts have incorrectly linked the decline in Sydney with the rise in interest rates. Hotspotting analysis shows…

STANDOUT LOCATION: 4 City of Armadale The Armadale LGA in the far south of Greater Perth offers the kind of valuefor-money that has been attracting both home buyers and investors to Perth. Many of its suburbs have median house prices below $400,000, as well as good facilities and amenities. 2022 reviewed City of Wanneroo: Perth was the leader among the cities that defied downturn pressures in 2022 and Wanneroo was prominent in that: all of its suburbs recorded growth in median house prices, including a dozen that recorded double-digit annual rises. While the biggest cities of Australia struggled in 2022, Perth thrived. There's no reason why this won't continue in 2023. Perth remains the most affordable of the state and territory capital cities. It is underpinned by a strong state economy…

The fallout from a spate of natural disasters and rising inflation is helping to drive up the cost of home and contents insurance, with nearly two-thirds of homeowners reporting an increase in premiums over the past year. That's according to a survey conducted by comparison website Finder, which found that 63% of respondents had seen the cost of their insurance rise during 2022, compared with 22% of people who hadn't faced an increase, and 14% who were unaware of any change. Despite the hikes, just 11% of those surveyed said they had changed insurers, even though, notes Finder insurance expert James Martin, switching can be an effective way to secure a better deal. “The best deals are typically offered to new customers when they sign up online,” he says. “Insurers…

WHAT IF? Annette Sampson THE IMPOSSIBLE IS POSSIBLE While much of the world heaved a sigh of relief at the return to normality that followed the election of Joe Biden as president, the US remains deeply divided. It was probably the worst-kept secret in the world that Donald Trump was planning to run for the top job in 2024, and in November he announced it officially. While he still has to gain the Republican nomination, early polling put him ahead of his main competitor, Ron DeSantis, and neck-and-neck with Biden if he wins the Democratic nomination and the two faceoff for the presidency. The 2022 mid-term elections did not deliver the “red wave” of seats moving to the Republicans that many had expected (the Republicans ended up with control of…

BANKING Michelle Baltazar 1 Change your password Security experts recommend changing your password on your online banking account at least four times a year. Is it a chore? Absolutely. Is it worth it? Yes. Banking scams reached new heights last year and all it took was a bunch of cybercriminals getting hold of your sensitive data through social media or through online sites you may have visited. This year could be the year you use a password manager or a system that allows you to update your passwords more frequently than you've done in previous years. 2 Check out the AFCA website The Australian Financial Complaints Authority is the go-to organisation to get compensation from a bank that made a serious financial error or acted inappropriately towards its customers. It can resolve…

MIND GAMES Phil Slade According to some reports, $99 billion worth of mortgages are coming off a fixed rate in the second half of 2023 from Australia's two biggest banks alone. It is such a significant figure that it's being termed the mortgage cliff. With interest rates so unpredictable, this change is becoming an increasing worry for many. We hear from a growing number that they are being consumed and overwhelmed by information and “expert” advice. Paralysed, as they attempt to analyse information, they don't feel as if they completely understand and they're unable to think clearly in the dizzying noise of choice. Anxiety is on the rise, interrupting sleep and consuming cognitive energy. The reason we experience the anxiety emotion is to heighten awareness of potential danger and ready…

SUPER Vita Palestrant Call it a hangover from the silly season when people look at their empty calendar and decide there's ample time to plan the year ahead when there's just four months left to the end of the financial year. If you want to boost your super and make the most of its generous tax concessions, you need to keep abreast of the changes to the 2022-23 rules. “Ensuring you are across the changes earlier in the year will give you time to implement appropriate strategies for your retirement,” says Xavier O'Halloran, director of Super Consumers Australia. “The amount of super your employer must pay you, called the super guarantee, went up from 10% to 10.5% on July 1, 2022, and will continue to rise by 0.5% each year…

If, like many fellow Australians, you're up for a punt, then it may be worth considering speculating on the sharemarket. There are plenty of speculative stocks, sometimes called penny stocks, for you to choose from. But, of course, choosing the right ones is quite tricky because there is not a lot of independent research into smaller companies listed on the ASX. Indeed, many of today's blue-chip shares (stocks that are well known, high quality and often market leaders in their industry) started life as micro-cap stocks. For example, Altium (ASX: ALU) was a penny stock less than a decade ago and now has a market capitalisation of $4.9 billion, points out The Motley Fool (fool.com.au), provider of investment guidance, both free and premium, to investors worldwide. But beware: not all…

THIS MONTH Marcus Padley Money is a different thing to different people. The naive think money communicates success and they want other people to know they have it, by showing off, and they do that by buying things … cars, houses, clothes, jewellery. But let me tell you something that many of you will only wake up to in hindsight, in later life. After gambling, showing off is perhaps the most costly and pointless waste of money you will ever pursue. When I was 20, I owned a secondhand diesel Mercedes 190. It was only a year old and cost me every penny I had, £6000. But it was a quality, safe car, and it had a motor that, looked after properly, could have done me very nicely for the…

What inspired you to write your book? The real inspiration came in 2013. That was the year that I was diagnosed with depression and anxiety. I'd come across this one book, Philosophy for Life and Other Dangerous Situations, at the time I was studying psychology and a lot of the sentiments in this book ended up being life-changing. I always remember what that book and many others have done for me when I've really needed perspective, inspiration, hope. That's what I hope Unbounded is for someone else. What was your first job? My first job was at KFC. It's so funny, I remember googling it and researching what to say in a job interview. I went there and I said to the manager, “Hi, I really love KFC and I…