Indholdsfortegnelse for June 2023 i Money Magazine

BACK TO BASICS Raising children can be expensive. In 2018, the Australian Institute of Family Studies estimated it cost between $140 and $170 a week to raise a child - and it’s probably more now due to increases in the cost of living. Before you freak out and decide you can’t afford children, know that many families excel at saving and investing. Also, having a family changes your perspective and priorities. I remember the money I wasted pre-kids on dining out, partying and travelling. While I have great memories, since having children, I’ve learnt to “adult” and be more frugal I love my children, I want to provide them with the best possible life and sometimes I want to treat them. I love seeing them smile. However, more isn’t necessarily…

It’s fair dinkum time for employers to realise the true value of older workers in the workplace. The latest report by the Australian HR Institute and Australian Human Rights Commission proves that fewer employers set age limits on job candidates, and more recognise the advantages of hiring mature workers. And let’s not beat around the bush - older workers are usually better. They know how to get out of bed in the morning, turn up to an office and even turn up on time. They don’t waste time on Instagram or doing silly TikTok dances. They’re also less likely to have all the anxiety crap that all Gen Z claim to have and just focus on getting the job done! They’ve got years of experience and they don’t muck around.…

Crackdown on rental property claims If you own a rental property, you need to be particularly careful not to understate your income or overclaim your expenses when you complete your 2023 tax return. The ATO is backing up its existing compliance focus on rental properties by entering into a “data-matching protocol” with mortgage lenders. It claims that as many as 90% of all rental claims are incorrect. The data-matching program will collect: Client identification details (names, addresses, phone numbers, dates of birth); Loan details (account numbers, BSBs, balances, total interest charges, total repayments, commencement and end dates); Transaction details (dates, amounts, whether debit or credit); Property details (address of the loan asset). Therefore, the ATO will have an independent, third-party verification of tax return information relating to: The existence of…

It’s been more than 30 years since Freddie Mercury passed away, but interest in the lead vocalist of British rock band Queen has never waned. Fans now have a chance to own some of Mercury’s prized possessions, with auction house Sotheby’s announcing a September sale of his collectibles. The auction follows a series of free exhibitions in the US, Hong Kong and UK, which showcased the performer’s costumes, handwritten lyrics and personal belongings, including curios and intricate fabrics picked up on his frequent trips to Japan. As a guide to possible prices, the crown and robe worn by Mercury for the rendition of God Save the Queen during his final tour with Queen in 1986 is expected to fetch up to £80,000 ($151,000). It’s good news for collectors, of whom…

QI’m a 35-year-old single woman with a $6000 super balance due to working for family for so many years. I am starting a public service job and hope to stay in the public service. I have been advised that I can now join a public service super fund or remain in my current fund, AustralianSuper. Both accounts have pros and cons. I come from a financially illiterate family and feel unsure of the best way forward for me. I could also use some tips on salary sacrifice to both improve my woeful super balance and for the first home buyer scheme. A little advice would be priceless. Thank you. Yours is a pretty common situation, Sally, Working, presumably, in a smaller, family-owned business is rarely good for your super. The…

QIn early 2021, my partner and I bought a home for $850,000, despite the valuation coming in at $790,000. We needed a place as soon as possible, as we had moved interstate and had a baby in tow. Sleep-deprived and overwhelmed by all of the change in our lives, we put in an offer well over the asking price. We have come to find the home doesn’t suit us and is somewhat of a money pit, with major work required in the garden, on the house layout and fencing. It’s money we simply don’t have and, even if we did, it would just never add value. So, my question is, how many years must we stay here before we can sell and buy something that suits us better and enable…

2019 Xanadu ‘Circa 77’ Shiraz $22 Xanadu continues to impress, with Glenn Goodall leading the team of one of Margaret River’s finest wineries. The shiraz has long played second fiddle to cabernet, but its quality has dramatically improved in recent years. This one has wonderful intensity, balanced by succulence, and pure ripe, red cherry fruit with a hint of blueberry. SPLURGE 2022 Port Phillip ‘Essay’ Gamay $44 This wine was the last sourced from David and the late Wendy Lloyd’s Eldridge Estate, which garnered an enviable reputation for its gamay. It fits admirably into the Port Phillip portfolio. While light to medium-bodied as you’d expect from the variety, this is intense and persistent, with dark cherry and cranberry, soft, fleshy texture, smooth and round. A classy, drink-now style. PETER FORRESTAL…

Help! This old house is draining the life out of me We are in our early 50s, we have a mortgage of $450,000, and our house is in desperate need of repairs and renovations. We have a combined income of $160,000. Our repayments have just hit $3350 a month. The current cost of living is killing us, yet we will retire with well over $1 million. How can we fund a renovation now? It will sound ridiculous but this house, and the age it is, just drains the life out of me. Very interested to know your thoughts. CASE STUDY Have a question? If you have a question you’d like Paul to answer, email money@moneymag.com.au or write to Level 7,55 Clarence Street, Sydney NSW 2000. Questions need to be 150…

Many Australians drag their heels when applying for the age pension, taking around a year on average, to get the paperwork in, explains Retirement Essentials’ Jeremy Duffield. Thirty percent of Australians take more than a year and 16% take more than three years. In fact, you can apply for the age pension 13 weeks before you reach the eligibility age, which is currently 66.5 years, says Duffield. People put off applying for the age pension for a host of reasons, such as not understanding they can apply even if their spouse is still working or they are working part-time. Both are allowed under the age pension, with limits. Some people have complex feelings about being on the age pension. “The age pension is money you’re entitled to,” says Duffield. “One…

Australians are retiring with more debt and increasingly with mortgages. Joshua Funder, Household Capital’s chief executive officer, says more than 30% of retirees have a mortgage. One strategy for them is to access the equity in their home to pay off their mortgage, preventing potential default and eviction as well as improving their retirement income. AustralianSuper’s Blackmore says the best support he can offer people who are beginning to think about their retirement is to have a strategy. “More and more Australians will be taking some debt into retirement, and they need to have a plan for how they navigate that, whether or not that’s accessing super to help pay that down,” he says. “It might be that your plan is to sell your home, if you own a home,…

No generation has money matters honed to perfection. Superannuation tends to be a weak spot for gen Z, with low levels of engagement, though Scott Pantlin doesn’t see a problem with this. “in my opinion, super is not something they need to focus on right at this moment,” the Gild Group’s financial adviser says. “The big industry funds all provide good, comparable accounts with similar returns.” Where Pantlin believes older generations could learn from the zoomers is their willingness to be proactive and just get started with investing. “We see clients ranging from 24 to 75 years of age,” he explains, “and I always hear those in their later years of life say, ‘I wish I had done this years ago’.” Felding is confident this generation has the smarts to…

Owen Craven says one of the reasons he talks proudly about his family’s positive surrogacy experience is to inspire and educate others, as well as to highlight some aspects of the flawed legal framework that surrounds surrogacy. “While under Australian and state laws there may be questions about who are the child’s parents, in our daughter Indigo’s eyes, there is no doubt we are her dads. But what we need to do is change the policies around Australia so there is alignment between the state and federal governments to provide this service safely and in a fair and regulated manner.” But they don’t see the laws changing anytime soon. “We’re the lucky ones where surrogacy worked, but it’s an important topic, because families are created in very many ways. And…

SMALL BUSINESS With the end of the financial year fast approaching, small businesses can take steps to save on tax. Here are some last-minute tips to trim your 2022-23 bill. 1 Review all your expenses The starting point for ensuring you’re reducing the tax liability for your small business is to review expenses and ensure you have all the paperwork to claim relevant deductions. This can include everything from office supplies and travel expenses to advertising and professional fees. 2 Take a closer look at inventory The lead-up to June 30 is the ideal time to review trading stock for obsolete lines that simply aren’t selling. Consider if stock that’s gathering dust should be written down or written off completely. As a business owner, you’re normally entitled to a tax break for…

Drawing pension payments from your balanced or growth fund during a market correction means you will be locking in asset losses. You can avoid this by having a bucket strategy. “If you had started your retirement income stream the day before the GFC hit and then had to draw out pension money, and didn’t have cash there, you would be selling in a low market to pay your income, and you'd be in a difficult position,” says Wealthadvice’s Marisa Broome. You can set it up a few years before you retire by asking your fund to divert ail your contributions into the bucket so it’s available and ready when you switch to pension mode. You still pay one set of fees, says actuary Michael Rice. “You just need to tell…

Home ownership will give you choices that may improve your financial situation and well being in retirement. But remember, you super is counted in the age pension assets test. Key advantages of ownership are: The home is not means tested for the age pension; The government’s Home Equity Access Scheme can help boost your age pension; It can help you pay for residential aged care; There is no capital gains tax on your home when it’s sold; You can use the proceeds of selling your home to make a downsizer contribution. “Most people in middle Australia probably want to organise their affairs to maximise the age pension. If they’re on a part-pension and make a downsizer contribution, that can cause issues,” says actuary Michael Rice. “If you’ve got a $2…

THIS MONTH If you weren’t born in 1955, there was no way that you could be Bill Gates or Steve Jobs building an operating system. You had to be born at the right time to slot into the computer age. I was born six years too late in 1961. I remember having the option to do a subject called computer science at school. I chose geography instead because I spent my early life thinking it was cool to do as little as possible. And from what I could tell from the other boys who did computer science (yes, I went to a boys-only boarding school) all it taught them was to print out Babbage cards (pictured below). You probably don’t remember those. Actually, knowing the sensible Australian investor demographic, you…

OUTLOOK Australia’s rolling 12-month inflation rate - measured by the Consumer Price Index and climbing slightly from 6.8% for the year-to-end February, up to 7% for the year-to-end March 2023 - seemed to spook the Reserve Bank into again lifting the official interest rate by 0.25 percentage points in May to 3.85%. Despite Australia’s cash rate climbing again, we should spare a thought for people in the US, the UK and NZ, where official interest rates are 5.25%, 4.25% and 5.25% respectively. Australia’s rates being 1.05 percentage points lower than the US, UK and NZ average prompts the reverse question: why is the RBA being so gentle? The answer is that RBA governor Philip Lowe has said that while Australia must fight inflation with everything we have in our monetary…

The sailor won gold in front of a home crowd at the 2000 Summer Olympics in Sydney. Along with fellow gold medallist Mark Turnbull, he was awarded the Medal of the Order of Australia in 2001 and inducted into the Australian Sailing Hall of Fame in 2022. In 2009, King helped set up Nanuk Asset Management, a global equities fund that invests in companies that contribute to, or benefit from, improving global environmental sustainability and resource efficiency. He is currently the chief investment officer and a portfolio manager at Nanuk.…

55-plus budget boost is hard to understand I read Money regularly and one thing that stands out is how much advice older readers seek out, or the money concerns that they express. I figure this is just the core demographics in play. However, perhaps not so much anymore. The federal budget has given “Newstart” recipients aged 55-plus a “modest boost” to their allowances, which would suggest the current government views these individuals as struggling more than, well, everybody else. Frankly, I see these individuals as people who literally have had a decadeslong headstart on others to develop and secure their financial security/stability but simply have not (for whatever reason). Perhaps it’s a new way of thinking, but I’d reckon 30-odd years after high school you should have important things like…

Dreams of ‘ideal’ retirement come up against reality A new report by investment manager Vanguard, published in May, has found significant variance in what Australians believe is the ideal age to retire. While the average ideal retirement age reported by respondents in the How Australia Retires survey was just over 61, it found workers aged between 18 and 34 hope to retire by 59.5, those aged 35 to 54 hope to retire by 61.5 and those aged between 55 and 75 or older want to bow out by 64.9. Superannuation tends to be the basis upon which we choose when to - or can afford to - comfortably retire. With that in mind, it’s easy to forget that it was little less than a month ago that treasurer Jim Chalmers…

BOOK OF THE MONTH BLACK BELT: A MASTERCLASS FOR START-UPS AND ENTREPRENEURS This book tells the story of finance industry veterans Joseph and David who successfully disrupted the banking industry - in an environment dominated by the big four - by launching Judo Bank in 2016. It was Australia’s first commercially listed bank in 40 years. The name is a nod to the fact that in judo the smaller, weaker person can overpower a stronger opponent through the efficient use of energy. The authors share key lessons - and the real-life challenges they faced - from the Judo journey and their decades in business before their start-up success against all odds. Five readers can win a copy In 25 words or less, tell us why you’d like to win this…

Meats and treats are off the list Shoppers are crossing meat off their lists more than any other item as they look to “trim the fat” from their grocery bills in the wake of rising living costs. In a new survey conducted by comparison website Compare the Market, 62% of respondents revealed they had either reduced their spending on meat or given it up entirely over the past three months, with Tasmanians (82%) and those aged 58 and over (73%) found to be the groups cutting back the most. “We know the cost of groceries, gas, and electricity are all on the rise. After 10 consecutive rate rises, mortgage repayments and rental payments have increased for many households,” said Compare the Market’s Phillip Portman. It’s not just meat that is…

As if life wasn’t tough enough for renters right now, according to the consumer group CHOICE more than two in five renters have been pressured to use so-called “rent tech” - third-party rental platforms when they apply for a lease. According to CHOICE, these platforms not only put tenants at risk of data breaches, they often leave them with additional fees, including forking out for the cost of their own background checks. In a worst-case scenario, rent tech can see renters excluded from housing. “Automated decision-making systems are becoming an increasingly common part of rental application systems,” says CHOICE consumer data advocate Kate Bower. The Snug platform, for example, produces a “match score” for rental applicants, using the personal information submitted by a renter to indicate their suitability for particular…

Describes catching and tagging sharks as a job that now he can only really do himself. “We can’t farm it out to any of our students because of OH&S issues. It’s like the old Space Cowboys mo vie where the old bastards are brought out of retirement Gets fired up by the many environmental challenges he wants to tackle. The only thing that stops him is the weather.…

QMy partner and I own a townhouse in the same complex as my mum. My mum prefers ours and wants to sell hers and buy ours for the same price. Ours is more valuable and desirable, to the tune of about $50,000. Is there any way that we can let her live in ours and we rent hers out, without affecting her pension, and keep ownership of our place? Market rent would only just cover our loan, but we would like to keep our place if possible. If not, will we have to pay stamp duty to transfer the properties into each other’s names? Or are we better off just selling ours to my mum to keep her happy in her old age? Crikey, Ann, I am not overly keen on…

Well, Rowina, you are the second person who has dropped me an email this month about a house that needs much work. (See Ask Paul, page 27). I know I should not chuckle, but your comment that it “just drains the life out of me” will ring true for many homeowners. At times it certainly did for us. I also feel your frustration as you look into the future and with super and other assets see you will have well over $1 million, but are living in a house today desperately in need of renovation. Life is generally great fun, but never fair. I am an ageing dinosaur, so can look quite a long way back in life. At university I had all the time in the world, with some…

The definition of retirement is evolving. Work rules have been relaxed around the age pension and retirees can earn more and still qualify for the full or part age pension. “We’re seeing members work longer and more members return to the workforce,” says Shawn Blackmore, from AustralianSuper. “We see members who are eligible for retirement but staying in the workforce or staying in the accumulation account. And some members are returning to the workforce, not primarily for income, but to keep connected. “I think this notion of retirement being set in stone when you hit a certain age is being turned on its head and continues to evolve as members’ needs change.”…

BANKING Aspiring first-time home buyers who are locked out of the property market will get a second shot at their dream, thanks to new laws coming into effect next month. Starting on July 1, the eligibility criteria for the government’s three-pronged Home Guarantee Scheme (HGS) - namely the First Home Guarantee (FHBG), the Regional First Home Buyer Guarantee (RFHG), and the Family Home Guarantee (FHG) - will be extended to include individuals who were previously excluded. In a landmark move, the definition of a “couple” applying for the First Home Guarantee and the Regional First Home Guarantee will no longer be limited to those who are married or in a de facto relationship. Instead, the government will allow joint applications from friends, siblings and other family members. Similarly, the Family…

MIND GAMES The alarm goes off. 5am. It’s cold and I can hear it raining outside. My shoes are laid out, I know where my running gear is, but a decision still needs to be made. To get up, or not to get up, that is the question. If I hadn’t made a morning habit, I’d probably ignore the call of the road. But I have, so without thinking much I hop up and start to put on my gear. This is the power of habitual behaviours. They hack our brain and help us prioritise one behaviour over another. If I am in the habit of ignoring my alarm, then I will. If I am in the habit of getting up, then I will. Habits are hard to break and…

The question of whether to buy before you sell your home, or vice versa, doesn’t come with a simple answer. It could depend on the prevailing market conditions: common wisdom is to sell first in a buyer’s market and buy first in a seller’ market. Beyond that, here are some of the benefits to each: BENEFITS OF BUYING FIRST You can avoid the cost and inconvenience of a double move and renting. You’ll have time to find the home you want without the pressure to sell. You could use the equity in your current home to help you buy. BENEFITS OF SELLING FIRST You’ll know exactly how much money you’ll have to spend on the new home. You won’t need to take out a bridging loan. Some vendors prefer cash…

Some managed funds no longer declare investment fees and instead refer to indirect cost ratios (ICR). They use this term because these charges may not be paid directly by you to the managed fund, but indirectly because the investment manager’s fee is deducted from the investment return before the unit price is calculated. For example, the investment manager may achieve a 10% investment return for the managed fund but its fee is 1%, so the net return applied to the managed fund is 9%. When you see an ICR, just think of it as another way to describe the embedded management fee.…

MANAGED FUNDS This month, I want to shift the focus from investing for ourselves to investing for our children. The topic is a little personal because I have been thinking about investing for my daughter, who just turned 10. As parents, we get incredibly busy attending to the needs of our children in the here and now: things like quality and costly schooling and other lifestyle expenses. What we often forget is the importance of maintaining a savings and investments fund for our children. The purpose of such a fund is to be a genuine wealth builder. The children should not be allowed to touch the funds for the next 20 years and at that time they may use the funds to invest in real assets, not for consumption. Investors…

Contributing writer Whenever there was a significant task ahead my father would say “just do it little by little”. His advice resonated later when I discovered drip feeding spare cash into wealth creation works wonders. I’m a great fan of super and its tax advantages and low costs. If you choose a good fund, contribute extra - no matter how little. You will never regret it. Managing director The simple lessons about money or investing are usually the best. The miracle of compound interest attributed to Albert Einstein is number one on the list. However, I like to credit Dr Don Stammer with expanding the lesson to compounding returns and the importance of reinvesting dividends. The younger you are the more powerful the impact because you need time on your…

The bucket list trip for any investor has to be the Berkshire Hathaway annual general meeting. I went five years ago, thinking it would be the last, but in May this year we had our latest instalment and the guys didn’t disappoint, even though Charlie Munger (vice-chairman of Berkshire Hathaway) is now 99! Warren Buffett started by introducing Munger: “When I woke up this morning, I realised we had a competitive broadcast going out somewhere in the UK, and they were celebrating King Charles. We’ve got our own King Charles here today.” The Q&A went for about six hours and the discussion covered topics around achieving success and building wealth. Here are three of my favourite Buffett quotes: 1. What gives you opportunities is other people doing dumb things. In…

FRIENDS WITH MONEY #98: TAX TIME Guest: Mark Chapman Hosted by: Tom Watson It’s that time of year again, when you have to get together all your records and receipts. There’s no doubt tax time can be stressful but the more organised you are the easier the process will be. Thankfully, there are experts to lend a hand. H&R Block’s Mark Chapman fills us in on all things tax in the lead-up to the end of the 2022-23 financial year and looks at what you can do now to get a head start. He discusses new rules, who the ATO is likely to target, what working-from-home expenses are still claimable, and looks at the fine line between a personal and business expense. SCAN THIS CODE TO ACCESS ALL OUR FRIENDS…

Australians who gamble online will no longer be able to fund their bets using a credit card under a newly proposed ban put forward by the federal government. According to the government, Australians are estimated to lose around $25 billion to legal gambling each year, which is the highest loss per adult in the world. “It’s as simple as this: people should not be betting with money they do not have,” said the federal minister for communications, Michelle Rowland. The government says the ban, which it hopes will be legislated later this year, will be enforced using bank identification numbers (BINs) to block credit card payments - a practice that is already in place in casinos and venues with poker machines to stop ATM withdrawals using credit cards. Carol Bennett,…

The champagne corks must have been popping at ResMed’s head office in April when it reported currency-adjusted revenue up 31% to $US1.1 billion ($1.7 billion). Growth was spread across all major segments, including devices, masks and software. Its core business of selling continuous positive airway pressure devices and masks had one of its best quarters yet: new device sales shot up 43% due to order backlogs being worked through, and the number of new patients served now exceeds pre-pandemic levels. But we don’t expect that to last. ResMed’s stupendous growth has seen an exaggerated shift in market shares due to a recall by competitor Philips. That shift will eventually flow back the other way. ResMed should hang onto some of the market share it has gained over the past few…

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. QI have just turned 58 and my husband is 59. We have two dependent sons and are both working, with $200,000 remaining on our mortgage. I work four days a week and, as I am the primary earner, we are not in a financial position for me to stop work so I can access my superannuation. Three years ago, I was diagnosed with stage four breast cancer. I…

The kind of car you drive has a big impact on the environment. But while it can reduce your carbon footprint, not everyone can afford to switch to a hybrid or electric model. Here are some simple ways to reduce your vehicle’s impact on the environment while saving a few dollars on fuel. Keep an eye on tyre pressure Tyres that have the correct pressure tend to last longer and roll more efficiently (which avoids burning unnecessary fuel), so it’s good to get into the habit of checking them at least once a month. Get comfortable with using the air compressor at your local petrol station (the gauge on the filler will tell you when to stop). If you’re not sure of the ideal range for your tyres, check your…

What is it? The annual fundraising campaign is run by the Salvation Army to help people in severe financial crisis. Its longestablished doorknock appeal took place on May 20 and 21 but donations can still be made online. Where your money goes? Last year, the organisation provided more than 1.52 million meals to the homeless; supported more than 10,000 women and children who were victims of domestic violence; and gave more than $32 million to families in need of financial assistance. The campaign runs through April, May and June each year. How to donate: Visit salvationarmy.org.au or become part of its digital doorknock appeal. WEBFIND ATO.GOV.AU When was the last time you visited the tax office website? If it’s been a while, you’ll find some nifty information there that will…

THE SWEET SPOT If you worry that your superannuation savings are inadequate, you’re not alone. Around 65% of Australians retire with less than $250,000 in superannuation. If you’re one of them, however, you could be pleasantly surprised and find you are in a better position than you thought. You could even have a healthier retirement income than people who have a lot more super. There are good reasons to feel more confident about your retirement because your modest savings could be close to what’s called “the sweet spot.” This is where singles with $280,000 and couples with $419,000 in superannuation and other assets could be in better shape than people who have diligently saved hundreds of thousands of dollars more. In fact, a home-owning single with $280,000 in super and…

They’re tech savvy, eco-conscious and, according to the Australian Securities Exchange 2020 investor study, the fastest growing group of investors in the country. Meet the zoomers members of generation Z, loosely defined as young adults under-25 or people born in the late 1990s and early 2000s. They’re also the generation embracing financial independence and shaking up the world of investing. Gen Z has the weight of numbers. According to the advisory firm McCrindle Research, the zoomers are the largest generation yet, accounting for one in five Australians and almost 30% of the world’s population. They’re also on the cusp of the largest intergenerational wealth transfer in history. Research by Griffith University and McCrindle, cited in a 2021 Australian government paper, estimated that the baby boomers would transfer $3.5 trillion in…

FAMILY MONEY When you want a baby badly but can’t conceive, what are your choices? The options include adoption in Australia or from overseas, or finding someone to have your child through a surrogacy arrangement. All these paths can be complex and an emotional roller-coaster. They can take several years from starting the application process to receiving a baby or child. Eligibility is stringent and there are complicated legal issues. Costs can vary widely, too. Intended parents all have different experiences. For Owen Craven who, with his partner Sean Gallagher, successfully navigated all the hurdles and costs of surrogacy, having his wonderful daughter, Indigo, is definitely worth it. Owen says it took three years of planning, saving and co-ordinating, from deciding to embark on the surrogacy to Indigo’s birth. “And…

REAL ESTATE The tourism industry was hit hard by Covid-19 lockdowns but is now recovering strongly. In particular, spending on domestic tourism is above pre-pandemic levels. And international tourism is also starting to bounce back. This is good news for investors in the tourism accommodation sector. In the three months to December 2022, spending by domestic overnight tourists increased by 34%, to $27.5 billion, compared with the same period in 2019, according to Tourism Research Australia. Of this, $7.7 billion was spent on accommodation, up 49% from the 2019 December quarter. International tourism is taking longer to recover, with total spending in the December 2022 quarter of $12.7 billion, 41% of the amount spent in the December 2019 quarter. But it’s now gathering pace and Tourism Research Australia predicts spending…

WHAT IF? BIG DEALS ON THE CARDS Takeover activity has been running apace. Last year there were 41 transactions valued at more than $50 million, with total transactions worth more than $45 billion, according to law firm Gilbert and Tobin. That was only a third of the unprecedented $130.6 billion of deals announced in 2021, but similar to prepandemic levels. Despite some predictions that the rising cost of debt would put a dampener on takeover activity, 2023 is also shaping up to be another strong year. The mega deals proposed include Brookfield’s $18.7 billion acquisition of Origin Energy and the revised $19.5 billion bid for Newcrest Gold by Newmont, which received Newcrest board backing in early May. IMPLICATIONS FOR INVESTORS It’s no secret that takeovers can boost returns for share…

SUPER The family home has long been regarded as the cornerstone of wealth creation in Australia. Not only does home ownership give you permanent shelter, it also gives you a valuable asset that will appreciate over time and the ability to live comfortably later in life. That’s why financial planners waste no time in urging clients to own their own home and ensure that it’s paid off before retirement. Favourable government treatment of the home provides retirees with financial benefits that are not available to renters. “Retirees who own their own home outright have the biggest advantage because they’ve got permanent housing, and the equity in their home can provide an additional source of retirement income,” says Ian Henschke, chief advocate for National Seniors Australia. One way to give your…

Global X Battery Tech & Lithium ETF (ASX: ACDC) Seeks to provide investment results that correspond generally to the price and yield performance (before fees and expenses) of the Solactive Battery Value-Chain Index. ACDC invests in companies throughout the lithium cycle, including mining, refinement and battery production. Betashares Nasdaq 100 ETF (ASX: NDQ) Aims to track the performance of the Nasdaq-100 Index (before fees and expenses). The Nasdaq-100 comprises 100 of the largest non-financial companies listed on the Nasdaq market, and includes many companies that are at the forefront of the new economy. Global X India Nifty 50 ETF (ASX: NDIA) Seeks to provide investment results that correspond generally to the price and yield performance (before fees and expenses) of the NSE Nifty 50 Index. NDIA offers access to 50…

BEST IN BREED SECTOR FINANCIALS Money is the language of business. Okay, well, accounting is technically the language of business, but money is its alphabet. And, so, it should stand to reason that if your business is money itself, you’re in a pretty good industry. On balance, I think that’s right. Banks, insurance companies, fund managers . . . at heart they have money as their inventory; it’s literally their stock in trade. And how can you do badly, in that environment? Of course, there are a litany of examples of precisely that - US bank failures are the most recent, but Magellan’s woes over the past few years and the high-profile failure of HIH Insurance here in Australia in 2001 bear testimony to the challenges. But also, as recently as…

What’s it like to win Olympic gold? It was, not surprisingly, an amazing experience, particularly given that it happened at a home Games. We came to the Games as world champions knowing that if we performed well we would have a strong chance of competing for a medal, so we were very focused on executing well and not making any big mistakes. It was very exciting to win and a strange feeling to cross the final finish line - we had spent a decade planning up to that moment, but not a thought to what happened afterwards. Did it change your life/ alter your lifestyle in any way? It did in many ways. Being an Olympian is a powerful calling card and has provided me with many opportunities in both…